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。 ...

Financial Performance - The company's revenue increased by approximately 65% to about $96.7 million for the six months ended June 30, 2022, compared to approximately $58.4 million in the same period of 2021[15]. - Net profit surged by approximately 195% in the first half of 2022, exceeding the total net profit of 2021 by about 17%[7]. - Gross profit increased by approximately 55.5% to about $26.6 million, while the gross profit margin decreased from approximately 29.3% to 27.5%[17]. - Revenue for the six months ended June 30, 2022, was $96,738,295, an increase from $58,390,044 for the same period in 2021, representing a growth of approximately 65.7%[70]. - Gross profit for the same period was $26,635,441, compared to $17,132,722 in 2021, indicating a year-over-year increase of about 55.3%[70]. - Net profit for the period was $5,066,988, significantly higher than $1,716,894 in the previous year, reflecting a growth of approximately 195.5%[70]. - Total comprehensive income for the period was $4,740,113, compared to $1,755,939 in 2021, marking an increase of around 169.5%[70]. - Basic earnings per share rose to $0.79 from $0.27, representing an increase of approximately 192.6%[70]. Cost and Expenses - Cost of sales rose by approximately 69.9% to about $70.1 million, with the cost of sales as a percentage of total revenue increasing from approximately 70.7% to 72.5%[16]. - Employee compensation totaled approximately $8.1 million for the six months ended June 30, 2022, marking an increase of about 33.7% compared to $6.0 million for the same period in 2021[23]. - The company’s tax expense for the six months ended June 30, 2022, was $1,017,260, significantly higher than $356,521 in the previous year[101]. - Total employee costs for the period were $8,081,457, an increase from $6,042,397 in the prior year[105]. Financial Position - As of June 30, 2022, the company's bank balances and cash amounted to approximately $24.0 million, up from $19.9 million as of December 31, 2021, indicating a strong financial position[20]. - The current ratio remained stable at approximately 1.6 times as of June 30, 2022, consistent with the previous reporting period[20]. - The company's debt-to-equity ratio increased to approximately 73.4% as of June 30, 2022, compared to 68.6% as of December 31, 2021, reflecting a rise in total liabilities[21]. - Cash and cash equivalents increased to $24,028,223 from $15,627,445, reflecting a growth of approximately 53.5%[83]. - The company’s total equity increased from $35,843,470 to $38,522,150, marking an increase of approximately 7.5%[74]. Market and Customer Insights - The company successfully attracted new customers and increased its market share in client procurement portfolios, driven by its industry-leading product variety[15]. - The company anticipates a cautious outlook from brands and retailers regarding future orders due to rising inflation and reduced disposable income among consumers[8]. - Revenue from the United States reached $64,041,345, up 91.8% from $33,394,391 in the previous year[96]. Risk Management and Governance - The company has established a risk management framework to oversee its risk management and internal control systems, ensuring effective governance[66]. - The company is committed to continuous evaluation and improvement of its risk management and internal control systems based on internal audit findings[68]. - The company has adopted the corporate governance code as per the listing rules and has complied with all relevant provisions during the review period[58]. - The audit committee consists of four independent non-executive directors and has reviewed the financial reporting procedures and internal control systems[60]. - No significant issues were found by the audit committee, and recommendations were made to enhance compliance with regulations[60]. Acquisitions and Investments - The company has made three acquisitions that laid the foundation for recent excess growth, despite the challenging market conditions[11]. - The company did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the review period[30]. - The company incurred total expenditures of approximately $139,000 for the acquisition of property, plant, and equipment during the period[109]. Shareholder Information - As of June 30, 2022, the company had issued a total of 639,100,000 shares[48]. - Mr. Sit has a controlled interest in 323,836,000 shares, representing approximately 50.67% of the company's equity[47]. - Ms. Che has a controlled interest in 323,836,000 shares, also representing approximately 50.67% of the company's equity[47]. - Mr. Seliger holds a beneficial interest in 25,600,000 shares, which is about 4.01% of the company's equity[47]. - Dr. Chan holds a beneficial interest in 24,000,000 shares, accounting for approximately 3.76% of the company's equity[47]. - Poolside Ventures Limited is identified as a cornerstone investor with a beneficial interest in 32,992,000 shares, representing 5.16% of the company's equity[53]. - Fung Trinity Holdings Limited holds 51,000,000 shares, which is approximately 7.98% of the company's equity[53]. Cash Flow and Financing - Operating cash flow before changes in working capital was $7,917,653, with a net cash from operating activities of $2,623,778, up from $324,554 in the previous year[81]. - The company reported a significant increase in financing activities, with net new bank borrowings of $8,153,389[83]. - The company obtained new bank loans totaling $67,286,000 during the six months ended June 30, 2022, compared to $31,183,000 in the same period last year, marking a significant increase of 115.6%[124]. - The interest rates on bank loans ranged from 3.66% to 4.73%, compared to 1.35% to 2.06% in the previous year, indicating a rise in borrowing costs[124]. Inventory and Trade Receivables - The company’s inventory increased by $2,029,628, indicating a strategic buildup in preparation for anticipated demand[81]. - Trade receivables as of June 30, 2022, were $13,570,853, an increase from $11,942,123 as of December 31, 2021, representing a growth of approximately 13.6%[112]. - The aging analysis of trade receivables shows that amounts overdue for 0 to 30 days increased to $12,364,894 from $8,219,497, a rise of 50.8%[114]. - Trade receivables measured at fair value amounted to $6,543,096 as of June 30, 2022, compared to $6,369,640 as of December 31, 2021[143].

Financial Performance - The company achieved a revenue growth of approximately 63.8% in 2021, reaching a historical high of about $143.7 million[10] - Net profit increased 40 times compared to the previous year, benefiting from the post-pandemic recovery in apparel sales[10] - Over 60% of the revenue growth was attributed to strategic acquisitions made in 2020, which expanded the company's market share[10] - The company's revenue increased by approximately 63.8% from about $87.7 million in 2020 to about $143.7 million in 2021, primarily due to a strong rebound post-COVID-19 and strategic acquisitions[20] - Revenue from online-native customers rose from approximately $34.8 million in 2020 to about $49.6 million in 2021, marking an increase of approximately 42.8%[20] - Revenue from traditional high-end customers surged from about $50.0 million in 2020 to approximately $85.3 million in 2021, reflecting a growth of about 70.8%[21] - The cost of sales increased by approximately 68.3% from about $61.8 million in 2020 to about $104.0 million in 2021, with the cost of sales as a percentage of total revenue rising from approximately 70.4% to 72.4%[24] - Gross profit increased from about $25.9 million in 2020 to approximately $39.7 million in 2021, a growth of about 52.9%[25] - The company's net profit improved significantly from approximately $0.1 million in 2020 to about $4.3 million in 2021, an increase of about $4.2 million[29] - Cash and cash equivalents stood at approximately $19.9 million as of December 31, 2021, up from $17.8 million in 2020[30] - The current ratio for 2021 was approximately 1.6, compared to 2.0 in 2020, indicating a relatively stable financial position[30] Strategic Acquisitions and Growth - The company is focused on organic growth by acquiring new customers and increasing market share during economic growth periods[13] - The company plans to continue seeking strategic acquisitions to supplement business growth, despite rising valuations making acquisitions more challenging[13] - The sports/outdoor apparel segment accounted for approximately 20.5% of the company's revenue in 2021, with plans for further strategic acquisitions in this area[10] - Cash reserves have reached record levels, providing a strong foundation for future strategic acquisitions despite challenges in the current economic environment[13] Supply Chain and Operational Challenges - Supply chain challenges persisted, with rising freight costs impacting profitability, although the flexible asset-light business model helped fulfill delivery commitments[11] - The company anticipates that freight costs will stabilize at higher levels, while factory shutdowns due to the pandemic are expected to decrease, aiding profit margins in 2022[11] - The company expects to maintain a stable cost base for raw materials, as inflationary pressures can typically be passed on to customers[11] Corporate Governance and Board Structure - The board of directors consists of three executive directors, one non-executive director, and four independent non-executive directors, ensuring a balance of skills and knowledge[50] - The board has appointed four independent non-executive directors, constituting 50% of the board, in compliance with listing rules[57] - The audit committee held four meetings during the year ended December 31, 2021, to review the financial performance and internal controls[64] - The remuneration committee conducted five meetings to review the company's remuneration policies and structures for directors and senior management[67] - The nomination committee held five meetings to evaluate the board's composition and recommend candidates for directorships[69] - The company aims to appoint two female directors by the end of 2022 to enhance gender diversity on the board[59] - The board diversity policy was reviewed to ensure a balance of skills, experience, and perspectives among members[58] - The audit committee is responsible for monitoring the company's financial reporting and risk management systems[64] - The remuneration committee ensures transparency in the remuneration process for directors and senior management[65] - The company has established a practice of holding at least four board meetings annually to discuss financial performance and strategic development[70] - The board will continue to assess the independence of its directors annually to mitigate risks related to conflicts of interest[56] Risk Management and Internal Controls - The company has established a risk management framework involving the board of directors, audit committee, and senior management to oversee risk management and internal control systems[89] - Independent internal control consultants provide annual reports on internal audits and enterprise risk assessments to the audit committee and board of directors[90] - The board reviews the effectiveness of the risk management and internal control systems annually, ensuring they are adequate and effective as of December 31, 2021[92] - The company aims to manage risks rather than eliminate them, providing reasonable assurance against significant misstatements or losses[92] Environmental, Social, and Governance (ESG) Initiatives - The ESG report highlights the company's commitment to sustainable development and social responsibility, showcasing its performance in these areas[110] - The ESG report covers the environmental and social performance of the company for the year from January 1, 2021, to December 31, 2021[111] - The audit committee has appointed third-party ESG professionals to manage the company's ESG performance and identify significant issues[117] - The company emphasizes the importance of stakeholder engagement in its environmental and social development efforts[118] - The company has established communication channels with stakeholders to understand their expectations regarding ESG issues[120] - The company is committed to complying with emission regulations and promoting energy conservation and environmental protection[124] - The company conducts materiality assessments to prioritize ESG issues that are significant to stakeholders and its business[125] - Key ESG issues identified include climate change, energy management, and employee welfare[128] Employee Engagement and Training - The total employee compensation for the year ended December 31, 2021, was stable at approximately $13.7 million, up from $11.4 million in 2020, with a total of 341 full-time employees[36] - The average training hours per employee in 2021 were 0.8 hours for senior employees (40% trained), 28.8 hours for intermediate employees (54% trained), and 3.0 hours for junior employees (86% trained)[168] - The employee turnover rate in 2021 was 23% for female employees and 12% for male employees, a significant decrease from 56% and 83% in 2020 respectively[178] - The company employed a total of 341 employees as of December 31, 2021, with a gender distribution of 68.9% male and 31.1% female[171] - The company conducted various training programs, including hardware skills training and case studies on customer service and corporate liquidity[168] - The company emphasizes employee performance and productivity as key to business success, conducting regular performance evaluations[166] Sustainability and Waste Management - The company generated 120.8 tons of non-hazardous waste in 2021, an increase from 112.6 tons in 2020, with a density of 0.35 tons per employee[156] - Hazardous waste amounted to 23.0 kg in 2021, down from 27.5 kg in 2020, with a density of 0.07 kg per employee[156] - Total water consumption increased to 3,451.0 cubic meters in 2021 from 1,993.1 cubic meters in 2020, with a density of 10.03 cubic meters per employee[157] - The company has implemented strict measures to control the use of toxic chemicals in production and conducts rigorous chemical management audits[152] - The company promotes the 3R principles (Reduce, Reuse, Recycle) among employees to minimize waste generation[153] - The company has received a B rating in the CDP 2021 Water Security Report, indicating transparency in water resource management[157] Community Engagement - The group organized three clothing donation events, donating nearly 3,000 pieces of clothing to various NGOs to support the community[199] - The group has been supporting the HER health project in Vietnam since 2019, aimed at improving female workers' health awareness and capabilities through one-on-one guidance[199]

Revenue Growth - The company's revenue increased by approximately 57.2% from about $37.1 million in the first half of 2020 to approximately $58.4 million in the same period of 2021[10]. - Revenue for the six months ended June 30, 2021, was $58,390,044, representing an increase from $37,136,205 in the same period of 2020, which is a growth of approximately 57%[82]. - Revenue from online native customers increased from approximately $16.8 million in the same period of 2020 to about $20.6 million, representing a growth of approximately 22.1%[20]. - Revenue from traditional customers surged from approximately $20.3 million in the same period of 2020 to about $37.8 million, a significant increase of approximately 86.4%, with the revenue share rising from about 54.7% to 64.8%[21]. - Revenue from the United States reached $33,394,391, up 39.5% from $23,926,641 in the previous year[106]. - Revenue from Europe increased to $12,639,103, a rise of 123.5% compared to $5,665,804 in 2020[106]. - The company reported a total of $15,431,855 in shirt sales, up from $12,992,832 in the previous year, reflecting a growth of 18.7%[104]. - The outerwear category saw a dramatic increase in revenue to $14,446,156 from $2,219,835, marking a growth of 551.5%[104]. Profitability and Financial Performance - The company has successfully transitioned from a loss to profitability during the reporting period[10]. - Net profit for the six months ended June 30, 2021, was approximately $1.7 million, compared to a loss of $2.2 million in the same period of 2020, primarily due to strategic acquisitions and recovery from COVID-19 impacts[26]. - The company reported a profit before tax of $2,073,415, a significant recovery from a loss of $2,175,619 in the previous year[82]. - The group reported a profit of $1,716,894 for the six months ended June 30, 2021, compared to a loss of $(2,221,172) in the same period of 2020[118]. - Basic and diluted earnings per share for the period were both $0.27, recovering from a loss of $0.35 per share in the same period last year[82]. Strategic Acquisitions and Growth Initiatives - The strategic acquisitions made in the second half of 2020 and the first half of 2021 were crucial for the revenue growth, allowing the company to rebound from the negative impacts of COVID-19[10]. - The company is actively seeking further strategic acquisition opportunities to support future growth[13]. - Jonathan Seliger has been appointed as the Executive Director, President, and Chief Commercial Officer to drive digitalization and organic growth, bringing over 25 years of management experience in the luxury and fashion sectors[14]. Digitalization and Innovation - The company is focusing on digitalization and has been enhancing its digital procurement platform to better serve its growing client base, including the online-native brand Shein[13]. - The company aims to establish a digital apparel procurement platform to simplify the purchasing process for clients, similar to how Uber operates[13]. Cost and Expenses - Cost of sales increased by approximately 55.1% from about $26.6 million in the first half of 2020 to approximately $41.3 million, while the cost of sales as a percentage of total revenue decreased from about 71.6% to 70.7%[22]. - Gross profit rose from approximately $10.5 million and a gross margin of 28.4% in the first half of 2020 to about $17.1 million and a gross margin of 29.3%, representing increases of approximately 62.5% and 0.9% respectively[24]. - The company incurred sales and distribution expenses of $8,835,424, up from $6,855,856 in the previous year, reflecting increased operational activities[82]. - Administrative expenses were $5,993,002, slightly higher than $5,843,326 in the previous year, indicating stable management costs[82]. - The cost of inventory recognized as an expense was $41,257,322, up from $26,595,552 in the prior year, indicating a significant increase in production costs[115]. Supply Chain and Operational Challenges - The supply chain disruptions caused by COVID-19 have led to increased input costs and eroded profit margins, affecting the entire apparel value chain[11]. - The ongoing supply shortages are expected to persist throughout the remainder of 2021, impacting production capabilities[11]. Financial Position and Stability - As of June 30, 2021, the company had cash and cash equivalents of approximately $15.6 million, down from $17.8 million as of December 31, 2020, with a current ratio of about 2.1 times[27]. - The company had approximately $39.4 million in available bank financing, with about $22.5 million unutilized, deemed sufficient to support operations[29]. - The debt-to-equity ratio as of June 30, 2021, was approximately 38.1%, down from 44.5% as of December 31, 2020, indicating improved financial stability[30]. - The company’s total equity increased from $31,372,387 to $33,128,326, reflecting a growth of about 5.6%[86]. - Cash and cash equivalents decreased from $17,762,584 to $15,627,445, a decline of approximately 12.0%[84]. Governance and Management - The company has established a risk management framework to oversee its financial reporting and internal control systems[79]. - An independent internal control consultant was appointed to assist in monitoring the effectiveness of the risk management and internal control systems[80]. - The company has adopted a corporate governance code and has established various committees, including the Audit Committee and the Remuneration Committee, to enhance governance practices[73][76]. - The board of directors remained unchanged as of June 30, 2021[51]. Employee and Compensation - The company employed a total of 335 full-time employees as of June 30, 2021, with total employee compensation of approximately $6.0 million, a decrease of about 6.8% from the same period in 2020[38]. - Total employee costs for the period were $6,042,397, a decrease from $6,483,782 in the previous year, with director remuneration at $595,079[115]. - The remuneration for key management personnel totaled $551,578 for the six months ended June 30, 2021, a decrease of 64% from $1,529,329 for the same period in 2020[145]. Shareholder Information - The company’s major shareholders include Imaginative Company Limited and Lever Style Holdings, each holding 317,436,000 shares, representing approximately 49.67% of the company[65]. - The total number of shares issued as of June 30, 2021, was 639,100,000[61]. - The issued and fully paid ordinary shares remained at 639,100,000 shares with a par value of HKD 0.01 as of June 30, 2021[133]. - The company granted 6,400,000 stock options to a qualified individual, the sales director, on June 1, 2021[57]. - The company granted 6,400,000 share options during the period, with the fair value of the options determined to be HKD 908,958[137]. Dividends and Distributions - As of June 30, 2021, the company did not recommend the payment of an interim dividend[49]. - The group did not declare any dividends during the interim period, as the board resolved not to pay any dividends[116].