Financial Performance - For the fiscal year ending December 31, 2024, the group's revenue decreased by 7.1% to HKD 10,427.1 million from HKD 11,219.4 million in 2023[4] - Gross profit also fell by 7.1%, amounting to HKD 4,764.5 million compared to HKD 5,130.3 million in the previous year[4] - The loss attributable to equity holders was HKD 70.4 million, a reduction of 40.8% from HKD 119.0 million in 2023[4] - Adjusted EBITDA decreased by 3.3% to HKD 908.4 million from HKD 939.1 million year-on-year[4] - Clarks brand revenue declined by 6.6% to HK$9,007,555, accounting for 86.3% of total revenue[49] - Bossini's revenue decreased by 25.3% to HK$455,563, representing 4.4% of total revenue[49] - Overall revenue for the Group fell by 7.1% to HK$10,427,051 compared to HK$11,219,416 in 2023[49] - The Group's gross profit for 2024 was HK$4,764.5 million, a decrease of 7.1% from HK$5,130.3 million in 2023, consistent with the revenue decline[59] - The adjusted net profit of Li Ning Co for the year amounted to HK$3,291.4 million, representing a year-on-year decrease of 27.1% from HK$4,512.9 million in 2023[79] - The Group shared profits less losses of associates and joint ventures amounting to HK$384.4 million, down from HK$527.2 million in 2023, primarily due to the change in reporting period for Li Ning Co[81] Operational Challenges - The decline in revenue was primarily due to weak consumer sentiment in Europe and the US, influenced by high inflation and living costs[5] - The company anticipates ongoing challenges in the retail market due to persistent economic uncertainties and potential inflationary pressures[21] - The Group has observed cautious consumer behavior and a decline in consumption frequency in major markets, yet the pursuit of a high-quality life persists among consumers[22] - The company is focusing on product and channel repositioning, including the closure of underperforming retail stores, particularly affecting the bossini brand[5] - The company undertook brand optimization and cost reduction measures to enhance operational efficiency, although these did not lead to profitability in the fiscal year[6] Strategic Initiatives - The Group aims to prudently promote brand transformation and repositioning to meet changing consumer preferences and behaviors[30] - The Group has actively accelerated brand repositioning to provide more suitable products and better services, aiming to increase market share[24] - Clarks, the Group's primary revenue source, focused on cost reduction and efficiency improvement to stabilize market share amid sluggish consumption in Europe and the US[24] - The Group's strategic initiatives included developing "China for China" products to cater to local consumer needs[35] - The establishment of a joint venture with LionRock Capital aims to expand into the outdoor sports market in Greater China[40] Cost Management - Selling and distribution expenses decreased by 16.8% to HK$3,815.1 million, primarily due to better cost control and closure of inefficient retail stores[64] - Administrative and other operating expenses decreased by 4.9% to HK$1,523.7 million, mainly due to reduced staff costs from organizational restructuring[68] - The Group maintained stable cash flow and reduced losses through strict cost control and resource allocation[34] Market Expansion - The Group opened several concept and direct-operated stores in the Asia Pacific region to enhance Clarks' market presence[35] - Bossini launched new products integrating cycling elements and urban light-sport styles, establishing a strategic partnership with the Chinese National Cycling Team[25] - The Italian luxury brand testoni successfully launched its first women's footwear and handbag collections, with plans to open a global flagship store in Milan in the first half of 2025[26] Financial Position - The Group's net assets value decreased from HK$9,056.4 million as at 31 December 2023 to HK$8,197.2 million as at 31 December 2024[104] - Current assets decreased by HK$963.3 million from HK$5,966.6 million at the beginning of the year to HK$5,003.3 million at year-end, with significant declines in cash and bank balances from HK$1,283.6 million to HK$757.3 million[106] - Total current liabilities decreased by HK$326.8 million or 8.6% to HK$3,476.4 million, primarily due to reductions in accruals and trade payables[107] - The Group's banking facilities increased to approximately HK$2,589.5 million, with HK$613.1 million utilized as of December 31, 2024[115] Governance and Management - The company is expanding its board with independent directors to enhance governance and strategic decision-making processes[191] - The appointment of independent directors reflects the company's commitment to maintaining high standards of corporate governance and independent judgment[190] - The company is actively seeking to enhance its strategic capabilities through the addition of experienced professionals to its board[195] - The company has a strong board with members holding advanced degrees, including an MBA from Tsinghua University and a PhD from Wharton School, indicating a high level of academic and professional expertise[194]

VIVA GOODS COMPANY LIMITED 非 凡 領 越 有 限 公 司 (Incorporated In The Cayman Islands With Limited Liability) (於開曼群島註冊成立之有限公司) Stock Code 股份代號：933 INTERIM REPORT 2024 中期報告 Financial Review 財務回顧 Financial Review 財務回顧 RESULTS Revenue Breakdown by segment 業績 收益 按分部劃分 | --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------|----------------------------------|--------------------------------------------------|----------------------------------------------------------------|--------- ...

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分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。 VIVA GOODS COMPANY LIMITED 非凡領越有限公司 （於開曼群島註冊成立之有限公司） （股份代號：933） 二零二四年中期業績公告 非凡領越有限公司（「本公司」，連同其附屬公司「本集團」）董事（「董事」）會（「董事會」）宣佈本集團 截至二零二四年六月三十日止六個月之未經審核綜合業績。 | --- | --- | --- | --- | |--------------------------|-----------------------------------|------------|----------| | | | | | | 財務摘要 | | | | | | 截至六月三十日止六個月 二零二四年 | 二零二三年 | | | | 千港元 | 千港元 | 變動 (%) | | 收益 | 5,099,917 | 5,444,252 | (6.3%) | | 毛利 | 2,372,059 ...

Economic Environment - The year 2023 was challenging for major economies, particularly in the UK and Europe, due to high inflation and interest rates, leading to depressed consumer sentiment [9]. - The economic growth rate in Europe and the United States is expected to slow down to 1.4% in the coming year, while the Asia-Pacific region is projected to grow at 4.2% [13]. - The global economy's growth rate is forecasted at 2.9% for the upcoming year [13]. - The overall retail environment is expected to remain challenging in 2024, with cautious consumer spending anticipated due to economic headwinds [19]. Retail Industry Performance - The retail industry has weakened, with various brands experiencing inventory accumulation as a result of decreased consumer purchasing power [9]. - The retail industry has been significantly impacted by inflation and high interest rates, leading to excessive inventory among many brands [14]. - Clarks' direct sales channel revenue was lower than expected due to high inflation and interest rates, necessitating impairment on right-of-use assets and property, plant, and equipment [16]. - The increase in Bossini's revenue was partially offset by a decrease in online channel business due to the consolidation of traditional e-commerce platforms in the PRC [25]. Company Strategy and Development - The company has focused on cost reduction and efficiency improvements to maintain stable cash flow and ensure sustainable business development [9]. - The Group aims to develop its international consumer goods business sustainably, focusing on the China market and overseas presence [13]. - The Group plans to open more directly-operated stores in first-tier cities to increase market penetration and build a young, fashionable brand image [11]. - The Group will continue to seek quality merger and acquisition opportunities to enrich its brand portfolio [15]. Financial Performance - The total revenue for the Group was HK$11,219,416, a 62.6% increase from HK$6,900,390 in 2022 [22]. - Clarks revenue reached HK$9,646,492, accounting for 86.0% of total revenue, representing a 79.1% increase from HK$5,386,883 in 2022 [22]. - Bossini generated revenue of HK$609,502, which is 5.4% of total revenue, showing a 2.7% increase from HK$593,509 in 2022 [22]. - The Group's gross profit for the year was HK$5,130.3 million, representing a 62.3% increase from HK$3,160.6 million in 2022, consistent with revenue growth [27]. Brand and Product Development - The Group increased its holdings in the Clarks brand to 51%, becoming the largest shareholder [11]. - The rebranding program for Bossini has been implemented, focusing on a new brand positioning with an emphasis on cycling [11]. - Clarks has realigned its products and channels, enhancing online shopping platforms in European and American markets to drive online sales [11]. - The new brand bossini.X will focus on sports outerwear and light outdoor designs to attract energetic young consumers in 2024 [11]. Operational Efficiency - Inefficient stores in Mainland China will be closed to enhance operational efficiency while deploying channels suitable for new product positioning [11]. - The Group anticipates that restructuring expenses incurred by Clarks will lead to reduced operational costs and improved profitability in 2024 [16]. - The Group is focused on prudent resource deployment and cost control to maintain stable cash flow amid market uncertainties [19]. Corporate Governance and Leadership - Mr. Li Ning has been the chairman and CEO since June 2010, overseeing overall management and strategic development of the Group [48]. - The Group's remuneration policy is supported by professional consultants to ensure competitiveness and business growth [46]. - The Board consists of three executive directors, three non-executive directors, and four independent non-executive directors, ensuring a balanced composition [110]. - The Company is committed to high standards of corporate governance, with a detailed report included in the annual report [99]. Employee and Workforce Management - Staff costs for the year ended December 31, 2023, amounted to HK$2,249.3 million, up from HK$1,398.6 million in 2022, with approximately 5,400 full-time employees [46]. - The total number of staff increased to 762 in 2023, up from 737 in 2022, reflecting a growth of approximately 3.4% [164]. - The company implemented family-friendly measures, including breastfeeding rooms and kindergartens, to support work-life balance for employees [162]. - The company has established internal policies to promote equity, diversity, and inclusion, ensuring a discrimination-free work environment [162]. Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG governance is overseen by the Board, which is responsible for formulating and reviewing ESG strategies and objectives [140]. - The Group emphasizes compliance with the HKEX's "Guidelines on Climate Disclosures" in managing climate-related risks [145]. - The Group has established a robust risk management and internal control system that incorporates ESG-related risks, including climate change and public health [145]. - The Group aims to enhance compliance and integrated ESG governance through stakeholder engagement activities [142]. Supply Chain Management - The Group emphasizes sustainable supply chain management by evaluating suppliers based on environmental and social performance indicators [194]. - Clarks has implemented a product quality control system to monitor social and environmental impacts along the supply chain [194]. - The Group prioritizes cooperation with local suppliers to support the local economy and promote green procurement [196]. - The total number of suppliers as of the end of the reporting period is 3,101 [199].

Financial Performance - The company's revenue for the fiscal year ending December 31, 2023, was HKD 11,219,416, representing a 62.6% increase from HKD 6,900,390 in 2022[3]. - Gross profit for the same period was HKD 5,130,259, up 62.3% from HKD 3,160,589 in the previous year[3]. - The company reported a loss attributable to equity holders of approximately HKD 118.99 million, a shift from a profit of HKD 850.4 million in 2022[4]. - Adjusted EBITDA for the fiscal year was HKD 936,235, reflecting a 10.6% increase from HKD 846,653 in 2022[3]. - The increase in revenue and gross profit was primarily due to the acquisition of C&J Clark (No 1) Limited, completed in July 2022, which contributed to the consolidated financial performance[4]. - The Group's consolidated revenue for the year ended 31 December 2023 was HK$11,219.4 million, an increase of 62.6% from HK$6,900.4 million in 2022, primarily due to the full-year impact of the consolidation of Clark Group's financial results[30]. - The Group's gross profit for the year was HK$5,130.3 million, representing a 62.3% increase from HK$3,160.6 million in 2022, consistent with revenue growth[34]. - Clarks business contributed 86.0% of the overall revenue, with revenue increasing by 79.1% to HK$9,646.5 million compared to HK$5,386.9 million in 2022[30]. - Bossini business accounted for 5.4% of the overall revenue, with a revenue increase of 2.7% to HK$609.5 million from HK$593.5 million in 2022, driven by improvements in the retail business in Hong Kong[31]. Market Challenges - The company faced significant challenges in the retail market, particularly in the UK and US, leading to higher impairment of right-of-use assets and property, plant, and equipment[4]. - In 2023, the Group faced a challenging economic environment, particularly in the UK and Europe, due to high inflation and interest rates, leading to a decline in consumer sentiment and retail industry weakness[15]. - Clarks' direct sales channel revenue was lower than expected due to high inflation and interest rates, necessitating impairment on right-of-use assets and property, plant, and equipment[22]. - The retail environment is expected to remain challenging in 2024, with consumers cautious about spending due to economic uncertainties[25]. Strategic Initiatives - The company is restructuring its operations to enhance profitability, including job cuts to streamline business[5]. - Clarks is rebuilding its online shopping platform in Europe and the US to boost future online sales and increase e-commerce revenue share[5]. - The Group aims to enhance operational efficiency by closing inefficient stores in Mainland China while accelerating the deployment of channels suitable for new product positioning[17]. - The Group is exploring potential merger and acquisition opportunities to enrich its brand portfolio and strengthen its position as an international brand operator[17]. - The Group plans to open more directly-operated stores in first-tier cities like Beijing and Shanghai to enhance market penetration and build a youthful brand image[17]. Brand Development - The Clarks brand has implemented a "China for China" strategy, launching its first batch of products designed for Chinese consumers during the year[17]. - The new brand bossini.X will focus on sports outerwear and light outdoor designs in 2024, targeting energetic young consumers with professional sports technology fabrics[17]. - The Group aims to develop its international consumer goods business sustainably, focusing on the China market and overseas markets[19]. - The Group's sports experience business recorded a slight profit and established three new sports centers and two ice skating rinks in 2023[25]. Corporate Governance - The Group is committed to achieving and maintaining a high standard of corporate governance, with a detailed report provided in the annual report[105]. - The Board consists of three executive directors, three non-executive directors, and four independent non-executive directors, ensuring a balanced composition[116]. - The Company adheres to the Corporate Governance Code, ensuring compliance and ethical standards in its operations[115]. - The Company provided training on directors' duties and corporate governance to ensure compliance with legal and regulatory requirements[121]. Employee Engagement and Diversity - The total number of staff increased to 762 in 2023, up from 737 in 2022, representing a growth of 3.4%[170]. - The number of male employees is 373, while female employees total 389, indicating a gender distribution of approximately 49% male and 51% female[170]. - The company aims to maintain the current Board composition to achieve board diversity objectives in 2024[126]. - The company is committed to promoting gender diversity at all levels, including through diversity courses, staff training, and recruitment[128]. Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG governance is overseen by the Board, which is responsible for formulating and reviewing ESG strategies and objectives[146]. - The Group emphasizes compliance with the HKEX's "Guidelines on Climate Disclosures" in managing climate-related risks[151]. - The Group has established a robust risk management and internal control system that incorporates ESG-related risks, including climate change and public health[151]. - The Group welcomes feedback on its ESG performance and disclosures via email or phone[142]. Financial Management - The Group recorded a net cash inflow from operations of HK$631.9 million for the current year, a significant increase from HK$74.9 million in 2022[45]. - Net cash outflows from investing activities amounted to HK$398.5 million in 2023, compared to cash inflows of HK$969.5 million in 2022[45]. - The total fee paid to PricewaterhouseCoopers for audit services was HK$26.2 million, and for non-audit services was HK$1.8 million for the year ended December 31, 2023[131]. Risk Management - The Group maintains a framework for handling and disseminating inside information to ensure confidentiality until appropriate disclosure[132]. - The Group performs ongoing and periodic monitoring of risks and ensures appropriate internal control procedures are in place[132]. - The Group has developed an Anti-Corruption and Anti-bribery Commitment, included in the Code of Business Conduct, to combat corruption and malfeasance[195]. Shareholder Communication - The Company maintains a corporate website (www.vivagoods.hk) for timely communication of business developments, financial information, and corporate governance practices[134]. - The Company encourages all shareholders to attend general meetings for effective dialogue with the Board[134]. - Shareholder communications are primarily conducted through financial reports, general meetings, disclosures on the Stock Exchange website, and the Company's website[134].

Financial Performance - For the six months ended June 30, 2023, the consolidated revenue increased from HK$755.2 million to HK$5,444.3 million, representing a growth of 620.9%[4] - Gross profit for the same period rose to HK$2,491.0 million, an increase of HK$2,239.6 million or 890.9% compared to the previous year[4] - A net profit attributable to equity holders of HK$131.9 million was recorded, a turnaround from a net loss of HK$31.7 million in the prior year, representing an increase of HK$163.6 million[8] - The significant revenue and profit growth were primarily driven by the expansion of the multi-brand apparel and footwear business, including the acquisition of Clark Group[4] - The Group's overall revenue increased significantly by 620.9% to approximately HK$5.44 billion in the first half of 2023, primarily due to the acquisition of Clarks[21] - Clarks recorded revenue of HK$4.67 billion in the first half of 2023, accounting for 85.8% of the Group's total revenue[23] - The Group turned around to a profit in the first half of 2023, driven by the consolidation of Clarks' profits and reduced losses from other consumer goods brands[21] - Revenue for the six months ended June 30, 2023, was HK$5,444,252,000, a significant increase from HK$755,238,000 in the same period of 2022, representing a growth of approximately 620%[33] - Profit for the period was HK$85,834,000, a turnaround from a loss of HK$63,890,000 in the prior year[33] Expenses and Costs - Selling and distribution expenses increased to HK$1,951.2 million, up HK$1,626.7 million, primarily due to the acquisition of Clark Group[4] - Administrative expenses totaled HK$775.7 million, an increase from HK$280.8 million, largely due to the acquisition of Clark Group and a donation of HK$20.0 million[5] - Finance costs rose to HK$62.4 million from HK$13.1 million, mainly due to increased interest expenses from bank borrowings and lease liabilities[7] - Staff costs for the six months ended June 30, 2023, amounted to HK$1,154.3 million, a significant increase from HK$250.7 million in the corresponding period in 2022[18] - Selling and distribution expenses increased to HK$1,951,155,000 from HK$324,498,000, reflecting a rise in operational costs[33] Assets and Liabilities - As of June 30, 2023, the Group's net assets decreased to HK$9,860.0 million from HK$10,998.2 million as of December 31, 2022, representing a decline of approximately 10.4%[15] - Total non-current assets increased from HK$8,796.6 million to HK$9,012.0 million, primarily due to the addition of property, plant, and equipment[15] - Net current assets decreased by HK$981.9 million or 23.1% compared to December 31, 2022, mainly due to cash outflow from the acquisition of a 49% interest in Lionrock Capital Partners QiLe Limited for approximately HK$1,084.7 million[15] - Cash and bank balances, including restricted balances, totaled HK$1,664.7 million as of June 30, 2023, down from HK$2,998.4 million as of December 31, 2022[16] - The current ratio as of June 30, 2023, was approximately 1.9, slightly down from 2.0 as of December 31, 2022, indicating a stable liquidity position[16] Acquisitions and Investments - The Group completed the acquisition of Clarks and Amedeo Testoni, expanding its portfolio with high-end luxury brands and increasing its market presence in Europe, Japan, and South Korea[10] - The acquisition of the remaining 49% interest in Viva Qile Limited was completed in late January 2023, increasing the Group's effective interest in Clark Group from 26% to 51%[19] - The cash consideration for the acquisition of non-controlling interests was HK$1,084,658,000, with a corresponding non-controlling interest adjustment of HK$1,301,558,000[136] Market and Strategic Initiatives - The Group aims to establish an integrated sports platform to maximize the commercial value of its sports resources and promote social participation in sports activities[12] - The Group is investing in potential sports destination projects to promote healthy living and sports awareness in China, capitalizing on the growing popularity of physical fitness[12] - The Group plans to optimize retail channels in the UK and expand its wholesale business in Europe and the U.S. to increase market penetration[23] - The Group aims to enhance Clarks' brand awareness in Greater China by developing products tailored to the local market and optimizing distribution channels[23] Shareholder Information - During the six months ended June 30, 2023, 35,848,000 ordinary shares were issued for a total consideration of HK$24.0 million[16] - The rights issue completed on April 28, 2023, resulted in the issuance of 852,362,086 rights shares, generating gross proceeds of approximately HK$315 million[19] - The Group's interest in Bossini increased from approximately 56.41% to approximately 62.91% following the rights issue[19] Corporate Governance - The company has complied with the Corporate Governance Code during the six months ended June 30, 2023[183] - The Audit Committee comprises three independent non-executive Directors and one non-executive Director[184] - The company is committed to high standards of corporate governance and has maintained compliance with the relevant code provisions[183] Future Outlook - Future outlook includes continued investment in new product development and market expansion initiatives to drive revenue growth[68] - The Group will continue to reduce costs and increase efficiency to mitigate the negative impacts of inflation and exchange rate fluctuations[27]

Financial Performance - The consolidated revenue for the six months ended June 30, 2023, increased to HK$5,444.3 million, representing a 620.9% increase from HK$755.2 million in the same period last year[2]. - Gross profit for the same period was HK$2,491.0 million, up 890.9% from HK$251.4 million in the prior year[8]. - Profit attributable to equity holders turned from a loss of HK$31.7 million in the first half of 2022 to a profit of HK$131.9 million in the first half of 2023[3]. - Other income and net losses for the period amounted to gains of HK$2.3 million, compared to losses of HK$27.5 million in the same period last year[8]. - For the six months ended June 30, 2023, the Group recorded a net profit attributable to equity holders of HK$131.9 million, compared to a net loss of HK$31.7 million for the same period in 2022, representing an increase of HK$163.6 million[12]. - The Group shared profits less losses of associates and joint ventures amounting to HK$369.0 million for the six months ended June 30, 2023, an increase from HK$305.0 million in the corresponding period in 2022[12]. - The multi-brands apparels and footwear segment generated revenue totaling HK$5,179.2 million, a significant increase of HK$4,686.9 million compared to HK$492.3 million in the same period last year, primarily due to the acquisition of Clark Group[14]. - The acquisition of Clark Group contributed HK$4,670.0 million to the Group's revenue during the period[14]. - The segment reported a loss of HK$151.3 million, an improvement from a loss of HK$248.4 million in the corresponding period in 2022, attributed to slower-than-expected economic recovery post-pandemic[14]. Expenses and Costs - Selling and distribution expenses increased to HK$1,951.2 million, up HK$1,626.7 million from HK$324.5 million in the prior year, primarily due to the acquisition of Clark Group[8]. - Administrative expenses for the period were HK$775.7 million, an increase from HK$280.8 million in the previous year, mainly due to the acquisition of Clark Group and a donation of HK$20.0 million[9]. - Finance costs rose to HK$62.4 million from HK$13.1 million in the prior year, attributed to increased interest expenses from bank borrowings and lease liabilities[9]. - Staff costs amounted to HK$1,154.3 million, significantly up from HK$250.7 million in the corresponding period of 2022[22]. Assets and Liabilities - As of June 30, 2023, the Group's net assets decreased to HK$9,860.0 million from HK$10,998.2 million as of December 31, 2022, reflecting a decline of 10.4%[19]. - Total non-current assets increased from HK$8,796.6 million to HK$9,012.0 million, a rise of 2.4% due to additions in property, plant, and equipment[19]. - Net current assets decreased by HK$981.9 million or 23.1% compared to December 31, 2022, primarily due to cash outflow from the acquisition of a 49% interest in Lionrock Capital Partners QiLe Limited for approximately HK$1,084.7 million[19]. - Cash and bank balances, including restricted balances, totaled HK$1,664.7 million as of June 30, 2023, down from HK$2,998.4 million at the end of 2022, a decrease of 44.4%[20]. - The current ratio as of June 30, 2023, was approximately 1.9, slightly down from 2.0 as of December 31, 2022[20]. - The Group's total liabilities decreased to HK$1,084,658,000 as of June 30, 2023, compared to HK$1,301,558,000 in the previous year, indicating improved financial health[51]. Strategic Developments - The Group successfully transitioned from GEM to the Main Board of the Hong Kong Stock Exchange in June 2023, providing a broader capital platform for future sustainable development[4]. - Clarks continues to consolidate and expand its business in Europe and the United States, while developing products tailored for the Chinese market[4]. - The Group's strategy focuses on establishing an integrated sports platform and expanding sports destination projects to promote healthy living in China[16]. - The Group plans to optimize retail channels in the UK and expand its wholesale business in Europe and the U.S. to increase market penetration[27]. - The Group will enhance its e-commerce business by renovating its online platform and adjusting its product structure to improve profit margins[27]. Shareholder Information - The rights issue completed on April 28, 2023, raised approximately HK$315 million, with 852,362,086 rights shares issued[23]. - Following the rights issue, the Group's interest in Bossini increased from approximately 56.41% to approximately 62.91%[23]. - The acquisition of the remaining 49% interest in Viva Qile Limited was completed in January 2023, increasing the Group's effective interest from 26% to 51%[22]. - The Group's issued and fully paid ordinary shares increased to 9,716,261,727 as of June 30, 2023, from 9,680,413,727 as of December 31, 2022[128]. Corporate Governance - The company has complied with the Corporate Governance Code during the six months ended June 30, 2023[187]. - The Audit Committee comprises three independent non-executive Directors and one non-executive Director[189]. - The company has adopted the Model Code for dealing in securities by the Directors, confirming compliance[185]. - Mr. Li Ning holds both the positions of chairman and chief executive officer, which the Board believes ensures effective business planning[187].