Financial Performance - Revenue for the six months ended June 30, 2024, was HK$36,476,000, a decrease of 48.2% compared to HK$70,326,000 in the same period of 2023[6]. - Gross profit for the period was HK$591,000, down from HK$3,930,000, reflecting a significant decline in profitability[6]. - Loss from operations increased to HK$96,407,000, compared to a loss of HK$31,202,000 in the prior year, indicating a worsening operational performance[6]. - Total comprehensive loss for the period was HK$105,339,000, compared to HK$51,238,000 in the same period last year, representing a 105.5% increase in losses[8]. - Loss per share for the period was HK$4.24, compared to HK$1.86 in the previous year, indicating a significant increase in per-share losses[8]. - Other income and loss, net, was a loss of HK$25,719,000, contrasting with a gain of HK$9,613,000 in the prior year, highlighting a negative shift in financial performance[6]. - The company reported a loss attributable to owners of the Company of HK$83,726,000, compared to HK$27,620,000 in the same period last year, indicating a significant increase in losses attributable to shareholders[8]. - The Group's overall loss for the period was HK$97,962,000, up from HK$33,672,000 in the previous year, reflecting a worsening financial position[26]. Operational Costs - Administrative expenses rose to HK$69,365,000, up from HK$42,455,000, reflecting increased operational costs[6]. - Distribution and selling expenses decreased slightly to HK$1,914,000 from HK$2,290,000, indicating some cost control measures[6]. - Research and development expenses for the six months ended June 30, 2024, amounted to HK$14,736,000, which is a 108.5% increase from HK$7,073,000 in 2023, highlighting increased investment in innovation[32]. - Depreciation of property, plant, and equipment for the period was HK$33,903,000, compared to HK$28,174,000 in 2023, showing a rise in asset depreciation costs[32]. - Interest expenses on borrowings decreased to HK$1,404,000 in 2024 from HK$2,094,000 in 2023, reflecting improved debt management[29]. - Finance costs decreased to approximately HK$1,555,000 from HK$2,470,000 due to partial loan repayment[61]. Assets and Liabilities - As of June 30, 2024, total assets less current liabilities amounted to HK$188,792,000, a decrease of 20.6% from HK$237,904,000 as of December 31, 2023[9]. - Net current liabilities improved to HK$8,065,000 from HK$26,690,000, indicating a significant reduction in short-term financial obligations[9]. - Trade and other payables decreased to HK$275,448,000 as of June 30, 2024, from HK$305,254,000, reflecting better management of liabilities[9]. - The company’s inventories significantly decreased to HK$12,537,000 from HK$40,504,000, indicating improved inventory turnover and management[9]. - Trade receivables decreased from HK$30,239,000 as of December 31, 2023, to HK$25,000,000 as of June 30, 2024, representing a decline of approximately 17%[36]. - Trade payables decreased from HK$77,795,000 to HK$65,816,000, reflecting a decline of approximately 15%[41]. Cash Flow and Financing - The company's net cash used in operating activities for the six months ended June 30, 2024, was HK$37,152,000, compared to HK$2,134,000 for the same period in 2023, reflecting increased operational challenges[13]. - Cash and cash equivalents at the end of the period increased to HK$4,844,000 from HK$1,629,000, showing improved liquidity[13]. - The company reported a net cash generated from financing activities of HK$39,376,000 for the six months ended June 30, 2024, compared to a net cash used of HK$1,912,000 in the same period of 2023, indicating improved financing conditions[13]. - The Group's issued and fully paid shares increased to 2,076,852,283 as of June 30, 2024, following a rights issue that raised approximately HK$59,336,000[48]. - As of June 30, 2024, net proceeds from the Rights Issue were fully utilized for operational costs, including material costs and staff costs[65]. Market Conditions - The Group's revenue from the Lithium Ion Motive Battery Business for the six months ended 30 June 2024 was HK$36,476,000, a decrease from HK$70,326,000 for the same period in 2023, representing a decline of approximately 48%[22]. - The Group's sales dropped by HK$33.9 million in the first half of 2024 due to adverse market conditions[56]. - Sales of new energy vehicles increased by approximately 30% in the first half of 2024, but the general sales price decreased by 5%-10%[55]. - Total output of lithium batteries in China exceeded 282GWh from January to April 2024, representing a year-on-year increase of 17.5%[55]. Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code, except for the deviation where the chairman also serves as the CEO[93]. - The audit committee consists of three independent non-executive directors, ensuring compliance with the Listing Rules[97]. - The company emphasizes the importance of internal controls and has sufficient resources to comply with the Corporate Governance Code[94]. - The company has adopted the Model Code for securities transactions by directors, confirming compliance throughout the reporting period[97]. Shareholder Information - The Group's controlling shareholder is Double Key International Limited, incorporated in the British Virgin Islands[1]. - As of June 30, 2024, Double Key holds 1,357,815,432 shares, representing 65.38% of the total issued share capital of the Company[82]. - Cheng Hung Mui has a corporate interest in Double Key, which also holds 1,357,815,432 shares, equating to 65.38% of the total issued share capital[82]. - The Company has not been notified of any other substantial shareholders with interests of 5% or more in the shares or underlying shares as of June 30, 2024[85].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 36,476,000, a decrease of 48.2% compared to HKD 70,326,000 in the same period of 2023[1] - Gross profit for the same period was HKD 591,000, down 85.0% from HKD 3,930,000 in 2023[1] - Operating loss increased to HKD 96,407,000 from HKD 31,202,000 year-over-year, representing a 208.5% increase[2] - The total comprehensive loss for the period was HKD 105,339,000, compared to HKD 51,238,000 in the previous year, marking a 105.5% increase[2] - Basic and diluted loss per share was HKD 4.24, compared to HKD 1.86 in the same period last year, reflecting a 127.4% increase in loss per share[2] - The group recognized a net loss of HKD 97,962,000 for the six months ended June 30, 2024, compared to a loss of HKD 33,672,000 for the same period in 2023, indicating a worsening financial performance[17] Assets and Liabilities - Current assets decreased to HKD 284,614,000 from HKD 334,436,000, a decline of 14.9%[3] - Total liabilities decreased to HKD 310,083,000 from HKD 361,126,000, a reduction of 14.1%[3] - Net assets decreased to HKD 181,507,000 from HKD 227,521,000, a decline of 20.2%[4] - The group’s total assets for the lithium-ion battery segment amounted to HKD 494,874,000 as of June 30, 2024, down from HKD 594,943,000 as of December 31, 2023[13] - The group’s total liabilities for the lithium-ion battery segment were HKD 235,932,000 as of June 30, 2024, compared to HKD 270,788,000 as of December 31, 2023, showing a decrease in liabilities[13] Business Operations - The company continues to engage in the production and sale of lithium-ion power batteries and related equipment, indicating ongoing investment in the lithium-ion battery business[6] - The group reported external customer revenue of HKD 36,476,000 for the lithium-ion battery business for the six months ended June 30, 2024, compared to HKD 70,326,000 for the same period in 2023, representing a decline of approximately 48%[13] - The group incurred a total segment loss of HKD 89,399,000 for the lithium-ion battery business for the six months ended June 30, 2024, compared to a loss of HKD 25,562,000 for the same period in 2023, indicating a significant increase in losses[13] - The lithium-ion battery business experienced a 17.5% year-on-year increase in total production, reaching over 282 GWh from January to April 2024[34] - The average selling price of lithium-ion batteries decreased by approximately 10% due to oversupply of materials[34] - The group adjusted product prices in response to industry trends, resulting in a sales decline of HKD 33,900,000 in the first half of 2024[34] Research and Development - Research and development expenses, including depreciation and employee costs, increased to HKD 14,736,000 for the six months ended June 30, 2024, from HKD 7,073,000 for the same period in 2023, reflecting a growth of approximately 108%[17] - The group plans to focus on the R&D and production of lithium-ion battery products in the second half of the year, exploring new production methods to enhance efficiency and customization[35] Governance and Compliance - The financial statements were prepared in accordance with Hong Kong Accounting Standards, ensuring compliance with local regulations[7] - The company has adhered to all applicable provisions of the Corporate Governance Code, except for the deviation regarding the roles of Chairman and CEO being held by the same individual since August 1, 2019[52] - The Audit Committee is responsible for reviewing and supervising the financial reporting process and internal controls of the group[53] - All directors confirmed compliance with the standards set forth in the Listing Rules during the reporting period[54] Shareholder Information - The group did not recommend the payment of an interim dividend for the current period, consistent with the previous year[18] - The company plans to issue 593,365,583 shares at a subscription price of HKD 0.1 per share as part of a rights issue[29] - The net proceeds from the rights issue amounted to approximately HKD 57,915,000, which have been fully utilized as of June 30, 2024[49] Cash Flow and Receivables - As of June 30, 2024, the group's bank and cash balance was approximately HKD 4,844,000, up from HKD 2,598,000 as of December 31, 2023[44] - The group's trade receivables decreased from HKD 30,239,000 to HKD 25,000,000, reflecting a decline of approximately 17.1%[22] - The total trade receivables aged 0 to 60 days amounted to HKD 20,589,000, down from HKD 26,041,000, a decrease of about 21.0%[24] Risks and Future Outlook - The group does not foresee significant foreign exchange rate risks due to its operations primarily in China and transactions mainly in RMB[51] - The company cautions investors that the unaudited interim financial results and operational data for the six months ending June 30, 2024, are based on internal data and should not be relied upon excessively[55] - The interim report for the six months ending June 30, 2024, will be published on the Hong Kong Stock Exchange and the company's website at an appropriate time[56] - The group aims to continue developing its overseas sales network to enhance brand recognition and diversify its customer base[35]

Financial Performance - For the year ended December 31, 2023, the Group reported a loss of HK$101,013,000, a decrease of HK$23,668,000 compared to the previous year[13]. - The gross profit narrowed to approximately HK$2,192,000, indicating challenges in maintaining profitability amidst market competition[13]. - The Group's revenue increased from HK$93,791,000 to HK$129,159,000, reflecting a growth of approximately 37.6% due to increased sales to existing customers[32]. - Gross profit narrowed from HK$8,016,000 to HK$2,192,000, indicating a significant decline of about 72.6% primarily due to price adjustments[32]. - Basic and diluted loss per share for the year ended December 31, 2023, was HK$6.05 cents, compared to HK$15.54 cents in 2022, with no final dividend recommended due to funding needs for the Lithium Ion Motive Battery Business[44]. - The Company did not recommend any dividend for the year ended 31 December 2023, consistent with the previous year[187]. - The Board does not recommend any dividend for the year ended December 31, 2023, consistent with the previous year[190]. Sales and Market Trends - Sales of lithium-ion battery products increased by HK$34,760,000 to HK$129,159,000, reflecting a growth of approximately 38%[13][16]. - The new energy market in the PRC experienced a growth of more than 34%, despite overall demand growth being lower than expected[15]. - A total of 6.69 million pure electric vehicles were sold in China in 2023, marking a year-on-year increase of 24.6%[24]. - The overall value of the lithium ion battery industry surpassed RMB 1.4 trillion, with total exports increasing by over 33% to RMB 457.4 billion[23]. - Total lithium ion battery production in China exceeded 940 GWh, representing a year-on-year increase of 25%[23]. - The price of lithium ion batteries dropped by more than 50% during the year, driven by increased production capacity and weaker-than-expected market demand[25]. Cost Management and Expenses - The Group's efforts in cost-control policies contributed to a reduction in losses from continuing operations[13]. - Distribution and selling expenses decreased to approximately HK$4,760,000 from HK$5,934,000, reflecting cost control measures[34]. - Administrative expenses dropped from HK$126,539,000 to HK$117,525,000, mainly due to the inactivity of the Internet Sales Business and other cost-control policies[35]. - Financing costs reduced to approximately HK$4,777,000 in 2023 from HK$6,771,000 in 2022, attributed to the repayment of certain borrowings during the year[42]. - Total employee costs, including Directors' emoluments, were approximately HK$31,129,000 in 2023, down from HK$37,613,000 in 2022, with the number of employees decreasing from 341 to 294[46]. Assets and Liabilities - Non-current assets decreased from HK$353,441,000 in 2022 to HK$264,594,000 in 2023[10]. - Current liabilities increased from HK$341,292,000 in 2022 to HK$361,126,000 in 2023[10]. - Total equity decreased from HK$340,565,000 in 2022 to HK$227,521,000 in 2023[10]. - The Group's bank and cash balances were approximately HK$2,598,000 as of December 31, 2023, down from HK$6,252,000 in 2022, with a gearing ratio of 21.15% compared to 15.50% in the previous year[45]. Corporate Governance and Management - The management team includes experienced professionals with over 36 years and 16 years of experience in the lithium-ion battery sector[83][84]. - The company has appointed independent non-executive directors with extensive backgrounds in corporate management and engineering, enhancing governance and oversight[70][71][73][74]. - The management team is actively involved in product design and technical management, indicating a strong focus on innovation in battery technology[82]. - The Company has complied with all applicable provisions of the Corporate Governance Code, except for the absence of two independent non-executive Directors at the annual general meeting held on June 23, 2023[195]. - The Company will continue to review and improve its corporate governance practices to ensure proper regulation of business activities and decision-making processes[197]. Share Capital and Options - As of December 31, 2023, the Company's issued share capital is HK$148,348,670, with a total of 1,483,486,700 ordinary shares issued[92]. - The Company has adopted a new share option scheme valid for 10 years to incentivize eligible participants[123]. - The total number of shares that may be granted to any individual under the Scheme is limited to 1% of the issued share capital of the Company[129]. - As of December 31, 2023, the total number of shares available for issue under the Scheme was 123,649,370 shares, representing 10% of the total number of ordinary shares in issue[129]. - No share options have been granted by the Company under the Scheme as of the report date[134]. Risks and Compliance - The Group's financial conditions are subject to various risks including market risk, foreign currency risk, credit risk, and liquidity risk[167]. - There were no material breaches of applicable laws and regulations that significantly impacted the Group's business during the year[170]. - Related party transactions did not constitute connected transactions or were exempt from disclosure requirements under the Listing Rules[166]. Strategic Focus - The Group aims to enhance its product portfolio by focusing on innovation in new energy storage products and improving production technologies[16]. - The Group plans to focus on R&D for 18650 lithium ion battery products and explore the feasibility of producing other battery types to diversify its product portfolio[31]. - The company is focused on expanding its presence in the lithium-ion battery market, leveraging the expertise of its senior management[81].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 129,159,000, an increase of 36.8% compared to HKD 94,399,000 in 2022[2] - Gross profit decreased to HKD 2,192,000 from HKD 8,016,000, representing a decline of 72.6%[2] - Operating loss for the year was HKD 96,236,000, improved from a loss of HKD 117,910,000 in the previous year, indicating a reduction of 18.4%[4] - The net loss attributable to the owners of the company was HKD 89,726,000, down from HKD 196,061,000 in 2022, reflecting a 54.4% improvement[6] - Basic and diluted loss per share for continuing operations was HKD 6.05, compared to HKD 7.87 in 2022[6] - Other income for 2023 amounted to HKD 23,857,000, significantly higher than HKD 7,797,000 in 2022, marking an increase of 205.5%[21] - The reported segment loss for the year was HKD (79,087,000), significantly improved from HKD (200,127,000) in the previous year, indicating a reduction in losses by about 60.6%[24] Assets and Liabilities - Non-current assets decreased to HKD 264,594,000 from HKD 353,441,000, a decline of 25.1%[7] - Current liabilities increased to HKD 361,126,000 from HKD 341,292,000, an increase of 5.4%[7] - Total equity decreased to HKD 227,521,000 from HKD 340,565,000, a decline of 33.2%[9] - The total assets as of December 31, 2023, were HKD 599,030,000, down from HKD 696,854,000 in 2022, reflecting a decrease of approximately 14%[24] - The total liabilities increased to HKD 371,509,000 in 2023 from HKD 356,289,000 in 2022, marking an increase of about 4.3%[24] Revenue Streams - The company's revenue for the year 2023 from lithium-ion battery products was HKD 129,159,000, an increase of 37.6% compared to HKD 93,791,000 in 2022[20] - The company generated no revenue from property development and cultural services in 2023, compared to HKD 7,809,000 in 2022[20] - The company has reported a significant increase in sales from waste material disposal, generating HKD 5,623,000 in 2023 compared to HKD 1,565,000 in 2022[21] - The company recognized revenue of HKD 5,022,000 from contract liabilities in 2023, compared to HKD 3,254,000 in 2022, marking a growth of 54%[45] Expenses and Costs - The cost of goods sold for the year was HKD 126,967,000, up from HKD 86,383,000 in 2022, representing an increase of approximately 47%[31] - Research and development expenses for the year were HKD 24,351,000, compared to HKD 20,586,000 in 2022, indicating a rise of about 18%[31] - The interest expense for borrowings decreased to HKD 4,166,000 in 2023 from HKD 10,814,000 in 2022, a reduction of approximately 61.5%[28] Cash Flow and Financial Position - The company’s cash and cash equivalents decreased to HKD 2,598,000 from HKD 6,252,000, a decline of 58.5%[7] - Trade receivables aged 0 to 60 days increased significantly to HKD 26,041,000 in 2023 from HKD 8,086,000 in 2022, representing a growth of 222%[38] - The total trade receivables as of December 31, 2023, amounted to HKD 30,817,000, compared to HKD 14,174,000 in 2022, indicating a year-over-year increase of 117%[40] - The weighted average expected credit loss rate for overdue receivables over 60 days was 53% in 2023, up from 45% in 2022[40] - Trade payables rose to HKD 77,795,000 in 2023 from HKD 40,302,000 in 2022, reflecting an increase of 93%[42] Corporate Governance - The company has adhered to all applicable provisions of the corporate governance code, with the exception of two independent non-executive directors who were unable to attend the annual general meeting on June 23, 2023[71] - The chairman and CEO roles are currently held by the same individual, which deviates from the corporate governance code; the board believes this arrangement provides strong and consistent leadership[72] - The audit committee has reviewed the accounting principles and practices adopted by the group and discussed risk management and internal control systems with management for the year ending December 31, 2023[76] Future Outlook - The company is focusing on expanding its lithium-ion battery business and internet sales as its primary revenue streams moving forward[22] - The company plans to further develop its production base in Weinan to expand capacity and meet expected increases in sales orders[56] - The company will focus on R&D for 18650 lithium-ion battery products and explore the feasibility of producing other types of batteries[56]

Financial Performance - Revenue for the six months ended June 30, 2023, was HK$70,326,000, an increase of 32.2% compared to HK$53,216,000 in the same period of 2022[11] - Gross profit for the period was HK$3,930,000, up from HK$2,556,000, reflecting a gross margin improvement[11] - Loss from operations decreased to HK$31,202,000 from HK$44,487,000, indicating a reduction in operational losses[11] - Loss before tax improved to HK$33,672,000 compared to HK$48,181,000 in the previous year[11] - Total comprehensive loss for the period was HK$51,238,000, down from HK$89,266,000, showing a significant reduction in overall losses[12] - Basic loss per share from continuing operations was HK$1.86, an improvement from HK$3.39 in the same period last year[12] - The company reported other income of HK$9,613,000, an increase from HK$7,245,000, contributing positively to financial performance[11] - Administrative expenses decreased to HK$42,455,000 from HK$51,972,000, reflecting cost control measures[11] - The company did not incur any income tax for the period, maintaining a tax rate of 0%[11] - The company reported a total comprehensive income loss of HK$31,184,000 for the period ended June 30, 2023[17] - The Group's total loss for the period was HK$33,672,000, an improvement from HK$48,181,000 in the same period of 2022, representing a reduction of 30.2%[41] Assets and Liabilities - As of June 30, 2023, total net assets decreased to HK$289,327,000 from HK$340,565,000 as of December 31, 2022, representing a decline of approximately 15%[15] - Current assets decreased to HK$313,742,000 from HK$343,413,000, a reduction of about 8.7%[13] - Non-current assets also saw a decline, dropping to HK$300,796,000 from HK$353,441,000, which is a decrease of approximately 15%[13] - The total liabilities decreased to HK$14,861,000 from HK$14,997,000, reflecting a slight reduction of about 0.9%[15] - Segment assets as of June 30, 2023, totaled HK$609,629,000, down from HK$691,394,000 as of December 31, 2022[39] - Segment liabilities increased to HK$222,911,000 as of June 30, 2023, compared to HK$257,597,000 as of December 31, 2022, indicating a decrease of 13.4%[39] Cash Flow and Investments - The company reported a net cash used in operating activities of HK$2,134,000 for the six months ended June 30, 2023, compared to a net cash generated of HK$147,751,000 in the same period of 2022[19] - Cash and cash equivalents at the end of the period were HK$1,629,000, down from HK$7,929,000 at the end of June 2022, indicating a decrease of approximately 79%[19] - Trade and other receivables decreased to HK$284,784,000 from HK$300,458,000, a decline of about 5.2%[13] - The company recognized additions to property, plant, and equipment of approximately HK$1,435,000 during the reporting period[73] - Additions to right-of-use assets amounted to approximately HK$2,574,000 during the reporting period, indicating ongoing investment in office premises[74] - The total cash flows for the six months ended June 30, 2022, were negative at HK$5,629,000, indicating cash outflows during that period[71] Business Operations and Strategy - The company has discontinued its property development and cultural industry-related businesses, focusing on lithium-ion motive battery manufacturing and sales[22] - The Group plans to enhance production capacity and diversify its product portfolio by developing new battery products, including lithium iron phosphate batteries and prismatic lithium ion batteries[111] - Revenue from the Lithium Ion Motive Battery Business rose from HK$52,589,000 for the six months ended June 30, 2022, to HK$70,326,000 in the current period, primarily due to increased sales to existing customers[112] - The Group's management holds a positive outlook on sales performance for the second half of 2023, supported by favorable market conditions[106] Share Capital and Corporate Governance - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year where no dividend was declared[57] - The Company has adopted a new share option scheme valid for 10 years as of July 5, 2022, to incentivize eligible participants[159] - The Company has not been notified of any other persons with interests or short positions in the shares that require disclosure under the SFO as of June 30, 2023[158] - The Company maintains a register of interests in accordance with the SFO, ensuring compliance with disclosure requirements[155] - The audit committee comprises three independent non-executive directors, ensuring compliance with the Listing Rules[178] - The company aims to improve corporate governance practices and comply with the Corporate Governance Code[170] Market Overview - In the first half of 2023, the lithium ion battery industry in China produced over 400 GWh, representing a growth of over 43%, with industrial revenue reaching RMB 600 billion[103] - The domestic household appliance market in China saw national sales and export amounts of RMB 371.1 billion and RMB 296.7 billion, reflecting growth rates of 2.8% and 5.2% respectively compared to the same period last year[104] - Retail sales of cleaning devices equipped with lithium ion batteries experienced a growth of 5% to 9.5%, driven by trends towards intelligent and automated devices[104] - The sales volume of electric two-wheeled vehicles in China represented over 70% of global sales in 2022, indicating strong market demand[105]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 TESSON HOLDINGS LIMITED 天 臣 控 股 有 限 公 司 （於百慕達註冊成立之有限公司） 1201 （股份代號： ） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 中期業績 天臣控股有限公司（「本公司」）之董事（「董事」）會（「董事會」）欣然公佈，本公司及 其附屬公司（「本集團」）截至二零二三年六月三十日止六個月（「報告期間」）之未 經審核簡明綜合中期業績，連同二零二二年同期之比較數字如下： 簡明綜合損益及其他全面收益表 截至二零二三年六月三十日止六個月 （未經審核） 截至六月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （經重列） ...

Financial Performance - For the year ended December 31, 2022, the Group reported a loss of HK$228,015,000, compared to a profit of HK$24,237,000 in 2018[11]. - Total equity decreased to HK$340,565,000 in 2022 from HK$790,604,000 in 2021, indicating a decline in the Group's net worth[11]. - Revenue from the Lithium Ion Motive Battery Business decreased from HK$157,691,000 to HK$93,791,000 due to reduced production scale caused by the pandemic[38]. - Gross profit for the Lithium Ion Motive Battery Business narrowed to HK$8,016,000 in 2022, down from HK$10,882,000 in 2021[42]. - Other income decreased to approximately HK$7,994,000 in 2022 from HK$11,467,000 in 2021, primarily due to fire insurance claims[39]. - Administrative expenses decreased to approximately HK$126,539,000 in 2022 from HK$143,465,000 in 2021, mainly due to reduced depreciation[45]. - Finance costs decreased to approximately HK$6,771,000 in 2022 from HK$7,936,000 in 2021, attributed to partial settlement of borrowings[46]. - Basic and diluted loss per share for continuing operations was HK7.87 cents in 2022, down from HK15.87 cents in 2021[47]. Asset and Liquidity Position - Non-current assets decreased to HK$353,441,000 in 2022 from HK$593,571,000 in 2021, indicating a significant reduction in long-term investments[11]. - Current assets dropped sharply to HK$343,413,000 in 2022 from HK$1,934,860,000 in 2021, reflecting liquidity challenges faced by the Group[11]. - The Group maintained net current assets of approximately HK$2,121,000 as of December 31, 2022, a significant decrease from HK$258,222,000 in 2021[49]. - The gearing ratio improved to about 15.50% as of December 31, 2022, compared to 26.25% in 2021[49]. Business Strategy and Focus - The Group discontinued its Property and Cultural Business to focus resources on the Lithium Ion Motive Battery Business, resulting in immaterial revenue from property unit sales during the year[15]. - The Group aims to enhance product efficiency, quality, and safety while diversifying battery applications for household and industrial use[16]. - The focus will be on cost control and optimal resource allocation to achieve production at the lowest possible cost while maintaining product quality[16]. - The Group plans to promote its battery products globally to sustain sales growth and maximize investment returns for shareholders[16]. - The Group aims to focus on research and development of new energy products, particularly small energy storage devices, to strengthen its position in the PRC new energy market[31]. - The Group plans to explore new overseas markets starting from Southeast Asia to diversify its customer base and establish a comprehensive global sales network[31]. Market Conditions - In 2022, the national lithium-ion battery output in China reached approximately 750 GWh, representing a year-on-year increase of 130% driven primarily by new energy vehicles, which saw a sales increase of 93.4%[22]. - The Group's revenue from its Lithium Ion Motive Battery Business declined due to COVID-19 disruptions, with production activities affected by temporary closures and logistics challenges[23]. - The Group's annual revenue from household battery applications increased slightly by only 1.1%, indicating weak market development in that sector[22]. - The real estate market in China faced significant challenges, with national real estate investment dropping by 10%, and sales area for commodity residential housing units decreasing by 26.8%[28]. Human Resources and Management - As of December 31, 2022, the Group had approximately 342 employees, a decrease from 589 employees in 2021, with total employee costs amounting to approximately HK$37,613,000, down from HK$45,806,000 in 2021[60]. - The Group has developed human resources policies that reward employees based on performance, including discretionary bonuses linked to both Group and individual performance[60]. - The Group has implemented training programs for management and employees to promote career advancement[60]. - The company has a strong management team with extensive experience in their respective fields, enhancing operational efficiency and innovation[87][88][89]. - The management team is committed to maintaining high-quality standards in battery products, ensuring compliance with industry regulations[89]. Corporate Governance - The Board will continue to review and improve corporate governance practices to ensure proper regulation of business activities and decision-making processes[198]. - The Company has complied with all applicable provisions of the Corporate Governance Code, except for the absence of two independent non-executive Directors from the annual general meeting[196]. - The roles of chairman and chief executive officer are currently held by the same individual, which deviates from the Corporate Governance Code, but the Board believes this provides strong leadership[197]. - Two independent non-executive directors were unable to attend the annual general meeting held on July 5, 2022, which is a deviation from the Corporate Governance Code[199]. Share Capital and Securities - The Company raised approximately HK$10,427,000 by placing 246,993,000 new shares at a price of HK$0.043 per share, completed on 25 November 2022[101]. - As of 31 December 2022, the Company's issued share capital is HK$148,348,670, with a total of 1,483,486,700 ordinary shares issued[102]. - Cheng Hung Mui holds 775,894,533 shares, representing 52.3% of the total issued share capital of the Company[121]. - The Company had no distributable reserves as of 31 December 2022[109]. - The Group did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2022[158]. Risk Management - The Group's overall risk management program addresses various risks including market risk, foreign currency risk, credit risk, and liquidity risk[162]. - The Company has maintained directors and officers liability insurance for its directors[173]. - The Group will continue to monitor foreign exchange exposure in the future[61].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 TESSON HOLDINGS LIMITED 天 臣 控 股 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：1201） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 年 度 業 績 公 告 天臣控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）之董事（「董事」） 會（「董事會」）欣然公佈，本集團截至二零二二年十二月三十一日止年度之綜合 業績，連同二零二一年同期之經審核比較數字如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 （經重列） 持續經營業務 收益 3 94,399 159,839 ...

Financial Performance - The Group reported a profit for the year of HK$ 39,482,000, a significant recovery from a loss of HK$ 125,762,000 in 2020[10] - Total assets increased to HK$ 2,335,477,000 in 2021 from HK$ 2,187,925,000 in 2020, reflecting a growth of approximately 6.7%[10] - The net assets attributable to owners of the Company decreased to HK$ 764,589,000 in 2021 from HK$ 1,049,978,000 in 2020, indicating a decline of about 27.2%[10] - Revenue from the Lithium Ion Motive Battery Business increased to approximately HK$157,691,000 in 2021, up from HK$149,171,000 in 2020[50] - Revenue from the Property segment amounted to approximately HK$537,000 in 2021, a significant decrease from HK$603,833,000 in the previous year[50] - Revenue from the cultural business slightly increased to approximately HK$10,918,000 in 2021, compared to HK$9,887,000 in 2020[50] - Other income for the year increased to approximately HK$15,863,000 in 2021, up from HK$5,331,000 in 2020, primarily due to gains on disposal of scrap products and increased government grants[50] - Administrative expenses rose to approximately HK$178,757,000 in 2021 from HK$162,930,000 in 2020, driven by increased R&D costs and new internet sales business expenses[54] - The Group recorded impairment losses totaling approximately HK$379,226,000 in 2021, including inventory, property, and goodwill impairments[55] - Basic and diluted loss per share for 2021 was HK26.92 cents, compared to HK2.11 cents in 2020[57] Property Development - The Group's property development projects in Nanning and Nanchang faced delays, leading to a significant drop in revenue for the year[14] - The Group will not commence new property projects in the near future, focusing instead on existing projects due to current market conditions in the PRC[14] - The Group will focus on developing existing projects and will not initiate new property projects in the short term due to regulatory pressures in the real estate sector[18] - The Group recorded an impairment loss of approximately HK$54,391,000 on properties for sale under development due to a downturn in the property market in Nanchang[36] - An impairment of approximately HK$75,693,000 was recognized for remaining property units at Fengxiang Terrace due to the sluggish property market[37] - The presale of Fengxiang Terrace started in late 2019, and all residential units available for sale were fully subscribed[37] - The Group terminated a land transaction for a commercial and residential land parcel in Lishui District, resulting in a loss of approximately HK$5,812,000 mainly from design and survey fees[43] - The Group is facing a bottleneck in future property development and is considering gradually ceasing its property development business[44] - The Group will not commence new property development projects in the near future due to unsuitable land parcels identified[44] Business Strategy and Operations - The Group plans to diversify its business structure and enhance gross profit from battery products by actively seeking new business opportunities[16] - The Group aims to expand its market share in electric motorcycles and develop automobile battery products to meet increasing demand[30] - The management will maintain a cautious production strategy in response to raw material price pressures to further increase gross profit margins[30] - The Group is committed to improving battery product quality and expanding its product range and customer base despite operational challenges[19] - The fire incident did not significantly impact the production activities of the Lithium Ion Motive Battery Business due to the transfer to the more advanced Phase II production base[34] - The Group plans to optimize resource allocation and enhance its international R&D team's capabilities to improve product quality in the lithium-ion motive battery market[45] - The Group aims to develop more battery products targeting home appliances and electric motorcycles to compete in the lithium-ion battery market[45] - The Group's focus on expanding its Lithium Ion Motive Battery Business indicates a strategic direction towards growth in this sector[121] Employee and Management Information - Total employee costs, including Directors' emoluments, were approximately HK$70,265,000 in 2021, up from HK$68,191,000 in 2020[63] - As of December 31, 2021, the Group had approximately 589 employees, an increase from 504 employees in 2020, with total employee costs amounting to approximately HK$70,265,000, up from HK$68,191,000 in 2020[67] - The Group has implemented a human resources policy based on employee performance and contributions, with benefits including housing, medical plans, and training programs for career advancement[67] - The Group's executive team includes experienced professionals with extensive backgrounds in finance, media, and management, enhancing its operational capabilities[81][83][85] - The Group's financial controller, Ms. Cheng Li Zhen, has over 19 years of experience in accounting and financial management[115] - The deputy general manager, Mr. Yang Ai Ping, has over 21 years of experience in project management within the Property and Cultural Business[113] Share Capital and Securities - The Company raised approximately HK$15,640,000 through the placement of 40,008,000 new shares at HK$0.40 per share, completed on July 20, 2021[126] - As of December 31, 2021, the Company's issued share capital is HK$123,649,370, with a total of 1,236,493,700 ordinary shares issued at HK$0.10 each[127] - The total number of shares available for issue under the share option scheme is 119,648,570 shares, which represents 9.68% of the total number of ordinary shares of the Company in issue[156] - A total of 24,300,000 share options were granted under the scheme, all of which have lapsed as of December 31, 2021[157] - The exercise price for share options must not be less than the highest of the closing price on the date of grant, the average closing price for the preceding five trading days, or the nominal value of the shares[155] - The share option scheme was adopted on June 13, 2012, and is set to expire on June 12, 2022[154] - The number of shares that can be granted to any individual under the scheme is limited to 1% of the issued share capital of the Company[156] Risks and Liabilities - The Group faced low foreign exchange risk due to transactions in RMB for its lithium-ion battery and cultural businesses, but there are risks associated with fundraising in HKD and remittances to subsidiaries in China[68] - The Group did not have any material contingent liabilities as of December 31, 2021, consistent with 2020[72] - The management will continue to monitor foreign exchange risks in the future[68] Related Party Transactions - Related party transactions during the year did not constitute connected transactions or were exempt from disclosure and independent shareholders' approval requirements[200] - No beneficial interests in the Group's five largest customers or suppliers were reported by directors or significant shareholders[190]

Financial Performance - Revenue for the six months ended June 30, 2021, was HK$85,063,000, a decrease of 79.9% compared to HK$422,562,000 in the same period of 2020[9] - Gross profit for the reporting period was HK$11,662,000, down 93.2% from HK$171,830,000 in 2020[9] - The company reported a loss from operations of HK$267,695,000, compared to a profit of HK$103,016,000 in the prior year[9] - Total comprehensive loss for the period was HK$253,021,000, compared to a total comprehensive income of HK$23,697,000 in the same period of 2020[9] - The company reported a loss attributable to owners of HK$214,092,000 for the six months ended June 30, 2021, compared to a profit of HK$26,720,000 in the same period of 2020, indicating a significant decline in performance[13] - Total comprehensive loss attributable to owners was HK$193,230,000 for the period, compared to a comprehensive income of HK$17,504,000 in the prior year, reflecting a worsening financial situation[13] - Basic and diluted loss per share was HK$17.89, a substantial decrease from earnings of HK$2.23 per share in the previous year[13] - The company reported a loss for the period of HK$272,667,000, compared to a profit of HK$48,961,000 in the same period of the previous year, indicating a significant decline in performance[141] Income and Expenses - Other income increased to HK$6,401,000, up from HK$2,680,000 in the previous year, representing a growth of 138.3%[9] - Administrative expenses surged to HK$231,134,000, a significant increase from HK$65,181,000 in 2020, reflecting a rise of 254.5%[9] - Impairment losses on trade and other receivables amounted to HK$48,148,000, with no such losses reported in the previous year[9] - Finance costs decreased to HK$4,112,000 from HK$7,214,000, a reduction of 43.5%[9] - Interest expenses on borrowings decreased to HK$10,334,000 from HK$11,001,000, a reduction of approximately 6.1%[144] - Total income tax provision for the period was HK$860,000, a significant decrease from HK$46,841,000 in the prior year[146] - Cost of sales significantly decreased to HK$73,401,000 from HK$250,732,000, representing a decline of approximately 70.7%[152] - Research and development expenses decreased to HK$2,463,000 from HK$11,596,000, a reduction of approximately 78.7%[152] Assets and Liabilities - Non-current assets decreased to HK$761,454,000 as of June 30, 2021, down from HK$805,870,000 at the end of 2020, indicating a reduction in long-term asset value[15] - Current assets totaled HK$2,068,341,000, a decrease from HK$2,187,925,000 at the end of 2020, suggesting a decline in liquidity[15] - Current liabilities increased to HK$1,746,580,000 from HK$1,656,639,000, indicating a rise in short-term financial obligations[17] - Net assets decreased to HK$994,883,000 as of June 30, 2021, down from HK$1,240,390,000 at the end of 2020, reflecting a decline in overall equity[17] - The company reported a significant increase in contract liabilities, which rose to HK$1,011,846,000 from HK$938,905,000, indicating a growing obligation to deliver goods or services[17] - The company’s goodwill decreased to HK$199,758,000 from HK$220,408,000, suggesting a reduction in the premium paid over the fair value of identifiable assets during acquisitions[15] - The company’s reserves decreased significantly from HK$930,329,000 to HK$742,663,000, indicating a reduction in retained earnings and other reserves[17] - Total assets as of June 30, 2021, were HK$994,883,000, an increase from HK$882,312,000 at the end of June 2020[117] - Total liabilities were HK$1,707,311,000 as of June 30, 2021, down from HK$1,632,285,000 at the end of 2020, indicating an increase of about 4.6%[135] Cash Flow - Net cash used in operating activities for the six months ended June 30, 2021, was HK$52,404,000, a decrease from net cash generated of HK$62,679,000 in 2020[120] - Cash and cash equivalents at the end of the period were HK$7,520,000, down from HK$58,770,000 at the end of June 2020[120] - The company reported a net cash generated from investing activities of HK$28,262,000 for the six months ended June 30, 2021, compared to a net cash used of HK$42,099,000 in 2020[120] - The repayment of borrowings amounted to HK$12,014,000 during the period, with lease liabilities repayment of HK$822,000[120] - The company reported a significant increase in cash flows from the disposal of right-of-use assets, generating HK$35,893,000 in the first half of 2021[120] Strategic Focus - The board is focused on strategic initiatives to improve operational efficiency and explore market expansion opportunities moving forward[8] - The company is engaged in the manufacturing and sale of lithium-ion motive batteries and related equipment, indicating a focus on the new energy sector[124] - The company plans to continue its investment in property development and cultural industry-related businesses, including large-scale event production[124] Shareholder Information - The company’s controlling shareholder is Double Key International Limited, incorporated in the British Virgin Islands[124] - The Company issued Convertible Bonds with a principal amount of HK$300,000,000 at a coupon rate of 3% on 28 February 2017, maturing on 30 June 2036[190] - The Company early redeemed the Convertible Bonds on 26 August 2020, after allotting 150,000,000 conversion shares equivalent to HK$240,000,000[192] - The amount due to the controlling shareholder was approximately HK$382,728,000, with a convertible bond issuance of HK$300,000,000 to replace the loan amount[188] - The interest portion of the payable to the Controlling Shareholder was settled by the end of 2020[191]