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 何部分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。 ARTS OPTICAL INTERNATIONAL HOLDINGS LIMITED 雅 視 光 學 集 團 有 限 公 司 * （ 於 百 慕 達 註 冊 成 立 之 有 限 公 司 ） （股份代號：1120） 香港，2025年8月14日 董事會會議召開日期 根據香港聯合交易所有限公司證券上市規則第13.43條之規定，茲宣布雅視光學 集團有限公司（「本公司」）之董事會（「董事會」）會議將於2025年8月28日（星期四） 舉行，藉以（其中包括）批准刊發本公司及其附屬公司截至2025年6月30日止六個 月之中期業績公告及考慮派發中期股息。 * 僅供識別 承董事會命 雅視光學集團有限公司 主席 吳海英 於本公告日期，董事會由八名董事組成，其中四名為執行董事，分別為吳海英先生、 吳逸珊女士、吳劍英先生及吳志紅女士；以及四名獨立非執行董事，分別為黃㭝維 先生、鍾曉藍先生、林羽龍先生及方健僑博士。 ...

Core Viewpoint - The company, 雅视光学, anticipates a significant loss for the six months ending June 30, 2025, with expected losses ranging from HKD 12 million to HKD 20 million, contrasting with a profit of approximately HKD 2.5 million in the same period of 2024 [1] Group 1: Financial Performance - The expected loss for the upcoming reporting period is projected to be between HKD 12 million and HKD 20 million [1] - In the same period of 2024, the company reported a profit attributable to owners of approximately HKD 2.5 million [1] Group 2: Reasons for Loss - The anticipated loss is primarily attributed to the impact of U.S. tariff policies, which have disrupted trade between the U.S. and China and affected global supply chains, leading to increased operational costs for production facilities in Vietnam and Malaysia [1] - The development of the eyewear frame distribution and lens business in China and Southeast Asia has resulted in significant increases in employee costs, promotional expenses, and exhibition costs [1] - The company has incurred higher financing costs due to bank borrowings used to fund the establishment of production bases outside of China [1]

Core Viewpoint - The company, 雅视光学, anticipates a significant net loss for the six months ending June 30, 2025, ranging from HKD 12 million to HKD 20 million, contrasting with a net profit of approximately HKD 2.5 million in the same period of 2024 [1] Financial Performance - The expected net loss for the upcoming reporting period is attributed to several factors, including increased operational costs due to U.S. tariff policies affecting trade between the U.S. and China, as well as global supply chain disruptions [1] - The company reported a net profit of approximately HKD 2.5 million in the same period of the previous year [1] Operational Challenges - The establishment of production facilities in Vietnam and Malaysia has led to increased operational costs [1] - Rising employee costs, promotional expenses, and exhibition costs in the Chinese and Southeast Asian markets have significantly impacted the company's financials [1] - The company has incurred higher financing costs due to bank loans taken to fund the establishment of production bases outside of China [1]

Core Viewpoint - The company, 雅视光学 (01120.HK), anticipates a net loss attributable to shareholders ranging from HKD 12 million to HKD 20 million for the six months ending June 30, 2025, compared to a net profit of approximately HKD 2.5 million for the same period in 2024 [1] Group 1: Financial Performance - The expected loss for the reporting period is primarily attributed to the impact of U.S. tariff policies, which have disrupted trade between the U.S. and China and affected global supply chains [1] - The operational costs have increased due to the establishment of production facilities in Vietnam and Malaysia [1] - The company has incurred significant increases in employee costs, promotional expenses, and exhibition costs due to the development of its eyewear frame distribution and lens business in China and Southeast Asia [1] Group 2: Financing and Investment - The group has increased its financing costs significantly due to bank borrowings used to fund the establishment of production bases outside of China [1] - The company plans to acquire a property in Malaysia for HKD 23.828 million [1]

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 何部分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。 ARTS OPTICAL INTERNATIONAL HOLDINGS LIMITED 董事會認為，本公司擁有人應佔預計虧損淨額的原因乃主要由於以下事項： 本公告所載之資料僅基於董事會參考本公司於報告期間之未經審核綜合管理賬目 及董事會目前可得之其他資料的初步評估而得出，有關資料未經本公司核數師審 閱。此外，本公告所載之資料並非基於經董事會審核委員會審閱或批准之任何數 據或資料而得出。本公司仍在落實其於報告期間之未經審核綜合中期業績，有關 資料待進一步審閱後可能作出調整。本公司報告期間之中期業績公告將根據上市 規則預計於2025年8月底刊發。 雅 視 光 學 集 團 有 限 公 司 * （ 於 百 慕 達 註 冊 成 立 之 有 限 公 司 ） （股份代號：1120） 盈利警告 本公告乃由本公司根據上市規則第13.09條及證券及期貨條例第XIVA部項下的 內幕消息條文之規定而發表。董事會謹此通知本公司股 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 雅視光學集團有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01120 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 1,000,000,000 | HKD | | 0.1 HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 1,000,000,000 | HKD | | 0.1 HKD | | 100,000,000 | 本月底法定/註冊股本總額： HKD 100,00 ...

Group 1 - The company, Arts Optic Property (M) Sdn. Bhd., plans to acquire a property from WWRC Malaysia Sdn. Bhd. for 12.88 million MYR (approximately 23.83 million HKD) [1] - The property to be acquired is a semi-detached factory unit with two floors, located in Selangor, Malaysia, covering an area of approximately 3,740 square meters [1] - The acquisition is part of the company's long-term business strategy to expand its optical lens business in Malaysia, providing space for future growth [2] Group 2 - The new property is adjacent to another property currently leased by Arts Optic Lab (M) Sdn. Bhd., which is expected to enhance operational efficiency and control transportation costs [2] - The acquisition will expand the company's fixed asset base and provide opportunities for capital appreciation from the property [2]

Financial Performance - The group recorded a consolidated revenue increase of 7% to HKD 1,282,300,000 for the fiscal year ending December 31, 2024, compared to HKD 1,196,300,000 in 2023[6] - The net profit attributable to the company's owners decreased significantly to HKD 11,400,000, with earnings per share at HKD 0.0296, down from HKD 51,300,000 and HKD 0.1329 in 2023[6] - The gross profit margin declined from 31.0% in 2023 to 29.4% in the reporting period due to significant price pressure from original design manufacturing customers[7] - Revenue from the original design manufacturing segment accounted for 68% of total revenue, with sales increasing by 3% to HKD 875,400,000[8] - The distribution segment's revenue rose by 13% to HKD 294,800,000, representing 23% of total revenue[10] - The eyewear lens segment saw a substantial revenue increase of 38% to HKD 112,100,000, accounting for 9% of total revenue[12] - Operating profit decreased significantly to HKD 21,744 thousand in 2024, down 48.7% from HKD 42,070 thousand in 2023[151] - Net profit for the year was HKD 15,808 thousand, a decline of 72.1% compared to HKD 56,696 thousand in 2023[152] - The company reported a loss of HKD 2,012 thousand in total comprehensive income attributable to owners in 2024, compared to a gain of HKD 61,834 thousand in 2023[152] - The total comprehensive income for the year was HKD 1,327,000, a decrease from HKD 67,596,000 in 2023, indicating a substantial drop in overall profitability[158] Cash Flow and Financial Position - Operating cash inflow was HKD 54,700,000, down from HKD 68,100,000 in 2023, while capital expenditures increased significantly to HKD 174,100,000[13] - The company's cash net position decreased from a surplus of HKD 136,100,000 to a deficit of HKD 13,800,000[13] - The debt-to-equity ratio increased from 6% to 27% due to higher bank borrowings, which amounted to HKD 96,400,000[15] - The net asset value per share decreased to HKD 1.35 from HKD 1.40 in the previous year[16] - Total assets increased to HKD 773,149 thousand in 2024, up from HKD 747,382 thousand in 2023[154] - Current liabilities increased to HKD 649,102 thousand in 2024, up from HKD 613,953 thousand in 2023[154] - The company's total equity decreased to HKD 604,995 thousand in 2024 from HKD 631,808 thousand in 2023[155] - The company incurred a net cash outflow from investing activities of HKD 183,258,000 in 2024, compared to HKD 74,014,000 in 2023, indicating a significant increase in investment expenditures[161] Dividends and Shareholder Returns - The board of directors does not recommend a final dividend for the year ending December 31, 2024, compared to a dividend of HKD 0.05 per share in 2023[24] - The company paid dividends of HKD 19,313,000 to shareholders in 2024, reduced from HKD 38,626,000 in 2023, reflecting a 50% decrease in dividend payouts[161] Operational Developments - The company anticipates significant pricing pressure from U.S. customers due to additional tariffs imposed by the Trump administration starting in early 2025[21] - The company has established manufacturing facilities for optical frames and lenses in Southeast Asia, which began operations in Q4 2024, to meet the growing demand for production bases outside of China[21] - The distribution and lens segments have shown profit margin growth, indicating their increasing importance to the company's future development[23] - The company plans to increase resources in the Asian region to establish a self-owned network or form joint ventures with strategic distribution partners[23] Governance and Compliance - The board consists of eight directors, with four executive directors and four independent non-executive directors, all of whom attended 100% of board meetings[83] - The company has adhered to all applicable code provisions of the Corporate Governance Code for the year ending December 31, 2024[81] - The company has established an audit committee, a remuneration committee, and a nomination committee to oversee various aspects of its affairs[93] - The independent auditor's report confirms that the consolidated financial statements present a true and fair view of the group's financial position as of December 31, 2024[129] - The company has adopted a shareholder communication policy since 2012 to ensure shareholders receive comprehensive and timely information[126] Employee and Diversity Initiatives - Approximately 3,600 full-time employees were employed as of December 31, 2024, a slight decrease from 3,700 employees as of December 31, 2023[97] - The company aims to maintain gender diversity among employees, with a male-to-female ratio of approximately 0.85 as of December 31, 2024[99] Accounting and Financial Reporting - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, including HKAS 1 (revised) on classification of liabilities as current or non-current[165] - The financial statements are prepared in Hong Kong dollars, differing from the company's functional currency, which is US dollars[163] - The financial statements comply with applicable disclosure requirements under the Listing Rules of the Stock Exchange and the Companies Ordinance[164] - The company applies the acquisition method for accounting business combinations, measuring identifiable assets and liabilities at fair value on the acquisition date[176] Risk Management and Internal Controls - The audit committee reviewed the effectiveness and adequacy of the group's risk management and internal control systems for the year ending December 31, 2024, with no significant issues found but noted areas for improvement[116] - The company has established an insider information disclosure policy to ensure timely handling and release of insider information, preventing any individual from having an advantage in trading the company's securities[117]

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 1,282,272,000, representing an increase of 7.2% from HKD 1,196,309,000 in 2023[4] - Profit attributable to owners of the company decreased to HKD 11,419,000, down 77.8% from HKD 51,321,000 in the previous year[4] - Earnings per share for 2024 was HKD 0.0296, a decline from HKD 0.1329 in 2023[7] - The company did not declare a final dividend for the year, compared to a final dividend of HKD 0.050 per share in 2023[4] - Total comprehensive income for the year was HKD 1,327,000, a significant drop from HKD 67,596,000 in 2023[6] Revenue Breakdown - The original design manufacturing segment generated revenue of HKD 875,424,000, up from HKD 853,987,000, reflecting a growth of 2.9%[15] - The distribution segment reported revenue of HKD 294,790,000, a 13% increase from HKD 260,775,000 in the previous year[15] - The eyewear lens segment saw significant growth, with revenue rising to HKD 112,058,000 from HKD 81,547,000, marking a 37.5% increase[15] - Revenue from the original design manufacturing segment accounted for 68% of total revenue in 2024, down from 71% in 2023, with sales increasing by 3% to HKD 875,400,000[36] - Revenue from the distribution segment increased by 13% from HKD 260,800,000 in 2023 to HKD 294,800,000 in 2024, accounting for 23% of the group's total revenue in 2024[38] - The revenue from the lens segment surged by 38% from HKD 81,500,000 in 2023 to HKD 112,100,000 in 2024, representing 9% of the group's total revenue in 2024[39] Costs and Expenses - Gross profit for the year was HKD 376,482,000, slightly up from HKD 370,989,000 in 2023, indicating a gross margin improvement[6] - Operating profit decreased significantly to HKD 21,744,000 from HKD 42,070,000 in the previous year, reflecting operational challenges[6] - The cost of goods sold for the year 2024 was HKD 908,308,000, compared to HKD 823,084,000 in 2023, reflecting an increase of 10.4%[25] - The total employee costs for the year 2024 amounted to HKD 454,066,000, an increase of 3.3% from HKD 437,341,000 in 2023[25] - The company incurred a total financing cost of (5,066) thousand HKD in 2024, compared to (685) thousand HKD in 2023, indicating a significant increase in financing expenses[21] Assets and Liabilities - Non-current assets increased from HKD 529,162,000 in 2023 to HKD 622,664,000 in 2024, representing a growth of 17.6%[8] - Total liabilities rose from HKD 613,953,000 in 2023 to HKD 649,102,000 in 2024, an increase of 5.7%[9] - The company’s net asset value decreased from HKD 631,808,000 in 2023 to HKD 604,995,000 in 2024, a decline of 4.2%[9] - The company reported a significant increase in bank borrowings, rising from HKD 16,545,000 in 2023 to HKD 69,714,000 in 2024[9] - Trade payables increased to HKD 173,490,000 in 2024 from HKD 155,388,000 in 2023[29] Foreign Exchange and Impairment - The company experienced a foreign exchange loss of HKD 10,782,000 related to overseas operations, contrasting with a gain of HKD 10,762,000 in the previous year[6] - The net foreign exchange loss for 2024 was (15,010) thousand HKD, compared to (13,521) thousand HKD in 2023, indicating a deterioration of 11%[17] - The company reported a total impairment loss of 1,514 thousand HKD for 2024, compared to a reversal of (81) thousand HKD in 2023[21] - The impairment loss on accounts receivable for 2024 was HKD 1,514,000, compared to a reversal of HKD 81,000 in 2023[25] Market and Operational Outlook - The group faces significant operational challenges in the coming years but maintains a cautiously optimistic outlook, focusing on prudent decision-making and strategic resource optimization[48] - The market outlook indicates potential growth in smart glasses driven by consumer demand and technological integration, despite geopolitical and economic uncertainties[47] - The company anticipates significant pricing pressure from U.S. customers due to tariffs imposed by the Trump administration starting in early 2025[49] - The company recognizes unlimited business opportunities in the Asian region and plans to enhance resources to establish a self-sufficient network or joint ventures with strategic distribution partners[49] Corporate Governance and Compliance - The company has adhered to all applicable corporate governance codes as outlined in the Hong Kong Stock Exchange's listing rules for the fiscal year ending December 31, 2024[52] - The consolidated financial statements for the year ending December 31, 2024, have been reviewed by the audit committee and audited by the company's auditor[54]

[Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=4&type=section&id=Business%20Review) In H1 2024, the Group's consolidated revenue increased by 7% to HKD 606.4 million, but profit attributable to owners significantly declined by 88% to HKD 2.5 million, primarily due to ODM gross margin pressure, increased investment property revaluation losses, reduced associate earnings, and higher costs from optical lens business expansion [Profitability Analysis](index=4&type=section&id=Profitability%20Analysis) Key Financial Indicators for H1 2024 | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Consolidated Revenue | 606,400,000 HKD | 566,400,000 HKD | +7% | | Profit Attributable to Owners | 2,500,000 HKD | 21,700,000 HKD | -88.5% | | Earnings Per Share | 0.64 HK cents | 5.61 HK cents | -88.6% | | Gross Profit Margin | 28.4% | 30.2% | -1.8pp | - The significant decrease in net profit was primarily due to **declining gross profit margin** from 30.2% to 28.4% due to substantial price pressure from Original Design Manufacturer (ODM) clients[10](index=10&type=chunk) - **Increased investment property revaluation losses** expanded from HKD 0.7 million to **HKD 4 million**[10](index=10&type=chunk) - **Reduced earnings from associates** significantly decreased from HKD 9.2 million to **HKD 4.2 million** due to pricing competition[10](index=10&type=chunk) - **Increased costs** were incurred for staff, promotion, and exhibition expenses to develop the optical lens business in China and Southeast Asia[10](index=10&type=chunk) [Original Design Manufacturer (ODM) Segment](index=4&type=section&id=Original%20Design%20Manufacturer%20(ODM)%20Segment) Original Design Manufacturer (ODM) Segment Performance | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Sales | 419,000,000 HKD | 398,100,000 HKD | +5% | | % of Consolidated Revenue | 69% | 70% | -1pp | - Revenue growth was primarily driven by the Asian market, which achieved a significant **80% increase**[11](index=11&type=chunk) - Geographically, Europe, the US, Asia, and other regions accounted for **49%, 25%, 25%, and 1%** of the segment's revenue, respectively[11](index=11&type=chunk) [Distribution Segment](index=5&type=section&id=Distribution%20Segment) Distribution Segment Performance | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 140,300,000 HKD | 129,700,000 HKD | +8% | | % of Consolidated Revenue | 23% | 23% | Flat | - Sales in the Asian region saw a significant **37% year-on-year increase**, mainly due to marketing efforts in mainland China[12](index=12&type=chunk) - The German brand STEPPER remains the most popular brand in this segment[12](index=12&type=chunk) [Optical Lens Segment](index=5&type=section&id=Optical%20Lens%20Segment) Optical Lens Segment Performance | Indicator | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 47,100,000 HKD | 38,600,000 HKD | +22% | | % of Consolidated Revenue | 8% | 7% | +1pp | - The substantial increase in sales was primarily due to the Group's expansion of its optical lens factory production facilities in H2 2023[13](index=13&type=chunk) - Almost all current revenue is generated from Asia[13](index=13&type=chunk) [Financial Position and Liquidity](index=5&type=section&id=Financial%20Position%20and%20Liquidity) The Group's net cash significantly decreased due to capital expenditure and dividend payments, yet its gearing remained low with a debt-to-equity ratio of 6%, while working capital management saw shorter accounts receivable collection but longer inventory turnover [Cash Flow](index=5&type=section&id=Cash%20Flow) - Net cash inflow from operating activities was **HKD 28.2 million**, a decrease from HKD 59.1 million in the prior year period[14](index=14&type=chunk) - Net cash (bank balances and cash less bank borrowings) decreased from **HKD 136 million** at the end of 2023 to **HKD 72.4 million** at the end of the reporting period, primarily due to the purchase of property, plant, and equipment (HKD 73.2 million) and dividend payments (HKD 19.3 million)[14](index=14&type=chunk) [Working Capital Management](index=6&type=section&id=Working%20Capital%20Management) Changes in Working Capital Indicators | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Accounts Receivable Turnover Period | 91 Days | 105 Days | | Inventory Turnover Period | 71 Days | 63 Days | - The Group strengthened control over inventory levels and trade receivables, with inventory and accounts receivable balances decreasing by **7% and 14%**, respectively, compared to the end of 2023[15](index=15&type=chunk) - The current ratio remained stable, decreasing from **1.2 to 1.1**[15](index=15&type=chunk) [Balance Sheet and Net Assets](index=6&type=section&id=Balance%20Sheet%20and%20Net%20Assets) - The gearing ratio remained low at approximately **6%** as of June 30, 2024[16](index=16&type=chunk) - Net assets per share decreased from **HKD 1.40** at the end of 2023 to **HKD 1.34** as of June 30, 2024[17](index=17&type=chunk) [Other Financial Items](index=6&type=section&id=Other%20Financial%20Items) - As of June 30, 2024, the Group had no significant contingent liabilities[18](index=18&type=chunk) - As of June 30, 2024, the Group had **HKD 20 million** in bank borrowings secured by investment properties and leasehold land and buildings[19](index=19&type=chunk) [Risk Management and Outlook](index=7&type=section&id=Risk%20Management%20and%20Outlook) The Group faces limited foreign exchange risk, but global economic uncertainties and pricing pressures will challenge the ODM business, while Asia presents growth opportunities for distribution and optical lens segments with planned increased resource allocation [Foreign Currency Risk](index=7&type=section&id=Foreign%20Currency%20Risk) - The Group primarily faces volatility risk from the Renminbi against the US Dollar and Hong Kong Dollar, but overall foreign exchange risk is limited as most transactions are conducted in USD, HKD, or RMB[20](index=20&type=chunk) - The Group closely monitors exchange rate movements and enters into forward contracts when appropriate[20](index=20&type=chunk) [Outlook](index=7&type=section&id=Outlook) - Due to global economic volatility, military conflicts, and US-China trade tensions, pricing pressure in the Original Design Manufacturer (ODM) segment is expected to persist, leading to a severe and challenging business environment in the coming years[21](index=21&type=chunk) - The Distribution and Optical Lens segments are becoming increasingly important for the Group's future development, with the Group recognizing business opportunities in Asia and planning to increase resources to establish its own network or form joint ventures with strategic partners in the region[21](index=21&type=chunk) [Other Matters](index=7&type=section&id=Other%20Matters) No significant events occurred post-reporting period, with the Group having HKD 164 million in capital commitments primarily for subsidiary investments and buildings under construction, and approximately 3,600 full-time employees as of June 30, 2024 [Significant Events and Future Plans](index=7&type=section&id=Significant%20Events%20and%20Future%20Plans) - No events with significant impact on the Group occurred from June 30, 2024, to the date of this report[22](index=22&type=chunk) - As of June 30, 2024, the Group's capital commitments amounted to **HKD 163.8 million**, with no other significant investment and capital expenditure plans[23](index=23&type=chunk) [Employees and Remuneration Policy](index=8&type=section&id=Employees%20and%20Remuneration%20Policy) - As of June 30, 2024, the Group employed approximately **3,600 full-time employees**, a slight decrease from 3,700 at the end of 2023[24](index=24&type=chunk) - Remuneration is determined based on employee performance, experience, and market levels[24](index=24&type=chunk) [Condensed Consolidated Financial Statements](index=9&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) During the reporting period, revenue grew 7% to HKD 606 million, but gross profit remained flat, operating profit decreased from HKD 22.64 million to HKD 7.95 million, and profit for the period significantly fell to HKD 5.53 million, with profit attributable to owners down 88.6% to HKD 2.46 million Condensed Consolidated Income Statement Summary (HKD '000) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 606,394 | 566,454 | | Gross Profit | 172,039 | 171,227 | | Operating Profit | 7,953 | 22,641 | | Profit Before Tax | 11,091 | 31,560 | | Profit for the Period | 5,534 | 24,497 | | Profit Attributable to Owners of the Company | 2,460 | 21,675 | [Condensed Consolidated Statement of Financial Position](index=12&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets were HKD 1.245 billion, total liabilities HKD 636 million, and net assets HKD 609 million, representing a slight decrease from end-2023, with net current assets falling from HKD 133 million to HKD 83.33 million Condensed Consolidated Statement of Financial Position Summary (HKD '000) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Non-current Assets | 556,212 | 529,162 | | Current Assets | 688,422 | 747,382 | | **Total Assets** | **1,244,634** | **1,276,544** | | Current Liabilities | 605,095 | 613,953 | | Non-current Liabilities | 30,441 | 30,783 | | **Total Liabilities** | **635,536** | **644,736** | | **Net Assets** | **609,098** | **631,808** | | Equity Attributable to Owners of the Company | 516,803 | 541,923 | [Condensed Consolidated Statement of Changes in Equity](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2024, equity attributable to owners decreased from HKD 542 million at the beginning of the period to HKD 517 million, primarily due to total comprehensive expenses and dividends paid during the period - Equity attributable to owners of the Company decreased from **HKD 542 million** at the beginning of the period to **HKD 517 million** at the end of the period[30](index=30&type=chunk) - The change primarily includes profit for the period of **HKD 2.46 million**, other comprehensive expenses of **HKD 7.83 million**, and dividends paid of **HKD 19.31 million**[32](index=32&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash inflow from operating activities was HKD 28.22 million, a year-on-year decrease, while net cash outflow from investing activities was HKD 66.24 million, mainly for property, plant, and equipment, and net cash inflow from financing activities was HKD 13.04 million, resulting in a decrease in cash and cash equivalents to HKD 124 million at period-end Condensed Consolidated Cash Flow Statement Summary (HKD '000) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 28,223 | 59,145 | | Net Cash Used in Investing Activities | (66,243) | (28,929) | | Net Cash from/(Used in) Financing Activities | 13,039 | (45,153) | | Net Decrease in Cash and Cash Equivalents | (24,981) | (14,937) | | Cash and Cash Equivalents at Beginning of Period | 151,563 | 189,710 | | Cash and Cash Equivalents at End of Period | 123,530 | 176,107 | [Notes to the Condensed Consolidated Financial Statements](index=16&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [Notes 1-4: Basis of Preparation, Accounting Policies and Segment Information](index=16&type=section&id=Notes%201-4%3A%20Basis%20of%20Preparation%2C%20Accounting%20Policies%20and%20Segment%20Information) The financial statements are prepared under HKAS 34, adopting new and revised financial reporting standards, with business segments categorized by geographical markets: Europe, US, Asia, and Other Regions, where Europe is the largest revenue source but Asia shows significant growth Revenue from External Customers by Geographical Region (HKD '000) | Region | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Europe | 295,998 | 333,586 | -11.3% | | United States | 120,353 | 103,826 | +15.9% | | Asia | 170,495 | 110,326 | +54.5% | | Other Regions | 19,548 | 18,716 | +4.4% | | **Total** | **606,394** | **566,454** | **+7.0%** | [Notes 5-9: Profit and Dividend Details](index=27&type=section&id=Notes%205-9%3A%20Profit%20and%20Dividend%20Details) Finance costs increased year-on-year due to higher bank borrowing interest, income tax expense was HKD 5.56 million, the Board resolved not to declare an interim dividend, and basic earnings per share were 0.64 HK cents, significantly lower than 5.61 HK cents in the prior period - The Board resolved not to declare any interim dividend for the six months ended June 30, 2024 (H1 2023: nil)[60](index=60&type=chunk) - Basic earnings per share were **0.64 HK cents**, calculated based on profit attributable to owners of the Company of **HKD 2,460,000** and **386,263,374** issued shares[62](index=62&type=chunk)[63](index=63&type=chunk) [Notes 10-15: Assets, Liabilities and Borrowings Details](index=31&type=section&id=Notes%2010-15%3A%20Assets%2C%20Liabilities%20and%20Borrowings%20Details) Investment properties saw a fair value decrease of HKD 4 million, accounts receivable balances declined with a healthy aging structure, and total bank borrowings increased to HKD 52.26 million, partly floating-rate and secured by Group properties - During the period, a loss of **HKD 4 million** was recognized in profit or loss due to a decrease in the fair value of investment properties[64](index=64&type=chunk) Trade Receivables Aging Analysis (HKD '000) | Aging | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | 0 – 90 Days | 226,305 | 235,296 | | 91 – 180 Days | 64,108 | 104,895 | | Over 180 Days | 13,226 | 13,419 | | **Total** | **303,639** | **353,610** | - As of June 30, 2024, total secured bank borrowings amounted to **HKD 52.26 million**, a significant increase from HKD 16.55 million at the end of 2023[77](index=77&type=chunk) [Notes 16-19: Share Capital, Commitments and Related Party Transactions](index=37&type=section&id=Notes%2016-19%3A%20Share%20Capital%2C%20Commitments%20and%20Related%20Party%20Transactions) The company's issued share capital remained unchanged, with capital commitments of HKD 164 million at period-end, and routine business transactions, primarily sales and purchases of optical products, were conducted with an associate during the period Summary of Capital Commitments (HKD '000) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Establishment costs for investments in subsidiaries | 119,994 | 151,310 | | Buildings under construction | 39,264 | 32,999 | | Machinery and plant | 3,808 | 7,013 | | **Total** | **163,753** | **193,057** | - During the period, the Group sold optical frames and sunglasses worth **HKD 59.44 million** to an associate (H1 2023: HKD 84.35 million)[82](index=82&type=chunk) [Additional Information](index=40&type=section&id=Additional%20Information) [Shareholder and Board Matters](index=40&type=section&id=Shareholder%20and%20Board%20Matters) The Board resolved not to declare an interim dividend, no listed shares were purchased, sold, or redeemed during the period, and director and major shareholder holdings, including Chairman Mr. Wu Hoi Ying and his spouse as controlling shareholders with approximately 56.25% interest, were disclosed as required - The Board resolved not to declare any interim dividend for the six months ended June 30, 2024[88](index=88&type=chunk) - During the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[90](index=90&type=chunk) Major Directors' Shareholdings (as at June 30, 2024) | Director Name | Total Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | | Wu Hoi Ying (Chairman) | 217,289,347 | 56.25% | | Wu Chi Hung (Spouse of Wu Hoi Ying) | 217,289,347 | 56.25% | [Corporate Governance](index=42&type=section&id=Corporate%20Governance) The company complied with all applicable Corporate Governance Code provisions during the reporting period, with the Audit, Remuneration, and Nomination Committees established and fulfilling their duties, and the Audit Committee having reviewed this interim report - The Company has complied with all applicable code provisions set out in the Corporate Governance Code contained in Appendix C1 to the Listing Rules throughout the six months ended June 30, 2024[95](index=95&type=chunk) - The Group's interim report has been reviewed by the Audit Committee, whose members are all independent non-executive directors[95](index=95&type=chunk) [Company Information](index=44&type=section&id=Company%20Information) This section provides the company's basic registration details, board members, principal office address, auditor, legal counsel, and share registrar contact information - **Chairman**: Wu Hoi Ying - **Chief Executive Officer**: Wu Yat Shan - **Auditor**: RSM Hong Kong - **Principal Place of Business in Hong Kong**: Units A to G, 32nd Floor, King Palace Plaza, 55 King Yip Street, Kwun Tong, Kowloon, Hong Kong[98](index=98&type=chunk)