Financial Performance - The company achieved record sales of $222.9 million and a net profit of $17.1 million for the fiscal year 2024, marking a 9.8% increase in net profit compared to the previous year[7]. - The company reported a record net cash of $34.1 million, representing 54.0% of the net asset value of $63.0 million at year-end[7]. - Revenue and net profit increased by 83% and 139% respectively compared to 2019, prior to the industry's volatility[8]. - The group's revenue increased by approximately 6.9% from about $208.5 million in 2023 to about $222.9 million in 2024, driven by new customer acquisition and deeper penetration with existing customers[18]. - Cost of sales rose by approximately 7.3% from about $148.6 million in 2023 to about $159.4 million in 2024, with the cost of sales as a percentage of total revenue slightly increasing from about 71.3% to about 71.5%[19]. - Gross profit increased by approximately 6.0% from about $59.9 million in 2023 to about $63.5 million in 2024, with a stable gross margin slightly declining from about 28.7% to about 28.5%[20]. - Net profit for the year ended December 31, 2024, was approximately $17.1 million, up from about $15.6 million in 2023, marking the highest net profit in the company's history[21]. - The increase in net profit of approximately $1.5 million was primarily due to a gross profit increase of about $3.6 million from new and existing customers, alongside a reduction in administrative expenses from about $20.1 million in 2023 to about $19.4 million in 2024[22]. - Cash and cash equivalents as of December 31, 2024, were approximately $34.1 million, up from $18.1 million in 2023, with a net cash position of about $34.1 million, a historical high[25]. - The current ratio improved to approximately 2.8 times in 2024 from about 2.4 times in 2023, indicating a relatively strong liquidity position[25]. - The debt-to-equity ratio remained at approximately 0% as of December 31, 2024, due to no bank borrowings, with a net debt-to-equity ratio of about -54.0%[26]. Corporate Governance - The board consists of three executive directors and four independent non-executive directors, with TAN William appointed as CEO effective April 1, 2024[45]. - The company emphasizes the importance of board diversity, aiming to appoint two female directors to enhance gender diversity, currently having one female director[54][55]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific responsibilities and resources[56]. - The company has received annual written confirmations of independence from all independent non-executive directors, affirming their compliance with independence requirements[50]. - The board is responsible for strategic decisions, including approving significant capital expenditures and acquisitions[48]. - The company is committed to maintaining high standards of corporate governance and effective risk management systems[48]. - The board regularly reviews its diversity policy to ensure its effective implementation[55]. - The company has a clear separation of roles between the Chairman and the CEO to ensure proper governance[49]. - The board believes it has achieved a sufficient balance of power and authority between itself and the management team[49]. - The company is focused on enhancing its operational effectiveness through diverse skills and experiences among board members[54]. - The audit committee held two meetings during the review year to oversee the company's financial reporting, risk management, and internal control systems[59]. - The remuneration committee also conducted two meetings to review the company's remuneration policies and the compensation of individual directors and senior management[62]. - The nomination committee held two meetings to assess the composition of the board and to establish policies for the nomination and appointment of directors[63]. - The board of directors conducted a minimum of four meetings within the year to discuss the group's financial performance and strategic development[65]. - The company has a policy for the appointment and re-election of directors, ensuring a formal and transparent process[68]. - All directors are required to retire and seek re-election at least once every three years at the annual general meeting[71]. - The audit committee is composed of four independent non-executive directors, ensuring appropriate professional qualifications[59]. - The remuneration committee is responsible for establishing a transparent process for determining the remuneration of directors and senior management[62]. - The nomination committee evaluates the independence of non-executive directors and considers diversity factors in board composition[63]. - The company has established a risk management system to monitor financial controls and internal audits[60]. - The company has arranged appropriate insurance coverage for potential legal actions against its directors and senior officers[75]. - The board of directors has confirmed compliance with the standard code of conduct for securities trading as of December 31, 2024[77]. - The company has implemented a risk management framework, which includes the board of directors, the audit committee, and senior management, to oversee risk management and internal control systems[84]. - The board has conducted an annual review of the effectiveness of the risk management and internal control systems, concluding that they are adequate and effective for the year ending December 31, 2024[87]. - The company has adopted a code of conduct for securities trading, ensuring that all directors are aware of their responsibilities under applicable laws and regulations[77]. - The internal audit reports and corporate risk assessment reports are submitted to the audit committee and the board at least annually[87]. - The company has established procedures for the immediate disclosure of inside information as required by the Securities and Futures Ordinance and listing rules[88]. - The company secretary has completed no less than 15 hours of relevant professional training during the year ending December 31, 2024[79]. - The board believes that the company has adopted appropriate accounting policies and has consistently applied them in preparing the financial statements[83]. Dividend Policy - The company has adopted a dividend policy that considers factors such as overall financial condition, operational and liquidity needs, and future cash requirements[97]. - The board will continuously review the dividend policy and may exercise discretion to update or modify it as deemed appropriate[99]. Shareholder Communication - The company emphasizes the importance of communication with shareholders and has established diverse channels to ensure timely access to information[95]. - The board recognizes its responsibility to enhance shareholder value and communicate effectively with investors[95]. - The company has established a process for shareholders to submit inquiries to the board[94]. - The company will hold an annual general meeting to facilitate communication between the board and shareholders[95]. ESG Initiatives - The ESG report covers the company's environmental and social performance for the fiscal year ending December 31, 2024[105]. - The ESG report is prepared in accordance with the guidelines set by the Hong Kong Stock Exchange[106]. - The establishment of a dedicated ESG committee by the board to enhance ESG governance and risk management measures[111]. - The ESG committee has engaged third-party professionals to manage the company's ESG performance and identify significant issues for stakeholders[113]. - A comprehensive materiality assessment was conducted to identify the most important ESG issues, resulting in 10 key topics prioritized for sustainability efforts[126]. - Key identified ESG issues include environmental compliance, waste management, and supply chain risks[127]. - The company actively communicates with stakeholders through various channels to understand their expectations regarding ESG matters[113]. - The board oversees departmental coordination to set clearer ESG goals and indicators[111]. - Stakeholder engagement includes regular meetings with regulatory bodies and transparent communication with shareholders[115]. - The company emphasizes the importance of compliance with national policies and regulations as a key expectation from stakeholders[115]. - The ESG committee is responsible for monitoring stakeholder communication channels to ensure their views and expectations are met[111]. - The company aims to integrate sustainable development strategies into long-term business practices based on stakeholder feedback[113]. Environmental Impact - The total greenhouse gas emissions for 2024 were 504.25 tons of CO2 equivalent, a slight increase from 495.76 tons in 2023, indicating a stable trend in emissions[134]. - Scope 2 emissions, which include indirect emissions from purchased electricity, were 358.23 tons of CO2 equivalent in 2024, up from 351.06 tons in 2023[134]. - Scope 3 emissions, covering other indirect emissions, were 146.0 tons of CO2 equivalent in 2024, compared to 144.7 tons in 2023[134]. - The company achieved carbon neutrality and received the PAS 2060 certification for carbon neutrality, reflecting its commitment to reducing its carbon footprint[131]. - The company has signed the Fashion Industry Charter for Climate Action, demonstrating its commitment to a low-carbon future[131]. - The company has been recognized with the B-Corp certification, highlighting its efforts in social and environmental responsibility[130]. - The company has implemented various carbon reduction measures, including replacing all passenger vehicles with electric vehicles this year[132]. - The company aims to continuously optimize operations to maintain carbon neutrality and contribute to global climate change mitigation[132]. - The company has established a working group to monitor and report on extreme weather-related information, addressing climate-related risks[140]. - The company has received recognition from the Science Based Targets initiative (SBTi) for its commitment to reducing its carbon footprint[137]. - Total energy consumption in Shenzhen office for 2024 was 643.4 MWh, an increase of 2.9% from 630.5 MWh in 2023[142]. - The density of energy consumption per employee in 2024 was 1.85 MWh, slightly up from 1.84 MWh in 2023[142]. - Non-hazardous waste generated in 2024 was 60.8 tons, a significant decrease of 46.7% from 114.2 tons in 2023[150]. - Hazardous waste generated in 2024 was 3.5 kg, down 83.3% from 21.0 kg in 2023[150]. - Total water consumption in Shenzhen office for 2024 was 3,876 cubic meters, an increase of 14.9% from 3,372 cubic meters in 2023[152]. - Water consumption density per employee in 2024 was 11.17 cubic meters, up from 9.83 cubic meters in 2023[152]. - The company is committed to using sustainable materials, including organic cotton and recycled polyester, to minimize environmental impact[146]. - The company has implemented strict measures for chemical management to comply with ZDHC MRSL requirements[147]. - The company aims to transition energy sources from fossil fuels to renewable energy as a short-term goal[142]. - The company promotes a culture of reducing, reusing, and recycling (3R) among employees to minimize waste[148]. Employee Welfare - The company recorded zero workplace injuries and lost workdays due to injuries in 2023, maintaining a safe working environment[156]. - Average training hours per employee decreased from 7.7 hours (53% trained) in 2023 to 2.3 hours (60% trained) for mid-level employees in 2024[162]. - The percentage of female employees increased from 29% in 2023 to 30% in 2024, while the percentage of male employees decreased from 33% to 26%[172]. - The employee turnover rate for 2024 was not specified, but the company emphasizes conducting exit interviews to understand reasons for departures[173]. - The company provides various employee benefits, including discretionary bonuses and training, to retain talent and enhance employee satisfaction[158]. - The company adheres to local laws regarding social insurance and housing fund contributions for employees[158]. - Employee training programs were organized to enhance skills in various areas, including customer service and supply chain management[159]. - The company ensures compliance with labor laws, including prohibitions against child labor, and conducts identity verification for new hires[173]. - The company emphasizes the importance of a balanced work-life environment by organizing monthly social events and celebrations[158]. Supply Chain Management - The company actively manages its supply chain and monitors the quality of raw materials and products to ensure sustainable business operations[175]. - The company has established a strict supplier selection process, evaluating factors such as product quality, delivery, capacity, and compliance[181]. - In 2024, the number of suppliers by region includes 288 (24.30%) from China (excluding Hong Kong and Taiwan), 3 (0.25%) from Hong Kong, and 577 (48.69%) from the Americas[178]. - The procurement amount by region shows that 30% comes from China (excluding Hong Kong and Taiwan) and 34% from Europe[183]. - The company has implemented a supplier scorecard system to identify potential risks in the supply chain, including environmental and social risks[181]. - The company has not recorded any product recalls due to safety and health reasons in the current year[185]. - The company has not received any complaints regarding product quality in 2024[188]. - The company emphasizes responsible and environmentally friendly procurement of raw materials, prioritizing suppliers that meet responsible sourcing standards[182]. - The company conducts annual supplier assessments to remove those that do not meet cooperation standards from the qualified supplier list[181]. - The company has not been involved in any legal cases related to bribery, corruption, extortion, or money laundering that significantly impact its operations this year[189]. Community Engagement - The company donated supplies worth RMB 3,073 during the Guangxi Bin Yang flood in June 2024[195]. - The company has been supporting the HERhealth project since 2019, aimed at improving health awareness among female workers in its Vietnam contract factory[195]. - The company has a commitment to support local communities and collaborate with local charities[195]. - The company focuses on protecting the rights and well-being of vulnerable women[195]. Data Protection and Security - The company requires employees to sign confidentiality agreements to protect its intellectual property and conducts regular training on the importance of IP protection[191]. - Employees are required to use designated antivirus software and undergo continuous training on information security practices[6.3]. - The company has established clear data processing policies and procedures to ensure compliance with privacy standards[6.3]. - The company collects only necessary personal data and does not use it without consent[6.3]. - The company does not directly emit waste gases or other pollutants[197]. - The company has set energy efficiency targets and is taking steps to achieve them[200].

Financial Performance - For the fiscal year ending December 31, 2024, Lever Style Corporation reported total revenue of $3,222,929,009, a significant increase from $208,529,489 in the previous year, representing a growth of approximately 1,442%[4] - The gross profit for the same period was $63,490,667, up from $59,882,615, indicating a year-over-year increase of about 5.4%[4] - The net profit for the year was $17,144,830, compared to $15,612,860 in the previous year, reflecting a growth of approximately 9.8%[4] - Basic and diluted earnings per share increased to $2.70 from $2.45, marking an increase of about 10.2%[6] - The company reported a total comprehensive income of $17,031,829 for the year, compared to $15,484,056 in the previous year, an increase of approximately 10%[4] - The company's revenue reached a record high of $222.9 million for the fiscal year 2024, with a net profit of $17.1 million, marking the third consecutive year of record earnings[38] - The net profit for the year ended December 31, 2024, was approximately $17.1 million, up from about $15.6 million in 2023, marking the highest net profit in the company's history[52] Assets and Liabilities - Total assets as of December 31, 2024, were reported at $63,195,320, compared to $54,323,021 in the previous year, showing an increase of approximately 16.4%[8] - Current assets decreased to $89,111,905 from $82,684,999, a decline of about 7.5%[8] - The total liabilities decreased from $34,773,472 to $31,824,655, indicating a reduction of approximately 8.5%[10] - Non-current assets totaled $5,908,070, down from $6,411,494, representing a decrease of about 7.8%[8] - As of December 31, 2024, the company's equity amounted to approximately $63.0 million, an increase from $53.6 million in 2023[58] - The debt-to-equity ratio as of December 31, 2024, is approximately 0%, unchanged from 2023, primarily due to no bank borrowings at year-end[58] - The net debt-to-equity ratio is approximately -54.0% for 2024, compared to -33.8% in 2023, indicating a strong cash position[58] Revenue Breakdown - Total revenue for the year 2024 reached $222,929,009, an increase of 6.4% from $208,529,489 in 2023[20] - Revenue from the United States was $129,877,000, up from $125,534,273, reflecting a growth of 1.9%[20] - Revenue from Europe increased significantly by 28.3% to $55,011,537 from $42,953,111[20] - Revenue from Oceania rose by 33.6% to $34,551,177 compared to $25,849,028 in the previous year[20] - The Greater China region's revenue decreased to $1,429,279 from $2,217,246, a decline of 35.6%[20] Expenses and Costs - Total tax expenses for 2024 amounted to $2,954,093, an increase from $2,659,826 in 2023[25] - Pre-tax profit was impacted by total employee costs of $18,822,455, down from $20,441,255 in the previous year[27] - The company reported a significant increase in director compensation to $4,006,758 from $3,193,931[27] - The depreciation of property, plant, and equipment was $542,167, an increase from $479,146 in 2023[27] - Sales costs rose from about $148.6 million in 2023 to approximately $159.4 million in 2024, an increase of about 7.3%, with sales costs accounting for approximately 71.5% of total revenue in 2024[50] - Gross profit increased from approximately $59.9 million in 2023 to about $63.5 million in 2024, a growth of about 6.0%, while the gross margin slightly decreased from approximately 28.7% to 28.5%[51] Cash Position - Cash and cash equivalents as of December 31, 2024, were approximately $34.1 million, a significant increase from $18.1 million in 2023, resulting in a net cash position of approximately $34.1 million[55] - The company has a net cash position of $34.1 million, representing 54.0% of the net asset value of $63.0 million[38] Employee and Compensation - The total employee compensation decreased by $1.6 million to approximately $18.8 million in 2024, down from $20.4 million in 2023[60] - The company employed a total of 347 full-time employees as of December 31, 2024, an increase from 338 employees in 2023[60] - The company has adopted a stock option plan and a share award scheme to recognize and retain qualified employees[61] Dividends - The interim dividend per ordinary share for 2024 is set at 3 HKD cents, consistent with 2023, while the final dividend for 2023 was 6 HKD cents[29] - The board has proposed a final dividend of 7 HKD cents per share for the year ending December 31, 2024, amounting to approximately 44.7 million HKD (equivalent to about $5.7 million)[62] - The proposed final dividend represents approximately 47.8% of the group's net profit for the year ending December 31, 2024[62] Strategic Plans - Lever Style Corporation continues to focus on market expansion and new product development strategies to drive future growth[12] - The company plans to exit business relationships with two of its top five customers in 2025 due to credit risk concerns, which may impact revenue and profitability[41] - The company anticipates potential strategic acquisitions of struggling apparel suppliers to integrate them into its efficient business model for continued growth[44] - The company plans to continue strict control over credit and financial risks while seeking more opportunities for external growth in 2025[48] Governance and Compliance - The audit committee was established on October 12, 2019, consisting of four independent non-executive directors, with a primary responsibility to oversee the financial reporting system and internal control system of the group[74] - The remuneration committee, also established on October 12, 2019, has five members and is responsible for formulating and reviewing the remuneration policy for directors and senior management[75] - The nomination committee, established on October 12, 2019, consists of five members and evaluates the independence of independent non-executive directors and recommends suitable candidates for board membership[77] - The company adopted revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the financial statements[15] - There are no significant contingent liabilities as of December 31, 2024, consistent with 2023[59] - The company's annual report for the year ending December 31, 2024, will be sent to shareholders and published on the company and stock exchange websites[78]

Financial Performance - Revenue for the first half of 2024 decreased by 4.9% to approximately $95.3 million, down from about $100.2 million in the same period of 2023[6]. - Net profit for the first half of 2024 was approximately $4.3 million, a decrease of 26.2% compared to $5.8 million in the first half of 2023[9]. - Gross profit decreased by approximately 6.1% to about $26.2 million, with a gross margin of 27.5%, down from 27.9% in the first half of 2023[8]. - Sales costs decreased by approximately 4.4% to about $69.1 million, with sales costs as a percentage of total revenue increasing to 72.5% from 72.1% in the previous year[7]. - The company reported a significant reduction in trade receivables, which decreased to $32,570,884 as of June 30, 2024, from $38,698,894 as of December 31, 2023, indicating a decline of about 15.8%[45]. - The company’s total comprehensive income for the period was $4,258,273, down from $5,547,612 in the previous year, reflecting a decline of about 23.2%[43]. - The profit attributable to owners for the six months ended June 30, 2024, was $4,304,099, a decrease of 26.2% from $5,836,729 in 2023[63]. Customer and Market Dynamics - The company expects no single customer to account for more than 12% of total sales in 2024, ensuring low customer concentration risk[4]. - The bankruptcy of Bonobos is seen as a sign of soft consumer demand, prompting brands and retailers to become more cautious[4]. - Revenue from the United States decreased to $52,738,989, down 15.9% from $62,743,752 in the previous year[57]. - Revenue from Europe increased to $26,287,617, up 34.8% from $19,493,735 in the same period of 2023[57]. Operational Efficiency - Sales and distribution expenses decreased from approximately $11.6 million in the first half of 2023 to about $9.8 million during the review period, attributed to stable freight costs and more efficient distribution operations[10]. - Employee compensation for the six months ended June 30, 2024, totaled approximately $9.3 million, a decrease of about 5.4% compared to $9.9 million for the same period in 2023[14]. - Administrative expenses were $9,392,684, slightly down from $9,425,961 in the prior year, indicating a marginal reduction[43]. - The company incurred a trade receivables impairment loss of $2,424,913 during the reporting period, which was not present in the previous year[43]. Corporate Governance and Leadership - The leadership transition will see William Tan take over as CEO on April 1, 2024, following the retirement of the current CEO, who has contributed significantly over the past decade[4]. - The board and management are committed to maintaining good corporate governance practices, adhering to the corporate governance code as per the listing rules[35]. - The company's governance practices have been reviewed and confirmed to comply with all relevant codes during the review period[35]. Cash Flow and Liquidity - As of June 30, 2024, the group maintained a cash and cash equivalents balance of approximately $13.1 million, down from $18.1 million as of December 31, 2023[11]. - The current ratio as of June 30, 2024, was approximately 3.0 times, compared to 2.4 times as of December 31, 2023[11]. - The debt-to-equity ratio as of June 30, 2024, was approximately 0%, indicating no borrowings[12]. - The net cash used in operating activities was $365,615, a significant improvement from a net cash used of $847,958 in the prior year[51]. Shareholder and Incentive Plans - The company operates a shared ownership share incentive plan, effective for ten years from October 27, 2021, aimed at recognizing and rewarding contributions to growth and development[30]. - As of June 30, 2024, the number of unexercised incentive shares increased to 4,405,667 from 3,500,000 in the previous year, representing a growth of approximately 26%[31]. - The maximum number of incentive shares available for grant decreased to 58,131,334 from 63,627,001, indicating a reduction of about 8%[31]. - The company reported no incentive shares were forfeited or lapsed during the review period, indicating stability in the incentive program[31]. Future Outlook - The company remains cautiously optimistic about future growth despite facing significant challenges in the first half of 2024[5]. - The company is exploring merger and acquisition opportunities, focusing on valuation and strategic fit, although no new acquisitions have been completed this year[4].

Financial Performance - Revenue for the six months ended June 30, 2024, was $95,342,134, a decrease of 4% compared to $100,207,524 for the same period in 2023[1] - Gross profit for the same period was $26,211,267, down from $27,915,589, reflecting a gross margin of approximately 27.5%[1] - The net profit for the six months ended June 30, 2024, was $4,304,099, compared to $5,830,617 for the same period in 2023, representing a decline of 26%[2] - Basic and diluted earnings per share for the period were $0.68, down from $0.92 in the previous year[3] - The company reported a total comprehensive income of $4,258,273 for the six months ended June 30, 2024, compared to $5,547,612 in the prior year[3] - Revenue for the first half of 2024 decreased by approximately 4.9% to $95.3 million compared to $100.2 million in the same period of 2023[25] - Net profit for the first half of 2024 declined by 26.2% to $4.3 million, impacted by a $2.4 million bad debt provision and approximately $11 million in withheld goods from Bonobos[22] - Gross profit for the first half of 2024 was approximately $26.2 million, down from about $27.9 million in the same period of 2023, representing a decline of approximately 6.1%[27] - Gross margin decreased to approximately 27.5% in the first half of 2024 from about 27.9% in the same period of 2023[27] Assets and Liabilities - Total current assets decreased to $70,897,942 from $82,684,999, primarily due to a reduction in trade receivables[4] - Total current liabilities decreased to $23,294,825 from $34,773,472, indicating improved liquidity management[4] - Non-current assets totaled $5,769,446 as of June 30, 2024, down from $6,411,494 at the end of 2023[5] - Trade receivables aged over 60 days increased significantly to $7.15 million as of June 30, 2024, compared to $2.53 million as of December 31, 2023[19] - Trade payables decreased to $13.54 million as of June 30, 2024, from $18.89 million as of December 31, 2023[20] - The company's current assets net value was approximately $47.6 million, with a current ratio of about 3.0 times as of June 30, 2024, compared to 2.4 times as of December 31, 2023[29] - The debt-to-equity ratio was approximately 0% as of June 30, 2024, indicating no borrowings, consistent with the previous period[30] - The debt-to-equity ratio (net debt to equity) was approximately -24.7% as of June 30, 2024, an improvement from -33.8% as of December 31, 2023[31] Costs and Expenses - Total employee costs amounted to $9,340,159, a slight decrease from $9,875,076 in the previous year[16] - Sales and distribution expenses decreased from approximately $11.6 million in the first half of 2023 to about $9.8 million during the review period, attributed to stable freight costs and more efficient distribution operations[28] - The financing costs significantly decreased to $42,004 from $174,160, indicating improved cost management[1] - The Hong Kong profits tax for the period was $542,679, down 53.5% from $1,167,983 in the previous year[14] - The group’s total inventory cost for the period was $69,130,867, a decrease from $72,291,935 in the previous year[16] - The group’s deferred tax expense for the period was $156,549, compared to $40,479 in the previous year[14] Dividends and Shareholder Information - The company declared an interim dividend of 3 HKD per share for the six months ended June 30, 2024, consistent with the previous year's interim dividend[17] - The board declared an interim dividend of 3 Hong Kong cents per share, expected to be distributed by September 30, 2024[34] - The interim report for the six months ending June 30, 2024, will be sent to shareholders and published on the company's website[43] Strategic Focus and Management - The company continues to focus on enhancing operational efficiency and exploring market expansion opportunities[7] - The company continues to explore merger and acquisition opportunities, focusing on valuation and strategic alignment[23] - The company is committed to a cautious and optimistic approach to navigate complex market conditions[24] - The company maintained a diversified customer base, with no single customer expected to account for more than 12% of total sales in 2024[22] - The company’s credit risk control measures allowed it to limit bad debt provisions to $2.4 million despite conducting over $3.38 million in business with Bonobos[22] Employee and Governance - The company employed a total of 340 full-time employees as of June 30, 2024, with total employee compensation amounting to approximately $9.3 million, a decrease of about 5.4% from the same period in 2023[33] - The audit committee, established on October 12, 2019, has reviewed the financial reporting procedures and internal control systems, finding no significant issues[40] - The remuneration committee, also established on October 12, 2019, is responsible for reviewing and approving the compensation policies for directors and senior management[41] - The nomination committee, established on October 12, 2019, evaluates the board's structure and recommends qualified individuals for board membership[42] - The stock option plan, adopted on October 12, 2019, remains unchanged during the review period[38] - The joint ownership share reward plan, adopted on October 18, 2021, and amended on June 13, 2023, aims to retain and attract qualified personnel for the company's growth[39] Other Information - The company has no significant contingent liabilities as of June 30, 2024, consistent with the previous period[32] - The company has not purchased, sold, or redeemed any of its listed securities as of June 30, 2024[37]

Financial Performance - The company's revenue for the reporting period decreased by 4.0% to $208.5 million, while net profit increased by 7.6% to $15.6 million, marking a record high[7]. - In 2023, the company recorded revenue of approximately $208.5 million, a decrease of about 4.0% from approximately $217.2 million in 2022[19]. - Cost of sales decreased by approximately 4.5% to about $148.6 million in 2023 from approximately $155.6 million in 2022, with the cost of sales as a percentage of total revenue slightly decreasing from about 71.7% to about 71.3%[20]. - Gross profit fell from approximately $61.6 million in 2022 to about $59.9 million in 2023, a decline of about 2.7%, while gross margin slightly increased from approximately 28.3% to about 28.7%[21]. - The company achieved a net profit of approximately $15.6 million for the year ended December 31, 2023, compared to approximately $14.5 million for the year ended December 31, 2022, marking a significant milestone[22]. - The increase in net profit of approximately $1.1 million from 2022 was primarily due to a reduction in selling and distribution expenses from about $22.3 million to approximately $21.9 million[23]. - As of December 31, 2023, the company had cash and cash equivalents of approximately $18.1 million, down from $23.5 million in 2022, with a net cash position of approximately $18.1 million, a historical high[27]. - The current ratio improved to approximately 2.4 times in 2023 from about 2.0 times in 2022, indicating a relatively strong liquidity position[27]. - The company's total equity increased to approximately $53.6 million as of December 31, 2023, compared to $47.8 million in 2022, with a debt-to-equity ratio of approximately 0%[28]. Acquisitions and Growth Strategy - The company completed its first acquisition in nearly two years, purchasing assets from Tianli Development for $4.8 million, which is approximately 12.7% below the net asset value of the transaction[10]. - The acquisition is expected to contribute less than 10% to the company's revenue in 2024, but aligns with its strategy to expand in the outdoor/sports sector[10]. - The company aims to achieve greater growth through mergers and acquisitions in 2024 and 2025, exceeding the growth rates of 2022 and 2023[11]. - The company plans to focus on acquisitions, platformization, and digitalization as growth engines for 2024 and 2025[17]. Digitalization and Technology - The company has completed the construction of a data warehouse, which serves as the foundation for its digitalization efforts[12]. - Digitalization and platformization efforts are expected to slightly impact profitability in 2024 due to necessary investments in technology and personnel[15]. - The company is developing a centralized product development model to enhance production portability across factories and countries[12]. - The company anticipates that the benefits of cost and flexibility from digitalization will materialize in 2025, contributing positively to long-term growth and profitability[15]. Corporate Governance - The company has adhered to all provisions of the corporate governance code as of December 31, 2023[44]. - The board consists of three executive directors and four independent non-executive directors, ensuring a balanced skill set[46]. - The company aims to appoint two female directors to enhance gender diversity on the board[55]. - The audit committee is responsible for reviewing financial reporting, risk management, and internal control systems[58]. - The board regularly reviews its corporate governance practices to ensure compliance with the governance code[43]. - The company has established a diversity policy to ensure a balanced mix of skills, experience, and perspectives among board members[54]. - The board has retained specific functions, including approving significant capital expenditures and major acquisitions[49]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[51]. - The company is committed to high standards of corporate governance and business ethics to protect shareholder interests[44]. - The board's structure allows for effective teamwork and decision-making without concentration of power in any individual[45]. - The audit committee held four meetings during the year ending December 31, 2023, to review the financial performance and internal controls of the group[60]. - The remuneration committee conducted three meetings to review the company's remuneration policies and structures for directors and senior management[61]. - The board of directors held a minimum of four meetings within the 12-month period to discuss the group's financial performance and strategic development[66]. - The nomination committee also held three meetings to review the composition of the board and establish relevant policies for the nomination and appointment of directors[65]. - All directors participated in continuous professional development training related to their responsibilities under the listing rules, ensuring they are well-informed[74]. - The company has arranged appropriate insurance coverage for its directors and senior officers against potential legal actions[76]. - The remuneration committee's main functions include determining the remuneration of individual directors and senior management, ensuring transparency in the remuneration process[61]. - The nomination committee is responsible for assessing the independence of independent non-executive directors and ensuring board diversity[64]. - The company adopted a nomination policy to ensure a formal and transparent process for the appointment and removal of directors[69]. - The audit committee monitored the group's financial controls and risk management systems throughout the year[62]. - The external auditor, Ernst & Young, received a total fee of $408,000 for audit and non-audit services, with $246,000 for audit services and $162,000 for non-audit services[79]. - The board of directors confirmed compliance with the standard code of conduct for securities trading as of December 31, 2023[78]. - The company secretary, Mr. Li Yao Ming, completed no less than 15 hours of relevant professional training during the fiscal year ending December 31, 2023[80]. - The board believes that the risk management and internal control systems are effective and sufficient as of December 31, 2023[88]. - The company has established a risk management framework involving the board, audit committee, and senior management to oversee risk management and internal controls[85]. - The internal audit reports and enterprise risk assessment reports are submitted to the audit committee and board at least annually[88]. - The company has adopted appropriate accounting policies and has consistently applied them in preparing financial statements[84]. - The board is responsible for ensuring that the financial statements fairly reflect the group's business condition and performance as of the fiscal year-end[83]. - The company is committed to timely disclosure of inside information as per the Securities and Futures Ordinance and listing rules[89]. - The company holds annual general meetings at a location determined by the board, with special general meetings called as needed[90]. Environmental, Social, and Governance (ESG) Initiatives - The board has established a dedicated ESG committee to oversee the company's ESG strategies and performance, enhancing governance and stakeholder engagement[112]. - The ESG report covers the company's environmental and social performance for the year ending December 31, 2023, focusing on key performance indicators relevant to its operations in Shenzhen, China[106]. - The company emphasizes the importance of stakeholder communication in achieving success in environmental and social development, utilizing various channels for engagement[115]. - The board reviews the company's ESG performance annually during board meetings to ensure alignment with strategic goals[113]. - The company has implemented effective communication channels to ensure shareholders receive timely information and can actively participate in its development[96]. - The board has confirmed that the communication channels established are effective and adequately implemented as of December 31, 2023[97]. - The company has received assurances from its controlling shareholders regarding compliance with non-competition commitments, with no violations reported during the review period[103]. - The company is committed to maintaining high transparency and communication with shareholders and investors through various means, including press conferences and analyst briefings[96]. - The company will continue to review and potentially revise its dividend policy as deemed appropriate by the board[100]. - The company received the prestigious B-Corp certification, highlighting its commitment to social and environmental responsibility[130]. - The company maintained stable greenhouse gas emissions compared to 2022, with ongoing efforts to explore methods to offset carbon emissions[134]. - The company has implemented various policies for waste management, water conservation, and energy savings as part of its long-term commitment to environmental protection[133]. - The company aims for long-term carbon neutrality and has signed the Fashion Industry Climate Action Charter to demonstrate its commitment to a low-carbon future[134]. - The company has been recognized for its sustainable development performance by multiple organizations and associations[130]. - The company identified nine key ESG issues through a comprehensive materiality assessment, prioritizing actions for sustainable development[128]. - The company strictly adheres to environmental laws and regulations, with no significant violations reported during the year[130]. - The company focuses on managing supply chain environmental and social risks as part of its operational compliance[129]. - The company emphasizes employee engagement in environmental protection initiatives to enhance awareness and participation[130]. - The company is committed to improving community environments and participating in charitable activities[130]. Environmental Impact and Resource Management - Total greenhouse gas emissions increased to 477.1 tons CO2 equivalent in 2023 from 404.9 tons in 2022, representing an increase of 17.8%[135]. - Scope 2 indirect emissions rose to 332.4 tons CO2 equivalent in 2023 from 313.3 tons in 2022, an increase of 6.0%[135]. - Scope 3 other indirect emissions surged to 144.7 tons CO2 equivalent in 2023 from 91.6 tons in 2022, marking a significant increase of 57.9%[135]. - Total energy consumption reached 630.5 MWh in 2023, up from 594.4 MWh in 2022, reflecting an increase of 6.1%[142]. - The density of energy consumption per employee was 1.84 MWh in 2023, slightly up from 1.80 MWh in 2022[142]. - Non-hazardous waste generated increased to 114.2 tons in 2023 from 63.2 tons in 2022, a rise of 80.0%[149]. - The density of non-hazardous waste per employee was 0.33 tons in 2023, compared to 0.19 tons in 2022[149]. - Hazardous waste generated was 21.0 kg in 2023, up from 13.3 kg in 2022, an increase of 57.1%[149]. - The company has committed to reducing its carbon footprint and has received recognition from the Science Based Targets initiative (SBTi) for its targets aligned with the Paris Agreement[138]. - The company is actively implementing measures to transition energy sources from fossil fuels to renewable energy as part of its short-term goals[142]. - Total water consumption in Shenzhen office decreased to 3,372 cubic meters in 2023 from 3,530 cubic meters in 2022, representing a reduction of approximately 4.5%[151]. - Water consumption density per employee improved to 9.83 cubic meters in 2023 from 10.70 cubic meters in 2022, indicating a 8.1% increase in efficiency[151]. Employee Engagement and Welfare - The average training hours per employee in 2023 were 0.5 hours for senior staff, 7.7 hours for mid-level staff, and 7.4 hours for junior staff, with training participation rates of 18%, 53%, and 44% respectively[160]. - The company recorded zero workplace injuries and lost workdays due to injuries in 2023, maintaining a consistent safety record over the past three years[154]. - Employee benefits include public holidays, annual leave, maternity leave, and discretionary bonuses, with a focus on competitive compensation structures[157]. - The company employed a total of 343 employees as of December 31, 2023, with a gender distribution of 67% male and 32% female[164]. - The company conducted various training programs for employees, including hardware skills training and case studies on customer service and corporate liquidity[160]. - The company emphasizes a healthy and safe working environment, adhering to relevant occupational safety laws and regulations[154]. - Employee engagement initiatives include monthly birthday parties, gatherings, and annual dinners to enhance relationships and provide interaction opportunities[157]. - The company is committed to diversity and inclusion, ensuring fair recruitment processes and adherence to anti-discrimination laws[161]. - Female employees increased to 29% in 2023 from 23% in 2022, while male employees rose to 33% from 31%[167]. - Employee turnover rate as of December 31, 2023, was segmented by age, with 55% under 30 years, 28% between 30 to 50 years, and 42% over 50 years[167]. Supply Chain Management - Supplier procurement by region showed that China (excluding Hong Kong and Taiwan) accounted for 28%, while Hong Kong contributed 3%[177]. - The company has established a strict supplier selection process, evaluating product quality, delivery, capacity, compliance, and other factors[179]. - The company implemented a supplier scorecard system to identify potential environmental and social risks within the supply chain[179]. - The company emphasizes responsible sourcing and has prioritized suppliers that meet responsible raw material procurement standards[182]. - No products were recalled during the year due to safety and health reasons, indicating a strong quality control process[185]. - The company received one complaint regarding product quality during the year, which was resolved and investigated to prevent recurrence[186]. - The company adheres to a five-day work week to ensure adequate rest for employees and prevent forced labor[168]. - The company collaborates closely with suppliers to improve their environmental performance, particularly in water usage during garment production[182]. Compliance and Legal Matters - The company conducted nine training sessions on anti-corruption for current and new employees to enhance awareness[190]. - No legal cases related to bribery, corruption, extortion, or money laundering significantly impacted the company this year[190]. - The company donated RMB 12,000 to support impoverished high school students in Guizhou Province[194]. - The company has been supporting the HERhealth project since 2019, aimed at improving health awareness among female workers in Vietnam[194]. - Employees are required to sign confidentiality agreements before employment to protect sensitive information[192]. - The company emphasizes strict adherence to intellectual property laws and requires prior permission for the use of its trademarks[191]. - The company has implemented measures to ensure information security and protect customer privacy[192]. - The company has not directly emitted any pollutants or harmful waste this year[197]. - The company has set energy efficiency goals and is actively working towards achieving them[199]. - The company collaborates with local charities to support community development and welfare initiatives[194].

Financial Performance - Total revenue for 2023 was $208,529,489, a decrease of 4.1% from $217,209,081 in 2022[7] - The company reported a basic and diluted earnings per share of $2.45 for 2023, up from $2.28 in 2022, indicating a growth of approximately 7.4%[12] - In 2023, the company's revenue experienced a moderate decline, reflecting a 20% reduction in U.S. apparel imports compared to 2022, indicating continued market share gains[25] - The company recorded a net profit of approximately $15.6 million for the year ending December 31, 2023, compared to $14.5 million in 2022, marking the highest net profit in its history[35] - Net profit increased by 7.6% to $15.6 million, marking a record high for the company[52] - Total comprehensive income for the year was $15,484,056, compared to $13,962,389 in 2022, reflecting a growth of 10.9%[95] Assets and Liabilities - Non-current liabilities decreased significantly from $1,479,309 in 2022 to $765,951 in 2023, representing a reduction of approximately 48.2%[3] - Net assets increased from $47,758,935 in 2022 to $53,557,070 in 2023, reflecting an increase of about 12.3%[3] - The company’s total assets decreased slightly from $83,701,851 in 2022 to $82,684,999 in 2023, a decline of about 1.2%[13] - The company has no debt, with a net cash position of $18.1 million, representing 33.8% of the net asset value of $53.6 million[52] - As of December 31, 2023, the group had no significant or contingent liabilities, consistent with the previous year[80] Cash Flow and Dividends - As of December 31, 2023, the company had cash and cash equivalents of approximately $18.1 million, a historical high, with no bank borrowings[37] - The board has proposed a final dividend of 6 HKD cents per ordinary share for the year ending December 31, 2023, totaling approximately 38.3 million HKD (equivalent to about 4.9 million USD), representing about 31% of the group's net profit for the year[69] - The company declared an interim dividend of 3 HK cents per share, compared to no dividend in the previous year[109] Operational Highlights - Trade receivables rose sharply from $25,046,126 in 2022 to $38,698,894 in 2023, marking an increase of approximately 54.8%[13] - Inventory increased from $14,464,428 in 2022 to $16,289,093 in 2023, which is an increase of about 12.6%[13] - The company’s sales cost decreased by approximately 4.5% from about $155.6 million in 2022 to about $148.6 million in 2023, with sales cost as a percentage of total revenue slightly decreasing from approximately 71.7% to 71.3%[34] - Gross profit fell from approximately $61.6 million in 2022 to about $59.9 million in 2023, a decrease of about 2.7%, while gross margin slightly increased from approximately 28.3% to 28.7%[35] - The company faced challenges in inventory management due to supply chain disruptions and a rebound in consumer demand, impacting purchasing decisions in 2023[113] Strategic Initiatives - The company is focusing on expanding its market presence and enhancing product offerings to drive future growth[19] - The company plans to leverage acquisitions as a primary source of growth due to economic difficulties, enhancing the visibility of its flexible production platform[26] - The company aims to establish a centralized product development model to enhance production mobility and standardize product cost calculations with its manufacturing partners[29] - The company aims for greater growth through mergers and acquisitions in 2024 and 2025, leveraging a strong net cash position[55] - The company is targeting to become the "Uber of the apparel supply chain," emphasizing ongoing progress in digitalization and platformization[138] Employee and Governance - The company employed 343 full-time employees as of December 31, 2023, with total employee compensation remaining stable at approximately $20.4 million[40] - The company has established a remuneration policy that is regularly reviewed based on employee performance, qualifications, and industry practices[81] - The company has adopted corporate governance guidelines and believes it has complied with all relevant rules for the fiscal year ending December 31, 2023[44] - The audit committee has reviewed the accounting principles and policies adopted by the group for the year ending December 31, 2023[88] Challenges and Outlook - The company is facing challenges in 2023 and 2024, with expectations for more realistic valuation outlooks amid economic uncertainties[115] - Digitalization and platformization efforts are expected to slightly impact profitability in 2024, but benefits are anticipated to materialize by 2025[30]

Financial Performance - The company's revenue increased by approximately 3.6% from about $96.7 million in the first half of 2022 to approximately $100.2 million in the same period of 2023[12]. - Gross profit rose from approximately $26.6 million in the first half of 2022 to about $27.9 million in the first half of 2023, representing an increase of approximately 4.8%[13]. - The gross profit margin improved from approximately 27.5% in the first half of 2022 to about 27.9% in the first half of 2023[13]. - Revenue for the six months ended June 30, 2023, was $100,207,524, an increase of 3.8% from $96,738,295 in the same period of 2022[78]. - Gross profit for the same period was $27,915,589, compared to $26,635,441 in 2022, reflecting a growth of 4.8%[78]. - Profit before tax increased to $7,025,272, up from $6,084,248, representing a rise of 15.5% year-over-year[78]. - Net profit for the period was $5,830,617, compared to $5,066,988 in the previous year, marking a growth of 15.1%[78]. - The company reported total comprehensive income of $5,547,612 for the period, compared to $4,740,113 in the same period last year, reflecting a growth of 17%[79]. - The group recorded a net profit of approximately $5.8 million for the six months ended June 30, 2023, compared to $5.1 million for the same period in 2022, indicating an increase in profitability[144]. Expenses and Costs - Administrative expenses increased from approximately $8.3 million in the first half of 2022 to about $9.4 million in the first half of 2023, an increase of approximately $1.1 million[14]. - The cost of sales for the six months was $72,291,935, which is an increase from $70,102,854 in 2022, representing a rise of 3.1%[78]. - Administrative expenses increased to $9,425,961 from $8,292,126, showing a rise of 13.7% year-over-year[78]. - Sales costs increased by approximately 3.1% from about $70.1 million in the first half of 2022 to approximately $72.3 million in the review period, while the percentage of sales costs to total revenue decreased from about 72.5% to 72.1%[143]. - Total employee costs for the six months ended June 30, 2023, amounted to $9,875,076, up from $8,081,457 in the previous year, indicating a rise of about 22.2%[190]. - Performance-linked bonuses increased significantly to $2,022,100 from $467,759 year-on-year[157]. - The company reported a significant increase in director remuneration, which rose to $2,564,281 from $1,154,145, representing an increase of approximately 122.1%[190]. Financial Position - As of June 30, 2023, the company's equity amounted to approximately $46.4 million, down from $47.8 million on December 31, 2022[15]. - The debt-to-equity ratio as of June 30, 2023, was approximately 5.6%, significantly lower than 22.5% on December 31, 2022[15]. - The net debt-to-equity ratio as of June 30, 2023, was approximately -9.6%, improved from -26.8% as of December 31, 2022[59]. - The company maintains a healthy financial position with cash and cash equivalents of approximately $7.0 million as of June 30, 2023, down from $23.5 million on December 31, 2022[32]. - As of June 30, 2023, non-current assets totaled $6,674,036, a decrease of 8.9% from $7,328,917 as of December 31, 2022[80]. - Current assets increased to $74,698,881, up 1.2% from $73,703,515 as of December 31, 2022[80]. - Current liabilities decreased to $34,031,531, down 18.5% from $41,792,524 as of December 31, 2022[81]. - The company reported a significant reduction in bank borrowings to $2,594,015, down 75.8% from $10,727,160[81]. - Cash and cash equivalents decreased by approximately $16.26 million, ending at $7.03 million as of June 30, 2023, compared to $24.03 million at the end of 2022[130]. Strategic Initiatives - The company aims to pursue acquisitions as a primary source of growth due to the economic difficulties affecting the industry[25]. - The company plans to expand its smaller product categories through acquisitions or profit subsidies in the short term[27]. - The company is focusing on enhancing its product offerings and expanding market presence through strategic initiatives[82]. - Future outlook includes continued investment in new technologies and potential acquisitions to drive growth[82]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[112]. - The company has implemented new strategies to enhance operational efficiency and reduce costs, contributing to improved financial performance[112]. - The company is focused on maintaining a strong balance sheet while exploring potential acquisition opportunities to further enhance its market position[112]. Governance and Compliance - The company is set to achieve B Corporation certification, joining other sustainable brands in the apparel industry[10]. - The company remains committed to maintaining strong corporate governance and risk management practices[95]. - The company has established an internal audit function to assist the board and audit committee in evaluating and monitoring risk management and internal control systems[76]. - The audit committee has reviewed the accounting principles and policies adopted by the group and discussed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023[73]. - There were no changes in the composition of the board of directors as of June 30, 2023, compared to the announcement made on March 28, 2023[46]. - The company maintained the same senior management composition as reported in the 2022 annual report as of June 30, 2023[47]. Cash Flow and Financing - The net cash flow from operating activities was $(540,049) for the current period, compared to $2,696,065 in the same period last year, showing a decline of approximately 120%[104]. - The net cash flow from investing activities was $247,152, a recovery from $(108,182) in the previous year, indicating a positive turnaround[105]. - The group experienced a net cash outflow of approximately $15.65 million from financing activities for the six months ended June 30, 2023, compared to a net inflow of $1.68 million in the same period of 2022[130]. - New bank borrowings amounted to $12,535,838, while repayments totaled $20,668,982, indicating a net decrease in borrowings[179]. Trade and Inventory - Inventory rose significantly to $16,389,620, an increase of 13.3% compared to $14,464,428 in the previous period[80]. - Trade receivables and notes receivable increased to $28,161,856, reflecting a growth of 12.5% from $25,046,126[80]. - Trade receivables increased to $30.02 million as of June 30, 2023, from $26.91 million at the end of 2022, indicating a rise in customer contracts[147]. - The total amount of overdue trade receivables was $185,755, with no impairment losses recognized due to strong credit quality[177]. - The company's trade receivables aged over 60 days increased to $4,504,495 from $2,498,214, indicating a rise of approximately 80.5%[195].

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，並明確表示概不會就本公告 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。 Lever Style Corporation 利 華 控 股 集團 （於開曼群島註冊成立的有限責任公司） （股份代號：1346） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 中期業績 利華控股集團（「本公司」或「利華」）董事（「董事」）會（「董事會」）謹此公佈本公司 及其附屬公司（統稱「本集團」）於截至二零二三年六月三十日止六個月（「回顧期 間」）的未經審核綜合財務業績連同截至二零二二年六月三十日止六個月的比 較數字。 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 截至六月三十日止六個月 二零二三年 二零二二年 附註 美元 美元 （未經審核） （未經審核） ...

Financial Performance - The company achieved a revenue growth of approximately 51.2%, reaching a historical high of about $217.2 million[5]. - Net profit for the reporting period was approximately $14.5 million, which is about 3.4 times higher than the previous year's profit of approximately $4.3 million[5][33]. - The gross profit increased by approximately 55.2% from about $39.7 million in 2021 to about $61.6 million in 2022[14]. - The company's revenue increased from approximately $143.7 million in 2021 to about $217.2 million in 2022, representing a growth of approximately 51.2%[80]. - Gross profit rose from approximately $39.7 million in 2021 to about $61.6 million in 2022, an increase of approximately 55.2%, with a stable gross margin of about 28.3%[50]. - The company achieved a net profit increase of approximately $10.2 million compared to 2021, attributed to various factors[103]. - The total revenue for the year ended December 31, 2022, was $217,209,081, an increase from $143,687,303 in the previous year, representing a growth of approximately 51%[172]. - The gross profit for the same period was $61,575,281, compared to $39,674,164 in the prior year, indicating a year-over-year increase of about 55%[172]. - The net profit for the year was $14,513,339, significantly up from $4,317,877 in the previous year, reflecting an increase of approximately 236%[172]. - The company reported a basic and diluted earnings per share of 2.28 cents, compared to 0.68 cents in the previous year, marking an increase of approximately 235%[172]. - The total comprehensive income for the year was $13,962,389, compared to $4,435,218 in the previous year, indicating a growth of approximately 215%[172]. Cash and Debt Management - The company recorded a net cash position of approximately $12.8 million in 2022, compared to a net debt of approximately $4.7 million in 2021[15]. - Current assets increased by approximately $13.5 million to about $41.9 million as of December 31, 2022, compared to about $28.4 million in the previous year[17]. - The debt-to-equity ratio improved to approximately -26.8% in 2022 from 13.2% in 2021, indicating a strong cash position[18]. - The asset-liability ratio decreased to approximately 22.5% in 2022 from 68.6% in 2021, primarily due to a reduction in bank borrowings[37]. - The financing cost increased from approximately $0.6 million in 2021 to about $1.3 million in 2022 due to rising bank interest rates[51]. - The company has available bank financing of approximately $55.9 million as of December 31, 2022, with $42.7 million remaining unused, deemed sufficient to support operations[54]. - Non-current liabilities decreased to $1,479,309 from $3,229,436 in the previous year, a reduction of about 54%[175]. - The company's reserves increased to $46,899,146 from $35,022,830, reflecting a growth of approximately 34%[175]. Strategic Initiatives - The company plans to accelerate its growth through mergers and acquisitions while focusing on digital transformation[11]. - The company is enhancing its technology leadership team by bringing in experienced personnel to drive digital transformation strategies[8]. - The company aims for organic growth while addressing challenges posed by inventory surplus and reduced orders from brands and retailers[9]. - The company is investing in digital talent and infrastructure, viewing it as a strategic opportunity despite potential short-term profit impacts[76]. - The company is focusing on the full digitalization of its supply chain platform to provide faster, more responsive, and flexible services to customers[96]. - The company is expanding its technology-driven apparel supply chain platform, currently supporting over 100 brands with approximately 100 partner factories[94]. - The company is in an ideal position to expand its business through acquisition opportunities, leveraging a strong balance sheet, net cash position, and ample debt capacity gained from five acquisitions during the COVID period[121]. Market and Operational Challenges - The company anticipates that organic growth in 2023 may become more moderate due to industry demand decline and inventory surplus issues[77]. - The company plans to tighten credit risk control measures to avoid bad debts, which may limit organic growth potential[77]. - The company anticipates that 2023 will be a challenging year for the entire industry, with many apparel companies considering partnerships with stronger firms[98]. - The company successfully gained new customers and increased market share in procurement portfolios, driven by a leading product range and flexibility in meeting retail demands[80]. Corporate Governance - The board of directors emphasizes the importance of good corporate governance and is committed to maintaining high standards to protect shareholder interests and enhance corporate value[124]. - The company complied with all provisions of the corporate governance code for the year ended December 31, 2022[125]. - The board reviewed its diversity policy, believing that achieving diversity among board members enhances effective governance and operational efficiency[131]. - The board consists of three executive directors, one non-executive director, and four independent non-executive directors, ensuring a balance of power and authority[126]. - The company has a share option plan in place to recognize and reward contributions to growth and development, effective for ten years from October 18, 2021[138]. - There were no reward shares vested during the year, indicating a focus on long-term performance and retention strategies[144]. Impairment and Asset Management - A impairment loss of $2,726,328 was recognized for customer lists as of December 31, 2022, due to recoverable amounts being less than their carrying values[53]. - The recoverable amount of trademarks was determined to be greater than their carrying amount, thus no impairment loss was recognized[105]. - The company conducted an impairment assessment of trade receivables, focusing on the risk of significant misstatements due to fraud or error[190]. - The overall presentation, structure, and content of the consolidated financial statements were evaluated to ensure fair representation of transactions and matters[196]. - The recoverable amount of assets is determined as the higher of fair value less costs to sell and value in use, with future cash flows discounted to present value[198]. - If the estimated recoverable amount of an asset is less than its carrying amount, the carrying amount will be adjusted down to the recoverable amount[198]. - Any reversal of impairment losses will be recognized immediately in profit or loss, but the increased carrying amount will not exceed the amount that would have been determined had no impairment loss been recognized in prior years[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，並明確表示概不會就本公告 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。 Lever Style Corporation 利 華 控 股 集團 （於開曼群島註冊成立的有限責任公司） （股份代號：1346） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 公 告 全年業績 利華控股集團（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及其附屬 公司（統稱「本集團」）於截至二零二二年十二月三十一日止年度（「報告期」）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。 ...