（於香港註冊成立之有限公司） （股份代號：01058） 截至 2025 年 3 月 31 日止三個月 未經審核財務資料 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 NAMYUE HOLDINGS LIMITED 南粵控股有限公司 南粵控股有限公司（「本公司」）董事會（「董事會」）宣佈本公司及其附 屬公司（「本集團」）截至 2025 年 3 月 31 日止三個月之未經審核財務資料 （連同比較數字）。 | 財務摘要 | | | | | --- | --- | --- | --- | | | 截至 3 月 31 | 日止三個月 | | | | 2025 年 | 2024 年 | 變動 | | | (未經審核) | (未經審核) | | | | 千港元 | 千港元 | % | | 收入 | 16,932 | 19,393 | -12.7 | | 本公司股東應佔綜合虧損 | (4,940) | (8,022) | +38.4 | | | 2025 年 3 ...

目錄 | | 頁次 | | --- | --- | | 公司資料 | 2 | | 摘要 | 3 | | 董事長報告 | 4 | | 管理層討論與分析 | 6 | | 董事及高層管理人員之履歷詳情 | 11 | | 董事報告 | 14 | | 企業管治報告 | 23 | | 獨立核數師報告 | 38 | | 經審核財務報表 | | | 綜合損益表 | 41 | | 綜合損益及其他全面收益表 | 42 | | 綜合財務狀況表 | 43 | | 綜合權益變動表 | 44 | | 綜合現金流量表 | 45 | | 綜合財務報表附註 | 46 | 二零二四年年報 南粵控股有限公司 1 公司資料 於2025年3月28日 董事會 執行董事 周昊 （董事長兼董事總經理） 廖思揚 （副總經理） 非執行董事 黃俊峰 曠虎 李潔玉 獨立非執行董事 楊萬里 銅紫荊星章，太平紳士 梁聯昌 楊格 審核委員會 楊格 （主席） 楊萬里 梁聯昌 薪酬委員會 梁聯昌 （主席） 楊萬里 楊格 提名委員會 周昊 （主席） 楊萬里 梁聯昌 楊格 公司秘書 陳妙婷 核數師 中匯安達會計師事務所有限公司 執業會計師 註冊辦事處 | 香港 | | --- ...

Financial Performance - Revenue for the year was HKD 89,099 thousand, a decrease of 2.4% from HKD 91,244 thousand in 2023[3] - The company reported a loss of HKD 33,765 thousand, a 49.2% improvement from a loss of HKD 66,449 thousand in 2023[3] - The group reported a revenue of HKD 89,099,000 for 2024, a slight decrease from HKD 91,244,000 in 2023, representing a decline of approximately 2.4%[16] - Revenue from leather processing sales was HKD 51,337,000 in 2024, down from HKD 82,060,000 in 2023, indicating a significant decrease of about 37.5%[16] - The group's consolidated loss attributable to shareholders for the year ended December 31, 2024, was HKD 33,765,000, a reduction of HKD 32,684,000 or 49.2% compared to 2023[39] - Basic loss per share for 2024 was HKD 0.0628, down from HKD 0.1235 in 2023[32] Assets and Liabilities - Current ratio decreased by 38.0% to 0.67 from 1.08 in 2023[3] - Total assets decreased by 28.3% to HKD 97,154 thousand from HKD 135,537 thousand in 2023[3] - The net asset value per share decreased by 60.0% to HKD 0.04 from HKD 0.10 in 2023[3] - Total liabilities as of December 31, 2024, included a net current liability of approximately HKD 23,987,000, indicating significant uncertainty regarding the company's ability to continue as a going concern[31] Production and Sales - Leather sales volume decreased by 14.1% to 5,343 thousand square feet compared to 2023[3] - The production of cowhide leather decreased by 1,288,000 square feet or 27.9% to 3,325,000 square feet, while the production of grey leather dropped by 1,917 tons or 79.4% to 497 tons[44] - The external processing business saw a significant increase in production, rising by 15,197,000 square feet or 403.3% to 18,965,000 square feet[44] - The revenue from external processing business increased by 311.2% to HKD 37,762,000, while cowhide leather sales dropped by 30.1% to HKD 48,719,000[44] Government Support and Subsidies - The group received government subsidies of approximately HKD 122,000 in 2024, up from HKD 8,000 in 2023, reflecting a significant increase in support[18] Financial Management and Cost Control - The group has strengthened its management processes, including human resources and financial management, to optimize production workflows and reduce overall costs[35] - The group implemented measures to enhance efficiency and reduce costs, including optimizing human resources and production management[47] - The interest expense for the year was HKD 504,000, a decrease of 42.7% compared to the previous year, primarily due to reduced loan amounts[50] Business Strategy and Future Plans - The company is actively exploring new business opportunities to generate profits and expand revenue sources[9] - The group plans to continue transforming its leather business and expand into the Southeast Asian market to enhance revenue and gross profit[36] - The group aims to achieve dual goals of business diversification and profit growth by 2025, optimizing asset allocation[37] Environmental and Operational Improvements - Environmental improvements were made through collaboration with external research institutions to enhance wastewater treatment capabilities and overall production environment[35] - The group implemented various energy-saving measures, achieving significant reductions in water usage by approximately 300 tons per day[43] Inventory and Procurement - The group's comprehensive inventory as of December 31, 2024, was HKD 24,048,000, a decrease of HKD 26,409,000 or 52.3% compared to December 31, 2023[48] - The total procurement amount for the year was HKD 30,898,000, a reduction of 59.9% compared to the same period last year[47] Shareholder Information - The company did not recommend any dividend for the year ending December 31, 2024, consistent with 2023[26] - The company's annual performance announcement will be published on its website and the Hong Kong Stock Exchange website by the end of April 2024[59] - The 2025 Annual General Meeting is scheduled for June 18, 2025, with a suspension of share transfer registration from June 13 to June 18, 2025[58]

Financial Performance - Revenue declined by 2.4% to HKD 89,099 thousand in 2024 from HKD 91,244 thousand in 2023[4] - The company reported a loss of HKD 33,765 thousand in 2024, a 49.2% improvement from a loss of HKD 66,449 thousand in 2023[4] - Basic loss per share improved by 49.1% to HKD (6.28) in 2024 from HKD (12.35) in 2023[4] - The group reported a revenue of HKD 89,099,000 for 2024, a slight decrease from HKD 91,244,000 in 2023, representing a decline of approximately 2.4%[16] - Revenue from leather processing sales was HKD 51,337,000 in 2024, down from HKD 82,060,000 in 2023, indicating a significant decrease of about 37.5%[16] - The group reported a pre-tax loss of HKD 96,148,000 for the cost of goods sold in 2024, compared to HKD 100,586,000 in 2023, a decrease of about 4.4%[20] - The group's consolidated loss attributable to shareholders for the year ended December 31, 2024, was HKD 33,765,000, a reduction of HKD 32,684,000 or 49.2% compared to 2023[39] Asset and Liability Management - Current ratio decreased by 38.0% to 0.67 in 2024 from 1.08 in 2023[3] - Total assets decreased by 28.3% to HKD 97,154 thousand in 2024 from HKD 135,537 thousand in 2023[3] - The net asset value per share decreased by 60.0% to HKD 0.04 in 2024 from HKD 0.10 in 2023[3] - Accounts receivable decreased to HKD 20,839,000 in 2024 from HKD 26,873,000 in 2023, representing a decline of approximately 22.5%[27] - The company reported a net current liability of approximately HKD 23,987,000 as of December 31, 2024, indicating significant uncertainty regarding its ability to continue as a going concern[31] - Accounts payable decreased slightly to HKD 36,759,000 in 2024 from HKD 34,113,000 in 2023[28] - The group's cash and cash equivalents as of December 31, 2024, were HKD 3,419,000, down 52.1% from HKD 7,139,000 on December 31, 2023[49] - The group's interest-bearing loans totaled HKD 8,639,000 as of December 31, 2024, down from HKD 14,811,000 on December 31, 2023[49] - The ratio of interest-bearing loans to equity was 31.2% as of December 31, 2024, compared to 21.9% on December 31, 2023[50] Operational Efficiency - The company has implemented a dual processing model to expand sales channels and improve operational efficiency[34] - The company has focused on enhancing its wastewater treatment capabilities and overall production environment through collaboration with external research institutions[35] - The company has made significant improvements in production conditions, leading to increased output and reduced costs across various areas, including chemical materials and labor[34] - The company has strengthened its management processes, focusing on performance evaluation to optimize production workflows and reduce overall costs[35] - The group's gross profit margin improved from -33.8% in the previous year to 0.4%, indicating a successful turnaround from loss to profit[42] Business Development and Strategy - The company is actively exploring new business opportunities to generate profits and enhance operational cash flow[9] - The group plans to continue transforming and upgrading its leather business, focusing on enhancing production conditions and customer service[36] - The group aims to achieve dual goals of business diversification and profit growth by 2025[37] - The group is actively exploring opportunities in the pet food market, particularly through the development of "dog chew glue" products[36] - The group has successfully obtained the LWG international leather management system certification, enhancing customer confidence and increasing external processing business volume[41] - The group is exploring product diversification opportunities, including the production of dog chew products using by-products from leather processing[46] Employee and Governance - The group has 261 employees as of December 31, 2024, down from 288 employees on December 31, 2023[54] - The company will hold its 2025 Annual General Meeting on June 18, 2025, with a suspension of share transfer registration from June 13 to June 18, 2025[58] - The annual performance announcement for the year ending December 31, 2024, will be published by the end of April 2024, including an Environmental, Social, and Governance report[59] Inventory and Procurement - The group's comprehensive inventory as of December 31, 2024, was HKD 24,048,000, a decrease of HKD 26,409,000 or 52.3% compared to December 31, 2023[48] - The total procurement amount for the year was HKD 30,898,000, a reduction of 59.9% compared to the same period last year[47] Impairment and Losses - The group incurred an impairment loss of HKD 6,232,000 on receivables in 2024, compared to HKD 3,215,000 in 2023, indicating an increase in impairment[19] - The group reported a net impairment loss on property, plant, and equipment of HKD 4,158,000 for the year, compared to HKD 746,000 in 2023[48]

Financial Performance - For the nine months ended September 30, 2024, the company's revenue was HKD 64,193,000, a decrease of 7.3% compared to HKD 69,219,000 for the same period in 2023[2] - The company's attributable consolidated loss was HKD 11,349,000, a reduction of 61.7% from HKD 29,635,000 in the previous year[2] - Total assets as of September 30, 2024, were HKD 117,110,000, down from HKD 135,537,000 as of December 31, 2023[2] - Shareholders' equity decreased to HKD 41,595,000 from HKD 52,911,000 as of December 31, 2023[2] Production and Sales - The total production of cowhide leather was 2,472,000 square feet, a decrease of 35.5% from 3,831,000 square feet in the same period last year[4] - The total sales volume of cowhide leather was 3,789,000 square feet, down 13.2% from 4,365,000 square feet in the previous year[4] - Revenue from cowhide leather sales was HKD 37,046,000, a decline of 32.1% from HKD 54,573,000 in the previous year[5] External Processing Business - The external processing business saw a significant increase in production, reaching 11,975,000 square feet, up 440.4% from 2,216,000 square feet in the same period last year[4] - Revenue from external processing business increased to HKD 24,520,000, a rise of 335.8% compared to HKD 5,626,000 in the same period last year[5] - The company is actively increasing the proportion of external processing business to effectively reduce fixed costs and improve operational efficiency[4]

Financial Performance - The company's unaudited consolidated loss attributable to shareholders for the six months ended June 30, 2024, was HK$5,999,000, a decrease of 72.3% compared to the loss of HK$21,653,000 in the same period last year[4] - The company's gross profit margin improved from -12.1% in the same period last year to 12.7% in the current period, turning from a loss to a profit[5] - Revenue for the first half of 2024 was HK$42.12 million, compared to HK$38.59 million in the same period of 2023, representing a 9.1% increase[20] - Gross profit for the first half of 2024 was HK$5.36 million, a significant improvement from a gross loss of HK$4.67 million in the same period of 2023[20] - Net loss for the first half of 2024 was HK$5.99 million, a substantial reduction from the net loss of HK$21.65 million in the same period of 2023[20] - Basic and diluted loss per share for the first half of 2024 was HK1.12 cents, compared to HK4.02 cents in the same period of 2023[20] - Total comprehensive loss for the first half of 2024 was HK$5.62 million, a significant improvement from the total comprehensive loss of HK$24.90 million in the same period of 2023[22] - The company reported a net loss of HKD 21,653 thousand for the six months ended June 30, 2023, and a further loss of HKD 5,999 thousand for the six months ended June 30, 2024[25] - The company's total comprehensive loss for the six months ended June 30, 2024, was HKD 5,615 thousand[25] - Basic loss per share improved to HKD 0.011 in 2024 from HKD 0.040 in 2023, reflecting a reduced loss of HKD 5,999 thousand compared to HKD 21,653 thousand in the prior year[43] Assets and Liabilities - The unaudited net asset value as of June 30, 2024, was HK$47,296,000, a decrease of HK$5,615,000 from December 31, 2023, and a decrease of HK$47,817,000 from June 30, 2023[4] - Total equity decreased from HKD 120,013 thousand as of January 1, 2023, to HKD 95,113 thousand as of June 30, 2023, and further declined to HKD 47,296 thousand as of June 30, 2024[25] - Net assets as of June 30, 2024, were HK$47.30 million, compared to HK$52.91 million as of December 31, 2023[23] - The company's inventory as of June 30, 2024, was HK$39.61 million, a decrease from HK$50.46 million as of December 31, 2023[23] - Total inventory decreased by 21.5% to HKD 39,606,000 as of June 30, 2024, compared to HKD 50,457,000 at the end of 2023[8] - Property, plant, and equipment decreased by 2.2% to HKD 39,381,000 as of June 30, 2024, from HKD 40,248,000 at the end of 2023[10] - Interest-bearing loans decreased to zero as of June 30, 2024, compared to HKD 14,811,000 at the end of 2023[11] - Interest-bearing bank loans decreased from HKD 14,811,000 as of December 31, 2023, to HKD 0 as of June 30, 2024, with the previous loans secured by bank balances of HKD 25,000 and properties with a total book value of HKD 46,317,000[49] - The company's bank credit line was fully unused at HKD 38,350,000 as of June 30, 2024[11] - The company's issued and fully paid ordinary shares remained unchanged at 538,019,000 shares, with a total value of HKD 75,032,000 as of both June 30, 2024, and December 31, 2023[51] - The company's general reserve fund, which is non-distributable, was established with a reduction in share premium of HKD 133,349,000 in 1996 and further adjustments in subsequent years[52] - A special capital reserve was established with a limit of HKD 150,273,970, and as of June 30, 2024, the reserve had a credit balance of HKD 707,000, up from HKD 598,000 at the end of 2023[54] Cash Flow and Liquidity - Cash and cash equivalents decreased by 56.5% to HKD 3,109,000 as of June 30, 2024, from HKD 7,139,000 at the end of 2023[11] - Net cash inflow from operating activities was HKD 12,075,000, primarily due to a reduction in inventory[11] - Cash and cash equivalents decreased from HKD 7,036 thousand as of June 30, 2023, to HKD 3,109 thousand as of June 30, 2024[26] - Operating cash flow improved from a negative HKD 13,267 thousand in 2023 to a positive HKD 12,075 thousand in 2024[26] - Cash used in investing activities decreased from HKD 3,312 thousand in 2023 to HKD 1,729 thousand in 2024[26] - The company's cash flow from financing activities was negative HKD 14,346 thousand in 2024, compared to a positive HKD 14,584 thousand in 2023[26] - The company's cash and bank balances stood at HKD 3,109 thousand as of June 30, 2024, down from HKD 7,036 thousand as of June 30, 2023[26] Production and Sales - The total production of cattle leather for the period was 1,679,000 square feet, a decrease of 22.6% compared to 2,168,000 square feet in the same period last year[6] - The production of grey leather was 384 tons, a decrease of 51.2% compared to 787 tons in the same period last year[6] - The production of outsourced processing business was 6,312,000 square feet, an increase of 409.0% compared to 1,240,000 square feet in the same period last year[6] - The total sales of cattle leather for the period were 2,798,000 square feet, an increase of 16.2% compared to 2,408,000 square feet in the same period last year[6] - The sales of grey leather were 384 tons, a decrease of 51.2% compared to 787 tons in the same period last year[6] - The sales of outsourced processing business were 6,312,000 square feet, an increase of 409.0% compared to 1,240,000 square feet in the same period last year[6] - The company's consolidated revenue for the period was HK$42,118,000, an increase of 9.2% compared to HK$38,585,000 in the same period last year[6] - Revenue from customer contracts for the six months ended June 30, 2024, was HKD 42,118 thousand, compared to HKD 38,585 thousand in the same period in 2023, representing an increase of 9.2%[36] - Sales of processed leather decreased to HKD 28,606 thousand in 2024 from HKD 35,445 thousand in 2023, a decline of 19.3%[36] - Subcontracted leather processing revenue increased significantly to HKD 13,512 thousand in 2024 from HKD 3,140 thousand in 2023, a growth of 330.3%[36] - Revenue from Customer A accounted for 4,465 thousand HKD in the first six months of 2024, representing over 10% of the company's total revenue[35] - Revenue from Customer B accounted for 5,478 thousand HKD in the first six months of 2023, representing over 10% of the company's total revenue[35] Costs and Expenses - Procurement amount for the six months ended June 30, 2024, was HKD 12,722,000, a 66.4% decrease compared to the same period last year[7] - Capital expenditures for the six months ended June 30, 2024, totaled HKD 415,000, a decrease from HKD 827,000 in the same period last year[12] - Inventory provision reversal for the six months ended June 30, 2024, was HKD 10,451,000, compared to a provision of HKD 2,219,000 in the same period last year[8] - The group reported a pre-tax loss, with cost of goods sold increasing to HKD 47,207 thousand in 2024 from HKD 41,032 thousand in 2023[40] - Finance costs increased to HKD 295 thousand in 2024 from HKD 228 thousand in 2023, primarily due to higher bank loan and discounting expenses[39] - Impairment of trade receivables decreased to HKD 417 thousand in 2024 from HKD 1,200 thousand in 2023, a reduction of 65.3%[38] - Other income and gains, net, amounted to HKD 534 thousand in 2024, up from HKD 355 thousand in 2023, driven by higher sales of scrap materials in mainland China (HKD 900 thousand in 2024 vs. HKD 346 thousand in 2023)[37] - Total remuneration paid to key management personnel decreased to HKD 448,000 for the six months ended June 30, 2024, compared to HKD 525,000 for the same period in 2023[56] Strategic Plans and Future Outlook - The company plans to focus on product innovation, production process reengineering, and increasing outsourcing business to cultivate new competitive advantages in the second half of 2024[16] - The company aims to reduce costs, improve energy efficiency, and enhance management precision to ensure stable operations in a complex economic environment[16] - The company will seek new business opportunities to diversify revenue sources and enhance long-term growth potential[16] Corporate Governance and Compliance - The company has complied with the Corporate Governance Code as set out in Appendix C1 of the Listing Rules, except for the temporary assumption of the Managing Director role by the Chairman during the transition period[64] - All directors of the company have confirmed compliance with the Model Code for Securities Transactions as set out in Appendix C3 of the Listing Rules during the six months ended June 30, 2024[65] - The company's audit committee and independent auditor, Zhonghui Anda CPA Limited, have reviewed the unaudited interim results for the six months ended June 30, 2024[66] - The company has not purchased, sold, or redeemed any of its listed securities on the Hong Kong Stock Exchange during the six months ended June 30, 2024[67] - No directors or senior executives of the company hold any interests or short positions in the company's shares or related securities as of June 30, 2024[59] Shareholding and Ownership - Guangdong Nanyue Group Co., Ltd. holds a 52.00% equity stake in the company through its 100% controlled subsidiary, Guangdong Assets Management (BVI) No.11 Limited[61][62] - Guangdong Yuehai Holdings Group Co., Ltd. holds a 19.34% equity stake in the company through its 100% controlled subsidiary, Yuehai Holdings Group Co., Ltd.[61][62] - The company's total issued ordinary shares as of June 30, 2024, amount to 538,019,000 shares[62] Environmental and Legal Provisions - The company has set aside a provision of approximately HKD 7,918 thousand for environmental violation penalties in mainland China, with no payments made as of June 30, 2024[48] Commitments and Reserves - Commitments for property leasehold improvements and plant and machinery increased to HKD 976,000 as of June 30, 2024, from HKD 269,000 at the end of 2023[55] - The company's property revaluation reserve increased by HKD 583 thousand in 2023 and HKD 807 thousand in 2024[25] - Exchange rate differences from the translation of foreign operations resulted in a loss of HKD 3,830 thousand in 2023 and HKD 423 thousand in 2024[25] Accounting Standards and Financial Reporting - The company adopted all relevant new and revised Hong Kong Financial Reporting Standards (HKFRS) effective from January 1, 2024, with no significant impact on financial statements[30] - Over 90% of the company's revenue, performance, and assets are related to leather semi-finished and finished product processing and sales, as well as subcontracting leather processing in China[34] - The fair value of receivables measured at Level 2 was 2,928 thousand HKD as of June 30, 2024, compared to 4,460 thousand HKD as of December 31, 2023[32] - Trade receivables and bills receivable totaled HKD 27,219 thousand as of June 30, 2024, slightly up from HKD 26,873 thousand at the end of 2023[45]

Revenue Performance - Revenue for the six months ended June 30, 2024, was HKD 42,118,000, representing a 9.2% increase from HKD 38,585,000 in the same period of 2023[1] - The group's revenue for the six months ended June 30, 2024, was HKD 42,118,000, compared to HKD 38,585,000 for the same period in 2023, representing an increase of approximately 9.9%[8] - The group's total revenue for the period was HKD 42,118,000, an increase of HKD 3,533,000 or 9.2% compared to HKD 38,585,000 for the same period last year[22] Profit and Loss - Shareholders' loss for the period was HKD (5,999,000), a significant improvement of 72.3% compared to HKD (21,653,000) in 2023[1] - Basic loss per share improved to HKD (1.12) from HKD (4.02), reflecting a 72.1% reduction in loss[1] - Total comprehensive loss for the period was HKD (5,615,000), significantly lower than HKD (24,900,000) in the same period last year[3] - The group reported a pre-tax loss of HKD 5,999,000 for the six months ended June 30, 2024, compared to a loss of HKD 21,653,000 for the same period in 2023, reflecting a significant reduction in losses[15] - The basic loss per share for the six months ended June 30, 2024, was HKD 0.011, compared to HKD 0.040 for the same period in 2023, indicating an improvement in financial performance[15] Gross Profit and Margins - Gross profit for the period was HKD 5,362,000, compared to a gross loss of HKD (4,666,000) in the previous year[2] - The group achieved a gross profit margin of 12.7%, up from -12.1% in the same period last year, marking a turnaround from a gross loss to a gross profit[21] Expenses and Cost Management - Administrative expenses decreased to HKD 10,533,000 from HKD 14,462,000, a reduction of 27.5%[2] - The total procurement amount for the six months ended June 30, 2024, was HKD 12,722,000, a decrease of 66.4% compared to the same period last year[23] - The interest expense for the period was HKD 295,000, an increase of 29.4% compared to the previous year, mainly due to an increase in loan amounts[26] Assets and Liabilities - Non-current assets as of June 30, 2024, were valued at HKD 49,952,000, slightly down from HKD 51,043,000 at the end of 2023[4] - Current liabilities increased to HKD 69,342,000 from HKD 77,951,000, indicating a decrease in short-term financial obligations[4] - Net assets decreased to HKD 47,296,000 from HKD 52,911,000, reflecting a decline in overall equity[4] - Trade receivables as of June 30, 2024, amounted to HKD 23,200,000, an increase from HKD 21,629,000 as of December 31, 2023, reflecting growth in sales[17] - Trade payables as of June 30, 2024, were HKD 34,661,000, slightly up from HKD 34,113,000 as of December 31, 2023, indicating stable supplier relationships[19] Cash Flow and Financing - As of June 30, 2024, the group's cash and cash equivalents amounted to HKD 3,109,000, a decrease of HKD 4,030,000 or 56.5% from December 31, 2023[25] - The net cash inflow from operating activities was HKD 12,075,000, primarily due to a reduction in inventory[25] - The group's interest-bearing loan liabilities to equity ratio was zero as of June 30, 2024, down from 21.9% on December 31, 2023[26] - The total bank credit facility was HKD 38,350,000 as of June 30, 2024, all of which was unused[26] Inventory and Production - The group's consolidated inventory as of June 30, 2024, was HKD 39,606,000, a decrease of HKD 10,851,000 or 21.5% from HKD 50,457,000 as of December 31, 2023[24] - The total sales volume of cowhide leather was 2,798,000 square feet, an increase of 390,000 square feet or 16.2% compared to 2,408,000 square feet for the same period last year[22] - The production of cowhide leather decreased by 489,000 square feet or 22.6% to 1,679,000 square feet compared to 2,168,000 square feet for the same period last year[22] Employee and Operational Strategy - The group has 283 employees as of June 30, 2024, a decrease from 288 employees on December 31, 2023[30] - The group plans to expand its external processing business to increase revenue and improve production efficiency, leveraging its wastewater treatment technology[23] - The group aims to enhance production efficiency and reduce costs while developing new products to meet changing consumer demands[31] - The group plans to diversify its revenue sources and seek new business opportunities to enhance long-term growth potential[31] Dividends and Taxation - The group did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[16] - The group has not recognized any taxable profits from Hong Kong for the six months ended June 30, 2024, maintaining a tax-efficient structure[13] Impairments and Losses - The impairment of trade receivables decreased to HKD 417,000 in the first half of 2024 from HKD 1,200,000 in the same period of 2023, indicating improved credit management[9] - The group recorded an impairment loss of HKD 396,000 on property, plant, and equipment for the six months ended June 30, 2024, compared to HKD 782,000 for the same period last year[24] - The group's unaudited consolidated loss attributable to shareholders for the six months ended June 30, 2024, was HKD 5,999,000, a decrease of HKD 15,654,000 or 72.3% compared to HKD 21,653,000 for the same period last year[20] - As of June 30, 2024, the group's unaudited net asset value was HKD 47,296,000, down HKD 5,615,000 from December 31, 2023, and down HKD 47,817,000 from June 30, 2023[20] Securities Transactions - The group has not engaged in any purchases, sales, or redemptions of its listed securities during the six months ended June 30, 2024[35]

Financial Performance - The company reported a consolidated loss attributable to shareholders of HKD 66,449,000 for 2023, an increase of 51.3% compared to a loss of HKD 43,929,000 in 2022[11]. - Revenue for the year was HKD 82,060,000, down 4.6% from HKD 86,050,000 in 2022[9]. - The group recorded an impairment loss of HKD 746,000 on property, plant, and equipment for the year 2023[29]. - Operating loss for 2023 was HKD 65,931,000, compared to a loss of HKD 44,053,000 in 2022, indicating a worsening performance[68]. - The company incurred a total loss before tax of HKD 66,810,000, which is a 51.5% increase from the loss of HKD 44,160,000 in 2022[183]. - The net loss for the year was HKD 66,449,000, compared to a net loss of HKD 43,929,000 in the previous year, reflecting a year-on-year increase of 51.2%[183]. - Total comprehensive expenses for the year amounted to HKD 67,102,000, up from HKD 54,523,000 in the previous year, indicating a year-over-year increase of about 23%[188]. Assets and Liabilities - The total asset value decreased by 22.1% to HKD 135,537,000 from HKD 174,007,000 in 2022[9]. - The net asset value of the group as of December 31, 2023, was HKD 52,911,000, a decrease from HKD 67,102,000 in 2022[20]. - Current assets dropped significantly to HKD 84,494,000 in 2023 from HKD 119,909,000 in 2022, a decrease of around 29.5%[187]. - The company's net asset value fell to HKD 52,911,000 in 2023, down from HKD 120,013,000 in 2022, representing a decline of approximately 56%[188]. - The company’s total liabilities increased to HKD 77,951,000 in 2023 from HKD 49,467,000 in 2022, reflecting a rise of about 57.6%[187]. Cash Flow and Financing - The net cash outflow from operating activities for the year was HKD 15,686,000, primarily due to a decrease in cash inflow from accounts receivable[31]. - The company reported an operating cash outflow of approximately HKD 15,686,000, indicating ongoing liquidity challenges[171]. - Cash and cash equivalents decreased to HKD 7,139,000 at the end of 2023 from HKD 9,463,000 at the end of 2022, a reduction of about 24.5%[190]. - The group has renewed a secured bank financing facility of RMB 35,000,000 until March 2027 to support daily operations[194]. Operational Strategy - The company plans to focus on building an ecosystem in 2024, aiming to optimize its operational structure and reduce losses[14]. - There will be an emphasis on enhancing production capabilities and increasing the proportion of external processing business to improve revenue streams[16]. - The group plans to enhance research and development, expand foreign trade orders, and adjust product development directions to improve sales in 2024[23]. - The company aims to enhance innovation and R&D efforts to improve technology and explore various cooperative production mechanisms[109]. - The company is actively seeking new business opportunities to achieve profitability and increase revenue sources[194]. Market and Risk Factors - The company faces significant market risks due to a shrinking demand for leather products, particularly in the shoe upper leather market, which has increased operational and profitability risks[60]. - The company closely monitors raw material price fluctuations and adjusts procurement strategies to manage inventory risks and alleviate cash flow pressure[62]. - The company has identified significant uncertainties regarding its ability to continue as a going concern due to the reported losses and cash flow issues[171]. Governance and Compliance - The board consists of two executive directors, two non-executive directors, and three independent non-executive directors, ensuring a high level of independence[113]. - The company has established internal policies to ensure independent viewpoints and opinions are obtained for board decisions[120]. - The Audit Committee is composed of three independent non-executive directors, ensuring adequate oversight of financial reporting and risk management[141]. - The company has implemented a risk management framework to identify, assess, and manage significant risks, including environmental, social, and governance risks[149]. - The company has adopted appropriate accounting policies and adhered to Hong Kong Financial Reporting Standards in preparing its financial statements[147]. Employee and Diversity Initiatives - The group employed 288 staff as of December 31, 2023, a decrease from 327 staff in the previous year[37]. - The gender ratio of the group's employees is 75% male and 25% female, reflecting a commitment to gender diversity within the workforce[129]. - The board has set a target to appoint at least one director of a different gender by December 31, 2024, to enhance gender diversity[129]. - The company emphasizes gender diversity in the recruitment of senior staff and provides training resources to female employees to prepare them for leadership roles[129].

Financial Performance - For the three months ended March 31, 2024, the company's revenue was HKD 15,319,000, an increase of 32.3% compared to HKD 11,582,000 for the same period in 2023[4] - The company's attributable consolidated loss was HKD 8,022,000, a reduction of 29.7% from HKD 11,415,000 in the previous year[7] - The sales revenue from cowhide leather was HKD 13,284,000, up 14.7% from HKD 11,582,000 in the same period last year[7] Production and Sales - The total production of cowhide leather reached 825,000 square feet, a 2.7% increase from 803,000 square feet in the same period last year[6] - The total sales volume of cowhide leather was 1,322,000 square feet, representing a 50.9% increase from 876,000 square feet in the previous year[6] - The production of grey leather was recorded at 364 tons, with no production in the same period last year[6] Strategic Plans - The company plans to enhance research and development, expand foreign trade orders, and improve product quality control to increase sales revenue in 2024[9] - The company aims to optimize supplier channels and strengthen cooperation with strategic suppliers to reduce production costs and improve competitiveness[9] - The company will continue to implement measures to compress labor costs and improve operational efficiency[9] Assets - Total assets as of March 31, 2024, were HKD 123,248,000, down from HKD 135,537,000 as of December 31, 2023[4]

Financial Performance - Revenue decreased by 4.6% to HKD 82,060,000 in 2023 from HKD 86,050,000 in 2022[3] - The company reported a loss of HKD 66,449,000 for the year, a 51.3% increase in loss compared to HKD 43,929,000 in 2022[3] - Basic loss per share increased to HKD 12.35 in 2023 from HKD 8.16 in 2022, reflecting a 51.3% increase in loss per share[3] - The group reported a revenue of HKD 82,060,000 from leather processing sales in mainland China for 2023, a decrease of 4.6% from HKD 86,050,000 in 2022[21] - The company reported a consolidated loss attributable to shareholders of HKD 66,449,000 for 2023, an increase of 51.3% compared to a loss of HKD 43,929,000 in 2022[42] - Basic loss per share for 2023 was HKD 0.1235, compared to HKD 0.0816 in 2022[42] Liquidity and Financial Ratios - Current ratio decreased by 55.4% to 1.08 in 2023 from 2.42 in 2022[3] - Quick ratio decreased by 53.7% to 0.44 in 2023 from 0.95 in 2022[3] - Debt-to-asset ratio increased by 96.8% to 61.0% in 2023 from 31.0% in 2022[3] - Total assets decreased by 22.1% to HKD 135,537,000 in 2023 from HKD 174,007,000 in 2022[3] - Net asset value per share decreased by 54.5% to HKD 0.10 in 2023 from HKD 0.22 in 2022[3] - The group has sufficient operating funds to meet its financial obligations in the foreseeable future, as per cash flow forecasts[14] Inventory and Receivables - The total inventory as of December 31, 2023, was HKD 50,457,000, a decrease of 30.9% from HKD 73,028,000 on December 31, 2022[56] - Accounts receivable decreased to HKD 26,873,000 in 2023 from HKD 37,418,000 in 2022, reflecting a reduction of approximately 28%[34] - The group reported an impairment of receivables amounting to HKD 3,215,000 in 2023, up from HKD 1,156,000 in 2022, indicating increased credit risk[23] Operational Performance - The company experienced an operating cash outflow of approximately HKD 15,686,000 for the year, indicating significant operational challenges[41] - The group incurred a pre-tax loss of HKD 89,449,000 in cost of goods sold for 2023, compared to HKD 92,726,000 in 2022, reflecting a reduction of 3.7%[25] - The total production of cowhide leather for the year was 4,613,000 square feet, a decrease of 10.9% from 5,180,000 square feet in the previous year[54] - The total sales volume of cowhide leather increased by 7.2% to 6,219,000 square feet, compared to 5,802,000 square feet in the previous year[54] - The sales revenue from cowhide leather was HKD 69,701,000, down 6.3% from HKD 74,365,000 in 2022[55] Government Support and Subsidies - The group received approximately HKD 8,000,000 in government subsidies in 2023, a decrease from HKD 475,000 in 2022, highlighting a substantial reduction in support[23] Employee and Operational Changes - The group had 288 employees as of December 31, 2023, down from 327 employees in 2022[65] - The company is actively exploring external processing business to utilize excess production capacity and ensure stable operations[44] - The company has implemented a procurement efficiency improvement mechanism in Q4 2023 to reduce material costs[46] - The company is focusing on enhancing production capacity and strict quality control measures to ensure stable production environment[46] Capital Structure and Expenditures - The company had interest-bearing bank loans totaling HKD 14,811,000 as of December 31, 2023, compared to zero in the previous year[59] - As of December 31, 2023, the net debt-to-equity ratio of the group was 21.9%, compared to zero on December 31, 2022[60] - Interest expenses for the year amounted to HKD 879,000, an increase of 721.5% year-on-year, primarily due to increased loan amounts and rising interest rates[60] - Capital expenditures for the year totaled HKD 866,000, down from HKD 2,058,000 in 2022, mainly for machinery and equipment upgrades[61] Financial Reporting and Governance - The group has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, with no significant impact on the financial statements[17] - The consolidated financial statements for the year ended December 31, 2023, were audited by Zhonghui Anda CPA Limited, which is eligible for reappointment[73] - The company did not recommend any dividend for the year ended December 31, 2023, consistent with 2022[32] Future Plans - The company plans to hold its 2024 Annual General Meeting on June 14, 2024[72]