Financial Performance - The total revenue for the year ended December 31, 2023, was HKD 233,990,000, a decrease of 10.0% compared to HKD 260,142,000 in 2022[3] - The gross profit for the year was HKD 75,125,000, down from HKD 79,797,000, reflecting a gross margin of approximately 32.1%[3] - Operating profit increased to HKD 28,589,000 from HKD 27,667,000, indicating a growth of 3.3%[3] - Net profit attributable to equity holders of the company rose to HKD 16,282,000, compared to HKD 13,805,000 in the previous year, representing an increase of 17.7%[4] - Earnings per share for the year was HKD 8.14, up from HKD 6.90, reflecting a growth of 17.9%[4] - The company reported a comprehensive income of HKD 13,365,000 for the year, compared to HKD 3,753,000 in 2022, indicating a significant improvement[6] - The net profit for the year was HKD 16,282,000, an increase of 17.9% from HKD 13,805,000 in 2022[26] - The group’s net profit attributable to shareholders increased by approximately HKD 2.5 million or about 17.9% to approximately HKD 16.3 million for the year ended December 31, 2023, driven by improved gross margins and reduced selling expenses[38] - The group recorded a net profit attributable to equity holders of approximately HKD 16.3 million for the year ended December 31, 2023, up from HKD 13.8 million in the previous year, mainly due to improved gross margin and reduced sales expenses[53] Revenue Breakdown - Revenue from OEM business customers decreased to HKD 221,914,000 from HKD 241,119,000, a decline of 7.9%[17] - Revenue from self-branded products fell to HKD 12,076,000 from HKD 19,023,000, a significant decrease of 36.5%[17] - Revenue from the United States was HKD 220,866,000 in 2023, a decrease of 4.3% from HKD 230,550,000 in 2022[20] - The largest customer contributed HKD 145,523,000 in revenue for 2023, an increase of 12.4% from HKD 129,449,000 in 2022[21] - The largest customer contributed approximately HKD 145.5 million in revenue, an increase of about 12.4% from HKD 129.4 million in 2022, while the second largest customer saw a revenue decrease of about 23.3% to HKD 67.8 million[43] - The YoYoMilo business recorded revenue of approximately HKD 12.1 million, a significant decrease of about 36.5% from HKD 19.0 million in 2022, primarily due to intense local market competition[44] Assets and Equity - Total assets as of December 31, 2023, amounted to HKD 255,142,000, an increase from HKD 249,286,000 in 2022[8] - Total equity attributable to equity holders of the company was HKD 209,567,000, slightly up from HKD 207,814,000[8] Expenses and Financial Management - The total tax expense for 2023 was HKD 7,718,000, an increase from HKD 6,411,000 in 2022[25] - Sales expenses for the year ended December 31, 2023, were approximately HKD 9.2 million, a decrease of about 31.1% from HKD 13.3 million in the previous year[47] - Administrative expenses for the year ended December 31, 2023, were approximately HKD 38.3 million, down about 6.9% from HKD 41.2 million in the previous year, maintaining around 15.8% and 16.4% of total revenue respectively[48] - The net financing income for the year ended December 31, 2023, was approximately HKD 4.1 million, an increase from HKD 0.8 million in the previous year, attributed to higher interest income from bank deposits[50] Cash Flow and Capital Expenditures - Cash and cash equivalents as of December 31, 2023, were approximately HKD 126.3 million, down from HKD 134.8 million in the previous year, primarily due to dividend payments and capital expenditures[54] - Capital expenditures for the year ended December 31, 2023, amounted to approximately HKD 10.7 million, significantly higher than HKD 1.8 million in the previous year, mainly for new machinery and equipment[56] Market Conditions and Strategic Focus - The overall economic environment remains challenging, with ongoing global issues such as the COVID-19 pandemic and geopolitical tensions impacting market conditions[39] - The OEM business is facing challenges due to reduced product demand from clients, leading to weak sales performance in 2023[69] - The "Youyou Mami" brand is positioned in the high-end infant market in China, but sales are negatively impacted by fierce local competition and declining birth rates[70] - The group is focusing on expanding its global customer base and enhancing production capacity to diversify its product offerings, particularly in the OEM business[40] - The group is exploring better utilization of online sales platforms to align with the growing trend of e-commerce in China[40] - The company is exploring potential acquisition targets globally to achieve production synergies and accelerate business development[71] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions as of December 31, 2023[80] - The financial data for the year ending December 31, 2023, has been reviewed by the audit committee and verified by PwC, although it does not constitute an audit under Hong Kong auditing standards[81] - The annual performance announcement and annual report will be published on the Hong Kong Stock Exchange and the company's website at an appropriate time[83] Employee and Shareholder Matters - The group employed 626 full-time employees as of December 31, 2023, a decrease from 666 employees in the previous year, primarily due to reduced production needs[65] - The company granted 6,000,000 share options to directors, senior management, and employees as recognition for their contributions[66] - The company plans to distribute a final dividend of 3 HKD per share, consistent with the previous year, totaling HKD 6,000,000[29] - The board proposed a final dividend of HKD 0.03 per ordinary share, totaling approximately HKD 12 million, consistent with the previous year[74]

Financial Performance - For the six months ended June 30, 2023, the company's revenue was HKD 113.2 million, a decrease of approximately 29.8% compared to HKD 161.2 million for the same period in 2022[6]. - The gross profit for the same period was HKD 37.0 million, with a gross margin of 32.7%, compared to a gross profit of HKD 50.5 million and a gross margin of 31.3% in the previous year[15]. - The operating profit for the six months ended June 30, 2023, was HKD 14.4 million, down from HKD 22.3 million in the same period of 2022[6]. - The net profit attributable to equity holders was HKD 9.1 million, compared to HKD 12.9 million in the previous year, reflecting a decline of approximately 29.5%[6]. - The OEM business generated revenue of approximately HKD 106.7 million, a decrease of about 29.1% from HKD 150.6 million in the same period last year[13]. - The "Youyou Monkey" business recorded revenue of approximately HKD 6.5 million, down approximately 39.1% from HKD 10.6 million in the previous year[14]. - The overall comprehensive income for the six months was HKD 4,454,000, down 39.5% from HKD 7,328,000 in the previous year[46]. - The company reported a net profit of HKD 9,063,000 for the six months ended June 30, 2023, compared to HKD 12,947,000 for the same period in 2022, a decrease of 30%[53]. Cost and Expenses - Sales expenses for the six months ended June 30, 2023, were approximately HKD 4.8 million, a decrease of about HKD 3.7 million or 43.7% compared to HKD 8.4 million for the same period in 2022[16]. - Administrative expenses for the six months ended June 30, 2023, were approximately HKD 19.1 million, a decrease of about HKD 2.6 million, representing 16.9% of total revenue, up from 13.5% in the same period last year[18]. - Other income and gains for the six months ended June 30, 2023, were approximately HKD 1.2 million, down from HKD 2.1 million for the same period in 2022[19]. - The total expense for share-based payments recognized for the period ended June 30, 2023, was HKD 268,000, a decrease from HKD 683,000 in 2022[19]. Economic Challenges - The company continues to face challenges due to weak economic performance, inflation, and geopolitical uncertainties affecting customer demand and order levels[10]. - The company anticipates challenges ahead due to ongoing geopolitical tensions and high inflation affecting market recovery[36]. - The OEM business performance is heavily reliant on the U.S. market, which is currently constrained by various negative economic factors[36]. - The "Youyou Mami" business is facing challenges from local competition and a shift in consumer purchasing habits from offline to online[37]. Cash Flow and Assets - Cash and cash equivalents as of June 30, 2023, were approximately HKD 146.4 million, an increase from HKD 134.8 million as of December 31, 2022[24]. - The group recorded foreign exchange gains of approximately HKD 0.6 million for the six months ended June 30, 2023, compared to HKD 0.4 million in the same period last year[27]. - Total assets as of June 30, 2023, amounted to HKD 241,106,000, a decrease of 3.4% from HKD 249,286,000 as of December 31, 2022[48]. - Non-current assets decreased to HKD 35,981,000 from HKD 43,860,000, representing a decline of 18%[48]. - Current assets remained stable at HKD 205,125,000, slightly down from HKD 205,426,000[48]. - Total liabilities decreased to HKD 40,570,000 from HKD 41,472,000, a reduction of 2.2%[51]. - Operating cash flow for the six months ended June 30, 2023, was HKD 26,155,000, up from HKD 21,450,000, indicating a growth of 21%[55]. Shareholder Information - The ownership structure shows that Mr. Zhong and Mr. Zhou each hold 75,000,000 shares, representing 37.5% of the company[103]. - Major shareholders include L.V.E.P. Holdings and Ching Wai Holdings, each holding 75,000,000 shares, equating to 37.5%[109]. - The spouse of Mr. Zhou holds an additional 75,200,000 shares, representing 37.6% of the company[109]. - The company confirmed that there were no other interests or short positions held by directors or senior management as of June 30, 2023[107]. Corporate Governance - The audit committee has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2023, and recommended its approval to the board[131]. - The company has adopted and complied with the corporate governance code as per the listing rules for the six months ended June 30, 2023[130]. - The audit committee consists of all independent non-executive directors, ensuring oversight of financial reporting and risk management[122]. - The remuneration committee is responsible for reviewing and approving management's compensation proposals, ensuring no director participates in determining their own remuneration[123]. - The nomination committee is tasked with recommending appointments of directors and senior management to the board[124].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 MS GROUP HOLDINGS LIMITED 萬 成 集 團 股 份 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1451） 截至二零二三年六月三十日止六個月之 中期業績公告 主要財務資料及比率（未經審核） 截至六月三十日止六個月 二零二三年 二零二二年 收益 千港元 113,163 161,192 毛利 千港元 37,047 50,456 毛利率 % 32.7% 31.3% 經營溢利 千港元 14,386 22,347 權益持有人應佔溢利 千港元 9,063 12,947 每股基本盈利 港仙 4.53 6.47 每股中期股息 港仙 無 無 ...

Financial Performance - Total revenue for the year ended December 31, 2022, decreased by approximately 11.4% to HKD 260,142,000 from HKD 293,746,000 in 2021[9] - The net profit attributable to shareholders decreased by approximately HKD 1,607,000 or about 10.4% to HKD 13,805,000 for the year ended December 31, 2022, compared to HKD 15,412,000 in 2021[13] - The gross profit for the year was HKD 79,797,000, down from HKD 86,341,000 in 2021, reflecting the impact of reduced sales[9] - The group's revenue for the year ended December 31, 2022, was approximately HKD 260.1 million, a decrease of about 11.4% compared to HKD 293.7 million in the previous year[19] - Revenue from the OEM business was approximately HKD 241.1 million, down about 8.3% from HKD 262.9 million the previous year, primarily due to a conservative order placement from clients amid an unstable macroeconomic environment[20] - The YoYo Ma business recorded revenue of approximately HKD 19.0 million, a significant decrease of about 38.4% from HKD 30.9 million the previous year, mainly due to COVID-19 restrictions in China[21] - The group's gross profit for the year was approximately HKD 79.8 million, with a gross profit margin of about 30.7%, compared to HKD 86.3 million and a margin of 29.4% in the previous year[22] Operational Challenges - The OEM business continued to be the main source of revenue and profit, despite a decrease in sales orders due to a challenging global economic environment[12] - The company anticipates continued challenges and uncertainties for both the OEM and Youyou Monkey businesses in the upcoming period due to global issues such as COVID-19 and geopolitical tensions[15] - The company anticipates ongoing challenges in its OEM and Youyou Mami businesses due to factors such as global inflation, COVID-19, and declining birth rates in China[47] - The OEM business faced weak performance in 2022, attributed to reduced product demand from two major clients[49] - The Youyou Mami business targets the mid-to-high-end infant market in China, but sales were negatively impacted by regional lockdowns due to COVID-19[50] - The birth rate in China has dropped to a record low of 6.77 per 1,000 people, which may further weaken future growth in the industry[50] Cost Management - Selling expenses decreased by approximately 30.5% to about HKD 13.3 million from HKD 19.1 million, mainly due to reduced transportation costs and lower promotional expenses[23] - Administrative expenses increased by about 10.0% to approximately HKD 41.2 million from HKD 37.4 million, primarily due to higher personnel costs and increased impairment losses[24] - The company has maintained net profit through revenue expansion and cost control despite adverse industry conditions during the pandemic[51] Assets and Liabilities - Total assets as of December 31, 2022, were HKD 249,286,000, a decrease from HKD 255,771,000 in 2021[9] - Total liabilities decreased to HKD 41,472,000 in 2022 from HKD 52,691,000 in 2021, indicating improved financial stability[9] - As of December 31, 2022, the group's cash and cash equivalents were approximately HKD 134.8 million, an increase of about HKD 11.6 million from HKD 123.2 million the previous year[31] Employee Management - Employee count decreased to 666 full-time employees as of December 31, 2022, down from 740 in the previous year, primarily due to reduced production needs[45] - Employee benefits expenses for the year were approximately HKD 73.9 million, compared to HKD 76.6 million in the previous year[45] - The company is committed to providing a fair and non-discriminatory work environment, protecting employees from various forms of discrimination[190] - The company offers competitive compensation packages, including basic salary, discretionary bonuses, and various benefits to attract and retain talent[191] - The employee composition includes 216 full-time long-term male employees and 96 full-time long-term female employees[198] Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced composition with diverse knowledge and experience to drive the company's operations and development[79] - The company has adopted the principles of the corporate governance code and complied with its provisions as of December 31, 2022[73] - The management structure and risk management processes are designed to ensure proper oversight of all business operations and decision-making procedures[72] - The board is responsible for formulating the company's business strategy and management policies, as well as monitoring operational performance[79] - The board has adopted a dividend policy, allowing for dividends to be declared based on general business conditions, financial performance, and capital requirements[90] Environmental, Social, and Governance (ESG) Initiatives - The group identified 21 significant ESG issues categorized into four areas: environment, employment and labor practices, operational practices, and community[149] - The group emphasizes the importance of sustainable development and integrates ESG factors into its operations to create sustainable value for stakeholders[140] - The company aims to maintain or reduce its emission levels during the reporting period in 2023[156] - The company has achieved a reduction in air pollutant emissions, with nitrogen oxides (NOx) decreasing from 65.39 kg in 2021 to 55.78 kg in 2022, a reduction of approximately 14%[160] - The total greenhouse gas emissions decreased by about 20% from 6,309 tons in 2021 to 5,076 tons in 2022[162] Risk Management - The company has established a robust risk management and internal control framework to ensure prudent and effective governance[77] - The audit committee assists the board in evaluating the effectiveness of the risk management and internal control system as of December 31, 2022, and considers it effective and adequate[118] - The company has identified climate-related physical risks and disaster recovery plan effectiveness as significant environmental, social, and governance risks during the risk assessment process[181] - The company employs a business contingency plan to prepare for unforeseen climate-related disasters, aiming to reduce operational and supply chain impacts[181]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 MS GROUP HOLDINGS LIMITED 萬 成 集 團 股 份 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1451） 截至二零二二年十二月三十一日止年度 全年業績公告 萬成集團股份有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然呈報本公司及其附屬公 司（統稱「本集團」）截至二零二二年十二月三十一日止年度的經審核年度綜合財務業績，連 同二零二一年同期的比較數字，載列如下： 綜合收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收益 2 260,142 293,746 銷售成本 (180,345) (207,405) 毛利 79,797 86,341 銷售開支 (13,301) (19,137) 行政開支 (41,154) (37,403) 其他收入 4 2,666 333 其他虧損淨額 5 (341) (893) ...

Financial Performance - The company reported a revenue of HKD 161,192 thousand for the six months ended June 30, 2022, representing a year-on-year increase of 29.2% from HKD 124,723 thousand in the same period of 2021[9]. - Gross profit for the same period was HKD 50,456 thousand, with a gross margin of 31.3%, up from 29.9% in the previous year[9]. - Operating profit increased to HKD 22,347 thousand, compared to HKD 11,589 thousand in the prior year, indicating a significant improvement in operational efficiency[9]. - Profit attributable to equity holders was HKD 12,947 thousand, more than double the HKD 6,572 thousand recorded in the same period last year[9]. - Revenue for the first half of 2022 was approximately HKD 10.6 million, a decrease of about 27.9% compared to HKD 14.7 million in the same period of 2021[20]. - Gross profit for the first half of 2022 was approximately HKD 50.5 million, with a gross margin of about 31.3%, compared to HKD 37.3 million and a gross margin of 29.9% in the same period of 2021[21]. - Net profit for the first half of 2022 was approximately HKD 12.9 million, an increase from HKD 6.6 million in the same period of 2021, driven by increased revenue and gross margin in the OEM business[29]. - The company reported a year-on-year increase in revenue and profit for the six months ended June 30, 2022, primarily due to optimistic market sentiment from major U.S. customers[51]. - The company reported a net profit of HKD 12,947,000 for the six months ended June 30, 2022, compared to HKD 6,572,000 in the same period last year, representing a significant increase of 96.2%[72]. - Basic and diluted earnings per share for the period were HKD 6.47, up from HKD 3.29 in 2021, reflecting a 96.1% increase[61]. Revenue Breakdown - The OEM business generated approximately HKD 150.6 million in revenue, a year-on-year growth of about 36.9% from HKD 110.0 million[19]. - Revenue for the OEM business increased to HKD 150,581,000, a 36.8% increase from HKD 110,014,000 in the previous year[89]. - Revenue from proprietary brand products decreased to HKD 10,611,000, down 28.1% from HKD 14,709,000 in the previous year[89]. - The two largest customers contributed approximately HKD 82.3 million and HKD 50.3 million to the OEM business revenue, compared to HKD 64.6 million and HKD 38.1 million in the previous year[19]. Operational Challenges - The company faced a decline in orders starting May 2022 due to a deteriorating economic environment in the US, impacting future revenue expectations[14]. - The OEM business is heavily reliant on the U.S. market, facing significant challenges due to high inflation and weakened consumer confidence[52]. - The Youyou Monkey business is expected to continue facing challenges from COVID-19, intense local competition, and a record low birth rate in China[53]. Expenses and Liabilities - Administrative expenses increased to approximately HKD 21.7 million, up about HKD 5.0 million from the previous year, representing 13.5% of total revenue[25]. - Total liabilities increased to HKD 61,534,000 as of June 30, 2022, compared to HKD 52,691,000 as of December 31, 2021, representing a growth of 16.0%[69]. - Current liabilities rose to HKD 53,874,000 from HKD 49,151,000, marking an increase of 5.5%[69]. Cash Flow and Investments - Cash and cash equivalents as of June 30, 2022, were approximately HKD 140.7 million, up from HKD 123.2 million at the end of 2021[30]. - Capital expenditures for the first half of 2022 were approximately HKD 1.59 million, significantly higher than HKD 0.57 million in the same period of 2021, primarily for new machinery and equipment[32]. - The company’s cash flow from investing activities showed a net outflow of HKD 1,160,000 for the period, compared to a net outflow of HKD 21,659,000 in the previous year, indicating improved cash management[75]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the listing rules for the six months ended June 30, 2022[177]. - The company’s audit committee consists entirely of independent non-executive directors, ensuring compliance with relevant regulations[170]. - The remuneration committee is responsible for reviewing and approving management's remuneration proposals, ensuring no director participates in determining their own remuneration[171]. Shareholder Information - Major shareholders include L.V.E.P. Holdings and Ching Wai Holdings, each holding 75,000,000 shares, representing 37.5% of the company[150]. - The spouse of a director holds an additional 75,200,000 shares, increasing their total ownership to approximately 37.6%[151]. - The company did not declare an interim dividend for the period[9]. Employee Information - The company employed 744 full-time employees as of June 30, 2022, a slight decrease from 758 employees a year earlier[47]. - Employee benefits expenses for the first half of 2022 were approximately HKD 40.9 million, compared to HKD 35.5 million in the same period of 2021[47].

Financial Performance - Total revenue for the year ended December 31, 2021, increased by approximately 18.2% year-on-year, reaching HKD 293.746 million, driven mainly by a 20.7% growth in OEM business revenue[12]. - The OEM business remained the primary source of revenue and profit for the company, with overall production volume increasing in 2021 due to higher sales orders[13]. - The gross profit margin for the OEM business weakened in 2021 due to rising raw material and labor costs, as well as the reduction of social insurance fee exemptions in China[13]. - The company reported a profit of HKD 15.412 million for the year, compared to HKD 14.001 million in 2020, indicating a positive trend in profitability[8]. - The gross profit for the year was HKD 86.341 million, an increase from HKD 81.864 million in the previous year[9]. - The group's net profit attributable to equity holders increased from approximately HKD 14.0 million for the year ended December 31, 2020, to approximately HKD 15.4 million for the year ended December 31, 2021, mainly due to reduced administrative expenses and improved OEM business performance[32]. - The group recorded a gross profit of approximately HKD 86.3 million for the year ended December 31, 2021, with an overall gross margin of about 29.4%, down from a gross margin of approximately 32.9% in the previous year[25]. Assets and Liabilities - The total assets as of December 31, 2021, amounted to HKD 255.771 million, an increase from HKD 238.856 million in 2020[9]. - The total liabilities decreased to HKD 52.691 million in 2021 from HKD 55.776 million in 2020, indicating improved financial stability[9]. - Net assets increased to HKD 203.080 million in 2021, up from HKD 183.080 million in 2020, reflecting a stronger equity position[9]. - As of December 31, 2021, the group's cash and cash equivalents amounted to approximately HKD 123.2 million, a net increase of about HKD 1.3 million from HKD 121.9 million in 2020[35]. - The group's asset-to-equity ratio remained at zero as of December 31, 2021, consistent with the previous year[36]. Business Segments - Revenue from the Youyouma business remained flat compared to the previous year, with the number of third-party retail stores in China decreasing from 292 at the end of 2020 to 204 at the end of 2021[13]. - The group operates primarily in the production and sale of plastic water bottles and infant feeding products, with two main business segments: OEM business and its own brand "Youyouma" targeting the Chinese market[152]. Challenges and Outlook - The group anticipates challenges for both the OEM and Yuyouma businesses in the future due to ongoing pandemic impacts, the US-China trade war, and declining birth rates in China affecting demand for Yuyouma products[17]. - The overall business outlook remains uncertain due to factors such as COVID-19, the US-China trade war, and geopolitical tensions[60]. - The company anticipates challenges in the Youyouma business due to declining birth rates in China, with a birth rate of 7.52 per 1,000 people in 2021, the lowest since 1949[63]. Corporate Governance - The company adopted the principles of the Corporate Governance Code and complied with its provisions as of December 31, 2021[90]. - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced distribution of knowledge and experience[92]. - The company emphasizes the importance of good corporate governance elements to ensure proper oversight of all business operations and decision-making processes[89]. - The independent non-executive directors have extensive experience in corporate finance, auditing, and management, contributing to the company's governance[79][80]. - The board has clear instructions that certain matters, including the declaration of dividends and significant financial decisions, must be approved by the board[101]. Risk Management - The company has a strong commitment to risk management and internal control frameworks to safeguard its operations[91]. - The group has established a robust risk management and internal control system, which is reviewed annually by the board[134]. - The internal control system is evaluated annually through a four-stage risk assessment process, which includes risk identification, risk assessment, risk response, and risk monitoring[136]. - The company has a robust internal control framework to identify and monitor significant risks related to international sanctions[161]. Investments and Acquisitions - The group has established a member equity purchase agreement to acquire a 40% stake in BRH2 Plastics, LLC, which is expected to create synergies in production technology and business connections in the long term[14]. - The company acquired a 40% stake in BRH2 Plastics, LLC, which has established production lines and business networks in North America, focusing on custom-designed plastic products for consumer goods, automotive, and healthcare industries[64]. - The investment in BRH2 Plastics, LLC is expected to create commercial synergies, leveraging shared manufacturing technologies, particularly in injection molding[64]. Employee and Operational Insights - The company employed 740 staff as of December 31, 2021, maintaining the same level as the previous year[59]. - Employee benefits expenditure for the year ended December 31, 2021, was approximately HKD 76.6 million, an increase from HKD 62.6 million in 2020[59]. - The company has maintained a satisfactory employee turnover rate and has not encountered significant disputes with suppliers or customers as of December 31, 2021[162]. Financial Management - The company has adopted a dividend policy based on general business conditions, financial performance, capital requirements, and liquidity status[109]. - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2021, consistent with the previous year[173]. - The company has maintained net profit over the past three fiscal years, demonstrating stable financial performance despite economic challenges[67]. Environmental Commitment - The company is committed to environmental sustainability by reducing electricity consumption and encouraging recycling of office supplies[158].

Financial Performance - For the six months ended June 30, 2021, the company's revenue was HKD 124.723 million, representing a 32.6% increase from HKD 94.084 million in the same period of 2020[9]. - Gross profit for the same period was HKD 37.324 million, with a gross margin of 29.9%, down from 33.1% in 2020[9]. - Operating profit increased to HKD 11.589 million, compared to HKD 7.730 million in the previous year, reflecting a growth of 50.5%[9]. - Net profit attributable to equity holders was HKD 6.572 million, up from HKD 5.329 million, marking an increase of 23.4% year-on-year[9]. - The company recorded a net profit of approximately HKD 6.6 million for the six months ended June 30, 2021, compared to HKD 5.3 million for the same period in 2020, driven by increased revenue from the recovery of the OEM business[30]. - The company reported earnings per share of HKD 3.29, up from HKD 2.66, marking a 23.6% increase[62]. - The company reported a net profit of HKD 6,572,000 for the six months ended June 30, 2021, compared to HKD 5,329,000 for the same period in 2020, marking an increase of 23.3%[72]. Revenue Sources - The OEM business generated approximately HKD 110.0 million in revenue, a 38.1% increase from HKD 79.6 million in the same period of 2020[20]. - Revenue from OEM business customers was HKD 110,014,000, up 38.0% from HKD 79,646,000 in 2020[89]. - The revenue from the company's "You You Monkey" brand in the Chinese market was approximately HKD 1.9 million, down from HKD 4.1 million in the previous year[20]. - For the six months ended June 30, 2021, the company recorded revenue of approximately HKD 14.7 million, representing a year-on-year increase of about 1.9% compared to HKD 14.4 million for the same period in 2020, but a decrease of approximately 38.7% from HKD 24.0 million in 2019[21]. Expenses and Costs - The overall sales cost increased due to the absence of COVID-19 related exemptions and increased production personnel to meet demand[14]. - The company's selling expenses for the six months ended June 30, 2021, were approximately HKD 8.5 million, an increase of about 5.6% from HKD 8.0 million in the same period of 2020[23]. - Administrative expenses for the six months ended June 30, 2021, were approximately HKD 16.7 million, a year-on-year increase of about 3.1%, representing 13.4% of total revenue, down from 17.2% in the same period of 2020[26]. - Employee benefits expenses for the first half of 2021 were approximately HKD 35.5 million, an increase from HKD 26.7 million in the same period of 2020[47]. Acquisitions and Investments - The company completed the acquisition of a 40% stake in BRH2 Plastics, LLC, which is expected to create synergies in production technology and business connections[15]. - The company completed the acquisition of a 40% stake in BRH2 Plastics, LLC for a total consideration of USD 3 million, which was finalized on January 20, 2021[36]. - The group acquired a 40% stake in BRH2 Plastics, LLC for a total consideration of HKD 23,250,000 (USD 3,000,000) on January 20, 2021[132]. - The company incurred an investment cash outflow of HKD 21,659,000 for the six months ended June 30, 2021, compared to an inflow of HKD 151,000 in the same period of 2020[75]. Cash and Assets - As of June 30, 2021, the company had cash and cash equivalents of approximately HKD 121.2 million, slightly down from HKD 121.9 million as of December 31, 2020[31]. - Total assets as of June 30, 2021, amounted to HKD 256,551,000, an increase from HKD 238,856,000 at the end of 2020[67]. - The group maintains a strong cash position with cash and cash equivalents of HKD 121,222,000 as of June 30, 2021[67]. - The total equity increased to HKD 191,187,000 as of June 30, 2021, compared to HKD 166,659,000 as of June 30, 2020, reflecting a growth of 14.7%[72]. Market and Strategic Outlook - The company expects continued challenges in its OEM business due to reliance on the U.S. market and the ongoing impacts of COVID-19 and the U.S.-China trade war[52]. - The company aims to expand its revenue sources by actively developing its OEM business and diversifying its customer base beyond the U.S. market[52]. - The "Youyou Monkey" business is positioned to capture growth potential in the Chinese market, especially with the recent introduction of the three-child policy[52]. - The company will continue to focus on online sales development for its "Youyou Monkey" products, which are currently available on several online sales platforms[52]. Corporate Governance and Compliance - The company has adopted and complied with the corporate governance code as per the listing rules[179]. - The audit committee was established on May 15, 2018, and is composed entirely of independent non-executive directors[172]. - The remuneration committee, also established on May 15, 2018, reviews and approves management's compensation proposals[173]. - The nomination committee, formed on May 15, 2018, is responsible for recommending appointments of directors and senior management[174]. Future Guidance and Projections - The company provided guidance for Q4 2023, expecting revenue between $1.3 billion and $1.5 billion, representing a growth of 10% to 25%[3]. - New product launch scheduled for Q1 2024, anticipated to contribute an additional $200 million in revenue[4]. - Investment in R&D increased by 20%, totaling $100 million, focusing on AI and machine learning technologies[5]. - Market expansion efforts in Asia projected to increase market share by 5% over the next year[6].

Financial Performance - Total revenue for the year ended December 31, 2020, decreased by approximately 5.2% to HKD 248.51 million from HKD 262.28 million in 2019, primarily due to a decline in the YoYo Monkey business segment[9]. - The net profit attributable to shareholders increased from approximately HKD 12.62 million in 2019 to approximately HKD 14.00 million in 2020, driven by reduced selling expenses and maintained performance in the OEM business[9]. - The gross profit for the year was HKD 81.86 million, compared to HKD 84.19 million in 2019, indicating a decline in profitability[6]. - The operating profit before tax for 2020 was HKD 21.98 million, up from HKD 18.06 million in 2019, reflecting improved operational efficiency[6]. - The YoYoMa business recorded revenue of approximately HKD 30.7 million for the year ended December 31, 2020, a decline of about 36.5% from approximately HKD 48.3 million in 2019, mainly due to adverse industry conditions and the impact of COVID-19[21]. - The group's gross profit for the year ended December 31, 2020, was approximately HKD 81.9 million, with a gross profit margin of about 32.9%, compared to a gross profit of approximately HKD 84.2 million and a margin of 32.1% in 2019[22]. - The group recorded a net profit attributable to shareholders of approximately HKD 14.0 million for the year ended December 31, 2020, an increase from approximately HKD 12.6 million in 2019, primarily due to reduced selling expenses in the YoYoMa business[28]. Business Segments - The OEM business continued to be the main source of revenue and profit, with a slight increase in overall production due to higher sales orders from existing customers[10]. - Revenue from the OEM business for the year ended December 31, 2020, was approximately HKD 217.8 million, an increase of about 1.8% from approximately HKD 214.0 million in the previous year[20]. - The number of third-party retail stores selling the group's products in China decreased to 292 in 2020 from 397 in 2019, reflecting challenges faced by the YoYo Monkey business segment[10]. Expenses and Cost Management - Selling expenses decreased significantly from HKD 26.38 million in 2019 to HKD 17.41 million in 2020, particularly in the YoYo Monkey business segment[6]. - Administrative expenses for the year ended December 31, 2020, were approximately HKD 43.1 million, an increase of about 5.9% from approximately HKD 40.7 million in 2019, mainly due to increased legal and professional fees[25]. - The company benefited from a decrease in raw material costs and reduced labor costs in China due to employee restructuring and COVID-19 related measures[10]. - Employee benefits expenditure for the year ended December 31, 2020, was approximately HKD 62.6 million, down from HKD 73.7 million in 2019[50]. Financial Position - The total assets as of December 31, 2020, increased to HKD 238.86 million from HKD 200.96 million in 2019, while total liabilities rose to HKD 55.78 million from HKD 37.86 million[6]. - The net assets increased to HKD 183.08 million in 2020 from HKD 163.09 million in 2019, indicating a stronger financial position[6]. - As of December 31, 2020, the group's cash and cash equivalents amounted to approximately HKD 121.9 million, an increase of about HKD 39.6 million from HKD 82.3 million in 2019[31]. Strategic Initiatives - The group plans to actively seek new customers to expand its global customer base and diversify its product offerings in response to ongoing challenges in the OEM and YoYoMa businesses[14]. - The group is exploring ways to reduce overall operating costs and expenses to maintain or enhance profitability, including further automation and streamlining production cycles[14]. - The group plans to enhance product development and manufacturing capabilities to improve competitiveness and reduce reliance on the US market[53]. - The group aims to strengthen its customer base and enhance product development capabilities using net proceeds from the IPO in 2021[54]. Governance and Management - The company emphasizes the importance of good corporate governance elements in its management structure and risk management processes[79]. - The board of directors consists of four executive directors and three independent non-executive directors, ensuring a balanced composition with diverse knowledge and experience[82]. - The company has a strong board of independent non-executive directors, including Mr. Yu Handu and Mr. Si Tu Zhenzhong, who bring extensive experience in corporate finance and management[68][72]. - The company has established a governance framework that complies with the principles of the corporate governance code adopted[80]. - The board meets regularly, with at least four meetings held annually to discuss the company's performance and strategic direction[84]. Risk Management - The company has established a robust risk management and internal control system, reviewed annually by the board[121]. - The board confirmed the effectiveness and adequacy of the risk management and internal control systems for the year ending December 31, 2020, covering financial reporting and compliance with listing rules[124]. - The group aims to manage risks rather than eliminate them, providing reasonable assurance against significant misstatements or losses[124]. Shareholder Communication - The group has established a shareholder communication policy to ensure effective communication through various channels, including annual general meetings and press releases[133]. - The company's distributable reserves as of December 31, 2020, were approximately HKD 52,475,000, compared to HKD 12,878,000 in 2019[158]. Future Outlook - The group anticipates continued uncertainty in business prospects for the coming year due to the ongoing pandemic and unresolved US-China trade tensions[53]. - The board remains optimistic about the long-term growth prospects of the group despite current economic challenges[57].

Financial Performance - Total revenue for the fiscal year ended December 31, 2019, was HKD 262.3 million, representing a year-on-year growth of approximately 12.5%[9] - The net profit attributable to shareholders for the year was HKD 12.6 million, a turnaround from a loss of HKD 3.1 million in the previous year[13] - Gross profit for the year was HKD 84.2 million, with a gross margin of approximately 32.1%[9] - Revenue from OEM business for the year ended December 31, 2019, was approximately HKD 214.0 million, an increase of about 25.7% from HKD 170.2 million in the previous year[23] - Revenue from the Youyouma business decreased to approximately HKD 48.3 million, down about 23.3% from HKD 63.0 million in 2018[24] - Selling expenses decreased to approximately HKD 26.4 million, a decline of about 17.0% from HKD 31.8 million in 2018[26] - Administrative expenses increased to approximately HKD 40.7 million, up about 24.8% from HKD 32.6 million in the previous year[28] - The group recorded a profit before tax of approximately HKD 18.1 million for the year ended December 31, 2019, significantly up from HKD 1.3 million in 2018[35] Assets and Liabilities - Total assets as of December 31, 2019, amounted to HKD 200.96 million, while total liabilities were HKD 37.86 million, resulting in net assets of HKD 163.09 million[9] - The group's debt-to-equity ratio was 0% as of December 31, 2019, down from 15.8% in 2018, indicating a stronger financial position[36] Operational Highlights - OEM business revenue increased by approximately 25.7% due to higher sales orders from existing customers[13] - The overall production volume of the OEM business increased compared to 2018, benefiting from economies of scale[14] - The number of third-party retail stores selling the group's products in China remained stable at 397, compared to 393 in the previous year[14] - The group did not incur any listing expenses in 2019, contrasting with approximately HKD 8.8 million in listing expenses recorded in 2018[13] Future Outlook and Strategy - The company plans to utilize approximately HKD 26.2 million from the net proceeds of the listing for various purposes, including capacity expansion and product development[53] - The expected allocation for capacity expansion is HKD 9.9 million for the fiscal year ending December 31, 2020[53] - The company anticipates challenges in the OEM business due to reliance on the U.S. market and potential impacts from the ongoing U.S.-China trade tensions[58] - The company aims to enhance product design and diversification while leveraging its existing OEM network to expand its own brand products into overseas markets[59] - The management remains confident in navigating challenges and creating long-term value for shareholders despite a challenging economic environment[60] Corporate Governance - The company adopted the principles of the Corporate Governance Code and complied with its provisions as of December 31, 2019[83] - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced distribution of knowledge and experience[85] - The board held regular meetings at least four times a year to review the company's performance and discuss significant business matters[88] - The company has implemented a standard code for directors' securities transactions, ensuring compliance with regulations[95] - The board is committed to maintaining effective risk management and internal control systems[84] Risk Management - The internal control system aims to provide reasonable assurance against material misstatements or losses, focusing on managing risks rather than eliminating them[181] - The company employs independent professional consultants to evaluate the effectiveness of its risk management and internal control systems, with findings reported to the audit committee and management[185] - The board believes that the risk management and internal control systems were generally effective and adequate for the year ended December 31, 2019[185] Employee and Operational Efficiency - The company employed 643 full-time employees as of December 31, 2019, a decrease from 793 employees in 2018, primarily due to automation and streamlining processes[54] - Employee benefits expenses for the fiscal year ending December 31, 2019, were approximately HKD 73.7 million, up from HKD 65.2 million in 2018[54] Market and Product Development - The company is expanding its market presence in Asia, targeting a 30% increase in market share within the next two years[76] - New product launches are expected to contribute an additional $50 million in revenue, with a focus on innovative technology in the upcoming quarter[76] - Research and development expenses increased by 18%, reflecting the company's commitment to innovation and new technology[76] Shareholder Engagement - The company has established a communication policy with shareholders, utilizing various channels such as annual general meetings, press releases, and investor briefings to ensure effective engagement[195] - The company encourages shareholders to express their inquiries and concerns through various channels, including mail, email, and fax[200]