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佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任 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。 MAINLAND HEADWEAR HOLDINGS LIMITED 飛 達 帽 業 控 股 有 限 公 司* （於百慕達註冊成立之有限公司） （股份代號：1100） 截至二零二三年六月三十日止六個月之 中期業績公佈 飛達帽業控股有限公司（「本公司」）之董事會（「董事會」或「董事」）謹此宣佈截至 二零二三年六月三十日止六個月（「本期間」）本公司及其附屬公司（統稱「本集團」） 之未經審核中期業績連同二零二二年同期之比較數字。 中期簡明綜合損益表（未經審核） 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 （未經審核） （未經審核） 附註 千港元 千港元 ...

Financial Performance - The company's revenue for the year increased by 17.1% to HKD 1,874,424,000, compared to HKD 1,600,255,000 in 2021[10] - Gross profit rose significantly by 33% to HKD 637,296,000, with a gross margin improvement of 4.1 percentage points to 34.0%[10] - Shareholders' profit surged by 52.6% to HKD 195,390,000, up from HKD 128,076,000 in the previous year[10] - Manufacturing business revenue increased by 33.6% to HKD 1,127,566,000, with a segment operating profit soaring by 77.0% to HKD 309,750,000[11] - Trade business revenue was HKD 746,858,000, remaining stable compared to the previous year, but incurred an operating loss of HKD 59,079,000 due to logistics disruptions[13] Production and Capacity Expansion - The company plans to enhance production capacity by 20% with the new facility in Bangladesh, expected to commence operations in Q2 2023[15] - The group plans to establish a production base in Mexico to enhance rapid order production capabilities and expand customer sources, with construction expected to be completed by the end of this year[16] - Capital expenditures for the year were approximately HKD 123.8 million, primarily for enhancing manufacturing capacity and expanding operations in Bangladesh[20] - The capital expenditure budget is set at HKD 123.5 million, with HKD 120.5 million allocated for the construction of the Mexican factory and expansion in Bangladesh[21] Financial Position and Cash Management - The company has approximately HKD 246,949,000 in cash and HKD 579,600,000 in undrawn bank financing as of December 31, 2022[10] - As of December 31, 2022, the group's cash and cash equivalents totaled HKD 268.5 million, an increase from HKD 204.7 million in 2021[19] - The group's bank credit facilities amounted to HKD 788.7 million, with HKD 579.5 million unused as of December 31, 2022[19] - The debt-to-equity ratio improved to 22.8% in 2022 from 30.5% in 2021, indicating a stronger financial position[19] Corporate Governance - The company has maintained high standards of corporate governance, adhering to the principles of the corporate governance code as per the Hong Kong Stock Exchange's listing rules[41] - The board of directors held a total of 4 meetings during the year, with all executive directors attending all meetings[42] - Independent non-executive directors attended all shareholder meetings, demonstrating strong engagement in corporate governance[42] - The company has established a practice of providing independent professional advice to directors to assist in fulfilling their responsibilities[44] - The company has a structured approach to board meetings, ensuring reasonable notice is given for all meetings[43] Risk Management and Internal Controls - The board is responsible for the effectiveness of the risk management and internal control systems, which are reviewed regularly[77] - The company conducts risk assessments that are integrated into strategic planning, business planning, and daily operations[79] - The company has established effective risk management and internal control systems to ensure the protection of significant assets and reliable financial reporting[83] - The internal audit team, with the assistance of the audit committee, oversees the monitoring processes, and no significant internal control deficiencies were noted in the 2022 audit[82] Environmental Sustainability - The company emphasizes sustainable development strategies and has formed an ESG working group to assess and report on related risks[142] - In 2022, the total greenhouse gas emissions amounted to 46,777 tons of CO2 equivalent, with 85% from indirect emissions related to electricity and transportation[158] - The company achieved a 2% reduction in waste at its Bangladesh facility in 2023, with total harmless waste generated being 598 tons in 2022, up from 534 tons in 2021[162][163] - The total wastewater generated in 2022 was 219,958 cubic meters, with all waste management practices compliant with applicable environmental laws and regulations[161][160] Employee Management and Training - The total training hours for employees amounted to 9,936 hours, with an average training duration of 12 hours per full-time employee[199] - The average training duration for male employees was 11 hours, while female employees averaged 13 hours[199] - 100% of senior management, middle management, and regular employees participated in training programs[199] - The company emphasizes emotional well-being through initiatives like "pressure relief counseling sessions" for employees[196] Shareholder Communication and Dividends - The company has established effective communication channels with shareholders, including annual general meetings and online updates[92] - The company proposed a final dividend of HKD 0.06 per share for the year ended December 31, 2022, compared to HKD 0.04 per share in the previous year, along with a special dividend of HKD 0.02 per share[103] - The total reserves available for cash distribution as of December 31, 2022, amounted to HKD 722,652,000, an increase from HKD 624,888,000 in the previous year[110] Related Party Transactions - The independent non-executive directors have reviewed the ongoing related party transactions and confirmed they are conducted in the ordinary course of business and on normal commercial terms[118] - The company has complied with the disclosure requirements under Listing Rule 14A regarding related party transactions[116]

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佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任 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。 MAINLAND HEADWEAR HOLDINGS LIMITED 飛 達 帽 業 控 股 有 限 公 司* （於百慕達註冊成立之有限公司） （股份代號：1100） 截至二零二二年十二月三十一日止年度之 全年業績公佈 飛達帽業控股有限公司（「本公司」）董事會（「董事會」╱「董事」）欣然公佈截至二 零二二年十二月三十一日止年度本公司及其附屬公司（統稱「本集團」╱「飛達帽業」） 之財務業績。 綜合損益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收益 2 1,874,424 1,600,255 銷售成本 (1,237,128) (1,121,031) 毛利 637,296 479,224 ...

Financial Performance - The company's revenue reached HKD 941.9 million, a 27.0% increase compared to HKD 741.7 million in the same period last year[5]. - Gross profit rose by 25.1% to HKD 303.7 million, with a slight decrease in gross margin to 32.2% from 32.7% year-on-year[5]. - Net profit attributable to shareholders increased by 27.8% to HKD 84.5 million, up from HKD 66.1 million in the previous year[5]. - For the six months ended June 30, 2022, the company reported revenue of HKD 941.912 million, an increase from HKD 741.658 million in the same period of 2021, representing a growth of approximately 27%[23]. - The gross profit for the same period was HKD 303.717 million, compared to HKD 242.730 million in 2021, indicating a gross profit margin improvement[23]. - The operating profit increased to HKD 118.413 million from HKD 89.549 million year-on-year, reflecting a growth of about 32%[23]. - The net profit for the period was HKD 91.257 million, up from HKD 70.682 million in the previous year, marking an increase of approximately 29%[23]. - Basic earnings per share rose to HKD 20.804 from HKD 16.304, representing an increase of about 27%[23]. - The total comprehensive income for the period was HKD 88.029 million, compared to HKD 71.751 million in the previous year, indicating an increase of about 22%[27]. Business Segments - Manufacturing business revenue surged by 43.1% to HKD 561.9 million, accounting for approximately 59.7% of total revenue[7]. - Trade business revenue grew by 8.9% to HKD 379.9 million, representing 40.3% of total revenue, but recorded an operating loss of HKD 23.1 million due to rising logistics costs[8]. - Manufacturing segment revenue reached HKD 620,108, up 40.7% from HKD 441,302 in the previous year, while trading segment revenue was HKD 379,943, an increase of 8.9% from HKD 349,040[76]. - The operating profit for the manufacturing segment was HKD 141,885, compared to HKD 89,087 in the prior year, while the trading segment reported an operating loss of HKD 23,097, a decrease from a profit of HKD 7,631[76]. Capital Expenditures and Investments - Capital expenditure during the period was approximately HKD 28.5 million for equipment and machinery upgrades, significantly higher than HKD 4.6 million in the same period last year[15]. - The company incurred capital expenditures of HKD 30,528,000 for the purchase of property, plant, and equipment, which is a substantial increase from HKD 5,645,000 in the previous year[40]. - Capital commitments for capital expenditures amounted to HKD 54,491,000 as of June 30, 2022, compared to HKD 29,723,000 as of December 31, 2021, showing an increase of about 83.3%[121]. - The group made an investment of HKD 36.6 million in a limited partnership in China, representing approximately 3.3% of the target capital commitment[68]. - The group invested HKD 3.9 million in a limited partnership in Hong Kong, accounting for about 1.7% of the target capital commitment[69]. Financial Position - As of June 30, 2022, the company had cash and bank balances totaling HKD 240.1 million, up from HKD 198.9 million at the end of 2021[6]. - The total assets as of June 30, 2022, were HKD 1,845.248 million, compared to HKD 1,669.520 million at the end of 2021, showing an increase of approximately 10.5%[29]. - The company’s total assets increased to HKD 936,225,000 as of June 30, 2022, from HKD 876,907,000 at the beginning of the period, indicating a growth of about 6.8%[34]. - Total liabilities were HKD 877,303 as of June 30, 2022, compared to HKD 767,399 at the end of the previous year[79]. - The company’s bank borrowings increased to HKD 618.5 million, with HKD 317.6 million remaining undrawn as of June 30, 2022[14]. Shareholder Information - The interim dividend declared was HKD 0.03 per share, consistent with the previous year's dividend[19]. - The total issued and paid-up share capital as of June 30, 2022, was HKD 42,559,000, with a total of 425,589,448 shares issued[105]. - The company issued 20,266,164 bonus shares, capitalized from reserves, approved at the annual general meeting on May 26, 2022[105]. - Major shareholders include Ms. Yan Baoling with 39,698,400 shares (9.33%) and Successful Years International Co., Ltd. with 192,885,000 shares (45.32%)[146]. - Total shares held by major shareholders amount to 232,583,400, representing 54.65% of the company's equity[146]. Risk Management and Governance - The group’s financial risk management includes market risk, credit risk, and liquidity risk, with no significant changes in risk management policies since year-end[51][53]. - The board confirmed compliance with the corporate governance code during the reporting period[154]. - The audit committee, comprising all independent non-executive directors, reviewed the financial reporting procedures and internal controls[157]. - The company has adopted the standard code of conduct for securities transactions as per the listing rules[156]. Employee and Management Compensation - Short-term employee benefits for key management personnel increased to HKD 18,429,000 for the six months ended June 30, 2022, compared to HKD 16,617,000 for the same period in 2021, marking a rise of approximately 10.9%[130]. - The company recognized an expense of HKD 92,000 related to share-based payments for the six months ended June 30, 2022, a decrease from HKD 223,000 in the same period last year[115].

Financial Performance - The group's revenue surged to HKD 1,600,255,000, a 52.7% increase from HKD 1,048,006,000 in 2020[25] - Gross profit rose by 50.4% to HKD 479,224,000, maintaining a gross margin of 29.9%[25] - Shareholders' profit increased by 179.1% to HKD 128,076,000, compared to HKD 45,895,000 in the previous year[25] - Manufacturing revenue increased by 58.2% to HKD 844,256,000, driven by a rapid recovery in customer orders and increased capacity in the Bangladesh factory[26] - Trade business revenue rose by 47.0% to HKD 755,999,000, accounting for 47.2% of total revenue, due to economic rebound in the US and UK[28] Dividends and Shareholder Returns - The group plans to distribute a final dividend of HKD 0.04 per share and a special dividend of HKD 0.02 per share, totaling HKD 0.09 for the year[25] - The interim dividend of HKD 0.03 per share was paid on October 8, 2021, totaling HKD 12.16 million, compared to HKD 0.02 per share in 2020[133] - The board proposed a final dividend of HKD 0.04 per share and a special dividend of HKD 0.02 per share for the year ended December 31, 2021, subject to shareholder approval[133] Financial Position and Capital Expenditures - The group maintains a strong financial position with cash and undrawn bank financing totaling approximately HKD 415,800,000 as of December 31, 2021[25] - As of December 31, 2021, the group's cash and cash equivalents totaled HKD 204.7 million, down from HKD 226 million in 2020[36] - The bank borrowing to equity ratio improved to 30.5% in 2021 from 37.2% in 2020, indicating a stronger financial position[36] - Capital expenditures for the year amounted to approximately HKD 45 million for enhancing manufacturing capabilities, significantly up from HKD 16.6 million in 2020[37] - The group plans to allocate HKD 95.5 million for capital expenditures, with HKD 92.5 million earmarked for expanding manufacturing operations in Bangladesh[38] Employee and Operational Insights - The group employed over 7,200 and 400 staff in Bangladesh and Shenzhen factories, respectively, as of December 31, 2021[27] - Employee expenses for the year were approximately HKD 340.2 million, an increase from HKD 251.8 million in 2020[41] - The group aims to optimize its trade business product mix to enhance operational efficiency and sales performance[32] Risk Management and Governance - The company has implemented a risk management process integrated into strategic planning, business planning, and daily operations[104] - The board is responsible for ensuring the internal control system remains sound and effective to protect shareholders' investments and the company's assets[97] - The company confirmed compliance with the standards set out in the code of conduct for securities trading by all directors as of December 31, 2021[87] - The company has established a board diversity policy with measurable targets, which will be reviewed periodically to ensure appropriateness and progress towards these goals[83] Market and Strategic Initiatives - The group expects a 20% increase in production capacity with new facilities in Bangladesh, set to commence operations in the first half of 2023[31] - The group anticipates continued growth in its trade subsidiaries in the US and UK, benefiting from the shift to online shopping[31] - The company is expanding its market presence in Asia, targeting a D% increase in market share by the end of the next fiscal year[63] - The company is exploring potential acquisitions to strengthen its portfolio and expand its capabilities in the market[63] Environmental and Social Responsibility - The company is committed to reducing waste and emissions in its operations, implementing effective environmental management systems[197] - The company has established environmental standards for its factories to ensure sustainable resource management[198] - The company aims to balance production and environmental protection through various eco-friendly measures, including reducing hazardous substances and promoting resource recycling[199] Stakeholder Engagement - Stakeholder engagement mechanisms have been established to ensure timely communication regarding the company's operations[188] - Key stakeholder concerns include employee welfare, product quality, and business sustainability, with various channels for engagement identified[189] Corporate Structure and Board Composition - The board consists of five executive directors and three independent non-executive directors, ensuring a balanced distribution of power and authority[74] - The company has adopted a board diversity policy, considering various factors such as cultural background, professional experience, and skills to achieve diversity among board members[78] - The company has established a nomination committee to oversee the appointment and re-election of directors, ensuring a transparent and orderly process[81] Related Party Transactions - The company confirmed compliance with the relevant disclosure requirements under the Listing Rules regarding related party transactions[150] - The maximum annual total value of supply transactions under the manufacturing agreement with New Era Cap Hong Kong LLC for the fiscal years ending December 31, 2022, 2023, and 2024 are projected to be HKD 583,500,000, HKD 641,850,000, and HKD 706,035,000 respectively[154]

| --- | --- | |------------------------------------------------|-------| | | | | | | | ( | | | 飛 達 帽 業 控 股 有 限 公 司 (股份代號: 1100) | | | 2021 中 期 報 告 | | REING = 0 目錄 頁次 管理層討論及分析 2 中期股息及暫停辦理股份過戶登記 7 中期簡明綜合損益表（未經審核） 8 中期簡明綜合全面收益表（未經審核） 9 中期簡明綜合資產負債表（未經審核） 10 中期簡明綜合權益變動表（未經審核） 12 中期簡明綜合現金流量表（未經審核） 14 未經審核中期簡明綜合財務資料附註 15 根據上市規則提供之其他資料 38 飛達帽業控股有限公司 2 管理層討論及分析 飛達帽業控股有限公司（「本公司」）董事會（「董事會」或「董事」）欣然宣佈截至二零二一年六 月三十日止六個月（「本期間」）本公司及其附屬公司（統稱「飛達帽業」或「本集團」）之未經審 核中期業績。 財務回顧 期內，隨著全球經濟回升及疫情封城措施放寬，本集團大部分客戶已逐漸適應後疫情時代 的新常態，所有重大體育賽事的 ...

Financial Performance - The company's revenue from continuing operations decreased by 8.8% to HKD 1,048,006,000 in 2020, compared to HKD 1,146,834,000 in 2019[16] - The gross profit from continuing operations declined by 7.9% to HKD 318,689,000, while the gross profit margin slightly increased to 30.4% from 30.2% in the previous year[16] - The operating profit from the manufacturing segment fell by 16.5% to HKD 87,625,000, down from HKD 104,951,000 in 2019[19] - The company reported a net profit attributable to shareholders of HKD 45,895,000, a decrease of 21.2% from HKD 58,213,000 in 2019[16] - The trading business achieved a revenue growth of 7.9% to HKD 514,278,000, accounting for 49.1% of the group's total revenue[23] - The operating loss for the trading segment was HKD 21,984,000, slightly improved from a loss of HKD 21,986,000 in the previous year[23] - Cash and cash equivalents totaled HKD 226,000,000, an increase from HKD 127,800,000 in the previous year[32] - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[47] Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.03 per share, maintaining the same level as the previous year, resulting in a total annual dividend of HKD 0.05 per share[18] - The interim dividend of HKD 0.02 per share was paid on October 8, 2020, totaling HKD 8,106,000, consistent with the previous year[127] - The proposed final dividend is HKD 0.03 per share for the year ended December 31, 2020, which is the same as the previous year[127] Cash Flow and Financing - Cash and undrawn bank financing as of December 31, 2020, reached approximately HKD 219.5 million and HKD 219.3 million, respectively, compared to HKD 112.5 million and HKD 306.3 million in 2019[18] - The bank credit facility was HKD 513,400,000, with HKD 219,300,000 unused, compared to HKD 581,300,000 and HKD 306,300,000 respectively in the previous year[32] - The company has a strong financial position, with a bank borrowing to equity ratio of 37.2%, up from 36.1% in the previous year[32] Operational Performance - The manufacturing segment's revenue from external customers decreased by 20.4% to HKD 533,728,000, accounting for approximately 50.9% of total revenue from continuing operations[19] - The company experienced a significant rebound in orders starting from June 2020, achieving one of its best sales performances in recent years during the last quarter[11] - Employee expenses for the year were approximately HKD 251,800,000, a decrease from HKD 288,300,000 in the previous year[38] - Capital expenditure for the year was approximately HKD 16.6 million, down from HKD 37.8 million in the previous year[33] - The capital expenditure budget for the upcoming year is HKD 48,600,000, with HKD 45,600,000 allocated for expanding manufacturing in Bangladesh[35] E-commerce and Market Strategy - The pandemic accelerated the shift towards online shopping, benefiting the company's established e-commerce business, which saw a significant increase in sales volume[14] - The company plans to enhance its e-commerce business to capitalize on the ongoing online shopping trend[26] - The company aims to expand its licensed brand portfolio to strengthen its competitive advantage amid industry consolidation[26] Corporate Governance - The company is committed to high standards of corporate governance to enhance shareholder value[62] - The board of directors approved a dividend of $K per share, reflecting a commitment to returning value to shareholders[47] - The board is responsible for overseeing the company's affairs to promote its success and protect shareholder interests[63] - The company has established a policy for providing independent professional advice to directors to assist them in fulfilling their responsibilities[67] - The company has adopted a board diversity policy, considering factors such as cultural background, race, and professional experience to achieve board diversity[76] Risk Management and Internal Controls - The board is responsible for the overall risk management and internal control systems of the group[100] - The company has implemented a robust risk management process integrated into strategic planning and daily operations[105] - The audit committee consists of three independent non-executive directors and held two meetings in 2020[94] - The company ensures compliance with corporate governance codes and maintains effective internal control systems[104] Environmental Sustainability - The company is committed to environmental sustainability, implementing ISO 14001 standards across its factories[182] - The company focuses on minimizing the use of hazardous materials and promotes recycling and resource conservation[190] - The company has established a wastewater treatment station to process industrial and domestic wastewater[194] - The company actively collaborates with brand clients and suppliers to select environmentally friendly materials for production[197] Share Capital and Options - The company has adopted a new share option plan allowing the issuance of up to 40,532,828 shares, equivalent to 10% of the issued share capital as of May 16, 2018[158] - The company has granted share options to directors and employees, with a total of 22,400,000 options remaining unexercised as of the reporting date[162] - The company has a total of 266,308,000 shares held by key executives, representing 65.70% of the total equity[152] Employee and Director Compensation - The remuneration committee, consisting mainly of independent non-executive directors, reviewed the compensation policies for directors and senior management in 2020[88] - The company ensures that the compensation levels for employees, including directors and senior management, are competitive and based on their positions and performance[88]

Financial Performance - The company's revenue from continuing operations decreased by 17.3% to HKD 430,952,000 compared to HKD 521,181,000 in the same period last year[6]. - Gross profit from continuing operations fell by 14.0% to HKD 129,377,000, with a gross margin improvement to 30.0% from 28.9% in the previous year[6]. - Profit attributable to shareholders decreased by 97.8% to HKD 757,000, down from HKD 34,578,000 in the prior period[6]. - Manufacturing revenue dropped by 33.5% to HKD 268,469,000, with external customer revenue also down by 33.5% to HKD 235,980,000, accounting for approximately 54.8% of total revenue[8]. - Trade business revenue surged by 17.4% to HKD 194,972,000, representing 45.2% of total revenue, driven by the acquisition of Aquarius Ltd. and growth in e-commerce[12]. - The group reported a revenue of HKD 430.95 million for the six months ended June 30, 2020, down from HKD 521.18 million in the same period of 2019, representing a decrease of approximately 17.3%[24]. - The gross profit for the same period was HKD 129.38 million, compared to HKD 150.39 million in 2019, indicating a decline of about 13.9%[24]. - The operating profit decreased significantly to HKD 9.61 million from HKD 46.70 million year-on-year, reflecting a drop of approximately 79.5%[24]. - The company reported a profit of HKD 1,340,000 for the six months ended June 30, 2020, a significant decrease from HKD 35,314,000 in the same period of 2019, representing a decline of approximately 96.2%[26]. - Total comprehensive loss for the period was HKD 2,344,000, compared to a total comprehensive income of HKD 34,889,000 in the previous year, indicating a shift from profit to loss[27]. Financial Position - The company maintained a strong financial position with cash and undrawn bank credit facilities of approximately HKD 223,600,000 and HKD 224,200,000, respectively[7]. - As of June 30, 2020, the group's cash and bank balances totaled HKD 228.9 million, an increase from HKD 127.8 million as of December 31, 2019[17]. - The group has a bank borrowing to equity ratio of 44.8% as of June 30, 2020, up from 36.1% at the end of 2019, indicating increased leverage[17]. - The company's total liabilities increased from HKD 572,160,000 to HKD 587,696,000, an increase of about 2.2%[32]. - Total equity decreased from HKD 755,934,000 to HKD 741,932,000, a decline of approximately 1.9%[32]. - Cash and cash equivalents increased significantly from HKD 112,549,000 to HKD 223,623,000, representing an increase of about 98.5%[28]. - The total borrowings increased to HKD 332,679,000 as of June 30, 2020, compared to HKD 272,919,000 at the beginning of the year, reflecting a rise of 21.9%[111]. Operational Changes - The workforce in Bangladesh and Shenzhen decreased to approximately 4,000 and 600 employees, respectively, due to operational restrictions and reduced order needs[11]. - The company has ceased its retail operations in Hong Kong and mainland China, allowing it to focus more resources on manufacturing and trade[13]. - The management has implemented effective cost control measures and increased automation in the Bangladesh factory, leading to improved production efficiency despite workforce reductions[6]. - The company has successfully pivoted to e-commerce, which has shown significant growth during the pandemic, indicating the effectiveness of its strategic investments over the past two years[12]. - The group’s main business includes hat manufacturing, trading, and retail, with significant production facilities located in Bangladesh and Shenzhen, China[60]. - The group’s trading business focuses on the European market through Drew Pearson International (Europe) Ltd. and the U.S. market through H3 Sportgear LLC, San Diego Hat Company, and Aquarius Ltd.[63]. - The group’s retail operations in Hong Kong and China have been terminated, reflecting a strategic shift in business focus[64]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2020, was HKD 72,012,000, a significant increase of 138% compared to HKD 30,248,000 in the same period of 2019[36]. - Net cash generated from operating activities reached HKD 63,515,000, up from HKD 23,412,000, reflecting a growth of 171% year-over-year[36]. - The net cash from investing activities was HKD 11,342,000, a recovery from a net cash outflow of HKD 79,678,000 in the same period last year[36]. - The company plans to invest approximately HKD 8.6 million in equipment to upgrade and expand production capacity, down from HKD 14.5 million in the same period of 2019[18]. - The company did not acquire any subsidiaries during the reporting period, contrasting with a cash outflow of HKD 54,279,000 for acquisitions in the same period of 2019[36]. Shareholder Information - Mr. Yan Xiang holds a total of 266,308,000 shares, representing 65.70% of the company's equity[124]. - Ms. Yan Bao Ling holds 183,700,000 shares, which is part of the total shares held by Successful Years International Co., Ltd., of which she owns 60%[125]. - Major shareholder Yan Baoling holds 37,808,000 shares, representing 9.33% of total equity[136]. - Successful Years International Co., Ltd. owns 183,700,000 shares, accounting for 45.32% of total equity[136]. - Christopher Koch has a controlling interest in NEHK, which holds 79,601,000 shares, equivalent to 19.64% of total equity[137]. Corporate Governance - The company has complied with the corporate governance code as per the listing rules during the six months ending June 30, 2020[142]. - The audit committee, consisting of all independent non-executive directors, reviewed the financial reporting procedures for the period ending June 30, 2020[145]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2020[141]. - The company has adopted the standard code of conduct for securities transactions, and all directors confirmed compliance during the reporting period[143]. - The board consists of eight directors, including five executive directors and three independent non-executive directors[147].

Financial Performance - The company's revenue from continuing operations increased by 29.4% to HKD 1,146,834,000, compared to HKD 885,933,000 in 2018[19] - Gross profit from continuing operations rose by 30.0% to HKD 346,212,000, with a gross margin improvement to 30.2% from 30.1% in 2018[19] - The company reported a net profit attributable to shareholders of HKD 58,213,000, a decrease of 6.9% from HKD 62,513,000 in 2018[19] - Trade business revenue surged by 123.6% to HKD 476,507,000, accounting for 41.5% of total revenue, driven by double-digit growth from a multinational retail client and the consolidation of AQ's financial performance since June 2019[24] - Cash and cash equivalents totaled HKD 127,800,000 as of December 31, 2019, an increase from HKD 112,200,000 in 2018, with bank credit facilities amounting to HKD 581,300,000[32] Manufacturing and Operations - The manufacturing business generated revenue of HKD 743,161,000, with external customer revenue slightly declining by 0.4% to HKD 670,327,000, accounting for approximately 58.5% of total revenue[22] - The second phase of the Bangladesh factory was substantially completed by the end of 2019, increasing production capacity by over 12% to approximately 4.5 million units per month[18] - A five-year manufacturing agreement was signed with New Era Cap Co., Inc., with a minimum product supply value of USD 47,000,000 in the first year[23] - The introduction of automation and information technology in production is aimed at mitigating rising labor costs and improving efficiency[22] - The group plans to allocate HKD 26,800,000 for capital expenditures, with HKD 21,800,000 earmarked for expanding manufacturing operations in Bangladesh[37] Strategic Initiatives - The company exited the retail business, allowing it to focus resources on manufacturing and trading operations[18] - The group anticipates steady growth in trade business, benefiting from investments made in previous years and the rise of e-commerce, particularly during the COVID-19 pandemic[29] - The acquisition of AQ was completed for USD 8,751,000 (approximately HKD 68,086,000), with expected synergies in sales and cost savings contributing to goodwill[39] - Market expansion plans include entering H and I markets, aiming for a market share increase of J% within the next two years[15] - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the K sector[15] Employee and Compensation - Employee expenses for the year amounted to approximately HKD 288.3 million, an increase from HKD 250.2 million in 2018, reflecting a year-on-year growth of 15.3%[41] - The group ensures competitive salary levels for employees, with compensation determined by position and performance, and key employees are granted stock options under the company's stock option plan[41] - The remuneration committee reviewed the annual salary review policy, stock option grants as part of long-term incentive plans, and performance-linked bonuses[90] - The company ensures competitive remuneration levels for employees, including directors and senior management, based on their positions and performance[90] Corporate Governance - The board has adopted a diversity policy to enhance the achievement of strategic goals and sustainable development[76] - The company has established a nomination committee to ensure a formal and transparent process for appointing new directors[80] - The board believes that the experience of independent directors in accounting, finance, and business will benefit the board significantly[74] - The company has a structured succession plan for directors to ensure orderly re-election[78] - The audit committee recommended the reappointment of the current external auditor for 2020[99] Environmental Commitment - The company is committed to reducing emissions and waste, implementing ISO 14001 environmental management standards across its operations[185] - The company has made investments in green infrastructure, including 50 permeable parking spaces and rainwater collection systems at its Shenzhen facility[193] - The company achieved an average water recycling rate of approximately 24% at its Shenzhen facility in 2019[195] - The group emphasizes environmental protection and resource conservation, ensuring compliance with environmental laws and regulations without any significant violations reported during the period[199] Shareholder Information - The company declared a final dividend of HKD 0.03 per share, maintaining the total dividend for the year at HKD 0.05 per share[20] - The company declared an interim dividend of HKD 0.02 per share, totaling HKD 8,106,000, paid on October 10, 2019[130] - As of December 31, 2019, the company's available reserves for cash distribution amounted to HKD 556,356,000, an increase from HKD 489,752,000 in 2018[139] - The largest customer accounted for 37.2% of sales, while the top five customers collectively represented 61.5% of sales[135] Risk Management - The board is responsible for maintaining a sound internal control system to protect shareholder investments and the company's assets[95] - The company has established a risk register to monitor and regularly update identified key risks[104] - The internal audit team assists the board and audit committee in monitoring internal control processes, with no significant deficiencies noted in the 2019 audit[110] - Major capital investments or acquisition decisions require board approval[107]

Financial Performance - For the six months ended June 30, 2019, the company reported revenue of HKD 521,181,000, a significant increase of 19.6% compared to HKD 435,838,000 in the same period last year[7] - The gross profit from continuing operations rose by 12.5% to HKD 150,386,000, while the gross margin decreased by 1.8 percentage points to 28.9% due to rising material and labor costs[7] - The operating profit from the manufacturing segment increased by 7.7% to HKD 55,853,000, benefiting from a higher production ratio at the Bangladesh facility, which accounted for approximately 85% of total production[8] - The trade business recorded a revenue of HKD 166,128,000, representing a 43.3% increase, but faced an operating loss of HKD 9,164,000 due to cautious purchasing behavior and increased discounts[10] - The total comprehensive income for the period, after tax, was HKD 34,889,000, an increase of 11.9% from HKD 31,399,000 in the previous year[27] - The profit attributable to the owners of the company was HKD 34,153,000, compared to HKD 31,010,000 in the previous year, reflecting a growth of 10.3%[27] - The basic earnings per share from continuing operations decreased to 9.67 HKD for the six months ended June 30, 2019, from 10.32 HKD in the prior year[24] - For the six months ended June 30, 2019, the profit attributable to owners of the company from continuing operations was HKD 39,210,000, compared to HKD 41,815,000 for the same period in 2018, representing a decrease of approximately 6.3%[97] - The diluted earnings per share from continuing operations was 9.66 HK cents, down from 10.19 HK cents year-on-year[98] Business Operations - The company completed the acquisition of Aquarius Ltd. on May 30, 2019, expanding its business from hats to accessories, which is expected to enhance revenue sources and product offerings[10] - Management anticipates that the new phase of the Bangladesh facility will commence production by the end of the year, increasing employee count to approximately 8,000 and monthly production capacity to 5 million hats[13] - The company expects the contribution from the Bangladesh facility to increase from approximately 85% to 90% of total production capacity upon full operation[13] - The company is in the process of terminating its retail operations, with revenue from this segment decreasing to HKD 22,157,000, and operating loss narrowing to HKD 4,643,000[12] - The company plans to exit the retail business due to ongoing losses and uncertain market prospects, actively negotiating the sale of its 75% stake in a subsidiary[48] - The acquisition of Aquarius was completed on May 30, 2019, for a total consideration of USD 7,000,000 (approximately HKD 54,460,000) plus a contingent consideration of up to USD 2,000,000 (approximately HKD 15,560,000)[19][136] - Aquarius contributed revenue of HKD 25,157,000 and a net profit of HKD 1,803,000 to the consolidated income statement for the period since acquisition[141] Financial Position - The total assets increased to HKD 1,276,352,000, up from HKD 1,071,593,000, representing a growth of 19.1%[33] - The current assets amounted to HKD 551,822,000, compared to HKD 487,693,000 in the previous year, indicating an increase of 13.1%[35] - The company's equity attributable to owners was HKD 728,198,000, an increase from HKD 705,326,000, showing a growth of 3.3%[36] - The total liabilities rose to HKD 538,250,000, compared to HKD 357,099,000, reflecting a significant increase of 50.7%[36] - The cash and cash equivalents stood at HKD 136,319,000, up from HKD 97,254,000, marking an increase of 40.2%[35] - The total borrowings as of June 30, 2019, increased to HKD 288,883,000, compared to HKD 127,348,000 as of June 30, 2018, indicating a significant increase of approximately 126%[130] Capital Expenditures and Investments - Capital expenditure during the period included approximately HKD 18,600,000 for constructing a factory in Bangladesh and HKD 14,500,000 for equipment upgrades[16] - The company recognized acquisition-related costs of HKD 4,069,000 in the administrative expenses for the period[139] - The company has committed but not yet incurred capital expenditures amounting to HKD 3,775,000 as of June 30, 2019[18] Debt and Financing - The group’s bank credit facilities increased to HKD 533,600,000 as of June 30, 2019, compared to HKD 381,300,000 at the end of 2018, with HKD 239,000,000 unused[15] - The capital debt ratio was reported at 39.1% as of June 30, 2019, up from 21.0% at the end of 2018, indicating increased leverage[15] - The company reported a significant increase in bank borrowings, which rose to HKD 136,664,000 from HKD 45,000,000, marking a 203.7% increase[42] - The net cash from financing activities was HKD 95,568,000, a substantial rise from HKD 2,805,000 in the prior year[42] Employee and Management Information - The group employed 1,076 staff in China and 5,432 in Bangladesh as of June 30, 2019, with total employee expenses of approximately HKD 138,600,000[18] - The total remuneration for key management personnel for the first half of 2019 was HKD 12,341,000, up from HKD 12,156,000 in the same period of 2018, representing an increase of approximately 1.5%[158] - The remuneration for short-term employee benefits for key management personnel increased to HKD 12,230,000 in 2019 from HKD 12,054,000 in 2018, reflecting a growth of approximately 1.5%[158] Shareholder Information - As of June 30, 2019, the company’s directors held a total of 266,308,000 shares, representing 65.70% of the total equity[162] - Major shareholders include Ms. Yan Baoling with 37,808,000 shares (9.33%) and Successful Years International Co., Ltd. with 183,700,000 shares (45.32%)[175] - The total shareholding of major shareholders amounts to 221,508,000 shares, representing 54.65% of the company[175] Accounting and Compliance - New accounting policies were adopted, including the implementation of HKFRS 16 on leases, affecting the recognition of lease liabilities and right-of-use assets[51] - The adoption of HKFRS 16 resulted in an increase of HKD 14,462,000 in both right-of-use assets and lease liabilities as of January 1, 2019[60] - The company confirmed that there were no loss-making lease contracts requiring adjustments to right-of-use assets upon initial application[60] - The company complied with the corporate governance code as per the listing rules during the six months ending June 30, 2019[181] Risk Management - The financial risk factors include market risk (foreign exchange risk, interest rate risk, and price risk), credit risk, and liquidity risk[66] - The company expects that newly issued accounting standards will not have a significant impact on its financial statements in the foreseeable future[62] - The company's financial data should be read in conjunction with the annual financial statements as of December 31, 2018, for comprehensive risk management information[66]