Financial Performance - For the six months ended June 30, 2022, the Group recorded revenue of approximately HK$212.8 million, an increase of 36.1% compared to HK$156.4 million in the same period last year[9]. - Profit attributable to the owners of the Company increased approximately four times to about HK$9.3 million, with a profit margin of 4.4%, compared to HK$2.1 million and 1.4% in the first half of 2021[9]. - Reported net profit for the first half of 2022 was approximately HK$9.3 million, an increase from approximately HK$2.1 million in the first half of 2021, reflecting improved financial performance due to stable business development across multiple countries[28]. - Profit before tax increased significantly to HK$13,319,000, compared to HK$3,804,000 in the previous year, marking a growth of 250%[96]. - Basic earnings per share for the period were HK$0.46, compared to HK$0.11 for the same period in 2021, indicating a significant improvement in profitability[96]. - The Group's profit before tax for the six months ended June 30, 2022, was HK$9,273,000, compared to HK$2,136,000 for the same period in 2021, representing a significant increase[162]. Revenue Growth - The Group's unaudited consolidated revenue for the six months ended June 30, 2022, was approximately HK$212.8 million, representing a 36.1% increase compared to approximately HK$156.4 million in the same period of 2021[20][23]. - Revenue from Mainland China was HK$73,164,000, up 32% from HK$55,410,000 in the previous year[125]. - The Group's revenue from the sale of printing products was HK$212,853,000, with all revenue derived from this segment[135]. - The Group's geographical revenue distribution included HK$40,945,000 from Hong Kong, up from HK$30,158,000 in the previous year[125]. - The total revenue from Bangladesh, Vietnam, the United States, and other countries was HK$34,603,000, compared to HK$31,533,000 in the prior year[125]. Cost and Expenses Management - The Group implemented stringent cost control measures and optimized production capacity to mitigate the impact of rising raw material prices and labor costs[9]. - Selling and distribution expenses rose by approximately 24.5%, from approximately HK$22.2 million in the first half of 2021 to approximately HK$27.7 million in the first half of 2022, driven by increased marketing consultancy fees and salaries[26]. - Administrative expenses increased by approximately 13.8%, from approximately HK$44.8 million in the first half of 2021 to approximately HK$51.1 million in the same period of 2022, mainly due to rising labor costs and operational costs of expanding new subsidiaries[26]. - The total tax charge for the period was HK$4,046,000, compared to HK$1,668,000 in the prior period, representing an increase of approximately 142%[154]. Market Expansion and Client Acquisition - The Group successfully expanded its sales network, with Vietnam showing the highest growth rate in sales compared to other markets during the Review Period[10]. - The Group acquired two new clients in the Chinese market and secured numerous domestic brand clients, actively expanding its local market presence[10]. - Sales offices in emerging markets such as Mexico and Spain have commenced operations, with plans to establish new production bases in these regions in the second half of the year[10]. - In May 2022, the Group completed the acquisition of Print100 Limited, which is expected to enhance brand reputation and diversify income sources[16][18]. Sustainability and Innovation - The Group's strategic focus on green consumerism aligns with the increasing awareness among international apparel brands, driving new development momentum in the industry[8]. - The Group launched more environmentally friendly products made from recyclable materials to meet market demands and support ESG initiatives[15][17]. - The Group is committed to sustainability by using environmentally friendly materials and inks, including 100% water-based ink for heat transfer labels[45]. Financial Position and Assets - As of 30 June 2022, the Group had net current assets of approximately HK$98.7 million, down from approximately HK$107.8 million as of 31 December 2021[28]. - Cash and cash equivalents as of 30 June 2022 were approximately HK$95.5 million, a decrease from approximately HK$102.1 million as of 31 December 2021[30]. - Interest-bearing bank borrowings were approximately HK$11.5 million as of 30 June 2022, down from approximately HK$13.6 million as of 31 December 2021[30]. - The gearing ratio was approximately 2.9% as of 30 June 2022, down from approximately 3.4% as of 31 December 2021, indicating a solid financial position[30]. - Non-current assets totaled HK$170,584,000 as of June 30, 2022, up from HK$164,658,000 at the end of 2021, indicating a growth of 3.7%[100]. Corporate Governance - The Company has complied with all provisions of the Corporate Governance Code during the review period[47]. - The Company confirmed compliance with the corporate governance code as per the Listing Rules throughout the reporting period[56]. - The Group maintained high standards of corporate governance practices and procedures[56]. Employee and Management - Employee benefit expenses for the Reporting Period amounted to approximately HK$73.6 million, an increase from approximately HK$63.6 million in the same period of 2021[32]. - The Group had a total of 1,146 employees as of 30 June 2022, compared to 1,000 employees as of 30 June 2021[32]. - The compensation for key management personnel for the six months ended June 30, 2022, was HK$2,850,000, a decrease from HK$3,547,000 in the same period of 2021[190].

Financial Performance - Revenue for FY2021 reached HK$362.5 million, a 39.8% increase from HK$259.3 million in FY2020[9] - Profit for the year attributable to owners of the Company soared to HK$15.0 million, representing an increase of over 809% compared to HK$1.6 million in FY2020[9] - The Group's revenue for FY2021 exceeded pre-COVID-19 levels, with a year-on-year increase of over 50% in key markets such as China, Vietnam, and Bangladesh[15] - Net profit for FY2021 surged over 809% to approximately HKD 15 million compared to the same period in 2020[15] - The gross profit margin decreased from approximately 50.2% in FY2020 to approximately 43.6% in FY2021, attributed to a 58.4% increase in cost of sales[30] - The cost of sales rose by approximately HK$75.4 million, representing an increase of 58.4%, from approximately HK$129.1 million in FY2020 to approximately HK$204.5 million in FY2021, driven by increased sales volume and procurement prices[48] - The Group's gross profit increased by approximately HK$27.8 million or 21.4%, from approximately HK$130.2 million in FY2020 to approximately HK$158.0 million in FY2021, with the gross profit margin decreasing from approximately 50.2% to 43.6%[48] Assets and Liabilities - Total assets increased to HK$401.0 million, up from HK$361.7 million in FY2020, reflecting a growth of 10.5%[9] - The total liabilities rose to HK$151.4 million, compared to HK$125.6 million in the previous year, indicating a 20.6% increase[9] - The equity attributable to owners of the Company was HK$249.7 million, up from HK$236.1 million in FY2020, marking a growth of 5.1%[9] - As at 31 December 2021, the Group had net assets amounted to approximately HK$249.7 million, an increase from approximately HK$236.1 million as at 31 December 2020[53] - The Group's cash and bank balances decreased to approximately HK$102.1 million as at 31 December 2021 from approximately HK$114.7 million as at 31 December 2020[53] - The Group's interest-bearing bank borrowings decreased from approximately HK$21.2 million as at 31 December 2020 to approximately HK$13.6 million as at 31 December 2021[53] Market Expansion and Strategy - The Group expanded its market presence across over 40 major fashion markets globally, enhancing its sales network[12] - New sales offices were established in Turkey, Guatemala, and Mexico in the second half of 2021 to capture emerging market opportunities[18] - The Group launched its own RFID supply chain solution in 2021, receiving positive market feedback[20] - A new factory was opened in India in the second half of 2021, alongside the operational commencement of a factory in Turkey, enhancing global business expansion[19] - The Group aims to diversify its income sources and mitigate market risks through new business sites and collaborations[21] - The Group's production bases are strategically located in China, Vietnam, and Bangladesh to meet the demand for express delivery from apparel clients[19] Corporate Governance - The Company has complied with all applicable code provisions of the Code of Corporate Governance during the reporting period, except for certain deviations related to the composition of the Nomination Committee[68] - The Board is composed of six Directors, with three executive Directors and three independent non-executive Directors, ensuring a balanced composition for effective management[70] - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance with required standards since the Listing Date (March 12, 2020) with no incidents of non-compliance reported[91] - The Company emphasizes internal control and risk management, with the Board responsible for the effectiveness of the internal control system[99] - The Audit Committee reviews the Group's control environment and risk assessment processes, ensuring effective management of business and control risks[93] Employee and Management - As of December 31, 2021, the Company had a total of 1,050 employees, an increase from 990 employees in 2020[57] - The employee benefit expense for FY2021 was approximately HK$136.9 million, up from approximately HK$98.9 million in FY2020[57] - The management team is committed to driving the Group's growth and operational efficiency through strategic initiatives[131] - The company has a strong management team with members holding significant experience in finance and operations, including Mr. Chew Yong Hock as Sales and Marketing Director since July 2012[145] Shareholder Information - The Board recommended a final dividend of HK$0.25 per ordinary share for FY2021, subject to approval at the 2022 AGM[122] - The Company has adopted a dividend policy allowing for the declaration and distribution of dividends at the Board's discretion, subject to shareholder approval for final dividends[116] - Shareholders can requisition an Extraordinary General Meeting (EGM) if they hold at least 10% of the paid-up capital, and the meeting must be held within two months of the requisition[118] - The Company ensures timely communication with shareholders, providing information through its website and during the Annual General Meeting (AGM)[116] Audit and Financial Reporting - The consolidated financial statements provide a true and fair view of the Group's financial position as of December 31, 2021, in accordance with HKFRSs[179] - The audit included procedures designed to respond to the risks of material misstatement of the consolidated financial statements[180] - The Audit Committee reviewed the financial statements for the year ended December 31, 2021, focusing on business highlights and compliance with accounting standards and Listing Rules requirements[110] - The Group accounted for the impairment on trade receivables using an expected credit loss (ECL) approach, which involved significant judgement and subjective assumptions[182] Sustainability and Innovation - The Group has launched more eco-products made from recyclable materials to align with sustainability goals[35] - The Group's RFID products continued to be the fastest-growing segment, driven by increased retail and inventory management needs[35] - The management team is dedicated to fostering innovation and exploring new technologies to improve operational efficiency and service delivery[145]

Financial Performance - For the six months ended June 30, 2021, the Group's revenue increased by approximately 37.2% to approximately HK$156.4 million compared to HK$114.0 million in the first half of 2020[9]. - Gross profit rose by approximately 14.5% to approximately HK$67.1 million, with a gross profit margin of approximately 42.9%, down from 51.4% in the first half of 2020[9]. - The Group recorded a profit attributable to owners of approximately HK$2.1 million, a turnaround from a loss of approximately HK$11.8 million in the first half of 2020[9]. - Reported net profit for the first half of 2021 was approximately HK$2.1 million, a significant improvement from a net loss of approximately HK$11.8 million in the first half of 2020, attributed to improved demand as the COVID-19 pandemic came under control[36]. - The net profit for the period was HK$2,136,000, compared to a net loss of HK$11,838,000 in the same period last year[110]. - Profit before tax for the period was HK$3,804,000, a significant recovery from a loss of HK$10,602,000 in the prior year[108]. - Earnings per share for the period was HK$0.11, compared to a loss per share of HK$0.66 in the same period last year[108]. Revenue Breakdown - Revenue for the six months ended June 30, 2021, was HK$156,419,000, an increase of 37.2% compared to HK$114,008,000 for the same period in 2020[108]. - Revenue from external customers for the six months ended June 30, 2021, was HK$156,419,000, an increase of 37.2% compared to HK$114,008,000 for the same period in 2020[197]. - Revenue from Mainland China was HK$55,410,000, up 79.8% from HK$30,879,000 in 2020[197]. - Revenue from Bangladesh increased by 47.5% to HK$17,093,000 from HK$11,579,000 in 2020[197]. - The geographical revenue breakdown indicates a decline in revenue from Hong Kong, which was HK$30,158,000 compared to HK$33,284,000 in 2020, a decrease of 9.5%[197]. - Other regions contributed HK$31,533,000 in revenue, an increase from HK$21,978,000 in 2020, reflecting a growth of 43.3%[197]. Cost and Expenses - Selling and distribution expenses increased by approximately 28.0% from approximately HK$17.4 million in the first half of 2020 to approximately HK$22.2 million in the first half of 2021, primarily due to higher marketing consultancy fees and salaries related to sales personnel[24][30]. - Administrative expenses rose by approximately 7.4% from approximately HK$41.7 million in the first half of 2020 to approximately HK$44.8 million in the same period of 2021, mainly due to increased labor costs and operating costs for new subsidiaries[25][31]. - Taxation expenses for the first half of 2021 amounted to approximately HK$1.7 million, representing an increase of approximately 35.0% from approximately HK$1.2 million in the first half of 2020[28][34]. - Finance costs decreased by approximately 5.0% from approximately HK$1.3 million in the first half of 2020 to approximately HK$1.2 million in the first half of 2021, as no new bank borrowings occurred since December 31, 2020[27][33]. Assets and Liabilities - As of June 30, 2021, the Group had net current assets of approximately HK$118.1 million, an increase from approximately HK$111.7 million as of December 31, 2020[37]. - The current ratio remained stable at approximately 2.18 times as of June 30, 2021, compared to approximately 2.10 times as of December 31, 2020[40]. - The gearing ratio decreased to approximately 4.9% as of June 30, 2021, down from approximately 5.9% as of December 31, 2020, reflecting a solid financial position[40]. - Cash and cash equivalents amounted to approximately HK$99.4 million as of June 30, 2021, down from approximately HK$114.7 million as of December 31, 2020[37]. - Total current assets as of June 30, 2021, amounted to HK$218,270,000, an increase from HK$213,436,000 at the end of 2020[116]. - Total non-current assets were HK$140,331,000, down from HK$148,256,000 at the end of 2020[116]. - The company reported total assets less current liabilities of HK$258,425,000, slightly down from HK$259,973,000 in the previous period[116]. - Net current assets increased to HK$118,094,000 from HK$111,717,000 at the end of 2020[116]. Operational Developments - The Group established a sales office in Italy in March 2021, successfully developing a new local customer base[10]. - The Group is constructing a new three-storey factory in Bangladesh with a gross floor area of approximately 10,600 square meters, expected to commence operations in early 2022[14]. - The Group plans to expand its global business presence by establishing sales offices and production bases in regions with development potential, including Eastern Europe and Central and South America[53]. - A new factory in Bangladesh is expected to commence operations in early 2022, providing greater flexibility in resource deployment to meet customer needs[53]. - The Group has increased investment in RFID technology and expanded its business into RFID product solutions, targeting small to medium-sized customers across over 40 markets[54]. Market and Strategic Focus - The Group is focused on expanding its global sales network to capture market recovery opportunities post-pandemic[10]. - The ongoing COVID-19 pandemic has significantly altered consumer habits, prompting apparel brands to adopt digital transformation strategies[8]. - The Group's proactive approach in leveraging global business resources contributed to a slight turnaround in results for the second quarter of 2021[9]. - Despite rising raw material prices and labor costs, effective cost control measures helped maintain a respectable gross profit margin[9]. - New orders for the first half of 2021 increased compared to the same period last year, demonstrating the Group's strength in maintaining production efficiency and product quality amid ongoing pandemic challenges[52]. Corporate Governance - The company complied with all corporate governance codes as per the Hong Kong Stock Exchange regulations[72]. - The Company maintained high standards of corporate governance practices throughout the reporting period[71]. - The Audit Committee reviewed the unaudited interim condensed consolidated financial information for the six months ended June 30, 2021, ensuring compliance with applicable accounting standards[101]. - There were no competing interests reported for the Directors or substantial shareholders for the six months ended June 30, 2021[99]. Shareholder Information - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2021[69]. - The company had 2,000,000 share options outstanding under the Share Option Scheme, with an exercise price of HK$0.057, valid until September 14, 2025[80]. - Charming International holds 1,404,000,000 shares, representing approximately 70.2% of the total issued share capital of the Company[94]. - Mr. Barry Chan and Ms. Candy Law own 51% and 49% of Charming International, respectively, which holds the aforementioned shares[95]. - The Company maintained a public float of no less than 25% as required under the Listing Rules as of the report date[98].

CIRTEK HOLDINGS LIMITED 常 達 控 股 有 限 公 司 Incorporated in the Cayman Islands with limited liability 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 STOCK CODE 股份代號:1433 ANNUAL REPORT 年度報告 CONTENTS 目錄 2 Corporate Information 公司資料 4 Financial Highlights 財務摘要 5 Chairman's Statement 主席報告 7 Management Discussion and Analysis 管理層討論及分析 15 Corporate Governance Report 企業管治報告 26 Report of the Directors 董事會報告 41 Independent Auditor's Report 獨立核數師報告 47 Consolidated Statement of Profit or Loss 綜合損益表 48 Consolidated Statement of Comprehensive ...

CIRTEK HOLDINGS LIMITED 常 達 控 股 有 限 公 司 Incorporated in the Cayman Islands with limited liability 於開曼群島註冊成立的有限公司 STOCK CODE 股份代號:1433 2020 INTERIM REPORT 中期報告 CONTENTS 目錄 | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|---------------------------|-------|-------|---------------------------------------------|-------|-------|------------------------| | | | | | | | | | | | 2 | | Corporate Information | | | | | | 公司資料 | | 4 | | | | | Management Discussion and Analysis | | | 管理層討論及分析 | | ...

Financial Performance - The profit for the year attributable to owners of the Company amounted to HK$25,331,000, a decrease from HK$31,940,000 in 2018, representing a decline of approximately 20.5%[12] - Revenue for 2019 was HK$352,937,000, down from HK$371,883,000 in 2018, indicating a decrease of about 5.4%[8] - Basic earnings per share for 2019 were HK$1.69 cents, compared to HK$2.13 cents in 2018, reflecting a decline of approximately 20.7%[12] - The Group's profit attributable to owners for 2019 was HK$25,331,000, a decrease from HK$31,940,000 in 2018, primarily due to increased labor costs, listing expenses, and administrative costs related to depreciation[16] - Revenue for the Group decreased by approximately 5.1% compared to 2018 due to a global economic downturn affecting demand for apparel-related products[27] - The Group's revenue decreased by approximately HK$18.9 million to approximately HK$352.9 million for the year ended 31 December 2019, primarily due to a decrease in sales to Customer A and a reduction in average sales price from HK$0.28 to HK$0.25 per piece[33] - Gross profit increased by approximately HK$12.4 million to approximately HK$174.8 million for the year ended 31 December 2019, resulting in a gross profit margin increase from approximately 43.7% to approximately 49.5%[33] - Total comprehensive income for the year was HK$27,254,000, a decrease of 17.4% from HK$32,803,000 in 2018[199] Expenses and Liabilities - Total liabilities attributable to owners of the Company were HK$143,970,000 in 2019, compared to HK$116,716,000 in 2018, representing an increase of approximately 23.3%[8] - Administrative expenses increased by approximately HK$7.0 million to HK$83.8 million for the year ended 31 December 2019, mainly due to higher staff costs and increased depreciation related to the new office[33] - Selling and distribution expenses rose by approximately HK$3.7 million to HK$44.1 million for the year ended 31 December 2019, primarily due to an increase in staff costs[33] - Listing expenses increased by approximately HK$7.0 million to HK$11.0 million for the year ended December 31, 2019[35] - Income tax expense increased by approximately HK$3.4 million to approximately HK$11.4 million for the year ended 31 December 2019, mainly due to higher estimated assessable profits[35] Assets and Cash Flow - Total assets increased to HK$286,400,000 in 2019 from HK$270,846,000 in 2018, marking an increase of about 5.5%[8] - The net assets of the Group amounted to approximately HK$144.0 million as at 31 December 2019, an increase from HK$116.7 million in 2018, primarily due to profit generated from operations[35] - As of December 31, 2019, the Group's cash and bank balances increased to approximately HK$43.8 million, up from HK$23.0 million in 2018, primarily due to operating cash inflow and reduced capital expenditures[37] - The Group's net current assets rose to approximately HK$41.5 million as of December 31, 2019, compared to HK$4.0 million in 2018, resulting in a current ratio of approximately 1.4[37] - Interest-bearing bank borrowings amounted to approximately HK$20.7 million as of December 31, 2019, an increase from HK$12.7 million in 2018[37] - The gearing ratio improved to approximately 43.5% for the year ended December 31, 2019, down from 57.7% in 2018[37] Strategic Initiatives - The Group plans to develop RFID technology in its printing products to enhance customer engagement and gain a first mover advantage[14] - The Company will continue to explore suitable business opportunities to diversify its business foundation and maximize shareholder interests[13] - The Group aims to implement stringent cost controls in response to challenging global market conditions[11] - The Group plans to enhance its product offerings by incorporating more value-added IT-related services and developing RFID technology for printing products[17] - The Group will expand production capacity in Bangladesh through the construction of a new facility and machinery purchases, funded by net proceeds of approximately HK$74.9 million from the Global Offering[28] - The Group anticipates a positive growth outlook for the apparel labels and trim products manufacturing market in 2020 despite challenges posed by the COVID-19 pandemic[24] - The Group aims to increase efficiency and profitability through effective management across technology, operations, and marketing activities[19] - The Group will continue to seek sustainable growth opportunities and increase shareholder value by expanding its production capacity and customer base[27] - The Group's strategic focus includes collaboration with customers and suppliers to navigate global market volatility[19] - The Group's commitment to innovation and high-quality printing products is expected to drive long-term business development[20] Corporate Governance - The Board consists of 6 Directors, with 3 executive Directors and 3 independent non-executive Directors, ensuring a balanced composition for effective management[58] - All independent non-executive Directors have confirmed their independence annually, meeting the guidelines set out in Rule 3.13 of the Listing Rules[60] - The attendance record of Directors at board meetings since the Listing Date shows a 100% attendance rate for all Directors[58] - The Nomination Committee, primarily composed of independent non-executive Directors, is responsible for recommending candidates for directorship[52] - Directors receive comprehensive training and support, including tailored induction and ongoing professional development to ensure they are well-informed about the Company's operations[66] - The Company Secretary ensures compliance with all applicable rules and regulations during board meetings, with minutes available for inspection[60] - Regular board meetings are scheduled, with at least fourteen days' notice given for meetings and board papers sent three days in advance[60] - The Company maintains a balanced composition of executive Directors to ensure independence and effective management[54] - All Directors participated in training related to general business and regulatory updates, ensuring their contributions remain relevant[68] Audit and Compliance - The Company received approximately HK$1,611,000 for audit services in 2019, an increase of 118.8% from HK$736,000 in 2018[73] - Non-audit services provided to the Group amounted to approximately HK$608,000 in 2019, up from HK$103,000 in 2018, representing a 487.4% increase[73] - The Audit Committee assists the Board in maintaining an effective system of internal control[73] - The Company places great importance on internal control and risk management to safeguard assets and shareholder interests[73] - The Internal Control Consultant formulates audit plans covering key internal control areas on a rotational basis[73] - The Audit Committee reviewed the financial statements for the year ended December 31, 2019, focusing on business highlights and compliance with accounting standards[84] - The Audit Committee recommended the re-appointment of external auditors for the financial year ending December 31, 2020, based on their satisfactory performance[84] - The auditor's report includes key audit matters that were significant in the current period's audit[192] Shareholder Communication - The Company emphasizes the importance of communication with shareholders and has implemented a Shareholders Communication Policy to provide timely information and facilitate engagement[91] - The Annual General Meeting (AGM) serves as a platform for communication between the Board and shareholders, with key figures present to address shareholder questions[88] - The Company maintains a proactive investor relations policy, ensuring regular dialogue with investors and stakeholders, with relevant information available on its website[98] - The Company has a dedicated Investor Relations section on its website to facilitate communication and provide access to financial and non-financial information[102] - Shareholders can requisition an Extraordinary General Meeting (EGM) if they hold at least one-tenth of the paid-up capital, ensuring their rights to convene meetings[93] - Specific inquiries and suggestions from shareholders can be submitted in writing to the Board or Company Secretary, promoting active shareholder engagement[101] Directors and Management - The Company has arranged appropriate directors' and officers' liability insurance coverage for its Directors and officers[145] - No Director had a material interest in any significant transactions or contracts related to the Group during the year[146] - As of the report date, Mr. Barry Chan and Ms. Candy Law own 51% and 49% of Charming International, which holds 1,404,000,000 Shares, indicating their significant interest in the Company[150] - The Company has appointed Ernst & Young as the auditor for the year ended December 31, 2019[166] - The compliance adviser, Elstone Capital Limited, has no interests in the share capital of the Company as of the report date[165] - The Company is required to maintain a register of interests as per Section 336 of the SFO[157] - The report indicates that there are no other persons with interests of 5% or more in the shares of the Company apart from the Directors[160]