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].

Financial Performance - The company reported a net loss of approximately HKD 13.5 million for the year ended December 31, 2020, compared to a net profit of HKD 9.1 million for the year ended December 31, 2019, representing a decline of about 247%[6]. - Revenue decreased by approximately 14.3% year-on-year due to the impact of the COVID-19 pandemic, leading to delays or cancellations of sales orders and reduced demand from overseas customers[6]. - For the year ended December 31, 2020, the company's revenue decreased by approximately HKD 59.2 million or 14.3% to about HKD 354.2 million compared to HKD 413.4 million for the year ended December 31, 2019[19]. - Gross profit decreased by approximately HKD 36.2 million or 37.6% to about HKD 60.1 million for the year ended December 31, 2020, resulting in a gross margin drop from approximately 23.3% to 17.0%[23]. - The group recorded a net other loss of approximately HKD 7,400,000 for the year ended December 31, 2020, compared to a net other income of approximately HKD 3,700,000 for the year ended December 31, 2019, primarily due to exchange rate fluctuations[25]. - The group recognized an impairment loss of approximately HKD 1,700,000 for trade receivables for the year ended December 31, 2020, based on expected credit losses, considering past losses and the impact of COVID-19[26]. - The group reported a loss of approximately HKD 13,500,000 for the year ended December 31, 2020, compared to a profit of approximately HKD 9,100,000 for the year ended December 31, 2019, primarily due to decreased export sales and profit margin declines caused by COVID-19[32]. - The company reported no significant contingent liabilities as of December 31, 2020[48]. Cost Management - Cost control measures were implemented to reduce operating costs during the pandemic, and short-term subsidies were received from the governments of China and Hong Kong to retain local employees[6]. - Selling and distribution expenses decreased by approximately HKD 6,900,000 or 32.4% to approximately HKD 14,400,000 for the year ended December 31, 2020, mainly due to reduced demand for prototypes and samples caused by COVID-19[27]. - Administrative and other operating expenses decreased by approximately HKD 11,300,000 or 17.1% to approximately HKD 54,800,000 for the year ended December 31, 2020, due to cost control measures and the absence of non-recurring listing expenses[28]. - Net financing costs decreased significantly by approximately HKD 1,300,000 or 68.4% to approximately HKD 600,000 for the year ended December 31, 2020, primarily due to the gradual repayment of bank loans[30]. - Income tax expenses decreased from approximately HKD 4,600,000 for the year ended December 31, 2019, to approximately HKD 1,300,000 for the year ended December 31, 2020, mainly due to the group's business losses[31]. Business Development and Strategy - The company intends to conduct due diligence on target companies in the new energy vehicle sector to explore further business opportunities[8]. - The company will continue to focus on its core eyewear business while seeking new opportunities for business and revenue diversification[8]. - The company anticipates a gradual recovery in the eyewear industry, projecting moderate growth over the next five years[18]. - The company plans to diversify its business and revenue sources by exploring new opportunities, such as entering the new energy vehicle sector[18]. - The company established a showroom and design laboratory in Hong Kong in May 2020, along with a new internal design team to enhance customer relationships and exchange information on market preferences[7]. - A strategic cooperation agreement was signed to establish a joint venture in Jiangxi, China, focusing on the new energy vehicle business, with the joint venture partners having extensive experience in the industry[8]. - The joint venture was officially established in March 2021, although the company has not yet injected capital into it[8]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[80]. - The board of directors consists of two executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2020[84]. - The company has adopted the corporate governance code as per the listing rules, ensuring adherence to all applicable provisions[80]. - The independent non-executive directors meet the requirement of having at least three independent members on the board[93]. - The company has established four committees: audit, remuneration, nomination, and risk management, with clear written terms of reference[103]. - The board retains decision-making authority on significant matters, including policies, strategies, budgets, and major transactions[96]. - The company emphasizes the importance of ethical standards and effective leadership within its governance framework[79]. - The board of directors is collectively responsible for guiding and overseeing the company's affairs, ensuring effective internal controls and risk management systems[96]. Shareholder Information - The company has a significant shareholding structure, with major shareholders holding 343,952,000 shares, representing 68.79% of the total shares[167]. - The board did not recommend the payment of a final dividend for the year ended December 31, 2020, while a dividend of HKD 0.02 per share for the previous year was approved, totaling approximately HKD 10 million[143]. - The company has not made any arrangements for shareholders to waive or agree to waive any dividends[144]. - The company has maintained effective communication with shareholders, particularly through annual general meetings and other shareholder meetings[134]. Risk Management - The company confirmed that there are no significant uncertainties regarding its ability to continue as a going concern[118]. - The company has adopted a dividend policy effective March 23, 2020, with the distribution ratio determined by the Board based on various factors[120]. - The company does not have an internal audit function and will engage external personnel to review its risk management and internal control systems annually[116]. - The Risk Management Committee held one meeting during the year to review the risk management system and assess potential sanction-related risks[115]. - The company appointed an independent internal control consultant to review the effectiveness of its internal control systems, covering financial, operational, and compliance matters[116]. Employee Relations - The company emphasized the importance of maintaining good relationships with employees and provided formal and on-the-job training to enhance their skills and knowledge[49]. - As of December 31, 2020, the company had a total employee benefit expenditure of approximately HKD 84.7 million, down from HKD 111 million in 2019, reflecting a decrease of about 23.8%[49]. Leadership and Experience - The company has over 21 years of experience in eyewear product trade, manufacturing, and design, with a focus on overall business development strategy and major business decisions[61]. - The CEO has over 19 years of experience in the same industry, responsible for significant operational decisions and business management oversight[62]. - The company is led by a board that includes members with extensive experience in accounting, corporate finance, and management, totaling over 40 years in the field[68]. - The management team has a strong educational background, with degrees in accounting and business management from reputable institutions[68]. - The company is positioned for future growth, leveraging the extensive experience of its leadership team in the eyewear market[62].

Financial Performance - For the six months ended June 30, 2020, the company recorded revenue of approximately HKD 134,100,000, a significant decrease of 31.8% compared to approximately HKD 196,500,000 for the same period in 2019[25]. - The company's gross profit decreased by approximately HKD 22,300,000 or 48.4%, from approximately HKD 46,100,000 for the six months ended June 30, 2019, to approximately HKD 23,800,000 for the same period in 2020[27]. - The overall gross profit margin declined from approximately 23.5% for the six months ended June 30, 2019, to approximately 17.8% for the same period in 2020, primarily due to production inefficiencies caused by the COVID-19 pandemic[27]. - The company incurred a loss of approximately HKD 8,400,000 for the six months ended June 30, 2020, compared to a profit of approximately HKD 6,200,000 for the same period in 2019, primarily due to decreased demand for eyewear products amid the COVID-19 pandemic[37]. - The net loss for the period was HKD 8,376 thousand, compared to a profit of HKD 6,161 thousand in 2019, representing a significant decline[96]. - Total comprehensive loss for the period amounted to HKD 10,140 thousand, compared to a total comprehensive income of HKD 6,200 thousand in 2019[96]. - Cash generated from operating activities was HKD 2,084 thousand, a decrease of 85.8% from HKD 14,677 thousand in the previous year[105]. - The company reported a basic and diluted loss per share of HKD 1.65, compared to earnings of HKD 1.16 per share in 2019[93]. Cost Management - The sales cost decreased by approximately HKD 40,100,000 or 26.7%, from approximately HKD 150,400,000 for the six months ended June 30, 2019, to approximately HKD 110,300,000 for the same period in 2020[26]. - Sales and distribution expenses decreased by approximately HKD 2,900,000 or 32.2% from approximately HKD 9,000,000 for the six months ended June 30, 2019, to approximately HKD 6,100,000 for the same period in 2020, mainly due to reduced sampling expenses following decreased demand for prototypes and samples due to COVID-19[32]. - Administrative and other operating expenses decreased by approximately HKD 3,100,000 or 10.2% from approximately HKD 30,500,000 for the six months ended June 30, 2019, to approximately HKD 27,400,000 for the same period in 2020[33]. - Net finance costs significantly decreased by approximately HKD 900,000 or 75.0% from approximately HKD 1,200,000 for the six months ended June 30, 2019, to approximately HKD 300,000 for the same period in 2020, mainly due to repayment of bank loans[34]. - Income tax expenses decreased significantly from approximately HKD 3,000,000 for the six months ended June 30, 2019, to approximately HKD 400,000 for the same period in 2020, consistent with the decline in the company's financial performance[35]. Business Strategy and Market Position - The company plans to enhance its market position and increase market share by improving production automation, expanding its customer base in the US and Asia, and strengthening design and development capabilities[19]. - The company intends to develop new businesses in camellia oil and skincare products, although progress has been hindered by global lockdowns and travel restrictions[22]. - As of May 2020, some order amounts from customers have gradually recovered, indicating potential for business recovery in the second half of the year[23]. - The company has established a strong customer base across over 35 countries, primarily serving international eyewear retailers and trade companies[18]. - The company aims to continue leveraging its competitive advantages to focus on business strategies and enhance quality control capabilities[19]. Assets and Liabilities - Total assets as of June 30, 2020, were approximately HKD 269,800,000, down from HKD 310,300,000 as of December 31, 2019[38]. - Cash and cash equivalents, including pledged bank deposits, totaled approximately HKD 69,300,000 as of June 30, 2020, a decrease of approximately HKD 19,400,000 from approximately HKD 88,700,000 as of December 31, 2019[39]. - The company's debt as of June 30, 2020, included bank loans and lease liabilities of approximately HKD 15,300,000 and HKD 6,000,000, respectively[43]. - Current assets decreased to HKD 229,066 thousand from HKD 265,511 thousand as of December 31, 2019, reflecting a decline of 13.7%[98]. - Non-current assets decreased to HKD 40,779 thousand from HKD 44,779 thousand, a decline of 9.0%[98]. Shareholder Information - As of June 30, 2020, key executives and directors collectively held 375 million shares, representing approximately 75% of the company's equity[71]. - The major shareholder, Top Peak, holds 375,000,000 shares, representing approximately 75% of the company's equity[80]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2020[86]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2020[85]. - The major shareholders include Mrs. Guo (2%), Mr. Guo Junhui (49%), and Mr. Guo Junyu (49%) in Top Peak[81]. Compliance and Governance - The company maintained compliance with the corporate governance code during the reporting period[67]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2020, confirming compliance with applicable accounting principles and sufficient disclosure[90]. - The company has no known direct or indirect competition interests that could conflict with its business as of June 30, 2020[87]. - The company did not report any significant changes in accounting policies that would impact the interim financial data for the six months ended June 30, 2020[114]. COVID-19 Impact - The company experienced a temporary shutdown of its mainland China factories in February 2020 due to COVID-19, but resumed production in early March 2020[22]. - The company is closely monitoring the impact of the COVID-19 pandemic on its financial performance and operations, noting that the ongoing situation may significantly affect its results[163]. - The company has delayed the timeline for using the remaining proceeds due to challenges posed by the COVID-19 pandemic, including postponement of exhibitions and delays in construction plans[65]. - The board will continue to assess the impact of COVID-19 on the company's operations and financial performance, with potential revisions to plans as necessary[65].

Financial Performance - For the year ended December 31, 2019, the company's revenue decreased by approximately 1.8% to HKD 413,400,000 compared to the previous year[8]. - Revenue for the year ended December 31, 2019, was HKD 413,395,000, a decrease of 1.7% from HKD 421,094,000 in 2018[14]. - The company's revenue for the year ended December 31, 2019, decreased by approximately HKD 7,700,000 or 1.8% to about HKD 413,400,000, primarily due to delays in delivery schedules caused by social unrest in the second half of 2019[32]. - Gross profit for 2019 was HKD 96,289,000, representing a gross margin of 23.3%[14]. - Gross profit decreased by approximately HKD 400,000 or 0.4% to about HKD 96,300,000, with a slight increase in gross margin from 23.0% to 23.3% due to improved average selling prices of sunglasses[34]. - Annual profit decreased by approximately HKD 21,900,000 or 70.6% to about HKD 9,100,000, attributed to revenue decline, increased non-recurring listing expenses, and higher sampling costs[43]. Impact of COVID-19 - The COVID-19 pandemic significantly impacted operations, with production bases in China temporarily closed in early February 2020, affecting supply chains[9]. - The COVID-19 pandemic has significantly impacted production capacity and supply chains, leading to challenges in business operations[24]. - The company is unable to predict the extent of COVID-19's impact on the eyewear market and its business development in 2020[25]. - The company plans to enhance cost control measures and continue providing quality eyewear products to mitigate potential negative financial impacts from COVID-19[9]. Business Strategy and Expansion - The company is exploring new business opportunities in the camellia oil and skincare industry, with plans to act as a sales agent for products from Huaihua Qinxiang Oil Industry Co., Ltd. in China[12]. - The company aims to diversify its revenue sources to reduce reliance on European markets, which may face uncertainty due to the pandemic[12]. - The existing eyewear manufacturing and sales business will remain the core focus of the company while pursuing new business ventures[13]. - The company aims to expand its customer base and brand presence in the US and Asian markets[21]. - The company is focused on expanding its market presence and enhancing its product offerings through new product development and technology[70]. Management and Governance - The company is led by Mr. Guo Junyu, who has over 18 years of experience in the eyewear product trade, manufacturing, and design[69]. - The company has a strong management team with members holding significant experience in accounting, corporate finance, and management, including Mr. Chen Hanhua and Mr. Li Weiming[73][78]. - The management team emphasizes the importance of strategic planning and risk management in driving the company's growth[74][78]. - The company has established a robust governance structure with various committees, including audit, remuneration, and risk management committees, to oversee its operations[76][79]. - The board consists of two executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2019[89]. Financial Position - Total assets increased to HKD 310,290,000 in 2019, up from HKD 215,282,000 in 2018[17]. - Total liabilities decreased to HKD 101,981,000 in 2019, down from HKD 117,918,000 in 2018[17]. - The current ratio improved to 2.7 times from 1.5 times at the end of 2018, reflecting better liquidity management[45]. - Cash and cash equivalents increased by approximately HKD 68,100,000 to about HKD 88,700,000, primarily due to net proceeds from share issuance[46]. - As of December 31, 2019, the group's bank borrowings amounted to approximately HKD 15,800,000 and lease liabilities were about HKD 5,700,000[48]. Shareholder Relations - The company expresses gratitude to shareholders, customers, suppliers, and partners for their support during a challenging year[13]. - The company emphasized the importance of effective communication with shareholders to enhance investor relations and understanding of business performance and strategy[139]. - Shareholders' rights are protected through independent resolutions presented at general meetings, with voting results published post-meeting[133]. - Special general meetings can be convened upon written request from shareholders holding at least 10% of the paid-up capital with voting rights[134]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and transparency in its operations[75]. - The independent non-executive directors meet the independence criteria as per the listing rules[98]. - The company has implemented a comprehensive audit plan for the fiscal year 2019[94]. - The audit committee, consisting of three independent non-executive directors, reviewed and monitored the company's financial reporting procedures and internal control systems[111]. - The company has adopted high standards of corporate governance to enhance stakeholder value and ensure compliance with regulatory requirements[84]. Employee and Compensation - The total employee benefit expenses for the years ended December 31, 2019, and 2018 were approximately HKD 111,000,000 and HKD 96,100,000, respectively, reflecting an increase of about 15.5%[57]. - The company has established a compensation committee that reviews the remuneration of directors annually based on their experience and responsibilities[162]. Share Option Scheme - The company has adopted a share option scheme to incentivize directors and eligible employees, with no options granted as of the report date[183]. - The share option plan aims to encourage participants to perform at their best for the group's benefit and to attract and retain contributors[185]. - The maximum number of shares that can be granted under the share option plan is capped at 10% of the issued shares at the time of listing[193].

中期報告 2019 9 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) 服發代號：1134 恒發光學控股有限公司 • 2019 中期報告 公司資料 2 管理層討論及分析 3 企業管治 11 其他資料 12 簡明綜合損益表 17 簡明綜合損益及其他全面收益表 18 簡明綜合財務狀況表 19 簡明綜合權益變動表 21 簡明綜合現金流量表 22 簡明綜合中期財務資料附註 24 目錄 01 2019 中期報告 • 恒發光學控股有限公司 | --- | --- | |---------------------------------------------------------------------|-------------------------------------------------------------------------------------| | | | | 公司資料 | | | 執行董事 郭君暉先生 郭君宇先生 非執行董事 郭茂群先生 陳燕華女士 | 總部及香港主要營業地點 香港 新界沙田 安平街 6 號 新貿中心 B 座 16 ...