[Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group's revenue for the six months ended June 30, 2025, was HK$362,235 thousand, a 5.9% decrease year-on-year, with profit for the period at HK$30,405 thousand, down 29.1%, and basic and diluted earnings per share at HK cents 2.44 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 362,235 | 385,093 | | Cost of sales | (266,876) | (277,380) | | Gross profit | 95,359 | 107,713 | | Other income | 8,563 | 7,537 | | Net other gains and losses | (334) | 2,716 | | Selling and distribution expenses | (21,117) | (19,744) | | Administrative expenses | (40,405) | (37,017) | | Finance costs | (6,968) | (7,297) | | Profit before tax | 35,098 | 53,908 | | Income tax expense | (4,693) | (11,002) | | Profit for the period | 30,405 | 42,906 | | Profit for the period attributable to owners of the Company | 30,443 | 42,906 | | Basic and diluted earnings per share (HK cents) | 2.44 | 3.43 | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets less current liabilities were HK$823,869 thousand, a decrease from HK$857,402 thousand as of December 31, 2024, with net assets at HK$796,705 thousand and net current assets at HK$599,118 thousand Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 138,619 | 128,849 | | Right-of-use assets | 75,386 | 75,385 | | Lease deposits | 5,674 | 5,608 | | Deferred tax assets | 5,072 | 3,465 | | **Current assets** | | | | Inventories | 243,931 | 133,457 | | Trade and other receivables | 59,447 | 105,205 | | Financial assets at fair value through other comprehensive income | 20,038 | 74,873 | | Financial assets at fair value through profit or loss | 115,878 | 111,110 | | Bank balances and cash | 451,829 | 418,507 | | **Current liabilities** | | | | Trade and other payables | 241,209 | 182,633 | | Lease liabilities | 2,541 | 1,795 | | Bank borrowings | 33,213 | - | | Tax payable | 15,042 | 14,629 | | **Non-current liabilities** | | | | Deferred tax liabilities | 14 | 12 | | Lease liabilities | 27,150 | 27,713 | | **Net assets** | 796,705 | 829,677 | | **Equity attributable to owners of the Company** | 793,233 | 829,677 | | **Non-controlling interests** | 3,472 | - | [Notes to the Condensed Consolidated Interim Financial Statements](index=4&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the condensed consolidated interim financial statements, covering preparation basis, accounting policy changes, revenue segmentation, income tax, profit for the period, dividends, earnings per share, receivables, payables, and contingent liabilities [1. Basis of Preparation](index=4&type=section&id=1.%20Basis%20of%20Preparation) This section outlines the basis for preparing the condensed consolidated interim financial results, adhering to HKEX Listing Rules and consistent accounting policies with the prior year, except for new standards - The condensed consolidated interim financial results are prepared in accordance with the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[8](index=8&type=chunk) - The accounting policies and methods of computation used are consistent with those adopted in the Group's 2024 annual financial statements, except for the adoption of new and revised standards effective from January 1, 2025[8](index=8&type=chunk) - Financial information for the fiscal year ended December 31, 2024, is derived from the statutory financial statements, for which the auditor issued an unmodified opinion report on March 31, 2025[8](index=8&type=chunk) [2. Changes in Accounting Policies](index=4&type=section&id=2.%20Changes%20in%20Accounting%20Policies) This section details the adoption of new and revised accounting standards, specifically HKAS 21 (Amendment) 'Lack of Exchangeability', and their non-significant impact on the Group's financial position and performance - HKAS 21 (Amendment) "Lack of Exchangeability" was first applied during this interim period[9](index=9&type=chunk) - The application of the amendments to Hong Kong Financial Reporting Standards has not had a significant impact on the Group's financial position and performance for the current and prior periods[9](index=9&type=chunk) [3. Revenue and Segment Information](index=4&type=section&id=3.%20Revenue%20and%20Segment%20Information) This section provides details on the Group's revenue sources, primarily from sleepwear, loungewear, grey fabric manufacturing, and processing services, with a single reportable segment and geographical breakdown - Revenue primarily derived from sleepwear products, loungewear products, grey fabric manufacturing and sales, and processing services[10](index=10&type=chunk) - The Group has only one reportable segment, based on consolidated results presented to the chief operating decision maker[10](index=10&type=chunk) Revenue Recognition Timing (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Sale of products (sleepwear products, loungewear products and grey fabric) | 362,235 | 385,093 | | At a point in time | 362,235 | 385,093 | Geographical Information - Revenue from External Customers (For the six months ended June 30) | Region | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | United States | 223,409 | 250,169 | | Ireland | 55,086 | 57,632 | | United Kingdom | 48,799 | 45,817 | | Spain | 17,493 | 16,912 | | Canada | 16,054 | 7,006 | | Latin America | 1,214 | 650 | | China | 157 | 6,907 | | Honduras | 23 | - | | **Total** | **362,235** | **385,093** | Revenue from Major Customers (For the six months ended June 30) | Customer | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Customer A | 218,818 | 246,654 | | Customer B | 125,969 | 123,876 | [4. Income Tax Expense](index=6&type=section&id=4.%20Income%20Tax%20Expense) This section details the Group's income tax expense, including current and deferred tax, and outlines the applicable tax rates for its operations in Hong Kong, China, Cambodia, Vietnam, and Honduras Income Tax Expense (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Current tax | 6,302 | 12,322 | | Deferred tax | (1,609) | (1,320) | | **Total** | **4,693** | **11,002** | - Hong Kong profits tax operates under a two-tiered system, with a tax rate of **8.25%** on the first HK$2,000,000 of assessable profits and **16.5%** on profits above this threshold[16](index=16&type=chunk) - Chinese subsidiaries are subject to a corporate income tax rate of **25%**, with a **5%** withholding tax on profits distributed to the Hong Kong holding company[17](index=17&type=chunk) - Cambodian and Vietnamese subsidiaries are subject to an income tax rate of **20%**, while the Honduran subsidiary is subject to an income tax rate of **25%**[18](index=18&type=chunk)[19](index=19&type=chunk)[20](index=20&type=chunk) [5. Profit for the Period](index=7&type=section&id=5.%20Profit%20for%20the%20Period) This section details the components of profit for the period, specifically highlighting depreciation expenses for property, plant, and equipment, right-of-use assets, and short-term lease expenses Items Included in Profit for the Period (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 7,383 | 6,656 | | Depreciation of right-of-use assets | 2,397 | 2,275 | | Expenses relating to short-term leases | 980 | 900 | [6. Interim Dividend](index=7&type=section&id=6.%20Interim%20Dividend) This section states that no interim dividend was paid or declared for the six months ended June 30, 2025, while noting the final dividend declared for the year ended December 31, 2024 - No interim dividend was paid or declared by the Company for the six months ended June 30, 2025 (2024: nil)[22](index=22&type=chunk) - The Board declared a final dividend of **HK$0.056** per share (2024: HK$0.0485 per share), totaling approximately **HK$70,000,000** (2024: HK$60,600,000), for the year ended December 31, 2024[22](index=22&type=chunk) [7. Earnings Per Share](index=8&type=section&id=7.%20Earnings%20Per%20Share) This section details the calculation of basic earnings per share, based on profit attributable to owners and the weighted average number of ordinary shares, noting the absence of potential ordinary shares Earnings Per Share Calculation (For the six months ended June 30) | Item | 2025 (HK$ thousand/thousand shares) | 2024 (HK$ thousand/thousand shares) | | :--- | :--- | :--- | | Profit for the purpose of calculating basic earnings per share | 30,443 | 42,906 | | Weighted average number of ordinary shares for basic earnings per share | 1,250,000 | 1,250,000 | - There were no potential ordinary shares issued for the six months ended June 30, 2025 and 2024, thus basic and diluted earnings per share are identical[23](index=23&type=chunk) [8. Trade and Other Receivables](index=8&type=section&id=8.%20Trade%20and%20Other%20Receivables) This section provides a breakdown of trade and other receivables, including an aging analysis of trade receivables, and outlines the Group's credit policy Trade and Other Receivables (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables, net | 37,263 | 42,572 | | Prepayments | 8,273 | 16,317 | | Prepayments to import and export companies | 460 | 34,694 | | Deposits | 101 | 327 | | Other taxes recoverable | 9,793 | 9,992 | | Other receivables, net | 3,557 | 1,303 | | **Total** | **59,447** | **105,205** | Aging Analysis of Trade Receivables (As of June 30) | Aging | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 19,878 | 24,346 | | 31 to 60 days | 12,963 | 15,321 | | 61 to 90 days | 4,418 | 2,531 | | Over 90 days | 4 | 374 | | **Total** | **37,263** | **42,572** | - The Group provides a credit period of **0 to 120 days** for its trade receivables[24](index=24&type=chunk) [9. Trade and Other Payables](index=9&type=section&id=9.%20Trade%20and%20Other%20Payables) This section details the Group's trade and other payables, including an aging analysis of trade payables, and specifies the credit period for goods purchased Trade and Other Payables (As of June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 88,159 | 80,485 | | Prepayments and payables for purchases from import and export companies | 20,166 | 30,471 | | Accrued expenses | 48,281 | 63,694 | | Dividends payable | 70,000 | - | | Other taxes payable | 7,623 | 4,219 | | Payables for acquisition of property, plant and equipment | 1,193 | 1,207 | | Other payables | 5,787 | 2,557 | | **Total** | **241,209** | **182,633** | Aging Analysis of Trade Payables (As of June 30) | Aging | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 72,892 | 73,435 | | 31 to 60 days | 8,033 | 6,648 | | 61 to 90 days | 4,406 | 137 | | Over 90 days | 2,828 | 265 | | **Total** | **88,159** | **80,485** | - The credit period for goods purchased is **0 to 90 days** from the invoice date[25](index=25&type=chunk) [10. Contingent Liabilities](index=9&type=section&id=10.%20Contingent%20Liabilities) This section confirms that the Group had no significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Group had no significant contingent liabilities (2024: nil)[26](index=26&type=chunk) [Management Discussion and Analysis](index=10&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's business review, financial performance, future outlook, financial resources, liquidity, and corporate governance, highlighting strategies for diversification and market expansion amidst global economic challenges [Business Review](index=10&type=section&id=Business%20Review) This section outlines the Group's core OEM apparel manufacturing business, its vertically integrated operations, and strategic initiatives for production base diversification and market expansion - The Group is primarily engaged in OEM apparel manufacturing, specializing in sleepwear and loungewear products, operating a vertically integrated business[27](index=27&type=chunk) - Production facilities are located in Henan Province, China, Phnom Penh, Cambodia, and Honduras, with production also carried out through subcontractors in Vietnam, and a representative office in the US to enhance design and pre/post-sales activities[27](index=27&type=chunk) - Facing global economic uncertainties, the Group maintains a diversified production base strategy, with a new factory in Cambodia commencing trial operations in the first half of 2025, and new bases under construction in Vietnam and Kenya[28](index=28&type=chunk) - Revenue from **Customer B** grew steadily by approximately **1.7%** to **HK$126,000,000**; combined revenue from Europe and Canada increased by approximately **7.9%** to **HK$137,400,000**, increasing their contribution to total revenue from **33.1%** to **37.9%**[28](index=28&type=chunk) [Financial Review](index=10&type=section&id=Financial%20Review) This section provides a detailed analysis of the Group's financial performance, covering revenue, gross profit, other income, expenses, and profit attributable to owners, along with key factors influencing these metrics - For the six months ended June 30, 2025, the Group's revenue slightly decreased by approximately **5.9%**, gross profit margin decreased by **1.7%**, and net profit margin decreased by **2.7%**[29](index=29&type=chunk) - The trial operation of the new Cambodian factory and ongoing improvements in operational efficiency at the Honduran factory led to increased production costs and a lower gross profit margin[29](index=29&type=chunk) - Additional staff employment for operating new factories and constructing new production bases increased administrative expenses, reducing profit attributable to owners of the Company[29](index=29&type=chunk) [Revenue](index=10&type=section&id=Revenue%20(MD%26A)) This section reports the Group's revenue for the six months ended June 30, 2025, noting a slight decrease compared to the prior year - For the six months ended June 30, 2025, the Group's revenue was approximately **HK$362,200,000**, a decrease of approximately **5.9%** compared to the same period in 2024[30](index=30&type=chunk) [Gross Profit](index=11&type=section&id=Gross%20Profit) This section details the Group's gross profit and average gross profit margin for the first half of 2025, explaining the factors contributing to the decline - Gross profit for the first half of 2025 was approximately **HK$95,400,000**, with an average gross profit margin of approximately **26.3%**, a decrease from **HK$107,700,000** and **28.0%** in the same period of 2024[31](index=31&type=chunk) - The decline in gross profit margin was primarily due to relatively higher production costs from the trial operation of the new Cambodian factory and ongoing improvements in operational efficiency at the Honduran factory[31](index=31&type=chunk) [Other Income](index=11&type=section&id=Other%20Income) This section highlights the increase in other income for the six months ended June 30, 2025, primarily driven by higher interest income from bank deposits - For the six months ended June 30, 2025, other income was approximately **HK$8,600,000**, an increase from approximately **HK$7,500,000** in the same period of 2024[32](index=32&type=chunk) - The increase was mainly due to an increase in interest income of approximately **HK$1,300,000** resulting from higher bank deposit amounts[32](index=32&type=chunk) [Other Gains and Losses](index=11&type=section&id=Other%20Gains%20and%20Losses) This section reports a net other loss for the six months ended June 30, 2025, primarily due to losses on market-traded bonds and funds, and reduced foreign exchange gains - For the six months ended June 30, 2025, a net other loss of approximately **HK$300,000** was recorded, compared to a gain of approximately **HK$2,700,000** in the same period of 2024[33](index=33&type=chunk) - This was primarily due to realized and unrealized losses of **HK$400,000** on market-traded bonds and fund investments (compared to a gain of HK$1,300,000 in 2024) and a decrease in foreign exchange gains of approximately **HK$1,300,000**[33](index=33&type=chunk) [Selling and Distribution Expenses](index=11&type=section&id=Selling%20and%20Distribution%20Expenses) This section details the increase in selling and distribution expenses, primarily attributed to higher transportation costs for raw materials and increased air freight demand due to tariff disruptions - Selling and distribution expenses were approximately **HK$21,100,000**, an increase of **7%** compared to the same period in 2024[34](index=34&type=chunk) - The increase was mainly due to higher transportation costs, including increased volume of raw materials shipped from Asia to the Honduran production base, rising average shipping fees, and increased demand for air freight due to tariff disruptions[34](index=34&type=chunk) [Administrative Expenses](index=11&type=section&id=Administrative%20Expenses) This section explains the increase in administrative expenses, driven by the Group's expansion of operations, including new factory trials and production base constructions, leading to additional staff employment - Administrative expenses were approximately **HK$40,400,000**, an increase of approximately **HK$3,400,000** compared to the same period in 2024[35](index=35&type=chunk) - The increase was primarily due to the Group's continuous expansion of operations, including the trial operation of the new Cambodian factory, ongoing operations at the Honduran factory, and the construction of new production bases in Vietnam and Kenya, leading to additional staff employment[35](index=35&type=chunk) [Finance Costs](index=11&type=section&id=Finance%20Costs) This section reports a decrease in finance costs, mainly due to reduced trade finance interest expenses, partially offset by increased lease liability interest from new factory leases - Finance costs were approximately **HK$6,900,000**, a decrease from **HK$7,300,000** in the same period of 2024[36](index=36&type=chunk) - Trade finance interest expenses decreased by approximately **HK$1,400,000**, mainly due to reduced financing amounts resulting from lower revenue and interest rate cuts by the US Federal Reserve[36](index=36&type=chunk) - Lease liability interest increased, primarily due to new leases for the Cambodian and Kenyan factories[36](index=36&type=chunk) [Profit Attributable to Owners of the Company](index=12&type=section&id=Profit%20Attributable%20to%20Owners%20of%20the%20Company) This section reports a significant decrease in profit attributable to owners of the Company, primarily due to reduced revenue, lower gross profit margins, and increased operating expenses - Profit attributable to owners of the Company decreased by approximately **29.1%** from approximately **HK$42,900,000** in the same period of 2024 to approximately **HK$30,400,000** in the same period of 2025[37](index=37&type=chunk) - The decrease in net profit was mainly due to the aforementioned decline in revenue, lower gross profit margin, and increased expenses[37](index=37&type=chunk) [Receivables and Payables](index=12&type=section&id=Receivables%20and%20Payables) This section details the changes in trade and other receivables and payables, attributing the decrease in receivables to reduced reliance on import/export companies and the increase in payables to higher trade payables and declared dividends - As of June 30, 2025, trade and other receivables were approximately **HK$59,400,000**, lower than approximately **HK$105,200,000** as of December 31, 2024[38](index=38&type=chunk) - The decrease in receivables was mainly due to reduced reliance on import and export companies and timely receipt of raw materials[38](index=38&type=chunk) - Trade and other payables were approximately **HK$241,200,000**, an increase of approximately **HK$58,600,000** compared to 2024, primarily due to increased trade payables and the recognition of dividends payable of approximately **HK$70,000,000**[38](index=38&type=chunk) [Prospects](index=12&type=section&id=Prospects) This section outlines the Group's future strategies, including stabilizing existing businesses, expanding production bases in Vietnam and Kenya, diversifying customer base, and developing its own brand, while monitoring new tariff regulations - The Group aims to achieve stable growth in its existing businesses while planning future expansion to seize business opportunities once global and domestic demand regains resilience[39](index=39&type=chunk) - Management will closely monitor new tariff laws and regulations, integrate production facility resources in Henan Province, and evaluate new business opportunities[39](index=39&type=chunk) - The Honduran production facility will continue to help shorten delivery times to American customers and diversify political risks, while the new Cambodian factory will continue to improve operational efficiency, expected to reach optimal capacity within 2025[39](index=39&type=chunk) - The Vietnamese apparel production base is expected to have a monthly capacity of approximately **2,000,000** pieces, targeting initial trial production in 2026; the new Kenyan base aims for initial trial production in the first half of 2026 to increase capacity, diversify bases, reduce costs, and shorten delivery times to European customers[40](index=40&type=chunk) - The Group will continue to diversify its customer base and the geographical distribution of customer demand, with an anticipated increase in procurement orders from European customers[41](index=41&type=chunk) - Initial activities for the first own brand (COZ) continued during the period, with plans to gradually develop and promote this new brand[41](index=41&type=chunk) [Financial Resources and Liquidity](index=13&type=section&id=Financial%20Resources%20and%20Liquidity) This section provides an overview of the Group's financial position, including current assets, liabilities, liquidity ratio, cash and bank balances, foreign exchange hedging, and investments in market-traded bonds and funds - As of June 30, 2025, current assets were approximately **HK$891,100,000**, current liabilities were approximately **HK$292,000,000**, and the current ratio was approximately **3.05** (December 31, 2024: 4.24)[42](index=42&type=chunk) - Cash and bank balances were approximately **HK$451,800,000**, comprising approximately **16.2%** HKD, **8.8%** RMB, **69.9%** USD, and **5.1%** other currencies[42](index=42&type=chunk) - The Group entered into foreign exchange option contracts to hedge exchange rate risk between RMB and HKD, totaling approximately **HK$32,000,000**[42](index=42&type=chunk) - As of June 30, 2025, the Group held **11** sets of market-traded bond instruments with a total principal of approximately **US$6,250,000** (approximately **HK$48,800,000**) and a market value of approximately **US$2,300,000** (approximately **HK$17,700,000**), recording an unrealized loss of approximately **HK$1,800,000**[44](index=44&type=chunk) - As of June 30, 2025, the Group held **10** sets of funds with a total principal of approximately **US$12,800,000** (approximately **HK$99,600,000**) and a market value of approximately **US$12,600,000** (approximately **HK$98,200,000**), recording realized gains and unrealized gains of approximately **HK$100,000** and **HK$1,300,000**, respectively[45](index=45&type=chunk) [Material Acquisitions and Disposals](index=14&type=section&id=Material%20Acquisitions%20and%20Disposals) This section confirms that the Group did not undertake any material acquisitions or disposals during the six months ended June 30, 2025 - The Group had no material acquisitions and disposals during the six months ended June 30, 2025[47](index=47&type=chunk) [Material Investments](index=14&type=section&id=Material%20Investments) This section states that, apart from those mentioned in financial resources, the Group had no other material investments during the six months ended June 30, 2025 - Save as disclosed in the "Financial Resources and Liquidity" section, the Group had no other material investments during the six months ended June 30, 2025[48](index=48&type=chunk) [Contingent Liabilities (MD&A)](index=14&type=section&id=Contingent%20Liabilities%20(MD%26A)) This section confirms that the directors were not aware of any significant contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Directors were not aware of any significant contingent liabilities[49](index=49&type=chunk) [Events After the Reporting Period](index=14&type=section&id=Events%20After%20the%20Reporting%20Period) This section notes the payment of a HK$70 million dividend after the reporting period and confirms no other significant post-reporting period events affecting the Group's future operations - The Company paid a dividend of approximately **HK$70,000,000** on July 9, 2025[50](index=50&type=chunk) - Save as disclosed above and in this announcement, no other significant events after June 30, 2025, occurred that might materially affect the Group's future operations, assets, and liabilities[50](index=50&type=chunk) [Purchase, Sale or Redemption of Shares](index=14&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Shares) This section confirms that neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities of the Company during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the six months ended June 30, 2025[51](index=51&type=chunk) [Employees and Remuneration Policy](index=14&type=section&id=Employees%20and%20Remuneration%20Policy) This section provides details on the Group's employee count and remuneration policy, which is based on performance and experience, including benefits like medical insurance, retirement plans, and training - As of June 30, 2025, the Group employed **1,916** staff and workers (December 31, 2024: 2,028)[52](index=52&type=chunk) - Employee remuneration is determined based on performance and experience, reviewed regularly, and benefits include medical insurance, retirement schemes, training, and share option schemes[52](index=52&type=chunk) [Directors' Interests in Transactions, Arrangements or Contracts](index=15&type=section&id=Directors'%20Interests%20in%20Transactions%2C%20Arrangements%20or%20Contracts) This section confirms that, apart from service contracts, no significant contracts in which directors had a material interest were entered into or remained in effect during the review period - Save for the service contracts and letters of appointment with each Director, neither the Company nor any of its subsidiaries entered into any material contracts in which a Director had a direct or indirect material interest that was subsisting at the end of the review period or at any time during the year[54](index=54&type=chunk) [Standard Code for Securities Transactions](index=15&type=section&id=Standard%20Code%20for%20Securities%20Transactions) This section confirms the Company's adoption and directors' compliance with the Standard Code for Securities Transactions as set out in Appendix C3 of the Listing Rules - The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules and confirms that the Directors have complied with all relevant requirements during the six months ended June 30, 2025[55](index=55&type=chunk) [Corporate Governance Code](index=15&type=section&id=Corporate%20Governance%20Code) This section confirms the Company's compliance with the Corporate Governance Code, noting a deviation where the Chairman and CEO roles are held by the same individual for consistent leadership - For the six months ended June 30, 2025, the Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix C1 of the Listing Rules[56](index=56&type=chunk) - One deviation exists: the roles of Chairman and Chief Executive Officer are held by the same individual (Mr. Tam Kwok Pui), an arrangement the Board believes ensures consistent leadership and efficient strategic planning[56](index=56&type=chunk) [Interim Dividend (MD&A)](index=15&type=section&id=Interim%20Dividend%20(MD%26A)) This section states that the Board of Directors does not recommend paying any interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: nil)[57](index=57&type=chunk) [Audit Committee](index=16&type=section&id=Audit%20Committee) This section identifies the members of the Audit Committee, chaired by Mr. Mak King Sau, and confirms its review of the Group's unaudited condensed consolidated interim financial statements - The Audit Committee is chaired by Mr. Mak King Sau, an independent non-executive Director, with members including Mr. Wu Chun Fai and Ms. Lau Chun Ni[58](index=58&type=chunk) - The Committee has reviewed the Group's unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025[58](index=58&type=chunk) [Remuneration Committee](index=16&type=section&id=Remuneration%20Committee) This section identifies the members of the Remuneration Committee, chaired by Ms. Lau Chun Ni, including an executive director and an independent non-executive director - The Remuneration Committee is chaired by Ms. Lau Chun Ni, an independent non-executive Director, with members including Mr. Tam Kwok Pui, an executive Director, and Mr. Mak King Sau, an independent non-executive Director[59](index=59&type=chunk) [Nomination Committee](index=16&type=section&id=Nomination%20Committee) This section identifies the members of the Nomination Committee, chaired by Mr. Tam Kwok Pui, including two independent non-executive directors - The Nomination Committee is chaired by Mr. Tam Kwok Pui, an executive Director, with members including Mr. Wu Chun Fai and Mr. Mak King Sau, both independent non-executive Directors[60](index=60&type=chunk) [Publication of Interim Results and Interim Report](index=16&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report) This section specifies that the interim results announcement will be published on the HKEX and Company websites, and the interim report will be dispatched to shareholders and published online in due course - The interim results announcement will be published on the HKEX website (www.hkexnews.hk) and the Company's website (www.justinallengroup.com)[61](index=61&type=chunk) - The Company's interim report for the six months ended June 30, 2025, will be dispatched to shareholders and published on the Company's and HKEX websites in due course[61](index=61&type=chunk)

於開曼群島註冊成立的有限公司 (股份代號: 01425) 董事會召開日期 捷隆控股有限公司(「本公司」)之董事會(「董事會」)謹此宣佈，本公司將於二零二五 年八月二十九日(星期五)舉行董事會會議，藉以(其中包括)考慮及批准本公司及其附屬 公司截至二零二五年六月三十日止六個月之未經審核中期業績以及其他事項(如有)。 承董事會命 捷隆控股有限公司 主席 談國培 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，並明確表示概不會就本公佈全部或任何部分內容而 產生或因依賴該等內容而引致之任何損失承擔任何責任。 JUSTIN ALLEN HOLDINGS LIMITED 捷 隆 控 股 有 限 公 司 ( ) 於本公告日期，董事會由三名本公司之執行董事談國培先生、楊淑歡女士及呂浩明先 生，及三名本公司之獨立非執行董事胡振輝先生、麥敬修先生及劉珍伲女士組成。 香港，二零二五年八月十五日 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 捷隆控股有限公司 呈交日期: 2025年8月1日 FF301 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01425 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 1,250,000,000 | | 0 | | 1,250,000,000 | | 增加 / 減少 (-) | | | | | | | | | | 本月底結存 | | | | 1,250,000,000 | | 0 | | 1,250,000,000 | 第 2 頁 共 10 頁 v 1.1.1 I. 法定/註冊股本變動 | 1. 股 ...

Group 1 - The London Metal Exchange (LME) reported various changes in registered and canceled warehouse receipts for different metals [1] - Copper registered receipts totaled 127,475 tons, with canceled receipts decreasing by 2,700 tons to 14,275 tons [1] - Aluminum registered receipts stood at 449,300 tons, with canceled receipts decreasing by 525 tons to 13,500 tons [1] - Nickel registered receipts were at 198,948 tons, with canceled receipts decreasing by 144 tons to 10,134 tons [1] - Zinc registered receipts amounted to 57,075 tons, with canceled receipts decreasing by 3,975 tons to 43,750 tons [1] - Lead registered receipts reached 201,425 tons, with canceled receipts increasing by 1,550 tons to 73,900 tons [1] - Tin registered receipts were at 1,415 tons, with canceled receipts decreasing by 45 tons to 535 tons [1]

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately HKD 1,068,000,000, a decrease of about 4.1% compared to the previous year[11]. - Profit attributable to the company's owners decreased by approximately 2.9% from HKD 175,400,000 in 2023 to HKD 170,400,000 in 2024, primarily due to a reduction in gross profit[18]. - The gross profit for 2024 was approximately HKD 321,600,000, with a gross profit margin of about 30.1%, down from 31.9% in 2023, reflecting a decline of 1.8%[12]. - The company reported a profit of HKD 170,373,000 for the year ended December 31, 2024, compared to HKD 175,420,000 in 2023, a decrease of approximately 2.4%[191]. - The company reported a total comprehensive income of HKD 164,618,000 for 2024, down from HKD 171,781,000 in 2023[187]. - The company's net asset value increased to HKD 829,677,000 in 2024, up from HKD 725,684,000 in 2023, representing a growth of approximately 14.3%[190]. - The company paid dividends totaling HKD 60,625,000 in 2024, compared to HKD 55,000,000 in 2023, representing an increase of approximately 10.3%[191]. Sales and Revenue Breakdown - Sales of sleepwear products increased by approximately 10.1% to about HKD 726,400,000, while sales of loungewear products decreased by approximately 26.1% to HKD 326,200,000[8]. - Revenue from product sales (sleepwear, loungewear, and grey fabric) for the year ending December 31, 2024, was approximately HKD 1,065,131,000 and HKD 2,699,000 from processing services[172]. - Revenue from customer B increased by approximately 60.6%, and revenue from Europe (UK and Ireland) rose by about 61.0% in 2024[8]. - The sales revenue for the year 2024 was approximately HKD 1,070,000,000, with sales claims amounting to about HKD 285,000[166]. Expenses and Cost Management - Sales and distribution expenses were approximately HKD 52,200,000, a decrease of about 6.2% from HKD 55,700,000 in 2023, with the expense ratio declining from about 5.0% to 4.9%[15]. - Administrative expenses for the year were approximately HKD 69,100,000, a slight increase of about 1.5% from HKD 68,100,000 in 2023, attributed to the expansion of operations[16]. - The group recorded financial expenses for 2024 of approximately HKD 19,200,000, an increase from HKD 18,100,000 in 2023, with a decrease in trade financing interest of about HKD 1,800,000[17]. - The company reported a 10% reduction in operational costs due to improved supply chain management[110]. Investments and Future Plans - The company plans to establish production bases in Africa, Central America, and Vietnam to capitalize on upcoming demand recovery opportunities[9]. - The new garment production facility in Vietnam is expected to have a monthly capacity of approximately 2,000,000 pieces, with initial trial production targeted for the end of 2025[22]. - A new garment production base is planned in Kenya, aimed at increasing production capacity and reducing delivery times to European customers, with initial trial production expected in the second half of 2025[22]. - The group aims to stabilize growth in existing businesses while planning future expansions to capture opportunities as global and domestic demand rebounds[20]. - The company is investing $10 million in research and development for sustainable materials, aiming to reduce production costs by 15%[110]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, with the exception that the roles of Chairman and CEO are held by the same individual, Mr. Tan Guopei[114]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balance between executive and non-executive members[116]. - The company has complied with the standards for securities trading by directors, confirming adherence to the established code[115]. - The board has confirmed the effectiveness of the risk management and internal control systems for the fiscal year ending December 31, 2024, with no significant issues identified[133]. Environmental Sustainability - The group emphasizes environmental sustainability through initiatives like water conservation and recycling[37]. - The company aims to reduce greenhouse gas emissions by 5% in the next reporting period[151]. - The company has implemented measures to monitor and gradually reduce energy consumption and emissions[148]. - The company has reported direct greenhouse gas emissions totaling 22,340.70 tons of CO2 equivalent, with an intensity of 11.02 tons per employee[149]. - The company plans to establish new production facilities in Vietnam and Kenya with environmentally friendly energy solutions[151]. Employee and Labor Relations - The group employed 2,028 staff members as of December 31, 2024, with 100% being full-time employees[157]. - The average employee turnover rate was 6.54% for males and 4.71% for females[159]. - The average training hours per employee were 4.32 hours for males and 2.60 hours for females[163]. - The group actively promotes a fair and harmonious employment environment, ensuring compliance with local labor laws[158]. Risk Management - The company has implemented measures to identify and prioritize significant risks based on their potential financial impact and operational efficiency[133]. - The annual review of risk management and internal control systems includes assessments of significant risks and the company's response capabilities[133]. - The board is responsible for evaluating and determining ESG-related risks and ensuring the establishment of effective ESG risk management systems[143].

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 1,067,830, a decrease of 4.2% compared to HKD 1,114,213 in 2023[3] - Gross profit for the year was HKD 321,590, down 9.5% from HKD 355,187 in the previous year[3] - Net profit for the year was HKD 170,373, a decrease of 3.3% from HKD 177,131 in 2023[3] - Basic and diluted earnings per share were HKD 13.63, compared to HKD 14.03 in the previous year, reflecting a decline of 2.9%[4] - Total comprehensive income for the year was HKD 164,618, down 4.1% from HKD 171,781 in 2023[4] Cash and Assets - Cash and cash equivalents increased to HKD 418,507, up 17.8% from HKD 354,981 in 2023[5] - Total assets increased to HKD 843,152, up 14.6% from HKD 735,567 in 2023[5] - The company reported a net asset value of HKD 829,677, an increase of 14.3% from HKD 725,684 in the previous year[5] Revenue Breakdown - Revenue from sleepwear products increased to HKD 726,449,000 in 2024 from HKD 659,620,000 in 2023, representing an increase of 10.1%[11] - Revenue from the United States decreased to HKD 793,227,000 in 2024 from HKD 926,580,000 in 2023, a decrease of 14.4%[14] - Revenue from major customer A decreased to HKD 784,911,000 in 2024 from HKD 922,276,000 in 2023, a decline of 14.9%[15] Expenses and Financials - Sales and distribution expenses for the year ended December 31, 2024, were approximately HKD 52.2 million, a decrease of about 6.2% from HKD 55.7 million in 2023[38] - Administrative expenses for the year ended December 31, 2023, were approximately HKD 69.1 million, a slight increase of about 1.5% from HKD 68.1 million in 2022[39] - Financial expenses for 2024 were approximately HKD 19.2 million, compared to HKD 18.1 million in 2023[40] Dividends - The proposed final dividend per share increased to HKD 0.056 in 2024 from HKD 0.0485 in 2023, representing an increase of 10.3%[26] - The board proposed a final dividend of HKD 0.056 per share, representing a dividend payout ratio of approximately 41.1% of the profit attributable to shareholders[33] Operational Developments - The company continues to focus on the manufacturing and sales of sleepwear and homewear products, with no new segments reported[10] - The company plans to establish production bases in Africa, Central America, and Vietnam to capitalize on upcoming demand recovery opportunities[33] - The company established a representative office in the United States in 2024 to enhance design and pre/post-sales operations, aiming to strengthen customer relationships[31] Market Investments - The group invested in 11 sets of marketable bond instruments with a principal amount ranging from $200,000 to $2,000,000, totaling approximately $6,250,000 as of December 31, 2024, with a market value of about $2,500,000[47] - The group also invested in 9 sets of funds with a principal amount totaling approximately $11,800,000, with a market value of about $11,700,000 as of December 31, 2024[48] Employee and Corporate Governance - The group employed 2,028 staff as of December 31, 2024, an increase from 1,977 staff as of December 31, 2023[56] - The company's capital structure has remained unchanged since its listing on November 28, 2019, consisting of ordinary shares and other reserves[54] - The board of directors confirmed compliance with the non-competition agreement, with no reported competitive business activities during the year[57] Future Outlook - The company aims to stabilize growth in existing businesses while planning future expansions to capture business opportunities as global and domestic demand recovers[43] - The new garment production facility in Vietnam is expected to have a monthly capacity of approximately 2 million pieces, with initial trial production planned before the end of 2025[43] - The company plans to establish a new subsidiary in the United States in 2025 to enhance design and pre/post-sales operations, improving communication with customers[43]

Revenue and Profitability - For the six months ended June 30, 2024, the company's revenue increased by approximately 6.0% to about HKD 385,100,000 compared to the same period in 2023[8] - Revenue for the six months ended June 30, 2024, was HKD 385,093,000, an increase of 5.0% compared to HKD 363,460,000 for the same period in 2023[47] - The profit attributable to the company's owners increased by approximately 6.7% to about HKD 42,900,000 for the six months ended June 30, 2024[15] - Net profit attributable to owners of the company was HKD 42,906,000, a rise from HKD 40,226,000, marking an increase of 6.7%[48] - Total comprehensive income for the period was HKD 37,829,000, compared to HKD 32,216,000 in the previous year, indicating a growth of 17.5%[47] - Profit before tax increased to HKD 53,908,000, compared to HKD 51,811,000 in the previous year, representing a growth of 4.0%[47] Sales Performance - The sales volume of sleepwear and loungewear products rose by approximately 700,000 pieces to about 9,600,000 pieces[8] - Revenue from the United States decreased to HKD 250,169,000 in 2024 from HKD 282,903,000 in 2023, a decline of about 11.6%[60] - Revenue from the United Kingdom increased significantly to HKD 45,817,000 in 2024 from HKD 24,991,000 in 2023, showing a growth of approximately 83.3%[60] - Major customer A contributed HKD 246,654,000 to revenue in 2024, down from HKD 281,577,000 in 2023, a decrease of approximately 12.4%[62] - Major customer B's revenue contribution increased to HKD 123,876,000 in 2024 from HKD 61,918,000 in 2023, representing a growth of about 100%[62] Expenses and Costs - Gross profit for the first half of 2024 was approximately HKD 107,700,000, with an average gross margin of about 28.0%, up from 27.4% in the same period of 2023[9] - Administrative expenses rose by approximately HKD 6,700,000 to about HKD 37,000,000, primarily due to the expansion of operations in Cambodia and Honduras[13] - The company reported a total tax expense of HKD 12,322,000 for the six months ended June 30, 2024, compared to HKD 11,465,000 for the same period in 2023, reflecting an increase of about 7.5%[63] Assets and Liabilities - As of June 30, 2024, the group's current assets amounted to approximately HKD 852.1 million, an increase from HKD 735.6 million as of December 31, 2023, while current liabilities rose to approximately HKD 330.7 million from HKD 195.1 million[19] - Total assets as of June 30, 2024, were HKD 852,068,000, compared to HKD 735,567,000 at the end of 2023, showing an increase of 15.9%[49] - Current liabilities rose to HKD 330,702,000 from HKD 195,083,000, indicating a significant increase of 69.3%[49] - The total trade payables increased significantly to HKD 107,515,000 as of June 30, 2024, from HKD 51,141,000 as of December 31, 2023, reflecting a rise of approximately 109.5%[74] Cash Flow and Investments - The group held cash and bank balances of approximately HKD 349.7 million as of June 30, 2024, compared to HKD 355 million as of December 31, 2023[19] - The company reported a net cash outflow from operating activities of HKD (2,701,000), an improvement from HKD (10,711,000) in the previous year[54] - The company invested approximately HKD 8,800,000 in property, plant, and equipment during the six months ended June 30, 2024, compared to HKD 2,160,000 in the same period of 2023, marking a substantial increase of about 307.4%[71] Corporate Governance and Shareholder Information - Strategic King Holdings Limited holds 67.1% of the company's shares, with 838,076,505 shares owned[30] - The company has adopted a new share option scheme on June 8, 2023, allowing for the issuance of 125,000,000 shares, representing 10% of the issued share capital as of June 30, 2024[32] - The company declared a dividend of approximately HKD 60.6 million on July 3, 2024[27] - No interim dividend has been recommended for the six months ending June 30, 2024, consistent with the previous year[39] - The audit committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ending June 30, 2024[40] - The company has complied with all applicable corporate governance code provisions, except for the separation of the roles of chairman and CEO[37] Operational Developments - The company is constructing a garment production base in Vietnam with an estimated monthly capacity of about 2,000,000 pieces, aimed at increasing production capacity and reducing costs[18] - The company plans to continue expanding its existing business while exploring new opportunities in response to global and domestic demand recovery[17] - The establishment of a representative office in the United States aims to enhance design and pre/post-sales work, improving customer communication and understanding[18] Employee Information - The group employed 1,887 staff as of June 30, 2024, a decrease from 1,977 staff as of December 31, 2023[22] Financial Instruments and Risk Management - The group has established foreign exchange options to hedge against currency risks between RMB and USD as of June 30, 2024[20] - The total principal amount of bond instruments held by the group was approximately USD 6.25 million (equivalent to about HKD 48.8 million) with a market value of approximately USD 2.8 million (equivalent to about HKD 22 million) as of June 30, 2024[20] - The group held a total principal amount of approximately USD 11.8 million (equivalent to about HKD 92 million) in funds, with a market value of approximately USD 11.6 million (equivalent to about HKD 90.1 million) as of June 30, 2024[21] Miscellaneous - The company has no significant contingent liabilities as of June 30, 2024, consistent with the previous year[77] - The company has provided a credit period of 0 to 120 days for its trade receivables, indicating a flexible payment structure for clients[73]

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 385,093,000, an increase of 5.5% compared to HKD 363,460,000 for the same period in 2023[1] - Gross profit for the same period was HKD 107,713,000, up from HKD 99,628,000, reflecting a gross margin improvement[1] - The net profit for the period was HKD 42,906,000, representing a 3.8% increase from HKD 41,348,000 in the previous year[2] - Basic and diluted earnings per share increased to HKD 3.43 from HKD 3.22, marking a growth of 6.5%[2] - Total comprehensive income for the period was HKD 37,829,000, compared to HKD 32,216,000 in the prior year, indicating a 17.5% increase[2] - Revenue for the six months ended June 30, 2024, was HKD 385,093,000, an increase of 5.0% compared to HKD 363,460,000 for the same period in 2023[7] - For the six months ended June 30, 2024, the group's revenue increased by approximately 6.0% to about HKD 385,100,000 compared to the same period in 2023[25] - The net profit attributable to the company's owners increased by approximately 6.7% to about HKD 42,900,000 for the six months ended June 30, 2024[32] Assets and Liabilities - The company's total assets as of June 30, 2024, were HKD 852,068,000, up from HKD 735,567,000 at the end of 2023, reflecting a growth of 15.9%[3] - Current liabilities increased to HKD 330,702,000 from HKD 195,083,000, indicating a significant rise in short-term obligations[3] - The company's net asset value decreased to HKD 702,888,000 from HKD 725,684,000, a decline of 3.1%[3] - Non-current assets as of June 30, 2024, totaled HKD 192,115,000, an increase from HKD 180,500,000 as of December 31, 2023[8] - Trade receivables increased to HKD 139,943,000 as of June 30, 2024, compared to HKD 105,137,000 at the end of 2023[18] - Trade payables rose to HKD 305,362,000 as of June 30, 2024, compared to HKD 173,920,000 at the end of 2023[21] - As of June 30, 2024, the group's current assets amounted to approximately HKD 852.1 million, an increase from HKD 735.6 million as of December 31, 2023, while current liabilities rose to approximately HKD 330.7 million from HKD 195.1 million[35] - The current ratio as of June 30, 2024, was approximately 2.58, down from 3.77 as of December 31, 2023[35] Dividends and Earnings - The company declared an interim dividend of HKD 0.0485 per share, totaling approximately HKD 60,600,000, up from HKD 55,000,000 in the previous year[15] - Basic and diluted earnings per share for the six months ended June 30, 2024, were HKD 0.0343, compared to HKD 0.0322 in 2023[17] Operational Highlights - The sales volume of sleepwear and loungewear products rose by approximately 700,000 pieces to about 9,600,000 pieces[25] - Administrative expenses rose by approximately HKD 6,700,000 to about HKD 37,000,000, primarily due to the expansion of operations including the commencement of mass production in Cambodia[30] - The company recorded other income of approximately HKD 7,500,000, slightly up from HKD 7,400,000 in the same period last year, with bank deposit interest income increasing due to rising interest rates[27] Strategic Initiatives - The company plans to continue expanding its production base in Vietnam, with an estimated monthly capacity of about 2,000,000 pieces, aimed at increasing production capacity and reducing costs[34] - The establishment of a representative office in the United States aims to enhance design and pre/post-sales work, improving communication with customers[34] - The company aims to stabilize growth while planning future expansions to capture business opportunities as global and domestic demand rebounds[34] Governance and Compliance - The group has established an audit committee to oversee the integrity of financial statements and internal control systems[49] - The group has not utilized any interest rate swaps, currency swaps, or other financial derivatives for hedging purposes[35] - The company has established a Compensation Committee to consider the remuneration of all directors and senior management, chaired by independent non-executive director Mr. Lu Haoming[50] - A Nomination Committee has been formed to assist the board in managing the nomination of directors, chaired by executive director Mr. Tan Guopei[51] Employment and Staffing - The group employed 1,887 staff as of June 30, 2024, a decrease from 1,977 staff as of December 31, 2023[44] Reporting and Disclosure - The interim results announcement will be published on the Hong Kong Stock Exchange website and the company's website, with the interim report for the period ending June 30, 2024, to be sent to shareholders in due course[52]

Corporate Governance - The board and senior management team consists of 7 males and 3 females, reflecting a commitment to diversity[1] - The audit committee held two meetings during the fiscal year ending December 31, 2023, to review accounting principles and practices[5] - The remuneration committee held one meeting to review the remuneration policies for all directors and senior management[6] - The nomination committee reviewed the board's structure and composition in 2023, ensuring effective policies for appointments[7] - The board confirmed the effectiveness of the risk management and internal control systems during the fiscal year, with no significant issues identified[16] - The board is responsible for the overall effectiveness of the risk management and internal control systems, with annual reviews conducted[13] - The board has adopted corporate governance functions, including the review and monitoring of compliance with legal and regulatory requirements[23] - The board is responsible for formulating and reviewing the group's business strategies and monitoring management performance[77] - The company has complied with all applicable provisions of the corporate governance code, except for the separation of the roles of Chairman and CEO[101] - The board believes that the balance between executive and non-executive directors is reasonable and provides sufficient checks and balances to protect the interests of shareholders[104] - The company has received annual independence confirmation from all independent non-executive directors, affirming their independence according to listing rules[104] - The board will review the dividend policy periodically, considering various financial and operational factors[158] - The board proposed a final dividend of HKD 0.0485 per share, representing a dividend payout ratio of approximately 34.6% of the profit attributable to shareholders[116] Financial Performance - The group achieved sales revenue of approximately HKD 1,110,000,000 in 2023, with sales claims amounting to about HKD 371,000[2] - Revenue from the sale of sleepwear products, loungewear, and fabric processing services was approximately HKD 1,113,242,000 and HKD 971,000 respectively for the year ended December 31, 2023[83] - Total revenue for the year was approximately HKD 1,114,000,000, representing a decrease of about 8.8% compared to HKD 1,221,000,000 in 2022[118] - The gross profit for the year was approximately HKD 355,200,000, with a gross profit margin of about 31.9%, an increase from 30.6% in 2022[119] - The company recorded a net other loss of approximately HKD 8,700,000 for the year, a significant decrease from HKD 51,900,000 in 2022[120] - Selling and distribution expenses increased by approximately 12.5% to about HKD 55,700,000, compared to HKD 49,500,000 in the previous year[121] - Administrative expenses rose by approximately 21.0% to about HKD 68,100,000, up from HKD 56,300,000 in 2022[122] - The company's profit attributable to owners increased by approximately 1.6% from HKD 172.6 million in 2022 to HKD 175.4 million in 2023[126] Environmental, Social, and Governance (ESG) - The company has committed to enhancing its ESG management system to integrate corporate social responsibility with business strategy[32] - The company is actively conducting carbon emission verification and promoting green development to reduce pollution and environmental risks, in response to China's carbon peak and neutrality goals[58] - The company aims to reduce greenhouse gas emissions by 5% in the next reporting period[47] - The company aims to reduce resource consumption by 5% in the next reporting period[49] - The company has implemented measures to monitor and gradually reduce energy consumption and emissions[44] - The total greenhouse gas (GHG) emissions amounted to 26.87 tons of CO2 equivalent per employee[45] - The total energy consumption for the year was 7,447.75 MWh, with an intensity of 3.77 MWh per employee[48] - The hazardous waste generated was 0.36 tons, while non-hazardous waste amounted to 8.00 tons for the year[53] - The company has set emergency measures for extreme weather events to minimize potential risks to operations[55] - The company has established a risk management manual to clarify responsibilities in risk management for the management, board, and audit committee[19] - The company is committed to sustainable development, incorporating eco-friendly concepts in its production facilities and R&D centers[138] - The group emphasizes environmental sustainability and aims to reduce its environmental impact through resource conservation initiatives[152] Human Resources - All directors participated in ongoing professional training to stay updated on the group's business and governance matters[2] - The average employee turnover rate is 6.23% for males and 6.51% for females, with the highest turnover rate of 7.93% for employees under 30 years old[63] - 98.27% of male employees and 99.43% of female employees received training, with average training hours of 5.21 for males and 2.13 for females[67] - The company reported a total of 1,977 employees, all earning above the local minimum wage requirements[56] - The company employed 1,977 staff across various regions as of December 31, 2023, a slight decrease from 1,988 in the previous year[179] Risk Management - The company has implemented internal control assessments and management measures to address significant risks[19] - The management is responsible for executing ESG risk management and reporting relevant risks and opportunities to the board[37] - The group faces market risks related to currency and interest rate fluctuations, which could impact profitability and operational goals[144][146] - The group operates primarily in China, Hong Kong, and Cambodia, with most transactions conducted in USD and RMB, exposing it to foreign exchange risks[145] - The group maintains a cautious approach due to geopolitical tensions and anticipated interest rate fluctuations affecting global financial markets[142] - The group monitors cash flow and maintains sufficient cash and cash equivalents to mitigate liquidity risk[147] Corporate Transactions - In September 2023, the company acquired the remaining 25% equity of Henan Kaiyu Textile and Garment Co., Ltd. for a total consideration of RMB 31,500,000, aimed at streamlining operations and enhancing vertical integration[115] - The company plans to establish a fabric R&D/production center in Henan, China, with a capacity of 5,000 spindles to enhance product quality and reduce production cycles[128] - The garment production base in Vietnam has received construction permits and is expected to complete its first phase by the second half of 2024, with an estimated capacity of 2 million pieces per shift[128] - The company launched its first proprietary brand, COZ, targeting the local youth market, aiming to build a solid customer base through detailed market research and promotional activities[128] Compliance and Legal Matters - There were no incidents of corruption or related lawsuits involving the group or its employees in 2023[78] - The group has implemented regular anti-corruption training to enhance employee awareness of legal regulations and compliance culture[78] - Related party transactions have been disclosed in the consolidated financial statements, and the company has complied with the relevant regulations under Chapter 14A of the Listing Rules for the year ending December 31, 2023[196] - The company has confirmed that there are no competing businesses held by controlling shareholders as of December 31, 2023[195] - There were no significant post-balance sheet events that could materially affect the company's assets and liabilities or future operations[173] Shareholder Engagement - The company has established various communication channels with shareholders and investors, including annual reports and mid-term reports[24] - The company encourages shareholders to attend annual general meetings for direct communication with the board[24] - The board of directors will see the retirement of two members, who are willing to stand for re-election at the upcoming annual general meeting[187] Financial Position - Cash and bank balances increased to approximately HKD 355 million as of December 31, 2023, from HKD 165.3 million in 2022, with 73.2% in USD[139] - The current ratio improved to approximately 3.77 as of December 31, 2023, compared to 3.63 in 2022[132] - The company has no outstanding bank loans as of December 31, 2023, and maintains a zero debt ratio[140] - The company's distributable reserves as of December 31, 2023, were approximately HKD 172,483,000, an increase from HKD 170,276,000 in 2022[181] - The total amount utilized from the net proceeds of the global offering is approximately HKD 60.8 million, with HKD 48.4 million already used[160] - The net proceeds from the global offering amounted to approximately HKD 60,800,000 after deducting all related listing expenses and commissions[165] - The expected timeline for the use of unutilized proceeds is subject to change based on market conditions, as the utilization has been delayed due to COVID-19 restrictions[165] - As of December 31, 2023, the company had no significant capital commitments for the acquisition of non-current assets[170] Share Option Scheme - The new share option scheme adopted on June 8, 2023, is valid for a period of ten years and aims to incentivize employees and directors for their contributions to the company[197] - Eligible participants for the share option scheme include employees and directors from the company and its subsidiaries, as well as service providers contributing to the company's long-term growth[198] - The board of directors will determine the eligibility of participants based on their contributions to the company's development and growth[200]

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 1,114,213,000, a decrease of 8.7% from HKD 1,220,760,000 in 2022[8] - Gross profit for 2023 was HKD 355,187,000, down from HKD 373,267,000 in 2022, reflecting a gross margin of 31.9% compared to 30.6% in the previous year[8] - Net profit for the year was HKD 177,131,000, slightly up from HKD 175,897,000 in 2022, resulting in basic and diluted earnings per share of HKD 14.03, compared to HKD 13.80 in the prior year[9] - Total comprehensive income for the year was HKD 171,781,000, an increase from HKD 163,902,000 in 2022[9] - Revenue from sleepwear products was HKD 659,620, down from HKD 914,262 in the previous year, representing a decline of 28%[24] - In 2023, revenue from the United States was HKD 926.6 million, a decrease from HKD 1,008.7 million in 2022, while total revenue was HKD 1,114.2 million compared to HKD 1,220.8 million in 2022[63] - The sales volume of sleepwear and loungewear products was approximately 25,900,000 units, down from approximately 26,600,000 units in 2022, reflecting a decrease of about 2.6%[72] - The average selling price of sleepwear and loungewear products decreased by approximately 6.6% compared to 2022 due to changes in the product mix[74] Assets and Liabilities - Non-current assets as of December 31, 2023, totaled HKD 204,846,000, compared to HKD 188,258,000 in 2022, indicating a growth of 8.8%[2] - Current liabilities increased to HKD 735,567,000 in 2023 from HKD 634,590,000 in 2022, representing a rise of 15.9%[2] - Total assets less current liabilities amounted to HKD 745,330,000, up from HKD 648,208,000 in 2022, reflecting a growth of 15%[2] - The company's equity attributable to owners increased to HKD 725,684,000 in 2023 from HKD 642,786,000 in 2022, marking a rise of 12.9%[2] - Trade receivables aged 0 to 30 days amounted to HKD 21,401, while total trade and other payables were HKD 173,920 as of 2023[48] - As of December 31, 2023, the group's current assets were approximately HKD 735.6 million, an increase from HKD 634.6 million as of December 31, 2022, while current liabilities were approximately HKD 195.1 million, up from HKD 174.6 million[82] Investments and Acquisitions - The company acquired the remaining 25% stake in Henan Kaiyu Textile and Garment Co., Ltd. for RMB 31,500,000 to streamline operations and enhance vertical integration[50] - The company invested in 12 sets of marketable bond instruments with principal amounts ranging from USD 200,000 to USD 2,000,000, totaling approximately USD 6.25 million as of December 31, 2023[82] - The group also invested in 9 sets of funds with a total principal of approximately HKD 92 million, with a market value of approximately HKD 88.9 million as of December 31, 2023[82] - There were no significant acquisitions or disposals during the year ended December 31, 2023, apart from the aforementioned acquisition[98] Dividends and Shareholder Returns - The proposed final dividend per share for 2023 is HKD 0.0485, an increase from HKD 0.044 in 2022[46] - The company proposed a final dividend of HKD 0.0485 per share, representing a dividend payout ratio of approximately 34.6% of the profit attributable to shareholders[73] Operational Strategies - The company plans to continue expanding its product offerings and market presence in the coming year, focusing on pajamas and homewear products[15] - The company plans to explore domestic sales opportunities through OEM and/or its own brand in the local market[50] - The group aims to establish a subsidiary in the United States in 2024 to enhance design and pre/post-sales services, thereby strengthening customer relationships[59] - The company is establishing production bases in Central America and Vietnam to capitalize on the anticipated demand recovery[73] - The establishment of a production base in Honduras marks a significant milestone, allowing for reduced delivery times to American customers and diversification of political risks[81] - The company is focusing on cost control strategies and expanding vertical integration benefits to maintain operational efficiency[72] - The company launched its first in-house brand, COZ, to enhance its sales and distribution capabilities[76] - The company launched its first proprietary brand, COZ, targeting the local youth market, and is conducting detailed market research and promotional activities[123] Financial Management - Financial expenses for 2023 amounted to approximately HKD 18.1 million, up from HKD 11.8 million in 2022, primarily impacted by rising global interest rates[55] - The group recorded a net other loss of approximately HKD 8.7 million in 2023, a significant decrease from HKD 51.9 million in 2022, mainly due to reduced foreign exchange options contracts[53] - The group recorded a net loss of approximately HKD 8.7 million from other income and losses in 2023, a significant improvement from a loss of HKD 51.9 million in 2022[64] - The group maintains a conservative treasury policy, primarily holding bank deposits in HKD or USD to mitigate foreign exchange risks[82] - The group has not entered into any foreign exchange forward contracts to hedge against currency risks as of December 31, 2023, but will consider various financial instruments to manage foreign exchange risks[82] Employee and Operational Metrics - The company employed 1,977 staff as of December 31, 2023, compared to 1,969 staff as of December 31, 2022[101] - Administrative expenses for the year ended December 31, 2023, were approximately HKD 68.1 million, a 21.0% increase from approximately HKD 56.3 million in 2022, primarily due to expanded operations including the commencement of mass production in Honduras and investment in Vietnam[92] Future Outlook - The group plans to establish a research and production center in Henan, China, with a capacity of 5,000 axes of fabric, aimed at improving quality and reducing production cycles[58] - The garment production base in Vietnam has obtained a construction permit and is expected to complete the first phase of construction by the second half of 2024, with an estimated production capacity of approximately 2,000,000 pieces per single shift[96] - The company continues to focus on diversifying production bases, vertical integration, and customer satisfaction to control costs and ensure product quality amid global uncertainties[121] Miscellaneous - The tax rate for the Chinese subsidiaries is 25% as per the Corporate Income Tax Law[30] - The company confirmed revenue recognition for products upon transfer of control, typically within 0 to 120 days post-delivery[37] - The annual general meeting of shareholders is scheduled for June 7, 2024[108] - The group has no significant contingent liabilities as of December 31, 2023[83] - The group had no outstanding bank loans as of December 31, 2023, and maintained a debt ratio of zero, calculated as bank borrowings to shareholders' equity[82] - The company has not experienced any post-balance sheet events that would significantly impact its assets, liabilities, or future operations[100] - The company provides a credit period of 0 to 120 days for its trade receivables[112]