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].

Financial Performance - Revenue for 2020 was HK$1,469,237, a decrease of 5.5% from HK$1,554,364 in 2019[9] - Profit attributable to owners of the Company increased to HK$123,991, up 40% from HK$88,705 in 2019[9] - EBITDA for 2020 was HK$252,302, representing a 25% increase from HK$201,650 in 2019[9] - Basic earnings per share rose to 13.87 HK cents, compared to 9.92 HK cents in 2019, marking a 39.5% increase[9] - Total dividends per share increased to 4.0 HK cents, up from 2.0 HK cents in 2019, reflecting a dividend payout ratio of 28.8%[9] - The Group's gross profit increased by approximately 4.8% to HK$447,303,000, with a gross profit margin of approximately 30.4% compared to 27.4% in 2019[53] - The Group's overall revenue for the year ended December 31, 2020, decreased by approximately 5.5% to HK$1,469,237,000 compared to HK$1,554,364,000 in 2019[53] - The consolidated profit attributable to owners of the Company increased by 39.8% year-on-year to HK$123,991,000 from HK$88,705,000 in 2019[53] Business Segments - Revenue by business segments showed that magnesium alloy die casting accounted for 28.4% of total revenue in 2020, down from 31.9% in 2019[17] - Aluminium alloy die casting represented 53.3% of total revenue in 2020, compared to 46.0% in 2019, indicating a growth in this segment[17] - Revenue from the plastic injection moulding business segment increased by approximately 9.6% to HK$783,500,000, accounting for approximately 53.3% of the Group's overall revenue[58] - Revenue from the magnesium alloy die casting business dropped by approximately 15.9% to HK$417,495,000, accounting for approximately 28.4% of the Group's overall revenue[59] - The revenue of the aluminium alloy die casting business decreased by approximately 19.8% to HK$112,859,000 compared to HK$140,665,000 in 2019, accounting for about 7.7% of the Group's overall revenue[60][63] - The zinc alloy die casting business revenue decreased by approximately 29.8% to HK$111,498,000, representing 7.6% of the Group's overall revenue, down from 10.2% in 2019[65][68] - Revenue from other businesses dropped by approximately 0.2% to HK$43,885,000, accounting for about 3.0% of the Group's overall revenue, slightly up from 2.8% in 2019[66][69] Operational Efficiency and Innovations - The Group's operational efficiency and gross profit margin improved due to resource integration and optimization of information systems, leading to reduced manufacturing overhead[29] - The Group has developed new materials with high efficiency on heat dissipation, successfully applied to notebook bottom casings, enhancing product service life and stability[36] - The Group's patented Micro-arc Composite Ceramic Technology significantly enhanced corrosion resistance in road wheel production, surpassing aluminum wheels[40] - The "Metal Liquid Die Casting Cum Forging Dual Forming Method" won the "Asia International Innovative Invention Award" in November 2020, recognizing the Group's innovative technology efforts[40] - The Group aims to expedite the implementation of "Industry 4.0" in its production bases to improve production efficiency through the Industrial Internet of Things (IIoT)[47] Market Strategy and Growth - The Group plans to capture potential growth in the Chinese market, focusing on domestic consumption and innovation as part of China's "Dual Circulation Strategy"[35] - The Group anticipates a recovery trend across different industries in 2021 as vaccination programs are implemented and the market adapts to new norms[67][70] - The Group seeks investment and development opportunities to expand its existing business portfolio and revenue sources[81] Human Resources and Management - The Group employed approximately 4,400 full-time employees as of December 31, 2020, an increase from 3,500 in 2019[88] - The Group recognizes employees as invaluable assets and provides competitive remuneration packages to attract and retain talent[136] - The Group's emolument policy aligns with local practices, including a share option scheme and share award scheme for qualifying staff[144] - The Group has joined a mandatory provident fund scheme for all employees in Hong Kong, with contributions required from both employer and employees[145] Governance and Compliance - The Board reported no material non-compliance with applicable laws and regulations that significantly impacted the Group's business and operations during the year[135] - The Group's business operations complied with relevant laws and regulations that significantly impact the Group as a whole during the year[138] - The Company has maintained directors' liability insurance throughout the year to provide appropriate cover for its directors[179] Financial Position and Liquidity - As of December 31, 2020, the Group had bank and cash balances of approximately HK$258,661,000, a decrease from HK$264,087,000 in 2019[80] - The Group's interest-bearing borrowings totaled approximately HK$153,458,000 as of December 31, 2020, down from HK$259,046,000 in 2019, with all borrowings denominated in Hong Kong dollars and Euros[84] - The net current assets of the Group were approximately HK$467,632,000 as of December 31, 2020, compared to HK$351,936,000 in 2019, resulting in a current ratio of approximately 2.1[84] - The total amount of trade-related financing and revolving loan financing reached HK$80 million, with specific limits including HK$20 million for revolving loans and HK$40 million for financing against unpaid VAT invoices[192] Leadership and Experience - Mr. Lee Yuen Fat, the Chairman, has over 40 years of experience in the die casting industry and holds a master's degree in materials engineering from Yanshan University, China[95] - Mr. Wong Wing Chuen, the Vice Chairman, has over 35 years of experience in die design and manufacturing, overseeing the Group's manufacturing activities[100] - Ms. Chan So Wah, the Director of Operations, has over 35 years of experience in sales, marketing, and management, and was awarded the Asian Outstanding Leadership Award for Women in September 2019[101] - The Group's strategic direction is guided by its experienced board members, ensuring alignment with industry trends and market demands[97] Corporate Social Responsibility - The Group made charitable donations amounting to approximately HK$49,000 during the year, compared to HK$55,000 in 2019[160] - The management is committed to enhancing environmental protection and sustainability through regular reviews of environmental practices and implementing eco-friendly measures[131] - The Group's environmental policy includes strict compliance with laws, establishing an environmental management system, and promoting sustainable development across the supply chain[137]

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$616,265,000, a decrease of 13.5% compared to HK$712,507,000 in the same period of 2019[13]. - Gross profit for the period was HK$170,489,000, representing a gross margin of approximately 27.6%[13]. - Profit for the period increased significantly to HK$50,818,000, compared to HK$14,257,000 in the prior year, marking a growth of 257.5%[13]. - Earnings per share (basic) rose to 5.71 HK cents, up from 1.62 HK cents in the previous year[13]. - Profit from operations was HK$69,605,000, a substantial increase from HK$29,110,000 in the same period of 2019[13]. - Total comprehensive income for the period was HK$36,704,000, compared to HK$19,231,000 in the previous year, representing an increase of 91%[15]. - For the six months ended June 30, 2020, the consolidated profit was HK$50,818,000, a significant increase from HK$14,257,000 in the same period of 2019, representing a growth of 257%[46]. - The consolidated profit attributable to owners of the Company increased by approximately 252.4% to HK$51,026,000 from HK$14,480,000 in the previous year[119]. - The Group's gross profit for the Period grew by 21.0% to HK$170,489,000 compared to HK$140,890,000 in the first half of 2019[119]. - The EBITDA for the Group amounted to HK$111,493,000, an increase from HK$75,209,000 in the same period last year[119]. Cash Flow and Assets - Net cash generated from operating activities for the six months ended June 30, 2020, was HK$119,264,000, an increase of 63.2% compared to HK$73,138,000 in 2019[26]. - Cash and cash equivalents at the end of the period increased to HK$293,583,000 from HK$203,777,000 in 2019, representing a growth of 44.1%[26]. - The Group's cash and cash equivalents at the beginning of the period were HK$262,252,000, showing a solid liquidity position[26]. - The net cash used in investing activities was HK$28,290,000, compared to HK$13,170,000 in the previous year, indicating an increase in investment outflows[26]. - The net cash used in financing activities decreased to HK$57,567,000 from HK$106,713,000 in 2019, reflecting improved cash management[26]. - Non-current assets decreased to HK$702,637,000 from HK$728,579,000 as of December 31, 2019, reflecting a decline of 3.6%[17]. - Current liabilities decreased significantly to HK$405,069,000 from HK$537,157,000, a reduction of 24.6%[19]. - Net current assets improved to HK$436,740,000, up from HK$351,936,000, indicating a growth of 24%[19]. - Bank borrowings reduced to HK$132,143,000 from HK$201,532,000, a decrease of 34.4%[19]. - Total equity increased to HK$1,026,784,000 from HK$1,007,955,000, reflecting a growth of 1.8%[19]. Revenue Breakdown - Revenue from external customers for the six months ended June 30, 2020, totaled HK$616,265,000, with segment profits of HK$72,931,000[41]. - Revenue from die casting products was HK$288,207,000, a decrease of 22.4% from HK$371,242,000 in 2019[52]. - Revenue from the plastic injection moulding business decreased by approximately 8.6% to HK$286,170,000, accounting for approximately 46.4% of the Group's overall revenue[121]. - Revenue from the magnesium alloy die casting business dropped by approximately 9.5% to HK$210,027,000, representing about 34.1% of the Group's overall revenue[122]. - Revenue from the zinc alloy die casting business decreased by approximately 32.2% to HK$47,986,000, accounting for 7.8% of the Group's overall revenue[126]. - Revenue from the aluminium alloy die casting business dropped by approximately 31.3% to HK$48,796,000, representing 7.9% of the Group's overall revenue[126]. - Revenue from other businesses, including trading of lighting products and motor vehicle repairing services, decreased by approximately 9.2% to HK$23,286,000[126]. Strategic Initiatives and Future Outlook - The company aims to enhance its market presence through strategic initiatives and potential acquisitions in the upcoming periods[11]. - The management remains optimistic about future growth prospects and is focused on innovation and technology development[11]. - The Group plans to expand its market share in plastic injection products and precision components through quality products and services[121]. - The Group aims to explore different applications of magnesium alloy, particularly in precision components, automotive, and construction industries to enhance profitability[122]. - The Group is focusing on material and technological innovation, internal optimization, and strong client relationships to enhance profitability and explore potential projects[141]. - The Group will allocate more resources to technology R&D to seize greater opportunities in the market[132]. - The impact of COVID-19 on the Group's financial position and operations remains under evaluation due to the pandemic's dynamic nature[114]. Shareholder Information and Corporate Governance - Mr. Lee Yuen Fat holds a controlling interest in the Company with 480,000,000 shares, representing 53.71% of the total interest[158]. - The Group has not made any material acquisitions or disposals of subsidiaries, associates, or joint ventures for the six months ended June 30, 2020[150]. - The Company has adopted share option and share award schemes to incentivize eligible employees for their contributions[153]. - The Group emphasizes competitive compensation packages, including pension plans and medical benefits, to attract and retain talent[153]. - The Audit Committee, established in June 2007, comprises four independent non-executive directors and is responsible for reviewing financial reports and internal controls[195]. - The Nomination Committee, also established in June 2007, assesses the independence of non-executive directors and makes recommendations for board appointments[196]. - The company has complied with all code provisions set out in the Corporate Governance Code during the review period[193].

Financial Performance - Revenue for 2019 was HK$1,554,364, a decrease of 16.1% from HK$1,852,329 in 2018[27]. - Profit attributable to owners of the Company was HK$88,705, down 21.9% from HK$113,556 in 2018[27]. - Basic earnings per share decreased to 9.92 HK cents from 12.71 HK cents in 2018, representing a decline of 21.8%[27]. - Total dividends per share were 2.0 HK cents, down from 3.5 HK cents in 2018, reflecting a dividend payout ratio of 20.2%[27]. - The Group recorded a 16.1% year-on-year decrease in revenue to HK$1,554,364,000 in 2019, down from HK$1,852,329,000 in 2018[37]. - Profit attributable to owners of the Company dropped by 21.9% year-on-year to HK$88,705,000, compared to HK$113,556,000 in 2018[37]. - The Group's EBITDA amounted to HK$201,650,000, a decrease from HK$221,115,000 in 2018[62]. - The gross profit margin improved to 25.5% in 2019 from 24.2% in 2018 due to increased operational efficiency and automation[63]. - The Group's overall revenue for the year ended December 31, 2019, dropped by approximately 16.1% to HK$1,554,364,000 compared to HK$1,852,329,000 in 2018[61]. Business Segments - Revenue percentage by business segments showed a decline in magnesium alloy die casting from 49.0% in 2018 to 46.0% in 2019[31]. - The plastic injection segment increased its revenue percentage from 8.7% in 2018 to 9.0% in 2019[31]. - The zinc alloy die casting segment's revenue percentage rose from 9.1% in 2018 to 10.2% in 2019[31]. - Revenue from the plastic injection moulding business segment decreased by approximately 21.2% to HK$714,815,000, accounting for approximately 46.0% of the Group's overall revenue[66]. - Revenue from the magnesium alloy die casting business segment dropped by approximately 11.7% to HK$496,168,000, accounting for approximately 31.9% of the Group's overall revenue[67]. - The revenue of the zinc alloy die casting business decreased by approximately 5.7% to HK$158,745,000 in 2019, accounting for about 10.2% of the Group's overall revenue[68][71]. - The aluminium alloy die casting business revenue was approximately HK$140,665,000, reflecting a decrease of about 12.8% and accounting for around 9.0% of the Group's total revenue[73][76]. - Revenue from other businesses, including trading of lighting products and home appliances, decreased by approximately 18.7% to HK$43,971,000[74][77]. Strategic Focus and Future Plans - The company plans to focus on expanding its market presence and enhancing product development in the upcoming year[27]. - The management indicated ongoing investments in new technologies to drive future growth[27]. - The company is exploring potential mergers and acquisitions to strengthen its market position[27]. - The Group aims to expand applications of magnesium alloy in new energy vehicles to provide optimal solutions to customers[67]. - The Group plans to expedite the development of Industry 4.0 data management to enhance production efficiency and mitigate rising labor costs[56]. - The Group is focusing on self-enhancement in material application, precision mould development, technology innovation, product diversification, and internal optimization to prepare for future business opportunities[75][78]. - The Group's commitment to innovation is reflected in its focus on research and development for new business opportunities[139]. Challenges and Risks - The Group faced challenges due to the prolonged US-China trade dispute, which dampened consumer sentiment and demand for products[41]. - The Group is preparing for potential disruptions in the manufacturing supply chain due to geopolitical tensions and trade disputes, collaborating with local partners in selected ASEAN countries for production capability expansion[89]. - The Group has faced various risks and uncertainties, which are outlined in the "Principal Risks and Uncertainties" section of the report[146]. Environmental and Technological Initiatives - The rapid development of 5G technology is expected to significantly increase demand for large complex die-casted parts for communication base stations[43]. - The Group is exploring the application of biocide-free germ-repellent plastic in various fields, including medical and health care, due to the outbreak of the novel coronavirus[47]. - Advanced Out Mold Release (AOMR) technology is being pursued to reduce toxic waste and emissions, reflecting the Group's focus on technological advancements[48]. - The Group will continue to pursue technological innovation, focusing on environmentally-friendly surface finishing technology (AOMR) to reduce toxic waste and emissions[88]. - The management will review and consider implementing further eco-friendly measures to enhance environmental protection and sustainability in operations[147]. Human Resources and Corporate Governance - The Group had approximately 3,500 full-time employees as of December 31, 2019, down from 4,100 in 2018[108]. - The Group provides competitive salary packages, including retirement schemes, medical benefits, and bonuses, to attract and retain high-caliber staff[108]. - The Group has adopted a share option scheme and a share award scheme to incentivize qualifying staff[108]. - The company is focused on maintaining high standards of corporate governance and ethical business practices[125]. - The leadership team is committed to strategic planning and business development to drive future growth[123]. Financial Position and Reserves - As of December 31, 2019, the Group had restricted bank balances and cash balances of approximately HK$264,087,000, an increase from HK$256,123,000 in 2018[95]. - The Group's interest-bearing borrowings as of December 31, 2019, amounted to approximately HK$259,046,000, down from HK$324,702,000 in 2018[95]. - The net current assets of the Group were approximately HK$351,936,000 as of December 31, 2019, compared to HK$283,103,000 in 2018, resulting in a current ratio of approximately 1.7[99]. - As of December 31, 2019, the Company's reserve available for distribution amounted to approximately HK$215,977,000, down from HK$248,451,000 in 2018[172]. - The Group's current assets amounted to approximately HKD 889,093,000, while current liabilities were about HKD 537,157,000, resulting in a current ratio of 1.7[103]. Customer and Supplier Relationships - The largest customer accounted for 36.1% of total sales, while the five largest customers combined represented 76.8%[169]. - The largest supplier contributed 10.2% of total purchases, and the five largest suppliers together accounted for 33.4%[170].

Revenue and Profit Performance - Revenue for the six months ended June 30, 2019, was HK$712,507,000, a decrease of 17.6% compared to HK$864,234,000 in the same period of 2018[12]. - Gross profit for the period was HK$140,890,000, down from HK$174,389,000, reflecting a gross margin decline[12]. - Profit for the period was HK$14,257,000, a decrease of 30.6% from HK$20,584,000 in the prior year[12]. - Basic earnings per share for the period were 1.62 HK cents, down from 2.22 HK cents in 2018[12]. - Segment profit for the reportable segments totaled HK$33,675,000 for the six months ended June 30, 2019, down 30.8% from HK$48,605,000 in the prior year[98]. - The Group's consolidated profit for the period was HK$14,257,000, a decrease of 30.6% from HK$20,584,000 in the same period of 2018[98]. - Profit attributable to owners of the Company for the six months ended June 30, 2019 was HK$14,480,000, down from HK$19,862,000 in 2018, a decrease of 27.3%[128]. Cost Management and Expenses - The company reported finance costs of HK$6,280,000, an increase from HK$5,758,000 in the previous year[12]. - The cost of sales was HK$571,617,000, a reduction from HK$689,845,000, indicating improved cost management[12]. - Interest expenses on bank borrowings rose to HK$6,065,000 for the six months ended June 30, 2019, compared to HK$5,758,000 in 2018, marking an increase of 5.3%[115]. - The Group's total income tax expense for the six months ended June 30, 2019, was HK$8,138,000, slightly down from HK$8,873,000 in 2018, a decrease of 8.3%[118]. Asset and Liability Management - Non-current assets decreased to HK$765,546,000 from HK$785,306,000, a decline of 2.5%[16]. - Current assets decreased to HK$767,810,000 from HK$934,389,000, a decline of 17.8%[16]. - Trade receivables decreased to HK$302,699,000, down 19.6% from HK$376,785,000[16]. - Trade payables decreased to HK$184,941,000, down 30.0% from HK$264,032,000[18]. - Current liabilities decreased to HK$503,528,000 from HK$651,286,000, a decline of 22.7%[18]. - Net assets decreased to HK$945,809,000 from HK$957,860,000, a decline of 1.3%[18]. - The Group's equity attributable to owners decreased to HK$928,321,000 from HK$940,257,000, a decline of 1.3%[18]. Cash Flow and Financing Activities - Net cash generated from operating activities for the six months ended June 30, 2019, was HK$71,091,000, compared to a net cash used of HK$60,761,000 in the same period of 2018[27]. - Net cash used in investing activities was HK$13,170,000 for the six months ended June 30, 2019, a decrease from HK$35,209,000 in 2018[27]. - Net cash used in financing activities amounted to HK$104,666,000 for the six months ended June 30, 2019, compared to net cash generated of HK$19,787,000 in 2018[27]. - Cash and cash equivalents at the end of the period were HK$203,777,000, an increase from HK$172,178,000 at the end of June 30, 2018[27]. Business Operations and Market Strategy - The company has plans for market expansion and new product development, although specific details were not disclosed in the interim report[10]. - Management indicated a focus on improving operational efficiency and cost control strategies moving forward[10]. - The Group plans to strengthen its research and development capabilities to secure more new project orders for plastic injection and precision products[170]. - The Group will continue to implement stringent cost control measures and increase automation in production to enhance operational efficiency[161]. - The Group aims to explore additional applications of magnesium alloy in the automotive and precision component industry to enlarge its market share[171]. - The Group remains confident in its strategies to explore new business opportunities and provide value-added products and services for customers[162]. Financial Reporting Standards and Compliance - The application of HKFRS 15 had no material impact on the Group's opening retained earnings and financial position as of January 1, 2018[37]. - The Group adopted all new and revised Hong Kong Financial Reporting Standards (HKFRSs) effective from January 1, 2019, including HKFRS 16 Leases[43]. - The Group applied HKFRS 16 using the modified retrospective approach, with no restatement of comparative information for 2018[46]. - The Group recognized approximately HK$10,030,000 of right-of-use assets and approximately HK$10,145,000 of lease liabilities as of June 30, 2019, due to the initial application of HKFRS 16[84]. Market Conditions and Future Outlook - The Group expects the global business environment to remain uncertain due to trade tensions and political unease, and will leverage its expertise to mitigate unfavorable market conditions[184]. - The Group is exploring new business opportunities in emerging segments, particularly in lightweight solutions for new energy vehicles[188]. - The Intelligent Foundry Industry Light Alloy Innovation Center commenced operations in January 2018, enhancing the integration of smart technology and industry development[189].