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]

Financial Performance - For the six months ended June 30, 2023, the unaudited consolidated loss attributable to shareholders was HKD 21,653,000, an increase of 14.3% compared to a loss of HKD 18,943,000 in the same period last year[8]. - Total revenue for the period was HKD 35,445,000, down 17.5% from HKD 42,989,000 in the same period last year[11]. - The gross loss for the period was HKD 4,576,000, compared to a gross loss of HKD 3,456,000 in the previous year, indicating a worsening of performance[30]. - The pre-tax loss increased to HKD 21,810,000 from HKD 18,943,000 year-on-year, reflecting ongoing financial challenges[30]. - The total comprehensive loss for the period was HKD 24,900,000, slightly higher than HKD 24,829,000 in the previous year[32]. - The company reported a net loss of HKD 21,653,000 for the six months ended June 30, 2023, compared to a net loss of HKD 18,943,000 for the same period in 2022, representing a 9.0% increase in losses[35]. - Operating cash flow for the six months ended June 30, 2023, was a net outflow of HKD 13,480,000, compared to a net outflow of HKD 8,736,000 in the prior year, reflecting a 54.3% increase in cash outflow[37]. - Total other income and gains for the six months ended June 30, 2023, was HKD 265,000, a decrease of 73% from HKD 981,000 in the same period of 2022[58]. Assets and Liabilities - The group's unaudited net asset value as of June 30, 2023, was HKD 95,113,000, a decrease of HKD 24,900,000 from December 31, 2022, and a decrease of HKD 54,594,000 from June 30, 2022[8]. - As of June 30, 2023, total assets decreased to HKD 123,900,000 from HKD 119,909,000 as of December 31, 2022, reflecting a 3.3% increase[34]. - The total liabilities of the group increased to HKD 29,979,000 as of June 30, 2023, compared to HKD 24,054,000 at the end of 2022[69]. - The company's current liabilities increased to HKD 75,247,000 from HKD 49,467,000, representing a significant increase of 52.1%[34]. - The group's interest-bearing loans totaled HKD 21,697,000 as of June 30, 2023, with an interest rate ranging from 5.5% to 5.9%[16]. - The company's financial expenses rose to HKD 228,000 from HKD 156,000, indicating a 46.2% increase[37]. Inventory and Production - The total production of cowhide leather was 2,168,000 square feet, an increase of 27.5% from 1,700,000 square feet in the same period last year[10]. - The sales volume of cowhide leather decreased by 12.6% to 2,408,000 square feet from 2,756,000 square feet in the same period last year[11]. - The group's inventory as of June 30, 2023, was HKD 78,511,000, an increase of 7.5% from HKD 73,028,000 as of December 31, 2022[13]. - The company recorded a depreciation expense of HKD 1,628,000 for property, plant, and equipment, which is an increase from HKD 955,000 in the previous year, marking a 70.5% rise[37]. Employee and Management - The group had 308 employees as of June 30, 2023, down from 327 as of December 31, 2022, indicating a reduction in workforce[22]. - Total remuneration paid to key management personnel for the six months ended June 30, 2023, was HKD 525,000, a decrease from HKD 778,000 in the same period of 2022[84]. - The company’s short-term employee benefits for the six months ended June 30, 2023, were HKD 366,000, down from HKD 588,000 in the previous year[84]. Corporate Governance and Compliance - The company has complied with the corporate governance code as of June 30, 2023, and has appointed a new company secretary effective January 18, 2023[95]. - The interim financial information has been reviewed but not audited, ensuring that the financial data is presented accurately[42]. - The interim financial statements were approved by the board of directors on August 21, 2023, indicating timely governance and oversight[39]. Future Plans and Strategies - The company aims to achieve sustainable growth by diversifying revenue sources and exploring new business opportunities in traditional manufacturing[23]. - The company plans to implement effective measures to improve operational performance and control costs in the second half of 2023[23]. - The company plans to continue focusing on operational efficiency and cost management strategies to mitigate losses in the upcoming quarters[36]. Revenue Sources - The revenue from the sale of processed leather for the six months ended June 30, 2023, was HKD 35,445,000, a decrease of 17.5% compared to HKD 42,989,000 for the same period in 2022[56]. - Major customer A contributed HKD 5,478,000 to the total revenue for the six months ended June 30, 2023, while customer B and C did not exceed 10% of total revenue during the same period[55]. - The company reported that over 90% of its revenue, performance, and assets are related to the processing and sales of leather semi-finished and finished products in China, with no independent segment analysis presented[54].

Financial Performance - The company's revenue for the year ended December 31, 2022, was HKD 86,050,000, a decrease of 56.1% compared to HKD 196,231,000 in 2021[6] - The net loss attributable to shareholders for the year was HKD 43,929,000, an increase in loss of 120.3% from HKD 19,943,000 in 2021[8] - Cowhide leather sales amounted to HKD 74,365,000, a decline of 56.6% compared to HKD 171,485,000 in 2021[22] - The operating loss for 2022 was HKD 44,053,000, compared to a loss of HKD 17,692,000 in 2021[62] - Gross loss for 2022 was HKD 7,807,000 compared to a gross profit of HKD 18,201,000 in 2021, indicating a significant decline in profitability[171] - The net loss for the year was HKD 43,929,000, which is a 104.5% increase from the net loss of HKD 19,943,000 in 2021[173] - Other comprehensive loss for the year amounted to HKD 10,594,000, compared to a gain of HKD 7,202,000 in 2021, indicating adverse currency translation effects[173] - The company reported a significant foreign exchange loss of HKD 13,788,000 in 2022, contrasting with a gain of HKD 6,205,000 in 2021, highlighting increased currency volatility risks[173] Sales and Production - The total sales volume of cowhide leather was 5,802 thousand square feet, down 52.7% from 12,262 thousand square feet in the previous year[6] - In 2022, the total production of cowhide leather was 5,180,000 square feet, a decrease of 55.7% from 11,706,000 square feet in the previous year[19] - The total procurement amount for the year was HKD 67,406,000, a reduction of 61.1% from the previous year[22] Assets and Liabilities - The company's total assets decreased by 23.8% to HKD 174,007,000, and the net asset value per share was HKD 0.22, down 31.3%[6] - Total assets decreased to HKD 119,909,000 in 2022 from HKD 170,228,000 in 2021, a decline of 29.5%[175] - The company's net asset value dropped to HKD 120,013,000 in 2022 from HKD 174,536,000 in 2021, a decrease of 31.2%[175] - The total liabilities for 2022 were HKD 53,994,000, slightly up from HKD 53,748,000 in 2021[64] Cash Flow and Financial Management - As of December 31, 2022, the group's cash and cash equivalents were HKD 9,463,000, a decrease of 50.0% from HKD 18,942,000 in 2021[25] - Operating cash flow for the year was a net outflow of HKD 6,364,000, an improvement from a net outflow of HKD 39,405,000 in the previous year[178] - The company experienced a decrease in cash and cash equivalents, ending the year with HKD 9,463,000, down from HKD 18,942,000 at the beginning of the year[178] - The company’s financial expenses decreased to HKD 107,000 from HKD 1,994,000 in the previous year, reflecting improved financial management[178] Corporate Governance - The board of directors consists of two executive directors, two non-executive directors, and three independent non-executive directors, ensuring a high level of independence with independent non-executive directors accounting for at least one-third of the board[99] - The board held four meetings during the year ending December 31, 2022, to discuss overall strategy and the company's operational and financial performance[102] - The company has implemented good corporate governance practices and procedures under the leadership of the chairman[100] - The board has mechanisms in place to address conflicts of interest, ensuring that significant matters are discussed in formal meetings[103] Risk Management - The liquidity risk is heightened due to the shrinking demand in the leather market, leading to potential difficulties in recovering payments from downstream shoe factories[59] - Environmental compliance risks have increased due to stricter enforcement of national and local environmental policies, leading to higher operational costs[55] - The company aims to mitigate losses by strengthening risk management and ensuring safe production operations[13] Future Plans and Strategy - The company plans to focus on stable operations and cost management while enhancing product quality and optimizing team efficiency in 2023[13] - The company will actively seek development opportunities to inject new momentum into its growth and provide long-term benefits to shareholders[14] - The company is focusing on market-oriented principles, conducting in-depth market research, and adjusting product structures to enhance brand value and competitiveness[54] Shareholder Information - The company does not recommend any dividend distribution for the year ended December 31, 2022[9] - The company did not declare an interim dividend during the year and the board does not recommend a final dividend for the year ended December 31, 2022[47] - The company has adopted a shareholder communication policy to facilitate effective communication with shareholders and stakeholders[149] Employee and Diversity - The workforce decreased to 327 employees from 364 in the previous year, reflecting adjustments in operational efficiency[32] - As of December 31, 2022, the gender ratio of the group's employees is 74% male and 26% female, reflecting a commitment to gender diversity[114] - The company aims to appoint at least one director of a different gender by December 31, 2024, to enhance board diversity[114] Audit and Compliance - The Audit Committee conducted four meetings during the year to review the company's full-year results for 2021, mid-year and quarterly results for 2022, and to monitor the integrity of financial statements[128] - The company paid HKD 750,000 for audit services related to the full-year results for 2022[131] - The auditors believe that the impairment tests conducted by the group are supported by sufficient evidence[161][163]

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。 NAMYUE HOLDINGS LIMITED 南粵控股有限公司 (於香港註冊成立之有限公司) (股份代號: 01058) 2022 年度業績公告 摘要 截至 12月 31日止年度 2022年 2021年 變化 牛面革銷量（千平方呎） 5,802 12,262 -52.7% 收入（千港元） 86,050 196,231 -56.1% 本年度虧損（千港元） (43,929) (19,943) -120.3% 每股基本虧損（港仙） (8.16) (3.71) -119.9% ...

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。 NAMYUE HOLDINGS LIMITED 南粵控股有限公司 (於香港註冊成立之有限公司) (股份代號: 01058) 2022 年度業績公告 摘要 截至 12月 31日止年度 2022年 2021年 變化 牛面革銷量（千平方呎） 5,802 12,262 -52.7% 收入（千港元） 86,050 196,231 -56.1% 本年度虧損（千港元） (43,929) (19,943) -120.3% 每股基本虧損（港仙） (8.16) (3.71) -119.9% ...

[Announcement Overview](index=1&type=section&id=%E5%85%AC%E5%91%8A%E6%A6%82%E8%A7%88) [Company Information and Announcement Purpose](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E5%85%AC%E5%91%8A%E7%9B%AE%E7%9A%84) Namyue Holdings Limited (Stock Code: 01058) voluntarily released its unaudited financial information for the nine months ended September 30, 2022, to enhance corporate governance and transparency - The company is Namyue Holdings Limited, with stock code **01058**[2](index=2&type=chunk)[3](index=3&type=chunk) - This announcement is voluntary, aiming to improve corporate governance and transparency[3](index=3&type=chunk) [Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Key Financial Indicators](index=1&type=section&id=%E5%85%B3%E9%94%AE%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) For the nine months ended September 30, 2022, the company's revenue significantly decreased by 52.6% year-on-year, shifting from profit to loss, with consolidated loss attributable to shareholders increasing by 213.8%, while total assets and shareholders' equity decreased compared to the end of 2021 Financial Summary for the Nine Months Ended September 30, 2022 | Indicator | As of Sep 30, 2022 (HKD Thousands) | As of Sep 30, 2021 (HKD Thousands) | Change (%) | | :-------------------------------------------- | :------------------------------- | :------------------------------- | :--------- | | Revenue | 75,074 | 158,334 | -52.6% | | Consolidated Loss Attributable to Shareholders | (30,772) | (9,806) | +213.8% | | | As of Sep 30, 2022 (HKD Thousands) | As of Dec 31, 2021 (HKD Thousands) | | | Total Assets | 187,952 | 228,284 | | | Shareholders' Equity | 139,207 | 174,536 | | [Notes to Financial Information](index=2&type=section&id=%E8%B4%A2%E5%8A%A1%E4%BF%A1%E6%81%AF%E9%99%84%E6%B3%A8) [Explanation of Comparative Data](index=2&type=section&id=%E6%AF%94%E8%BE%83%E6%95%B0%E6%8D%AE%E8%AF%B4%E6%98%8E) The financial information for the year ended December 31, 2021, is for comparative purposes only and does not constitute statutory annual consolidated financial statements, though it is derived from statutory filings with the Companies Registrar, and the 2020 auditor's report was unqualified - Financial information for the year ended December 31, 2021, is for comparative purposes only and does not constitute the company's statutory annual consolidated financial statements for that year[6](index=6&type=chunk) - The auditor's report for the consolidated financial statements for the year ended December 31, 2020, was prepared with an unqualified opinion[6](index=6&type=chunk) [Operating Performance Review](index=2&type=section&id=%E8%A1%A8%E7%8E%B0%E6%91%98%E8%A6%81) [Market Environment and Operating Strategy](index=2&type=section&id=%E5%B8%82%E5%9C%BA%E7%8E%AF%E5%A2%83%E4%B8%8E%E7%BB%8F%E8%90%A5%E7%AD%96%E7%95%A5) The upper leather market faces challenges of overcapacity, weak demand, and narrowing profit margins, prompting the Group to enhance product development, quality control, and optimize capacity for economies of scale, despite production decreases due to factory shutdowns caused by the epidemic - The upper leather market continues to face issues such as **overcapacity**, **weak demand**, and **narrowing profit margins**[7](index=7&type=chunk) - The Group continues to strengthen product development and design, implement full production process quality control, and enhance economies of scale through capacity optimization[7](index=7&type=chunk) - Factory operations in Suining County, Xuzhou, Jiangsu Province, were suspended for several weeks due to epidemic prevention and control measures, leading to a decrease in production volume[7](index=7&type=chunk) [Production and Sales Data](index=2&type=section&id=%E7%94%9F%E4%BA%A7%E4%B8%8E%E9%94%80%E5%94%AE%E6%95%B0%E6%8D%AE) For the nine months ended September 30, 2022, both production and sales volumes of cow upper leather and wet blue leather significantly declined, with cow upper leather production and sales decreasing by 60.0% and 50.4% respectively, and wet blue leather production and sales both decreasing by 61.8% Production and Sales Volume for the Nine Months Ended September 30, 2022 | Product | Indicator | Sep 30, 2022 (Unit) | Sep 30, 2021 (Unit) | Change (%) | | :---------------- | :--------------------- | :------------------ | :------------------ | :--------- | | Cow Upper Leather | Total Production Volume | 3,844,299 Square Feet | 9,615,947 Square Feet | -60.0% | | | Total Sales Volume | 4,961,107 Square Feet | 10,010,767 Square Feet | -50.4% | | Wet Blue Leather | Production and Sales Volume | 1,801 Tons | 4,719 Tons | -61.8% | [Detailed Financial Analysis](index=3&type=section&id=%E8%AF%A6%E7%BB%86%E8%B4%A2%E5%8A%A1%E5%88%86%E6%9E%90) [Revenue Composition and Changes](index=3&type=section&id=%E6%94%B6%E5%85%A5%E6%9E%84%E6%88%90%E4%B8%8E%E5%8F%98%E5%8A%A8) The Group's total turnover decreased by 52.6% year-on-year, primarily due to weak demand for cowhide products, with cow upper leather sales declining by 55.2% and wet blue leather and other product sales by 34.1% Turnover Composition for the Nine Months Ended September 30, 2022 | Product Category | Sep 30, 2022 (HKD Thousands) | Sep 30, 2021 (HKD Thousands) | Change (HKD Thousands) | Change (%) | | :------------------------ | :--------------------------- | :--------------------------- | :--------------------- | :--------- | | Consolidated Turnover | 75,074 | 158,334 | -83,260 | -52.6% | | Cow Upper Leather Sales Revenue | 62,311 | 138,981 | -76,670 | -55.2% | | Wet Blue Leather and Other Products | 12,763 | 19,353 | -6,590 | -34.1% | - The decline in turnover was primarily attributable to **weak demand for cowhide products**[9](index=9&type=chunk) [Reasons for Increased Loss](index=3&type=section&id=%E4%BA%8F%E6%8D%9F%E6%89%A9%E5%A4%A7%E5%8E%9F%E5%9B%A0) Consolidated loss attributable to company shareholders significantly increased by 213.8% year-on-year, mainly due to increased unit costs for cow upper leather, coupled with decreased sales volume and unit selling prices, resulting in a substantial loss for the Group - Consolidated loss attributable to company shareholders was approximately **HKD 30,772,000**, an increase of approximately **HKD 20,966,000** or **213.8%** compared to the same period last year[9](index=9&type=chunk) - The increased loss was primarily due to **higher unit costs for cow upper leather**, combined with **decreased sales volume and unit selling prices** for cow upper leather, leading to a significant loss for the Group[9](index=9&type=chunk) [Important Disclaimer](index=3&type=section&id=%E5%AF%A9%E6%85%8E%E8%A1%8C%E4%BA%8B%E8%81%B2%E6%98%8E) [Disclaimer on Unaudited Financial Information](index=3&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%96%99%E5%A3%B0%E6%98%8E) The financial information in this announcement is unaudited and should not be considered an indication or guarantee of financial performance; shareholders and investors are advised to exercise caution when dealing in securities and consult professional advisors - The financial information for the nine months ended September 30, 2022, contained in this announcement has not been reviewed or audited by the company's independent auditor[10](index=10&type=chunk) - The information in this announcement should not be regarded as any indication or guarantee of the Group's financial performance for the nine months ended September 30, 2022[10](index=10&type=chunk) - Company shareholders and prospective investors are urged to exercise caution when dealing in the company's securities and to consult their own professional advisors if in doubt about their investment position[10](index=10&type=chunk) [Board of Directors Information](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E4%BF%A1%E6%81%AF) [Board Member Composition](index=3&type=section&id=%E8%91%A3%E4%BA%8B%E4%BC%9A%E6%88%90%E5%91%98%E6%9E%84%E6%88%90) As of the announcement date (October 31, 2022), the company's Board of Directors comprises two executive directors, two non-executive directors, and three independent non-executive directors - As of the announcement date (October 31, 2022), the company's Board of Directors consists of **two executive directors** (Mr. Zhou Hao and Mr. Sun Jun), **two non-executive directors** (Mr. Huang Junfeng and Mr. Kuang Hu), and **three independent non-executive directors** (Mr. Yang Wanli, Mr. Liang Lianchang, and Mr. Yang Ge)[11](index=11&type=chunk)

Financial Performance - For the six months ended June 30, 2022, the company reported a consolidated loss attributable to shareholders of approximately HKD 18,943,000, an increase of HKD 14,948,000 or 374.2% compared to the same period last year[14]. - The group's consolidated revenue for the period was approximately HKD 42,989,000, a decrease of about HKD 69,409,000 or 61.8% compared to the same period last year[19]. - The company reported a loss of HKD 18,943,000 for the six months ended June 30, 2022, compared to a loss of HKD 3,995,000 for the same period in 2021, indicating a significant increase in losses[38]. - Total comprehensive loss for the period amounted to HKD 24,829,000, compared to HKD 1,680,000 in the previous year, reflecting a deterioration in overall financial performance[38]. - The group reported a pre-tax loss of HKD 18,943,000 for the period, compared to a pre-tax loss of HKD 3,888,000 in the same period last year[34]. Production and Sales - The total production of cowhide leather was 1,699,844 square feet, a decrease of 74.8% from 6,748,817 square feet in the same period last year[18]. - The total sales volume of cowhide leather was 2,756,011 square feet, down 62.3% from 7,315,574 square feet in the same period last year[18]. - The production of grey leather was 622 tons, a decrease of 78.8% from 2,936 tons in the same period last year[18]. - The sales volume of grey leather was 694 tons, down 76.4% from 2,936 tons in the same period last year[18]. - Sales of cowhide leather amounted to approximately HKD 37,823,000, down by about HKD 62,674,000 or 62.4% year-on-year[19]. Assets and Liabilities - As of June 30, 2022, the company's unaudited net asset value was approximately HKD 149,707,000, a decrease of about HKD 24,829,000 from HKD 174,536,000 as of December 31, 2021[14]. - Non-current assets decreased to HKD 54,953,000 as of June 30, 2022, down from HKD 58,056,000 at the end of 2021, showing a decline of approximately 3.8%[42]. - Current assets also declined to HKD 153,122,000 from HKD 170,228,000, representing a decrease of about 10.1%[42]. - Current liabilities increased to HKD 54,726,000 from HKD 50,028,000, marking an increase of about 9.4%[42]. - The group's interest-bearing bank loans amounted to approximately HKD 8,087,000 as of June 30, 2022, compared to zero on December 31, 2021[24]. Cash Flow and Investments - The company experienced a cash outflow from operating activities of HKD 8,612,000 for the six months ended June 30, 2022, compared to an outflow of HKD 34,562,000 in the previous year, showing an improvement in cash flow management[102]. - Cash used in investing activities was HKD 3,291,000, compared to HKD 2,954,000 in the same period last year, indicating increased investment expenditures[102]. - The cash and cash equivalents balance as of June 30, 2022, was approximately HKD 6,356,000, a decrease of about HKD 12,586,000 or 66.4% from December 31, 2021[23]. Operational Challenges - The company faced significant operational disruptions due to a 48-day lockdown in Suining County, Jiangsu Province, impacting the supply chain and order fulfillment[16]. - Environmental regulations have become stricter, prompting the company to enhance its environmental management and monitoring systems[18]. - The company is focusing on optimizing management and restoring the supply chain to ensure stable operations amid the challenges faced[16]. Corporate Governance - The company adhered to the Corporate Governance Code as per the Listing Rules Appendix 14 during the six months ended June 30, 2022[143]. - All directors confirmed compliance with the standard code of conduct for securities transactions during the six months ended June 30, 2022[144]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2022[145]. Shareholder Information - Major shareholders include Guangdong Nanyue Group Limited, holding 52.00% of the shares, and Guangdong Yuehai Holdings Group Limited, holding 19.34%[137]. - The weighted average number of ordinary shares issued remained unchanged at 538,019,000 for both periods under review[122].