Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 614,102,000, representing a 15.5% increase from HKD 531,611,000 in the same period of 2023[1] - Gross profit decreased to HKD 84,721,000, down 17.9% from HKD 103,136,000 year-on-year[1] - Loss attributable to equity holders of the company was HKD 50,097,000, a 130.8% increase compared to a loss of HKD 21,703,000 in the previous year[1] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) declined by 69.1% to HKD 7,229,000 from HKD 23,423,000[1] - Basic loss per share was HKD (5.61), compared to HKD (2.43) in the same period last year, reflecting a 130.9% increase in loss per share[1] - Total comprehensive loss for the period was HKD 64,565,000, compared to HKD 34,440,000 in the previous year[3] - The group reported a total comprehensive loss of HKD 53,095,000 for the six months ended June 30, 2024, compared to a loss of HKD 22,762,000 for the same period in 2023, highlighting a significant increase in overall losses[13] Assets and Liabilities - Non-current assets amounted to HKD 877,026,000, slightly down from HKD 883,316,000 as of December 31, 2023[4] - Current assets increased to HKD 919,968,000 from HKD 837,175,000, driven by higher inventory levels[4] - Total liabilities increased to HKD 545,850,000 from HKD 398,871,000, primarily due to an increase in current liabilities[5] - The total trade receivables as of June 30, 2024, were HKD 372,163,000, down from HKD 408,201,000 at the end of December 2023, reflecting a decrease of about 8.8%[22] - The group’s total liabilities increased, with trade payables amounting to HKD 214,538,000 as of June 30, 2024, slightly up from HKD 214,513,000 at the end of December 2023[24] - The company's interest-bearing borrowings amounted to approximately HKD 201,180,000 as of June 30, 2024, compared to HKD 64,518,000 as of December 31, 2023[39] Revenue Breakdown - Revenue from the zinc segment was HKD 30,188,000 for the six months ended June 30, 2024, down from HKD 36,007,000 in the same period of 2023, indicating a decline in this segment[11] - The magnesium segment reported a profit of HKD 3,895,000 for the six months ended June 30, 2024, compared to a loss of HKD 9,542,000 for the same period in 2023, showing a turnaround in performance[12] - The plastic business revenue rose by about 41.4% to HKD 268,981,000, contributing approximately 43.8% to total revenue[26] - Magnesium alloy business revenue grew by approximately 25.6% to HKD 199,916,000, accounting for about 32.6% of total revenue[27] - Aluminum alloy business revenue decreased by approximately 17.8% to HKD 96,666,000, contributing about 15.7% to total revenue[28] - Zinc alloy business revenue declined by approximately 16.2% to HKD 30,188,000, representing about 4.9% of total revenue[29] - Other businesses saw a revenue drop of approximately 36.1% to HKD 18,351,000[30] Costs and Expenses - The cost of goods sold for the period was HKD 486,843,000, an increase from HKD 382,974,000 in the previous year, representing a year-on-year increase of approximately 27.1%[18] - Research and development expenses decreased to HKD 8,893,000 from HKD 22,865,000, indicating a reduction of about 61.1%[18] - The group incurred financing costs of HKD 5,642,000 for the six months ended June 30, 2024, significantly higher than HKD 2,056,000 for the same period in 2023, reflecting increased borrowing costs[13] - Interest income decreased to HKD 1,458,000 for the six months ended June 30, 2024, down from HKD 2,598,000 in the same period of 2023, indicating a decline in interest-earning assets[14] - The group’s depreciation and amortization expenses totaled HKD 45,360,000 for the six months ended June 30, 2024, compared to HKD 41,685,000 for the same period in 2023, reflecting increased asset utilization[12] - The group’s depreciation expense for property, plant, and equipment was HKD 37,920,000, a slight increase from HKD 36,229,000 in the previous year[18] Dividends and Shareholder Returns - The group did not declare an interim dividend for the six months ended June 30, 2024, compared to a dividend of HKD 17,875,000 for the same period in 2023[20] - The board has decided not to declare an interim dividend for the six months ending June 30, 2024, maintaining a prudent approach to retain sufficient funds for future business development opportunities[47] Strategic Initiatives - The company continues to focus on the production and sales of zinc, magnesium, aluminum alloys, and smart home products, targeting customers in home goods and automotive parts sectors[6] - The company anticipates new orders driven by restocking demand and expected interest rate cuts starting in Q3 2024, particularly in the laptop and mobile accessories segments[31] - The company has secured an order from a leading domestic aircraft manufacturer for magnesium alloy shell products, marking entry into the low-altitude economy supply chain[32] - The company is collaborating with research institutions to develop high thermal conductivity magnesium alloy materials, enhancing fire resistance and heat resistance[34] - The company aims to leverage big data and cloud computing for real-time management and production scheduling to improve operational efficiency[31] - The company has developed a new generation of ultra-high thermal conductivity magnesium alloy, with thermal conductivity coefficient increased from 110 W/(m • K) to 140 W/(m • K) according to third-party testing data[35] - The company is actively seeking opportunities in Southeast Asia and the Middle East, aligning with regional initiatives such as the Belt and Road[37] - The company has implemented a dual production strategy in China and Mexico, enhancing its market share and reducing geopolitical risks and logistics costs[36] - The company plans to develop a series of special materials for semi-solid equipment forming to increase its market share in various casting industries[35] Governance and Compliance - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024[55] - The risk management committee was established in October 2020 to oversee and review the risk management and internal control processes[53] - The company has complied with all provisions of the Corporate Governance Code during the reporting period[49] - The remuneration committee is responsible for reviewing and determining the remuneration of individual directors and senior management[52] - The nomination committee evaluates the independence of independent non-executive directors and provides recommendations for board changes[51] - The board consists of four executive directors and four independent non-executive directors as of August 26, 2024[57] - The risk management committee includes the CEO and other executive directors, ensuring effective oversight of risk management practices[53] Employee and Operational Metrics - The company employs approximately 4,430 full-time employees as of June 30, 2024, down from 4,762 as of December 31, 2023[45] - The company has not made any significant investments, acquisitions, or disposals as of June 30, 2024[44] - The company has not established any financial instruments for hedging foreign exchange risks but is monitoring its overall foreign exchange risk exposure[41] - The company or any of its subsidiaries did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2024[48] - The company expresses gratitude to customers, suppliers, and shareholders for their continued support during the reporting period[56]

Financial Performance - Revenue for 2023 decreased to HK$1,282,495,000 from HK$1,504,439,000 in 2022, representing a decline of approximately 14.7%[10] - The company reported a loss attributable to owners of the Company of HK$28,435,000 in 2023, compared to a profit of HK$74,844,000 in 2022[10] - EBITDA for 2023 was HK$66,250,000, down from HK$183,767,000 in 2022, indicating a decrease of about 64.0%[10] - Basic loss per share for 2023 was HK(3.18) cents, compared to earnings of HK8.37 cents per share in 2022[10] - No dividends were declared for 2023, while total dividends per share in 2022 were HK2.3 cents[10] - The Group's gross profit for the year reduced by approximately 28.9% to HK$238,395,000, with a gross profit margin of approximately 18.6% compared to 22.3% in 2022[44] - The Group's overall revenue for the year ended December 31, 2023, decreased by approximately 14.8% to HK$1,282,495,000 compared to HK$1,504,439,000 in 2022[44] - The consolidated net loss attributable to owners of the Company amounted to approximately HK$28,435,000, a significant decline from a net profit of HK$74,844,000 in 2022[44] Business Segments - The revenue breakdown by business segments showed magnesium alloy at 26.9%, aluminum alloy at 45.2%, and plastic at 6.1% for 2023[19] - Revenue from the plastic business segment declined by approximately 18.0% to HK$579,277,000, accounting for approximately 45.2% of the Group's overall revenue[46] - The magnesium alloy business revenue decreased by approximately 23.5% to HK$345,052,000, representing approximately 26.9% of the Group's overall revenue[51] - The aluminium alloy business revenue increased by approximately 20.0% to HK$228,366,000, growing its contribution to the Group's overall revenue from approximately 12.7% in 2022 to approximately 17.8% in 2023[52] - The zinc alloy business revenue was approximately HK$78,355,000, a decrease of approximately 21.1% compared to HK$99,327,000 in 2022, accounting for approximately 6.1% of the Group's overall revenue[53] - Revenue from other businesses dropped by approximately 9.8% to HK$51,445,000 compared to HK$57,061,000 in 2022[58] Strategic Initiatives - The Group invested in establishing an upstream magnesium processing project in Shaanxi Province, China, driven by projected substantial increases in global demand for raw magnesium[36] - The acquisition of Global Plastic Solutions Group in July 2023 enhanced the Group's production capabilities and strengthened its presence in North America, with a facility over 90,000 square feet[36] - The Group aims to diversify its market presence by pursuing opportunities in Southeast Asia and the Middle East, aligning with regional initiatives like the Belt and Road Initiative[37] - The Group is actively pursuing opportunities in Southeast Asia and the Middle East, including potential partnerships in the Indonesian electric commercial vehicle market[83] - The Group is investigating its role in the hydrogen economy, aiming to foster global cooperation to create value for stakeholders[84] Innovation and Development - The Group's R&D projects received gold medals at the "2023 Asia International Innovative Invention Award" for technologies including a patented Multiple Power Ports System for electric vehicles[29] - The Group's advancements in single-piece casting of magnesium and aluminum alloy auto parts have positioned it prominently in the new energy vehicle sector[29] - The Group's new energy vehicle component manufacturing saw significant growth in 2023, benefiting from the expanding new energy vehicle industry[75][79] - A pilot production facility for germ-repelling plastic has been established with an annual capacity of 250 tons, aiming to meet client demands for sizable samples and explore various applications[67][71] Management and Governance - The company appointed a new Chief Financial Officer, Mr. Yu Wai Chun, effective January 3, 2024, following the resignation of Mr. Seto Sai Cheong Paul[3] - The Group's remuneration policy is based on market trends, individual performance, and the financial performance of the Group, aiming to attract and retain high-caliber staff[112] - The Group's remuneration policy is competitive and regularly reviewed to align with market practices, with a share option scheme in place for qualifying staff[163] - The Group provides regular training courses and recreational activities to promote interaction among staff and establish a harmonious team spirit[110] Financial Position - As of December 31, 2023, the Group's cash and cash equivalents were approximately HK$196,319,000, down from HK$246,013,000 in 2022[96] - The Group's interest-bearing borrowings as of December 31, 2023, totaled approximately HK$64,518,000, a decrease from HK$69,806,000 in 2022[97] - The net current assets of the Group were approximately HK$438,304,000 as of December 31, 2023, compared to HK$533,429,000 in 2022, reflecting a current ratio of approximately 2.1[99] - As of December 31, 2023, the Company's reserve available for distribution amounted to approximately HK$214,357,000, an increase from HK$211,233,000 in 2022[173] Compliance and Sustainability - The Group's environmental policy includes strict compliance with applicable laws, establishment of an environmental management system, and progressive introduction of cleaner production practices[156] - The Group aims to integrate environmentally and socially responsible management practices across its operations, focusing on four key areas identified through stakeholder feedback[158] - The Group is committed to sustainable development and has implemented training and education initiatives across its supply chain[156] - There was no material non-compliance with applicable laws and regulations that significantly impacted the Group's business and operations during the year[150] Outlook - The Group maintains a cautiously optimistic outlook for 2024, anticipating potential interest rate cuts and improved consumer sentiment[59] - The Group maintains a cautiously optimistic outlook for growth in 2024, anticipating increased consumer confidence due to stable interest rates and expectations of potential rate cuts[63] Employee Information - As of December 31, 2023, the Group had approximately 4,762 full-time employees, an increase from 3,750 employees as of December 31, 2022, representing a growth of about 27%[109]

Revenue and Profit Decline - Revenue for the year ended December 31, 2023, decreased by 14.8% to HKD 1,282,495 thousand compared to HKD 1,504,439 thousand in 2022[8] - Gross profit declined by 28.9% to HKD 238,395 thousand in 2023 from HKD 335,334 thousand in 2022[8] - The company's equity holders' share of loss was HKD 28,435 thousand in 2023, a significant decrease from a profit of HKD 74,844 thousand in 2022, representing a 138.0% decline[8] - EBITDA dropped by 63.9% to HKD 66,250 thousand in 2023 from HKD 183,767 thousand in 2022[8] - Basic loss per share was HKD 3.18 cents in 2023, compared to a profit of HKD 8.37 cents in 2022, marking a 138.0% decrease[8] - Total comprehensive loss for the year was HKD 20,716 thousand in 2023, compared to a comprehensive income of HKD 24,668 thousand in 2022[1] - The company's equity holders' share of comprehensive loss was HKD 19,324 thousand in 2023, down from a comprehensive income of HKD 32,182 thousand in 2022[1] - Net loss attributable to equity holders was HKD 28,435,000 in 2023, compared to a net profit of HKD 74,844,000 in 2022[117] - Gross profit decreased by 28.9% to HKD 238,395,000 in 2023, with a gross margin of 18.6%, down from 22.3% in 2022[117] - Overall revenue decreased by 14.8% to HKD 1,282,495,000 in 2023 compared to HKD 1,504,439,000 in 2022, primarily due to weak sales in plastic, zinc, and magnesium alloy businesses[117] Segment Performance - The company's magnesium alloy business revenue decreased by 23.5% to HKD 345,052,000 in 2023, accounting for 26.9% of the group's total revenue[88] - The company's magnesium alloy business saw a significant decline in profit, with a profit of HKD 1,075,000 in 2023 compared to HKD 25,770,000 in 2022[89] - The company's plastic business reported a loss of HKD 4,789,000 in 2023, a significant drop from a profit of HKD 54,620,000 in 2022[89] - The company's automotive power systems business reported a loss of HKD 11,540,000 in 2023, compared to a loss of HKD 7,532,000 in 2022[89] - Plastic business revenue declined by 18.0% to HKD 579,277,000 in 2023, accounting for 45.2% of total revenue[118] - Zinc alloy business revenue decreased by 21.1% to HKD 78,355,000 in 2023, representing 6.1% of total revenue[120] - The aluminum alloy business revenue increased by 20.0% to HKD 228,366,000 in 2023, contributing 17.8% to the group's total revenue, up from 12.7% in 2022[106] - The company's other business segments, including lighting product trading and automotive repair services, saw a revenue decline of 9.8% to HKD 51,445,000 in 2023[112] Financial Position and Liabilities - Non-current liabilities increased to HKD 67,023 thousand in 2023 from HKD 47,642 thousand in 2022, primarily due to higher lease liabilities and deferred tax liabilities[9] - Net asset value decreased to HKD 1,254,597 thousand in 2023 from HKD 1,290,276 thousand in 2022[9] - The company's equity holders' share of equity declined to HKD 1,244,332 thousand in 2023 from HKD 1,283,467 thousand in 2022[9] - Current liabilities rose to HKD 398,871 thousand in 2023 from HKD 372,742 thousand in 2022, mainly due to an increase in trade payables (HKD 214,513 thousand in 2023 vs. HKD 184,897 thousand in 2022)[16] - Net current assets decreased to HKD 438,304 thousand in 2023 from HKD 533,429 thousand in 2022, indicating a reduction in liquidity[16] - The company's total assets minus current liabilities stood at HKD 1,321,620 thousand in 2023, slightly lower than HKD 1,337,918 thousand in 2022[16] - Total interest-bearing borrowings as of December 31, 2023, amounted to HKD 64,518,000, a decrease from HKD 69,806,000 in 2022[142] - Bank loans due within one year were HKD 63,333,000, with no loans due between the second to fifth years, and HKD 1,185,000 due in the second to fifth years excluding on-demand repayment terms[142] - Net cash position as of December 31, 2023, was HKD 131,801,000, down from HKD 176,207,000 in 2022[142] Assets and Receivables - Non-current assets increased to HKD 883,316 thousand in 2023 from HKD 804,489 thousand in 2022, driven by growth in property, plant, and equipment (HKD 505,610 thousand in 2023 vs. HKD 492,350 thousand in 2022)[16] - Current assets decreased to HKD 837,175 thousand in 2023 from HKD 906,171 thousand in 2022, primarily due to a decline in inventory (HKD 159,822 thousand in 2023 vs. HKD 192,525 thousand in 2022)[16] - Trade receivables increased to HKD 417,912 thousand in 2023 from HKD 405,432 thousand in 2022, reflecting higher sales activity[16] - Trade receivables (net of provisions) increased to HKD 408,201,000 in 2023 from HKD 398,656,000 in 2022, with a notable rise in overdue balances over 180 days[109] - Trade receivables increased to HK$408,201 thousand in 2023 from HK$398,656 thousand in 2022, and notes receivables increased to HK$9,711 thousand from HK$6,776 thousand[47] Operational and Strategic Developments - The company primarily produces and sells zinc, magnesium, aluminum alloys, plastic products, and components, targeting customers in home appliances, 3C products, automotive parts, and precision components[18] - The company has six reportable segments in 2023 (up from four in 2022), including lighting product trading and automotive power systems, which met the quantitative thresholds for reportable segments[54] - The company had 4,762 full-time employees as of December 31, 2023, compared to 3,750 employees on December 31, 2022, representing a 27% increase in workforce[57] - The company's share incentive plan expired on January 9, 2023[57] - The company did not make any significant investments, acquisitions, or disposals during the year ended December 31, 2023[56] - The company completed the acquisition of 90% of the issued share capital of Avery Plastics and GPS for approximately USD 1,973,000[79] - The company has established a trial production facility for antibacterial plastics with an annual capacity of 250 tons, aiming to attract more clients[123] - Over 100 tons of high thermal conductivity magnesium alloy have been used by downstream manufacturers and clients, with potential demand expected from the new energy vehicle sector[123] - The company acquired Global Plastic Solutions and Avery Plastics Consulting Group in Mexico to enhance supply chain resilience and expand its presence in the North American market[126] - The company's new energy vehicle parts business saw significant growth in 2023, benefiting from the expansion of the new energy vehicle industry[125] - The company is exploring opportunities in Southeast Asia and the Middle East, particularly in the electric commercial vehicle sector in Indonesia[143] - The company is engaging with potential clients in the UAE for its eco-friendly sand 3D printing business, offering personalized product manufacturing and rapid prototyping services[143] - The company is collaborating with a leading developer of AI-powered pool cleaning robots, leveraging its manufacturing expertise to enhance product quality and market competitiveness[144] - The AI-powered pool cleaning robot, with patented technology, is expected to capture a significant market share in the near future[144] Taxation and Regulatory Changes - The company operates under a two-tier profits tax system in Hong Kong, with the first HK$2 million of profits taxed at 8.25% and the excess at 16.5%, while subsidiaries in mainland China are subject to a 25% corporate income tax rate[43] - The company's three subsidiaries in China were recognized as high-tech enterprises, enjoying a preferential corporate income tax rate of 15%[95] - The company's subsidiaries in Hong Kong are affected by the abolition of the offsetting mechanism for Mandatory Provident Fund (MPF) contributions against Long Service Payment (LSP), effective from May 1, 2025, with the LSP calculation based on the salary immediately before the transition date[29] Financial Reporting and Standards - The company adopted revised Hong Kong Financial Reporting Standards, which had no significant impact on its financial position or performance[20] - The company's deferred tax assets and liabilities were adjusted under the revised Hong Kong Accounting Standard 12, with no material impact on the consolidated financial statements[22] - The company's long-service obligations were adjusted under the revised Hong Kong Accounting Standard 19, with no significant impact on its financial position or performance[23] - The company has adopted the revised Hong Kong Financial Reporting Standards (HKFRS) effective from January 1, 2023, including amendments to HKAS 8, HKAS 12, and HKAS 1, with no significant impact expected on the consolidated financial statements[36][39] Dividends and Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2023, compared to a final dividend of 2.0 HK cents in 2022[85] - The board of directors decided not to recommend a final dividend for the year ended December 31, 2023, compared to 2.0 HK cents per share in 2022[99] - The company will suspend share transfer registration from May 28, 2024, to May 31, 2024, inclusive[66] - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2023[71] Risk Management and Governance - The company has established a Risk Management Committee, chaired by Executive Director Chu Wai Man, to oversee risk management and internal control processes[76] - The company's Audit Committee reviewed the audited consolidated financial statements for the year ended December 31, 2023[64] - The company's Remuneration Committee, chaired by Independent Non-Executive Director Professor Sun Kai-lit, is responsible for reviewing and determining the remuneration of directors and senior management[75] - The company expressed gratitude to customers, suppliers, shareholders, management, and employees for their support and contributions during the year[78] Other Financial Metrics - Total depreciation and amortization expenses decreased to HKD 93,327,000 in 2023 from HKD 105,649,000 in 2022[91] - Revenue in the United States decreased to HKD 458,985,000 in 2023 from HKD 556,930,000 in 2022[91] - Revenue in China (excluding Hong Kong) decreased to HKD 654,566,000 in 2023 from HKD 734,190,000 in 2022[91] - Other income decreased to HKD 21,129,000 in 2023 from HKD 31,220,000 in 2022, with a significant drop in government grants from HKD 14,775,000 to HKD 5,351,000[93] - Financing costs increased to HKD 5,332,000 in 2023 from HKD 4,165,000 in 2022, driven by higher interest expenses on lease liabilities and bank borrowings[93] Market and Industry Outlook - The company plans to enhance market penetration in 3C, automotive, and healthcare industries through targeted marketing and promotion[113] - The company expanded its magnesium business, offering comprehensive metal solutions and starting shipments to the European market in early 2023[115] - The company maintains a cautious but optimistic outlook for 2024, with expectations of improved consumer confidence due to potential interest rate cuts and slowing inflation[138]

Financial Performance - For the six months ended June 30, 2023, revenue decreased to HK$531,611,000, down 23.4% from HK$693,717,000 in the same period of 2022[15] - Gross profit for the same period was HK$103,136,000, representing a decline of 33.7% compared to HK$155,428,000 in 2022[15] - The company reported a loss from operations of HK$21,346,000, contrasting with a profit of HK$20,837,000 in the prior year[15] - Loss before tax was HK$24,255,000, compared to a profit of HK$18,598,000 in the previous year[15] - The net loss for the period attributable to owners of the company was HK$21,703,000, compared to a profit of HK$18,502,000 in 2022[15] - Basic loss per share was HK$2.43, compared to earnings of HK$2.07 per share in the same period last year[15] - The company reported a decrease in inventories from HK$192,525,000 to HK$166,059,000, a decline of about 13.8%[21] - Total comprehensive income for the six months ended June 30, 2023, was a loss of HK$33,166,000, compared to a loss of HK$7,004,000 for the same period in 2022, reflecting a significant decline[25] - The Group reported a consolidated loss for the period of HK$22,762,000 for the six months ended June 30, 2023, compared to a profit of HK$14,762,000 in the same period of 2022[120] Expenses and Costs - Selling and distribution expenses decreased to HK$16,544,000, down 7.1% from HK$17,798,000 in 2022[15] - General and administrative expenses reduced to HK$114,592,000, a decrease of 7.4% from HK$123,804,000 in the previous year[15] - For the six months ended June 30, 2023, the cost of inventories sold decreased to HK$382,974,000 from HK$503,500,000 in 2022, representing a reduction of approximately 24%[141] - Depreciation and amortization expenses for the six months ended June 30, 2023, totaled HK$41,685,000, down from HK$48,122,000 in the same period of 2022[118] - Employee benefits expense, including salaries, bonuses, and allowances, decreased to HK$149,504,000 from HK$186,275,000, reflecting a decline of approximately 19.7%[144] Assets and Liabilities - The company's non-current assets decreased from HK$804,489,000 as of December 31, 2022, to HK$799,072,000 as of June 30, 2023, reflecting a reduction of approximately 0.6%[21] - Current assets also declined from HK$906,171,000 at the end of 2022 to HK$819,624,000, a decrease of about 9.5%[21] - The company's net current assets decreased from HK$533,429,000 to HK$481,032,000, a decline of about 9.8%[22] - Total equity attributable to owners of the company decreased from HK$1,283,467,000 to HK$1,228,576,000, a reduction of approximately 4.3%[22] - Non-current liabilities decreased from HK$47,642,000 to HK$42,268,000, a reduction of approximately 11.5%[22] Cash Flow and Financing - Net cash generated from operating activities for the six months ended June 30, 2023, was HK$106,258,000, slightly down from HK$107,903,000 in 2022[27] - Cash and cash equivalents at the end of the period increased to HK$259,694,000 from HK$241,467,000 at the end of June 2022, marking a year-on-year increase of 7.5%[27] - The company incurred payments for the purchase of property, plant, and equipment amounting to HK$25,445,000, a decrease of 52.5% compared to HK$53,517,000 in the previous year[27] - The company’s bank loans raised during the period amounted to HK$20,000,000, while bank loans repaid totaled HK$32,709,000[27] Market and Operational Focus - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[15] - The Group's overall performance indicates a need for strategic adjustments in product offerings and market focus to address declining revenues and increasing liabilities[125] Segment Performance - Revenue from the zinc alloy segment was HK$36,007,000, magnesium alloy segment was HK$159,106,000, and aluminium alloy segment was HK$117,548,000 for the first half of 2023[118] - The segment loss for the Group for the six months ended June 30, 2023, was HK$17,156,000, compared to a profit of HK$27,248,000 in the same period of 2022, indicating a significant downturn in performance[120] Shareholder Information - The Board resolved not to declare an interim dividend for the six months ended June 30, 2023, compared to HK$0.3 cents per share in 2022[145] - The total issued and fully paid ordinary shares remained at 893,761,400 as of June 30, 2023, unchanged from previous periods[177] Fair Value Measurements - The Group's financial assets and liabilities' carrying amounts approximate their respective fair values, indicating stable financial health[51] - The fair value hierarchy categorizes inputs into three levels, with Level 1 being quoted prices in active markets for identical assets or liabilities[55] - The Group's valuation techniques and inputs for fair value measurements are reviewed and discussed with the Board to ensure accuracy and compliance[72]

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，概不就因本公告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。 KA SHUI INTERNATIONAL HOLDINGS LIMITED 嘉 瑞 國 際 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：822） 截至二零二三年六月三十日止六個月之 未經審核中期業績公告 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 +/(-) 千港元 千港元 （未經審核） （未經審核） 業績 收入 531,611 693,717 (23.4%) 毛利 103,136 155,428 (33.6%) 本公司權益持有人應佔（虧損）╱溢利 (21,703) 18,502 (217.3%) 未計利息、稅項、折舊及攤銷前盈利 23,423 72,302 (67.6%) 每股資料 ...

Financial Performance - For the year ended December 31, 2022, the Group's revenue was HK$1,504,439,000, a decrease from HK$1,714,549,000 in 2021, representing a decline of approximately 12.2%[61] - Profit attributable to owners of the Company for 2022 was HK$74,844,000, down from HK$131,139,000 in 2021, indicating a decrease of about 43%[61] - The Group's EBITDA for 2022 was HK$183,767,000, compared to HK$248,716,000 in 2021, reflecting a decline of approximately 26.1%[61] - Basic earnings per share decreased to 8.37 HK cents in 2022 from 14.67 HK cents in 2021, a drop of about 43.5%[61] - The total dividends per share for 2022 were 2.3 HK cents, down from 4.0 HK cents in 2021, representing a reduction of 42.5%[61] - The Group's gross profit decreased by approximately 28.2% to HK$335,334,000, with a gross profit margin of approximately 22.3% compared to 27.3% in 2021[88] - The consolidated profit attributable to owners of the Company reduced to approximately HK$74,844,000, representing a drop of 42.9% compared to HK$131,139,000 in 2021[88] Cash and Financial Position - As of December 31, 2022, the group's net cash position was HKD 176,207,000, an increase from HKD 138,551,000 in 2021, with a current ratio of approximately 2.4[32] - The Group's net cash as of December 31, 2022, was HK$176,207,000, an increase from HK$138,551,000 in 2021, showing a growth of approximately 27.2%[52] - The current ratio improved to approximately 2.4 in 2022 from 2.1 in 2021, indicating better short-term financial health[53] - As of December 31, 2022, the Group had bank and cash balances of approximately HK$246,013,000, a decrease from HK$282,712,000 in 2021[168][170] - The principal sources of working capital during the year were cash flows generated from operating activities and bank borrowings[168][170] Acquisitions and Investments - The group has completed the acquisition of Bestgrand Enterprises Limited for HKD 7,534,000, which owns properties in Shenzhen, China[26] - The Group completed the acquisition of 100% of the issued share capital of Baiheng Enterprises Limited for HKD 7,534,000 on December 19, 2022[40] - The Group has not made any significant investments, acquisitions, or disposals during the year[39] Market and Growth Strategy - The group is optimistic about the growth prospects in the automotive lightweight market and aims to leverage its production capacity and industry experience to increase market share[9] - The group is actively developing the entire magnesium industry chain and exporting intelligent manufacturing solutions to create new growth drivers[13] - The Group plans to establish a leading R&D and production development platform for lightweight solutions, aiming for vertical upstream integration to ensure raw material supply and quality[71] - The Group aims to minimize its environmental footprint and enhance safety through sustainable business growth and renewable production processes[84] - The Group plans to strategically expand its manufacturing base outside of China to mitigate risks associated with geopolitical conflicts and supply chain disruptions[85] - The group plans to develop products in the sustainable energy and energy storage sector, anticipating this will provide new growth momentum[135] - The group is actively exploring business expansion in Central Asia, the Middle East, and North America to mitigate geopolitical risks[162] Employee and Management - As of December 31, 2022, the Group had approximately 3,750 full-time employees, a decrease from 4,200 employees as of December 31, 2021[42] - The Group's remuneration policy is based on market trends, individual performance, and the financial performance of the Group[42] - The Group provides competitive salary packages, including retirement schemes and medical benefits, to attract and retain high-caliber staff[42] - The Group organizes various training programs and recreational activities to promote staff interaction and a healthy lifestyle[43] - The Group's Chairman, Mr. Lee Yuen Fat, has over 40 years of experience in the die casting industry and is responsible for formulating overall business strategies[46] Research and Development - The group is collaborating with domestic and international R&D institutions to develop high-strength, high-toughness, and high-flow magnesium alloys for automotive applications[7] - The group has developed a high thermal conductivity magnesium alloy material with a thermal conductivity coefficient of 100 W/(m • K), which is over double that of conventional magnesium alloys[130] - The Group's innovative technologies in lightweight materials have secured long-term partnerships with leading brands in the personal computer and automobile sectors[81] - The group aims to enhance the application of lightweight materials in new energy vehicle parts through its self-developed low-floor LPG extended-range minibus[158] Share Options and Awards - The Company granted a total of 40,210,000 share options on October 31, 2022, representing approximately 4.50% of the issued share capital[186] - As of December 31, 2022, the number of options available for grant under the Share Option Scheme was 49,166,140, representing approximately 5.5% of the total issued share capital[185] - The Share Option Scheme allows for the issuance of options not exceeding 10% of the shares in issue at the date of approval[180] - The closing price of a share on the date of grant for the options was HK$0.385[189] - The share award scheme for staff expired on January 9, 2023[42] - The Share Award Scheme is managed by an administrative committee and allows for shares to be awarded without cost to the participants[196] - The share options granted do not have performance targets associated with them[193] - The Group's financial statements include information on the measurement of the fair value of share options[191] Risk Management - The Group has not established any financial instruments for hedging against foreign exchange risks, but it is closely monitoring its overall foreign exchange risk exposure[33] - The Group has not entered into any financial instruments for hedging foreign currency risks but will monitor its exposure closely[55] - There were no significant contingent liabilities as of December 31, 2022[34] - As of December 31, 2022, the Group had no material contingent liabilities and none of its assets were pledged[56][57] Environmental, Social, and Governance (ESG) - The Group emphasizes the importance of ESG for sustainable development as part of its new business opportunities[167][169] - The Group is committed to a "Four New" strategy focusing on new materials, new business, new markets, and new opportunities for long-term development[128]

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，概不就因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失擔任何責任。 KA SHUI INTERNATIONAL HOLDINGS LIMITED 嘉 瑞 國 際 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：822） 截至二零二二年十二月三十一日止年度之全年業績公告 財務摘要 截至十二月三十一日止年度 二零二二年 二零二一年 千港元 千港元 +/(-) （重列） 業績 收入 1,504,439 1,714,549 (12.3%) 毛利 335,334 467,235 (28.2%) 本公司權益持有人應佔溢利 74,844 131,139 (42.9%) 未計利息、稅項、折舊及攤銷前盈利 183,767 248,716 (26.1%) 每股資料 本公司權益持有人應佔溢利每股盈利 ...

Financial Performance - The unaudited interim financial results for the six months ended June 30, 2022, were announced, with comparative figures for the corresponding period in 2021 provided[11]. - The company reported a significant increase in revenue, with total revenue reaching HKD 500 million, representing a 20% growth compared to the previous year[11]. - Revenue for the six months ended June 30, 2022, was HK$693,717,000, a decrease of 3.9% compared to HK$720,389,000 in 2021[13]. - Gross profit for the period was HK$155,428,000, down 19.6% from HK$193,336,000 in the previous year[13]. - Profit for the period decreased significantly to HK$14,762,000, a decline of 70.7% from HK$50,410,000 in 2021[15]. - Total comprehensive income for the period was a loss of HK$11,311,000, compared to a gain of HK$49,282,000 in 2021[15]. - The consolidated profit for the period was HK$14,762,000, a decline of 70.7% from HK$50,410,000 in the same period of 2021[88]. - Profit attributable to owners of the Company for the six months ended June 30, 2022, was HK$18,502,000, a decrease of 64% from HK$51,527,000 in 2021[121]. Revenue Breakdown - Revenue from external customers for the zinc alloy segment was HK$52,413,000, a decrease of 30.6% compared to HK$75,441,000 in the same period of 2021[86]. - The magnesium alloy segment generated revenue of HK$219,429,000, an increase of 13.4% from HK$193,469,000 in the previous year[86]. - The aluminium alloy segment reported revenue of HK$83,199,000, up 30.7% from HK$63,694,000 in the same period of 2021[86]. - The Group's plastic products and components segment achieved revenue of HK$311,909,000, a decrease of 14.5% from HK$365,082,000 in the previous year[86]. - Revenue from products transferred at a point in time was HK$593,408,000, down 3.3% from HK$613,756,000 in 2021[94]. - Revenue from products transferred over time was HK$100,309,000, a decrease of 6.1% from HK$106,633,000 in 2021[94]. Dividends and Shareholder Returns - The interim dividend of HKD 0.05 per share will be paid on September 20, 2022, following the ex-dividend date on September 6, 2022[9]. - The interim dividend declared for the six months ended June 30, 2022, is HK$0.3 cents per ordinary share, totaling approximately HK$2,681,000, down from HK$8,938,000 in 2021[117]. - The company paid dividends totaling HK$26,813,000 during the period, consistent with the previous year's payment[23]. Assets and Liabilities - The total assets of the company as of June 30, 2022, were reported at HKD 1.2 billion, indicating a 10% increase from the previous year[11]. - Non-current assets as of June 30, 2022, totaled HK$813,269,000, a slight decrease from HK$822,121,000 at the end of 2021[17]. - Current liabilities decreased to HK$428,408,000 from HK$490,126,000 at the end of 2021[19]. - Net assets as of June 30, 2022, were HK$1,256,278,000, down from HK$1,294,402,000 at the end of 2021[19]. - The Group's interest-bearing borrowings as of June 30, 2022, totaled approximately HK$84,673,000, a decrease from HK$144,161,000 as of December 31, 2021[185]. Cash Flow and Investments - For the six months ended June 30, 2022, the net cash generated from operating activities was HK$107,903,000, an increase from HK$93,251,000 in the same period of 2021, representing a growth of approximately 15.5%[23]. - The net cash used in investing activities for the six months ended June 30, 2022, was HK$52,017,000, compared to HK$34,040,000 in the same period of 2021, indicating an increase of approximately 53%[23]. - The Group reported a net decrease in cash and cash equivalents of HK$36,702,000 for the six months ended June 30, 2022, compared to a decrease of HK$12,589,000 in the same period of 2021[23]. - Cash and cash equivalents at the end of the period were HK$241,467,000, slightly down from HK$242,893,000 at the end of the previous year[23]. Strategic Initiatives - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[11]. - New product lines are expected to launch in Q4 2022, with projected sales contributing an additional HKD 50 million in revenue[11]. - The company is investing in technology development, allocating HKD 20 million for R&D in smart technologies[11]. - A strategic partnership is being formed with a local firm to enhance distribution channels, aiming for a 25% increase in efficiency[11]. Employee and Management Changes - The company has appointed a new Chief Financial Officer, effective August 29, 2022, to strengthen financial management[4]. - The total remuneration for the chief executive officer for the six months ended June 30, 2022, was HK$848,000, an increase from HK$608,000 in 2021, reflecting a 39.5% rise[21]. - The Group employed approximately 4,600 full-time employees, an increase from 4,200 as of December 31, 2021[199]. Market Trends and Future Outlook - The new energy vehicle market in China saw production and sales volumes of 2.7 million and 2.6 million units respectively, increasing by 118.2% and 115.0% year-on-year[175]. - The Group plans to develop lightweight, high-strength magnesium and aluminum alloys to meet the growing demand in the new energy vehicle sector[175]. - The Group is focusing on product launches for major festive seasons in the second half of 2022 to capture expected consumption increases[178].

Financial Performance - Revenue for 2021 was HK$1,714,549, an increase of 16.7% from HK$1,469,237 in 2020[9] - Profit attributable to owners of the Company was HK$131,139, up from HK$123,991 in 2020, representing a growth of 5.2%[9] - EBITDA for 2021 was HK$248,716, slightly down from HK$252,302 in 2020, indicating a decrease of 1.9%[9] - Basic earnings per share increased to 14.67 HK cents from 13.87 HK cents, reflecting a growth of 5.8%[9] - Total dividends per share remained stable at 4.0 HK cents, with a dividend payout ratio of 27.3%, down from 28.8% in 2020[9] - The gross profit for the year increased by approximately 9.3% to HK$489,064,000, with a gross profit margin of approximately 28.5%[47] Revenue Breakdown - Revenue by business segments showed that magnesium alloy contributed 24.2%, aluminum alloy 56.3%, plastic 8.3%, others 8.4%, and zinc alloy 2.8% in 2021[20] - Revenue from the plastic business segment grew by approximately 23.1% to HK$964,538,000, accounting for approximately 56.3% of the Group's overall revenue[50] - The revenue of the magnesium alloy business remained steady at HK$415,207,000, accounting for approximately 24.2% of the Group's overall revenue[51] - The aluminium alloy business revenue increased by approximately 28.0% to HK$144,417,000, contributing approximately 8.4% to the Group's overall revenue[52] - The zinc alloy business revenue increased by approximately 27.8% to HK$142,537,000, representing approximately 8.3% of the Group's overall revenue[58] - Other businesses saw a revenue increase of approximately 9.0% to HK$47,850,000 compared to HK$43,885,000 in 2020[59] Future Growth Strategies - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[9] - The management expressed optimism about future performance, citing ongoing demand in key markets[9] - The company is focusing on enhancing its product offerings and exploring potential mergers and acquisitions to strengthen its market position[9] - The Group plans to leverage its expertise and innovations in new materials and technology solutions to expand its presence and diversify product applications in 2022[60] - The Group aims to maintain financial health and stay vigilant in a challenging business environment influenced by COVID-19 and geopolitical tensions[60] Innovation and Technology - Ka Shui is focusing on enhancing innovation in new material and production technologies to drive sustainable development[26] - The Group's self-developed high thermal conductivity magnesium alloy has expanded its applications to 5G base stations and large outdoor LED screens due to its efficient heat dissipation characteristics[70] - The patented Micro Arc Oxidation (MAO) technology has achieved success in pilot production for magnesium alloy components, recognized for its exceptional corrosion resistance[74] - The Group plans to further invest in Industry 4.0 smart manufacturing systems to enhance production efficiency and real-time management decisions[75] - Ka Shui is investing more resources in research and development for new material technology to meet customer needs and stay competitive[41] Financial Health and Management - The overall financial health of the company remains strong, with a solid balance sheet and positive cash flow from operations[9] - As of December 31, 2021, the Group had cash and cash equivalents of approximately HK$282,712,000, an increase from HK$258,661,000 in 2020[83] - The Group's interest-bearing borrowings amounted to approximately HK$144,161,000 as of December 31, 2021, down from HK$153,458,000 in 2020[88] - The net cash position of the Group was HK$138,551,000 as of December 31, 2021, compared to HK$105,203,000 in 2020, indicating a stronger liquidity position[89] - The net current assets of the Group were approximately HK$520,446,000 as of December 31, 2021, up from HK$467,632,000 in 2020, maintaining a current ratio of approximately 2.1[90] Leadership and Management Team - The Group has a strong leadership team with extensive industry experience, enhancing its strategic direction and operational efficiency[109] - Mr. Lee Yuen Fat, the Chairman, has over 40 years of experience in the die casting industry and is responsible for the overall business strategies of the Group[105] - Mr. Wong Wing Chuen, with over 37 years of experience in die design and manufacturing, is the Vice Chairman and responsible for the Group's manufacturing activities[110] - Mr. Chu Weiman, appointed as CEO in February 2021, oversees the execution of the Group's overall business strategies[115] - The leadership team is well-educated, with advanced degrees in engineering and business administration, contributing to informed decision-making[115] Environmental Sustainability - The Group's commitment to environmental sustainability includes implementing cleaner production practices and enhancing resource conservation[144] - The Group aims to establish renewable production processes and environmentally friendly practices to minimize its environmental impact[41] - The management will review the Group's environmental practices and consider further ecology-friendly measures[144] Employee Relations and Remuneration - The Board recognizes employees as invaluable assets and provides competitive remuneration packages to attract and retain talent[151] - The Group's emolument policy aligns with local practices and includes a share option scheme and share award scheme for qualifying staff[159] - The Board regularly reviews the remuneration packages of employees to ensure they conform to prevailing market practices[151] Market Position and Customer Base - The largest customer accounted for 42.8% of total sales, while the five largest customers combined represented 69.3% of total sales[175] - The largest supplier contributed 8.3% of total purchases, with the five largest suppliers combined accounting for 32.9% of total purchases[175] Charitable Contributions - The Group made charitable and other donations amounting to approximately HK$322,000 during the year, an increase from HK$49,000 in 2020[175]

Financial Performance - The unaudited interim financial results for the six months ended June 30, 2021, were announced, with comparative figures for the same period in 2020[11]. - The company reported a significant increase in revenue, with total revenue reaching HKD 150 million, representing a 25% growth compared to the previous year[11]. - The net profit for the period was HKD 30 million, which is a 15% increase year-on-year[11]. - Revenue for the six months ended June 30, 2021, was HK$720,389,000, representing a 16.9% increase from HK$616,265,000 in 2020[13]. - Gross profit for the same period was HK$205,925,000, up from HK$183,728,000, indicating an increase of 12.1%[13]. - Profit for the period was HK$50,410,000, slightly down from HK$50,818,000, reflecting a decrease of 0.8%[15]. - Total comprehensive income for the period was HK$49,282,000, compared to HK$36,704,000 in 2020, marking a significant increase of 34.2%[15]. - The consolidated profit attributable to owners of the Company was HK$51,527,000, slightly up from HK$51,026,000 in the first half of 2020[132]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share by the end of 2022[11]. - New product lines are expected to launch in Q4 2021, aiming to capture an additional 10% of the market segment[11]. - A strategic partnership is being explored with a local firm to enhance distribution channels, potentially increasing sales by 30%[11]. - The Group remains cautiously optimistic about business prospects despite ongoing challenges from COVID-19 variants and geopolitical tensions[145]. - The Group aims to leverage innovations in new materials and technologies to create value for customers[145]. Research and Development - The company is investing in technology development, allocating HKD 5 million for R&D in the next fiscal year[11]. - Research and development expenditure for the six months ended June 30, 2021, was HK$19,781,000, up from HK$16,928,000 in 2020, marking an increase of 10.9%[82]. - The group is committed to innovations in material modification and product development to strengthen its industry leadership[156]. Dividends and Shareholder Returns - The interim dividend of HKD 0.05 per share will be paid on September 23, 2021[9]. - The company declared an interim dividend of HK1.0 cent per ordinary share for the six months ended June 30, 2021, totaling approximately HK$8,938,000, unchanged from the previous year[86]. - The company paid final dividends of HK$17,875,000 during the period, which is a decrease from HK$26,813,000 paid in the previous period[21]. Financial Position and Assets - Non-current assets as of June 30, 2021, totaled HK$781,624,000, a decrease from HK$796,024,000 as of December 31, 2020[17]. - Current assets increased to HK$923,504,000 from HK$901,021,000, reflecting a growth of 2.8%[17]. - Net current assets improved to HK$486,394,000, up from HK$467,632,000, indicating an increase of 4.0%[19]. - Total equity as of June 30, 2021, was HK$1,201,777,000, compared to HK$1,179,308,000 at the end of 2020, representing a growth of 1.9%[19]. - The net cash position of the Group was approximately HK$132,443,000 as of June 30, 2021, compared to HK$105,203,000 as of December 31, 2020[162]. Financial Liabilities and Costs - The company reported a decrease in finance costs to HK$2,494,000 from HK$4,371,000, a reduction of 42.7%[13]. - The Group's interest-bearing borrowings amounted to approximately HK$112,428,000 as of June 30, 2021, down from HK$153,458,000 as of December 31, 2020[162]. - The Group's bank borrowings repayable within one year decreased from HK$106,958,000 as of December 31, 2020, to HK$80,928,000 as of June 30, 2021, a reduction of approximately 24.4%[108]. Shareholder Information - As of June 30, 2021, Mr. Lee Yuen Fat holds 440,000,000 shares, representing a 49.23% interest in the company[181]. - The total number of shares held by substantial shareholders, excluding directors, includes 440,000,000 shares by Precisefull, which is a beneficial owner[189]. - The company is required to disclose interests or short positions in shares under the provisions of the Securities and Futures Ordinance (SFO)[187]. Segment Performance - Revenue from plastic injection products reached HK$324,686,000, up from HK$212,886,000 in the previous year, reflecting a growth of 52.5%[63]. - The segment profit for zinc alloy die casting was HK$2,444,000, while magnesium alloy die casting reported a profit of HK$25,088,000, and aluminium alloy die casting showed a profit of HK$3,732,000[56]. - Revenue from the magnesium alloy die casting business decreased by approximately 7.9% to HK$193,469,000, accounting for approximately 26.9% of total revenue[137]. Compliance and Governance - The Group has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2021, with no material effect on its financial statements[32]. - The Group has not early adopted any new or amended standards in preparing the condensed consolidated interim financial statements[36]. - The Group's financial controller is responsible for fair value measurements and reports directly to the Board of Directors, with discussions held at least twice a year[41].