Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 74,056,000, a decrease of 4.0% compared to HKD 77,343,000 for the same period in 2022[7] - Gross profit for the same period was HKD 21,555,000, down 3.7% from HKD 22,380,000 in 2022[7] - The company reported a loss before tax of HKD 10,774,000, compared to a loss of HKD 5,824,000 in the previous year, indicating a significant increase in losses[7] - Basic and diluted loss per share for the period was HKD 3.13, compared to HKD 2.07 in the same period last year[9] - The company reported a net loss of HKD (10,780) thousand for the six months ended June 30, 2023, compared to a net loss of HKD (6,760) thousand for the same period in 2022, indicating increased losses[32] - The loss attributable to the company's owners for the same period was approximately HKD 10,246,000, compared to a loss of HKD 6,781,000 in 2022[54] - The group recorded a core business loss of HKD 7,800,000 for the period, compared to a loss of HKD 2,075,000 in 2022[54] Assets and Liabilities - Total assets decreased to HKD 104,439,000 as of June 30, 2023, from HKD 118,649,000 at the end of 2022, reflecting a decline of 11.97%[12] - Current assets dropped to HKD 99,755,000 from HKD 127,043,000, a decrease of 21.5%[12] - The company's total equity as of June 30, 2023, was HKD 92,552,000, down from HKD 106,539,000 at the end of 2022, a decrease of 13.1%[13] - The total liabilities as of June 30, 2023, were HKD 34,312 thousand, compared to HKD 51,099 thousand as of June 30, 2022, indicating a reduction in liabilities[35] - Cash and cash equivalents decreased to HKD 45,442 thousand as of June 30, 2023, from HKD 71,734 thousand as of June 30, 2022, marking a decline of approximately 37%[18] Revenue Breakdown - Revenue from toy products for the six months ended June 30, 2023, was HKD 72,524 thousand, down from HKD 75,709 thousand in the same period of 2022, a decrease of about 4.5%[29] - Revenue from novelty and decorative items decreased by approximately 6% to about HKD 1,532,000[56] - Revenue from toy products decreased by approximately 4% to about HKD 72,524,000, accounting for about 98% of total revenue[55] Expenses - Distribution costs increased by approximately 56% year-on-year to about HKD 1,253,000, attributed to rising inspection costs[58] - Administrative expenses rose by approximately 17% year-on-year to about HKD 33,825,000, mainly due to an increase in average full-time employees[58] - Financial expenses decreased by approximately 6% year-on-year to about HKD 359,000, due to reduced interest on lease liabilities[59] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2023, was HKD (18,245) thousand, compared to HKD 15,191 thousand for the same period in 2022, indicating a significant decline[18] - The company’s cash flow from investing activities was HKD (215) thousand for the six months ended June 30, 2023, compared to HKD 196 thousand in the same period of 2022, indicating a negative shift in investment cash flow[18] Corporate Governance - The company has adopted the corporate governance code as per the latest amendments to the listing rules, ensuring compliance with the relevant guidelines[77] - The roles of Chairman and CEO are currently shared among the board and the company secretary, following the resignation of the previous Chairman in December 2020 and the CEO in November 2022[80] - The audit committee consists of three independent non-executive directors, with Mr. Liu Shuren serving as the chairman, and has reviewed the unaudited interim results for the six months ending June 30, 2023[83] - The company is in the process of identifying suitable candidates for the roles of Chairman and CEO to enhance governance and operational effectiveness[80] - The company confirmed compliance with the standards for directors' securities transactions during the six months ending June 30, 2023[81] Shareholder Information - As of June 30, 2023, the company had a total of 326,923,607 issued shares, with major shareholders holding significant stakes: Mr. Zhai Jun holds 125,297,040 shares (38.33%) and Mr. Gao Xiaorui holds 84,717,041 shares (25.91%) [74] - Major shareholders include Star Fly Limited, which is wholly owned by Mr. Zhai Jun, and Fresh Choice Holdings Limited, which is primarily owned by Mr. Gao Xiaorui [79] Strategic Outlook - The company is exploring more quality merger and acquisition opportunities in the oil, gas, and sustainable energy infrastructure sectors[70] - The board is cautiously evaluating new investment opportunities to create long-term returns for shareholders amid a challenging operating environment[70]

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分內容 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。 PERFECTECH INTERNATIONAL HOLDINGS LIMITED 威 發 國 際 集 團 有 限 公 司* （於百慕達註冊成立之有限公司） （股份編號：00765） 截至二零二三年六月三十日止六個月之中期業績公告 中期業績 威發國際集團有限公司（「本公司」）董事（「董事」，各位「董事」）會（「董事會」）欣然宣佈本 公司及其附屬公司（「本集團」）於截至二零二三年六月三十日止六個月之未經審核簡明綜 合業績，以及二零二二年同期之比較數字。 簡明綜合損益及其他全面收益表 截至二零二三年六月三十日止六個月 （未經審核） 截至六月三十日止六個月 二零二三年 二零二二年 附註 港幣千元 港幣千元 收益 3 & 4 74,056 77,343 銷售成本 (52,501) (54,963) ...

Corporate Governance - The board of directors is responsible for formulating the group's strategy and business plans, collectively accountable for their success [8]. - The board reviewed the company's corporate governance policies and practices for the year ending December 31, 2022 [10]. - The nomination committee did not hold any meetings during the year ending December 31, 2022 [13]. - The company recognizes the benefits of a diverse board to enhance performance and considers various factors for board diversity, including gender, age, and professional experience [23]. - The remuneration policy for executive directors links part of their compensation to corporate and individual performance [26]. - Non-executive directors have the opportunity to receive stock options as part of their remuneration, subject to listing rules [27]. - The board has established a clear division of responsibilities between itself and management, ensuring effective governance [9]. - The nomination committee is responsible for assessing the independence of independent non-executive directors and reviewing nomination policies [14]. - The board's decision-making includes significant policies affecting the company and its overall strategy [10]. - The company aims to ensure long-term success through regular reviews of the board's succession planning [21]. - The board will review the internal control and risk management systems at least annually, with the latest review conducted for the year ending December 31, 2022 [55]. - The company has adopted a risk management system to manage business and operational risks, which includes effective communication of identified risks and corresponding remedial plans [52]. - The board of directors will consider the implementation of measurable diversity goals, including gender diversity, for both the board and employees [41]. Financial Performance - The company has no distributable reserves as of December 31, 2022, but has approximately HKD 118,895,000 in share premium account available for distribution as scrip dividends [68]. - The company’s external auditor is Tianjian International CPA Limited, and the fees paid for services during the review year are detailed in the report [56]. - The group reported a profit and the board is confident that declaring dividends will not affect normal operations, subject to compliance with Bermuda Company Law [123]. - The financial performance and outlook of the group are subject to various risks, including foreign exchange, credit, and liquidity risks [91]. - The group’s financial statements for the year ended December 31, 2022, were audited by Tianjian International CPA Limited [120]. - The company has not entered into any significant transactions or arrangements with directors that would benefit them from purchasing shares or bonds of the company [112]. - The company’s remuneration policy for directors is based on the group's operational performance and individual contributions [103]. - The company has not issued any stock options since the stock option plan expired on May 29, 2022 [99]. - Total equity attributable to owners decreased to HKD 91,748,000 in 2022 from HKD 101,551,000 in 2021, representing a decline of approximately 9.0% [154]. - Non-controlling interests decreased to HKD 14,791,000 in 2022 from HKD 16,659,000 in 2021, a decrease of about 11.2% [154]. - Total equity decreased to HKD 106,539,000 in 2022 from HKD 118,210,000 in 2021, reflecting a reduction of approximately 9.9% [154]. - Cash and cash equivalents increased to HKD 67,298,000 as of December 31, 2022, compared to HKD 61,383,000 at the beginning of the year, marking an increase of about 9.9% [181]. - The company reported a net cash outflow from financing activities of HKD (4,081,000) in 2022, compared to HKD (31,815,000) in 2021, indicating a significant reduction in financing outflows [181]. - The company's revenue for the year ended December 31, 2022, was HKD 177,458,000, a decrease of 4.0% from HKD 186,211,000 in 2021 [199]. - Gross profit increased to HKD 61,505,000, up 8.9% from HKD 56,888,000 in the previous year [199]. - The company reported a loss before tax of HKD 5,818,000, compared to a loss of HKD 3,385,000 in 2021, indicating a deterioration in performance [199]. - Total comprehensive loss for the year was HKD 9,486,000, significantly higher than HKD 2,765,000 in the prior year [199]. - Basic and diluted loss per share was HKD 2.09, compared to HKD 1.99 in the previous year, reflecting increased losses [199]. Assets and Liabilities - As of December 31, 2022, the group had inventory valued at HKD 14,916,000 [139]. - The trade receivables amounted to HKD 30,597,000, net of expected credit loss provision of HKD 0 [142]. - Non-current assets decreased to HKD 30,595,000 from HKD 36,237,000, indicating a reduction in long-term asset value [200]. - Current assets increased slightly to HKD 127,043,000 from HKD 120,808,000, showing a stable liquidity position [200]. - Trade and other payables rose to HKD 37,680,000 from HKD 24,353,000, suggesting increased operational liabilities [200]. Stakeholder Communication - The company emphasizes the importance of maintaining good relationships with suppliers, customers, employees, and other stakeholders to achieve medium to long-term goals [65]. - The company has committed to providing comprehensive and timely communication to stakeholders, including shareholders [58]. - The group reported that the top five suppliers accounted for approximately 32% of total purchase value, with the largest supplier representing about 9% [93]. Compliance and Regulations - The company has complied with all relevant laws and regulations that significantly impact its operations, including the Companies Ordinance and the Securities and Futures Ordinance [107]. - The company expects that the application of new Hong Kong Financial Reporting Standards will not have a significant impact on its consolidated financial statements in the foreseeable future [188]. - The management anticipates that the financial performance will improve with the implementation of new strategies and potential market expansions [186].

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分內容 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。 PERFECTECH INTERNATIONAL HOLDINGS LIMITED 威 發 國 際 集 團 有 限 公 司* （於百慕達註冊成立之有限公司） （股份編號：00765） 截至二零二二年十二月三十一日止年度 之全年業績公告 業績 威發國際集團有限公司（「本公司」）董事（各自及統稱「董事」）會（「董事會」）欣然宣佈，本 公司及其附屬公司（「本集團」）於截至二零二二年十二月三十一日止年度之經審核綜合業 績連同二零二一年之比較數字如下： 綜合損益及其他全面收益表 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 3及4 177,458 186,211 銷售成本 (115,953) (129,323) ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 77,343,000, a decrease of 5.4% from HKD 81,571,000 in the same period of 2021[8] - Gross profit for the same period was HKD 22,380,000, down from HKD 23,566,000, reflecting a gross margin of 28.9%[8] - The company reported a loss before tax of HKD 5,824,000, an improvement from a loss of HKD 8,193,000 in the previous year[8] - Total comprehensive loss for the period was HKD 8,280,000, compared to HKD 8,331,000 in the prior year[8] - Basic and diluted loss per share was HKD 2.07, an improvement from HKD 3.05 in the same period last year[10] - The loss attributable to the period for the six months ended June 30, 2022, was HKD (6,760,000), compared to a loss of HKD (9,431,000) for the same period in 2021, showing a reduction in losses[39] - The net loss before tax was HKD 6,781,000, compared to a loss of HKD 9,975,000 in 2021[62] - Basic and diluted loss per share was HKD 0.0207, compared to HKD 0.0306 in 2021[62] Assets and Liabilities - Non-current assets decreased to HKD 33,429,000 from HKD 36,237,000 as of December 31, 2021[12] - Current assets increased to HKD 125,253,000 from HKD 120,808,000 as of December 31, 2021[12] - Total assets as of June 30, 2022, amounted to HKD 158,682,000, compared to HKD 157,045,000 as of December 31, 2021[41] - The total liabilities as of June 30, 2022, were HKD 50,938,000, an increase from HKD 38,835,000 as of December 31, 2021[41] - Total equity decreased to HKD 107,744,000 from HKD 118,210,000 as of December 31, 2021[14] Cash Flow - For the six months ended June 30, 2022, the net cash generated from operating activities was HKD 15,191,000, compared to a net cash used of HKD (1,633,000) in the same period of 2021[19] - The cash flow from investing activities was HKD 196,000 for the six months ended June 30, 2022, a significant decrease from HKD 44,416,000 in the same period of 2021[19] - The cash flow used in financing activities was HKD (3,516,000) for the six months ended June 30, 2022, compared to HKD (30,865,000) in the same period of 2021, indicating a reduction in financing outflows[19] - The cash and cash equivalents increased to HKD 71,734,000 from HKD 61,383,000 as of December 31, 2021[12] - The cash and cash equivalents increased by HKD 11,871,000 during the six months ended June 30, 2022, compared to an increase of HKD 11,918,000 in the same period of 2021[19] Revenue Breakdown - Revenue from toy products was HKD 75,709,000 for the six months ended June 30, 2022, down from HKD 80,527,000 in the same period of 2021, representing a decline of 6.8%[33] - Revenue from Hong Kong increased significantly to HKD 9,605,000, up 142.5% from HKD 3,971,000 in 2021[51] - Revenue from Europe rose to HKD 6,883,000, an increase of 92.3% compared to HKD 3,580,000 in 2021[51] - Revenue from the United States decreased to HKD 9,116,000, down 14.8% from HKD 10,698,000 in 2021[51] - Revenue from Asia (excluding Hong Kong) was HKD 51,677,000, a decline of 17.8% from HKD 62,908,000 in 2021[51] - Revenue from novelty and decorative items increased by approximately 57% to about HKD 1,634,000, driven by increased sales in the US and Europe[84] Operational Efficiency - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[8] - Distribution costs decreased by approximately 27% to about HKD 804,000, due to strict cost control measures implemented by the company[87] - Administrative expenses decreased by approximately 5% to about HKD 29,039,000, mainly due to a reduction in employee costs[87] - Financial expenses decreased by approximately 29% to about HKD 382,000, attributed to a reduction in interest payable to subsidiary company directors[88] - The segment profit for toy products increased to approximately HKD 1,141,000, up from HKD 1,104,000 in the previous year, attributed to enhanced production cost control measures[83] Corporate Governance and Structure - The company did not declare an interim dividend for the six months ended June 30, 2022, consistent with 2021[61] - The company has adopted the corporate governance code as per the latest amendments in the listing rules[116] - The board consists of two executive directors and three independent non-executive directors[122] - The board is currently seeking a suitable candidate to assume the role of chairman[117] Employee and Shareholder Information - As of June 30, 2022, the company employed approximately 755 full-time employees, an increase from 690 employees as of December 31, 2021[98] - As of June 30, 2022, the total issued shares of the company were 326,923,607[113] - Mr. Zhai Jun holds 125,297,040 shares, representing 38.33% of the total issued shares[112] - Mr. Gao Xiaorui holds 119,297,041 shares, representing 36.49% of the total issued shares[113] - Mr. Hou Hanping holds 18,757,200 shares, representing 5.74% of the total issued shares[112] - Mr. Yan Guoliang holds 18,528,000 shares, representing 5.67% of the total issued shares[112] Strategic Decisions - The company decided not to proceed with the proposed acquisition of Sozak Oil and Gas JSC due to the lack of agreement on significant terms and the emergence of a third-party agreement[102] - The company will continue to seek quality acquisition opportunities in the oil and gas exploration and production sector, despite not advancing the proposed acquisition and strategic cooperation agreements[106] - The company has not entered into any financial instruments to hedge foreign currency risks as of June 30, 2022, and continues to monitor the trends of the Renminbi closely[99] Other Information - The company sold its wholly-owned subsidiary Perfect Skill Limited for approximately HKD 67.1 million, with major assets valued at HKD 30.47 million in leased land and buildings, and HKD 36.33 million in investment properties as of December 31, 2020[97] - As of June 30, 2022, there were no stock options granted, exercised, canceled, or lapsed under the stock option plan, with 32,692,360 shares available for issuance, representing about 10% of the issued shares[108]

Financial Performance - For the year ended December 31, 2021, the company's revenue increased by approximately 15% to about HKD 186,211,000, compared to HKD 162,041,000 in 2020[11] - The toy product segment's revenue rose by approximately 18% to about HKD 179,278,000, accounting for about 96% of total revenue[12] - The company recorded a loss attributable to owners of approximately HKD 6,520,000, an improvement from a loss of HKD 15,801,000 in 2020[11] - The revenue from the novelty and decorative products segment decreased by approximately 30% to about HKD 6,933,000, with a loss of HKD 3,060,000[13] - The gross profit for the toy product segment decreased to approximately HKD 14,513,000, down from HKD 17,358,000 in 2020, due to rising raw material and labor costs[12] Expenses and Costs - Distribution costs decreased by approximately 25% to about HKD 2,313,000, while administrative expenses increased by about 7% to approximately HKD 55,719,000[14] - Financial expenses decreased by approximately 65% to about HKD 924,000, due to reduced interest on amounts payable to subsidiary company directors[17] Assets and Liabilities - As of December 31, 2021, the company's cash and bank balances were approximately HKD 61,383,000, compared to HKD 59,467,000 in 2020[18] - The net asset value per share as of December 31, 2021, was approximately HKD 0.31, down from HKD 0.33 in 2020[19] - As of December 31, 2021, the group held financial assets at fair value through profit or loss amounting to approximately HKD 10,516,000, a decrease from HKD 13,391,000 as of December 31, 2020[21] - The group incurred a loss of approximately HKD 531,000 from the sale of financial assets at fair value through profit or loss for the year ended December 31, 2021, compared to a gain of HKD 37,000 in 2020[21] Corporate Governance - The company has adopted the latest corporate governance code as per the listing rules, enhancing transparency and governance standards[50] - The board is responsible for setting the company's long-term strategy and evaluating management policies' effectiveness[54] - The company emphasizes the importance of effective communication among directors, especially during the pandemic, to ensure informed decision-making[52] - The company has committed to maintaining good corporate governance practices to foster trust with employees, business partners, shareholders, and investors[50] Board Structure and Responsibilities - The board consists of five experienced industry professionals, including the CEO and four independent non-executive directors[55] - Independent non-executive directors accounted for more than half of the board, ensuring high standards of financial reporting and governance[62] - The board has three committees: the remuneration committee, audit committee, and nomination committee, each with specific responsibilities[105] - The board's collective responsibility includes monitoring management performance and ensuring the implementation of regular risk management measures[54] Risk Management and Internal Control - The audit committee is responsible for ensuring effective risk management and internal control systems are in place[150] - The internal control system is designed to achieve operational effectiveness, reliability of financial reporting, and compliance with applicable laws and regulations[165] - The board of directors has concluded that the risk management and internal control systems are effective and appropriate, with sufficient resources and employee qualifications[168] - No significant internal control deficiencies were identified during the annual review process[169] Strategic Initiatives - The group is in discussions regarding a proposed acquisition of over 50% equity in Sozak Oil and Gas JSC, which is engaged in oil and gas exploration in Kazakhstan[26] - The strategic cooperation agreements aim to enter the blockchain and cryptocurrency sectors, although no transactions have been conducted under these agreements as of the report date[27] - The board anticipates that the strategic cooperation agreements will facilitate the group's expansion into blockchain and cryptocurrency businesses[33] Shareholder Communication - The company has adopted a shareholder communication policy to ensure timely and equal access to relevant information[179] - The company held its most recent annual general meeting on June 1, 2021, to discuss and approve various matters, including the re-election of directors and the appointment of external auditors[179] Dividend Policy - The board does not recommend the distribution of a final dividend for the year ended December 31, 2021[34] - For the year ended December 31, 2021, the group did not declare an interim dividend and the board did not recommend a final dividend[188] Employee and Stakeholder Relations - The company emphasizes the importance of maintaining good relationships with suppliers, customers, employees, and other stakeholders to achieve medium to long-term goals[187] - The group employed approximately 690 full-time employees as of December 31, 2021, a slight decrease from 700 in 2020[24]

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 81,571,000, representing an increase of 14.5% compared to HKD 71,344,000 for the same period in 2020[9] - Gross profit for the same period was HKD 23,566,000, a decrease of 6% from HKD 25,039,000 in 2020[9] - The company reported a loss before tax of HKD 8,193,000, compared to a loss of HKD 5,349,000 in the previous year, indicating a deterioration in performance[9] - Basic and diluted loss per share was HKD 3.05, compared to HKD 2.19 for the same period last year, reflecting increased losses[13] - The company reported a net loss before tax of approximately HKD 9,975,000 for the first half of 2021, compared to a loss of HKD 7,151,000 in 2020[90] - The loss attributable to the company's owners for the period was approximately HKD 9,975,000, compared to a loss of HKD 7,151,000 in 2020, with basic and diluted loss per share at HKD 0.0305[116] - The core business recorded a loss of approximately HKD 2,480,000, down from a profit of HKD 5,116,000 in the same period last year[116] Assets and Liabilities - Non-current assets totaled HKD 39,047,000 as of June 30, 2021, slightly up from HKD 38,380,000 at the end of 2020[15] - Current assets increased to HKD 122,457,000 from HKD 115,262,000, driven by higher cash balances[16] - Current liabilities decreased significantly to HKD 35,015,000 from HKD 85,042,000, indicating improved liquidity[18] - Total assets as of June 30, 2021, amounted to HKD 161,504,000, while total liabilities were HKD 48,859,000, resulting in a net asset position[50] - The company's equity attributable to owners was HKD 97,415,000, down from HKD 106,423,000 at the end of 2020[21] Revenue Breakdown - Revenue from toy products was HKD 80,527,000, up 15.8% from HKD 69,517,000 in the previous year, while revenue from novelty and decorative items decreased to HKD 1,044,000 from HKD 1,827,000[45] - Revenue from the United States significantly increased to HKD 10,698,000, up 355.5% from HKD 2,346,000 in 2020[66] - Revenue from Hong Kong rose to HKD 3,971,000, a 113.0% increase from HKD 1,860,000 in 2020[66] - The toy product segment's revenue rose by approximately 16% to about HKD 80,527,000, accounting for about 99% of total revenue, driven by sales increases in the US, Hong Kong, and Europe[117] - The revenue from the novelty and decorative products segment decreased by approximately 43% to about HKD 1,044,000, with a loss of HKD 3,584,000 compared to a loss of HKD 2,522,000 in 2020[119] Cash Flow - The net cash used in operating activities was HKD (1,633,000), an improvement from HKD (2,332,000) in the previous period[28] - The net cash generated from investing activities was HKD 44,416,000, a significant increase from HKD (1,246,000) in the prior period[29] - The company reported a net increase in cash and cash equivalents of HKD 11,918,000, compared to a decrease of HKD (4,519,000) in the previous year[31] - As of June 30, 2021, the company had cash and bank balances of approximately HKD 72,485,000, up from HKD 59,467,000 at the end of 2020[124] Operational Strategy - The company is focusing on enhancing operational efficiency and exploring new market opportunities to drive future growth[24] - The company plans to continue focusing on the development of new products and technologies to enhance market competitiveness[49] - The company aims to expand its market presence and explore potential mergers and acquisitions to drive growth[49] - The company plans to continue optimizing its product portfolio and implementing strict cost control measures to mitigate challenges posed by the COVID-19 pandemic[143] Corporate Governance - The company has adopted a code of corporate governance and has complied with the relevant provisions, except for the separation of roles between the Chairman and the CEO[156] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated interim results for the six months ending June 30, 2021[161] - The company confirmed compliance with the standard code for securities trading by directors during the six months ending June 30, 2021[160] - The company is in the process of identifying a suitable candidate to assume the role of Chairman[156] Employee and Shareholder Information - The group employed approximately 710 full-time employees as of June 30, 2021, an increase from 700 employees as of December 31, 2020[131] - As of June 30, 2021, the number of shares available for issuance under the share option plan was 32,692,360, representing approximately 10% of the company's issued shares[147] - As of June 30, 2021, the company had major shareholders including Mr. Zhai Jun with 125,297,040 shares, representing 38.33% of the issued share capital[151] - Mr. Gao Xiaorui held 119,297,041 shares, accounting for 36.49% of the issued share capital[151] Other Notable Events - The company completed the sale of Perfect Skill Limited for HKD 67,100,000, with a recognized gain of HKD 249,000 in other income[95][99] - The company did not declare an interim dividend for the first half of 2021, consistent with 2020[90] - The company did not purchase, sell, or redeem any of its listed securities on the stock exchange during the six months ending June 30, 2021[154] - The group recorded a gain of approximately HKD 346,000 from the sale of financial assets at fair value through profit or loss during the period, compared to HKD 0 in 2020[129] - The company is in discussions regarding the acquisition of over 50% equity in Sozak Oil and Gas JSC, with the deal structure involving cash and issuance of new shares[135] - The strategic cooperation agreements with various partners aim to explore opportunities in the blockchain and cryptocurrency sectors, although no transactions have been executed yet[138] - The board is committed to implementing the proposed acquisition and strategic cooperation agreements to enhance shareholder value and generate new revenue streams[143]

Financial Performance - The company's revenue increased by approximately 14% to around HKD 162,041,000 for the year ended December 31, 2020, compared to HKD 141,936,000 in 2019[11]. - The loss attributable to the company's owners for the year was approximately HKD 15,801,000, a significant improvement from a loss of HKD 55,038,000 in 2019[11]. - Revenue from toy products increased by about 19% to approximately HKD 152,115,000, accounting for about 94% of total revenue[12]. - The segment loss for novelty and decorative products decreased to approximately HKD 4,247,000, down from HKD 3,377,000 in 2019, with revenue declining by about 28% to HKD 9,926,000[13]. - The core business recorded a profit of approximately HKD 13,111,000, a turnaround from a loss of HKD 26,831,000 in 2019[11]. - The company reported that the top five customers accounted for approximately 98% of total revenue, with the largest customer contributing about 87%[187]. - The top five suppliers represented around 42% of total purchase value, with the largest supplier accounting for 17%[187]. Cost Management - Distribution costs decreased by approximately 16% to about HKD 3,066,000, while administrative expenses fell by about 36% to approximately HKD 52,009,000[14]. - Financial expenses increased by about 20% to approximately HKD 2,632,000 due to increased interest on amounts payable to subsidiary company directors[15]. - The company is committed to optimizing its product portfolio to meet customer needs and improve operational efficiency while implementing strict cost control measures[36]. Financial Position - As of December 31, 2020, the company's bank balance and cash amounted to approximately HKD 59,467,000, down from HKD 70,403,000 in 2019[18]. - The company's debt-to-equity ratio was approximately 26%, a decrease from 44% in the previous year[18]. - The company has sufficient financial resources to meet its obligations and working capital needs, with total current assets of approximately HKD 182,437,000[18]. - As of December 31, 2020, the net asset value per share was approximately HKD 0.33, down from HKD 0.37 on December 31, 2019, with total equity attributable to owners of approximately HKD 106,423,000[19]. - The company has no distributable reserves as of December 31, 2020, but has a share premium account of approximately HKD 118,895,000 available for distribution as scrip dividends[193]. Strategic Initiatives - The company is in discussions to acquire over 50% equity in Sozak Oil and Gas JSC, which is engaged in oil and gas exploration in Kazakhstan, with the payment structure involving cash and issuance of new shares[26]. - The company entered into a strategic cooperation agreement with California Super Computing Network Technology, Inc. and Affluence Energy Holding SARL to leverage energy reserves and technology for digital currency projects[28]. - The company aims to integrate resources in the blockchain and cryptocurrency sectors through its strategic agreements, focusing on areas such as mining, trading, and investment management[32]. - The company aims to become a leading global digital currency enterprise in the blockchain and cryptocurrency sector, focusing on a full ecosystem layout including mining, trading, and investment management[36]. - The company will continue to seek quality acquisition opportunities in the oil and gas development sector to enhance its resource integration capabilities[36]. Corporate Governance - The company has adopted the corporate governance code as per the latest amendments in Appendix 14 of the Listing Rules, effective from August 29, 2013, with further revisions made on December 20, 2018[53]. - The board of directors consists of five members, all experienced professionals, responsible for setting the overall business development goals and long-term strategies of the company[59]. - The company has complied with the corporate governance code except for the separation of roles between the chairman and the CEO, which is currently shared among the board members and the company secretary[54]. - The independent non-executive directors constitute at least one-third of the board, ensuring high standards of financial and mandatory reporting[63]. - The company has established a remuneration committee and an audit committee to enhance corporate governance standards[53]. Risk Management - The company has established and maintained an effective risk management and internal control system, with no significant risks identified as of December 31, 2020[161][163]. - The internal control system is based on the COSO 2013 framework, which aims to achieve operational effectiveness, reliability of financial reporting, and compliance with applicable laws and regulations[163]. - The audit committee is responsible for monitoring the risk management and internal control systems and ensuring effective communication with the board regarding identified risks and remedial plans[162]. Shareholder Relations - The board will continue to ensure transparency and timely disclosure of company information, including annual and interim reports[178]. - The board has delegated decision-making responsibilities for daily operations and administrative matters to management[96]. - The board has established strict guidelines for employee conduct regarding securities trading to prevent insider trading[93]. Employee and Board Composition - The group employed approximately 700 full-time employees as of December 31, 2020, an increase from 680 in 2019[24]. - The board has established a nomination committee to provide a framework for appointing capable directors to achieve sustainable development[82]. - The nomination committee will ensure the selection process is transparent and fair[122].

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 71,344,000, an increase of 10.8% compared to HKD 64,555,000 for the same period in 2019[11] - Gross profit for the same period was HKD 25,039,000, significantly up from HKD 7,875,000, resulting in a gross margin improvement[11] - The company reported a loss before tax of HKD 5,349,000, a reduction in loss compared to HKD 27,653,000 in the prior year[11] - Total comprehensive loss for the period was HKD 6,247,000, compared to HKD 10,990,000 in the previous year, indicating a narrowing of losses[12] - Basic and diluted loss per share was HKD 2.19, improved from HKD 8.10 in the same period last year[24] - The company reported a net loss of approximately HKD 7,151,000 for the six months ended June 30, 2020, compared to a loss of HKD 26,485,000 in the same period of 2019[104] - The company experienced a loss of HKD (6,086,000) for the period, reflecting a decrease in losses compared to HKD (27,107,000) in the same period last year[63][85] Assets and Liabilities - Non-current assets totaled HKD 112,751,000 as of June 30, 2020, down from HKD 120,094,000 at the end of 2019[30] - Current assets increased to HKD 115,520,000 from HKD 102,869,000, reflecting improved liquidity[30] - The company's total equity decreased to HKD 126,970,000 from HKD 133,441,000, indicating a slight decline in net worth[32] - The total assets as of June 30, 2020, amounted to HKD 222,271,000, while total liabilities were HKD 95,301,000[69][73] - Total assets as of June 30, 2020, amounted to HKD 222,271,000, a slight decrease from HKD 222,963,000 as of December 31, 2019[91] - Total liabilities as of June 30, 2020, were HKD 89,522,000, compared to HKD 111,634,000 as of December 31, 2019[91] - The debt-to-equity ratio was approximately 48% as of June 30, 2020, up from 44% as of December 31, 2019[145] Revenue Breakdown - Revenue from toy products was HKD 69,517,000, which represents a 13% increase from HKD 61,511,000 in the same period last year[48] - Revenue from novelty and decorative products decreased by approximately 40% to about HKD 1,827,000, primarily due to reduced sales in Europe[141] - Revenue for the six months ended June 30, 2020, was HKD 71,344,000, representing an increase of 10.5% from HKD 64,555,000 in the same period of 2019[91] - Revenue from toy products increased by approximately 13% to about HKD 69,517,000, accounting for approximately 97% of total revenue[137] Expenses and Cost Management - Distribution costs decreased by approximately 8% to about HKD 1,405,000, attributed to strict cost control measures[142] - Administrative expenses decreased by approximately 25% to about HKD 26,326,000, mainly due to a reduction in legal and professional fees[142] - Financial expenses increased to approximately HKD 1,442,000 from HKD 674,000 in 2019, due to increased interest on amounts payable to subsidiary company directors[143] Cash Flow and Liquidity - The net cash used in operating activities was HKD (2,332,000), a significant improvement from HKD (26,986,000) in the previous year[38] - The cash and cash equivalents at the end of the period were HKD 65,687,000, compared to HKD 64,845,000 at the end of the previous year[38] - As of June 30, 2020, the group had bank balances and cash of approximately HKD 65,687,000, a decrease from HKD 70,403,000 as of December 31, 2019[149] Strategic Plans and Future Outlook - The company plans to focus on market expansion and new product development to drive future growth[10] - The company plans to optimize its product portfolio and implement strict cost management measures to mitigate challenges posed by the ongoing COVID-19 pandemic and geopolitical uncertainties[165] - The group is actively seeking acquisition opportunities to enhance shareholder value and create new revenue sources[161] - The company is in discussions regarding a proposed acquisition of over 50% interest in Sozak Oil and Gas LLP, which is engaged in oil and gas exploration in Kazakhstan[160] Employee and Operational Metrics - The group employed approximately 720 full-time employees as of June 30, 2020, an increase from 680 employees as of December 31, 2019[153] Other Financial Information - The company did not declare an interim dividend for the six months ended June 30, 2020[103] - The company did not report any significant impacts from the adoption of revised Hong Kong Financial Reporting Standards during the period[46] - The group has no significant investments or acquisitions as of June 30, 2020[144] - The group has not entered into any financial instruments to hedge foreign exchange risks as of June 30, 2020[159]

Financial Performance - The group's revenue for the year ended December 31, 2019, was approximately HKD 141,936,000, a slight decrease of about 2% compared to HKD 145,251,000 in 2018[10]. - The group recorded a loss attributable to the owners of the company of approximately HKD 55,038,000, compared to a loss of HKD 36,424,000 in 2018, with basic and diluted loss per share of HKD 0.1684[10]. - The core business recorded a loss of HKD 26,831,000 for the year ended December 31, 2019, compared to a loss of HKD 23,629,000 in 2018[20]. - Revenue from toy products slightly increased by approximately 0.5% to about HKD 128,203,000, accounting for about 90% of total revenue[21]. - Revenue from novelty and decorative products decreased by approximately 22% to about HKD 13,733,000, primarily due to reduced sales to European and American customers[22]. - Administrative expenses increased by approximately 50% to about HKD 81,303,000, mainly due to employee compensation related to the relocation of the production facility[23]. - Financial expenses rose to approximately HKD 2,197,000, up from HKD 124,000 in 2018, due to increased interest on bank loans and lease liabilities[24]. - As of December 31, 2019, the group had a debt-to-equity ratio of approximately 44%, compared to 6% in 2018[25]. - The net asset value per share as of December 31, 2019, was approximately HKD 0.37, down from HKD 0.48 in 2018[28]. - The top five customers accounted for approximately 95% of the total revenue, with the largest customer contributing about 82%[161]. - The top five suppliers represented about 43% of the total purchase value, with the largest supplier accounting for approximately 21%[161]. Corporate Governance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance and transparency in its operations[44]. - The board of directors consists of six members, all experienced professionals in their respective fields, overseeing the company's long-term strategic goals and performance evaluation[48]. - The independent non-executive directors play a crucial role in providing oversight and ensuring the integrity of the company's financial reporting[49]. - The company emphasizes the importance of good corporate governance to maintain trust with employees, business partners, shareholders, and investors[44]. - The board has established service contracts for its directors, ensuring structured governance and accountability within the management team[35][38][40]. - The board regularly reviews the company's financial and operational performance, discussing future development plans to align with strategic objectives[46]. - The board consists of independent non-executive directors, making up at least 50% of the board members, ensuring high standards of financial reporting and governance[51]. - The board has established a memorandum outlining its authorization policy and the division of responsibilities between the board and management[82]. - The board has three committees: the Remuneration Committee, the Audit Committee, and the Nomination Committee, each with specific responsibilities[86]. - The company has established a nomination policy to ensure a balanced board in terms of skills, experience, and diversity[93]. - The board diversity policy was adopted on August 29, 2013, and aims to enhance board effectiveness through diverse perspectives[112]. - The company maintains a commitment to confidentiality regarding candidate information until the shareholder circular is issued[108]. Risk Management and Internal Control - The company has established and maintained an effective risk management and internal control system throughout the year[136]. - The internal control system complies with the COSO 2013 framework, which aims to achieve operational effectiveness, reliability of financial reporting, and compliance with applicable laws and regulations[139]. - The audit committee assessed the company's compliance with statutory and regulatory requirements, as well as the development of accounting standards and their impact on the company[131]. - The audit committee is responsible for reviewing the external auditor's work scope and effectiveness[127]. - The audit committee and board review the internal control and risk management systems at least annually, with no significant concerns or weaknesses identified for the year ending December 31, 2019[143]. - The company has adopted measures to ensure the authenticity, accuracy, completeness, and timeliness of its disclosures[140]. - The company has implemented green office measures to promote environmental sustainability[193]. - The company has complied with all relevant laws and regulations affecting its operations[194]. Shareholder Relations and Dividends - The board does not recommend the distribution of a final dividend for the years ended December 31, 2019, and 2018[16]. - No interim dividends were declared to shareholders during the year, and the board does not recommend a final dividend for the year ending December 31, 2019[160]. - The company recognizes the importance of maintaining good relationships with suppliers, customers, employees, and other stakeholders to achieve medium to long-term goals[158]. - The company maintained sufficient public float as of December 31, 2019[192]. Management and Operations - The company plans to acquire 100% equity of Kozhan JSC, which is primarily engaged in oil exploration and production in Kazakhstan[11]. - The company intends to acquire over 50% interest in Sozak Oil and Gas LLP, which is involved in oil and gas exploration in Kazakhstan[12]. - The board believes that the proposed acquisitions will help shift the company's focus towards natural gas and clean energy to meet the growing demand in China[13]. - The company has taken emergency measures to mitigate the impact of COVID-19, which has caused operational delays[15]. - The company has established an internal audit function, which is independent of daily operations and evaluates risk management and internal control systems through discussions and operational efficiency tests[142]. - The company has a share option plan as a reward for its directors and eligible employees[187]. - The company did not issue any shares during the year[166]. - The company did not purchase, sell, or redeem any of its listed securities during the year[185]. Employee and Director Information - The group employed approximately 680 full-time employees as of December 31, 2019, down from 860 in 2018[29]. - The remuneration policy for employees is determined by the board based on merit, qualifications, and capabilities[186]. - The remuneration committee held three meetings during the year to evaluate executive performance and recommend compensation structures[116]. - The performance-based portion of executive directors' compensation is a significant part of their total remuneration package[119]. - The company has purchased and maintained directors' liability insurance to provide adequate protection for its directors[199]. - The indemnity provisions for directors were effective throughout the review year and remain valid at the time of this report[200].