Financial Performance - For the six months ended June 30, 2024, the group recorded revenue of approximately HKD 197,400,000, an increase of about 1.2% compared to HKD 195,100,000 for the same period in 2023[7]. - Gross profit decreased by approximately HKD 15,500,000 or 46.5% to about HKD 17,800,000 for the six months ending June 30, 2024, with a gross margin decline from 17.0% to 9.0% due to intense market competition[9]. - The company reported a total comprehensive loss of HKD 16,180,000 for the six months ended June 30, 2024, compared to a total comprehensive income of HKD 2,253,000 for the same period in 2023[50]. - The group reported a loss of approximately HKD 12,300,000 for the six months ending June 30, 2024, compared to a profit of about HKD 5,400,000 for the same period in 2023, mainly due to reduced gross profit from eyewear products[16]. - The company recorded a loss attributable to owners of HKD 12,250,000 for the six months ended June 30, 2024, compared to a profit of HKD 5,369,000 in the previous year[47]. Revenue and Market Insights - The global eyewear market size was approximately USD 159.6 billion in 2023, with a projected compound annual growth rate of about 6.2% from 2023 to 2032, reaching a value of USD 279.4 billion by 2028[6]. - Revenue for the six months ended June 30, 2024, was HKD 197,412,000, a slight increase from HKD 195,082,000 in the same period of 2023, representing a growth of 1.1%[58]. - Revenue from Italy significantly increased to HKD 87,770,000, up 46.8% from HKD 59,788,000 in 2023[58]. - Major customer contributions included Customer A with HKD 44,044,000 (down 16.2% from HKD 52,394,000), Customer B with HKD 31,849,000 (up 15.5% from HKD 27,693,000), and Customer C with HKD 22,887,000 (up 29.2% from HKD 17,735,000)[60]. Cost and Expenses - The group's cost of sales increased by approximately HKD 17,800,000 or 11.0% to approximately HKD 179,600,000 for the six months ended June 30, 2024, primarily due to an increase in sales volume[8]. - Selling and distribution expenses slightly decreased by approximately HKD 1,900,000 or 26.0% to about HKD 5,400,000, attributed to a significant reduction in advertising and promotional expenses[12]. - Administrative and other operating expenses increased by approximately HKD 2,300,000 or 8.2% to about HKD 30,500,000, mainly due to rising employee costs and increased rent for new leased properties[13]. - Other income fell by approximately HKD 600,000 to about HKD 3,000,000, primarily due to a reduction in government subsidies from the Chinese government[10]. Assets and Liabilities - Total assets as of June 30, 2024, were approximately HKD 258,000,000, down from HKD 264,000,000 as of December 31, 2023, with a slight increase in the debt-to-equity ratio to 8.6%[17]. - Cash and bank balances decreased by approximately HKD 1,700,000 to about HKD 18,600,000, primarily due to cash used for property renovations and machinery purchases[18]. - The company's current liabilities increased to HKD 79,763,000 from HKD 68,143,000 at the end of 2023, reflecting a rise of 17.1%[48]. - The net asset value as of June 30, 2024, is HKD 167,011,000, a decrease of 8.8% from HKD 183,191,000 as of December 31, 2023[49]. Employee and Governance - The group employed a total of 1,062 employees, with 1,045 in China and 17 in Hong Kong as of June 30, 2024[28]. - Total employee benefit expenses, including directors' remuneration, were approximately HKD 55,400,000 and HKD 57,200,000 for the six months ended June 30, 2024, and June 30, 2023, respectively[28]. - The company maintained compliance with all applicable corporate governance codes during the six months ended June 30, 2024[32]. - The company adopted the corporate governance code as per the Stock Exchange's listing rules to enhance transparency and accountability[32]. Future Outlook and Strategy - The economic outlook remains uncertain, with major central banks implementing monetary tightening policies, impacting consumer purchasing power[5]. - The group aims to maintain and enhance the attractiveness, reputation, and customer loyalty of its products to improve future profitability[6]. - The group is committed to developing and optimizing its core eyewear business while exploring new business opportunities for revenue diversification[6]. - The group will continue to adjust its marketing strategies in response to the economic environment, particularly in the Eurozone[6]. Operational Insights - The group continues to operate two main production bases in Shenzhen and Jiangxi, China, allowing for the manufacturing of various sizes and specifications of eyewear products[5]. - The group operates under ODM and OEM business models, providing comprehensive and customized services including product design, raw material procurement, production, quality control, packaging, and delivery[5]. - The company continues to focus on the design, production, and sale of eyewear products as its single operating segment[57]. - The company has not disclosed any new product developments or market expansion strategies during this reporting period[56].

Financial Performance - The company recorded a net profit of HKD 1,400,000 for the year 2023, a decrease from HKD 9,200,000 in 2022, reflecting the challenging global economic environment [7]. - Total revenue for 2023 was HKD 393,284,000, down from HKD 465,430,000 in 2022, indicating a decline of approximately 15.5% [11]. - Gross profit for 2023 was HKD 56,979,000, compared to HKD 76,017,000 in 2022, representing a decrease of about 25.1% [11]. - Operating profit for 2023 was HKD 3,831,000, a significant decline from HKD 11,396,000 in 2022 [11]. - The net profit for the year ended December 31, 2023, was approximately HKD 1,400,000, a decrease of about HKD 7,800,000 or 84.8% from HKD 9,200,000 for the year ended December 31, 2022 [31]. - The company's gross profit decreased by approximately HKD 19,000,000 or 25.0% to about HKD 57,000,000, with the overall gross margin declining from 16.3% to 14.5% due to a drop in average selling prices and additional costs incurred during the relocation of leased factories [21]. - The company reported other income of HKD 18,212,000 in 2023, a notable increase from HKD 9,256,000 in 2022, reflecting a growth of approximately 96.5% [11]. - Other income increased to approximately HKD 18,200,000 for the year ended December 31, 2023, from HKD 9,300,000 in the previous year, primarily due to compensation received from the demolition of leased factories [22]. Business Strategy and Outlook - The company plans to maintain a cautious yet optimistic outlook for short-term business development in 2024, focusing on stability and effective growth [8]. - The company aims to seek new business opportunities for better diversification in the future [8]. - The company anticipates a slow recovery in the European economy, with the Eurozone GDP growth rate projected to rise to 0.9% [14]. - The company is actively implementing cost-saving measures and optimizing its supply chain to mitigate adverse financial impacts [14]. - The company aims to diversify its business and revenue sources to reduce potential risks and uncertainties [18]. Assets and Liabilities - Total assets as of December 31, 2023, were HKD 264,004,000, a slight increase from HKD 251,896,000 in 2022 [12]. - Total liabilities increased to HKD 80,813,000 in 2023 from HKD 65,324,000 in 2022, indicating a rise of approximately 23.8% [12]. - The net asset value as of December 31, 2023, was approximately HKD 183.2 million, down from HKD 186.6 million in 2022 [34]. - The group's debt-to-equity ratio increased to approximately 8.3% as of December 31, 2023, compared to 1.1% in 2022 [34]. - Cash and bank balances decreased to approximately HKD 20.3 million as of December 31, 2023, from HKD 46.4 million in 2022, a reduction of approximately HKD 26.1 million [35]. - The current ratio as of December 31, 2023, was approximately 3.1 times, down about 8.8% from 3.4 times at the end of 2022 [34]. - The quick ratio decreased to approximately 2.0 times as of December 31, 2023, down about 13.0% from 2.3 times at the end of 2022 [34]. Corporate Governance - The company has adopted the corporate governance code and believes it has complied with all applicable provisions for the year ending December 31, 2023 [76]. - All independent non-executive directors confirmed their independence according to the listing rules [88]. - The company’s governance practices are regularly reviewed to meet stakeholder expectations and regulatory requirements [75]. - The roles of the chairman and CEO are clearly separated to ensure effective governance [84]. - The company has a commitment to high standards of corporate governance to protect shareholder interests and enhance corporate value [76]. - The board of directors is collectively responsible for guiding and supervising the company's affairs, ensuring effective internal control and risk management systems [92]. - At least one-third of the board members are independent non-executive directors, ensuring independent viewpoints and opinions [93]. - The audit committee, composed of three independent non-executive directors, reviewed and monitored the group's financial reporting procedures and internal control effectiveness during the year [100]. - The company held three audit committee meetings in the fiscal year, discussing interim and annual financial statements and recommending the reappointment of auditors [101]. - The remuneration committee, primarily composed of independent non-executive directors, reviews and provides recommendations on the remuneration of directors and senior management [103]. - The company encourages continuous professional development for all directors, ensuring they remain informed about regulatory developments [95]. - The board has established four committees: audit, remuneration, nomination, and risk management, to oversee specific aspects of the company's affairs [98]. Shareholder Information - The company has a significant shareholding structure, with both Mr. Guo Junhui and Mr. Guo Junyu holding 275,952,000 shares each, representing 55.19% of the total shares [162]. - The major shareholder, Top Peak, holds 275,952,000 shares, representing approximately 55.19% of the company's equity [168]. - The beneficial ownership of Top Peak is distributed as follows: Mr. Guo Junhui (49%), Mr. Guo Junyu (49%), and Mrs. Guo (2%) [166]. - The company has established service contracts for its executive and non-executive directors, with a term of three years for executive directors and one year for independent non-executive directors [152]. - The annual general meeting is scheduled for May 29, 2024, with a suspension of share transfer registration from May 23 to May 29, 2024 [147]. - The company has confirmed the independence of its independent non-executive directors as of the report date [150]. - The company has not purchased, sold, or redeemed any of its listed securities during the fiscal year ending December 31, 2023 [144]. - The company has not been informed of any tax relief available to shareholders for holding its securities [146]. - The board of directors is responsible for considering various factors when determining dividend recommendations, including the company's current and future business performance and financial condition [121]. - The company maintains effective communication with shareholders and potential investors through various channels, including its website [130]. Future Plans and Developments - The company provided guidance for the next fiscal year, projecting revenue growth of 25% to $187.5 million [59]. - New product launches are expected to contribute an additional $30 million in revenue, with a focus on innovative eyewear technology [59]. - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years [59]. - A strategic acquisition of a local competitor is anticipated to enhance the company's production capabilities and market reach, expected to close by Q3 2024 [59]. - Research and development expenses increased by 18%, totaling $5 million, to support new technology initiatives [59]. - The company plans to enhance its online sales platform, aiming for a 30% increase in e-commerce revenue [59]. - Operational efficiency improvements are projected to reduce costs by 12%, contributing to overall profitability [59]. - The management team emphasized a commitment to sustainability, with plans to implement eco-friendly materials in 50% of new products by 2025 [59].

Financial Performance - For the year ended December 31, 2023, total revenue decreased to HKD 393,284,000 from HKD 465,430,000, representing a decline of approximately 15.5%[4] - Gross profit for the same period was HKD 56,979,000, down from HKD 76,017,000, indicating a decrease of about 25.1%[4] - Operating profit fell to HKD 3,831,000 compared to HKD 11,396,000 in the previous year, a decline of approximately 66.4%[4] - The net profit attributable to shareholders decreased significantly to HKD 1,388,000 from HKD 9,183,000, reflecting a drop of around 84.9%[4] - Basic and diluted earnings per share decreased to HKD 0.28 cents from HKD 1.84 cents, a reduction of approximately 84.8%[6] - The annual profit for the group in 2023 was HKD 1,388,000, compared to HKD 9,183,000 in 2022, reflecting a significant decrease[37] - The net profit for the year decreased by approximately HKD 7.8 million or 84.8% to about HKD 1.4 million, mainly due to reduced marketing revenue and profit margins from eyewear products[74] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 212,668,000, slightly down from HKD 221,846,000 in the previous year[8] - The company's cash and cash equivalents decreased to HKD 20,334,000 from HKD 46,403,000, a decline of about 56.3%[8] - Non-current liabilities increased significantly to HKD 12,670,000 from HKD 983,000, indicating a rise of approximately 1,287.4%[9] - The company's asset-liability ratio increased to 8.3% as of December 31, 2023, up from 1.1% in 2022, primarily due to an increase in lease liabilities[56] - As of December 31, 2023, the company's total assets were approximately HKD 264 million, with a net asset value of about HKD 183.2 million[76] Revenue Sources - Revenue from the sale of eyewear products for the year ended December 31, 2023, was reported at HKD 393,284,000, a decrease from HKD 465,430,000 in 2022, representing a decline of approximately 15.5%[23] - Revenue contributions from major customers included Customer A at HKD 102,432,000, Customer B at HKD 50,763,000, and Customer C at HKD 45,541,000 for 2023[26] Costs and Expenses - The cost of goods sold for 2023 was HKD 331,349,000, down from HKD 384,128,000 in 2022, indicating a reduction of approximately 13.8%[35] - The group’s employee costs for 2023 were HKD 123,118,000, down from HKD 128,282,000 in 2022, reflecting a decrease of approximately 4.0%[35] - The company recorded a net finance cost increase of approximately HKD 1 million or 142.9% to about HKD 1.7 million, attributed to the use of higher interest trade receivable factoring[72] Other Income and Expenses - Other income increased to HKD 18,212,000 in 2023 from HKD 9,256,000 in 2022, primarily due to a one-time economic compensation of HKD 10,932,000 received from the demolition of leased property[27] - The income tax expense for 2023 was HKD 790,000, compared to HKD 1,498,000 in 2022, reflecting a decrease of approximately 47.3%[30] Inventory and Receivables - Inventory levels increased to HKD 74,764,000 from HKD 71,183,000, reflecting a rise of about 5.5%[8] - Trade receivables increased to HKD 109,558,000 in 2023 from HKD 96,373,000 in 2022, representing a growth of about 13.7%[38] - The group reported a decrease in impairment losses on trade receivables, with a loss of HKD 491,000 in 2023 compared to HKD 601,000 in 2022[38] Accounting Standards and Policies - The group adopted the revised Hong Kong Accounting Standard No. 12, which narrowed the scope of initial recognition exemptions, excluding transactions that generate equal and offsetting temporary differences related to leases[15] - The impact of the revised standard on deferred tax assets and liabilities is minor, with no significant effect on the overall deferred tax balance presented in the consolidated financial position[17] - The group expects that the adoption of other new accounting standards will not have a significant impact on the consolidated financial statements in the foreseeable future[19] - The group has not early adopted any new or revised accounting standards that are not yet effective, with the next set of standards effective from January 1, 2024[19] Market and Strategic Outlook - The global eyewear market value reached USD 159.6 billion in 2023, reflecting a year-on-year growth of 6.9%[59] - The company faced an 84.9% decline in profitability in 2023 due to challenges such as decreased consumer purchasing power and rising labor costs[59] - The company is actively implementing cost-saving measures and optimizing its supply chain to mitigate adverse financial impacts[59] - The company remains vigilant regarding market trends and consumer behavior, planning to adopt strategies to mitigate potential risks and capitalize on opportunities for business diversification[61] Corporate Governance - The executive directors of the company are Mr. Guo Junhui and Mr. Guo Junyu[109] - The non-executive directors include Mr. Guo Maoqun and Ms. Chen Yanhua[109] - The independent non-executive directors are Mr. Kang Shilong, Mr. Zhu Jianming, and Mr. Chen Hanhua[109] Dividends and Shareholding - The board does not recommend the payment of a final dividend for the year ended December 31, 2023[101] - The company has a public shareholding of 44.8% as of December 31, 2023, meeting the requirement to maintain at least 25% public float for its listing[47] - The company has no declared or paid dividends for the years ending December 31, 2022, and December 31, 2023[48]

Financial Performance - For the six months ended June 30, 2023, the company recorded revenue of approximately HKD 195.1 million, a decrease of about 22.1% compared to approximately HKD 250.3 million for the same period in 2022[9][13]. - Gross profit decreased by approximately HKD 8.6 million or 20.5% to about HKD 33.3 million, while the overall gross margin slightly improved from 16.7% to 17.0% due to the activation of more advanced and automated production lines[15]. - Profit for the six months ended June 30, 2023, decreased to approximately HKD 5,400,000 from approximately HKD 12,900,000 for the same period in 2022, mainly due to a reduction in marketing revenue from eyewear products[24]. - Operating profit decreased to HKD 7,722,000, a decline of 41% from HKD 13,114,000 in the previous year[66]. - The group reported a period profit of approximately HKD 5,369,000 for the six months ended June 30, 2023, down from HKD 12,916,000 in the same period of 2022[94]. - The company reported a net loss of HKD 2,253,000 for the six months ended June 30, 2023, compared to a profit of HKD 7,283,000 in the same period of 2022[71]. Cost and Expenses - The cost of sales decreased by approximately HKD 46.7 million or 22.4% to about HKD 161.8 million for the six months ended June 30, 2023, consistent with the decline in sales volume[14]. - Other income decreased to approximately HKD 3.6 million, down by about HKD 500,000, primarily due to a reduction in product service fees[17]. - Selling and distribution expenses slightly increased by about HKD 100,000 or 2.7% to approximately HKD 7.3 million, attributed to higher travel costs from various exhibitions despite the decline in sales[19]. - Administrative and other operating expenses decreased by approximately HKD 1.6 million or 5.3% to about HKD 28.2 million, mainly due to more effective cost control measures[20]. - The group's financing costs increased from approximately HKD 300,000 for the six months ended June 30, 2022, to approximately HKD 1,100,000 for the six months ended June 30, 2023, mainly due to increased use of trade receivables factoring[21]. Assets and Liabilities - As of June 30, 2023, the group's total assets were approximately HKD 254,200,000, with a net asset value of approximately HKD 184,300,000, and the debt-to-equity ratio increased to approximately 8.7% from about 1.1% at the end of 2022[25]. - The group's cash and bank balances increased to approximately HKD 51,500,000 as of June 30, 2023, from approximately HKD 46,400,000 at the end of 2022, primarily due to net cash generated from operating activities[26]. - The group had lease liabilities of approximately HKD 16,000,000 as of June 30, 2023, with a breakdown of liabilities due within one year at HKD 2,323,000, and those due in more than two years but less than five years at HKD 10,795,000[30]. - The current ratio as of June 30, 2023, was approximately 3.7 times, an increase of about 8.8% from approximately 3.4 times at the end of 2022[25]. - The quick ratio as of June 30, 2023, was approximately 2.5 times, an increase of about 8.7% from approximately 2.3 times at the end of 2022[25]. Shareholder Information - As of June 30, 2023, the company had a total issued share capital of 500,000,000 shares[55]. - Major shareholders, including Mr. Guo Junhui and Mr. Guo Junyu, hold 275,952,000 shares each, representing approximately 55.19% of the company's equity[54]. - The company did not declare an interim dividend for the six months ended June 30, 2023[59]. - The company has confirmed that there are no other directors or senior executives with disclosable interests in the company's shares or related securities as of June 30, 2023[52]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and has complied with all applicable provisions as of June 30, 2023[47]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests and enhance corporate value[47]. - The company aims to enhance transparency and accountability in its business strategies and policies[47]. - The company has recognized the importance of corporate governance in its operational framework to ensure shareholder protection[47]. Market Outlook - The company maintains a relatively conservative outlook on the global economic prospects, particularly in the Eurozone, and will continue to adjust marketing strategies accordingly[12]. - The global eyewear market is projected to grow at a compound annual growth rate of approximately 6.9% from 2023 to 2028, reaching a value of USD 222.1 billion by 2028[12]. - The company aims to diversify its business and revenue sources while continuing to develop and optimize its core eyewear business[12].

香港交易及結算所有限公司以及香港聯合交易所有限公司（「聯交所」）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，並明確表示不會就因本公告全部或任何部分 內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 KELFRED HOLDINGS LIMITED 恒發光學控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1134） 截至二零二三年六月三十日止六個月的 中期業績公告 恒發光學控股有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司及其附 屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月的未經審核簡明 綜合財務業績。本公告列載本公司截至二零二三年六月三十日止六個月的中 期報告（「中期報告」）全文，符合聯交所證券上市規則中有關未經審核中期業績 初步公告附載資料的相關要求。中期報告的印刷版本將於適當時候寄發予本 公司的股東，並於網站www.hkexnews.hk 及本公司的網站www.kelfred.com.hk 上 可供查閱。 承董事會命 恒發光學控股有限公司 主席兼執行董事 郭君暉 香港，二零二三年八月廿九日 ...

Financial Performance - The company reported a net profit attributable to shareholders of approximately HKD 9.2 million for the year ended December 31, 2022, compared to a loss of HKD 2.1 million in the previous year, marking a significant turnaround [7]. - Revenue from eyewear products reached approximately HKD 465.4 million, an increase of about 7.1% compared to HKD 434.7 million for the year ended December 31, 2021 [12]. - The company reported a gross profit of HKD 76.0 million for the year ended December 31, 2022, compared to HKD 68.4 million in the previous year [10]. - The company’s operating profit for the year ended December 31, 2022, was HKD 11.4 million, a recovery from an operating loss of HKD 1.1 million in the previous year [10]. - The company's revenue for the year ended December 31, 2022, increased by approximately HKD 30.7 million or 7.1% to approximately HKD 465.4 million, primarily due to recovery from the adverse effects of the COVID-19 pandemic [18]. - The gross profit rose by approximately HKD 7.6 million or 11.1% to approximately HKD 76 million, with an overall gross margin increase from 15.7% to 16.3% [20]. - The net profit for the year ended December 31, 2022, was approximately HKD 9.2 million, a significant improvement compared to a loss of approximately HKD 2.1 million for the previous year [29]. Assets and Liabilities - Total assets as of December 31, 2022, were approximately HKD 251.9 million, while total liabilities were HKD 65.3 million, resulting in a net asset position of HKD 186.6 million [11]. - The company's total assets as of December 31, 2022, were approximately HKD 251.9 million, a decrease from HKD 268.1 million in the previous year [32]. - The debt-to-equity ratio improved to approximately 1.1% from 2.1% in the previous year, representing a decrease of about 47.6% [32]. - The current ratio increased to approximately 3.4 times, up by about 17.2% from 2.9 times at the end of the previous year [32]. Operational Developments - The company relocated its Shenzhen factory to a new facility with higher production capacity in February 2023, enhancing operational resilience and preparing for future growth [7]. - The company aims to seek new business opportunities for better diversification and to ensure stable and effective business development in 2023 [7]. - The company is focusing on enhancing competitiveness by relocating its Shenzhen factory to a new facility with higher production capacity [17]. Expenses and Income - Other income increased to approximately HKD 9.3 million, up from HKD 8.5 million, mainly due to increased sample and module income [21]. - Sales and distribution expenses decreased by approximately HKD 800,000 or 6.2% to approximately HKD 14.6 million, attributed to the easing of COVID-19 conditions [25]. - Administrative and other operating expenses increased by approximately HKD 2.7 million or 4.4% to approximately HKD 63.6 million, primarily due to an increase in employee costs [26]. - Total employee benefit expenses, including director remuneration, were approximately HKD 128,300,000 for the year ended December 31, 2022, compared to HKD 111,500,000 for the previous year [48]. Corporate Governance - The company has adopted the corporate governance code as per the Listing Rules, ensuring compliance with all applicable provisions for the year ended December 31, 2022 [80]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value [80]. - The board consists of two executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2022 [87]. - The independent non-executive directors include Mr. Chen Hanhua, Mr. Zhu Jianming, and Mr. Kang Shilong, bringing diverse expertise to the board [87]. - The company has a strong commitment to ethical standards and regularly reviews its corporate governance practices to meet stakeholder expectations [79]. - The board is responsible for overseeing the company's business strategies and performance, ensuring decisions are made in the best interest of the company [83]. Shareholding and Equity - As of December 31, 2022, the company has a total of 500,000,000 shares issued [171]. - Mr. Guo Junhui and Mr. Guo Junyu each hold 275,952,000 shares, representing 55.19% of the company's equity [171]. - The major shareholder, Dingfeng Holdings, holds 275,952,000 shares, equivalent to 55.19% of the company's equity [177]. - The shareholding structure indicates that Mr. Guo Junhui and Mr. Guo Junyu are considered to have interests in Dingfeng due to their respective 49% holdings [171]. Stock Option Plan - The company has adopted a share option scheme as a reward for directors and eligible employees [179]. - The maximum number of shares that can be issued under the stock option plan is capped at 50,000,000 shares, representing 10% of the shares issued at the time of listing [190]. - The subscription price for shares under the stock option plan will not be less than the higher of the closing price on the grant date or the average closing price over the five trading days preceding the grant date [188]. - The plan allows for the issuance of options to various eligible participants, including employees, non-executive directors, and suppliers [185]. - The total value of stock options granted cannot exceed HKD 5,000,000 based on the closing price on the grant date [199]. - No performance targets need to be met by the grantee before the stock options can be exercised, except as determined by the board [200].

香港交易及結算所有限公司以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，並明確表示不會就因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 KELFRED HOLDINGS LIMITED 恒發光學控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1134） 截至二零二二年十二月三十一日止年度的全年業績公告 恒發光學控股有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司及其附 屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度的經審核綜合 財務業績，連同截至二零二一年十二月三十一日止年度的比較數字。 ...

Financial Performance - For the six months ended June 30, 2022, the company recorded revenue of approximately HKD 250,300,000, an increase of about 33.8% compared to HKD 187,100,000 for the same period in 2021[6][11] - Gross profit rose by approximately HKD 10,900,000 or 35.0% to about HKD 41,800,000, with a stable gross profit margin of 16.7% for the six months ended June 30, 2022[13] - The group recorded a profit of approximately HKD 12,900,000 for the six months ended June 30, 2022, reversing a loss of about HKD 2,800,000 for the same period in 2021, primarily due to improved sales performance of eyewear products[22] - The net profit attributable to the company's owners was HKD 12,916 thousand, a significant recovery from a loss of HKD 2,776 thousand in the same period last year[91] - The total comprehensive income for the period was HKD 7,283 thousand, compared to a total comprehensive loss of HKD 1,696 thousand in the same period last year[94] - The group reported a profit of approximately HKD 12,916,000 for the six months ended June 30, 2022, compared to a loss of HKD 2,776,000 for the same period in 2021, marking a significant turnaround[175] Cost and Expenses - The cost of sales increased by approximately HKD 52,300,000 or 33.5% to about HKD 208,500,000 for the six months ended June 30, 2022, consistent with the increase in sales volume[12] - Sales and distribution expenses increased by approximately HKD 1,000,000 or 15.7% to about HKD 7,200,000 for the six months ended June 30, 2022, compared to approximately HKD 6,200,000 for the same period in 2021[17] - Administrative and other operating expenses slightly increased by about HKD 300,000 or 1.0% to approximately HKD 29,800,000 for the six months ended June 30, 2022, from about HKD 29,500,000 for the same period in 2021, mainly due to an increase in employee costs[18] - The cost of goods sold for the period was HKD 208,476,000, an increase of 33.5% from HKD 156,132,000 in the previous year[171] Assets and Liabilities - Total assets as of June 30, 2022, were approximately HKD 271,500,000, an increase from HKD 268,100,000 as of December 31, 2021, while net assets rose to about HKD 193,600,000 from HKD 186,300,000[23] - The debt-to-equity ratio decreased to approximately 1.8% as of June 30, 2022, down from about 2.2% as of December 31, 2021, representing a decline of approximately 18.2%[23] - The current ratio increased to approximately 3.1 times as of June 30, 2022, compared to about 2.9 times at the end of 2021, reflecting an increase of approximately 6.9%[23] - Trade receivables increased to HKD 119,455,000 as of June 30, 2022, up from HKD 102,384,000 at the end of 2021, reflecting a growth of 16.7%[181] - Trade payables increased to HKD 54,214,000 as of June 30, 2022, compared to HKD 52,665,000 at the end of 2021, indicating a rise of 2.9%[186] Cash Flow - Cash and bank balances totaled approximately HKD 28,000,000 as of June 30, 2022, a decrease of about HKD 8,900,000 from approximately HKD 36,900,000 as of December 31, 2021, mainly due to purchases of property and equipment[24] - The net cash used in operating activities was HKD 3,373 thousand for the six months ended June 30, 2022, compared to a net cash inflow of HKD 346 thousand in the same period of 2021[147] - The company’s cash and cash equivalents decreased to HKD 27,989 thousand at the end of June 30, 2022, down from HKD 36,930 thousand at the beginning of the period[150] Employee and Governance - As of June 30, 2022, the total employee benefits expenditure (including director remuneration) was approximately HKD 61.9 million, compared to HKD 46.6 million for the same period in 2021, representing a year-on-year increase of 32.5%[42] - The group had a total of 1,075 employees as of June 30, 2022, with 1,057 located in China and 18 in Hong Kong[42] - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions during the six months ended June 30, 2022[56] Market and Business Strategy - The eyewear industry is expected to grow at a compound annual growth rate of approximately 7.0% from 2022 to 2027, with the global eyewear market projected to reach USD 290,500,000,000 by 2027[10] - The company is committed to developing and optimizing its core eyewear business while exploring new business opportunities for revenue diversification[10] - The company has built a broad network with well-known and reliable clients worldwide, exporting quality eyewear products to over 35 countries, with Europe being the largest market[6] Shareholder Information - The company has a total issued share capital of 500,000,000 shares as of June 30, 2022[74] - Major shareholder "顶锋" holds 275,952,000 shares, representing approximately 55.19% of the company's equity[69] - The ownership structure includes 49% held by 郭君暉 and 郭君宇, and 2% held by 郭太太[64] - The group had no declared or paid dividends for the six months ended June 30, 2022, consistent with the previous year[172] Investments and Acquisitions - The company has decided to postpone the construction of a new building at the Jiangxi production base to expand production capacity due to the challenging economic environment and ongoing COVID-19 developments[54] - The group did not engage in any major acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2022[44] - The company sold 70% of its stake in Dongyu Technology Group for approximately HKD 1,000 million[200] - The sale of Dongyu Technology Group was completed on April 8, 2022[200] Taxation - The group recorded a tax credit of approximately HKD 100,000 for the six months ended June 30, 2022, compared to a tax expense of HKD 600,000 for the same period in 2021, mainly due to tax refunds from prior years[20] - The effective tax rate for the group’s Chinese subsidiary was reduced to 20% due to small and micro enterprise status, compared to the standard rate of 25%[169]

Financial Performance - The company reported a net loss of HKD 2.1 million for the year ended December 31, 2021, an improvement from a net loss of HKD 13.5 million in 2020[8]. - For the year ended December 31, 2021, the group recorded revenue of approximately HKD 434.7 million, an increase of about 22.7% compared to approximately HKD 354.2 million for the year ended December 31, 2020[19]. - The cost of sales increased by approximately HKD 72.2 million or 24.6% to approximately HKD 366.3 million for the year ended December 31, 2021, primarily due to the increase in revenue[20]. - Gross profit rose by approximately HKD 8.3 million or 13.8% to approximately HKD 68.4 million, with a slight decrease in overall gross margin from about 17.0% to 15.7% due to rising production costs[21]. - Other income increased by approximately HKD 1.9 million to about HKD 8.5 million, mainly from sales of scrap and rework services, as well as government subsidies[22]. - The company recorded a net loss of approximately HKD 2,100,000 for the year ended December 31, 2021, a significant decrease of approximately HKD 13,500,000 compared to the previous year, primarily due to improved export sales and revenue recovery from the COVID-19 pandemic[30]. - Trade receivables impairment loss was approximately HKD 200,000 for the year ended December 31, 2021, compared to approximately HKD 1,700,000 for the previous year, reflecting a decrease in expected credit losses[24]. - The company's financing costs decreased by approximately HKD 100,000 or 18.4% to approximately HKD 500,000 for the year ended December 31, 2021, mainly due to the repayment of bank loans[28]. - Administrative and other operating expenses increased by approximately HKD 6,100,000 or 11.2% to approximately HKD 60,900,000, primarily due to an increase in employee costs[27]. - The company's current ratio improved to approximately 2.9 times as of December 31, 2021, compared to approximately 2.5 times at the end of the previous year, indicating better liquidity[31]. - The company had cash and bank balances of approximately HKD 36,900,000 as of December 31, 2021, a decrease of approximately HKD 39,500,000 from HKD 76,400,000 in the previous year, mainly due to year-end procurement and loan repayments[34]. - The company's debt-to-equity ratio improved to approximately 2.1% as of December 31, 2021, down from approximately 7.3% at the end of the previous year, indicating a stronger financial position[31]. - The company's distributable reserves as of December 31, 2021, were approximately HKD 80.2 million, a decrease from HKD 82.5 million in 2020[157]. Market Conditions and Business Strategy - The company has decided to pause the capacity expansion of its production facility in Jiangxi due to market uncertainties and the ongoing impact of COVID-19[9]. - The company remains cautiously optimistic about short-term business development prospects and aims for stable and effective growth in 2022[9]. - Consumer spending in Europe showed signs of recovery in 2021, contributing to the company's improved performance[8]. - The European economy experienced a rebound in the second half of 2021 after initial impacts from COVID-19[8]. - The European market showed signs of recovery, with consumer spending rebounding to 70%-85% of pre-pandemic levels towards the end of 2021[15]. - The global eyewear market value reached USD 140 billion in 2021, reflecting a year-on-year growth of 9.5%[15]. - The group aims to diversify its business and revenue sources to mitigate potential risks and uncertainties in the future[16]. - The company plans to seek new business opportunities to achieve better diversification[9]. - The group plans to enhance supply chain flexibility and automation to adapt to changing market conditions[16]. - The company continues to explore potential opportunities beyond its core eyewear business to ensure sustainable growth[16]. Corporate Governance - The company has adopted the corporate governance code as per the Listing Rules, ensuring compliance with all applicable provisions for the year ended December 31, 2021[84]. - The board consists of three executive directors, three non-executive directors, and three independent non-executive directors, reflecting a balanced composition for effective leadership[90]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[84]. - The independent non-executive directors have extensive experience in accounting, corporate governance, and financial analysis, contributing to the board's effectiveness[79]. - The company has a dedicated audit committee, remuneration committee, nomination committee, and risk management committee to oversee various aspects of governance[81]. - The board regularly reviews the contributions of directors to ensure they are fulfilling their responsibilities effectively[87]. - The company has confirmed compliance with the securities trading standards code as of December 31, 2021[85]. - The roles of the Chairman and CEO have been clearly distinguished according to corporate governance guidelines[93]. - The board held one annual general meeting and six board meetings during the year ended December 31, 2021, with all executive directors attending all meetings[96]. - The board complied with listing rules by having at least three independent non-executive directors, with one possessing appropriate accounting or financial management expertise[97]. - All directors participated in training courses and seminars related to their duties, ensuring compliance with corporate governance standards[107]. - The audit committee consists of three independent non-executive directors, responsible for reviewing financial reporting processes and risk management systems[110]. - The Audit Committee held three meetings during the year ended December 31, 2021, reviewing interim and annual financial statements, and recommended the reappointment of auditors to the Board[112]. - The Remuneration Committee conducted two meetings, reviewing the remuneration policies for directors and senior management, and assessing the performance of executive directors[114]. - The Nomination Committee held one meeting, evaluating the structure and composition of the Board and recommending the reappointment of directors[121]. - The Risk Management Committee held one meeting, reviewing the risk management system and assessing sanctions-related risks faced by the Group[122]. - The Group engaged an independent internal control consultant to review the effectiveness of its internal control systems, covering financial, operational, and compliance matters[123]. - The Group confirmed that there are no significant uncertainties regarding its ability to continue as a going concern[127]. Shareholder Information - The company has a significant ownership stake of 59.19% held by Top Peak Holdings Limited[61]. - The major shareholders include Mr. Guo Junhui, Mr. Guo Junyu, and Mrs. Guo, each holding 275,952,000 shares, which equates to 55.19% ownership[181][182]. - The company has not granted any rights to directors or their spouses to purchase shares or debt securities since its listing date up to December 31, 2021[179]. - The company has adopted a share option scheme to incentivize directors and eligible employees, although no options have been granted or exercised as of December 31, 2021[187]. - The shareholding structure indicates that Mr. Guo Junhui and Mr. Guo Junyu each own 49% of the controlling entity, Top Peak Holdings Limited, which holds the shares[182]. - The company has established a remuneration committee to review its remuneration policy based on operational performance and market standards[184]. - There are no disclosed interests or short positions in shares or related securities by any directors or senior management as of December 31, 2021[178]. - The company has not made any arrangements that would allow directors to profit from purchasing shares or debt securities during the reporting period[179]. - The share option plan was conditionally adopted on June 22, 2019, to reward contributions from eligible participants[187]. - The company has confirmed that there are no options granted or exercised under the share option plan as of the report date[187]. - The stock option plan aims to reward and encourage eligible participants for their contributions to the group[190]. - Eligible participants include employees, non-executive directors, suppliers, customers, and individuals providing R&D support[192]. - The subscription price for shares under the stock option plan will be determined by the board and cannot be lower than the higher of the closing price on the grant date or the average closing price over the previous five trading days[195]. - The total number of shares that can be granted under the stock option plan is capped at 10% of the issued shares at the time of listing[197]. - As of the date of the report, the number of shares available for issuance is 50,000,000, representing 10% of the issued shares at the time of listing and the report date[200]. Employee and Operational Information - The total employee benefit expenses, including directors' remuneration, were approximately HKD 111,500,000 for the year ended December 31, 2021, compared to HKD 84,700,000 for the previous year[49]. - The group employed a total of 1,035 employees as of December 31, 2021, with 1,016 in China and 19 in Hong Kong[49]. - The company has been involved in the production of lithium iron phosphate battery cells and battery packs through its subsidiary Henan Lixuan Technology Co., Ltd.[64]. - The management team is actively involved in formulating corporate and business strategies to enhance market presence[66]. - The company is exploring market expansion opportunities and potential mergers and acquisitions to drive growth[66]. - The company has a strategic focus on developing new products and technologies in the eyewear sector[66].

Financial Performance - For the six months ended June 30, 2021, the company recorded revenue of approximately HKD 187.1 million, an increase of about 39.5% compared to approximately HKD 134.1 million for the same period in 2020[9]. - Gross profit increased by approximately HKD 7.2 million or 29.9% to about HKD 31 million for the six months ended June 30, 2021, compared to approximately HKD 23.8 million for the same period in 2020[17]. - The group recorded a loss for the period of approximately HKD 2,800,000 for the six months ended June 30, 2021, down from approximately HKD 8,400,000 for the same period in 2020, mainly due to improved sales performance[25]. - The net loss for the six months ended June 30, 2021, was HKD 2,776 thousand, a significant improvement from a net loss of HKD 8,376 thousand in the prior year, indicating a reduction in losses by 66.8%[76]. - The total comprehensive loss for the period was HKD 1,696 thousand, compared to HKD 10,140 thousand in the same period last year, reflecting a 83.3% decrease[78]. Cost and Expenses - The sales cost increased by approximately HKD 45.8 million or 41.6% to about HKD 156.1 million for the six months ended June 30, 2021, compared to approximately HKD 110.3 million for the same period in 2020[16]. - Selling and distribution expenses slightly increased by approximately HKD 100,000 or 1.0%, from approximately HKD 6,100,000 for the six months ended June 30, 2020, to approximately HKD 6,200,000 for the same period in 2021[20]. - Administrative and other operating expenses rose by approximately HKD 2,100,000 or 7.7%, from approximately HKD 27,400,000 for the six months ended June 30, 2020, to approximately HKD 29,500,000 for the same period in 2021[22]. - The total employee benefit expenses for the six months ended June 30, 2021, amounted to approximately HKD 46,600,000, compared to HKD 41,600,000 for the same period in 2020, representing an increase of about 12%[46]. Assets and Liabilities - As of June 30, 2021, the group's total assets were approximately HKD 254,700,000, down from approximately HKD 287,200,000 as of December 31, 2020, with a debt-to-equity ratio of approximately 2.2%, a decrease of about 69.9%[27]. - The group had cash and bank deposits totaling approximately HKD 65,600,000 as of June 30, 2021, down from approximately HKD 76,400,000 as of December 31, 2020, primarily due to loan repayments and operational uses[28]. - Current assets amounted to HKD 217,464 thousand as of June 30, 2021, down from HKD 245,123 thousand at the end of 2020, indicating a decrease of 11.3%[80]. - Trade receivables as of June 30, 2021, were HKD 70,079,000, down from HKD 96,330,000 at the end of 2020, showing a 27.2% decrease[120]. - The group’s trade payables decreased to HKD 47,660,000 as of June 30, 2021, from HKD 66,665,000 at the end of 2020, a reduction of 28.5%[124]. Market and Business Outlook - The global eyewear market is expected to grow at a compound annual growth rate of 8% from 2021 to 2026, reaching a value of USD 219.4 billion by 2026[10]. - The company anticipates moderate growth in the eyewear industry over the next five years, despite uncertainties related to the ongoing COVID-19 pandemic[12]. - The company has seen a rebound in sales backlog since early 2021 due to increasing demand for eyewear products as the global economy recovers[10]. Corporate Governance and Shareholder Information - The group has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions during the six months ended June 30, 2021[55]. - As of June 30, 2021, the company has a total of 275,952,000 shares held by major shareholders, representing approximately 55.19% of the company's equity[64]. - The major shareholders include Mr. Guo Junhui, Mr. Guo Junyu, and Mrs. Chen Yanhua, each holding a controlled corporation interest of 275,952,000 shares[64]. - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2021[70]. Risks and Challenges - The group faces various risks including foreign currency risk, operational risk, and market risk, which could impact its financial performance and growth prospects[35][36][40]. - The group has temporarily suspended plans to construct a new building at its Jiangxi production base to expand capacity due to the challenging economic environment and the ongoing global COVID-19 situation[53]. Cash Flow and Financing Activities - Net cash generated from operating activities for the six months ended June 30, 2021, was HKD 346,000, a decrease of 83.4% compared to HKD 2,084,000 in 2020[88]. - Net cash used in investing activities for the same period was HKD 7,199,000, slightly improved from HKD 7,556,000 in 2020[88]. - Net cash used in financing activities was HKD 9,722,000, a decrease from HKD 13,160,000 in 2020[88]. Inventory and Capital Commitments - The inventory balance as of June 30, 2021, was HKD 68,816,000, compared to HKD 59,732,000 at the end of 2020, representing a 15.3% increase[118]. - The group had capital commitments related to properties, plants, and equipment amounting to approximately HKD 2,200,000 and HKD 8,400,000, respectively, as of June 30, 2021[42].