Financial Performance - The Group's turnover for the Industrial Products Trading and Distribution Division in 2022 was HK$2.4 billion, representing a decrease of approximately 21% compared to 2021[22] - The Division's operating profit was HK$207.3 million, reflecting an increase of approximately 8% compared to the previous year[22] - The profit attributable to owners of the Company for 2021 was HK$54.3 million[21] - Earnings per share for the year was HK$9.83, reflecting a decrease of 0.4% compared to the previous year[32] - The Group's consolidated net borrowings were HK$175.3 million, and total equity was HK$1,853.1 million, resulting in a net gearing ratio of 9.5%[23] - The Company paid an interim dividend of HK$0.015 for the six months ended 30 June 2022, down from HK$0.02 in 2021[135] - The Board of Directors recommends a final dividend of HK$0.035 per share for the year ended 31 December 2022, an increase from HK$0.03 in 2021[136] - The Company's distributable reserves as of the balance sheet date amounted to HK$155,740,000, significantly up from HK$77,283,000 in 2021[158] Business Challenges - The decline in turnover was attributed to component shortages, higher prices, and logistical bottlenecks affecting customer manufacturing capabilities[22] - The Directors do not expect an increase in demand for industrial products in the early part of the year due to ongoing economic pressures[10] - The Group continues to implement cost control measures in response to the expected difficult business environment[10] Environmental and Social Responsibility - The Group has been recognized for its environmentally friendly practices and has received awards for its commitment to social responsibility[9] - The Group has established a green council to lead various environmental protection activities and programs[25] - The Group has implemented an ISO14001 certified environmental management system since 2002, focusing on sustainable development and energy consumption[23] - Corporate social responsibility is a core management philosophy, with donations made to various charities and scholarships provided to eligible students[25] - The Group made charitable donations amounting to approximately HK$787,000 during the year[143] Strategic Initiatives and Growth - The Group is set to fully develop production facilities in Querétaro, Mexico, which were delayed due to the pandemic, to better serve global customers, particularly in North and South America[29] - The Group anticipates growth in its raw product manufacturing business to begin in the second half of the current year, as economic recovery remains in an early and weak stage[29] - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[60] - User data showed a 25% increase in active users, reaching 5 million by the end of the quarter[60] - The company provided guidance for the next quarter, projecting revenue between $300 million and $350 million, which indicates a growth rate of approximately 10%[60] - New product launches included a state-of-the-art electronic device, expected to generate $50 million in sales within the first six months[60] - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by the end of the next fiscal year[60] - Research and development investments increased by 30%, totaling $100 million, focusing on innovative technologies in the electronics sector[60] - The company completed a strategic acquisition of a competitor for $200 million, enhancing its product portfolio and market reach[60] - A new marketing strategy was implemented, aiming to increase brand awareness by 40% over the next year[60] - The company reported a net profit margin of 12%, up from 10% in the previous year, reflecting improved operational efficiency[60] - The board of directors emphasized a commitment to sustainability, with plans to reduce carbon emissions by 25% over the next five years[60] Management and Governance - 徐应春 appointed as CEO of the company since March 1, 2015, with extensive experience in administration and management[68] - Kwong Man Hang has been a director since February 1996 and has significant experience in the computer and electronics industry[69] - Wong, Vinci has been the director and general manager of 3 Kings Medical since December 1, 2010, focusing on healthcare and Chinese medicine[70] - Zhang Rui Shen has been with the group since 2004, responsible for sales direction and market strategy[73] - Hamed Hassan El-Abd has been with the group since 1992 and is currently the chairman of the product development committee[74] - Dr. Leung Kam Fong has been a Non-Executive Director since January 2013 and is a member of the Audit, Remuneration, and Nomination Committees[77] - Dr. Yip Wai Chun is a renowned leader in Men's Health and has contributed significantly to medical services in Hong Kong[79] - The board includes a diverse range of expertise from various sectors, enhancing the company's strategic direction[76] Share Options and Ownership - The New Scheme allows for the issuance of 75,223,596 shares, representing not more than 10% of the total shares in issue as of December 31, 2022[177] - Each participant in the New Scheme can be granted options not exceeding 1% of the shares in issue within any 12-month period, subject to shareholder approval for larger grants[178] - The exercise price for options must be at least the highest of the closing price on the date of grant, the average closing price for the five business days prior, or the nominal value of a share[182] - The New Scheme will expire at the close of business on June 21, 2026[178] - The fair value of the options granted under the New Scheme is approximately HK$7,379,000, with a grant date fair value per share of HK$0.10[181][182] - The expected life of the options is 6 years, with an expected volatility of 31.93% and a dividend yield of 7.39%[182] - The vesting period for options is set at 25% on the first anniversary and the remainder on the second anniversary of the grant date[178] - The amount payable upon acceptance of the option is HK$10.00, to be paid within 21 days from the offer date[178] - The Company has confirmed the independence of all independent non-executive directors as required by the Listing Rules[190] - Senta Wong holds a total of 334,562,723 shares, representing 45.84% of the issued share capital[192] - The company has 207,800,000 shares registered under Rewarding Limited, which is wholly owned by a discretionary trust[194] - Vinci Wong is deemed to be interested in 32,454,028 shares, which he holds through Max Return Group Limited[194] - The new Share Option Scheme was adopted on June 22, 2016, to incentivize eligible participants and retain talent for long-term growth[197] - As of December 31, 2022, none of the directors or their associates had any interests or short positions in the company's shares[195] - The total interests of the directors as a percentage of the issued share capital range from 0.02% to 46.52%[192] - The company’s share capital includes significant holdings by family members and trusts, indicating a concentrated ownership structure[194] - The share option scheme aims to enhance performance and efficiency for the benefit of the group[197] - The company has a total of 240,254,028 shares attributed to Vinci Wong and Victor Jui Shum Chang combined[192] - The interests of Senta Wong include both personal and corporate holdings, reflecting a complex ownership arrangement[192] - The total outstanding share options for directors as of December 31, 2022, is 38,000,000[199] - Each director was granted share options at an exercise price of HK$0.906 on June 14, 2019[199] - The exercisable period for the share options is from June 14, 2020, to June 13, 2029[199] - No share options were exercised or cancelled during the period for the directors[199] - The balance of share options for each director remains unchanged at 3,000,000 or 5,000,000 as of December 31, 2022[199] - The share options scheme is part of the company's strategy to incentivize directors[199] - The company has not transferred any share options to or from other categories during the period[199] - The share options are intended to align the interests of directors with those of shareholders[199] - The company continues to maintain a robust share option scheme to attract and retain talent[199] - The details of the share options are disclosed in Note 30 of the consolidated financial statements[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） 截至二零二二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」）截至二零二二年十二月三十一日止年度之經審核綜合業績連同二零 二一年同期之比較數字如下： 合併利潤表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 港幣千元 港幣千元 收益 2 4,609,007 5,411,914 其他收益，淨額 27,095 43,691 原材料及已動用消耗品 (2,071,050) (2,262,413) 購買製成品 (1,583,667) (2,065,457) 製成品及在製品存貨之變動 118,479 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 2,415,577, a decrease of 11.4% compared to HKD 2,726,355 for the same period in 2021[2]. - Profit attributable to equity holders of the company was HKD 44,454, down 20.5% from HKD 55,943 in the same period last year[2]. - Basic earnings per share decreased to HKD 6.09, down from HKD 7.67, representing a decline of 20.5%[2]. - The net profit for the same period was 55,550 million, reflecting a decline of 3.1% year-over-year[19]. - The group reported a profit of HKD 66,207 for the period, compared to HKD 64,920 in the previous year, reflecting a slight increase of 1.98%[74]. - The group’s profit before tax was HKD 99,135, with income tax expenses of HKD 32,928, resulting in a net profit after tax of HKD 66,207[71]. - The profit attributable to shareholders for the first half of 2022 was HKD 44.5 million, a decrease of approximately 21% year-on-year[179]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to HKD 4,096,637, an increase from HKD 3,745,760 at the end of 2021[11]. - Current liabilities totaled HKD 2,226,117, up from HKD 1,852,971, reflecting an increase of 20.1%[16]. - The group’s total assets as of June 30, 2022, amounted to HKD 4,096,637, with liabilities totaling HKD 2,254,274, resulting in a net asset position[79][80]. - The company’s long-term deposits increased by HKD 715, compared to a decrease of HKD 514 in the previous year[26]. Cash Flow - Operating cash flow for the six months ended June 30, 2022, was a net outflow of HKD 137,530, compared to a net inflow of HKD 87,005 for the same period in 2021[26]. - Cash flow from investing activities showed a net outflow of HKD 81,840, significantly higher than the outflow of HKD 593 in the previous year[26]. - Cash flow from financing activities resulted in a net inflow of HKD 360,885, compared to HKD 100,635 in the prior year[29]. - The company reported a decrease in cash generated from operations after tax payments, with a cash outflow of HKD 120,176 compared to HKD 114,320 in the previous year[26]. Revenue Breakdown - The trading segment generated external sales of HKD 1,313,337, while the manufacturing segment generated external sales of HKD 1,078,301, indicating a shift in revenue distribution[71]. - Sales of goods accounted for HKD 2,388,345, down from HKD 2,697,942, representing a decline of 11.5% year-over-year[94]. - The industrial products trading and distribution segment's revenue decreased by approximately 14% due to parts shortages and logistics bottlenecks[180]. - The original product manufacturing segment's revenue decreased by approximately 7% to HKD 1.1 billion, with an operating loss of HKD 28 million[183]. Investments and Expenditures - The company is investing 12,754 million in research and development to enhance product offerings and improve operational efficiency[19]. - Capital expenditures for the six months ended June 30, 2022, totaled HKD 11,012, compared to HKD 9,023 in the same period of 2021, indicating an increase of 22.1%[87]. - The group acquired property, plant, and equipment amounting to HKD 11,012,000 during the six months ended June 30, 2022, compared to HKD 9,023,000 in the same period of 2021, representing a 22.1% increase[118]. Market Strategy - The company has plans to expand its market presence in Southeast Asia, targeting a 15% increase in market share by the end of 2023[20]. - New product launches are expected to contribute an additional 10% to revenue in the next fiscal year, with a focus on innovative technology solutions[20]. - A strategic acquisition is in progress, which is projected to add 5% to the company’s overall revenue in the upcoming year[20]. Shareholder Information - The interim dividend declared was HKD 0.015 per share, totaling HKD 10,948,000, a decrease of 25.0% from HKD 14,589,000 in the same period of 2021[135]. - The board declared an interim dividend of HKD 0.015 per share for the six months ended June 30, 2022, down from HKD 0.02 per share in the previous year[177]. Employee and Operational Insights - As of June 30, 2022, the group employed 4,379 staff, with the majority based in China[185]. - The company expects overall financial performance to remain weak in the second half of 2022 due to ongoing global supply chain disruptions and geopolitical tensions[188]. Financial Instruments and Risk Management - The group maintained its risk management policies without any changes since December 31, 2021, ensuring stability in financial operations[50]. - No transfers occurred between Level 1, Level 2, and Level 3 financial instruments during the reporting period, indicating consistency in valuation methods[55]. - The group’s forward foreign currency contracts were all classified under Level 2 for fair value estimation, indicating reliance on observable market data[60].

Financial Performance - The Group's turnover for 2021 was HK$5.4 billion, reflecting an increase of approximately 15% compared to last year[11]. - Profit attributable to shareholders was HK$72 million, representing a decrease of 28.8% compared to last year[11]. - The Industrial Products Trading and Distribution Division achieved record sales of HK$3.1 billion, an increase of approximately 40% compared to last year[13]. - The Division's operating profit for 2021 was HK$191.1 million, representing an increase of 50% compared to last year[13]. - The OEM Manufacturing Division's turnover decreased by approximately 8% to HK$2.3 billion for 2021[15]. - The Division's operating loss was HK$54.3 million for 2021, compared to an operating profit of HK$20.2 million last year[15]. - The company's turnover for the year ended 31 December 2021 was HK$5,411,914, representing an increase from HK$4,716,172 in 2020, which is a growth of approximately 14.7%[50]. - Profit attributable to owners of the company for 2021 was HK$72,013, a decrease from HK$101,185 in 2020, reflecting a decline of about 29%[50]. - Total assets as of 31 December 2021 amounted to HK$3,745,760, up from HK$3,285,131 in 2020, indicating an increase of approximately 14%[50]. - Total liabilities for the year ended 31 December 2021 were HK$1,889,900, compared to HK$1,488,813 in 2020, which is an increase of around 27%[50]. - Equity attributable to owners of the company as of 31 December 2021 was HK$1,759,870, an increase from HK$1,711,498 in 2020, showing a growth of about 2.8%[50]. - Operating profit margin declined from 3.0% to 2.4%[43]. - Net profit margin decreased from 2.5% to 1.8%[43]. - Return on equity fell from 6.5% to 5.2%[43]. - Earnings per share dropped by 28.8% from 13.87 to 9.87 Hong Kong cents[43]. - Current ratio decreased from 1.9 to 1.7 times[43]. - Borrowings to total equity increased from 22.6% to 33.1%[46]. - The Group anticipates a worsening overall financial performance in the current year due to ongoing challenges[37]. - Demand for industrial products is expected to decrease, impacting the Trading and Distribution Division[34]. - The Group's operations are significantly affected by global supply chain disruptions and logistical bottlenecks[37]. Employee and Management - As of December 31, 2021, the Group had a total of 4,513 employees, with 224 based in Hong Kong and 3,873 in the PRC[21]. - The remuneration packages of the Group's employees are regularly reviewed and may include share options and discretionary bonuses based on performance[21]. - Employee benefit expenses to revenue decreased from 13.3% to 12.9%[43]. - The management team has extensive experience in the electronics and manufacturing industries, which supports the company's strategic initiatives and operational efficiency[58]. - The leadership team includes individuals with extensive experience in both local and international markets, which may facilitate strategic partnerships and growth opportunities[62][64]. - Dr. Leung Kam Fong, who has extensive experience in healthcare and Chinese medicine, joined the Group in 2007 and has been pivotal in developing modern Chinese Medicine Specialist Clinics[70]. - The company has seen significant leadership changes, with several directors having extensive backgrounds in various industries, enhancing strategic direction and governance[68][72]. - Ms. Lau has 30 years of experience in human resources and administration, currently serving as the General Manager of Human Resources & Administration Department[84]. - Mr. Wong has been with the Group since 1980 and is currently the executive director of WKK Technology Limited, focusing on marketing OEM services[88]. - Mr. Tang has over 20 years of manufacturing experience in the computer and consumer electronics industries, currently serving as General Manager of Manufacturing Operations in PRC Plant[89]. - Mr. Wong has over 30 years of manufacturing experience in material management and holds a Bachelor of Science in Computer Information System and an EMBA[90]. - The Group's subsidiaries are listed in multiple regions, including Taiwan, which may provide opportunities for cross-border business growth[64]. Strategic Initiatives - The company has been focusing on expanding its market presence and enhancing its product offerings, particularly in the healthcare and Chinese medicine sectors through its subsidiary 3 Kings Medical[59]. - The company is exploring new technologies and product developments to drive future growth and maintain competitive advantage in the market[59]. - The financial performance indicates a need for strategic adjustments to improve profitability while continuing to invest in growth opportunities[50]. - The company remains committed to enhancing shareholder value through prudent financial management and strategic investments in key growth areas[50]. - The company is actively involved in the marketing and sales strategy formulation through its subsidiaries, aiming for business expansion in the healthcare sector[62][64]. - The Group's focus on modernizing Chinese medicine practices aligns with current healthcare trends, potentially increasing market share in this sector[70]. - The company emphasizes the importance of marketing management and cultural business, as demonstrated by the involvement of independent directors with strong backgrounds in these areas[68]. Corporate Governance - The company is committed to maintaining high standards of corporate governance practices[195]. - The Company has maintained directors' liability insurance throughout the financial year to provide appropriate coverage for its Directors and subsidiaries[199]. - The Company has complied with the public float requirements of the Listing Rules for the financial year ending December 31, 2021[199]. - The Company considers all Independent Non-Executive Directors to be independent as per the annual confirmation received[147]. - There are no service contracts with the Group that require compensation upon termination within one year for the Directors standing for re-election at the upcoming annual general meeting[200]. Shareholder Information - The Company reported an interim dividend of HK$0.02 for the six months ended 30 June 2021, compared to nil in 2020[130]. - A final dividend of HK$0.03 per share is proposed for the year ended 31 December 2021, down from HK$0.06 in 2020[132]. - The Company's distributable reserves as of the balance sheet date amounted to HK$77,283,000, down from HK$109,815,000 in 2020[138]. - 36% of turnover and 37% of purchases during the year were attributable to the Group's five largest customers and suppliers respectively[138]. - The total interests of directors and their associates in the company’s shares and debentures were disclosed as of December 31, 2021, with no additional interests reported[159]. - The company aims to motivate eligible participants through the New Scheme to enhance performance and efficiency for long-term growth[161]. - The company has a history of share option schemes, with the previous scheme expiring in 2015 and the new scheme adopted in 2016[160]. - The new share option scheme allows a maximum of 1% of shares in issue to be granted to each participant in any 12-month period unless approved by shareholders[167]. - The exercise price for options must be at least the highest of the closing price on the date of grant, the average closing price for the five business days prior, or the nominal value of a share[167]. - The new scheme will expire at the close of business on June 21, 2026[170].

Financial Performance - The company reported a revenue of HKD 2,726,355, representing a 33.9% increase from HKD 2,037,728 in the same period last year[5]. - The operating profit for the period was HKD 91,001, a significant increase from HKD 2,334 in the previous year[5]. - The net profit attributable to equity holders was HKD 64,920, compared to a loss of HKD 9,764 in the same period last year[5]. - The total comprehensive income for the period was HKD 88,222, recovering from a loss of HKD 17,208 in the previous year[8]. - Total revenue for the six months ended June 30, 2021, was HKD 2,726,355,000, an increase from HKD 2,037,728,000 in the same period of 2020, representing a growth of approximately 34%[72]. - The group reported a profit of HKD 64,920,000 for the period, compared to a loss of HKD 9,764,000 in the previous year, marking a significant turnaround[76]. - The attributable profit to shareholders for the first half of 2021 was HKD 55.9 million, a significant recovery from a loss of HKD 16.4 million in the same period last year[173]. Assets and Liabilities - The company's total assets increased to HKD 3,580,234 from HKD 3,285,131 as of December 31, 2020[13]. - Current liabilities rose to HKD 1,727,562 from HKD 1,463,592 as of December 31, 2020[18]. - The company’s equity attributable to equity holders increased to HKD 1,747,702 from HKD 1,711,498 as of December 31, 2020[18]. - The group's assets as of June 30, 2021, totaled HKD 3,580,234,000, an increase from HKD 3,285,131,000 at the end of 2020[81]. Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2021, was HKD 87,005,000, a decrease from HKD 204,616,000 in the same period of 2020, reflecting a decline of about 57.5%[29]. - Cash and cash equivalents increased to HKD 778,716,000 from HKD 519,901,000 year-over-year, representing a growth of 49.8%[32]. - Net cash generated from financing activities was HKD 100,635,000, a significant improvement compared to a net cash used of HKD 113,792,000 in the previous period[32]. - The company reported a net increase in cash and cash equivalents of HKD 187,047,000 for the six months ended June 30, 2021, compared to HKD 75,054,000 in the same period last year[32]. - New bank borrowings amounted to HKD 1,293,802,000, up from HKD 1,086,556,000 in the previous year, indicating a 19.1% increase[32]. - Interest paid decreased to HKD 2,191,000 from HKD 5,956,000, reflecting a reduction of 63.2%[32]. - The company’s cash flow from financing activities included repayment of bank loans totaling HKD 1,181,377,000, slightly down from HKD 1,184,845,000 in the previous year[32]. Operational Highlights - The company recorded other comprehensive income of HKD 19,844, recovering from a loss of HKD 820 in the previous year[8]. - The company reported a significant increase in user engagement, with a total of 1,620,000 active users as of June 30, 2021, compared to 1,610,000 in the previous year, indicating a growth of approximately 0.6%[21]. - The company plans to expand its market presence by launching new products and enhancing its technology offerings in the upcoming quarters[21]. - The company is focusing on strategic acquisitions to enhance its competitive position in the market[21]. - The company anticipates a positive outlook for the second half of 2021, driven by anticipated growth in user base and revenue streams[21]. Investments and Expenditures - The company has allocated HKD 9,023,000 for the purchase of property, plant, and equipment during the first half of 2021, compared to HKD 10,483,000 in the same period of 2020[29]. - The company acquired property, plant, and equipment worth HKD 9,023,000 during the period, down from HKD 10,483,000 in the previous year[108]. - Capital expenditures for the trading and manufacturing segments were HKD 5,429,000 and HKD 1,696,000, respectively, totaling HKD 9,023,000 for the period[84]. Shareholder Information - The company declared an interim dividend of HKD 0.02 per share, totaling approximately HKD 14,589,000, compared to no dividend in the previous year[129]. - As of June 30, 2021, the number of unexercised share options granted under the share option scheme was 67,850,000 shares[150]. - The exercise price for the share options is set at HKD 0.906, which is based on the highest of three valuation methods[146]. Market and Economic Conditions - The outlook for the second half of 2021 remains uncertain due to the ongoing global pandemic and parts shortages affecting manufacturing progress[181]. - The industrial products trading and distribution department is facing delays in supplier deliveries, which may hinder sales in the second half of 2021[181].

Financial Performance - The Group's turnover for 2020 was HK$4.7 billion, reflecting a decrease of approximately 10% compared to 2019[9]. - Profit attributable to shareholders for 2020 was HK$101.2 million, an increase from HK$64.4 million in 2019[9]. - The Industrial Products Trading and Distribution Division's turnover was HK$2.2 billion, representing an increase of approximately 14% compared to last year[12]. - The OEM Manufacturing Division's turnover decreased by approximately 25% to HK$2.5 billion for 2020[15]. - Turnover for the year ended 31 December 2020 was HK$4,716,172, a decrease from HK$5,258,296 in 2019, representing a decline of approximately 10.3%[47]. - Profit attributable to owners of the Company for 2020 was HK$101,185, an increase of 57.2% compared to HK$64,383 in 2019[47]. - Total assets as of 31 December 2020 amounted to HK$3,285,131, down from HK$3,374,282 in 2019, reflecting a decrease of about 2.6%[47]. - Total liabilities decreased to HK$1,488,813 in 2020 from HK$1,709,645 in 2019, a reduction of about 13.0%[47]. - The Company’s financial performance indicates resilience despite the challenges faced in 2020, with a significant recovery in profit margins[47]. Profitability Metrics - Operating profit margin increased to 3.0% in 2020 from 2.3% in 2019, a change of +0.7 percentage points[41]. - Net profit margin improved to 2.5% in 2020, up from 1.3% in 2019, representing a +1.2 percentage point increase[41]. - Return on equity rose to 6.5% in 2020, an increase of +2.4 percentage points compared to 4.1% in 2019[41]. - Earnings per share increased by 57.1% to 13.87 Hong Kong cents in 2020, up from 8.83 Hong Kong cents in 2019[44]. Cash and Equity Position - The Group's consolidated net cash as of December 31, 2020, amounted to HK$232 million, with total equity of HK$1,796 million, resulting in a nil gearing ratio[16]. - Net debts to total equity ratio was 2% in 2020, down from 12.2% in 2019[44]. - Borrowings to total equity ratio decreased to 3% in 2020 from 22.6% in 2019, a reduction of -19.0 percentage points[44]. - Current ratio improved to 1.9 times in 2020, up from 1.7 times in 2019, an increase of +0.2[44]. - Equity attributable to owners of the Company increased to HK$1,711,498 in 2020 from HK$1,594,211 in 2019, marking an increase of approximately 7.4%[47]. Future Outlook - The Group expects a slowdown in demand for industrial products in the current year following unexpectedly high demand in the second half of 2020[35]. - The Group's OEM Manufacturing Division is anticipated to perform better than last year, given the current level of orders on hand[36]. Corporate Governance and Management - Vinci Wong has been the director and general manager of 3 Kings Medical since December 1, 2010, focusing on healthcare and Chinese medicine[56]. - Victor Chang has been with the Group since 2004 and is responsible for sales and marketing strategy at WKK Distribution Limited[59]. - Hamed Hassan El-Abd has been a director since May 2001 and is currently the Chairman of the Product Development Committee at WKK Distribution Limited[62]. - Andrew Hsu has over 35 years of experience in high technology equipment trading and has been a director since January 2009[63]. - Philip Tse has been a director since March 1990 and is the Chairman of both the Audit Committee and the Remuneration Committee[67]. - The leadership team includes family connections, with Vinci Wong being the son of Executive Director Senta Wong and brother-in-law to Victor Chang[56][59]. Shareholder Information - The Board of Directors recommends a final dividend of HK$0.06 per share for the year ended 31 December 2020, compared to no dividend in 2019[124]. - The Group's reserves available for distribution to shareholders amounted to HK$109,815,000 as of the balance sheet date, an increase from HK$97,867,000 in 2019[130]. - 40% of the company's turnover and 33% of purchases were attributed to its five largest customers and suppliers, respectively[139]. - The largest customer and supplier accounted for 15% and 10% of turnover and purchases, respectively[139]. Environmental and Social Responsibility - The Group is committed to sustainable development and has established a green council for environmental protection activities[21]. - The Group's environmental policies and compliance with relevant laws are discussed in the Environmental, Social and Governance Report[121]. - The group made charitable donations totaling approximately HK$1,351,000 during the year[138]. Share Option Scheme - The new Share Option Scheme was adopted on June 22, 2016, to motivate eligible participants and retain talent for long-term growth[169]. - The maximum number of shares issuable under the options to each participant in any 12-month period must not exceed 1% of the shares in issue unless approved by shareholders[175]. - The New Scheme aims to incentivize eligible participants to enhance performance and efficiency for the benefit of the group[173]. - As of December 31, 2020, the total outstanding share options amounted to 68,700,000, after accounting for 1,450,000 options that were cancelled or lapsed during the year[181].

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 2,037,728, a decrease of 19% compared to HKD 2,513,867 for the same period in 2019[4] - The operating profit for the period was HKD 2,334, significantly down from HKD 55,735 in the previous year[4] - The net loss attributable to equity holders for the period was HKD 9,764, compared to a profit of HKD 27,529 in the same period last year[4] - Total comprehensive loss for the period was HKD 17,208, compared to a total comprehensive income of HKD 21,823 in the previous year[7] - The basic and diluted loss per share for the period was HKD (2.25), compared to earnings per share of HKD 3.18 in the previous year[4] - The group reported a loss attributable to shareholders of HKD 16.4 million for the first half of 2020, compared to a profit of HKD 23.2 million in the same period last year[127] - The manufacturing segment reported a loss of HKD 16,740, while the trading segment generated a profit of HKD 27,539 for the six months ended June 30, 2020[70] - The group reported a loss before tax of HKD (2,362) for the six months ended June 30, 2020[70] Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2020, was HKD 204,616,000, compared to HKD 109,851,000 for the same period in 2019, representing an increase of approximately 86%[27] - The total cash and cash equivalents at the end of the period were HKD 519,901,000, up from HKD 270,905,000 at the end of June 30, 2019, marking a growth of approximately 92%[27] - The company reported a net increase in cash and cash equivalents of HKD 75,054,000 for the six months ended June 30, 2020, compared to HKD 23,248,000 in the same period last year, indicating improved liquidity[27] Assets and Liabilities - Current assets decreased to HKD 2,558,374 from HKD 2,779,389 as of December 31, 2019[11] - Total assets decreased to HKD 3,126,022 from HKD 3,374,282 as of December 31, 2019[11] - Total liabilities decreased to HKD 1,481,417 from HKD 1,709,645 as of December 31, 2019[14] - The company’s equity attributable to owners decreased to HKD 1,572,263 from HKD 1,594,211 as of December 31, 2019[14] - Trade receivables, notes receivable, and other receivables amounted to HKD 1,118,411,000 as of June 30, 2020, down from HKD 1,329,897,000 as of December 31, 2019, representing a decrease of approximately 15.8%[91] - Trade payables, notes payable, and other payables totaled HKD 557,187,000 as of June 30, 2020, down from HKD 699,016,000 as of December 31, 2019, indicating a decrease of approximately 20.3%[94] - The company had bank borrowings of HKD 559,323,000 as of June 30, 2020, down from HKD 798,042,000 as of June 30, 2019, reflecting a reduction of about 30%[109] Market Conditions and Strategic Focus - The COVID-19 pandemic significantly impacted the group's business, leading to a decrease in product demand and resulting in a loss of profitability during the interim period[34] - The financial position and performance of the group were adversely affected, with a noted reduction in revenue compared to the previous period[34] - The group has not maintained profitability during this interim period due to the ongoing challenges posed by the pandemic[34] - The outlook for the second half of 2020 is expected to be weaker than the first half due to the ongoing global pandemic and economic downturn[135] - The group has implemented cost control measures in response to the challenging trading environment[130] - The company’s strategic focus appears to be on enhancing its operational efficiency and expanding its market presence in the electronics sector[30] Compliance and Governance - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2020, which may influence future financial reporting[38] - There have been no significant changes in risk management policies since December 31, 2019, indicating a stable approach to financial risk management[47] - The management's estimates and judgments in preparing the financial data remain consistent with those applied in the previous year's financial statements[43] - The group’s financial risk factors include market risk, credit risk, and liquidity risk, which are essential for assessing overall financial health[46] - The company has complied with the corporate governance code, with deviations noted regarding the appointment terms of non-executive directors[172] - All directors confirmed compliance with the company's adopted code of conduct for securities trading during the reporting period[178] - The audit committee reviewed the accounting principles and practices adopted by the group, discussing matters related to auditing, risk management, and internal control systems[179] Share Capital and Options - The company’s share capital as of June 30, 2020, was HKD 72,945,000, with 729,447,964 ordinary shares issued and fully paid[96] - The total number of share options granted but not exercised as of June 30, 2020, was 70,150,000 shares, with 17,537,500 shares being exercisable[100] - The fair value of the share options granted was approximately HKD 7,379,000, with HKD 2,163,000 recognized in the profit and loss for the six months ended June 30, 2020[105] - No stock options were granted under the stock option plan during the six months ended June 30, 2020[158] - The stock option plan was adopted on June 22, 2016, with no options granted in the reporting period[158]

Financial Performance - The Group's turnover for 2019 was HK$5.3 billion, reflecting a slight decrease of less than 1% compared to 2018[10]. - Profit attributable to shareholders for 2019 was HK$64.4 million, down from HK$82 million in 2018[10]. - The turnover of the Industrial Products Trading and Distribution Division was HK$1.9 billion, a decrease of approximately 11% compared to last year[12]. - Operating profit for the Industrial Products Trading and Distribution Division was HK$32.4 million, representing a reduction of approximately 69% compared to last year[12]. - The OEM Manufacturing Division's turnover increased by approximately 7% to HK$3.3 billion compared to last year[14]. - Operating profits for the OEM Manufacturing Division increased to HK$80 million from HK$31 million for last year[14]. - The trading of printed circuit board related products contributed the largest part of the Industrial Products Division's profit but suffered a reduction of approximately 22% in operating profits[12]. - A subsidiary in Taiwan recorded an increase of approximately 32% in operating profits compared to last year[12]. - Operations in the PRC suffered operating losses due to a significant drop in demand for industrial products as a result of the ongoing US-China trade war[12]. - Earnings per share decreased to 8.83 Hong Kong cents, down 21.4% from 11.23 Hong Kong cents[38]. - Total turnover for the year was HK$5,296 million, slightly up from HK$5,258 million[43]. - Profit attributable to owners of the Company was HK$64,383 thousand, a decrease from HK$82,106 thousand in the previous year[44]. - Total assets amounted to HK$3,374,282 thousand, down from HK$3,535,908 thousand[44]. - Total liabilities decreased to HK$1,709,645 thousand from HK$1,863,743 thousand[44]. - Equity attributable to owners of the Company was HK$1,594,211 thousand, a slight decrease from HK$1,602,277 thousand[44]. Financial Health - As of December 31, 2019, the Group's consolidated net borrowings amounted to HK$203 million, with total equity at HK$1,665 million, resulting in a net gearing ratio of 12.2%[1]. - The Group's net debts to total equity ratio improved to 12.2% in 2019 from 33.3% in 2018, reflecting better financial health[35]. - The Group's borrowings to total equity ratio decreased to 41.6% in 2019 from 52.4% in 2018, indicating a reduction in leverage[35]. - The Group has committed bank and other financing facilities totaling HK$2,473 million, of which HK$799 million was drawn down as of December 31, 2019[1]. Profitability Metrics - Operating profit margin declined to 2.3% in 2019 from 2.6% in 2018, and net profit margin decreased to 1.3% from 1.7%[35]. - Return on equity fell to 4.1% in 2019, down from 5.3% in 2018, indicating a decrease in profitability[35]. - The Group anticipates that both the Industrial Products Trading and Distribution Division and the OEM Manufacturing Division will not remain profitable in the coming year due to a significant drop in demand for industrial products[32]. Market Strategy and Outlook - The company is focusing on expanding its market presence and developing new products[38]. - Future outlook includes potential mergers and acquisitions to enhance growth strategies[38]. - The company is investing in new technologies to improve operational efficiency[38]. - The company is expanding its market presence in the Asia-Pacific region, targeting a growth rate of FF% in that market segment[5]. - Recent acquisitions are anticipated to enhance the company's product offerings and increase market share by GG%[6]. - The company is investing $HH million in research and development to drive innovation in its product line[7]. - The company plans to implement new marketing strategies aimed at increasing customer engagement and retention by JJ%[9]. - Overall, the company remains optimistic about future growth, with a strategic focus on sustainability and digital transformation[10]. Corporate Governance - The company is committed to maintaining high standards of corporate governance practices[191]. - The Company has maintained directors' liability insurance throughout the financial year to provide appropriate coverage for its Directors and subsidiaries[196]. - The consolidated financial statements for the year have been audited by PricewaterhouseCoopers, who are eligible for reappointment at the forthcoming annual general meeting[198]. - The Company aims to comply with all code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules[199]. - Throughout the year ended 31 December 2019, the Company complied with most of the Code Provisions, with certain deviations explained in the report[200]. Shareholder Information - The Group's interim dividend for 2019 was HK$0.01 per share, down from HK$0.015 in 2018[115]. - The Board of Directors does not recommend a final dividend for the year ended December 31, 2019, compared to HK$0.05 per share in 2018[116]. - The Group's reserves available for distribution to shareholders amounted to HK$97,867,000 as of the balance sheet date, down from HK$139,062,000 in 2018[120]. - Charitable donations made by the Group during the year totaled approximately HK$1,578,000[125]. - 47% of turnover and 33% of purchases were attributable to the Group's five largest customers and suppliers, respectively[126]. - The largest customer and supplier accounted for 21% and 9% of turnover and purchases, respectively[126]. Leadership and Management - The Group's executive director, Wong Kwok-Wai, has over 40 years of experience in the semiconductor and OEM production sectors, indicating strong leadership in these areas[85]. - The Group's general manager of manufacturing operations in the PRC, Tang Kang, has over 20 years of experience in manufacturing, which enhances operational efficiency[87]. - The Group's general manager of WKK Electronic Equipment Limited, Lee Wai-Kong, has been responsible for marketing electronic products in Hong Kong and the PRC since 1989, showcasing a long-standing market presence[92]. - The Group's general manager of WKK PCB Trading Limited, Lui Kwok-Chak, has extensive experience in PCB manufacturing, which is crucial for product quality and innovation[93]. - The Group's general manager of Dongguan Nissin Plastic Products Co., Ltd., Hung Tacho, has over 30 years of experience in R&D and manufacturing, which supports product development initiatives[91]. - The Group's leadership team includes members with advanced degrees and professional qualifications, enhancing the company's strategic decision-making capabilities[84]. - The Group's emphasis on human resources and administration is led by Chung Yiu Ming, who has over 30 years of experience, ensuring effective management practices[82]. - The Group's commitment to product development is reflected in its leadership's extensive experience in engineering and manufacturing, which is vital for innovation[90]. - The Group's strategic focus on the semiconductor market is supported by its experienced management team, which is essential for maintaining competitive advantage[86]. Environmental and Social Responsibility - The Group has established a green council to lead and organize various environmental protection activities and programs[1]. - The Group's environmental policies and compliance with relevant laws are discussed in the Chairman's Statement and the Environmental, Social and Governance Report[114].

Financial Performance - For the six months ended June 30, 2019, the company's revenue was HKD 2,513,867, a slight decrease from HKD 2,532,766 in the same period of 2018, representing a decline of approximately 0.74%[12] - The profit attributable to equity holders for the same period was HKD 27,529, down from HKD 35,470 in 2018, indicating a decrease of about 22.4%[12] - Basic and diluted earnings per share for the period were both HKD 3.18, compared to HKD 4.44 in the previous year, reflecting a decline of approximately 28.4%[11] - The total comprehensive income for the period was HKD 21,823, compared to HKD 20,654 in 2018, showing an increase of about 5.7%[15] - The company reported a net profit from joint ventures of HKD 1,018, compared to HKD 512 in the same period of 2018, reflecting a growth of about 98.4%[12] - For the first half of 2019, the group's revenue and profit attributable to shareholders were HKD 2.5 billion and HKD 232 million, representing a decrease of approximately 1% and 29% year-on-year, primarily due to the ongoing US-China trade war[156] Assets and Liabilities - Non-current assets totaled HKD 630,880 as of June 30, 2019, an increase from HKD 594,663 at the end of 2018[19] - Current assets amounted to HKD 2,912,744, slightly down from HKD 2,941,245 at the end of 2018[19] - The total assets of the company were HKD 3,543,624, compared to HKD 3,535,908 at the end of 2018, indicating a marginal increase[19] - As of June 30, 2019, total liabilities amounted to HKD 1,889,932, an increase from HKD 1,863,743 as of December 31, 2018, reflecting a growth of approximately 1.4%[22] - Current liabilities totaled HKD 1,855,003, slightly up from HKD 1,854,372 in the previous period, indicating a marginal increase of 0.03%[22] - The total equity attributable to equity holders was HKD 1,584,749, down from HKD 1,602,277, representing a decrease of about 1.5%[22] - The company reported a total equity of HKD 1,653,692 as of June 30, 2019, compared to HKD 1,672,165 at the end of 2018, marking a decline of approximately 1.1%[22] Cash Flow - For the six months ended June 30, 2019, the net cash generated from operating activities was HKD 109,851,000, compared to a net cash used of HKD (193,205,000) in the same period of 2018[33] - The net cash generated from investing activities was HKD 6,069,000, a decrease from HKD (11,390,000) in the previous year[33] - The net cash used in financing activities was HKD (92,672,000), a significant decline from HKD 200,799,000 in the prior year[33] - The cash and cash equivalents increased by HKD 23,248,000, compared to a decrease of HKD (3,796,000) in the same period last year[33] - As of June 30, 2019, cash and cash equivalents totaled HKD 270,905,000, down from HKD 527,217,000 at the end of the previous year[33] Financial Standards and Compliance - The company did not identify any significant issues in its interim financial data that would suggest non-compliance with the relevant accounting standards[6] - The group adopted the new Hong Kong Financial Reporting Standard 16 on January 1, 2019, which resulted in the recognition of lease liabilities amounting to HKD 53,393,000[46] - The group adopted simplified practical expedients under HKFRS 16, including using a single discount rate for leases with similar characteristics and recognizing short-term leases with a remaining lease term of less than 12 months as short-term leases[60] Shareholder Information - The company reported a total of 207,800,000 shares held by Greatfamily Inc., representing 28.49% of the total issued shares[183] - Senta Wong (BVI) Limited holds 122,012,723 shares, accounting for 16.73% of the total issued shares[183] - The company has a total of 7,577,920 shares held by investors, representing 1.04% of the total issued shares[174] - The company disclosed that 180,000 shares are jointly held by Dr. Liang Jinfang and his spouse[179] - HSBC International Trustee Limited holds 45,689,735 shares, which is 6.26% of the total issued shares[183] Operational Insights - The group anticipates weak demand for industrial products in the second half of the year due to escalating US-China trade tensions[166] - The industrial products trading department's revenue for the first half of 2019 was HKD 900 million, a decrease of about 16% compared to the same period last year[157] - The original products manufacturing department's revenue increased by approximately 12% to HKD 1.6 billion, driven by efforts to find new customers[160] - The group plans to relocate a portion of its production equipment to Mexico to avoid heavy tariffs on products exported from China to the US[166] Stock Options - The company granted a total of 71,650,000 stock options under the share option scheme, with an exercise price of HKD 0.906[129] - The fair value of the granted share options was approximately HKD 7,379,000, with HKD 214,000 recognized in the profit and loss for the six months ended June 30, 2019[130] - The exercise price for the stock options granted on June 14, 2019, was HKD 0.906, with an exercise period from June 14, 2020, to June 13, 2029[196] - A maximum of 25% of the stock options granted can be exercised between June 14, 2020, and June 13, 2021, with the remaining options exercisable from June 14, 2021, to June 13, 2029[197]

Financial Performance - The Group's turnover for 2018 was HK$5.3 billion, reflecting an increase of approximately 7.5% compared to 2017[8] - Profit attributable to shareholders decreased to HK$82 million, representing a decline of approximately 26.3% due to a decline in profitability in the Manufacturing Division[8] - The turnover of the Industrial Products Trading and Distribution Division was HK$2.2 billion, representing an improvement of approximately 6% compared to last year[10] - The Division's operating profit for the whole year was HK$105.9 million, reflecting an improvement of 28% compared to last year[10] - The turnover of the OEM Manufacturing Division increased by 8.5% to HK$3.1 billion for 2018[10] - The Division's operating profit decreased to HK$31.3 million from HK$90.9 million due to tightening component environment and escalating labour costs[10] - Turnover for 2018 was HK$5,296,411, showing an increase from HK$4,928,306 in 2017, representing a growth of approximately 7.4%[43] - Profit attributable to owners of the Company for 2018 was HK$82,106, a decrease from HK$111,471 in 2017, reflecting a decline of about 26.4%[43] - Total assets as of 31 December 2018 were HK$3,535,908, up from HK$3,510,472 in 2017, indicating a growth of approximately 0.7%[43] - Total liabilities increased to HK$1,863,743 in 2018 from HK$1,831,078 in 2017, which is an increase of about 1.8%[43] - Equity attributable to owners of the Company rose to HK$1,602,277 in 2018, compared to HK$1,587,124 in 2017, marking an increase of approximately 1.0%[43] Profitability Metrics - The Group's operating profit margin decreased to 2.6% in 2018 from 3.2% in 2017, a decline of 0.6 percentage points[38] - Net profit margin also fell to 1.7% in 2018, down from 2.3% in 2017, representing a decrease of 0.6 percentage points[38] - Earnings per share decreased by 24.4%, from 14.85 Hong Kong cents in 2017 to 11.23 Hong Kong cents in 2018[38] Financial Position - As of December 31, 2018, the Group had committed bank and other financing facilities totaling HK$2,576 million, with HK$973 million drawn down[12] - The Group's consolidated net borrowings amounted to HK$556 million, with total equity of HK$1,672 million, resulting in a net gearing ratio of 33.3%[12] - The current ratio remained stable at 1.6 times, indicating consistent liquidity management[37] - Net debts to total equity increased significantly from 5.7% in 2017 to 33.3% in 2018, an increase of 27.6 percentage points[38] - Borrowings to total equity rose from 42.3% in 2017 to 52.4% in 2018, an increase of 10.1 percentage points[38] Market Outlook - The Group expects continued soft demand for industrial products due to the ongoing US-China trade war and unclear economic outlook[32] - The operating environment for the Group's OEM Manufacturing is anticipated to be difficult, prompting a focus on enhancing factory automation[33] Employee Metrics - The Group had a total of 5,617 employees as of December 31, 2018, with 233 based in Hong Kong, 5,059 in the PRC, and 325 overseas[14] - The average return rate of factory workers in the PRC was approximately 91.4% after the 2019 Chinese New Year holiday[15] - Employee benefit expenses as a percentage of revenue decreased from 13.3% in 2017 to 12.8% in 2018, a reduction of 0.5 percentage points[38] - Other operating expenses as a percentage of revenue slightly increased from 5.4% in 2017 to 5.5% in 2018, an increase of 0.1 percentage points[38] Corporate Governance - The company is committed to maintaining high standards of corporate governance practices[154] - The Company has complied with the public float requirements of the Listing Rules for the financial year ended December 31, 2018[156] - The consolidated financial statements for the year have been audited by PricewaterhouseCoopers, who are eligible for reappointment at the forthcoming annual general meeting[159] - The Board comprises six Executive Directors, two Non-Executive Directors, and five Independent Non-Executive Directors, ensuring a diverse governance structure[165] - All Independent Non-Executive Directors have confirmed their independence according to Rule 3.13 of the Listing Rules[166] - The Company has maintained directors' liability insurance throughout the financial year to provide appropriate coverage for its Directors[156] - The Company aims to comply with all code provisions of the Corporate Governance Code as set out in the Listing Rules[162] Strategic Initiatives - The company provided an optimistic outlook, projecting a revenue growth of 25% for the next fiscal year, aiming for $187.5 million[51] - New product development initiatives are underway, with an investment of $5 million allocated for research and development in the upcoming year[51] - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[51] - A strategic acquisition of a local competitor is being considered, which could enhance the company's distribution capabilities and increase market penetration[51] - The company is focusing on enhancing its digital marketing strategies, with a budget increase of 30% for advertising and promotions[51] - The introduction of a new technology platform is expected to improve operational efficiency by 15%[51] - The company aims to diversify its product offerings, with plans to launch three new product lines by the end of the next fiscal year[51] - The management team emphasized the importance of sustainability in their future strategies, committing to reduce carbon emissions by 25% over the next five years[51] Shareholder Information - The Company reported an interim dividend of HK$0.015 per share for 2018, an increase from HK$0.01 in 2017[101] - The Board of Directors recommended a final dividend of HK$0.05 per share for the year ended 31 December 2018, down from HK$0.06 per share in 2017[101] - The Company's distributable reserves amounted to HK$139,062,000 as of the balance sheet date, a decrease from HK$187,390,000 in 2017[105] - During the year, the Company repurchased a total of 8,258,000 shares at an aggregate consideration of HK$10,107,380[109] - The highest purchase price for repurchased shares was HK$1.23, while the lowest was HK$1.18[112] Management Team - The Group has a strong management team with members having over 30 years of industry experience in various fields[79] - The Group's executives hold degrees in relevant fields, including Electronics Engineering and Industrial Engineering, enhancing their expertise[80] - The management team has a diverse background, contributing to the Group's strategic direction and operational efficiency[81] - The Group emphasizes the importance of experienced leadership in driving its business growth and market expansion[82]