Financial Performance - Revenue for the six months ended June 30, 2024, increased by approximately HKD 403.2 million or 25.2% to approximately HKD 2,002.8 million compared to approximately HKD 1,599.6 million in the same period last year[1] - Gross profit for the reporting period rose by approximately HKD 140.4 million or 38.3% to approximately HKD 507.3 million from approximately HKD 366.9 million in the previous year[1] - Profit for the period increased by approximately HKD 51.8 million or 231.8% to approximately HKD 74.2 million compared to approximately HKD 22.4 million in the same period last year[1] - Operating profit for the period was HKD 115.8 million, up from HKD 49.5 million in the previous year[2] - Basic earnings per share attributable to equity holders of the company increased to HKD 3.55 from HKD 1.06 in the same period last year[2] - The company's net profit for the six months ended June 30, 2024, was HKD 62,096,000, compared to HKD 18,637,000 for the same period in 2023, marking a significant increase[17] Revenue Breakdown - Total revenue for the six months ended June 30, 2024, was HKD 2,002,775,000, representing an increase of 25.1% from HKD 1,599,586,000 for the same period in 2023[12] - Revenue from health and home products was HKD 1,341,486,000, up 26.4% from HKD 1,061,249,000 in the previous year[12] - Revenue from polyurethane foam sales increased to HKD 661,289,000, a rise of 22.8% compared to HKD 538,337,000 in the prior period[12] - The North American market generated revenue of HKD 813,581,000, which is a 37.0% increase from HKD 594,351,000 in the same period last year[13] - Sales in the North American market increased by approximately 36.9% to HKD 813.6 million, driven by an increase in market share[30] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 2,484.6 million, compared to HKD 2,406.1 million as of December 31, 2023[4] - Total liabilities as of June 30, 2024, were HKD 1,534.6 million, an increase from HKD 1,487.7 million as of December 31, 2023[5] - Total equity attributable to equity holders of the company increased to HKD 946.3 million from HKD 925.8 million as of December 31, 2023[5] - Cash and cash equivalents as of June 30, 2024, were HKD 357.6 million, compared to HKD 309.9 million as of December 31, 2023[4] Costs and Expenses - Research and development costs for the period were HKD 40.9 million, compared to HKD 34.3 million in the previous year[2] - Interest income rose to HKD 3,388,000 from HKD 2,914,000, reflecting a growth of 16.2%[14] - Total other income increased to HKD 32,239,000, up from HKD 9,310,000, indicating a substantial growth of 246.5%[14] - The company incurred total finance costs of HKD 23,096,000, a decrease from HKD 25,460,000 in the previous year, showing a reduction of 9.3%[14] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.01 per share for the six-month period ending June 30, 2024, totaling approximately HKD 17.5 million, compared to HKD 0.004 per share in 2023[18] - The interim dividend declared is HKD 0.01 per share, totaling approximately HKD 17.5 million, to be paid on October 10, 2024[43] Financial Ratios - The current ratio improved to 130.4% and the debt-to-equity ratio decreased to 8.2% as of June 30, 2024, indicating a stronger financial position[37] Employee and Operational Insights - The total number of employees increased to 3,208, with total employee costs rising to approximately HKD 303.0 million, reflecting the increase in headcount[45] - The company provides competitive compensation and various benefits to employees, including housing and travel allowances based on their level within the organization[46] - The company has entered into new factory lease agreements in Vietnam and the US to expand operations and meet growing customer demand[40] - The company plans to continue promoting its successful Mattress-in-a-Box product line in the US and Europe, expecting further sales growth[40] Corporate Governance - The company adheres to high standards of corporate governance to protect shareholder interests and enhance corporate value, complying with the corporate governance code as per the Hong Kong Stock Exchange[47] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[52] - The board of directors has reviewed the accounting principles and policies adopted by the company during the reporting period[49] - The company's auditor has conducted a review of the unaudited interim financial information in accordance with the relevant standards[50] - The interim results announcement will be published on the Hong Kong Stock Exchange and the company's website, containing all required information for the reporting period[51] Trade Receivables and Payables - Trade receivables, net of credit loss provisions, increased to HKD 600.7 million as of June 30, 2024, from HKD 542.9 million as of December 31, 2023, representing an increase of 10.6%[19] - Total trade and other receivables amounted to HKD 746.2 million as of June 30, 2024, compared to HKD 706.0 million as of December 31, 2023, reflecting a growth of 5.7%[19] - Trade payables decreased slightly to HKD 449.4 million as of June 30, 2024, from HKD 452.7 million as of December 31, 2023[23] - The company reported a total of HKD 727.9 million in current trade and other payables as of June 30, 2024, compared to HKD 675.4 million as of December 31, 2023, indicating an increase of 7.8%[23] - The aging analysis of trade receivables shows that HKD 409.1 million is within 30 days, up from HKD 291.5 million as of December 31, 2023, indicating a significant improvement in collection[21] - The company’s trade payables have a credit period ranging from 30 to 60 days, with the aging analysis indicating a stable payment cycle[24]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million for the fiscal year, representing a 20% growth compared to the previous year[4]. - Revenue for 2023 increased by approximately HK$437.4 million or 13.8% to approximately HK$3,608.9 million compared to HK$3,171.5 million in 2022[37]. - Gross profit rose by approximately HK$277.5 million or 43.2% to approximately HK$919.7 million, with a gross profit margin increase from 20.3% to 25.5%[44]. - Profit for the year amounted to approximately HK$80.5 million, a turnaround from a loss of approximately HK$37.2 million in 2022[48]. - The gross profit margin improved to 40%, up from 35% in the previous year[4]. Market and User Growth - User data showed a 15% increase in active users, reaching 2 million by the end of the year[4]. - Market expansion efforts led to a 10% increase in market share in the Asia-Pacific region[4]. - Sales in the North American market increased by approximately 14.0% to HK$1,384.7 million, while sales in Europe and other overseas markets surged by approximately 35.9% to HK$634.6 million[39]. - The China market saw a sales increase of approximately 6.7% to HK$1,589.6 million, attributed to a rise in market share of foam sales[39]. Strategic Initiatives - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25%[4]. - New product launches contributed to 30% of total sales, with the introduction of three innovative products[4]. - The company completed a strategic acquisition of a competitor for $100 million, enhancing its product portfolio[4]. - A new marketing strategy was implemented, resulting in a 12% increase in customer engagement[4]. - The company plans to explore opportunities in the growing "Mattress-in-a-Box" market to diversify its customer base and maintain its market position[30]. Operational Efficiency - The current ratio improved to 126.8% from 125.3% in the previous year, indicating better short-term financial health[25]. - Net cash from operating activities amounted to approximately HK$420.3 million, up from approximately HK$190.8 million in FY2022, reflecting improved operational efficiency[52]. - The Group's bank balance and cash increased by approximately HK$140.9 million or 83.4% to approximately HK$309.9 million as of December 31, 2023[52]. - The Group is closely monitoring customer demand and production costs to enhance operational efficiency and flexibility in global supply[73]. Expenses and Costs - Selling and distribution costs increased by approximately HK$33.8 million or 8.0% to approximately HK$458.4 million, in line with revenue growth[46]. - Administrative expenses rose by approximately HK$61.5 million or 32.6% to approximately HK$250.2 million, primarily due to increased PRC withholding tax and staff costs[47]. - Total staff costs for the reporting period amounted to approximately HK$523.6 million, compared to approximately HK$482.7 million in FY2022, indicating an increase of about 8.5%[78]. Corporate Governance and Management - The Group's financial management is overseen by experienced directors with backgrounds in public companies and accounting firms[96][100]. - The Board includes independent non-executive directors with extensive experience in various industries, enhancing corporate governance[98][99]. - The management team is committed to maintaining high standards of corporate governance and financial oversight[96][100]. - The Group continues to prioritize effective management and strategic growth initiatives in its operations[95][104]. Shareholder Information - The payout ratio for dividends was 37.0%, with a total dividend per share of 1.7 HK cents for the year[25]. - The Group recommends a final dividend of HK$1.3 cents per ordinary share, totaling approximately HK$22.7 million to shareholders[120]. - The final dividend is subject to approval at the annual general meeting scheduled for June 7, 2024[120]. - The final dividend will be paid on July 19, 2024, to shareholders registered by July 5, 2024[120]. Charitable Contributions - During the Reporting Period, the Group made charitable donations amounting to approximately HK$178,364[122].

Financial Performance - Revenue for the year ended December 31, 2023, increased by approximately HKD 437.4 million or 13.8% to approximately HKD 3,608.9 million compared to HKD 3,171.5 million in the fiscal year 2022[3] - Gross profit for the year ended December 31, 2023, rose by approximately HKD 277.5 million or 43.2% to approximately HKD 919.7 million, up from HKD 642.3 million in the previous fiscal year[3] - Profit for the year ended December 31, 2023, increased by approximately HKD 117.7 million or 316.5% to a profit of approximately HKD 80.5 million, compared to a loss of HKD 37.2 million in 2022[3] - Total revenue for the year ended December 31, 2023, was HKD 3,608,894, an increase of 13.8% from HKD 3,171,478 in 2022[24] - The company reported a net profit before tax of HKD 122,612 for the year, compared to a loss of HKD 49,210 in the previous year[24][25] - The group reported a net profit attributable to shareholders of HKD 62,593,000 for 2023, a recovery from a loss of HKD 35,970,000 in 2022[42] - The net profit for the reporting period was approximately HKD 80.5 million, a turnaround from a loss of HKD 37.2 million in 2022, primarily due to increased sales and cost-cutting measures[72] Dividends - The board has proposed a final dividend of HKD 0.013 per share for the year ended December 31, 2023, compared to no dividend in the previous year[3] - The company declared an interim dividend of HKD 0.4 per share, totaling approximately HKD 7,000,000, and proposed a final dividend of HKD 1.3 per share, amounting to about HKD 22,750,000[41] - The board of directors proposed a final dividend of HKD 0.013 per ordinary share, amounting to approximately HKD 22,750,000, compared to no dividend in the fiscal year 2022[93] Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 2,406.1 million, an increase from HKD 2,237.9 million in 2022[8] - Total liabilities as of December 31, 2023, were HKD 1,487.7 million, compared to HKD 1,351.0 million in the previous year[9] - Cash and cash equivalents increased to HKD 309.9 million as of December 31, 2023, from HKD 169.0 million in 2022[8] - Trade and other receivables rose to HKD 686.7 million in 2023, up from HKD 551.9 million in 2022[8] - The company’s equity attributable to owners increased to HKD 925.8 million as of December 31, 2023, from HKD 895.2 million in the previous year[9] Revenue Breakdown - Revenue from health and home products sales reached HKD 2,365,437, up 19.4% from HKD 1,980,255 in 2022[26] - Revenue from polyurethane foam sales was HKD 1,243,457, a slight increase of 4.4% from HKD 1,191,223 in 2022[26] - The North American market generated HKD 1,384,678 in revenue, representing a 14% increase from HKD 1,214,227 in 2022[24] Expenses and Costs - Total expenses for 2023 amounted to HKD 3,477,910,000, an increase of 8.1% from HKD 3,216,881,000 in 2022[37] - The total cost of goods sold for 2023 was HKD 2,078,371,000, up from HKD 1,959,515,000 in 2022, representing a 6.1% increase[37] - The company’s marketing expenses rose to HKD 127,154,000 in 2023, compared to HKD 115,604,000 in 2022, marking a growth of 10%[37] - The total financial costs increased to HKD 49,785 from HKD 46,027 in 2022, reflecting higher interest expenses[35] Cash Flow and Liquidity - Operating cash flow for the reporting period was approximately HKD 420.3 million, up from HKD 190.8 million in 2022[73] - The company’s liquidity ratios improved, with the current ratio at 126.8% and the quick ratio at 86.6% as of December 31, 2023[76] Employee and Operational Metrics - The number of employees increased to 2,846 in 2023 from 2,477 in 2022, with total employee costs rising to approximately HKD 523.6 million[85] - The company is closely monitoring production costs and customer demand to enhance operational efficiency and flexibility in global supply[82] Future Outlook - The company anticipates continued financial improvement in 2024 while implementing various cost reduction measures across production and logistics[80] - The company plans to continue expanding its Mattress-in-a-Box product line, which has seen strong demand in both the U.S. and Europe[80] Accounting and Compliance - The company plans to adopt new accounting standards effective January 1, 2024, which are not expected to have a significant impact on future transactions[19] - The independent auditor confirmed that the financial figures in the announcement are consistent with the audited consolidated financial statements for the reporting period[92]

Revenue and Sales Performance - Revenue for the Reporting Period decreased by approximately HK$35.4 million or approximately 2.18% to approximately HK$1,588.8 million compared to HK$1,624.2 million for the corresponding period last year[17]. - Sales in the China market decreased by approximately 7.7% to HK$707.2 million, primarily due to slow economic growth in the PRC[20]. - North American market sales decreased by approximately 2.8% to HK$594.4 million, attributed to inflation in the US economy[21]. - Sales in Europe and other overseas markets increased by approximately 16.6% to HK$287.2 million, mainly due to increased orders from major European customers[21]. - Total revenue for the six-month period ended June 30, 2023, was HK$1,588,753,000, a decrease of 2.2% from HK$1,624,231,000 in the same period of 2022[172]. - Revenue from the China market was HK$707,163,000 in 2023, down from HK$766,286,000 in 2022, a decrease of 7.7%[172]. - Revenue from the North American market was HK$594,351,000 in 2023, compared to HK$611,683,000 in 2022, a decline of 2.8%[172]. Profit and Financial Performance - Profit for the Reporting Period amounted to approximately HK$22.4 million, a turnaround from a loss of approximately HK$44.9 million for the same period last year[29]. - The Group recorded a profit of approximately HK$22.4 million for the reporting period, a significant turnaround from a loss of approximately HK$44.9 million for the six months ended June 30, 2022[31]. - Operating profit for the period was HK$49,460,000, a recovery from an operating loss of HK$38,356,000 in the same period last year[120]. - Profit for the period attributable to equity owners of the Company was HK$18,637,000, compared to a loss of HK$41,886,000 in the previous year[120]. - The profit for the six-month period ended 30 June 2023 was HK$22,363,000, a significant improvement from a loss of HK$44,945,000 in the same period of 2022[122]. - For the six-month period ended June 30, 2023, the company reported a profit of HK$18,637,000, compared to a loss of HK$41,886,000 for the same period in 2022[130]. Expenses and Cost Management - Gross profit increased by approximately HK$92.2 million or 34.9% to approximately HK$356.1 million, with a gross profit margin increase from approximately 16.2% to approximately 22.4%[25]. - Selling and distribution costs decreased by approximately HK$3.1 million or approximately 1.5% to approximately HK$209.0 million, mainly due to a reduction in staff costs[27]. - Administrative expenses decreased by approximately HK$1.4 million or approximately 1.5% to approximately HK$91.3 million, also primarily due to a reduction in staff costs[28]. - The total staff costs for the period were HK$221,401,000, down from HK$251,676,000 in 2022, indicating a decrease of approximately 12%[186]. Cash Flow and Liquidity - Net cash generated from operating activities amounted to approximately HK$187.7 million, compared to net cash used in operating activities of approximately HK$30.9 million for the same period in 2022[33]. - Cash generated from operating activities was HK$199,924,000, a significant improvement from a cash outflow of HK$15,859,000 in the prior year[133]. - Cash and cash equivalents improved to HK$240,455,000 from HK$168,955,000, showcasing better liquidity management[125]. - Cash and cash equivalents at the end of the period increased to HK$240,455,000 from HK$213,042,000 in the prior year[133]. Shareholder Information and Dividends - The Board of Directors declared an interim dividend of HK$0.4 cents per share, totaling approximately HK$7,000,000, to be paid on October 10, 2023[58][62]. - An interim dividend of HK$0.4 cents per share, totaling approximately HK$7,000,000, was declared for the period ended June 30, 2023[193]. Share Options and Executive Compensation - The Post-IPO Share Option Scheme, adopted on March 4, 2014, allows for the grant of share options, with a total of 30,800,000 options granted on January 26, 2017, representing approximately 1.76% of the shares[87]. - No share options were granted under any schemes during the reporting period, with 145,900,000 options available at the beginning and 156,150,000 options at the end of the reporting period[88]. - The share options under the Post-IPO Share Option Scheme are valid for a period of 5 years from the vesting date, with a subscription price of HK$0.69 per share[87]. - The company’s share option plan is set to expire on July 10, 2024, marking its tenth anniversary[89]. - The share options are part of a broader strategy to incentivize key executives and align their interests with shareholders[89]. Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and met all code provisions during the reporting period[99]. - The audit committee reviewed the unaudited condensed consolidated financial information for the reporting period and recommended its adoption by the Board[105]. - The company confirmed compliance with the Model Code regarding Directors' securities transactions during the reporting period[100]. Market and Strategic Outlook - The Group expects continued financial improvement in 2023 and plans to implement various cost-cutting measures across production and logistics[47]. - New online sales projects in the US exceeded expectations, with strong demand anticipated for the Mattress-in-a-box product[48]. - The Group will continue to explore opportunities in the growing Mattress-in-a-Box market and diversify its customer base to maintain its leading position in health and wellness products[50]. Financial Position and Assets - As of June 30, 2023, the Group had net current assets of approximately HK$292.8 million, an increase from approximately HK$277.0 million as of December 31, 2022[32]. - Total assets rose to HK$2,317,970,000 from HK$2,237,942,000, reflecting overall growth in the company's asset base[127]. - Total liabilities increased to HK$1,442,012,000 from HK$1,351,002,000, primarily due to higher trade and other payables[127]. - Non-current assets decreased to HK$821,064,000 from HK$866,671,000 as of 31 December 2022, primarily due to reductions in property, plant, and equipment[125]. Changes in Management - Professor Lam Sing Kwong Simon resigned as an independent non-executive Director effective June 12, 2023[97]. - Dr. Cheung Wah Keung was appointed as an independent non-executive Director effective June 16, 2023[98]. - Mr. Wu Tak Lung resigned as an independent non-executive Director effective June 28, 2023[98].

Financial Performance - Revenue for 2022 decreased to HK$3,151,960, down 26% from HK$4,259,882 in 2021[15] - Gross profit for 2022 was HK$622,744, a decline of 13.1% compared to HK$716,953 in 2021[15] - The company reported a loss before tax of HK$49,210 for 2022, compared to a profit of HK$37,869 in 2021[15] - Total assets decreased to HK$2,237,942 in 2022 from HK$2,828,870 in 2021, reflecting a 21% decline[15] - The net loss margin for 2022 was (1.2%), compared to a profit margin of 0.7% in 2021[18] - The Group's revenue decreased by approximately HK$1,107.9 million or approximately 26.0% to approximately HK$3,152.0 million for the Reporting Period compared to FY2021[33] - Sales in the China market decreased by approximately 33.8% to approximately HK$1,470.7 million, while North American market sales decreased by approximately 22.8% to approximately HK$1,214.2 million[35] - The Group recorded a loss of approximately HK$37.2 million for the Reporting Period, compared to a profit of approximately HK$31.4 million for FY2021[43] Profitability and Margins - The gross profit margin improved to 19.8% in 2022 from 16.8% in 2021[18] - The Group's gross profit decreased by approximately HK$94.2 million or approximately 13.1% to approximately HK$622.7 million, but the gross profit margin increased from approximately 16.8% to approximately 19.8%[40] Operational Efficiency - Inventory turnover days increased to 90.8 days in 2022 from 66.4 days in 2021[18] - Selling and distribution costs increased by approximately HK$4.3 million or 1.0% to approximately HK$424.5 million, driven by increased advertising and marketing expenses for the E-commerce channel[41] Current Assets and Liabilities - As of December 31, 2022, the Group had net current assets of approximately HK$277.0 million, down from approximately HK$377.7 million as of December 31, 2021[49] - The current ratio as of December 31, 2022, was 125.3%, slightly up from 124.7% in 2021, while the quick ratio decreased to 74.6% from 78.7%[58] - The gearing ratio as of December 31, 2022, was 58.9%, compared to 58.4% in 2021, and the debt to equity ratio increased to 39.8% from 35.7%[58] Awards and Recognition - Sinomax USA Inc. won the silver medal for the 2022 Edison Award for its Ecossentials® Sleep Kit[24] - The company received the "Best Sustainable Supplier" and "Best Bedding: Mattress Topper Supplier" awards in December 2022[25] - Sinomax USA Inc. received multiple awards for sustainability and innovation, enhancing the Group's brand recognition in the market[27] Strategic Initiatives - The shift in consumer purchasing patterns from offline to online has led the company to invest more in e-commerce sales channels[23] - The Group anticipates a gradual reduction in the impact of COVID-19 and plans to explore higher growth potential businesses while diversifying its customer base[30] - The Group's direct-to-customer sales through E-commerce increased by 13% compared to the previous year[41] - The group has successfully developed new online sales projects in the US in 2023, anticipating strong demand for its Mattress-in-a-Box product[63] - The group plans to increase investment in relevant equipment and resources to meet the growing demands in the US market[66] Employee Management - As of December 31, 2022, the Group's employee headcount was 2,477, a decrease from 3,258 in FY2021, resulting in total staff costs of approximately HK$482.7 million, down from approximately HK$542.2 million in FY2021[76] - The decrease in staff costs was primarily due to the reduction in headcount, indicating a strategic adjustment in workforce management[76] - The Group maintains competitive remuneration packages and various fringe benefits for employees, including housing and travel allowances[77] - The Group conducts induction training for new employees and ongoing training based on specific operational fields[77] - The Group operates an employee incentive scheme that rewards promotions, salary raises, monetary bonuses, and share options[77] Corporate Governance and Management - The management team includes experienced executives with over 20 years in the polyurethane foam business, indicating strong leadership[82][86] - The Group's financial management is overseen by a team with extensive experience in their respective fields, ensuring robust financial oversight[91][92][96][100][101] - The company is focused on enhancing its corporate governance and strategic planning through the expertise of its independent directors[96][100][101] - The Group's board includes members with diverse backgrounds in finance, management, and corporate governance, contributing to comprehensive decision-making[96][100][101] - The management team is committed to maintaining high standards of financial reporting and corporate governance practices[96][100][101] Shareholder Information - The Group's reserves available for distribution to shareholders amounted to approximately HK$522.9 million as of December 31, 2022, down from approximately HK$533.4 million as of December 31, 2021[141] - The Directors did not recommend the payment of a final dividend for the Reporting Period[129] - The total number of shares issued by the Company as of December 31, 2022, is 1,750,002,000[172] - Each executive director has been granted share options to subscribe for shares, with LAM Chi Fan and CHEUNG Tung each having options for 1,500,000 shares[172] Related Party Transactions - Continuing connected transactions include the sale of foam products to Studio Moderna, which holds a 48.69% equity interest in Dormeo North America, LLC[192] - The 2021-2023 procurement agreement with Studio Moderna governs the supply of foam products from January 1, 2021, to December 31, 2023[200] - Sinomax Trading has entered into multiple procurement agreements with Studio Moderna since 2016, ensuring ongoing supply relationships[193][199] - The company maintains a significant market presence through its strategic partnerships and procurement agreements with connected entities[192]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何 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。 Sinomax Group Limited 盛 諾 集 團 有 限 公司 （根據開曼群島法例註冊成立的有限公司） 1418 （股份代號： ） 2022 12 31 截至 年 月 日止年度之年度業績公佈 表現摘要 • 2021 4,259.9 1,107.9 報告期的收入較 年財政年度的約 百萬港元減少約 百萬港元 26.0% 3,152.0 或 至約 百萬港元。 • 2021 717.0 94.2 報告期的毛利較 年財政年度的約 百萬港元減少約 百萬港元或 13.1% 622.7 至約 百萬港元。 • 2021 31.4 68.6 報告期的（虧損）╱溢利較 年財政年度的溢利約 百萬港元減少約 218.3% 37.2 百萬港元或 至虧損約 百萬港元。 • 2022 12 31 董事會議決不建議就截至 年 月 日止年度派付任何股息。 ...

Revenue and Sales Performance - Revenue for the Reporting Period decreased by approximately HK$377.1 million or approximately 18.8% to approximately HK$1,624.2 million, compared to approximately HK$2,001.3 million for the corresponding period last year[41]. - Sales in the China market decreased by approximately 26.4% for the Reporting Period, while North American market sales decreased by approximately 15.7%[43]. - In Europe and other overseas markets, sales increased by approximately 5.1% for the Reporting Period compared to the corresponding period last year[44]. - Revenue for the six-month period ended June 30, 2022, was HK$1,624,231, a decrease of 18.8% compared to HK$2,001,300 in the same period of 2021[158]. Profitability and Loss - The Group's gross profit decreased by approximately HK$56.4 million or 17.6% to approximately HK$263.9 million during the Reporting Period, while the gross profit margin increased by 0.2% to approximately 16.2%[47]. - Gross profit decreased by approximately HK$56.4 million or 17.6% to approximately HK$263.9 million, compared to approximately HK$320.3 million in the corresponding period last year[48]. - Loss for the Reporting Period amounted to approximately HK$44.9 million, compared to a profit of approximately HK$14.5 million for the six-month period ended 30 June 2021, attributed to the impact of COVID-19 on consumption markets[49]. - The company reported a loss for the period of HK$44,945, compared to a profit of HK$14,521 in the prior year, indicating a significant downturn[164]. - Basic loss per share attributable to equity holders was (2.39) cents, compared to earnings of 0.54 cents in the previous year[159]. - Total comprehensive loss for the period amounted to HK$75,006, compared to a comprehensive income of HK$26,608 in the same period of 2021[166]. Expenses and Cost Management - Selling and distribution expenses increased by approximately HK$26.1 million or approximately 14.0% to approximately HK$212.1 million, primarily due to an increase in advertising and marketing expenses of approximately HK$25.5 million[49]. - Gross margin slightly increased from approximately 16.0% to approximately 16.2% due to a decrease in the purchase price of key raw materials, offset by higher supply chain and logistic costs[48]. - The Group will closely monitor production costs and explore opportunities in the growing Mattress-in-a-Box market to diversify its customer base[79]. Financial Position and Assets - Net current assets decreased to approximately HK$270.6 million as of 30 June 2022, down from approximately HK$377.7 million as of 31 December 2021[51]. - Bank balances and cash decreased by approximately HK$15.5 million or approximately 6.8% to approximately HK$213.0 million as of 30 June 2022[51]. - Total assets as of June 30, 2022, were HK$2,545,287, down from HK$2,828,870 at the end of 2021[171]. - Current assets decreased to HK$1,618,206 from HK$1,907,559 as of December 31, 2021[170]. - Non-current assets decreased to HK$927,081 from HK$921,311 as of December 31, 2021[169]. Liabilities and Financial Covenants - The Group experienced a potential breach of financial covenants under loan facilities, with an aggregate outstanding principal amount of approximately HK$216.6 million as of 30 June 2022[63]. - The Group successfully obtained waivers from banks for non-compliance with financial covenants amounting to HK$216,648,000[189]. - The Group failed to comply with financial covenants amounting to HKD 216,648,000 as of June 30, 2022, which could lead to immediate repayment of loans[191]. - Total liabilities decreased to HK$1,620,675,000 from HK$1,822,252,000 as of December 31, 2021, representing a reduction of approximately 11.0%[173]. - Current liabilities decreased significantly from HK$1,529,826,000 to HK$1,347,606,000, a decline of about 11.9%[173]. Cash Flow and Financing - Net cash used in operating activities amounted to approximately HK$28.6 million for the Reporting Period, compared to net cash generated of approximately HK$25.0 million for the six-month period ended 30 June 2021[52]. - Cash generated from operations was negative at HK$15,859,000, compared to HK$34,532,000 in the previous year[179]. - The Group's investing activities resulted in a net cash outflow of HK$3,340,000, a significant decrease from a cash inflow of HK$50,740,000 in the prior year[179]. - The Group has approximately HKD 394,977,000 in unused existing bank financing available for renewal after current contracts expire[194]. - The directors believe that continuous operating cash flow will be generated in the next twelve months due to the easing impact of COVID-19[198]. Shareholding Structure and Corporate Governance - LAM Chi Fan holds 1,275,906,000 shares, representing 72.91% of the total shareholding[90]. - The total number of shares issued by the company as of June 30, 2022, is 1,750,002,000[93]. - The company has a significant ownership structure, with Sinomax Enterprises Limited being owned 37.5% by Chi Fan Holding Limited, which is fully owned by The Frankie Trust[93]. - The company has maintained compliance with all provisions of the Corporate Governance Code during the reporting period[135]. - The audit committee reviewed the unaudited condensed consolidated financial information for the reporting period and recommended its adoption by the Board[144]. Future Outlook and Strategic Plans - The Group anticipates that demand for its products will recover as overstocking issues among US customers diminish, particularly for the Mattress-in-a-Box product[79]. - The Group plans to increase investment in relevant equipment and resources to meet rising demand in the US market[79]. - The Group does not have any other plans for material investments or capital assets beyond what is disclosed in the "Prospects" section[80]. - The Group has not disclosed any new product developments or market expansion strategies in the provided documents[98].

Financial Performance - Revenue for 2021 was HK$4,259,882, an increase of 31.8% from HK$3,231,701 in 2020[13]. - Gross profit for 2021 reached HK$716,953, representing a gross profit margin of 16.8%, down from 19.3% in 2020[13][16]. - Profit for the year attributable to owners of the Company was HK$15,305, a decrease of 73.9% compared to HK$58,523 in 2020[13]. - Total assets increased to HK$2,828,870, up from HK$2,514,210 in 2020, reflecting a growth of 12.5%[13]. - Net current assets rose to HK$377,733, compared to HK$273,137 in the previous year, indicating a growth of 38.4%[13]. - Earnings per share (basic) decreased to HK$0.87 from HK$3.34 in 2020, reflecting a significant decline[13]. - Profit for the Reporting Period amounted to approximately HK$31.4 million, a decrease from approximately HK$61.1 million for FY2020[39]. Dividends and Shareholder Returns - The final dividend per share for 2021 was HK$0.4, with a total dividend yield of 1.7%[13][16]. - The Group has proposed a final dividend of HK$0.4 cent per ordinary share, amounting to approximately HK$7,000,000 for the Reporting Period, subject to shareholder approval[21]. - The Group's accumulated profits available for distribution to shareholders amounted to approximately HK$533.4 million as of December 31, 2021, down from HK$537.1 million as of December 31, 2020[111]. - The Board recommended a final dividend of HK$0.4 cent per ordinary share, totaling approximately HK$7 million to shareholders[109]. Market Performance - Sales in the China market increased by approximately 34.7% for the Reporting Period, reflecting a recovery from the impacts of the COVID-19 epidemic[27]. - In the North American market, sales increased by approximately 14.7% due to the diversification of the customer base[28]. - Sales in Europe and other overseas markets surged by approximately 121.1%, driven by increased sales to customers in Vietnam[28]. Costs and Expenses - Selling and distribution costs increased by approximately HK$100.7 million or 31.5% to approximately HK$420.2 million compared to approximately HK$319.5 million for FY2020[37]. - The decrease in gross profit margin was attributed to rising raw material costs and significant increases in transportation costs during the Reporting Period[33]. Financial Health and Ratios - Unsecured bank borrowings increased to HK$588,273, up from HK$547,224 in 2020, marking an increase of 7.5%[13]. - The current ratio improved to 124.7%, compared to 119.9% in 2020, indicating better short-term financial health[16]. - The gearing ratio stood at 58.4%, slightly up from 57.2% in 2020, indicating a marginal increase in financial leverage[16]. - Net cash from operating activities for the Reporting Period was approximately HK$156.8 million, compared to approximately HK$114.7 million for FY2020[42]. - Bank balance and cash increased by approximately HK$91.6 million or approximately 66.9% to approximately HK$228.5 million as of 31 December 2021[42]. Strategic Initiatives - The Group plans to expand operations in the US to meet growing customer demand by entering into lease agreements for two new premises[25]. - The Group aims to strengthen its e-commerce sales channels in the PRC to enhance brand recognition and expand its sales network[27]. - Future strategies include exploring opportunities in the growing "Mattress-in-a-Box" market and diversifying the customer base to maintain market leadership[27]. Management and Governance - The company has a strong leadership team with over 20 years of experience in the polyurethane foam industry, including the chairman and executive director, Mr. Lin, who co-founded the group in 2000[77]. - The company is focused on expanding its market presence in the US through strategic sales and marketing initiatives led by Sinomax USA[81]. - The group is committed to maintaining high standards of corporate governance and financial transparency, as evidenced by the qualifications of its senior management[84]. - The management team is actively involved in strategic planning to navigate market challenges and capitalize on growth opportunities[90]. Connected Transactions - The Group had continuing connected transactions with certain connected persons during the reporting period[154]. - The independent non-executive Directors confirmed that the continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[187]. - The auditor issued unqualified letters regarding the Group's continuing connected transactions, confirming compliance with relevant regulations[188]. Lease Agreements - The monthly rental for the Dongguan Premises under the 2019-2021 Dongguan Lease Agreement was approximately RMB660,000[159]. - The 2022 Dongguan Lease Agreement has a monthly rental of approximately RMB1,330,000[159]. - The lease agreements are recognized as right-of-use assets in the Group's consolidated financial position as per HKFRS 16[199]. - The total rental commitments under these agreements indicate a strategic focus on securing operational capacity for future growth[198].

Revenue and Sales Performance - Revenue for the six-month period ended June 30, 2021, increased by approximately HK$911.3 million or approximately 83.6% to approximately HK$2,001.3 million compared to approximately HK$1,090.0 million for the corresponding period last year[49]. - Sales in the China market increased by approximately 88.1% for the period, reaching HK$1,041.2 million, compared to HK$553.6 million in the previous year[53]. - North American market sales increased by approximately 49.7% to HK$725.7 million, up from HK$484.6 million in the previous year[53]. - Sales in Europe and other overseas markets surged by approximately 353.5% to HK$234.4 million, compared to HK$51.7 million in the previous year[53]. Profitability and Gross Margin - The Group's gross profit increased by approximately HK$123.5 million or approximately 62.8% to approximately HK$320.3 million during the period, compared to approximately HK$196.8 million for the corresponding period last year[58]. - The gross profit margin decreased by 2.1% from approximately 18.1% to approximately 16.0% compared to the corresponding period last year[58]. - The decrease in gross profit margin was attributed to the increase in the purchase price of key raw materials and freight charges during the period[58]. - Gross profit increased by approximately HK$123.5 million or about 62.8% to approximately HK$320.3 million, compared to approximately HK$196.8 million in the same period last year[60]. - Gross margin decreased from approximately 18.1% to about 16.0%, attributed to rising raw material and transportation costs[60]. Expenses and Cost Management - Selling and distribution costs rose by approximately HK$50.8 million or about 37.6% to approximately HK$186.0 million, driven by increased advertising, transportation, and staff costs[62]. - Administrative expenses increased by approximately HK$25.4 million or about 35.6% to approximately HK$96.8 million, mainly due to higher staff costs[62]. Financial Position and Assets - Net current assets as of June 30, 2021, were approximately HK$372.4 million, up from approximately HK$273.1 million as of December 31, 2020[64]. - Bank balances and cash increased by approximately HK$75.8 million or about 55.4% to approximately HK$212.7 million compared to approximately HK$136.9 million as of December 31, 2020[64]. - The Group's capital expenditure for the period was approximately HK$22.8 million, primarily for purchasing plant and machinery[64]. - Current ratio improved to 125.3% as of June 30, 2021, compared to 119.9% as of December 31, 2020[68]. - Gearing ratio increased to 61.4% as of June 30, 2021, from 57.2% as of December 31, 2020[68]. Employee and Operational Insights - As of June 30, 2021, the employee headcount of the Group was 2,705, a decrease from 2,902 as of June 30, 2020[80]. - Total staff costs for the period amounted to approximately HK$248.3 million, compared to approximately HK$180.8 million for the six-month period ended June 30, 2020, reflecting an increase due to the resumption of normal salary levels[80]. - The Group is increasing production capacity in the US to meet the growing demand for its Mattress-in-a-Box product, which has seen encouraging demand from customers, particularly in the US[75]. - The Group entered into two lease agreements in the US to expand operations and meet customer demand, with more equipment and resources to be invested[75]. - The Group remains cautiously optimistic about future performance based on increasing customer demands and plans to explore opportunities in the growing Mattress-in-a-Box market[75]. Corporate Governance and Shareholding Structure - The Group's treasury policy aims to maintain adequate cash levels and banking facilities to support daily operations and short-term funding needs[75]. - No interim dividend was recommended for the period, consistent with the previous year[79]. - The Group has no other plans for material investments or capital assets beyond those disclosed in the "Prospects" section[77]. - The Group's employee incentive scheme includes promotions, salary raises, and monetary bonuses, along with a share option scheme[80]. - The shareholding percentage of LAM Chi Fan in Sinomax Enterprises is 37.5% based on 40 shares issued[97]. - The shareholding percentage of CHEUNG Tung in Sinomax Enterprises is 12.5% based on 40 shares issued[97]. - The shareholding percentage of CHEN Feng in Sinomax Enterprises is 12.5% based on 40 shares issued[97]. - The Frankie Trust, established by LAM Chi Fan, holds a significant interest in Sinomax Enterprises[97]. - The James' Family Trust owns 100% of The James' Family Holding Limited, which holds shares in Sinomax Enterprises[97]. Financial Performance and Cash Flow - Profit for the period amounted to approximately HK$14.5 million, a turnaround from a loss of approximately HK$34.9 million in the same period last year[62]. - The Company reported a total comprehensive income for the period of HK$19,698, compared to a total comprehensive loss of HK$34,705 in the previous period[177]. - Cash generated from operations was HK$34,595,000, compared to HK$6,672,000 in the same period of 2020, representing a significant increase[181]. - Net cash generated from operating activities was HK$14,084,000, a turnaround from a net cash used of HK$21,274,000 in the prior year[181]. - Cash flows from investing activities resulted in a net cash inflow of HK$50,740,000, up from HK$37,437,000 in the previous year[181]. Risk Management and Compliance - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[199]. - There have been no changes in the risk management policies since the year-end[199]. - The significant judgements made by management in applying the Group's accounting policies are consistent with those applied to the consolidated financial statements for the year ended December 31, 2020[197]. - The Group does not expect any significant impact from the newly adopted standards on the current or future periods[194]. - The Group's financial risk management information should be read in conjunction with the annual consolidated financial statements as of December 31, 2020[199].

Financial Performance - In 2020, Sinomax Group Limited reported a revenue of HKD 1.2 billion, representing a 10% increase compared to HKD 1.09 billion in 2019[24]. - The company's net profit for 2020 was HKD 150 million, which is a 15% increase from HKD 130 million in the previous year[24]. - Total assets increased to HKD 2.5 billion in 2020, up from HKD 2.3 billion in 2019, reflecting a growth of approximately 8.7%[24]. - The gross profit margin improved to 35% in 2020, compared to 32% in 2019, indicating enhanced operational efficiency[24]. - The Group's revenue increased by approximately HK$234.4 million or approximately 7.8% to approximately HK$3,231.7 million in 2020 compared to HK$2,997.3 million in 2019[48]. - Gross profit for the year was HK$623.8 million, up from HK$605.3 million in 2019, resulting in a gross profit margin of 19.3%[28]. - Profit before tax improved to HK$69.0 million in 2020 from a loss of HK$146.0 million in 2019[1]. - The Group reported a profit for the year of HK$61.1 million, a significant turnaround from a loss of HK$212.0 million in 2019[1]. - Return on net assets improved to 6.4% in 2020 from a negative 24.5% in 2019, reflecting better profitability[28]. Market Expansion and Strategy - Sinomax Group's user base expanded by 20% year-on-year, reaching 1.5 million active users in 2020[24]. - The company plans to launch three new product lines in 2021, focusing on eco-friendly materials and smart technology integration[24]. - Sinomax Group is exploring market expansion opportunities in Southeast Asia, targeting a 25% increase in market share by 2023[24]. - The management has provided a revenue guidance of HKD 1.5 billion for 2021, projecting a growth rate of 25%[24]. - The Group aims to enhance brand recognition and expand its sales network in China through strengthened e-commerce channels[32]. - The Group plans to increase production capacity to meet growing demands for both traditional and online sales, particularly for Mattress-in-a-Box (MIB) products[32]. - The Group is focused on expanding its market presence in the US through strategic sales and marketing initiatives led by Mr. Chen[98]. Operational Efficiency - The Group's current ratio improved to 119.9% in 2020 from 108.4% in 2019, indicating better short-term financial health[28]. - Selling and distribution costs decreased by approximately HK$74.2 million or 18.8% to approximately HK$319.5 million compared to approximately HK$393.7 million for FY2019[58]. - Administrative expenses decreased by approximately HK$33.7 million or 14.3% to approximately HK$202.4 million compared to approximately HK$236.1 million for FY2019[58]. - The Group's capital expenditure for the Reporting Period was approximately HK$29.4 million, a significant decrease of about 58.1% from HK$70.2 million in FY2019[65]. - The Group has increased resources to develop a more diversified customer base through online sales, with sales starting to increase since Q2 2020[85]. - The Group is closely monitoring the rising prices of key materials, particularly in the US market, and may discuss cost transfers to customers as necessary[85]. Leadership and Management - The Group's management team includes experienced professionals with backgrounds in technology, finance, and sales, enhancing its operational capabilities[96]. - The Group's leadership includes family ties, with several executives related, which may influence corporate governance and strategic decisions[93][99]. - The company has a strong educational background among its executives, with degrees from reputable institutions such as the Hong Kong University of Science and Technology and Louisiana State University[98][99]. - The Group's strategic direction is shaped by its founders and experienced executives, ensuring continuity and expertise in its operations[94]. - The management structure reflects a commitment to corporate governance and effective oversight through independent directors[111]. Shareholding and Governance - The Group's accumulated profits available for distribution to shareholders amounted to approximately HK$537.1 million as of December 31, 2020, compared to HK$541.2 million as of December 31, 2019[149]. - The Group made charitable and other donations totaling approximately HK$161,000 during the Reporting Period[142]. - No final dividend was recommended by the Directors for the Reporting Period[134]. - The Directors consider all independent non-executive Directors to be independent according to the Listing Rules[153]. - The company has a share option scheme, details of which are provided in the Directors' Report[149]. - The interests of the Directors in the shares of the company include beneficial ownerships of 1,500,000 shares by CHEUNG Tung and 1,000,000 shares by CHEN Feng, LAM Fei Man, and LAM Kam Cheung, each representing approximately 0.09% and 0.06% of the total shares respectively[161]. - The company maintains a strong family trust structure, which plays a significant role in its governance and control[176]. Connected Transactions - The Group has ongoing connected transactions with certain connected persons, which are disclosed in the announcements dated December 18, 2020, December 24, 2020, and December 29, 2020[181]. - The annual cap for continuing connected transactions under the 2019-2020 Studio Moderna Procurement Agreement was set at USD30 million for each year[192]. - Total sales to Studio Moderna for the year ended 31 December 2020 amounted to approximately USD3.0 million, equivalent to approximately HK$23.4 million[192]. - The procurement agreements with Gu Jia Household and its subsidiaries have been in place since 2016, indicating a long-term business relationship[194]. - The Group's continuing connected transactions are exempt from certain reporting and shareholders' approval requirements under Chapter 14A of the Listing Rules[181].