Financial Performance - The total revenue for the year 2020 was HKD 2,924.6 million, with a compound annual growth rate (CAGR) of 3.5% from 2016 to 2020[16]. - The company's revenue for the year ended December 31, 2020, was HKD 2,924.6 million, a decrease of 19.7% compared to HKD 3,640.2 million in 2019[37]. - The adjusted profit attributable to shareholders was HKD 313.4 million, down 45.6% from HKD 575.7 million in the previous year[37]. - The company reported a loss attributable to shareholders of HKD 148.2 million, primarily due to impairment losses on goodwill and other assets amounting to HKD 444.2 million[37]. - Free cash flow for the year was HKD 364.0 million, equivalent to 114.7% of the adjusted profit[37]. - The EBITDA for the year was HKD 356.7 million, a decline of 67.1% from HKD 1,082.8 million in 2019[34]. - The group's gross profit margin decreased to 26.2% from 31.1% in the previous year, a decline of 4.9%[54]. - The group reported a net loss attributable to shareholders of HKD 144.3 million, a decrease of 126.8% compared to a profit of HKD 539.0 million in 2019[52]. - The operating loss for the year was HKD 32.0 million, a decline of 104.6% from an operating profit of HKD 696.5 million in 2019[54]. Revenue Breakdown - The investment casting segment accounted for 44.7% of the group's revenue for the year ended December 31, 2020[21]. - Precision machining contributed 31.7% to the group's revenue for the year ended December 31, 2020[21]. - Sand casting represented 14.9% of the group's revenue for the year ended December 31, 2020[23]. - Surface treatment services accounted for 8.7% of the group's revenue for the year ended December 31, 2020[23]. - Revenue from the investment casting segment was HKD 1,307.0 million, down 22.3% year-on-year due to the impact of the pandemic on the aerospace market[39]. - Revenue from precision machining decreased by 17.2% to HKD 926.6 million, with significant recovery in the second half of the year[39]. - Revenue from the automotive sector decreased by 14.9% to HKD 1,394.2 million, with passenger vehicles down 21.1% and commercial vehicles down 2.1%[43]. - Revenue from the aerospace and medical sectors dropped significantly by 39.4% to HKD 272.1 million, with aerospace sales down 47.6%[43]. - Revenue from the Americas fell by 27.1% to HKD 1,160.5 million, while European revenue decreased by 22.2% to HKD 932.1 million[45]. - Revenue from the Chinese market increased by 1.5% to HKD 780.8 million, contrasting with declines in other regions[44]. Operational Highlights - The company operates 19 production facilities globally, with 14 currently operational and 5 under construction[20]. - The workforce includes over 6,100 employees, among which over 600 are engineers from around the world[18]. - The company serves over 1,000 customers from more than 30 countries and regions[18]. - The group operates four factories in China, one in Germany, and one in the Czech Republic for investment casting production[21]. - The group manufactures precision machining components in two factories in Turkey, one in China, and one in Mexico[21]. - The majority of surface treatment customers are from the Chinese passenger vehicle market, with a smaller portion from the Chinese aviation market[23]. - The group has an order backlog of HKD 2,623 million as of February 28, 2021, providing strong support for future business growth[50]. Strategic Initiatives - The company plans to develop new energy vehicle components in Turkey and Mexico, with production expected to start next year[46]. - The company is exploring new projects related to new energy vehicles to capitalize on market trends[46]. - The group plans to complete the first phase of its Mexico production facility, which is expected to generate over USD 150 million in annual revenue at full capacity[54]. - The group is implementing a "dual-source production" strategy to mitigate potential supply chain and tariff risks associated with geopolitical factors[50]. - The group continues to pursue a strategy of "global layout" and "local manufacturing" to strengthen its competitiveness in the North American market[50]. Corporate Governance - The company emphasizes high corporate governance standards to enhance shareholder value and ensure transparency and accountability[104]. - The company’s board consists of five executive directors and three independent non-executive directors, ensuring a strong level of independence[104]. - The audit committee is responsible for reviewing the company's financial controls, internal controls, and risk management systems[118]. - The board emphasizes the importance of corporate governance and seeks to enhance efficiency and profitability[106]. - The company has established a formal and transparent nomination policy for selecting and appointing new directors[112]. - The company has established a sustainable development committee to promote sustainability among internal and external stakeholders[125]. Shareholder Engagement - The company actively engages with shareholders and potential investors through various communication channels, including analyst briefings and investor meetings[98]. - The company maintained a dividend payout ratio of 25.0% over the past five years, reflecting its commitment to sustainable shareholder value creation[95]. - The company has a dividend policy to distribute no less than 25% of the distributable profits attributable to equity shareholders annually, subject to various factors[167]. - The company allows shareholders holding at least 10% of voting shares to request a special general meeting within two months of the request[144]. - The company has established a fair and transparent process for shareholders to exercise their rights and communicate effectively with the company[143]. Employee and Management Information - The total employee cost for the year ended December 31, 2020, was HKD 790.4 million, a decrease from HKD 965.0 million in 2019[88]. - The total remuneration for executive directors and senior management for the year ended December 31, 2020, amounted to HKD 13,865,000[128]. - The five highest-paid individuals in the group received total compensation of HKD 14,326,000 for the year ended December 31, 2020[131]. - The company has independent non-executive directors with extensive experience in finance, accounting, and investment management, enhancing corporate governance[154]. - The company’s board members participated in appropriate continuous professional development activities, ensuring compliance with the requirement of at least 15 hours of training[134]. Market and Industry Trends - Demand for high-emission standard parts for commercial vehicles is anticipated to rise due to stricter emission policies globally[46]. - The industrial sector faced challenges due to pandemic-related restrictions, but there was a rebound in hydraulic equipment sales in China during the second half of the year[46]. - Overall, the company experienced a decline in all end markets due to the adverse effects of the COVID-19 pandemic[42]. Financial Management - The group has adopted a prudent financial management approach to allocate sufficient financial resources to its subsidiaries at the lowest financial cost[87]. - The total working capital decreased to 914.2 million HKD as of December 31, 2020, from 1,010.1 million HKD in the previous year[67]. - The effective tax rate increased due to a 13.5 million HKD tax burden from foreign exchange gains and an 11.7 million HKD withholding tax provision for undistributed profits[66]. - The company has not encountered any significant difficulties or liquidity issues due to foreign exchange fluctuations as of December 31, 2020[87].

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 1,368.6 million, a decrease of 28.4% compared to HKD 1,911.1 million in 2019[8]. - Gross profit decreased by 40.3% to HKD 365.9 million, with a gross margin of 26.7%, down from 32.0% in the previous year[8]. - The company reported a loss attributable to shareholders of HKD 269.8 million, a decline of 189.9% from a profit of HKD 300.2 million in 2019[8]. - Adjusted EBITDA for the period was HKD 409.8 million, down 32.5% from HKD 607.5 million in the same period last year[11]. - Adjusted profit attributable to shareholders was HKD 182.9 million, down 44.3% from HKD 328.2 million in the same period last year[14]. - Basic adjusted earnings per share were HKD 0.097, a decline of 55.5% compared to the previous year[14]. - Operating loss for the period was HKD 226.6 million, compared to an operating profit of HKD 394.3 million in the same period last year, reflecting a significant decline in operating profit margin[31]. - The company reported a net loss of HKD 268,251 for the period, compared to a profit of HKD 300,445 in the previous year[102]. - Total comprehensive income for the period was HKD (373,536,000), a decrease from HKD 286,287,000 in the previous year[104]. Debt and Equity - Total debt decreased by 16.1% to HKD 908.0 million from HKD 1,082.3 million[8]. - Net debt reduced by 32.2% to HKD 344.7 million compared to HKD 508.5 million at the end of 2019[8]. - The company’s total equity decreased by 10.7% to HKD 3,597.4 million from HKD 4,027.0 million[8]. - Market capitalization as of June 30, 2020, was HKD 5,028.4 million, down 16.6% from HKD 6,026.5 million[8]. - The net debt-to-equity ratio as of June 30, 2020, was 9.6%, down from 12.6% as of December 31, 2019, mainly due to the repayment of existing borrowings[59]. - The company’s total liabilities decreased to HKD 539,562,000 from HKD 635,661,000, reflecting a reduction of approximately 15.1%[107]. Cash Flow and Investments - Cash flow from operating activities for the six months ended June 30, 2020, was HKD 452.4 million, a decrease of HKD 28.6 million from HKD 481.0 million in the previous year[53]. - Capital expenditures for the six months ended June 30, 2020, amounted to HKD 172.1 million, primarily for capacity expansion in the China factory and infrastructure spending in Mexico[60]. - Cash used in investing activities was HKD 167.7 million, significantly lower than HKD 300.9 million in the previous year, with major expenditures on capital payments for machinery and equipment[53]. - The company incurred a net cash outflow from investing activities of HKD 167,681,000, compared to HKD 300,874,000 in the previous year, indicating a reduction in investment spending[116]. Market and Segment Performance - Revenue from the investment casting segment was HKD 661.1 million, down 23.4% year-on-year, while precision machining revenue fell 37.5% to HKD 390.4 million[16]. - The automotive market saw a significant revenue decline of 31.5%, with total automotive revenue at HKD 596.7 million compared to HKD 870.7 million in the previous year[20]. - Revenue from the Americas decreased by 31.7% to HKD 570.2 million, with the U.S. market contributing HKD 528.6 million, down 32.1%[22]. - The European market revenue dropped by 34.0% to HKD 428.0 million, while Asian revenue decreased by 13.3% to HKD 370.4 million[22]. - The only segment to show slight growth was the medical end market, while all other segments faced declines due to the pandemic[18]. Operational Adjustments and Strategies - The company experienced a significant impact on production capacity due to the COVID-19 pandemic, particularly affecting operations in Europe and North America[15]. - The group is implementing a "Local For Local" strategy with new production facilities in Mexico to enhance supply capabilities and reduce geopolitical risks[24][28]. - The company has adopted a prudent financial management approach to allocate sufficient financial resources to its subsidiaries at the lowest financial cost[66]. - The company has implemented cost control measures to reduce operating expenses, with administrative and other operating expenses down by 21.4% to HKD 119.3 million[39]. Governance and Shareholder Information - The company has adopted the Corporate Governance Code and believes it has complied with all provisions, except for the separation of roles between the Chairman and CEO, which is held by Mr. Lu[74]. - Major shareholders include Impro Development with 1,137,790,787 shares (60.41%) and Baring Private Equity Asia V Holding Limited with 237,153,654 shares (12.59%)[81]. - The company’s board consists of five executive directors and three independent non-executive directors, ensuring strong independence in its composition[74]. - The company has established various committees under the board, including an Audit Committee and a Nomination Committee, to ensure compliance with governance standards[75]. Employee and Operational Metrics - The total employee cost for the six months ended June 30, 2020, was HKD 379.3 million, a decrease from HKD 473.5 million for the same period in 2019[67]. - As of June 30, 2020, the group had 6,553 full-time employees, with 5,505 based in mainland China and 1,048 in other countries[67]. - The company has not identified any acquisition targets as of the mid-report date but will continue to seek opportunities in the second half of 2020[70].

Financial Performance - The company reported a revenue of HKD 3,640.2 million for the year 2019, reflecting a compound annual growth rate (CAGR) of 12.6% from 2016 to 2019[14]. - The company's revenue for the year ended December 31 was HKD 3,640.2 million, a decrease of 2.9% compared to HKD 3,749.1 million in the previous year[26]. - Adjusted net profit attributable to shareholders was HKD 538.8 million, up 31.5% from HKD 409.6 million in the previous year[26]. - Basic earnings per share increased by 16.5% to HKD 31.8 cents from HKD 27.3 cents[26]. - EBITDA for the year was HKD 1,082.8 million, representing a 13.7% increase from HKD 952.6 million in the previous year[24]. - Gross profit fell by 6.3% to HKD 1,131.5 million, with a gross margin of 31.1%, down from 32.2% in the previous year[42]. - The company reported a net profit of HKD 539.0 million, representing a 31.0% increase compared to HKD 411.5 million in 2018[38]. - Operating profit increased by 21.3% to HKD 696.5 million, with an operating margin of 19.1%, up from 15.3% in the previous year[38]. - Total revenue for the year was HKD 3,640.2 million, representing a decrease of 2.9% compared to the previous year[32]. - The company experienced a significant reduction in financing costs, which decreased by 33.3% to HKD 58.0 million[38]. Market and Operational Insights - The company is the seventh largest independent investment casting manufacturer globally and the largest in China, with precision machining accounting for 30.7% of its revenue[14]. - The company has over 7,100 employees, including more than 600 engineers from around the world, and serves approximately 1,600 customers across over 30 countries[16]. - The company operates 15 production facilities globally, with sales offices and warehousing capabilities in China, the Americas, Luxembourg, Germany, Turkey, and Hong Kong[18]. - The company aims to provide a one-stop solution, including R&D, mold design and manufacturing, casting, secondary machining, heat treatment, and surface treatment[14]. - The company has established long-term strategic partnerships with several globally recognized industry leaders[13]. - The company is focused on innovation and efficiency, aiming to minimize non-value-added activities and enhance operational effectiveness[10]. Revenue Breakdown - Revenue from the automotive end market decreased by 6.2% year-on-year to HKD 1,637.5 million, accounting for 45.0% of total revenue[31]. - Revenue from the industrial end market declined by 5.2% year-on-year to HKD 1,553.9 million, primarily due to protectionism in global trade[31]. - Revenue from the aerospace and medical end markets grew by 23.0% year-on-year to HKD 448.8 million, driven by strong demand in these sectors[31]. - Revenue from precision machining parts decreased by 7.9% to HKD 1,118.7 million, primarily due to weak demand in the commercial vehicle and hydraulic equipment markets[28]. - Surface treatment revenue fell by 21.7% to HKD 274.8 million, impacted by declining demand in the passenger vehicle market in mainland China[28]. Strategic Initiatives - The company is investing in a new production facility in San Luis Potosí, Mexico, with a total land area of 227,474 square meters, aimed at mitigating supply chain risks[33]. - The company plans to implement a "dual-engine growth" strategy focusing on organic growth and strategic acquisitions to enhance its market position[36]. - The company aims to balance its market coverage across automotive, industrial, aerospace, and medical sectors to improve profitability and growth potential[35]. - The company continues to focus on high-precision and high-complexity products while implementing a "Local For Local" strategy to enhance operational efficiency[33]. Corporate Governance and Management - The company has committed to maintaining high corporate governance standards to enhance shareholder value and transparency[82]. - The board consists of five executive directors and three independent non-executive directors as of December 31, 2019[84]. - The audit committee held two meetings during the year, with all members present at each meeting[93]. - The remuneration committee held one meeting during the year, with all members present[96]. - The company has a formal and transparent nomination policy for selecting and appointing new directors[88]. - The company emphasizes fair and transparent procedures for all shareholders to exercise their rights and engage in effective communication[115]. Shareholder Information - The company maintained a dividend payout ratio of 25% for the fiscal year 2019, with dividends increasing approximately 60% since 2016[74]. - The interim dividend for the fiscal year 2019 was set at HKD 0.04 per share, while the final dividend was HKD 0.032 per share[78]. - As of December 31, 2019, the company's distributable reserves for dividends amounted to HKD 1,636.5 million[139]. - The company has a public float exceeding 25% of its issued shares as of the report date[174]. Audit and Compliance - The independent auditor for the group is KPMG, with total fees paid/owed amounting to HKD 7.4 million for the year ended December 31, 2019, down from HKD 11.1 million in 2018[110]. - The audit committee has confirmed that the group has maintained an appropriate, effective, and adequate internal control and enterprise risk management system throughout the period from listing to December 31, 2019[114]. - The audit identified the trade receivables loss provision as a key audit matter due to the significant management judgment involved in determining the provision[184]. - The audit identified the assessment of goodwill impairment as a key audit matter due to the inherent complexity and management's subjective judgment involved[188]. Employee and Compensation - The total employee costs for the year reached HKD 965.0 million, up from HKD 948.0 million in 2018, reflecting a year-on-year increase of approximately 1.3%[69]. - The total remuneration for executive directors as of December 31, 2019, amounted to HKD 14,049,000, with performance bonuses contributing HKD 2,323,000[100]. - The five highest-paid individuals in the group received a total remuneration of HKD 15,370,000, including performance bonuses of HKD 2,651,000[103]. - The remuneration for independent non-executive directors was set at HKD 225,000 each, effective from April 1, 2019[101]. Future Outlook - The impact of the COVID-19 pandemic on the company's operations and supply chain remains uncertain, with potential fluctuations in demand across different end markets[36]. - The company is well-positioned for future growth with a diverse and experienced management team, ready to tackle market challenges and opportunities[126][128].

Financial Performance - Revenue increased to HKD 1,911.1 million, a 2.3% increase compared to the same period last year; in local currency, it increased by 6.1%[3] - Gross profit rose to HKD 612.4 million, with a gross margin of 32.0% (up from 31.7% in the same period last year)[3] - EBITDA increased to HKD 588.8 million, with an EBITDA margin of 30.8% (up from 29.6% last year)[3] - Operating profit rose to HKD 394.3 million, with an operating margin of 20.6% (up from 19.7% last year)[3] - Net profit attributable to shareholders increased to HKD 300.2 million, an 11.1% increase compared to HKD 270.1 million in the same period last year[4] - Adjusted net profit attributable to shareholders rose to HKD 328.2 million, a 4.7% increase year-on-year[3] - Earnings per share (basic and diluted) were HKD 0.199, a 10.6% increase compared to the same period last year[3] - The group's revenue for the six months ended June 30, 2019, increased by 2.3% to HKD 1,911.1 million, compared to HKD 1,867.8 million in the same period of 2018[12] - Adjusted net profit attributable to shareholders increased by 11.1% to HKD 300.2 million, compared to HKD 270.1 million in the same period of 2018[17] - The net profit attributable to equity holders for the six months ended June 30, 2019, was HKD 300.2 million, up 11.1% from HKD 270.1 million in the same period of 2018, resulting in a net profit margin increase from 14.5% to 15.7%[35] Revenue Segmentation - The investment in the precision machining segment generated revenue of HKD 624.3 million, a 1.2% increase year-on-year[5] - Revenue from the aerospace and medical end markets increased by 33.2%, accounting for 11.3% of total revenue[8] - Revenue from the Americas rose significantly, with sales reaching HKD 835.0 million, accounting for 43.7% of total revenue, up from 39.7% in 2018[12] - Revenue for the six months ended June 30, 2019, was HKD 1,911,085 thousand, an increase of 2.6% compared to HKD 1,867,804 thousand in 2018[57] - Revenue from external customers for the first half of 2019 was HKD 1,911,085,000, a 2.6% increase from HKD 1,867,804,000 in the same period of 2018[102] Cost and Expenses - Selling and distribution expenses increased by 21.2% to HKD 82.0 million, primarily due to additional U.S. tariffs amounting to HKD 10.7 million[24] - Administrative and other operating expenses decreased by 13.0% to HKD 151.9 million, excluding listing expenses[25] - Net financing costs rose to HKD 45.3 million from HKD 43.5 million, attributed to higher LIBOR and HIBOR rates[26] - The total employee cost for the six months ended June 30, 2019, was HKD 473.5 million, compared to HKD 464.3 million for the same period in 2018, reflecting an increase of approximately 2.6%[50] Cash Flow and Liquidity - Cash and cash equivalents increased significantly by 451.1% to HKD 1,309.9 million as of June 30, 2019, compared to HKD 237.7 million at the end of 2018[17] - Cash flow from operating activities was HKD 481.0 million, an increase of 14.4% from HKD 420.5 million in the previous year[38] - Cash used in investing activities was HKD 300.9 million, up from HKD 286.5 million in the same period last year, mainly for capital expenditures[38] - Cash flow from financing activities was HKD 892.1 million, a significant increase from a cash outflow of HKD 141.7 million in the previous year, primarily due to net proceeds from the global offering[40] Assets and Liabilities - Total assets increased by 21.6% to HKD 6,770.1 million as of June 30, 2019, while total equity rose by 41.4% to HKD 3,796.3 million compared to December 31, 2018[36] - The current ratio improved to 1.49 as of June 30, 2019, from 1.06 as of December 31, 2018, primarily due to increased bank balances from global offering proceeds[36] - Total inventory increased by HKD 65.9 million to HKD 804.3 million, mainly due to restored inventory levels in the U.S. and increased production to meet strong customer demand[29] - Trade receivables decreased by HKD 48.7 million to HKD 870.8 million, reflecting the company's efforts to collect outstanding trade debts[31] Dividend and Shareholder Information - The interim dividend declared is HKD 0.04 per share, reflecting the company's profitability and need for financial resources for business expansion[16] - The company declared an interim dividend of HKD 0.04 per share for the six months ended June 30, 2019, totaling approximately HKD 75.3 million, compared to zero for the same period in 2018[145] - Major shareholder Impro Development holds 1,137,790,787 shares, representing 62.06% of the company's issued share capital[154] - Baring Private Equity Asia V Holding owns 237,153,654 shares, accounting for 12.94% of the total issued shares[154] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with all provisions during the reporting period, except for the separation of the roles of Chairman and CEO[147] - The company has established an audit committee, nomination committee, and remuneration committee to ensure compliance with corporate governance standards[148] - The audit committee has reviewed the unaudited interim results for the six months ending June 30, 2019, in accordance with international auditing standards[166] IFRS 16 Adoption - The company has adopted the new International Financial Reporting Standard 16 (IFRS 16) for leases, which requires capitalization of all leases except for short-term leases and low-value assets[75] - The initial application of IFRS 16 resulted in adjustments to the equity balance as of January 1, 2019, but comparative figures have not been restated[76] - The group recognized lease liabilities totaling HKD 158,836,000 as of January 1, 2019, following the adoption of IFRS 16, with a present value of remaining lease payments discounted using a weighted average incremental borrowing rate of 4.60%[79] Share Options and Employee Incentives - The company granted 30,230,000 share options to directors and employees at an exercise price of HKD 2.40, which is a 20% discount to the IPO price[132] - The stock options are designed to incentivize employees and align their interests with the company's performance[159] - The maximum number of shares that can be issued upon the exercise of options granted under the post-IPO share option plan is capped at 10% of the issued shares as of the listing date, totaling 183,330,000 shares[163]