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]

Financial Performance - Deyun Holding Ltd. reported a significant increase in revenue, achieving a total of $XX million for the fiscal year 2022, representing a YY% growth compared to the previous year[9]. - Revenue for the year ended 31 December 2022 was approximately RMB 134.2 million, representing a decrease of approximately 19.2% from RMB 165.9 million in 2021[18]. - The net loss attributable to owners of the Company for the Reporting Period was approximately RMB 8.9 million, compared to a net profit of approximately RMB 21.2 million for the year ended 31 December 2021[18]. - The Group recorded a gross loss of approximately RMB 3.8 million for the Reporting Period, compared to a gross profit of approximately RMB 39.2 million in 2021[34]. - The basic and diluted loss per share for the Reporting Period was RMB (0.71) cents, compared to earnings of RMB 1.70 cents in 2021[15]. - The Group's total revenue for the Reporting Period was approximately RMB134.2 million, a decrease of about 19.2% from RMB165.9 million for the year ended 31 December 2021[30]. - Other income increased by approximately 1.8 times from RMB1.9 million in 2021 to RMB5.4 million in the Reporting Period, mainly due to one-off government grants[34]. - Administrative expenses increased by approximately 39.2% from RMB10.3 million in 2021 to RMB14.4 million in the Reporting Period, primarily due to increased staffing in Hong Kong[35]. Business Strategy and Outlook - Deyun Holding Ltd. provided a positive outlook for the upcoming year, projecting a revenue growth of BB% driven by new product launches and market expansion strategies[9]. - The company is investing in R&D for innovative technologies, with a budget allocation of $CC million, aiming to enhance product offerings and improve user experience[9]. - Deyun Holding Ltd. is exploring potential acquisitions to strengthen its market position, with a focus on companies that complement its existing services[9]. - The management highlighted a strategic shift towards digital marketing, which is expected to increase customer engagement and drive sales growth by DD%[9]. - The company plans to enter new geographical markets, targeting a market share increase of GG% in the next fiscal year[9]. - The Company plans to invest more resources into the footwear business to strive for more customers and orders, aiming to improve future earnings[19]. Operational Efficiency and Financial Stability - The company reported a net profit margin of EE%, indicating improved operational efficiency compared to the previous fiscal year[9]. - Total liabilities decreased from RMB 45.5 million in 2021 to RMB 29.0 million in 2022, indicating improved financial stability[11]. - The Group's net current assets increased to approximately RMB181.7 million as of 31 December 2022, up from approximately RMB177.3 million in 2021, with the current ratio improving from approximately 5.1 times to approximately 7.7 times[38][41]. - Cash and cash equivalents amounted to approximately RMB187.9 million as of 31 December 2022, compared to approximately RMB182.3 million in 2021[39]. - The Group had no bank borrowings or undrawn banking facilities as of 31 December 2022 and 2021, resulting in a gearing ratio of nil[42]. Management and Governance - The company has undergone significant management changes with the appointment of multiple executive directors on September 30, 2022, enhancing its leadership team[66]. - The leadership team brings a wealth of industry experience, which is expected to contribute to the company's growth and market expansion[66]. - The Company has established whistleblowing channels for external parties to report misconduct confidentially or anonymously, with the Audit Committee reviewing the Anti-Bribery and Anti-Corruption Policy periodically[83]. - The Board currently comprises four executive Directors and three independent non-executive Directors, ensuring a diverse range of expertise and compliance in decision-making[92]. - The Company has complied with the Corporate Governance Code during the Reporting Period, with ongoing reviews to improve governance practices[85]. Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG report covers performance from January 1, 2022, to December 31, 2022[149]. - The Group aims to enhance profitability and improve risk management as part of its commitment to shareholders[157]. - The Group is focused on reducing environmental pollution and upgrading facilities to minimize emissions from production processes[159]. - The Group has implemented stringent environmental protection policies and installed air filtration facilities to enhance resource efficiency and reduce emissions[164]. - The Group received certification for its environmental management system in compliance with GB/T 24001–2016/ISO14001:2015 on 11 October 2018[164]. Emission and Waste Management - The Group's total greenhouse gas (GHG) emissions for the year ended December 31, 2022, were 38,209.38 tonnes CO2 equivalent, down from 53,508.62 tonnes in 2021, representing a significant reduction[175]. - The Group aims to reduce NOx, SOx, and PM emission intensity by 2% by the year 2027, with the baseline year being 2022[174]. - The Group has set a target to reduce hazardous and non-hazardous waste by 2% by the year 2027, with the baseline year being 2022, and the current status is in progress[191]. - The Group's hazardous waste includes 0.69 tonnes of waste mineral oil, 0.41 tonnes of effluent, and 0.58 tonnes of packaging materials contaminated by dye for the year ended December 31, 2022[191]. - The Group has not received any complaints or warnings regarding the disposal of hazardous and non-hazardous waste during the two years ended December 31, 2022[190].

Financial Performance - The group's revenue for the year ended December 31, 2022, was approximately RMB 134.2 million, a decrease of about 19.2% compared to the same period in 2021[2]. - The group reported a gross loss of approximately RMB 3.8 million for the year, compared to a gross profit of approximately RMB 39.2 million in 2021[2]. - The loss attributable to the company's owners was approximately RMB 8.9 million, compared to a profit of approximately RMB 21.2 million in the same period of 2021[2]. - The basic and diluted loss per share attributable to the company's owners was approximately RMB 0.71[3]. - The company's operating loss for the year was RMB 11.1 million, compared to an operating profit of RMB 22.7 million in 2021[3]. - The net loss attributable to shareholders for 2022 was RMB 8,937,000 compared to a profit of RMB 21,182,000 in 2021, indicating a significant decline[30]. - Basic and diluted loss per share for 2022 was RMB (0.71), down from RMB 1.70 in 2021[30]. - The group recorded a net loss attributable to shareholders of approximately RMB 8.9 million, compared to a net profit of approximately RMB 21.2 million for the year ended December 31, 2021[48]. Revenue Breakdown - Revenue from the manufacturing of lace was RMB 26,762,000 in 2022, down 52.4% from RMB 56,161,000 in 2021[14]. - Revenue from dyeing services was RMB 56,108,000 in 2022, a decrease of 40.4% from RMB 94,244,000 in 2021[14]. - Revenue from footwear sales increased significantly to RMB 51,285,000 in 2022, compared to RMB 15,537,000 in 2021[14]. - Revenue recognized over time from service provision was RMB 82,870,000 in 2022, down 44.9% from RMB 150,405,000 in 2021[15]. - Revenue from sales of goods at a point in time was RMB 51,285,000 in 2022, compared to RMB 15,537,000 in 2021[15]. - Revenue from mainland China was RMB 81,972,000 in 2022, a decrease of 44.7% from RMB 148,577,000 in 2021[16]. - Revenue from Hong Kong increased to RMB 51,379,000 in 2022, compared to RMB 16,232,000 in 2021[16]. - The revenue breakdown by product category shows dyeing services at RMB 56.1 million (41.8%), lace production at RMB 26.8 million (20.0%), and footwear sales at RMB 51.3 million (38.2%) for a total of RMB 134.2 million[51]. Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 354.9 million, down from RMB 380.2 million in 2021[5]. - The total equity attributable to the company's owners was RMB 325.9 million, a decrease from RMB 334.7 million in 2021[5]. - The group had cash and cash equivalents of RMB 187.9 million as of December 31, 2022, compared to RMB 182.3 million in 2021[5]. - Contract liabilities decreased to RMB 365,000 in 2022 from RMB 588,000 in 2021[18]. - Trade receivables decreased to RMB 9,374,000 in 2022 from RMB 21,289,000 in 2021, representing a significant decline of approximately 56.0%[38]. - As of December 31, 2022, the company's contract assets were RMB 6,198,000, down from RMB 8,320,000 in 2021, indicating a decrease of about 25.5%[38]. - The total amount of prepayments and other receivables decreased to RMB 597,000 in 2022 from RMB 9,430,000 in 2021, a decline of approximately 93.7%[36]. - The group's contract liabilities and other payables totaled RMB 13,447 thousand in 2022, down from RMB 19,308 thousand in 2021[45]. Expenses and Costs - Employee benefits expenses decreased to RMB 32,403,000 in 2022 from RMB 37,056,000 in 2021, a reduction of about 12%[22]. - Administrative expenses rose by approximately 39.2% to RMB 14.4 million, mainly due to hiring more staff in Hong Kong for managing the footwear trade business[60]. - The total cost of goods sold for 2022 was RMB 16,585,000, up from RMB 15,448,000 in 2021, which is an increase of about 7.4%[34]. - The company recognized a provision for inventory impairment of RMB 3,065,000 during the reporting period, compared to none in 2021[37]. Investments and Future Plans - The group plans to invest more resources in the footwear business to capture more customers and orders, aiming to improve financial performance[49]. - The group has not made any significant investments, acquisitions, or disposals during the reporting period[71]. - The group is actively seeking new business development opportunities despite not having specific plans for major investments or acquisitions[72]. Shareholder Information - The group has no plans to declare or pay dividends for the years ended December 31, 2022, and 2021[47]. - The company adopted a stock option plan on December 16, 2020, effective from January 13, 2021, aimed at attracting and retaining top talent, with a total of 126,000,000 shares available for issuance, representing 10% of the issued share capital as of the adoption date[76]. - The company will suspend share transfer registration from May 22, 2023, to May 25, 2023, to determine shareholder eligibility for the annual general meeting[77]. - The company has maintained compliance with the public float requirements as stipulated by the listing rules[81]. Audit and Compliance - The audit committee, established on December 16, 2020, consists of three independent non-executive directors and has reviewed the company's consolidated financial statements for the reporting period[82]. - The external auditor, PwC, confirmed that the preliminary financial results for the year ended December 31, 2022, align with the audited financial statements[83]. - There have been no significant events after the reporting period up to the date of this announcement[84]. - The company expresses gratitude to all stakeholders for their trust and support during the reporting period[85].

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 80,386,000, a decrease of 3.9% compared to RMB 83,059,000 for the same period in 2021[9]. - Gross profit for the interim period was RMB 4,306,000, significantly down from RMB 27,050,000 in the previous year, reflecting a gross margin decline[9]. - Profit before income tax for the six months ended June 30, 2022, was RMB 5,253,000, compared to RMB 22,945,000 for the same period in 2021, indicating a substantial decrease[9]. - Profit attributable to owners of the Company for the interim period was RMB 4,897,000, down from RMB 19,892,000 in the previous year, marking a decline of approximately 75.5%[9]. - Basic and diluted earnings per share for the six months ended June 30, 2022, were RMB 0.39, a decrease from RMB 1.61 in the same period of 2021[9]. - Operating profit decreased to RMB 3,970,000 from RMB 22,658,000 year-on-year, indicating a drop of approximately 82.5%[55]. - Total comprehensive income for the period attributable to owners of the Company was RMB 5,020,000, compared to RMB 19,892,000 in the previous year[57]. - Net profit for the Interim Period decreased by approximately 75.4% to approximately RMB4.9 million from approximately RMB19.9 million for the six months ended June 30, 2021[10]. Revenue Breakdown - Dyeing revenue decreased by approximately 42.5% from approximately RMB52.9 million for the six months ended June 30, 2021, to approximately RMB30.4 million for the Interim Period[17]. - Lace revenue decreased by approximately 56.1% from approximately RMB30.1 million for the six months ended June 30, 2021, to approximately RMB13.2 million for the Interim Period[17]. - Sales of shoes generated approximately RMB36.9 million in revenue for the Interim Period, compared to nil for the six months ended June 30, 2021[17]. - Revenue from the manufacturing of lace segment was RMB 13,167,000, down 56.3% from RMB 30,121,000 in 2021[85]. - The revenue from the provision of dyeing services was RMB 30,355,000, a decrease of 42.0% from RMB 52,938,000 in 2021[85]. - Revenue from the PRC was RMB 43,031,000, a decrease of 47.5% from RMB 82,096,000 in 2021[89]. - Revenue from Hong Kong was RMB 36,953,000, significantly up from RMB 484,000 in 2021[89]. Cost and Expenses - Total expenses included in cost of sales, selling and distribution expenses, and administrative expenses for the six months ended June 30, 2022, amounted to RMB 44,733,000, an increase from RMB 22,532,000 in 2021, representing a growth of approximately 98.2%[93]. - The cost of sales and selling and distribution expenses for the six months ended June 30, 2022, amounted to RMB 8,166,000, compared to RMB 7,547,000 in 2021, representing an increase of approximately 8.2%[114]. - The cost of inventories recognized as an expense during the six months ended June 30, 2022, was approximately RMB 44,733,000, compared to RMB 22,532,000 for the same period in 2021, representing a 98.1% increase[120]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 381,631,000, slightly up from RMB 380,215,000 at the end of 2021[59]. - Total liabilities decreased from RMB 45,509,000 as of December 31, 2021, to RMB 41,905,000 as of June 30, 2022, representing a reduction of approximately 8.8%[61]. - The Group had net current assets of approximately RMB189.9 million as at 30 June 2022, up from approximately RMB177.3 million as at 31 December 2021[20]. - The current ratio increased from approximately 5.1 times as at 31 December 2021 to approximately 5.8 times as at 30 June 2022[20]. - The Group's issued share capital was HKD 12.6 million with 1,260,000,000 ordinary shares as of June 30, 2022[21]. Cash Flow - Net cash generated from operating activities increased to RMB 15,117,000 for the six months ended June 30, 2022, compared to RMB 11,522,000 for the same period in 2021, reflecting an increase of approximately 31.5%[70]. - Cash flows used in investing activities decreased significantly from RMB 17,991,000 in the first half of 2021 to RMB 2,017,000 in the first half of 2022, indicating a reduction of approximately 88.8%[70]. - The cash and cash equivalents at the end of the period increased to RMB 195,512,000, up from RMB 186,464,000 in the previous year, representing a growth of 0.56%[72]. - The net increase in cash and cash equivalents for the period was RMB 13,095,000, compared to RMB 77,329,000 in the same period of 2021, indicating a significant decrease in cash generation[72]. Corporate Governance and Management - The Company is committed to maintaining strong corporate governance and transparency in its operations[8]. - The Group plans to use HKD 20.5 million of the unused balance from the IPO proceeds to expand dyeing service capacity by the end of 2022[31]. - The company has maintained compliance with the Securities and Futures Ordinance regarding the disclosure of interests by directors[41]. - The report indicates that there are no new strategies or significant changes in corporate governance disclosed during the reporting period[44]. Shareholder Information - The controlling shareholder of the company changed on June 17, 2022, with Deyong Investment Co., Ltd selling 724,500,000 shares, representing 57.50% of the issued shares[33]. - Following the completion of the sale and purchase agreement, the Offeror and parties acting in concert held a total of 884,905,000 shares, approximately 70.23% of the total issued shares[33]. - As of June 30, 2022, Mr. Lin Minqiang and other directors collectively held 126,000,000 shares, representing 10.0% of the total issued shares[37]. - The company announced a mandatory unconditional cash offer to acquire all issued shares not already owned by the Offeror on June 27, 2022[33]. Employee and Compensation - The Group had 434 employees as of June 30, 2022, down from 495 employees as of December 31, 2021, with total employee benefit expenses of approximately RMB 16.1 million[23]. - Key management compensation for the six months ended June 30, 2022, totaled RMB 314,000, slightly up from RMB 305,000 in the same period of 2021, representing a growth of 2.9%[146].

Financial Performance - Revenue for 2021 was RMB 165,942,000, a decrease of 16.4% from RMB 198,478,000 in 2020[10] - Gross profit for 2021 was RMB 39,194,000, down 47.1% from RMB 73,857,000 in 2020[10] - Profit before income tax for 2021 was RMB 24,080,000, a decline of 54.3% compared to RMB 52,593,000 in 2020[10] - The company reported a profit for the year attributable to owners of RMB 21,182,000, down 51.6% from RMB 43,821,000 in 2020[10] - The company's earnings per share dropped to 1.70 RMB cents from 4.64 RMB cents in the previous year[22] - The Group's net profit decreased from approximately RMB43.8 million to approximately RMB21.2 million, with a net profit margin dropping from approximately 22.1% to approximately 12.8% for the Reporting Period[45] Assets and Equity - Total assets increased to RMB 380,215,000 in 2021, up 26.7% from RMB 300,020,000 in 2020[11] - Total equity rose to RMB 334,706,000 in 2021, an increase of 50.0% from RMB 222,951,000 in 2020[11] - As of 31 December 2021, the Group had net current assets of approximately RMB177.3 million, up from approximately RMB74.2 million in 2020, with the current ratio increasing from approximately 2.0 times to approximately 5.1 times[45] - The Group had cash and cash equivalents of approximately RMB182.3 million as of 31 December 2021, compared to approximately RMB109.5 million in 2020[45] Sales and Revenue Breakdown - Dyeing services accounted for 56.8% of total revenue, while lace sales contributed 33.8%, with the footwear trading business generating 9.4% of total revenue[31] - Domestic sales accounted for 89.5% of total revenue, decreasing from RMB196.7 million in 2020 to RMB148.6 million in 2021, a decline of approximately 24.5%[33] - International sales increased significantly from RMB1.8 million in 2020 to RMB17.4 million in 2021, representing a growth of approximately 862.5%[33] - Dyeing revenue decreased by approximately 22.6% from RMB121.8 million in 2020 to RMB94.2 million in 2021, primarily due to COVID-19 disruptions and operational halts[34] - Lace revenue fell by approximately 26.8% from RMB76.7 million in 2020 to RMB56.2 million in 2021, impacted by similar operational challenges[35] Operational Challenges - The company faced operational disruptions due to a fire incident in February 2021 and subsequent COVID-19 outbreaks affecting customer operations[20][21] - The gross profit margin decreased due to rising costs of raw materials and production, impacting overall profitability[21] Future Strategies - The company plans to focus on market expansion and new product development in the upcoming year[14] - Future business strategies include expanding revenue streams, reducing operating costs, and complying with new environmental regulations[24][25] - The company aims to leverage market drivers such as rising disposable income and the growth of online retailing to enhance business performance[24][25] Governance and Management - The Group's management team includes individuals with extensive industry experience, enhancing operational oversight and strategic direction[69] - The company has established a Nomination Committee chaired by Ms. Lin Lili to oversee director appointments and governance[66] - The independent non-executive directors play a crucial role in supervising the management of the Group independently[68] - The Board consists of six executive Directors and four independent non-executive Directors, ensuring a balanced composition for effective leadership[101] Environmental, Social, and Governance (ESG) Initiatives - The Group has implemented an ESG management system to ensure compliance with environmental protection laws and mitigate ESG-related risks[174] - The Group is committed to reducing environmental pollution by upgrading facilities to minimize emissions from production processes[178] - The Group emphasizes integrity in cooperation with suppliers and aims to build a reliable long-term supply chain[178] - The Group acknowledges the importance of social contributions and fulfilling tax obligations as part of its commitment to government and regulatory bodies[176] Emissions and Environmental Impact - For the year ended December 31, 2021, the Group's GHG emissions amounted to 53,508.62 tonnes, an increase from 43,162.72 tonnes in 2020[191] - The Group upgraded its boilers to use natural gas, significantly reducing air pollutant emissions as required by the Fujian government[186] - The Group has installed air filtration facilities and sewage treatment systems to comply with national standards and reduce emissions[185] - The Group has implemented stringent environmental protection policies and obtained relevant pollutant discharge permits, complying with all applicable PRC environmental laws[183]

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 83,059,000, a decrease of 12.6% compared to RMB 95,087,000 for the same period in 2020[7] - Gross profit for the same period was RMB 27,050,000, down 14.8% from RMB 31,746,000 in 2020[7] - Profit before income tax for the interim period was RMB 22,945,000, a decline of 9.9% from RMB 25,451,000 in the previous year[7] - Profit attributable to equity holders of the Company was RMB 19,892,000, a decrease of 6.4% compared to RMB 21,245,000 in 2020[7] - Basic and diluted earnings per share were RMB 1.61, down from RMB 2.25 in the same period last year[7] - Net profit for the Interim Period decreased by approximately 6.1% to approximately RMB 19.9 million from approximately RMB 21.2 million for the six months ended June 30, 2020[8] - Dyeing revenue decreased by approximately 7.9% from approximately RMB57.5 million for the six months ended June 30, 2020, to approximately RMB52.9 million for the Interim Period[15] - Lace revenue decreased by approximately 19.9% from approximately RMB37.6 million for the six months ended June 30, 2020, to approximately RMB30.1 million for the Interim Period[16] - Gross profit decreased by approximately 14.5% from approximately RMB31.7 million for the six months ended June 30, 2020, to approximately RMB27.1 million for the Interim Period[16] - Operating profit decreased to RMB 22,658,000, a decline of 11.9% from RMB 25,723,000 in the previous year[64] - The profit attributable to equity holders of the Company for the six months ended June 30, 2021, was RMB 19,892,000, compared to RMB 21,245,000 for the same period in 2020, reflecting a decline of 6.4%[113] Market Strategy and Future Outlook - The Company is focusing on expanding its market presence and enhancing product offerings to drive future growth[6] - New product development initiatives are underway to improve competitive positioning in the market[6] - The Company is exploring potential mergers and acquisitions to accelerate growth and market expansion[6] - Management remains optimistic about future performance despite current challenges, aiming for a recovery in revenue and profitability[6] - The Company plans to implement new strategies to enhance operational efficiency and cost management moving forward[6] - The company plans to expand production capacity and enhance efficiency to capture upcoming business opportunities[9] - Future business growth is anticipated to be driven by rising disposable income and the growing retail value of women's outerwear and lingerie[9] Financial Position and Assets - Total assets as of June 30, 2021, amounted to RMB 379,727,000, an increase from RMB 300,020,000 as of December 31, 2020[69] - Total equity attributable to equity holders increased to RMB 333,435,000 from RMB 222,951,000 at the end of 2020[69] - Cash and cash equivalents increased significantly to approximately RMB 186.5 million as of June 30, 2021, up from approximately RMB 109.5 million as of December 31, 2020, primarily due to the successful listing of the company's shares[20] - The Group had repaid all bank borrowings as of June 30, 2021, with no outstanding bank borrowings compared to approximately RMB 13.0 million as of December 31, 2020[20] - The Group incurred capital expenditures of approximately RMB 17.8 million during the Interim Period, compared to approximately RMB 3.4 million for the same period in 2020[21] - The Group had capital commitments of approximately RMB 1.9 million for the purchase of properties, plant, and equipment as of June 30, 2021, down from approximately RMB 2.8 million as of December 31, 2020[22] Liabilities and Financial Management - Total liabilities as of June 30, 2021, amounted to RMB 46,292, a decrease of 40% from RMB 77,069 as of December 31, 2020[71] - Current liabilities increased to RMB 44,359 as of June 30, 2021, compared to RMB 37,859 as of December 31, 2020, reflecting a rise of 17%[71] - The effective income tax rate decreased from approximately 16.5% for the six months ended June 30, 2020, to approximately 13.3% for the Interim Period, mainly due to the recognition of non-deductible one-off listing expenses in the prior period[19] - The Group's financial risk management program aims to minimize potential adverse effects on financial performance due to market unpredictability[91] - There have been no significant changes in the risk management policies since the year-end[91] Employee and Management Information - As of June 30, 2021, the Group had 526 employees, an increase from 469 employees as of December 31, 2020[22] - The total employee benefit expenses for the Interim Period amounted to approximately RMB 18.4 million, slightly down from approximately RMB 18.9 million for the same period in 2020[22] - The company’s key management compensation for the six months ended June 30, 2021, was RMB 305,000, a decrease from RMB 580,000 for the same period in 2020, indicating a reduction of approximately 47.4%[158] Shareholder Information - As of June 30, 2021, Mr. Lin Minqiang and other directors collectively hold 850,500,000 shares, representing approximately 67.5% of the company's total shareholding[29] - Deyong Investment holds 850,500,000 shares, representing approximately 67.5% of the company's total shareholding[38] - Glorious Way Investments Limited owns 94,500,000 shares, accounting for 7.5% of the company's total shareholding[39] - The authorized share capital increased to 10,000,000,000 shares with a nominal value of RMB 84,177,000 as of June 30, 2021, compared to 38,000,000 shares and RMB 337,000 as of December 31, 2020[142] - The issued and fully paid shares as of June 30, 2021, were 1,260,000,000 with a nominal value of RMB 10,511,000, reflecting a significant increase from previous periods[144] Compliance and Governance - The Company has complied with the Corporate Governance Code provisions during the Interim Period[49] - The Company has maintained the public float as required under the Listing Rules as of the date of this report[49] - All Directors confirmed compliance with the Model Code for securities transactions during the Interim Period[51] - The Company has not engaged in any significant transactions or arrangements with Directors or their associates during the Interim Period[45]

Financial Performance - Revenue for 2020 was RMB 198,478,000, a decrease of 2.4% from RMB 203,443,000 in 2019[6] - Gross profit increased to RMB 73,857,000, representing a 10.8% increase from RMB 66,904,000 in 2019[6] - Profit before income tax for the year was RMB 52,593,000, up 7.7% from RMB 49,075,000 in 2019[6] - Total revenue for the year ended December 31, 2020, was RMB 198,478,000, a decrease of approximately 2.4% compared to RMB 203,443,000 in 2019[18] - Gross profit increased to RMB 73,857,000, representing a growth of approximately 10.5% from RMB 66,904,000 in 2019[13] - Profit attributable to owners of the Company rose to RMB 43,821,000, an increase of approximately 4.7% from RMB 41,851,000 in 2019[18] - The Group's net profit increased from approximately RMB41.9 million for the year ended 31 December 2019 to approximately RMB43.8 million for the Reporting Period, with net profit margin increasing from approximately 20.6% to approximately 22.1%[33] Assets and Liabilities - Total assets as of December 31, 2020, were RMB 300,020,000, an increase of 27.9% from RMB 234,423,000 in 2019[8] - Total liabilities increased to RMB 77,069,000 from RMB 55,155,000 in 2019, reflecting a 39.7% increase[8] - Total equity rose to RMB 222,951,000, up 24.4% from RMB 179,268,000 in 2019[8] - As of December 31, 2020, the Group had net current assets of approximately RMB74.2 million, up from RMB30.2 million in 2019, with a current ratio increase from approximately 1.6 times to 2.0 times[34] - The Group's cash and cash equivalents increased significantly to approximately RMB109.5 million as of December 31, 2020, compared to RMB38.5 million in 2019, primarily due to increased cash generated from operations and a decrease in bank borrowings repaid[34] - The Group's bank borrowings remained stable at RMB13.0 million as of December 31, 2020, with a reduction in the interest rate from 5.0% in 2019 to 4.4% in 2020[34] - The gearing ratio improved to approximately 5.8% as of December 31, 2020, down from 7.3% in 2019, attributed to an increase in the Group's equity base[35] Business Strategy and Future Outlook - The company aims to expand its market presence and enhance product offerings in the coming years[10] - New product development initiatives are underway to leverage market opportunities and drive growth[10] - The company is exploring potential mergers and acquisitions to strengthen its competitive position[10] - Future performance guidance indicates a focus on improving operational efficiency and increasing profitability[10] - The Company plans to expand dyeing service capacity and enhance efficiency through upgrading and acquiring new machinery[20] - Future business growth is supported by rising disposable income and the expansion of online retailing[19] - The successful listing on The Stock Exchange of Hong Kong Limited on January 13, 2021, established a solid foundation for future business development[14] Operational Performance - The Group's dyeing services accounted for 61.4% of total revenue, with sales amounting to RMB 121,803,000, up from 58.0% in 2019[28] - Domestic sales comprised 99.1% of total revenue, amounting to RMB 196,672,000, compared to 98.8% in 2019[30] - The Group's dyeing revenue increased by approximately 3.3% from approximately RMB117.9 million for the year ended 31 December 2019 to approximately RMB121.8 million for the Reporting Period[32] - Lace revenue decreased by approximately 10.3% from approximately RMB85.5 million for the year ended 31 December 2019 to approximately RMB76.7 million for the Reporting Period, primarily due to the COVID-19 outbreak[32] Governance and Management - The company has a strong governance structure with independent directors overseeing management[57] - The management team has a diverse background in finance, engineering, and corporate governance, contributing to strategic decision-making[58] - The Board consists of six executive Directors and four independent non-executive Directors, ensuring a balance of skills and experience for effective leadership[79] - The independent non-executive Directors provide professional knowledge in accounting, finance, business, and corporate governance, enhancing the Board's objectivity[83] - The Company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined terms of reference[105] Environmental, Social, and Governance (ESG) Initiatives - The Group's first Environmental, Social and Governance (ESG) report covers performance from January 1, 2020, to December 31, 2020[143] - The Group aims to enhance profitability and improve risk management and internal controls in response to shareholder expectations[148] - The Group is committed to reducing environmental pollution and upgrading facilities to minimize emissions from production processes[149] - The Group's significant ESG issues also include energy management and the prevention of child and forced labor within its supply chain[152] - The Group actively engages with stakeholders, including shareholders and employees, to address their expectations and concerns, such as return on investment and employee compensation[149] Employee and Labor Practices - The Group complied with the Labour Law of the PRC during the year ended December 31, 2020, with no significant labor disputes or disruptions to business operations due to labor disputes[194] - The Group made timely and adequate social insurance contributions and housing provident fund contributions for qualified employees in accordance with relevant PRC laws and regulations during the year ended December 31, 2020[196] - Employees are generally compensated through fixed salaries, with performance appraisals influencing salary reviews and bonus determinations[195] - The Group provides equal opportunities for employees in recruitment, job advancement, training, and development, prohibiting discrimination based on various factors[198]