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之內容概不負責， 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 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 CEC INTERNATIONAL HOLDINGS LIMITED CEC 國 際 控 股 有 限 公 司 * （於百慕達註冊成立之有限公司） （股份代號： 759） 截至2023年10月31日止6個月中期業績公佈 CEC International Holdings Limited（CEC國際控股有限公司）（「本公司」）之董事（「董 事」）會（「董事會」）謹此公佈，本公司及其附屬公司（統稱「本集團」）截至2023年10 月31日止6個月之未經審核綜合業績如下： 簡明綜合收益表 截至10月31日止6個月 2023年 2022年 附註 千港元 千港元 （未經審核） （未經審核） 收益 2 750,947 888,738 銷售成本 (448,593) (563,444) 毛利 302,354 325,294 其他收入 3 – 19,127 其他收益淨額 223 – 銷售及分銷費用 (234,413) (23 ...

Financial Performance - Revenue decreased by 15.8% to HKD 1,692,403,000 (2022: HKD 2,008,967,000) [18] - Annual profit increased by 24.3% to HKD 49,565,000 (2022: HKD 39,884,000) [18] - Basic earnings per share were HKD 0.0744 (2022: HKD 0.0599) [18] - The group recorded consolidated revenue of HKD 1,692,403,000 for the fiscal year 2022/23, a decrease of 15.8% compared to HKD 2,008,967,000 in 2021/22 [22] - The group achieved a profit attributable to equity holders of HKD 49,565,000, an increase of 24.3% from HKD 39,884,000 in the previous year, but a decrease of 22.9% to HKD 30,733,000 when excluding government subsidies [22] Operating Activities - Net cash inflow from operating activities was HKD 211,497,000 (2022: HKD 307,108,000) [18] - Net cash inflow from operating activities was HKD 211,497,000, down 31.1% from HKD 307,108,000 in 2022 [38] Profitability and Margins - Gross profit margin increased by 4 percentage points to 38.0% (2022: 34.0%) [18] - The retail segment's gross profit was HKD 639,772,000, down 5.4% from HKD 676,619,000, with a gross margin improvement to 39.3% from 35.2% [24] Assets and Liabilities - Total assets amounted to HKD 917,091,000 (2022: HKD 919,516,000) [12] - Total liabilities decreased to HKD 383,548,000 (2022: HKD 419,863,000) [12] - Current ratio improved to 1.13 (2022: 0.98) [10] - Interest coverage ratio increased to 136 (2022: 33) [10] - Cash and cash equivalents as of April 30, 2023, amounted to HKD 107,462,000, up from HKD 100,171,000 in 2022, representing a 1.3% increase [33] - Total bank borrowings decreased by 80.9% to HKD 3,517,000 from HKD 18,386,000 in 2022 [33] - The debt-to-equity ratio improved to 0.01 from 0.04 in the previous year, indicating a stronger capital structure [33] Retail Segment Performance - Retail business segment revenue was HKD 1,628,415,000, down 15.3% from HKD 1,922,315,000 in the previous year, accounting for approximately 96.2% of total revenue [24] - The total inventory value for the retail business as of April 30, 2023, was HKD 127,399,000, an increase of 24.6% from HKD 102,212,000 the previous year [25] - The total number of retail stores decreased to 166 from 172, with 6 new openings and 12 closures during the year [28] Employee and Management - The company employed approximately 1,400 staff as of April 30, 2023, a decrease from 1,500 in 2022 [44] - The average monthly employee turnover rate for the reporting period was 4.6%, slightly up from 4.1% in 2022, representing an increase of approximately 0.5 percentage points [198] - The group employed a total of 837 employees in its retail business as of April 30, 2023, a decrease from 855 employees in 2022 [196] - The group has implemented guidelines for health and safety, including regular training to enhance employee safety awareness [199] Corporate Governance - The board consists of three executive directors and three independent non-executive directors, with independent directors making up half of the board [116] - The company has adopted the corporate governance code and has complied with its principles, with one exception regarding the separation of roles between the chairman and CEO [112] - The company has established a remuneration committee to oversee the compensation policies for directors and senior management, ensuring fairness and consistency [129] - The audit committee was established in September 1999 to oversee the financial reporting system and internal controls of the group [140] Sustainability and Environmental Initiatives - The company has been actively involved in sustainability initiatives since the establishment of 759 Ahsin House in 2010, focusing on providing quality and affordable essential goods [163] - The board has integrated environmental, social, and governance (ESG) issues into its regular meetings to monitor sustainability progress and stakeholder engagement [167] - The company recognizes the increasing risks and opportunities associated with climate change, including extreme weather impacts on operations and supply chain disruptions [168] - The company is committed to sustainable development and aims to incorporate sustainability initiatives into daily operations, fostering a culture of environmental and social responsibility among employees [163] Shareholder Communication - The company adopted a shareholder communication policy to ensure shareholders receive comprehensive and understandable information [154] - The company encourages shareholder participation in annual general meetings to facilitate communication with the board [154] - The board encourages shareholder feedback and allows shareholders to raise questions through the company secretary at any time [158] Risk Management - The company has established a risk management system that includes monitoring ESG-related risks and compliance measures [168] - The audit committee expressed satisfaction with PwC's independence, objectivity, qualifications, and audit procedures [143] - No significant issues were found in risk management and internal control during the year ended April 30, 2023 [146]

Financial Performance - The company reported revenue of HKD 888,738,000 for the six months ended October 31, 2022, a decrease of 8.5% compared to HKD 971,637,000 in the same period of 2021[7]. - Gross profit for the period was HKD 325,294,000, down from HKD 336,918,000, reflecting a gross margin of approximately 36.6%[7]. - Operating profit increased to HKD 45,700,000, representing a 49.1% increase from HKD 30,658,000 in the previous year[7]. - Net profit attributable to equity holders was HKD 33,794,000, up 79.9% from HKD 18,798,000 year-on-year[7]. - Basic and diluted earnings per share rose to HKD 5.07, compared to HKD 2.82 in the prior year, marking an increase of 79.4%[7]. - The total comprehensive income for the period was HKD 15,698,000, compared to HKD 21,932,000 in the previous year, showing a decline of 28.5%[13]. - Profit attributable to equity holders for the same period was HKD 33,794,000, representing a 79.8% increase from HKD 18,798,000 in the previous year; excluding government subsidies, profit decreased by 20.5%[38]. Assets and Liabilities - Total assets as of October 31, 2022, amounted to HKD 936,592,000, an increase from HKD 919,516,000 as of April 30, 2022[12]. - Total liabilities rose to HKD 427,903,000, compared to HKD 419,863,000, marking a 1.0% increase[24]. - The total equity increased to HKD 508,689,000 from HKD 499,653,000, reflecting a solid financial position[12]. - The company’s total equity as of October 31, 2022, was HKD 508,689,000, an increase from HKD 484,304,000 at the same time last year, representing a growth of 5.0%[13]. Cash Flow and Liquidity - The company’s cash and cash equivalents stood at HKD 87,184,000, up from HKD 78,731,000, indicating improved liquidity[12]. - Cash generated from operating activities was HKD 129,818,000, up from HKD 115,670,000 in the previous year, indicating a growth of 12.2%[15]. - The net cash generated from operating activities after tax payments was HKD 107,912,000, slightly down from HKD 115,665,000 in 2021, reflecting a decrease of 6.1%[15]. - The group’s net cash inflow for the six months ended October 31, 2022, was HKD 9,432,000, compared to HKD 3,543,000 in the previous year[52]. - The operating cash inflow was HKD 107,912,000, down 6.7% from HKD 115,665,000 year-on-year[54]. - The group’s current ratio improved to 1.02 from 0.98, indicating enhanced liquidity[54]. Business Segments - Retail business revenue decreased to HKD 851,063,000, down 8.1% from HKD 926,094,000 in the same period last year[23]. - Operating profit for the retail segment increased to HKD 51,814,000, up 18.5% from HKD 43,810,000 in the previous year[23]. - The electronic components manufacturing segment reported revenue of HKD 37,123,000, a decrease of 17.9% compared to HKD 45,197,000 in the previous year[45]. - The segment's gross profit was HKD 4,586,000, down 9.2% from HKD 5,052,000, with a gross margin increase to 12.4% from 11.2%[45]. Government Support and Subsidies - The group received government subsidies related to COVID-19 amounting to HKD 18,842,000, which was not present in the previous year[27]. - The group received approximately HKD 18,842,000 in support funds from the anti-epidemic fund and the "Employment Support Scheme" during the review period[43]. Operational Strategy - The company plans to continue focusing on market expansion and new product development to drive future growth[6]. - The company plans to enhance sourcing efforts by sending procurement teams to participate in global food and consumer goods exhibitions to find quality products[59]. - The company is focused on maintaining its current scale and improving operational efficiency and service levels to enhance brand value[59]. - The company has no immediate plans for business expansion or large-scale investments due to the uncertain market environment[59]. - Financial resources will be accumulated to seize future opportunities as they arise[59]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with its applicable provisions, except for the deviation regarding the roles of the Chairman and CEO being held by the same person since 2018[67]. - The Audit Committee consists of three independent non-executive directors and has held regular meetings, reviewing accounting principles and internal controls for the six months ending October 31, 2022[68]. - The Remuneration Committee is responsible for establishing a formal and transparent procedure for determining the remuneration policy for all directors and senior management, with four members including one executive director[69]. - The Nomination Committee has been established to review the board's structure and diversity, and it currently has four members, including one executive director[70]. - The company has adopted the standard code of conduct for securities transactions by directors and confirmed compliance for the six months ending October 31, 2022[71]. Shareholding Structure - As of October 31, 2022, the company’s major shareholder, Ka Yan China Development (Holding) Company Limited, holds 442,295,660 shares, representing 66.39% of the issued share capital[63]. - The total equity held by major shareholder Lo Ching Yi, including family and trust interests, amounts to 472,250,848 shares, or 70.89% of the issued share capital[63]. - The company’s board members and senior executives hold a total of 4,194,611 shares, representing 0.63% of the issued share capital[60]. - No shares were repurchased or sold by the company or its subsidiaries in the six months ending October 31, 2022[66].

Financial Performance - CEC International Holdings Limited reported revenue of HKD 888,738,000 for the six months ended October 31, 2022, a decrease of 8.5% compared to HKD 971,637,000 in the same period of 2021[2] - The gross profit for the same period was HKD 325,294,000, down from HKD 336,918,000, resulting in a gross margin of approximately 36.6%[2] - Operating profit increased to HKD 45,700,000, representing a growth of 49.1% from HKD 30,658,000 in the previous year[2] - Net profit attributable to equity holders was HKD 33,794,000, up 79.8% from HKD 18,798,000 in the prior period[2] - Basic and diluted earnings per share rose to HKD 5.07, compared to HKD 2.82 in the same period last year[2] - The company reported a total comprehensive income of HKD 15,698,000 for the period, down from HKD 21,932,000 in the previous year[3] - The profit attributable to equity holders for the same period was HKD 33,794,000, representing a 79.8% increase from HKD 18,798,000 in 2021; excluding government subsidies, the profit decreased by 20.5%[32] Assets and Liabilities - Total assets as of October 31, 2022, were HKD 936,592,000, an increase from HKD 919,516,000 as of April 30, 2022[5] - Total liabilities increased slightly to HKD 427,903,000 from HKD 419,863,000, indicating a stable financial position[5] - The total liabilities increased to HKD 427,903,000 from HKD 419,863,000 as of April 30, 2022[17] - The group's long-term lease liabilities increased to HKD 102,946,000 as of October 31, 2022, from HKD 85,559,000 on April 30, 2022[46] - The group recorded a net current asset value of HKD 5,426,000 as of October 31, 2022, improving from a net current liability situation[50] Revenue Segments - CEC International Holdings Limited has three reportable segments: retail business, electronic component manufacturing, and investment property holdings[14] - The company reported a decrease in external sales in the retail segment to HKD 851,063,000 from HKD 926,094,000, a decline of 8.1%[17] - Retail business revenue for the six months was HKD 851,063,000, down 8.1% from HKD 926,094,000 in 2021, accounting for approximately 96% of total revenue[33] - The electronic components manufacturing segment reported revenue of HKD 37,123,000, a decrease of 17.9% from HKD 45,197,000 in 2021, with a gross profit of HKD 4,586,000, down 9.2%[38] Operational Efficiency - The group maintained operational cost control, with sales and distribution expenses at HKD 236,848,000, slightly down from HKD 238,650,000 in 2021[36] - The group achieved a profit of HKD 51,814,000 in the retail segment, an increase of 18% compared to HKD 43,810,000 in 2021[36] - The company received government subsidies related to COVID-19 amounting to HKD 18,842,000 during the period[20] - The group closed 9 stores and opened 3 new ones, resulting in a total of 166 stores as of October 31, 2022, down from 172 stores[35] Cash Flow - The group's net cash inflow for the six months ended October 31, 2022, was HKD 9,432,000, compared to HKD 3,543,000 in 2021[48] - Operating cash inflow for the period was HKD 107,912,000, a decrease of 6.7% from HKD 115,665,000 in 2021[50] Future Outlook - The group anticipates a continued low local consumption atmosphere in the near future, impacting retail performance[56] - The group plans to maintain its current scale and improve operational efficiency without major expansion or investment plans due to market uncertainties[56] Governance and Compliance - The company has adopted the standard code of conduct for directors' securities transactions as per the listing rules, confirming compliance for the six months ending October 31, 2022[63] - The audit committee consists of three independent non-executive directors, with regular meetings held at least twice per fiscal year to review accounting principles and internal controls[61] - The current structure of having one person serve as both the chairman and CEO is believed to provide strong and effective leadership for the company[60] Reporting - The interim report for the six months ending October 31, 2022, will be sent to shareholders by January 31, 2023, and published on the company's website[64]

Financial Performance - Total revenue for the fiscal year ending April 30, 2022, was HKD 2,008.97 million, a decrease from HKD 2,103.53 million in 2021[10] - Gross profit margin improved to 34.0% in 2022, up from 30.1% in 2021[10] - Net profit for the year was HKD 39.88 million, compared to HKD 32.32 million in the previous year, reflecting a growth of 23.9%[10] - Total assets decreased to HKD 919.52 million in 2022 from HKD 983.42 million in 2021[10] - The company's earnings per share increased to HKD 5.99 from HKD 4.85, representing a growth of 23.5%[10] - Revenue decreased by 4.5% to HKD 2,008,967,000 (2021: HKD 2,103,529,000) [14] - Annual profit increased by 23.4% to HKD 39,884,000 (2021: HKD 32,324,000) [14] - Basic earnings per share rose to HKD 0.0599 (2021: HKD 0.0485) [14] - Net cash inflow from operating activities was HKD 307,108,000 (2021: HKD 355,915,000) [14] - Cash flow from operating activities was HKD 307,108,000 in 2022, down from HKD 355,915,000 in 2021[38] Retail Business Performance - Retail business segment revenue was HKD 1,922,315,000 (2021: HKD 2,025,544,000), a decline of approximately 5.1% [23] - Retail segment gross profit was HKD 676,619,000 (2021: HKD 664,874,000) with a gross profit margin of 35.2% (2021: 32.8%) [23] - Retail segment sales increased by 3.6% to HKD 478,245,000 in 2022, compared to HKD 461,350,000 in 2021[27] - Operating profit for the retail segment decreased by 36.2% to HKD 98,202,000 in 2022, down from HKD 153,891,000 in 2021[27] - Total inventory value for retail business was HKD 102,212,000 (2021: HKD 174,898,000), a decrease of 42% [24] Financial Ratios and Health - The current ratio improved to 0.98 in 2022 from 0.87 in 2021, indicating better short-term financial health[10] - The interest coverage ratio significantly increased to 33.66 from 15.94, showing improved ability to meet interest obligations[10] - The debt-to-equity ratio decreased to 0.04 in 2022 from 0.28 in 2021, indicating a stronger equity position[10] - Total bank borrowings decreased by 85.8% to HKD 18,386,000 as of April 30, 2022, from HKD 129,760,000 in 2021[32] - Financial expenses reduced by 22% to HKD 13,543,000 in 2022, down from HKD 17,316,000 in 2021[34] Corporate Governance and Shareholder Relations - The company aims to maintain steady long-term investment returns for shareholders while improving corporate governance through capital market oversight[3] - Proposed final dividend of HKD 0.01 per share (2021: HKD 0.009) pending shareholder approval [15] - The company proposed a final dividend of HKD 0.10 per share for the year ending April 30, 2022, compared to HKD 0.09 per share in 2021, pending shareholder approval[79] - As of April 30, 2022, the company had approximately HKD 131,338,000 in paid-up capital and HKD 9,286,000 in retained earnings available for distribution to shareholders[82] - The company has not repurchased any of its listed shares during the year ending April 30, 2022[84] Market and Strategic Adaptation - The company continues to adapt its strategies in response to the fluctuating market environment due to the pandemic [22] - The company anticipates facing more unknown challenges in the retail sector due to ongoing global uncertainties, including the COVID-19 pandemic and international political tensions[45] - The management believes that the local market has adapted to living under the pandemic, and they expect a return to normalcy as the pandemic subsides[46] - The company plans to focus on finding suitable retail locations in commercial areas to expand its store network, as opportunities in residential areas are limited[46] - The company will adjust its product mix to refocus on snacks and leisure foods in anticipation of the post-pandemic era[46] Sustainability and Environmental Impact - The company is committed to sustainable business development and long-term returns for shareholders, considering overall financial status and future operational needs when declaring dividends[159] - The total amount of non-hazardous waste generated during the reporting period was approximately 65 tons, a decrease from 73 tons in 2021, with a density of 0.0339 tons per million HKD revenue compared to 0.0359 tons in 2021[176] - The total energy consumption during the reporting period was 21,441,000 kWh, an increase from 20,864,000 kWh in 2021, with energy consumption density rising to 11,154 kWh per million HKD revenue from 10,300 kWh in 2021[182] - The company has committed to maintaining indoor temperatures between 24 to 26 degrees Celsius to reduce electricity consumption[181] - The company has eliminated all pre-Euro 5 trucks from its fleet to reduce emissions and has installed GPS systems in all delivery vehicles to enhance operational efficiency[183] Employee and Workforce Management - The group employed approximately 1,500 staff as of April 30, 2022, down from 1,600 in 2021[44] - The average monthly employee turnover rate increased to 4.1%, up from 3.3% in 2021, representing an increase of approximately 0.8 percentage points[200] - The company employed a total of 855 employees as of April 30, 2022, down from 888 employees in 2021[196] - Female employees accounted for 68.2% of the workforce, while male employees made up 31.8%[196] - The company emphasizes equal opportunity employment and regularly reviews compensation to attract and retain employees[78] Board and Management Structure - The company’s board of directors includes key executives such as the Chairperson and Managing Director, who holds 4,194,611 shares, representing 0.63% of the issued share capital[94] - The company’s significant shareholder, Lin Guozhong, holds 442,295,660 shares, accounting for 66.39% of the issued share capital[94] - The board consists of 3 executive directors and 3 independent non-executive directors, with independent directors making up half of the board[122] - The board meets at least 4 times a year to review the group's financial and operational performance[126] - The company has adopted the corporate governance code and has complied with its principles, with the exception of the separation of roles between the Chairman and CEO[118]

Financial Performance - For the fiscal year ended April 30, 2022, CEC International Holdings Limited reported total revenue of HKD 2,008,967,000, a decrease of 4.5% from HKD 2,103,529,000 in 2021[1] - The gross profit for the same period was HKD 682,968,000, representing an increase of 7.8% compared to HKD 633,512,000 in the previous year[1] - Operating profit increased slightly to HKD 65,533,000, up from HKD 64,328,000, reflecting a growth of 1.9%[1] - The net profit attributable to equity holders of the company was HKD 39,884,000, a significant increase of 23.5% from HKD 32,324,000 in 2021[1] - Basic and diluted earnings per share rose to HKD 5.99, compared to HKD 4.85 in the previous year, marking a growth of 23.5%[1] - Total annual profit for 2022 was HKD 39,884 thousand, an increase of 23.5% compared to HKD 32,324 thousand in 2021[12] - The group's profit attributable to shareholders was HKD 39,884,000, representing a growth of about 23% compared to HKD 32,324,000 in 2021[32] Assets and Liabilities - Total assets as of April 30, 2022, were HKD 919,516,000, a decrease from HKD 983,418,000 in 2021[4] - Total liabilities decreased to HKD 419,863,000 from HKD 515,050,000, indicating a reduction of 18.4%[4] - The total equity attributable to equity holders increased to HKD 499,653,000, up from HKD 468,368,000, reflecting a growth of 6.1%[4] - Total assets decreased to HKD 919,516 thousand in 2022 from HKD 983,418 thousand in 2021[14] - Total liabilities decreased to HKD 419,863 thousand in 2022 from HKD 515,050 thousand in 2021[14] - The group’s accounts payable decreased to HKD 95,695,000 in 2022 from HKD 106,701,000 in 2021[28] Segment Performance - CEC International Holdings Limited has three reportable segments: retail business, electronic component manufacturing, and investment property holdings, which are regularly reviewed by management for performance assessment[11] - Retail business revenue for 2022 was HKD 1,922,315 thousand, a decrease of 5.1% from HKD 2,025,544 thousand in 2021[12] - Operating profit for the retail business in 2022 was HKD 98,202 thousand, down 36.2% from HKD 153,891 thousand in 2021[12] - The electronic components manufacturing segment reported revenue of HKD 85,735,000, an increase of 11.2% from HKD 77,131,000 in 2021[41] - The group’s gross profit for the retail segment was HKD 676,619,000, with a gross margin of 35.2%, an improvement from 32.8% in the previous year[34] Cash Flow and Expenditures - Capital expenditure for 2022 was HKD 18,054 thousand, an increase of 33.5% from HKD 13,487 thousand in 2021[12] - The group’s bank balance and cash as of April 30, 2022, was HKD 100,171,000, slightly down from HKD 101,752,000 in 2021[43] - Total borrowings decreased significantly by 85.8% to HKD 18,386,000 from HKD 129,760,000 in 2021[43] - The net cash inflow for the year was HKD 8,219,000, compared to HKD 7,019,000 in 2021[49] - Current liabilities net value dropped to HKD 5,102,000, down from HKD 53,408,000 in 2021, reflecting improved liquidity[51] Operational Insights - The company received government subsidies of HKD 186 thousand in 2022, compared to HKD 39,773 thousand in 2021 under the COVID-19 relief programs[17] - The net loss from fair value of investment properties was HKD 962 thousand in 2022, an improvement from a loss of HKD 1,426 thousand in 2021[18] - Total expenses for sales, distribution, and administrative costs decreased to HKD 1,945,824 thousand in 2022 from HKD 2,078,375 thousand in 2021[20] - Interest expenses on bank loans decreased to HKD 2,941 thousand in 2022 from HKD 5,921 thousand in 2021[20] - Retail segment sales and distribution costs increased by 3.6% to HKD 478,245,000 in 2022, compared to HKD 461,350,000 in 2021[38] Corporate Governance and Future Outlook - The board believes that good corporate governance is essential for maintaining investor confidence and has adopted the corporate governance code[59] - The management anticipates that the retail business will face more unknown challenges due to global inflation and extreme currency fluctuations[55] - The company plans to focus on finding suitable retail locations in commercial areas as the economy recovers from the pandemic[57] - The company did not repurchase any of its listed shares during the fiscal year ending April 30, 2022[58] - The company’s auditor confirmed that the financial statements for the year ending April 30, 2022, are consistent with the audited financial reports[64] Employee and Store Metrics - The group employed approximately 1,500 employees as of April 30, 2022, a decrease from 1,600 in 2021[54] - The total number of stores decreased to 172 as of April 30, 2022, down from 174 in 2021, with 9 new openings and 11 closures[37] - Membership card usage remained stable, with approximately 550,000 cards used weekly and 1.4 million cards used every five weeks[40] Upcoming Events - The annual general meeting is scheduled for September 29, 2022[66] - The company will publish its annual report by the end of August 2022, which will include all required information as per listing rules[67]

Financial Performance - CEC International Holdings Limited reported revenue of HKD 971,637,000 for the six months ended October 31, 2021, a decrease of 10.3% from HKD 1,083,184,000 in the same period of 2020[6]. - The gross profit for the same period was HKD 336,918,000, representing an increase of 8.7% compared to HKD 310,111,000 in the previous year[6]. - Operating profit decreased to HKD 30,658,000, down 9.4% from HKD 33,821,000 year-on-year[6]. - Net profit attributable to equity holders of the company was HKD 18,798,000, an increase of 25.5% from HKD 14,993,000 in the prior period[6]. - Basic and diluted earnings per share increased to HKD 2.82 cents, compared to HKD 2.25 cents in the same period last year[6]. - Total comprehensive income for the period was HKD 21,932,000, down from HKD 28,539,000 in the previous year[8]. - The company reported a net finance cost of HKD 5,484,000, an improvement from HKD 9,970,000 in the same period of 2020[6]. - Other income for the period was HKD 1,201,000, compared to HKD 41,163,000 in the previous year, indicating a significant decrease[6]. - The company experienced a foreign exchange gain of HKD 3,193,000 during the period, compared to a gain of HKD 13,581,000 in the previous year[8]. Assets and Liabilities - Total assets as of October 31, 2021, amounted to HKD 956,226,000, a decrease from HKD 983,418,000 as of April 30, 2021[10]. - Total equity increased to HKD 484,304,000 from HKD 468,368,000, reflecting a growth of approximately 3%[10]. - Current liabilities totaled HKD 369,374,000, down from HKD 423,899,000, indicating a reduction of about 13%[10]. - Non-current liabilities rose to HKD 102,548,000, compared to HKD 91,151,000, representing an increase of approximately 12%[10]. - The company’s total liabilities decreased to HKD 471,922,000 from HKD 515,050,000, indicating a reduction of about 8%[10]. - The total bank financing as of October 31, 2021, was HKD 400,221,000, down from HKD 503,300,000 as of April 30, 2021, indicating a reduction of 20.5%[18]. - The group's total borrowings amounted to HKD 95,232,000, a decrease of 26.5% from HKD 129,760,000 as of April 30, 2021[16]. Cash Flow - As of October 31, 2021, the group's cash generated from operations was HKD 115,670,000, a decrease of 45.5% compared to HKD 213,249,000 for the same period in 2020[14]. - The net cash used in investing activities was HKD (6,665,000), compared to HKD (6,045,000) for the same period in 2020, reflecting a 10.2% increase in cash outflow[14]. - The group’s net cash from financing activities was HKD (105,457,000), a significant decrease from HKD (219,188,000) in the previous period, indicating improved cash management[14]. - The group’s cash flow forecast covers at least 12 months from October 31, 2021, relying on operational cash flow and available bank financing[19]. Business Segments - Retail business revenue for the six months ended October 31, 2021, was HKD 926,094, a decrease of 11.2% from HKD 1,043,044 in the same period of 2020[27]. - Electronic components manufacturing reported a loss of HKD 6,608 for the six months ended October 31, 2021, compared to a loss of HKD 54,278 in the previous year[27]. - The group has three reporting segments: retail business, electronic components manufacturing, and investment properties, with performance evaluated based on internal reports[26]. - Revenue from the electronic components manufacturing business increased by 14.2% to HKD 45,197,000, with a gross profit margin of 11.2% compared to a gross loss margin of -56.3% in 2020[50]. Market and Operational Strategy - CEC International Holdings Limited continues to focus on enhancing operational efficiency and exploring new market opportunities for future growth[5]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[11]. - The management anticipates ongoing volatility in the retail market due to global supply chain disruptions, with a focus on improving operational capabilities in the short term[64]. - The company plans to leverage its supplier network across over 60 countries to mitigate supply chain risks and ensure stable product availability[64]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, with some deviations noted regarding the roles of the chairman and CEO[75]. - Following the resignation of independent non-executive director Mr. Qu on September 29, 2021, the company has only two independent non-executive directors, which is below the minimum requirement[77]. - The audit committee currently consists of two independent non-executive directors, with regular meetings held at least twice a year[78]. - The company has confirmed compliance with the standard code of conduct for securities transactions by all directors during the six months ending October 31, 2021[81]. Shareholder Information - The company has a significant shareholder, Lin Guozhong, holding 66.39% of the shares, which indicates a strong control over the company[65]. - As of October 31, 2021, major shareholder Ms. Luo Jingyi holds a total of 472,250,848 shares, representing 70.89% of the issued share capital[71]. - Ka Yan China Investments Limited and its subsidiary Ka Yan China Development (Holding) Company Limited collectively hold 442,295,660 shares, accounting for 66.39% of the issued share capital[72].

| --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | CEC-COILS。 759 阿信屋。 CEC 國 際 控 股 有 限 公 司 CEC INTERNATIONAL HOLDINGS LIMITED (Incorporated in Bernuda with limited liability) | | | (於百慕達注册成立之有限公司) (Stock Code 股 份 代 號 : 759) ＡＮＮＵＡＬ ＲＥＰＯＲＴ 年 報 | 公司簡介 CEC國際控股有限公司（簡稱：CEC國際）為一家奉行「循序、堅定、敬業」經營理念的中小型企 業，業務包括設計以至生產各類型電子線圈及本地零售業務。 電子線圈業務始創於1979年，經過多年來不斷循序發展，至今已成為較具規模的電子線圈製造 商，產品市場來自包括電訊及資訊科技 ...

Financial Performance - Revenue for the six months ended October 31, 2020, was HKD 1,083,184,000, an increase from HKD 903,841,000 in the same period of 2019, representing a growth of approximately 19.9%[6] - Gross profit for the period was HKD 310,111,000, slightly up from HKD 309,125,000 year-on-year[6] - Operating profit increased to HKD 33,821,000, compared to HKD 21,312,000 in the previous year, marking a growth of approximately 58.7%[6] - Profit attributable to equity holders for the period was HKD 14,993,000, significantly higher than HKD 5,070,000 in the same period last year, reflecting an increase of approximately 195.5%[6] - Basic and diluted earnings per share were HKD 2.25, up from HKD 0.76 in the previous year, indicating a growth of approximately 196.1%[6] - The company reported a total comprehensive income of HKD 28,539,000 for the period, compared to a loss of HKD 10,325,000 in the same period last year[8] - The company reported a net profit of HKD 5,070,000 for the period, reflecting a significant increase compared to previous periods[11] - The company reported a total profit for the period of HKD 14,993,000, up from HKD 5,070,000 in the same period last year, reflecting a growth of 195.5%[43] Assets and Liabilities - Total assets as of October 31, 2020, were HKD 1,026,042,000, down from HKD 1,135,006,000 as of April 30, 2020[10] - Total liabilities were HKD 588,549,000, a decrease from HKD 722,721,000 as of April 30, 2020[10] - Total equity increased to HKD 437,493,000 from HKD 412,285,000, reflecting a growth of approximately 6.1%[10] - As of October 31, 2020, the group's current liabilities exceeded current assets by HKD 106,146,000, down from HKD 163,488,000 on April 30, 2020[16] - Total borrowings amounted to HKD 160,488,000 as of October 31, 2020, a decrease from HKD 287,134,000 on April 30, 2020[16] Cash Flow and Financing - Cash generated from operating activities was HKD 213,144,000, a notable increase from HKD 135,034,000 in the previous year[14] - The company recorded a cash outflow from investing activities of HKD 6,645,000, primarily due to the purchase of property, plant, and equipment[14] - Financing activities resulted in a net cash outflow of HKD 219,188,000, influenced by loan repayments and dividend payments[14] - As of October 31, 2020, the company had cash and cash equivalents of HKD 58,839,000, compared to HKD 52,593,000 at the end of the previous period[14] - The group recorded a net cash outflow of HKD 12,089,000 for the six months ended October 31, 2020, compared to a cash inflow of HKD 14,854,000 in 2019[64] - Operating cash inflow for the period was HKD 213,144,000, a substantial increase of approximately 58% from HKD 135,034,000 in 2019[64] Business Segments - The group has three reporting segments: retail business, electronic component manufacturing, and investment properties[29] - Retail business revenue for the six months ended October 31, 2020, was HKD 1,043,044,000, an increase from HKD 863,841,000 in the same period of 2019, representing a growth of 20.8%[30] - Operating profit for the retail segment was HKD 96,332,000, compared to HKD 20,885,000 in the previous year, indicating a significant increase of 360.5%[30] - The manufacturing business revenue for the period was HKD 39,576,000, maintaining a similar level compared to HKD 39,381,000 in 2019[57] - The manufacturing segment recorded a gross loss of HKD 22,264,000 due to a one-time inventory provision, compared to a gross profit of HKD 10,030,000 in 2019[57] Government Support and Employee Compensation - The company received government grants totaling HKD 41,163,000 due to the COVID-19 pandemic, including HKD 39,773,000 from the Hong Kong government's employment support scheme[34] - Employee compensation for frontline staff increased to HKD 82,867,000, a rise of 9.6% from HKD 75,625,000 in the previous year[55] - The company received approximately HKD 41,163,000 in government support funds, which were used to pay employee salaries[55] Strategic Plans and Management - The company plans to continue expanding its market presence and investing in new product development to drive future growth[5] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[11] - The management highlighted ongoing efforts in product development and potential acquisitions to enhance competitive positioning[11] - The company expects to maintain a positive outlook for the upcoming quarters, with a focus on operational efficiency and cost management[11] - The management aims to improve operational liquidity and reduce overall debt levels while increasing cash reserves for future opportunities[70] - The company is focused on cautious expansion, seeking suitable new store locations based on operational data[70] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, with some deviations noted, particularly regarding the roles of the chairman and CEO being held by the same individual[82][83] - The audit committee consists of three independent non-executive directors and has held regular meetings to review accounting principles and internal controls[84] - The remuneration committee is responsible for advising on the remuneration policies for all directors and senior management, with four members including one executive director[85] - The nomination committee has been established to review the board's structure and diversity, consisting of four members including one executive director[86] - The company has adopted the standard code of conduct for securities transactions by directors and confirmed compliance during the reporting period[87]

| --- | --- | |-------|--------------------------------------------------------------------------------------------------------------| | | | | | | | | CEC-COILS。 759 阿信屋。 CEC 國 際 控 股 有 限 公 司 CEC INTERNATIONAL HOLDINGS LIMITED | | | (Incorporated in Bernuda with limited liability) (於百彩達注册成立之有限公司) (5tock Code 股 份 代 號 : 759) | | | | | | ＡＮＮＵＡＬ ＲＥＰＯＲＴ 年 報 2019/2020 | 公司簡介 CEC國際控股有限公司（簡稱：CEC國際）為一家奉行「循序、堅定、敬業」經營理念的中小型企 業，業務包括設計以至生產各類型電子線圈及本地零售業務。 電子線圈業務始創於1979年，經過多年來不斷循序發展，至今已成為較具規模的電子線圈製造 商，產品市場來自包括電訊及資訊科技設備、數據網 ...