香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公佈全部或任 何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 主席 黃志深 香港，二零二五年八月十五日 於本公佈日期，本公司執行董事為黃志深先生及黃麗花女士；而本公司獨立非執 行董事則為黃定幹先生、彭婉珊女士、張灼祥先生及陳增武先生。 董事會會議日期 迅捷環球控股有限公司（「本公司」）董事會（「董事會」）謹此宣佈，董事會謹訂於 二零二五年八月二十九日（星期五）舉行會議，藉以（其中包括）考慮及批准本公 司及其附屬公司截至二零二五年六月三十日止六個月之未經審核簡明綜合財務報 表及其刊發，以及考慮宣派中期股息（如有）。 承董事會命 迅捷環球控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：540） ...

（於開曼群島註冊成立之有限公司） （股份代號：540） 盈利警告 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公佈全部或任 何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 本公佈所載資料僅為董事會經參考本集團未經審核綜合管理賬目及董事會現時可 獲得的其他資料所作出的初步評估。有關資料尚未經核數師或審核委員會審核或 審閱。由於本公司仍在落實於報告期間之財務業績，於報告期間的最終業績可能 會有所變化且可能與本公佈所披露的資料有別。本公司於報告期間的最終業績及 本集團其他運營詳情將於本公司於報告期間的中期業績公佈內披露，而有關中期 業績公佈預期將於二零二五年八月底之前發佈。 謹請股東及有意投資者於買賣本公司股份時審慎行事。 承董事會命 迅捷環球控股有限公司 主席兼行政總裁 黃志深 香港，二零二五年八月十五日 於本公佈日期，本公司執行董事為黃志深先生及黃麗花女士；而本公司獨立非執 行董事則為黃定幹先生、彭婉珊女士、張灼祥先生及陳增武先生。 本公佈由迅捷環球控股有限公司（「本公司」，連同其附屬公司統稱為「本集團」） ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00540 | 說明 | 股份 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 1,200,000,000 | HKD | | 0.1 | HKD | | 120,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 1,200,000,000 | HKD | | 0.1 | HKD | | 120,000,000 | 本月底法定/註冊股本總額： HKD 120,00 ...

Company Overview - Speedy Global Holdings Limited is a leading supply chain service provider, offering comprehensive services such as product design and development, trend confirmation, material procurement, order management, quality control, packaging, inventory management, and logistics for globally recognized brands [2] - The company previously operated a retail business but terminated its Unisex and Promod brand sales due to unsatisfactory performance, focusing instead on identifying more profitable retail opportunities [2] Financial Performance - As of December 31, 2024, Speedy Global Holdings reported total revenue of 612 million yuan, a year-on-year increase of 42.87% [1] - The net profit attributable to shareholders was 15.65 million yuan, reflecting a significant year-on-year growth of 441.43% [1] - The company's gross profit margin stood at 12.33%, with a debt-to-asset ratio of 69.6% [1] Market Position and Valuation - The company's price-to-earnings (P/E) ratio is 5.79, ranking 17th in the textile and apparel industry, which has an average P/E ratio of -6.59 [1] - Other companies in the same industry have varying P/E ratios, with FAST RETAIL-DRS at 0.36, Zhejiang Yong'an at 1.34, Urban Beauty at 3.78, Chih Li Industrial Group at 3.92, and Shanshan Brand at 4.1 [1] Property Development and Investment - The company previously focused on property development in Xinmi City but sold its 50% stake in Speedy Global Development Limited for 10 HKD to mitigate risks associated with industrial property investments [3] - The board believes that this sale helps avoid uncertainties related to the depreciation of the RMB and the slowing growth of GDP and industrial value-added in Henan Province [3] - The company will continue to monitor the property market and seek suitable investment and development strategies to enhance shareholder returns [3]

Financial Performance - For the year 2024, the Group's revenue increased to approximately HK$660.5 million, representing an increase of approximately 42.9% compared to 2023[19] - Profit attributable to equity holders for the year increased to approximately HK$16.9 million, a significant recovery from a loss of HK$5.0 million in 2023[19] - Revenue from the Apparel Supply Chain Servicing Business was approximately HK$660.5 million in 2024, up from HK$462.3 million in 2023[20] - The increase in revenue for 2024 was primarily driven by increased sales from existing customers[20] - Gross profit rose by 107.1% to approximately HK$81.4 million, with a gross profit margin of 12.3%, up from 8.5% in 2023[37] - Net profit for 2024 was approximately HK$16.9 million, a significant turnaround from a net loss of HK$5.0 million in 2023, driven by increased sales orders and reduced finance costs[41] Operational Efficiency - The Group plans to enhance product innovation and creativity to explore new opportunities with existing and potential customers[22] - Production management will focus on simplifying processes to improve operational efficiency and reduce product delivery time[22] - The Group aims to consolidate fabrication with customers to achieve better material prices through mass procurement, enhancing cost competitiveness[24] - The Group's strategy includes simplifying its organizational structure to reduce costs[24] - The Group plans to continue implementing cost-saving measures to enhance profitability[37] Financial Position - The Group's total assets increased by 8.5% to HK$283.3 million as of December 31, 2024, compared to HK$261.0 million in 2023[29] - Bank borrowings decreased by 67.8% to HK$21.2 million, down from HK$65.9 million in 2023[29] - Net current assets increased by 41.2% to HK$83.0 million, compared to HK$58.8 million in 2023[29] - The current ratio improved to 1.4 in 2024, up from 1.3 in 2023[29] - Trade receivable turnover days decreased to 40 days in 2024, down from 47 days in 2023[29] Expenses and Costs - Sales and marketing expenses reduced to approximately HK$1.2 million in 2024, compared to HK$1.5 million in 2023[38] - Administrative expenses increased to approximately HK$49.0 million (2023: HK$40.3 million), primarily due to employee benefits rising from approximately HK$16.0 million in 2023 to approximately HK$27.2 million in 2024[49] - Other losses amounted to approximately HK$6.1 million in 2024, compared to other gains of HK$0.5 million in 2023, mainly due to losses on the disposal of a subsidiary[50] - Finance income decreased by 24.3% to approximately HK$2.4 million (2023: HK$3.2 million) due to a reduction in interest income from short-term deposits[51] - Finance costs decreased by 44.6% to approximately HK$4.0 million (2023: HK$7.1 million), primarily due to the repayment of bank borrowings[52] Corporate Governance - The company has complied with the Corporate Governance Code provisions during the year 2024, with the exception of the separation of roles between the chairman and the chief executive officer[118] - The Board currently consists of six directors, including two executive directors and four independent non-executive directors[122] - The company has adopted a code of conduct for securities transactions that meets or exceeds the standards set out in the Model Code[119] - The company is committed to ongoing enhancements of corporate governance principles and practices to balance the interests of shareholders, customers, and employees[117] - The Board is responsible for overseeing the Company's affairs, including adopting long-term strategies and supervising senior management[132] Risk Management - The Board is responsible for maintaining effective risk management and internal control systems to safeguard shareholder interests[181] - The Group's risk management process includes identification, assessment, evaluation, and treatment of risks[182] - The Audit Committee conducted an annual review of the effectiveness of the Group's risk management and internal control system for the year ended 31 December 2024, finding it effective and adequate[185] Environmental, Social, and Governance (ESG) - The Company focuses on integrating environmental, social, and governance (ESG) principles into its business strategy, prioritizing sustainable practices in its supply chain services and property development plans[198] - The Company aims to create long-term value for stakeholders while making positive contributions to the environment and society through its ESG initiatives[198] Shareholder Rights - Shareholders holding not less than one tenth of the paid-up capital have the right to requisition an extraordinary general meeting[188] - The notice period for proposals at general meetings varies, requiring at least 14 days for ordinary resolutions and 21 days for special resolutions[192]

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 660.5 million, representing a 42.9% increase from HKD 462.3 million in 2023[2] - Gross profit for the same period was HKD 81.4 million, up 107.1% from HKD 39.3 million in 2023, resulting in a gross margin of 12.3% compared to 8.5%[2][4] - The net profit attributable to equity holders for the year was HKD 16.9 million, a significant recovery from a loss of HKD 5.0 million in 2023, with a net profit margin of 2.6%[2][4] - Basic and diluted earnings per share for the year were HKD 0.0282, compared to a loss per share of HKD 0.0083 in the previous year[2][4] - Revenue increased by 42.9% to approximately HKD 660.5 million in 2024, compared to HKD 462.3 million in 2023[34] - Gross profit rose by 107.1% to approximately HKD 81.4 million in 2024, with a gross margin of about 12.3%, up from 8.5% in 2023[34] - Net profit for 2024 was approximately HKD 16.9 million, a significant turnaround from a net loss of HKD 5.0 million in 2023[34] Assets and Liabilities - Total assets as of December 31, 2024, amounted to HKD 283.3 million, an increase from HKD 261.0 million in 2023[5][6] - Total equity attributable to equity holders increased to HKD 86.1 million from HKD 69.5 million in 2023[5][6] - Current liabilities rose to HKD 195.7 million from HKD 190.2 million in 2023, with accounts payable and other payables increasing to HKD 109.8 million[6] - Accounts receivable increased to HKD 91.8 million in 2024 from HKD 51.6 million in 2023, indicating improved sales performance[29] - Inventory balance rose to approximately HKD 75.9 million in 2024 from HKD 43.3 million in 2023, attributed to increased sales[40] - Accounts payable rose from HKD 69,500,000 as of December 31, 2023, to HKD 93,600,000 as of December 31, 2024, due to increased procurement activities[43] Revenue Sources - Revenue from major customers contributing 10% or more to the group's revenue totaled HKD 587,706,000 for 2024, up from HKD 397,878,000 in 2023, indicating a growth of about 47.7%[15] - The group's sales analysis by region showed that revenue from China was HKD 641,019,000 in 2024, up from HKD 437,594,000 in 2023, representing an increase of approximately 46.4%[17] Expenses - The cost of sales, marketing, and administrative expenses totaled HKD 629,278,000 for the year ended December 31, 2024, compared to HKD 464,792,000 in 2023, reflecting an increase of approximately 35.4%[18] - Employee benefit expenses increased to HKD 69,585,000 in 2024 from HKD 60,176,000 in 2023, reflecting a rise of about 15.9%[18] - Selling and marketing expenses decreased to approximately HKD 1.2 million in 2024 from HKD 1.5 million in 2023, due to reduced sales commissions and travel expenses[35] - Administrative expenses increased to approximately HKD 49.0 million in 2024 from HKD 40.3 million in 2023, primarily due to higher employee benefit costs[36] Tax and Provisions - The income tax expense for the year ended December 31, 2024, was HKD 6,641,000, a significant increase from a tax credit of HKD 373,000 in 2023[21] - The group incurred a bad debt provision of HKD 697,000 for the year ended December 31, 2024, compared to a reversal of HKD 102,000 in 2023[19] - Tax expense for 2024 was approximately HKD 6.6 million, compared to a tax credit of HKD 0.4 million in 2023[39] Other Financial Information - The group reported a net loss of HKD 6,050,000 from other losses for the year ended December 31, 2024, compared to a gain of HKD 524,000 in 2023[20] - Other losses for 2024 amounted to approximately HKD 6.1 million, compared to other income of HKD 0.5 million in 2023, mainly due to losses from the sale of subsidiaries[37] - Financial income decreased by 24.3% to approximately HKD 2.4 million in 2024, while financing costs decreased by 44.6% to approximately HKD 4.0 million[38] Compliance and Governance - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance and transparency in reporting[10] - The company has adopted a standard code of conduct for securities trading as per the listing rules, effective from January 1, 2024[60] - All relevant employees are required to comply with the code of conduct when trading the company's securities[61] Future Plans and Events - The group plans to enhance product innovation and improve operational efficiency to shorten product delivery times in 2025[56] - The annual report for the year ending December 31, 2024, will be published around April 25, 2025[66] - The annual general meeting is scheduled for May 23, 2025, with shareholder registration suspended from May 20 to May 23, 2025[65] - No significant events affecting the company and its subsidiaries occurred after the reporting period[62] Capital and Investments - The group had no significant capital commitments as of December 31, 2024[50] - The group did not utilize any financial instruments to hedge foreign currency risks during 2024[48] - The group had no major investments in other companies as of December 31, 2024[52]

[Financial Highlights](index=3&type=section&id=Financial%20Highlights) The company achieved significant revenue growth and a return to profitability in the first half of 2024, while maintaining a stable financial position and reducing borrowings Key Financial Performance for the Six Months Ended June 30, 2024 | Indicator | H1 2024 (Unaudited) (HK$ million, unless otherwise stated) | H1 2023 (Unaudited) (HK$ million, unless otherwise stated) | Change | | :--- | :--- | :--- | :--- | | Revenue | 281.9 | 179.7 | +56.9% | | Gross Profit | 30.4 | 20.1 | +51.2% | | Gross Margin | 10.8% | 11.2% | -0.4pp | | Profit/(Loss) Attributable to Owners of the Company | 5.3 | (4.0) | +232.5% | | Basic Earnings/(Loss) Per Share | HK$0.0088 | (HK$0.0066) | N/A | Key Financial Position as of June 30, 2024 | Indicator | June 30, 2024 (Unaudited) (HK$ million) | December 31, 2023 (Audited) (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 70.8 | 58.8 | +20.4% | | Total Assets | 349.9 | 261.0 | +34.1% | | Borrowings | 35.6 | 65.9 | -46.0% | | Total Liabilities | 275.3 | 191.4 | +43.8% | | Equity Attributable to Owners of the Company | 74.6 | 69.5 | +7.3% | - Key financial ratios show the current ratio remained stable at **1.2 times**, consistent with the end of 2023, while inventory, trade receivables, and trade payables turnover days all increased, reaching **49 days**, **48 days**, and **77 days** respectively[5](index=5&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) This section provides details on the company's governance structure, key personnel, principal offices, and listing information - The report lists the company's board members and the composition and chairpersons of its committees, including audit, nomination, remuneration, and conflict handling, with Mr. Wong Chi Sum serving as the Chairman of the Board[6](index=6&type=chunk) - The company's principal place of business is in San Po Kong, Kowloon, Hong Kong, with its China headquarters in Humen Town, Dongguan City, and PricewaterhouseCoopers as its auditor[7](index=7&type=chunk) - The company's shares are listed on The Stock Exchange of Hong Kong Limited under stock code **540**[9](index=9&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's insights into the company's financial performance, liquidity, significant events, and future outlook for the reporting period [Financial Review](index=7&type=section&id=FINANCIAL%20REVIEW) The Group achieved a turnaround to profitability in this reporting period, with revenue increasing by **56.9%** due to higher existing customer orders, and net profit reaching **HK$5.3 million** despite a slight decrease in gross margin to **10.8%** H1 2024 Performance Overview | Indicator | H1 2024 (HK$ million, unless otherwise stated) | H1 2023 (HK$ million, unless otherwise stated) | Reason for Change | | :--- | :--- | :--- | :--- | | Revenue | 281.9 | 179.7 | Increase in sales orders from existing customers | | Gross Margin | 10.8% | 11.2% | Increase in operating costs | | Administrative Expenses | 23.9 | 21.9 | Increase in employee benefit expenses and donations | | Finance Costs | 2.0 | 3.4 | Repayment of bank borrowings | | Net Profit/(Loss) | 5.3 | (4.0) | Revenue growth and cost control | - The Group recognized an exchange loss of approximately **HK$0.5 million** due to the strong performance of RMB, compared to an exchange gain of **HK$1.0 million** in the same period last year[11](index=11&type=chunk) [Working Capital, Liquidity and Financial Resources](index=9&type=section&id=LIQUIDITY%20AND%20FINANCIAL%20RESOURCES) The Group's financial position remains robust, with increased inventory and trade receivables supporting revenue growth, extended trade payables days, reduced bank borrowings, and ample cash and cash equivalents maintaining a stable current ratio Changes in Working Capital Items | Item | June 30, 2024 (HK$ million, unless otherwise stated) | December 31, 2023 (HK$ million, unless otherwise stated) | Reason for Change | | :--- | :--- | :--- | :--- | | Inventory | 93.0 | 43.3 | Increased stock for H2 deliveries | | Inventory Turnover Days | 49 days | 40 days | - | | Trade Receivables | 95.0 | 51.6 | Consistent with increased revenue | | Trade Receivables Turnover Days | 48 days | 47 days | Remained stable | | Trade Payables | 143.9 | 69.5 | Increased purchases | | Trade Payables Turnover Days | 77 days | 59 days | Delayed settlement with suppliers | - As of June 30, 2024, the Group's cash and cash equivalents were approximately **HK$104.3 million**, with the current ratio maintained at **1.2**, indicating sufficient financial resources[13](index=13&type=chunk) - The Group adopts a prudent financial management strategy, closely monitoring liquidity to mitigate credit and foreign exchange risks, and did not use any financial instruments for hedging during the period[13](index=13&type=chunk) [Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures](index=12&type=section&id=MATERIAL%20ACQUISITIONS%20AND%20DISPOSALS%20OF%20SUBSIDIARIES,%20ASSOCIATES%20AND%20JOINT%20VENTURES) During the reporting period, the Group had no significant investments, capital commitments, or asset pledges, but entered into an agreement in May 2024 to dispose of its entire equity interest in Agile Sweater (Cambodia) Co., Ltd., which remains pending completion - In May 2024, Grand Gain Industrial (Hong Kong) Limited, a subsidiary of the Company, agreed to dispose of its **100%** equity interest in its Cambodian subsidiary, Agile Sweater (Cambodia) Co., Ltd., which, upon completion, will cease to be a subsidiary of the Company, with the disposal still pending as of the report date[18](index=18&type=chunk) - As of June 30, 2024, the Group had no significant investments, material capital commitments, or asset pledges[14](index=14&type=chunk)[16](index=16&type=chunk)[18](index=18&type=chunk) [Contingent Liabilities and Subsequent Events](index=12&type=section&id=CONTINGENT%20LIABILITIES) The previously disclosed potential tax risk for the Cambodian subsidiary was resolved in April 2024, and as of the reporting period end, the Group had no other significant contingent liabilities or material subsequent events - Regarding the potential tax risk for the Cambodian subsidiary, the Cambodian tax authority completed its assessment in April 2024 and informed the subsidiary that it had complied with tax regulations, thereby mitigating the potential tax risk[18](index=18&type=chunk)[68](index=68&type=chunk) - As of June 30, 2024, the Group had no significant contingent liabilities, and no material subsequent events occurred from the end of the reporting period up to the date of this report[19](index=19&type=chunk)[20](index=20&type=chunk) [Prospects](index=13&type=section&id=PROSPECTS) For the second half of 2024, the Group plans to enhance competitiveness by strengthening product innovation, streamlining production processes to shorten lead times, integrating procurement for cost reduction, and simplifying organizational structure to optimize expenses - To explore new business opportunities, the Group will continue to strengthen product innovation and enhance creativity[20](index=20&type=chunk) - In terms of production management, the Group will enhance operational efficiency and cost competitiveness by streamlining production processes and collaborating closely with customers to integrate production for better material pricing[20](index=20&type=chunk) - The Group will endeavor to simplify its organizational structure and various operational processes to achieve cost savings[20](index=20&type=chunk) [Condensed Consolidated Financial Statements](index=14&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's unaudited condensed consolidated financial statements, including the statement of comprehensive income, financial position, changes in equity, and cash flows for the interim period [Condensed Consolidated Statement of Comprehensive Income](index=14&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20COMPREHENSIVE%20INCOME) This statement details the Group's revenue, costs, expenses, and profitability for the reporting period, showing a revenue of **HK$281.9 million** and a net profit of **HK$5.3 million**, marking a successful turnaround from loss Summary of Condensed Consolidated Statement of Comprehensive Income for the Six Months Ended June 30, 2024 | Item (HK$ thousand) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 281,856 | 179,688 | | Gross Profit | 30,351 | 20,091 | | Operating Profit/(Loss) | 7,455 | (96) | | Profit/(Loss) Before Income Tax | 6,459 | (2,134) | | Profit/(Loss) for the Period | 5,273 | (3,970) | | Total Comprehensive Income/(Loss) | 5,089 | (4,575) | [Condensed Consolidated Statement of Financial Position](index=15&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20FINANCIAL%20POSITION) This statement reflects the Group's assets, liabilities, and equity at the end of the reporting period, with total assets increasing to **HK$349.9 million**, total liabilities to **HK$275.3 million**, and total equity slightly increasing to **HK$74.6 million** Summary of Statement of Financial Position (HK$ thousand) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 5,313 | 11,965 | | Current Assets | 344,593 | 248,996 | | **Total Assets** | **349,906** | **260,961** | | **Equity and Liabilities** | | | | Total Equity | 74,624 | 69,535 | | Non-current Liabilities | 1,470 | 1,224 | | Current Liabilities | 273,812 | 190,202 | | **Total Liabilities** | **275,282** | **191,426** | | **Total Equity and Liabilities** | **349,906** | **260,961** | [Condensed Consolidated Statement of Changes in Equity](index=17&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CHANGES%20IN%20EQUITY) This statement illustrates the changes in shareholders' equity from the beginning to the end of the period, with total equity increasing from **HK$69.5 million** to **HK$74.6 million**, primarily driven by the **HK$5.3 million** net profit for the period - As of January 1, 2024, total equity was **HK$69,535 thousand**, with a profit for the period of **HK$5,273 thousand** and an exchange difference (loss) of **HK$184 thousand**, resulting in total equity of **HK$74,624 thousand** as of June 30, 2024[25](index=25&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=18&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENT%20OF%20CASH%20FLOWS) This statement summarizes cash inflows and outflows from operating, investing, and financing activities, showing a net cash outflow from operating activities of **HK$21.1 million** primarily due to increased inventory and trade receivables, with cash and cash equivalents at period-end totaling **HK$104.3 million** Summary of Cash Flow Statement (HK$ thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (21,098) | (37,224) | | Net Cash From Investing Activities | 1,284 | 1,144 | | Net Cash Used in Financing Activities | (2,792) | (10,790) | | Net Decrease in Cash and Cash Equivalents | (22,606) | (46,870) | | Cash and Cash Equivalents at Beginning of Period | 127,115 | 160,720 | | **Cash and Cash Equivalents at End of Period** | **104,297** | **113,058** | [Notes to the Unaudited Condensed Consolidated Interim Financial Statements](index=19&type=section&id=NOTES%20TO%20THE%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20INTERIM%20FINANCIAL%20STATEMENTS) This section provides detailed explanatory notes to the unaudited condensed consolidated interim financial statements, covering revenue, dividends, assets held for sale, and contingencies [Note 6: Revenue and Segment Information](index=22&type=section&id=6.%20REVENUE%20AND%20SEGMENT%20INFORMATION) The Group operates as a single operating segment, focusing on apparel supply chain services, with two major customers contributing **86%** of total revenue during the reporting period - All of the Group's revenue is derived from its apparel supply chain services business, which is managed as a single operating segment[33](index=33&type=chunk)[38](index=38&type=chunk)[40](index=40&type=chunk) Revenue Contribution by Major Customers | Customer | H1 2024 Revenue (HK$ thousand) | H1 2023 Revenue (HK$ thousand) | | :--- | :--- | :--- | | Customer A | 156,810 | 83,407 | | Customer B | 85,712 | 71,198 | | **Total** | **242,522** | **154,605** | [Note 11: Dividends](index=26&type=section&id=11.%20DIVIDENDS) The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2024 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2024 (H1 2023: nil)[48](index=48&type=chunk)[50](index=50&type=chunk) [Note 13: Assets and Liabilities of Disposal Group Classified as Held for Sale](index=28&type=section&id=13.%20ASSETS%20AND%20LIABILITIES%20OF%20DISPOSAL%20GROUP%20CLASSIFIED%20AS%20HELD%20FOR%20SALE) Assets and liabilities related to the planned disposal of the Cambodian subsidiary, Agile Sweater (Cambodia) Co., Ltd., have been reclassified as 'held for sale,' with total assets of **HK$13.473 million** and total liabilities of **HK$14.841 million** as of the reporting period end - On May 13, 2024, the Group entered into an agreement to dispose of its **100%** equity interest in its Cambodian subsidiary, Agile Sweater (Cambodia) Co., Ltd., with the transaction still pending completion[54](index=54&type=chunk)[56](index=56&type=chunk) Assets and Liabilities Held for Sale (HK$ thousand) | Item | June 30, 2024 (HK$ thousand) | | :--- | :--- | | **Assets Classified as Held for Sale** | | | Property, Plant and Equipment | 4,271 | | Trade and Other Receivables | 6,648 | | Cash and Cash Equivalents | 2,554 | | **Total Assets** | **13,473** | | **Liabilities Directly Associated with Assets Held for Sale** | | | Accrued Wages and Other Payables, etc. | (14,841) | | **Total Liabilities** | **(14,841)** | [Note 19: Contingencies](index=32&type=section&id=19.%20CONTINGENCIES) The previously disclosed potential tax risk concerning the Cambodian subsidiary has been resolved, and as of the reporting period end, the Group has no other significant contingent liabilities - The Cambodian tax authority informed the relevant subsidiary in April 2024 that it had complied with tax regulations in all respects, thereby mitigating the previously disclosed potential tax risk[68](index=68&type=chunk)[69](index=69&type=chunk) [Other Information](index=33&type=section&id=OTHER%20INFORMATION) This section covers additional disclosures including directors' and major shareholders' interests, corporate governance practices, and the audit committee's review of the interim financial report [Directors' and Chief Executives' Interests or Short Positions in Shares, Underlying Shares and Debenture](index=33&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVES'%20INTERESTS%20OR%20SHORT%20POSITIONS%20IN%20SHARES,%20UNDERLYING%20SHARES%20AND%20DEBENTURE) This section details the shareholdings of directors and major shareholders, with Chairman Mr. Wong Chi Sum holding **54.54%** of the company's issued share capital through his wholly-owned Sky Halo Holdings Limited, making him the controlling shareholder - Chairman Mr. Wong Chi Sum holds **327,242,688** ordinary shares through his wholly-owned Sky Halo Holdings Limited, representing **54.54%** of the company's issued share capital[71](index=71&type=chunk) - Other major shareholders include Mr. Chan Hung Kwong holding **5.51%** and Mr. Cheuk Lim Fai holding **5.03%**[73](index=73&type=chunk) [Corporate Governance](index=36&type=section&id=CORPORATE%20GOVERNANCE) The company largely complied with the Corporate Governance Code during the period, with one deviation where the roles of Chairman and Chief Executive Officer are combined under Mr. Wong Chi Sum, a structure the Board believes facilitates efficient decision-making - The company deviates from Corporate Governance Code provision C.2.1, as the roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Wong Chi Sum[74](index=74&type=chunk) - The Board believes the current structure does not impair the balance of power and accountability and facilitates prompt decision-making, and the company will continue to consider the feasibility of appointing an independent Chief Executive Officer[74](index=74&type=chunk) [Audit Committee and Interim Dividend](index=37&type=section&id=AUDIT%20COMMITTEE) The Audit Committee, comprising four independent non-executive directors, has reviewed the interim financial report and found it properly prepared and disclosed, while the Board has resolved not to declare an interim dividend for the period - The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2024, and considers them to be properly prepared and disclosed[75](index=75&type=chunk) - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2024[75](index=75&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 281.9 million, representing a 56.9% increase from HKD 179.7 million in the same period of 2023[1] - Gross profit for the same period was HKD 30.4 million, up 51.2% from HKD 20.1 million year-on-year[1] - The net profit attributable to equity holders for the period was HKD 5.3 million, a significant turnaround from a loss of HKD 4.0 million in the previous year, marking a 232.5% improvement[1] - Basic and diluted earnings per share for the period were HKD 0.0088, compared to a loss per share of HKD 0.0066 in the prior year[2] - Operating profit for the period was HKD 7.5 million, a recovery from an operating loss of HKD 0.1 million in the same period last year[2] - The company's total revenue for the six months ended June 30, 2024, was approximately HKD 281.9 million, representing an increase of about 232.5% compared to HKD 179.7 million for the same period last year[34] - Gross profit for the same period was HKD 30.4 million, with a slight decrease in gross margin to 10.8% from 11.2% in the previous year, primarily due to increased operating costs[34] - The net profit attributable to equity holders for the six months ended June 30, 2024, was approximately HKD 5.3 million, a turnaround from a net loss of HKD 4.0 million in the same period last year[40] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 349.9 million, an increase from HKD 261.0 million as of December 31, 2023[3] - Total liabilities increased to HKD 275.3 million from HKD 191.4 million at the end of 2023, indicating a rise in financial obligations[5] - Total accounts receivable as of June 30, 2024, amounted to HKD 103,133,000, an increase from HKD 62,514,000 as of December 31, 2023[27] - Accounts receivable rose from approximately HKD 51.6 million as of December 31, 2023, to approximately HKD 95.0 million as of June 30, 2024, consistent with the increase in revenue[42] - Inventory balance increased from approximately HKD 43.3 million as of December 31, 2023, to approximately HKD 93.0 million as of June 30, 2024, leading to an increase in inventory turnover days to 49 days[41] - Accounts payable increased from approximately HKD 69.5 million to approximately HKD 143.9 million, with turnover days rising to 77 days due to delayed payments to suppliers[44] Cash Flow and Liquidity - The company’s cash and cash equivalents stood at HKD 104.3 million, up from HKD 96.2 million at the end of 2023[3] - As of June 30, 2024, the group maintained a healthy liquidity position with cash and cash equivalents amounting to approximately HKD 104.3 million, including HKD 67.6 million in HKD, RMB 31.5 million, and USD 4.3 million[46] - The current ratio as of June 30, 2024, was approximately 1.2, consistent with December 31, 2023[46] - Bank borrowings as of June 30, 2024, were approximately HKD 93.7 million, a decrease from HKD 96.5 million as of December 31, 2023, with all borrowings subject to repayment terms[45] Operational Insights - The group recognized revenue of approximately HKD 1,009,000,000 related to contract liabilities as of January 1, 2024, compared to HKD 524,000,000 in 2023[13] - Major customers contributing over 10% of total revenue included Customer A with HKD 156,810,000 and Customer B with HKD 85,712,000 for the six months ended June 30, 2024[13] - Total employee costs for the group were approximately HKD 38.9 million for the six months ended June 30, 2024, compared to HKD 30.8 million for the same period last year, reflecting a year-on-year increase of about 26.4%[51] - The group plans to enhance product innovation and improve operational efficiency to shorten delivery times and reduce costs in the second half of 2024[59] Risk Management - The group faced various financial risks, including market risk, credit risk, and liquidity risk, which are detailed in the annual financial statements[12] - The group has not utilized any financial instruments to hedge foreign currency risks as of June 30, 2024[48] Corporate Governance - An audit committee has been established, consisting of four independent non-executive directors, with Mr. Huang Dinggan as the chairman[63] - The unaudited condensed interim financial statements for the six months ending June 30, 2024, have been reviewed by the audit committee, which believes they are prepared in accordance with applicable accounting standards[63] - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors until June 30, 2024[62] Dividend and Shareholder Information - The group did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[25] - The board has decided not to declare an interim dividend for the six months ending June 30, 2024[63] - The interim report will be published on the company's website at an appropriate time[64]

Financial Performance and Risks - The Group's financial performance is impacted by various financial risks, including market risk, credit risk, and liquidity risk, with a focus on minimizing adverse effects on financial performance [14]. - Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities not denominated in the entity's functional currency, primarily affecting companies with Renminbi and US dollar functional currencies [14]. - The Group's investments in the PRC are exposed to foreign currency translation risk, managed primarily through dividends paid outside the PRC [14]. - The Group's overall risk management program focuses on the unpredictability of financial markets to mitigate potential adverse effects on financial performance [14]. - The Group closely monitors foreign currency rate movements to manage foreign exchange risk [14]. - The Group's credit risk is primarily from cash and cash equivalents, short-term bank deposits, and trade receivables, with ongoing monitoring of exposures [34]. - The Group's exposure to foreign currency risk includes cash and cash equivalents, trade receivables, and payables, with regular reviews and hedging strategies in place [24]. - The Group's exposure to interest rate risk is primarily from cash and cash equivalents, short-term bank deposits, finance payables, and bank borrowings [66]. Financial Results - For the year 2023, the Group's revenue decreased to approximately HK$462.3 million, representing a decrease of approximately 17.7% compared to 2022 [55]. - Loss for the year attributable to equity holders decreased to approximately HK$5.0 million, representing a decrease of approximately 85.5% compared to 2022 [55]. - Revenue under the Apparel Supply Chain Servicing Business was approximately HK$462.3 million in 2023, down from HK$561.8 million in 2022 [55]. - The decrease in revenue for 2023 was mainly due to a reduction in sales from existing customers [55]. - The gross profit for 2023 was HK$39.3 million, with a gross profit margin of 8.5%, compared to HK$42.6 million and a margin of 7.6% in 2022 [59]. - The net loss attributable to equity holders of the company for 2023 was HK$5.0 million, significantly improved from a loss of HK$34.5 million in 2022, representing a change of 85.5% [59]. - Total assets were HK$261.0 million, down 18.4% from HK$319.9 million in 2022 [59]. - Total liabilities decreased by 21.7% to HK$191.4 million in 2023 from HK$244.4 million in 2022 [59]. - The company's net assets as of December 31, 2023, were HK$69.5 million, a decline of 7.8% from HK$75.4 million in 2022 [59]. Cash Flow and Liquidity - As of December 31, 2023, the Group's cash and cash equivalents totaled HK$25,562,000, a decrease from HK$39,020,000 as of December 31, 2022 [16]. - The current ratio improved to 1.3 in 2023 from 1.2 in 2022, indicating better short-term financial health [59]. - The Group maintained a healthy liquidity position throughout 2023, supported by internal resources and bank borrowings [109]. - Short-term bank deposits were reported at HK$30,942,000 for 2023, with no deposits recorded in 2022 [67]. - Short-term bank deposits and cash equivalents totaled approximately HK$127.1 million as at 31 December 2023, with HK$90.0 million in HKD, HK$14.4 million in RMB, and HK$21.8 million in USD [107]. Operational Efficiency and Cost Management - The company plans to enhance product innovation and streamline production processes to improve operational efficiency and reduce costs [57]. - Selling and marketing expenses decreased to approximately HK$1.5 million (2022: HK$3.4 million) due to the downsizing of the scale of operation of the lossmaking subsidiary [94]. - Administrative expenses decreased to approximately HK$40.3 million (2022: HK$54.7 million) mainly due to the downsizing of the lossmaking subsidiary and a reduction in employee benefits expenses [96]. - The management will continue to implement cost-saving measures where appropriate to enhance profitability [92]. Corporate Governance - The company has complied with the Corporate Governance Code provisions, except for the roles of chairman and CEO being held by the same individual, which is currently Mr. Huang Chih Shen [130]. - The company emphasizes the importance of good corporate governance in balancing the interests of shareholders, customers, and employees [130]. - The Board currently comprises six Directors, including two executive Directors and four independent non-executive Directors [135]. - The Company has adopted a code of conduct for securities transactions by relevant employees, ensuring compliance with the Model Code [132]. - The Company established a nomination committee on 24 December 2012, with written terms of reference in compliance with Code Provisions B.3.1 [147]. ESG and Sustainability - The ESG Report is the eighth published by the Group, aiming to share efforts in maintaining competitiveness and moving toward sustainability in the garment market [192]. - The Board believes that sustainable development is key to long-term success and is committed to incorporating ESG considerations into business operations [198]. - The Group aims to improve sustainability performances through resource optimization in operations [198]. - The Group engaged external consultants to conduct a materiality assessment through stakeholder surveys to identify significant ESG-related topics [196]. Employee and Management Information - As of December 31, 2023, the Group had a total of 1,096 employees, with total staff costs approximately HK$60.2 million, down from HK$64.0 million in 2022 [111]. - The company aims to maintain gender diversity and will review its recruitment and management policies according to business needs [155]. - The remuneration policy for independent non-executive directors ensures adequate compensation for their contributions and time [159]. Audit and Risk Management - The audit committee held two meetings in 2023 to review the Group's accounting principles and internal controls, with all members attending both meetings [166]. - The internal audit function reviews the effectiveness of risk management and internal control systems, providing recommendations for improvement [181]. - The Audit Committee confirmed the effectiveness and adequacy of the Group's risk management and internal control system for the year ended December 31, 2023 [183].

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 462.3 million, a decrease of 17.7% compared to HKD 561.8 million in 2022[2] - Gross profit for the same period was HKD 39.3 million, down 7.7% from HKD 42.6 million in the previous year, with a gross margin of 8.5%[2] - The net loss attributable to equity holders for the year was HKD 5.0 million, significantly improved by 85.5% from a loss of HKD 34.5 million in 2022[2] - Basic and diluted loss per share was HKD 0.0083, compared to HKD 0.0574 in the prior year[2] - Revenue decreased by 17.7% to approximately HKD 462.3 million in 2023, down from HKD 561.8 million in 2022[42] - Gross profit decreased by 7.7% to approximately HKD 39.3 million in 2023, compared to HKD 42.6 million in 2022, with a gross margin increase to approximately 8.5% from 7.6%[42] - The company recorded a loss of approximately HKD 5 million in 2023, significantly reduced from a loss of HKD 34.5 million in 2022[42] Assets and Liabilities - Total assets decreased to HKD 260.96 million from HKD 319.86 million in 2022, reflecting a decline in both non-current and current assets[6][7] - Cash and cash equivalents dropped to HKD 96.17 million from HKD 160.72 million, indicating a liquidity contraction[6] - Total liabilities decreased to HKD 191.43 million from HKD 244.43 million, showing a reduction in financial obligations[7] - Non-current assets, excluding deferred tax assets, totaled HKD 9,319,000 in 2023, a decrease of 69.1% from HKD 30,237,000 in 2022[23] - Accounts receivable decreased to HKD 51.6 million in 2023 from HKD 67.2 million in 2022[36] - Other receivables decreased to HKD 10.9 million in 2023 from HKD 12.3 million in 2022[36] - Property, plant, and equipment decreased from approximately HKD 27.6 million at the end of 2022 to approximately HKD 9.1 million at the end of 2023, primarily due to impairment and depreciation charges from a subsidiary in Cambodia[49] - Inventory balance decreased from approximately HKD 48.1 million at the end of 2022 to approximately HKD 43.3 million at the end of 2023, with inventory turnover days increasing from 33 days to 40 days[51] Expenses and Cost Management - The company reported a significant reduction in administrative expenses, down to HKD 40.3 million from HKD 54.7 million[5] - Total expenses for cost of sales, selling and marketing expenses, and administrative expenses amounted to HKD 464,792,000 in 2023, down 19.5% from HKD 577,298,000 in 2022[26] - The group’s employee benefit expenses were HKD 60,176,000 in 2023, a decrease of 5.5% from HKD 63,972,000 in 2022[26] - Sales and marketing expenses decreased to approximately HKD 1.5 million in 2023 from HKD 3.4 million in 2022[43] - The total employee cost for the year ended December 31, 2023, was approximately HKD 60.2 million, down from HKD 64 million in 2022[62] - Administrative expenses decreased to approximately HKD 40.3 million in 2023 from HKD 54.7 million in 2022, primarily due to a reduction in the scale of loss-making subsidiaries and a decrease in employee benefits expenses from approximately HKD 26.2 million to HKD 16.1 million[45] Tax and Government Subsidies - The income tax expense for the year was HKD (373,000), compared to HKD 2,409,000 in 2022, indicating a tax credit in 2023[28] - Government subsidies received were HKD 41,000 in 2023, a decrease of 96.1% from HKD 1,058,000 in 2022[24] - Income tax credit was approximately HKD 400,000 in 2023 compared to an income tax expense of HKD 2.4 million in 2022[48] - The potential tax risk from Cambodian tax authorities is estimated at approximately USD 200,000 (around HKD 1.6 million)[40] Strategic Focus and Future Plans - The company continues to focus on its core business of providing apparel supply chain services to global brands, with no specific new product or market expansion strategies mentioned in the report[9] - The group plans to enhance product innovation and improve operational efficiency to shorten product delivery times in 2024[70] - The company’s management plans to continue implementing cost-saving measures as part of its strategy[42] - The group aims to simplify its organizational structure and operational processes to save costs[70] Compliance and Governance - The company has not adopted any new accounting standards that would have a significant impact on the financial statements for the current or future periods[15] - The company has adopted a code of conduct for securities trading in compliance with the listing rules[73] - The group acknowledges the importance of compliance with corporate governance codes and is considering appointing an independent CEO[75] Shareholder Information - The company did not declare any dividends for the years ended December 31, 2023, and 2022[35] - The annual general meeting is scheduled for May 24, 2024[77] - The annual report for the year ending December 31, 2023, will be sent to shareholders around April 27, 2024[79]