Group 1: Market Overview - The Hong Kong stock market is experiencing a rebound as investor sentiment improves, with the Hang Seng Index recovering from the gap caused by the "tariff war" initiated by Trump [1] - The Hang Seng Technology Index has recovered 93%, leading the rebound trend despite ongoing "tariff noise" affecting market sentiment [1][10] - The focus of investment is shifting towards "foreign trade support" concepts, driven by expectations of policies promoting domestic consumption [1] Group 2: Company Performance - Yingxing Holdings (01440) has shown significant revenue growth, with projected revenues of 317 million and 585 million in 2023 and 2024, respectively, representing year-on-year growth of 136.56% and 84.2% [2] - The company's footwear products are performing strongly, with expected revenue of 505 million in 2024, a year-on-year increase of 107.6%, contributing to 86.4% of total revenue [2][3] - The company is actively transforming its business model by integrating IP operations, with a notable collaboration with football star Cristiano Ronaldo to enhance brand value [4][7] Group 3: Strategic Initiatives - Yingxing Holdings is establishing partnerships in Southeast Asia to mitigate geographical concentration risks, as this region is not affected by the tariff war [3] - The company is exploring opportunities in the domestic consumption market and is in discussions with several well-known IP holders to enhance product differentiation [3][7] - The collaboration with Ronaldo is expected to generate significant commercial value, leveraging his global fan base of over 1 billion across social media platforms [4][5] Group 4: Market Position and Future Outlook - Yingxing Holdings is currently a small-cap stock with a market capitalization of approximately 6 billion HKD, but it has high growth potential [8] - The stock has shown a substantial increase since its IPO, with a cumulative increase of 44.3 times from the issue price [8] - The company is expected to maintain high revenue growth levels in 2025 by capitalizing on domestic demand policies and expanding into Southeast Asia [10]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 584,541,000, representing a 84.2% increase from RMB 317,353,000 in 2023[12]. - Gross profit for 2024 was RMB 57,494,000, up from RMB 23,846,000 in 2023, indicating a significant improvement in profitability[12]. - Loss before income tax for 2024 was RMB 12,763,000, compared to a loss of RMB 8,665,000 in 2023, reflecting ongoing challenges[12]. - Loss attributable to owners of the Company for 2024 was RMB 12,753,000, an increase from RMB 10,091,000 in 2023[12]. - The Group recorded a net loss of approximately RMB 12.8 million for the Reporting Period, compared to a net loss of approximately RMB 10.1 million in FY2023[65][69]. - Basic and diluted loss per share for 2024 was RMB 1.01, compared to RMB 0.80 in 2023, indicating worsening per-share performance[19]. Assets and Liabilities - Total assets as of December 31, 2024, were RMB 492,840,000, slightly up from RMB 492,175,000 in 2023[14]. - Total liabilities increased to RMB 189,162,000 in 2024 from RMB 176,291,000 in 2023, indicating rising financial obligations[14]. - Total equity decreased to RMB 303,678,000 in 2024 from RMB 315,884,000 in 2023, showing a decline in shareholder value[14]. - Net current assets decreased to approximately RMB 158.3 million from RMB 191.4 million in FY2023, with the current ratio declining from approximately 2.1 times to 1.9 times[67][71]. - The Group's borrowings increased to approximately RMB 52.3 million in 2024, up 41.0% from RMB 36.9 million in 2023[74]. - The gearing ratio as of December 31, 2024, was 0.2, compared to 0.1 in 2023, indicating a higher level of debt relative to equity[75]. Revenue Segmentation - Revenue from the footwear business segment accounted for approximately 86.4% of the total revenue of the Group during the Reporting Period, compared to approximately 76.7% in 2023[23]. - Footwear revenue surged to approximately RMB505.2 million, representing a remarkable increase of approximately 107.6% from RMB243.4 million in FY2023[46][52]. - Dyeing revenue increased by approximately 21.9% to approximately RMB64.9 million from RMB53.3 million in FY2023, driven by a rise in customer orders[44][50]. - Lace revenue decreased by approximately 30.3% to approximately RMB14.4 million from RMB20.7 million in FY2023, attributed to intense competition and reduced customer orders[45][51]. Operational Strategies - The Company is focusing on expanding its market presence and enhancing product offerings to drive future growth[15]. - New strategies are being implemented to address operational challenges and improve financial performance moving forward[15]. - The Group is strategically reallocating resources to reduce investments in lace manufacturing and dyeing operations while focusing on the growing footwear segment[26]. - The Group is establishing manufacturing partnerships in Southeast Asia to mitigate geographic concentration risk due to U.S. tariffs on Chinese imports[29]. - The Group is expanding into domestic consumption channels through IP-driven merchandising and enhancing digital distribution capabilities[30]. Expenses and Investments - Selling and distribution expenses rose approximately 1.1 times to RMB34.2 million from RMB16.2 million in FY2023, primarily due to increased commission expenses aligned with footwear revenue growth[56][60]. - Administrative expenses increased approximately 1.2 times to RMB39.5 million from RMB17.8 million in FY2023, mainly due to higher staff costs from increased headcount[57][61]. - Capital expenditures for the reporting period amounted to approximately RMB 1.7 million, an increase of 13.3% from RMB 1.5 million in 2023[77]. - The Group had capital commitments of approximately RMB 32.4 million related to financial support for a joint venture, a new commitment compared to nil in 2023[83]. Governance and Management - The company has a strong governance structure with independent non-executive directors overseeing management[146]. - The board includes members with extensive experience in various sectors, enhancing strategic decision-making capabilities[150]. - The company is focused on maintaining compliance and governance standards through its experienced board members[156]. - The Group's management is responsible for daily operations, with periodic reporting to the Board on business decisions[196]. - The Board is committed to improving operational efficiency and strengthening risk control measures during the reporting period[171]. Future Plans and Developments - The Group plans to host the CR7® LIFE Museum Hong Kong starting July 2025, aiming to contribute to Hong Kong's sports tourism and cultural sectors[32]. - The Group continues to seek new business development opportunities[103]. - The Group has no specific plans for major investments or acquisitions at the date of this annual report but will continue to seek new business development opportunities[99]. Employee Information - As of December 31, 2024, the Group had 512 employees, a decrease from 527 employees in 2023[86]. - Total employee benefit expenses for the reporting period were approximately RMB 54.0 million, an increase of 48.6% from RMB 36.4 million in 2023[86].

Financial Performance - The group's revenue for the year ended December 31, 2024, was approximately RMB 584.5 million, an increase of about 84.2% compared to the fiscal year 2023[5] - The gross profit for the same period was approximately RMB 57.5 million, representing an increase of approximately 141.1% from the previous year[5] - The loss attributable to the owners of the company was approximately RMB 12.8 million, an increase of about 26.4% compared to the fiscal year 2023[5] - The basic and diluted loss per share for the year was approximately RMB 1.01[5] - The company reported a net loss for the year of RMB 12.8 million, compared to a net loss of RMB 10.1 million in 2023[7] - The net loss attributable to the owners of the company for 2024 was RMB 12,753,000, compared to RMB 10,091,000 in 2023, indicating an increase in losses of 26.3%[33] - The basic and diluted loss per share for 2024 was RMB 1.01, compared to RMB 0.80 in 2023, reflecting a 26.3% increase in loss per share[33] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 492.8 million, slightly up from RMB 492.2 million in 2023[8] - Total liabilities increased to RMB 189.2 million in 2024 from RMB 176.3 million in 2023[9] - The company's cash and cash equivalents decreased to RMB 231.9 million from RMB 269.0 million in the previous year[8] - The company’s equity attributable to owners decreased to RMB 303.7 million from RMB 315.9 million in 2023[8] - Current assets net value decreased to approximately RMB 158.3 million as of December 31, 2024, down from RMB 191.4 million as of December 31, 2023[91] - The group's total borrowings increased to approximately RMB 52.3 million as of December 31, 2024, up from RMB 36.9 million as of December 31, 2023[93] Revenue Segmentation - The footwear segment generated revenue of RMB 505,188 thousand in 2024, up 107.5% from RMB 243,376 thousand in 2023[19] - The footwear segment accounted for approximately 86.4% of total revenue, up from 76.7% in 2023[68] - Revenue from dyeing services was RMB 64.9 million, accounting for 11.1% of total revenue, while lace production and sales generated RMB 14.4 million, accounting for 2.5%[76] - The group's dyeing and finishing revenue increased by approximately 21.9% to RMB 64.9 million during the reporting period, up from RMB 53.3 million in the fiscal year 2023[78] - Lace product revenue decreased by approximately 30.3% to RMB 14.4 million, down from RMB 20.7 million in the fiscal year 2023 due to intense market competition[79] - Footwear business revenue surged by approximately 107.6% to RMB 505.2 million, compared to RMB 243.4 million in the fiscal year 2023[80] Expenses - In 2024, the cost of raw materials and goods consumed increased to RMB 477,110,000 from RMB 242,584,000 in 2023, representing a 96.5% increase[24] - Employee benefits expenses, including director remuneration, rose to RMB 54,022,000 in 2024 from RMB 36,449,000 in 2023, a 48.2% increase[24] - Total sales cost, sales and distribution expenses, and administrative expenses amounted to RMB 601,355,000 in 2024, compared to RMB 334,830,000 in 2023, reflecting an increase of 79.6%[24] - Other income decreased by approximately 59.2% to RMB 1.8 million, down from RMB 4.4 million in the fiscal year 2023, mainly due to reduced government subsidies[82] Research and Development - The group incurred research and development expenses of RMB 12,112 thousand in 2024, an increase from RMB 8,659 thousand in 2023[19] - Research and development expenses for 2024 were approximately RMB 12,112,000, up from RMB 8,659,000 in 2023, marking an increase of 39.5%[24] Joint Ventures and Investments - The group's investment in joint ventures amounted to RMB 32,410,000 as of December 31, 2024, with no prior investments recorded in 2023[38] - The total current assets of the joint venture as of December 31, 2024, were RMB 32,216,000, while current liabilities were RMB 32,416,000, resulting in a net liability of RMB 200,000[45] - The total comprehensive loss for the joint venture during the period from October 25, 2024, to December 31, 2024, was RMB 200,000, with the group's share of the loss being RMB 100,000[45] - The company has committed to providing a loan of up to HKD 70,000,000 (approximately RMB 64,820,000) to the joint venture for operational funding[41] - The group has committed to provide financial support of RMB 32,410,000 to joint ventures in 2024, compared to no such commitments in 2023[48] Corporate Governance and Compliance - The group has adhered to corporate governance codes during the reporting period, ensuring the protection of shareholder interests[110] - The audit committee was established on December 16, 2020, in accordance with the listing rules, consisting of three independent non-executive directors[114] - The group's auditor, Fuhua Mazhe CPA Limited, confirmed the consistency of the financial statements for the year ending December 31, 2024, with the draft financial statements[115] Future Plans and Strategies - The company is strategically reallocating resources to reduce further investment in lace manufacturing due to strong growth in the footwear business[71] - The company plans to establish manufacturing partnerships in Southeast Asia to mitigate geographical concentration risks due to new tariff policies[72] - The company is actively negotiating with well-known IP holders to enhance product differentiation and brand value[72] - The group has no specific plans for significant investments or acquisitions of major capital assets or other businesses as of the announcement date[106] Miscellaneous - The group has not declared or paid any dividends for the years ended December 31, 2024, and 2023[67] - The group has maintained the public float required by the listing rules as of the announcement date[113] - The group has not engaged in any purchases, sales, or redemptions of its listed securities during the reporting period[112] - The group has a share option plan in place, with a total of 126 million shares available for issuance, representing 10% of the issued share capital as of the adoption date[108] - No significant events occurred from the reporting period to the date of this announcement[116] - The annual performance announcement and annual report will be published on the Hong Kong Stock Exchange and the company's website[117] - The board expressed gratitude to all employees, shareholders, customers, suppliers, banks, and business partners for their support[118] - Changes in the nomination committee include the appointment of executive director Cai Linqi and independent non-executive director Zhou Jieting, effective March 28, 2025[119] - The board of directors includes executive directors and independent non-executive directors as of the announcement date[121]

Core Viewpoint - The Hong Kong Securities and Futures Commission has conducted an inquiry into the shareholding distribution of Yingxing Holdings, revealing significant concentration of ownership among a small number of shareholders [1][2]. Group 1: Shareholding Structure - As of November 15, 2024, a total of 25 shareholders and their associates collectively hold 279 million shares, representing 22.13% of the company's issued share capital [1]. - Additionally, 431 million shares, accounting for 34.17% of the issued share capital, are held by shareholders who acquired these shares directly or indirectly from the controlling shareholder through over-the-counter transactions [1]. - The total shares held by the controlling shareholder amount to 389 million shares, which is 30.83% of the issued share capital, along with 53.135 million shares held by two executive directors, representing 4.22% of the issued share capital. This brings the total ownership concentration to 91.35% of the company's issued share capital [1]. Group 2: Minority Shareholding - Only 109 million shares, which is 8.65% of the issued share capital, are held by other shareholders, indicating a highly concentrated ownership structure [2].

[Corporate Information](index=3&type=section&id=Corporate%20Information) This section provides essential company details and contact information [Key Financial Highlights](index=6&type=section&id=Key%20Financial%20Highlights) The company achieved significant revenue growth and a substantial reduction in net loss for the six months ended June 30 Financial Highlights for the Six Months Ended June 30 | Metric | 2024 (Unaudited) | 2023 (Unaudited) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | **Revenue (RMB thousands)** | 273,397 | 47,065 | +480.9% | | **Gross Profit/(Loss) (RMB thousands)** | 28,158 | (1,432) | Turned to Profit | | **Loss Before Income Tax (RMB thousands)** | (631) | (5,555) | Loss narrowed by 88.6% | | **Loss for the Period Attributable to Owners of the Company (RMB thousands)** | (948) | (5,552) | Loss narrowed by 82.9% | | **Loss Per Share - Basic and Diluted (RMB cents)** | (0.08) | (0.44) | Loss narrowed | [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's operational performance, financial results, and strategic outlook [Business Review and Outlook](index=7&type=section&id=Business%20Review%20and%20Outlook) The Group, a lace manufacturer and dyeing and finishing service provider, also engages in footwear business, with footwear revenue experiencing explosive growth, driving a 480.9% increase in total revenue and an 82.9% reduction in net loss, leading to a strategic shift towards the footwear segment - Strategic focus shifts: Due to the uncertain outlook for traditional lace manufacturing and dyeing and finishing businesses and the explosive growth in footwear, the Group will gradually reduce resource allocation to the former, redirecting its focus to the footwear business[9](index=9&type=chunk) - Future operational strategy: The company will adopt a prudent approach to existing operations while actively seeking new business opportunities, continuously improving production efficiency, reducing operating costs, and strengthening R&D and quality control[10](index=10&type=chunk) [Financial Review](index=9&type=section&id=Financial%20Review) The Group's financial performance significantly improved, with total revenue increasing from RMB 47.1 million to RMB 273.4 million, primarily driven by footwear, leading to a gross profit turnaround and a substantial reduction in net loss to RMB 0.9 million [Revenue Analysis](index=9&type=section&id=Revenue%20Analysis) The Group's total revenue increased by 480.9% to RMB 273 million, primarily driven by a significant surge in footwear business revenue to RMB 234 million, while dyeing and finishing services grew and lace business declined Revenue by Product Category (RMB thousands) | Product Category | H1 2024 | % of Total Revenue | H1 2023 | % of Total Revenue | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | :--- | | Dyeing and Finishing | 31,656 | 11.6% | 21,803 | 46.4% | +45.2% | | Lace | 7,342 | 2.7% | 11,876 | 25.2% | -38.2% | | Footwear | 234,399 | 85.7% | 13,386 | 28.4% | +1651.1% | | **Total** | **273,397** | **100.0%** | **47,065** | **100.0%** | **+480.9%** | - The explosive growth in footwear business revenue was primarily attributable to the contribution from a new customer[16](index=16&type=chunk) - All revenue was derived from Mainland China and Hong Kong[16](index=16&type=chunk) [Profitability Analysis](index=11&type=section&id=Profitability%20Analysis) The Group's profitability significantly improved, with gross profit turning from a RMB 1.4 million loss to a RMB 28.2 million profit, driven by footwear business growth, despite increased selling and administrative expenses, leading to an 82.9% reduction in net loss to RMB 0.9 million - The Group's gross profit position turned from a gross loss of **RMB 1.4 million** in the prior period to a gross profit of **RMB 28.2 million**, achieving a turnaround primarily due to the strong growth in the footwear business[17](index=17&type=chunk) - Selling and distribution expenses and administrative expenses significantly increased to **RMB 16.2 million** and **RMB 16.1 million**, respectively, primarily matching the revenue growth and increased headcount in the footwear business[17](index=17&type=chunk)[18](index=18&type=chunk) - Considering all factors, the Group's net loss for the period significantly decreased by **82.9%** from **RMB 5.5 million** in the prior period to **RMB 0.9 million**[18](index=18&type=chunk) [Liquidity, Capital Resources and Gearing](index=13&type=section&id=Liquidity%2C%20Capital%20Resources%20and%20Gearing) The Group maintained a robust financial position as of June 30, 2024, with net current assets increasing to RMB 195.2 million, a liquidity ratio of 2.6 times, and a low gearing ratio of 0.1 Key Capital and Liquidity Ratios | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net Current Assets (RMB) | approx. RMB 195.2 million | approx. RMB 191.4 million | | Current Ratio | approx. 2.6 times | approx. 2.1 times | | Cash and Cash Equivalents (RMB) | approx. RMB 212.4 million | approx. RMB 269.0 million | | Borrowings (RMB) | approx. RMB 37.2 million | approx. RMB 36.9 million | | Gearing Ratio | 0.1 | 0.1 | - The Group's assets and liabilities are primarily denominated in RMB, USD, and HKD; foreign exchange risk was not hedged during the period but is regularly monitored, with hedging considered as needed[22](index=22&type=chunk) [Human Resources](index=15&type=section&id=Human%20Resources) As of June 30, 2024, the Group had 472 employees, a decrease from 527 at the end of 2023, with total employee benefit expenses significantly increasing to RMB 26.1 million Employees and Staff Costs | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Number of Employees | 472 | 527 | | **Metric** | **H1 2024** | **H1 2023** | | Total Employee Benefit Expenses (RMB) | approx. RMB 26.1 million | approx. RMB 13.5 million | [Change in Use of Proceeds from IPO](index=16&type=section&id=Change%20in%20Use%20of%20Proceeds%20from%20IPO) The Board resolved to reallocate approximately HKD 16.9 million of unutilized IPO net proceeds from expanding dyeing and finishing capacity to repaying interest-bearing borrowings by December 31, 2024, due to weak market demand and sufficient existing capacity - The Board resolved to reallocate approximately **HKD 16.9 million** of unutilized net proceeds from the IPO to repay interest-bearing borrowings[29](index=29&type=chunk) - Reasons for the change in use include: weak market demand and unstable orders for dyeing and finishing and lace businesses; low utilization of existing production lines, sufficient to meet anticipated orders, making expansion not urgent; and existing boiler systems being adequate for production, without the need for further capacity enhancement[32](index=32&type=chunk)[33](index=33&type=chunk) - The Board believes that reallocating funds to repay borrowings will help reduce financial costs, improve the debt position, and align with the overall interests of the company and its shareholders[35](index=35&type=chunk) [Corporate Governance and Other Information](index=20&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's governance structure, director and shareholder interests, and securities-related information [Directors' and Shareholders' Interests](index=20&type=section&id=Directors'%20and%20Shareholders'%20Interests) As of June 30, 2024, Executive Director Mr. Cai Rongxing held a 35.99% stake, while other key shareholders included Mr. Lin Minqiang with 4.0% and Glorious Way Investments Limited with 34.01% Major Directors' and Shareholders' Interests (as of June 30, 2024) | Name/Entity | Capacity/Nature | Shareholding Percentage (Approx.) | | :--- | :--- | :--- | | Mr. Cai Rongxing | Interests in controlled corporations and beneficial owner | 35.99% | | Mr. Lin Minqiang | Interests in controlled corporations | 4.0% | | Glorious Way Investments Limited | Beneficial owner | 34.01% | | Ms. Hu Qiuxia | Spouse's interest (spouse of Mr. Cai Rongxing) | 35.99% | [Share Option Scheme and Securities](index=25&type=section&id=Share%20Option%20Scheme%20and%20Securities) The company adopted a share option scheme on December 16, 2020, but no options have been granted as of June 30, 2024, and no listed securities were purchased, sold, or redeemed during the period - As of the end of the reporting period, the company had not granted any share options under its share option scheme[53](index=53&type=chunk)[56](index=56&type=chunk) - During the reporting period, the company did not conduct any repurchase, sale, or redemption of its listed securities, nor did it issue any new equity securities[54](index=54&type=chunk)[55](index=55&type=chunk)[57](index=57&type=chunk) [Report on Review of Interim Financial Information](index=27&type=section&id=Report%20on%20Review%20of%20Interim%20Financial%20Information) The company's interim financial information has been reviewed by its auditor, Freema & Mazars CPA Limited, who found no material non-compliance with HKAS 34 - The company's auditor, Freema & Mazars CPA Limited, has reviewed the interim financial information in accordance with Hong Kong Review Engagements Standards and concluded that nothing has come to their attention to suggest that the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[67](index=67&type=chunk) [Condensed Consolidated Financial Statements](index=29&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated financial statements, including income, comprehensive income, financial position, equity changes, and cash flows [Condensed Consolidated Income Statement](index=29&type=section&id=Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2024, the Group reported RMB 273 million in revenue, RMB 28.16 million in gross profit, an operating loss of RMB 0.574 million, a pre-tax loss of RMB 0.631 million, and a loss attributable to owners of RMB 0.948 million [Condensed Consolidated Statement of Comprehensive Income](index=30&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) After accounting for an exchange difference loss of RMB 0.17 million, the total comprehensive loss attributable to owners for the six months ended June 30, 2024, was RMB 1.118 million [Condensed Consolidated Statement of Financial Position](index=31&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets were RMB 443 million, total liabilities RMB 128 million, and total equity RMB 315 million, with non-current assets primarily property, plant, and equipment, and current assets mainly cash and trade receivables [Condensed Consolidated Statement of Changes in Equity](index=33&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2024, the Group's total equity was RMB 315 million, a slight decrease from RMB 316 million at the beginning of the year, primarily reflecting the total comprehensive loss of RMB 1.118 million for the period [Condensed Consolidated Statement of Cash Flows](index=36&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2024, the Group experienced net cash outflows of RMB 53.06 million from operating activities, RMB 1.43 million from investing activities, and RMB 2.12 million from financing activities, resulting in a net decrease of RMB 56.61 million in cash and cash equivalents [Notes to the Condensed Consolidated Interim Financial Information](index=38&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed explanatory notes to the condensed consolidated interim financial information, offering further context and breakdown of reported figures

Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately RMB 273.4 million, an increase of about 480.9% compared to RMB 47.1 million for the same period in 2023[2] - The gross profit for the same period was approximately RMB 28.2 million, compared to a gross loss of approximately RMB 1.4 million in 2023[2] - The loss attributable to the company's owners was approximately RMB 0.9 million, a decrease of about 82.9% from RMB 5.6 million in the same period of 2023[2] - The basic and diluted loss per share attributable to the company's owners was approximately RMB 0.08, compared to RMB 0.44 in 2023[3] - The company reported a total segment performance of RMB 28,158 thousand for the six months ended June 30, 2024, compared to a loss of RMB 1,432 thousand in the same period of 2023[11] - The company recorded a net loss attributable to owners of RMB 948,000 for the six months ended June 30, 2024, compared to a net loss of RMB 5,552,000 for the same period in 2023[25] - The group recorded a net loss of approximately RMB 0.9 million during the interim period, a decrease of about 82.9% compared to the same period in 2023[51] Revenue Breakdown - The revenue from the manufacturing lace segment was RMB 7,342 thousand, down from RMB 11,876 thousand in 2023, indicating a decline of about 38%[11] - The revenue from the dyeing and finishing services segment increased to RMB 31,656 thousand from RMB 21,803 thousand, reflecting a growth of approximately 45%[11] - The footwear segment generated revenue of RMB 234,399 thousand, a substantial increase from RMB 13,386 thousand in the previous year, marking a growth of around 1,600%[11] - Revenue recognized over time from service provision was RMB 38,998 thousand for the six months ended June 30, 2024, compared to RMB 33,679 thousand in 2023, showing an increase of about 16%[12] - Revenue from product sales at a point in time was RMB 234,399 thousand, a significant rise from RMB 13,386 thousand in the previous year, indicating a growth of approximately 1,600%[12] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 442.7 million, down from RMB 492.2 million as of December 31, 2023[5] - Total liabilities decreased to RMB 127.9 million as of June 30, 2024, from RMB 176.3 million as of December 31, 2023[6] - The company's cash and cash equivalents were RMB 212.4 million as of June 30, 2024, compared to RMB 269.0 million at the end of 2023[5] - Trade receivables as of June 30, 2024, were RMB 84,568,000, an increase from RMB 81,377,000 as of December 31, 2023, representing a growth of about 3%[29] - The total trade payables as of June 30, 2024, were RMB 68,164,000, down from RMB 108,793,000 as of December 31, 2023, reflecting a decrease of approximately 37.3%[36] Expenses - Total expenses for the six months ended June 30, 2024, amounted to RMB 277,675,000, a significant increase from RMB 56,375,000 in the same period of 2023[17] - Research and development expenses for the six months ended June 30, 2024, amounted to RMB 8,603 thousand, compared to RMB 6,546 thousand in 2023, representing an increase of approximately 31%[11] - Selling and distribution expenses increased 23.7 times to approximately RMB 16.2 million, correlating with the rise in footwear revenue[48] - Administrative expenses rose significantly to RMB 1,377,000 for the six months ended June 30, 2024, compared to RMB 443,000 for the same period in 2023, marking an increase of approximately 211%[28] Cash Flow and Financing - The group had borrowings of approximately RMB 37.2 million as of June 30, 2024, compared to RMB 36.9 million as of December 31, 2023[52] - The net financing cost for the interim period was approximately RMB 0.1 million, compared to a net financing income of about RMB 1.1 million in the same period of 2023[50] - The group plans to reallocate approximately HKD 16.9 million of unutilized proceeds for repaying interest-bearing borrowings by December 31, 2024[60] Corporate Governance and Compliance - The company has adopted a set of corporate governance practices in compliance with the corporate governance code[69] - The audit committee reviewed the group's unaudited interim financial information during the interim period[67] Future Outlook - The company plans to gradually reduce investments in lace manufacturing and dyeing services, focusing more on the footwear business to mitigate risks and improve financial performance[40] - The company aims to enhance production efficiency and reduce operating costs while adhering to environmental policies and strengthening R&D capabilities[40] - The demand for dyeing services and lace products is still recovering and has not yet returned to pre-pandemic levels[62]

Financial Performance - Total revenue for the year 2023 was RMB 317,353,000, a significant increase from RMB 134,155,000 in 2022[8] - Gross profit for 2023 was RMB 23,846,000, compared to a loss of RMB 3,811,000 in 2022[8] - The company reported a loss attributable to owners of the company of RMB 8,665,000 for the year 2023[8] - The net loss attributable to owners of the company was approximately RMB10.1 million for the Reporting Period, an increase of approximately 12.9% from RMB8.9 million in 2022[16] - The Group recorded a net loss of approximately RMB10.1 million for the Reporting Period, compared to a net loss of approximately RMB8.9 million for the year ended 31 December 2022[48] - Other income decreased by approximately 18.0% from approximately RMB5.4 million for the year ended 31 December 2022 to approximately RMB4.4 million for the Reporting Period, mainly due to a reduction in one-off government grants[33] - Other gains, net for the Reporting Period were approximately RMB2.5 million, a decrease of approximately 41.1% from approximately RMB4.2 million for the year ended 31 December 2022, primarily due to exchange differences from foreign currency translations[34] Revenue Breakdown - The footwear business segment accounted for approximately 76.7% of total revenue in 2023, up from 38.2% in 2022[12] - The entire revenue for 2023 was derived from Mainland China and Hong Kong, totaling RMB317.4 million[28] - The Group recorded footwear revenue of approximately RMB243.4 million for the Reporting Period, representing an increase of approximately 3.7 times from approximately RMB51.3 million for the year ended 31 December 2022[31]. - Revenue from dyeing services decreased by approximately 5.0% from RMB56.1 million in 2022 to RMB53.3 million in 2023[29] - Lace revenue decreased by approximately 22.7% from RMB26.8 million in 2022 to RMB20.7 million in 2023[30] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 492,175,000, an increase from RMB 354,943,000 in 2022[9] - Total liabilities were RMB 176,291,000 in 2023, compared to RMB 29,045,000 in 2022[9] - Total equity decreased to RMB 315,884,000 in 2023 from RMB 325,898,000 in 2022[9] - The Group had net current assets of approximately RMB191.4 million as at 31 December 2023, with a current ratio decreasing from approximately 7.7 times to approximately 2.1 times during the same period[48] - As of December 31, 2023, the Group had cash and cash equivalents of approximately RMB 269.0 million, an increase of 43.1% from RMB 187.9 million in 2022[49] - The Group's borrowings amounted to approximately RMB 36.9 million as of December 31, 2023, compared to nil in 2022[49] - The gearing ratio as of December 31, 2023, was 0.1, indicating the Group's total debt relative to total equity[49] Business Strategy and Operations - The company aims to enhance its market presence and explore new strategies for growth in the coming years[11] - The company plans to gradually reduce investment in the lace manufacturing and dyeing business and shift focus to the footwear business due to its explosive growth[17] - The company aims to enhance production efficiency, reduce operating costs, and strengthen research and development capabilities[18] - The footwear business's growth is expected to continue as the company aligns with fashion trends and market demand[17] - The company is focused on strategic planning and overall budget management to navigate the current economic challenges[68] Management and Governance - The company has undergone significant leadership changes, with new appointments aimed at enhancing operational efficiency and strategic direction[76][77] - The management team brings a wealth of experience from various sectors, enhancing the company's strategic planning and execution capabilities[75][76][78] - The Board consists of four executive Directors and three independent non-executive Directors, ensuring a balanced composition for effective leadership[99] - The Company has adopted corporate governance practices that align with the Corporate Governance Code as set out in the Listing Rules[87] - The Board will continue to review and improve corporate governance practices to ensure compliance with the Corporate Governance Code[89] ESG and Sustainability - The Group has established an ESG governance structure, which includes a Board and an ESG working group, to integrate ESG into business operations[185] - The Group has set targets to reduce emissions from business operations and evaluate the effectiveness of its ESG policies[184] - The Group emphasizes the importance of implementing appropriate ESG strategies for sustainable corporate development[188] - The Group is committed to complying with all relevant laws and regulations related to its business operations, including health and safety and environmental standards[188] - The Group has implemented stringent environmental protection policies to comply with the latest environmental laws and regulations[199] Employee and Operational Efficiency - The total employee benefit expenses for the Reporting Period were approximately RMB 36.4 million, up from RMB 32.4 million in 2022, reflecting a 12.3% increase[55] - As of December 31, 2023, the Group employed 527 employees, an increase of 45.6% from 362 employees in 2022[55] - Selling and distribution expenses increased approximately 8.7 times from approximately RMB1.7 million for the year ended 31 December 2022 to approximately RMB16.2 million for the Reporting Period, in line with the increase in footwear revenue[40] - Administrative expenses increased by approximately 23.6% from approximately RMB14.4 million for the year ended 31 December 2022 to approximately RMB17.8 million for the Reporting Period, mainly due to hiring more staff to manage the footwear business[41] Audit and Compliance - The company maintains an effective internal control and risk management system to safeguard shareholder investments and group assets, with annual reviews conducted by the board[151] - The consolidated financial statements of the Group for the Reporting Period comply with applicable accounting standards and the Listing Rules, with adequate disclosures made[131] - The Company received written annual confirmations of independence from all independent non-executive Directors, affirming their independence as per Listing Rule 3.13[97] - The Company has established an Audit Committee to review the Group Anti-Bribery and Anti-Corruption Policy periodically[88] - The appointment of Mazars CPA Limited as the new auditor took effect on December 4, 2023, following the resignation of PricewaterhouseCoopers[146]

Financial Performance - The group's revenue for the year ended December 31, 2023, was approximately RMB 317.4 million, an increase of about 136.6% compared to RMB 134.2 million in the same period of 2022[2]. - The gross profit for the year was approximately RMB 23.8 million, compared to a gross loss of approximately RMB 3.8 million in 2022[2]. - The net loss attributable to the company for the year was approximately RMB 10.1 million, an increase of about 12.9% from RMB 8.9 million in the same period of 2022[2]. - The basic and diluted loss per share for the year was approximately RMB 0.80[3]. - The company reported a net loss attributable to shareholders for 2023 was RMB 10,091,000, compared to a net loss of RMB 8,937,000 in 2022, resulting in a basic and diluted loss per share of RMB 0.80[27]. - The company’s other income decreased by approximately 18.0% to RMB 4.4 million from RMB 5.4 million for the year ended December 31, 2022, primarily due to a reduction in one-time government subsidies related to the company's listing[57]. - The group recorded a net loss of approximately RMB 10.1 million for the reporting period, compared to a net loss of RMB 8.9 million in the previous year[64]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 492.2 million, compared to RMB 354.9 million as of December 31, 2022[5]. - Current assets increased to RMB 363.3 million in 2023 from RMB 208.8 million in 2022[5]. - Total liabilities increased significantly to RMB 176.3 million in 2023 from RMB 29.0 million in 2022[7]. - The company's equity attributable to owners decreased to RMB 315.9 million in 2023 from RMB 325.9 million in 2022[6]. - As of December 31, 2023, the total net book value of properties, plants, and equipment is RMB 128,340,000, a decrease from RMB 145,122,000 as of December 31, 2022, representing a decline of approximately 11.5%[28]. - The total amount of cash flow forecasts for the lace and dyeing business is based on a five-year financial budget approved by the board of directors, with long-term growth rates aligned with industry averages[31]. Segment Performance - The company reported segment revenues for 2023 as follows: Lace manufacturing at RMB 20,690 thousand, Dyeing services at RMB 53,287 thousand, and Footwear business at RMB 243,376 thousand, totaling RMB 317,353 thousand, compared to RMB 134,155 thousand in 2022[13]. - The footwear segment generated revenue of approximately RMB 243.4 million, representing a growth of approximately 370% from RMB 51.3 million for the year ended December 31, 2022[56]. - The lace manufacturing and dyeing services experienced a decline, with lace revenue decreasing by approximately 22.7% to RMB 20.7 million from RMB 26.8 million for the year ended December 31, 2022[55]. - The company reported a segment performance loss in Dyeing services of RMB (7,327) thousand in 2023, an improvement from RMB (8,223) thousand in 2022[13]. Expenses and Costs - Total expenses for 2023 included raw materials and goods consumed amounting to RMB 242,584,000, a significant increase from RMB 72,543,000 in 2022[19]. - Sales and distribution expenses increased approximately 8.7 times from RMB 1.7 million to RMB 16.2 million, correlating with revenue growth in the footwear business[59]. - Administrative expenses rose by approximately 23.6% from RMB 14.4 million to RMB 17.8 million, primarily due to increased staffing in Hong Kong and mainland China[60]. - The company incurred research and development expenses of RMB 8,659 thousand in 2023, compared to RMB 8,586 thousand in 2022, indicating ongoing investment in innovation[13]. Cash Flow and Financing - The company reported a net financing income of RMB 1,954,000 for 2023, down from RMB 2,327,000 in 2022[22]. - The company’s interest-bearing loans amounted to RMB 33.4 million, with a fixed annual interest rate of 8.0%[45]. - The group had borrowings of approximately RMB 36.9 million as of December 31, 2023, compared to no borrowings in the previous year[65]. Corporate Governance and Compliance - The company has adhered to corporate governance codes and standards during the reporting period[78]. - The audit committee was established on December 16, 2020, consisting of three independent non-executive directors[82]. - The group's auditor confirmed that the financial statements for the year ending December 31, 2023, are consistent with the draft financial statements[83]. Future Outlook and Strategy - The company plans to gradually reduce investment in lace manufacturing and dyeing services, focusing more on the footwear business to mitigate risks and improve financial performance[49]. - The company aims to enhance production efficiency and reduce operating costs while complying with environmental policies and strengthening R&D capabilities[50]. - The company plans to enhance dyeing and finishing service capabilities through upgrades and purchases of machinery and facilities, allocating HKD 49.9 million for this purpose[75]. - The company will continue to seek new business development opportunities despite not having specific plans for major investments or acquisitions[73].

Financial Performance - For the six months ended June 30, 2023, the Group's revenue decreased by approximately 41.5% to approximately RMB 47.1 million from approximately RMB 80.4 million for the same period in 2022[8]. - The Group recorded a net loss of RMB 5.6 million for the Interim Period, compared to a net profit of approximately RMB 4.9 million for the six months ended June 30, 2022[8]. - Gross profit for the Interim Period was RMB (1.4) million, a decline from RMB 80.4 million in the previous year[7]. - Loss before income tax for the Interim Period was RMB 5.6 million, compared to a profit of RMB 4.3 million for the same period in 2022[7]. - Basic and diluted loss per share for the Interim Period was RMB (0.44), compared to earnings of RMB 0.39 per share in the previous year[7]. - The Group recorded a gross loss of approximately RMB 1.4 million for the Interim Period, compared to a gross profit of approximately RMB 4.3 million for the same period in 2022[22]. - The Group recorded a net loss of approximately RMB 5.6 million for the Interim Period, compared to a net profit of approximately RMB 4.9 million for the six months ended 30 June 2022[25]. - The Company reported a basic and diluted loss per share of RMB 0.44 for the six months ended June 30, 2023, compared to earnings per share of RMB 0.39 in the previous year[68]. - The net loss for the period was RMB 5,552,000, compared to a profit of RMB 4,897,000 for the same period in 2022, indicating a significant shift in performance[79]. Revenue Breakdown - The Group's revenue for the six months ended June 30, 2023, was approximately RMB 47.1 million, a decrease of about 41.3% from RMB 80.4 million for the same period in 2022[13]. - Dyeing revenue decreased by approximately 28.2% from RMB 30.4 million in the first half of 2022 to RMB 21.8 million in the Interim Period[16]. - Lace revenue fell by approximately 9.8% from RMB 13.2 million in the first half of 2022 to RMB 11.9 million in the Interim Period[17]. - Footwear trading revenue decreased significantly from RMB 36.9 million in the first half of 2022 to RMB 13.4 million in the Interim Period, reflecting a challenging market environment[21]. - Revenue from the manufacturing of lace segment was RMB 11,876,000, down 10% from RMB 13,167,000 in 2022[99]. - Revenue from the provision of dyeing services was RMB 21,803,000, a decline of 28.3% from RMB 30,355,000 in 2022[99]. - Sales of shoes generated revenue of RMB 13,386,000, a significant drop of 63.7% compared to RMB 36,864,000 in 2022[99]. - Revenue recognized over time from the provision of services was RMB 33,679,000, down 22.7% from RMB 43,522,000 in 2022[102]. - Revenue from sales of goods at a point in time was RMB 13,386,000, a decrease of 63.7% from RMB 36,864,000 in 2022[102]. - The Group's revenue from the PRC was RMB 33,384,000, down 22.4% from RMB 43,031,000 in 2022[106]. - Revenue from Hong Kong customers was RMB 13,387,000, a decrease of 63.7% from RMB 36,953,000 in 2022[106]. - Major customer A contributed RMB 13,386,000, representing a significant decline from RMB 36,864,000 in 2022[109]. Expenses and Costs - Other income dropped from approximately RMB 4.6 million in the first half of 2022 to approximately RMB 0.3 million in the Interim Period, primarily due to one-off government grants received in the previous period[22]. - Selling and distribution expenses decreased by approximately 24.7% from RMB 0.9 million in the first half of 2022 to RMB 0.7 million in the Interim Period[22]. - Administrative expenses increased from approximately RMB 6.5 million in the first half of 2022 to approximately RMB 6.8 million in the Interim Period due to increased headcount for the footwear business[22]. - The total cost of sales, selling and distribution expenses, administrative expenses, and net impairment losses on financial assets and contract assets amounted to RMB 56,375,000, down 32.5% from RMB 83,489,000 in the previous year[112]. - Employee benefit expenses decreased to RMB 13,482,000, down 16.5% from RMB 16,108,000 in the prior year[112]. - The cost of sales for the six months ended June 30, 2023, was RMB 7,560, compared to RMB 8,166 for the same period in 2022, representing a decrease of approximately 7.4%[131]. Cash Flow and Assets - Cash and cash equivalents increased to approximately RMB 193.4 million as of June 30, 2023, up from approximately RMB 187.9 million as of December 31, 2022[27]. - The Company reported a net increase in cash and cash equivalents of RMB 5,377,000 for the six months ended June 30, 2023, compared to RMB 13,095,000 in the previous year, reflecting a decrease of 59%[86]. - Cash generated from operating activities for the six months ended June 30, 2023, was RMB 3,531,000, a decrease of 75.6% from RMB 14,411,000 in the prior year[84]. - Net cash used in investing activities was RMB 1,741,000, compared to RMB 2,017,000 in the same period of 2022, showing a slight reduction in cash outflow[86]. - The total assets as of June 30, 2023, were RMB 355,158, slightly up from RMB 354,943 as of December 31, 2022[73]. - The Company’s total equity decreased to RMB 320,468 as of June 30, 2023, from RMB 325,898 at the end of 2022[75]. - The statutory reserve as of June 30, 2023, was RMB 19,022,000, which is consistent with the previous year, indicating stable compliance with regulatory requirements[79]. - Other reserves totaled RMB 104,466,000 as of June 30, 2023, unchanged from the previous year, reflecting no new appropriations or distributions[79]. Employee and Management Information - As of June 30, 2023, the group had a total of 344 employees, a decrease from 362 employees as of December 31, 2022[32]. - Key management compensation for the six months ended June 30, 2023, totaled RMB 877,000, which is an increase of 179.3% compared to RMB 314,000 for the same period in 2022[170]. - The total employee benefit expenses for the Interim Period were approximately RMB 13.5 million, down from approximately RMB 16.1 million for the six months ended June 30, 2022[30]. Corporate Governance and Compliance - The Company has adopted corporate governance practices in line with the Corporate Governance Code and complied with its provisions during the Interim Period[62]. - The Company’s directors confirmed compliance with the Model Code for securities transactions during the Interim Period[62]. - The interim financial information has not been audited[89]. - The Company did not allot or issue any equity securities during the Interim Period[60]. - No purchases, sales, or redemptions of the Company's listed securities occurred during the Interim Period[60]. Shareholder Information - Mr. Tsoi Wing Sing holds 65.0% of the shares in the company, while Mr. Lin Minqiang holds 10.0%[43]. - As of June 30, 2023, Glorious Way Investments Limited holds 794,000,000 shares, representing approximately 63.02% of the company's issued shares[50]. - Ms. Wu Chou Har, spouse of Mr. Tsoi Wing Sing, has an interest in 819,000,000 shares, equating to approximately 65.0% of the company's issued shares[50]. - Deyong Investment holds 126,000,000 shares, which is approximately 10.0% of the company's issued shares[50]. - The total issued share capital was RMB 12,600,000, with 1,260,000,000 shares issued, reflecting a nominal value of RMB 10,511,000[149]. Risks and Financial Instruments - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk, with a focus on minimizing potential adverse effects on financial performance[95]. - There have been no significant changes in the risk management policies since the year-end[95]. - The Group did not have any financial assets or liabilities measured at fair value as of June 30, 2023[95]. - The carrying amounts of the Group's financial assets and liabilities approximate their fair values as of June 30, 2023, and December 31, 2022[95].

Financial Performance - The group's revenue for the six months ended June 30, 2023, was approximately RMB 47.1 million, a decrease of about 41.5% compared to RMB 80.4 million for the same period in 2022[2] - The group reported a gross loss of approximately RMB 1.4 million for the six months ended June 30, 2023, compared to a gross profit of approximately RMB 4.3 million for the same period in 2022[2] - The company recorded a loss attributable to owners of the company of approximately RMB 5.6 million for the six months ended June 30, 2023, compared to a profit of approximately RMB 4.9 million for the same period in 2022[2] - The basic and diluted loss per share attributable to owners of the company was approximately RMB 0.44 for the six months ended June 30, 2023, compared to earnings of RMB 0.39 for the same period in 2022[3] - The company reported a net loss attributable to shareholders of RMB (5,552) thousand for the six months ended June 30, 2023, compared to a profit of RMB 4,897 thousand in the same period of 2022[29] - The company recorded a net loss of approximately RMB 5.6 million for the period, compared to a net profit of approximately RMB 4.9 million for the six months ended June 30, 2022[55] Revenue Breakdown - Revenue from the manufacturing of lace was RMB 11,876 thousand, down 10% from RMB 13,167 thousand in the previous year[16] - Revenue from dyeing services was RMB 21,803 thousand, a decline of 28.4% from RMB 30,355 thousand in the prior year[16] - Revenue from footwear sales was RMB 13,386 thousand, a significant drop of 63.7% compared to RMB 36,864 thousand in the same period last year[16] - Revenue recognized over time from services was RMB 33,679 thousand, down 22.6% from RMB 43,522 thousand in the previous year[17] - Revenue from product sales at a point in time was RMB 13,386 thousand, a decrease of 63.7% from RMB 36,864 thousand in the prior year[17] - Revenue from customers located in China was RMB 33,384 thousand, down 22.4% from RMB 43,031 thousand in the previous year[18] - Revenue from customers in Hong Kong was RMB 13,387 thousand, a decline of 63.7% compared to RMB 36,953 thousand in the same period last year[18] - Customer A contributed RMB 13,386 thousand to total revenue, representing a significant decrease from RMB 36,864 thousand in the previous year[19] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 355.2 million, slightly up from RMB 354.9 million as of December 31, 2022[5] - The total equity attributable to owners of the company decreased to RMB 320.5 million as of June 30, 2023, from RMB 325.9 million as of December 31, 2022[6] - The group’s non-current assets were valued at RMB 138.1 million as of June 30, 2023, down from RMB 146.2 million as of December 31, 2022[5] - Current assets increased to RMB 217.0 million as of June 30, 2023, compared to RMB 208.8 million as of December 31, 2022[5] - The group’s total liabilities increased to RMB 34.7 million as of June 30, 2023, from RMB 29.0 million as of December 31, 2022[8] Expenses - For the six months ended June 30, 2023, the cost of sales, selling and distribution expenses, administrative expenses, and impairment losses totaled RMB 56,375 thousand, a decrease of 32.4% from RMB 83,489 thousand in the same period of 2022[22] - Employee benefits expenses, including directors' remuneration, were RMB 13,482 thousand, down 16.5% from RMB 16,108 thousand in the previous year[22] - The total sales cost for the six months ended June 30, 2023, was RMB 7,560 thousand, a decrease of 7.4% compared to RMB 8,166 thousand for the same period in 2022[33] - Administrative expenses increased to approximately RMB 6.8 million from RMB 6.5 million for the six months ended June 30, 2022, attributed to an increase in personnel for the footwear business[52] Government Grants and Other Income - The company received government grants totaling RMB 204 thousand, significantly lower than RMB 4,265 thousand in the same period last year[22] - Other income decreased from approximately RMB 46 million to about RMB 3 million, mainly due to a one-time government subsidy related to the company's listing received in the previous period[49] - Other income for the period was approximately RMB 2.4 million, a slight decrease from RMB 2.5 million for the six months ended June 30, 2022[50] Future Plans and Investments - The company plans to invest more resources in the footwear business and strengthen its team for design, development, manufacturing, and sales to domestic and international customers[41] - The company aims to expand its customer base and product variety to mitigate business risks and enhance shareholder benefits[41] - The company plans to upgrade and purchase machinery and facilities to enhance dyeing service capacity, with an allocation of HKD 49.9 million, of which HKD 36.5 million has been utilized[65] - Research and development capabilities for dyeing services have been allocated HKD 3.4 million, fully utilized as of June 30, 2023[65] - The company has replaced coal boilers with natural gas boilers, allocating HKD 13.6 million, with HKD 7.9 million utilized[65] Corporate Governance and Compliance - The company has complied with the corporate governance code during the interim period[71] - The audit committee has reviewed the interim financial information and internal controls during the interim period[69] - The company has entered into a framework agreement for ongoing related party transactions, which requires independent shareholder approval[67] Miscellaneous - The company did not declare or pay any dividends for the six months ended June 30, 2023, and 2022[25] - The company has not disclosed any new product developments, market expansions, or strategic acquisitions in the current report[9] - The company had no significant contingent liabilities as of June 30, 2023, consistent with the situation as of December 31, 2022[61] - The company has not purchased, sold, or redeemed any of its listed securities during the interim period[68] - As of June 30, 2023, no stock options have been granted under the stock option plan, which allows for a total of 126 million shares, representing 10% of the issued shares[66]