Financial Performance - For the fiscal year ending March 31, 2024, the company reported revenue of approximately HKD 268.0 million, a decrease of about 26.7% compared to HKD 365.6 million for the fiscal year ending March 31, 2023[5]. - The profit attributable to equity holders decreased from approximately HKD 64.2 million in the fiscal year 2023 to about HKD 38.7 million in fiscal year 2024, representing a decline of approximately 39.7%[9]. - The company's net profit margin decreased from approximately 17.6% to about 14.4%, a drop of approximately 3.2 percentage points[9]. - Total revenue decreased by approximately HKD 97.6 million (26.7%) from about HKD 365.6 million in FY2023 to about HKD 268.0 million in FY2024, primarily due to a decline in sales of personal care appliances, particularly the hair care series[13]. - Gross profit decreased by approximately HKD 15.0 million (13.3%) to about HKD 97.4 million in FY2024, while gross profit margin increased by approximately 5.6 percentage points to about 36.3%[14]. - Net profit attributable to equity holders decreased by approximately HKD 25.5 million (39.7%) from about HKD 64.2 million in FY2023 to about HKD 38.7 million in FY2024, with net profit margin declining by approximately 3.2 percentage points to about 14.4%[20]. Business Strategy and Development - The decline in sales was primarily due to reduced demand for hair care products from two major customers[9]. - The company is accelerating the development of its OBM (Own Brand Manufacturing) business model and will continue to invest in marketing efforts to promote its personal care and lifestyle electronic products in the Chinese and Hong Kong markets[10]. - The company plans to utilize its extensive technical knowledge and manufacturing capabilities to expand its business into the retail market[10]. - The company aims to enhance the competitiveness of its high-quality products and strengthen R&D capabilities to increase market share in its existing ODM (Original Design Manufacturer) business[5]. - The group continues to develop its own brand of personal care and lifestyle appliances for retail customers[61]. Expenses and Financial Management - Marketing and distribution expenses increased due to the launch of the OBM business, although this was partially offset by slight improvements in product gross margins[9]. - Selling and distribution expenses increased by approximately HKD 16.4 million (approximately 364.4%) to about HKD 20.9 million in FY2024, attributed to marketing and distribution costs for launching self-branded personal care products in China and Hong Kong[15]. - Employee costs totaled approximately HKD 56.6 million in FY2024, down from about HKD 68.1 million in FY2023[30]. - Cash and bank balances as of March 31, 2024, were approximately HKD 253.6 million, compared to about HKD 247.1 million as of March 31, 2023[22]. - The group had no bank borrowings as of March 31, 2024, and maintained an asset-liability ratio of zero[23]. Governance and Management - The management team has over 35 years of experience in the small household appliances and personal care appliances industry[34]. - The company has a strong focus on sales and marketing strategies, with key decisions made by the executive team led by the CEO[34]. - The company has a robust governance structure with independent directors providing oversight and independent opinions[41]. - The independent non-executive director has over 20 years of experience in corporate finance, accounting, and auditing[41]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[134]. Shareholder and Dividend Information - The board does not recommend the payment of a final dividend for FY2024, compared to a final dividend of HKD 0.015 and a special dividend of HKD 0.008 per share for FY2023[32]. - The company reported a total of 468,750,000 shares outstanding, with the largest shareholder holding 36.7% of the equity[35]. - The company has not granted any stock options under the stock option plan since its adoption on August 21, 2020, and there are no unexercised options[98]. Risk Management and Compliance - The risk management system has identified no significant risks based on the assessment conducted for the fiscal year 2023/24[181]. - The internal control system aligns with the COSO 2013 framework, ensuring operational effectiveness and compliance with applicable laws[182]. - The company has implemented measures to ensure the accuracy and timeliness of disclosed information, with no significant internal control deficiencies identified[182]. - The company has adopted a whistleblowing policy to report any misconduct, ensuring confidentiality and protection for whistleblowers[191]. Future Outlook - The management anticipates facing significant challenges in the fiscal year ending March 31, 2025, due to ongoing geopolitical tensions and economic uncertainties[10]. - The company has set a target to launch new products by June 2026, with an expected allocation of HKD 19.3 million for this initiative[131].

Financial Performance - Total revenue for the quarter ending March 31, 2024, was HKD 268,024,000, a decrease of 26.7% compared to HKD 365,561,000 for the same period in 2023[1] - Gross profit for the quarter was HKD 97,365,000, down from HKD 112,411,000, reflecting a gross margin of approximately 36.3%[1] - Operating profit decreased to HKD 39,709,000 from HKD 71,067,000, indicating a decline of 44.3% year-over-year[1] - Net profit for the quarter was HKD 38,716,000, compared to HKD 64,205,000 in the previous year, representing a decrease of 39.8%[1] - Earnings per share (EPS) for the quarter was HKD 3.0, down from HKD 5.0 in the same quarter last year[1] - Total revenue for the year ending March 31, 2024, was HKD 268,024,000, a decrease from HKD 365,561,000 for the year ending March 31, 2023, representing a decline of approximately 26.7%[30] - Basic earnings per share for the year ending March 31, 2024, was HKD 3.0, down from HKD 5.0 for the year ending March 31, 2023, indicating a decrease of 40%[32] - The company’s profit attributable to equity holders for the year ending March 31, 2024, was HKD 38,716,000, down from HKD 64,205,000 for the year ending March 31, 2023, reflecting a decrease of approximately 39.7%[32] Revenue and Customer Concentration - The top five customers accounted for approximately 99.3% of total revenue, with Customer A contributing HKD 83,250,000 and Customer B contributing HKD 82,633,000[13] - Revenue by geographical location for the year ending March 31, 2024: Japan contributed HKD 172,162,000, the US contributed HKD 71,252,000, Europe contributed HKD 16,492,000, and other regions contributed HKD 8,118,000[30] Expenses and Costs - Total expenses for the year ended March 31, 2024, amounted to HKD 233,322,000, a decrease of 22.6% from HKD 301,602,000 for the year ended March 31, 2023[16] - The cost of goods sold for the year ended March 31, 2024, was HKD 105,647,000, down 37.1% from HKD 167,949,000 for the year ended March 31, 2023[16] - Employee costs, including directors' remuneration, were HKD 56,645,000 for the year ended March 31, 2024, a decrease of 16.9% from HKD 68,142,000 for the year ended March 31, 2023[16] - Sales and distribution expenses increased by approximately HKD 16.4 million (approximately 364.4%) to about HKD 20.9 million in the fiscal year 2024, driven by marketing and distribution costs for launching personal care products in China and Hong Kong[84] - Administrative expenses slightly decreased by approximately HKD 1.7 million (4.8%) to about HKD 33.9 million in the fiscal year 2024[85] Assets and Liabilities - Cash and cash equivalents increased to HKD 253,573,000 from HKD 247,126,000, showing a growth of 2.0%[3] - Total assets amounted to HKD 475,916,000, up from HKD 456,779,000, reflecting a growth of 4.2%[3] - Total liabilities increased to HKD 61,805,000 from HKD 51,415,000, indicating a rise of 20.7%[5] - Trade receivables as of March 31, 2024, amounted to HKD 16.7 million, an increase from HKD 13.2 million as of March 31, 2023[49] - Trade payables as of March 31, 2024, were HKD 25.8 million, slightly up from HKD 24.4 million as of March 31, 2023[54] Corporate Governance and Shareholder Information - The company has a significant shareholder, Ace Champion, holding 468,750,000 shares, representing approximately 36.7% of the issued share capital[131] - The company has not granted any stock options under its stock option plan since its adoption on August 21, 2020, until March 31, 2024[136] - The company plans to review its corporate governance policies regularly to ensure compliance with governance codes[135] - The company has confirmed that no directors or senior management hold any interests in the company's shares or related securities as of March 31, 2024[127] Future Outlook and Strategic Plans - The group plans to continue focusing resources on developing its OBM business model, leveraging years of experience in product design and development[60] - The group aims to expand its business into the retail market, utilizing its rich technical knowledge and manufacturing capabilities[60] - The group is continuously reviewing the development plans for its OBM business to adapt to changing market conditions[61] - The group anticipates continued challenges through the fiscal year ending March 31, 2025, due to weak consumer sentiment and potential decreases in customer orders[80] - The company plans to continue monitoring industry developments and regularly review its business expansion plans[118] Compliance and Reporting - The company reported a comprehensive income statement for the year ending March 31, 2024, with figures consistent with the draft financial statements[169] - The annual report for the year ending March 31, 2024, will be published on the Hong Kong Stock Exchange website and the company's website at an appropriate time[170] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the accounting principles and internal controls for the fiscal year ending March 31, 2024[142]

Financial Performance - For the fiscal year ending March 31, 2024, total revenue was HKD 268,024,000, a decrease of 26.7% compared to HKD 365,561,000 for the previous year[3]. - Gross profit for the year was HKD 97,365,000, down 13.4% from HKD 112,411,000 in the prior year[3]. - Operating profit decreased significantly to HKD 39,709,000, representing a decline of 44.2% from HKD 71,067,000 year-over-year[3]. - Net profit for the year was HKD 38,716,000, a decrease of 39.8% compared to HKD 64,205,000 in the previous year[3]. - Basic and diluted earnings per share were HKD 3.0, down from HKD 5.0 in the prior year, reflecting a 40% decline[3]. - The company's profit attributable to equity holders decreased from approximately HKD 64.2 million in FY2023 to about HKD 38.7 million in FY2024, a decline of 39.7%[108]. - The group's net profit margin decreased by 3.2 percentage points from approximately 17.6% to about 14.4% during the same period[108]. Assets and Liabilities - Total assets as of March 31, 2024, amounted to HKD 475,916,000, an increase from HKD 456,779,000 the previous year[5]. - Total liabilities increased to HKD 61,805 million from HKD 51,415 million, representing a growth of 20.5% year-over-year[22]. - Total equity and liabilities reached HKD 475,916 million, compared to HKD 456,779 million, reflecting a growth of 4.2%[22]. - The company reported a total equity of HKD 414,111,000, up from HKD 405,364,000[5]. - The asset-to-liability ratio of the group was zero as of March 31, 2024, unchanged from the previous year[143]. - The group has no significant liabilities as of March 31, 2024, similar to the previous year[145]. Revenue Sources - The company reported significant revenue contributions from personal care appliances, with hair care series generating HKD 244,950,000, down from HKD 328,703,000[16]. - The company reported that five major customers accounted for approximately 99.3% of total revenue, slightly down from 99.4% in the previous year[31]. - The company’s revenue from customer A for the year ending March 31, 2024, is HKD 83,250,000, down from HKD 129,807,000 in 2023, a decline of 36%[54]. - The company recorded a significant drop in sales due to reduced demand for hair care products from two major customers, leading to a revenue of approximately HKD 268.0 million, down from about HKD 365.6 million in the fiscal year 2023[100]. Expenses and Costs - The cost of goods sold was HKD 105,647 million, down from HKD 167,949 million, showing a decrease of 37.1% year-over-year[34]. - Employee costs, including directors' remuneration, amounted to HKD 56,645 million, a decrease from HKD 68,142 million, representing a reduction of 16.5%[34]. - Sales and distribution expenses increased by approximately HKD 16.4 million (approximately 364.4%) to about HKD 20.9 million for the fiscal year 2024, attributed to marketing and distribution costs for launching self-branded personal care products in China and Hong Kong[80]. - Administrative expenses slightly decreased by approximately HKD 1.7 million (4.8%) to about HKD 33.9 million for the fiscal year 2024[81]. - The total employee cost for the group was approximately HKD 56.6 million, down from about HKD 68.1 million in the previous year[116]. Future Plans and Strategies - The company plans to focus on new product development and market expansion strategies in the upcoming fiscal year[3]. - The company plans to continue expanding its market presence and investing in new product development[30]. - The company is focusing on developing its OBM business model to improve overall business performance[78]. - The company plans to accelerate the development of its OBM (Original Brand Manufacturer) business model and continue marketing efforts to promote its self-branded personal care and lifestyle appliances in China and Hong Kong[101]. - The group plans to continue investing in the development of personal care products and ensure sufficient resources for its OBM business[104]. Dividends and Shareholder Returns - The company recognized a final dividend of HKD 29,407 million for the year, compared to HKD 19,178 million in the previous year, marking an increase of 53.4%[37]. - The board does not recommend the payment of a final dividend for the fiscal year 2024, compared to a final dividend of HKD 0.015 and a special dividend of HKD 0.008 for the fiscal year 2023[188]. - The company did not recommend the payment of a final dividend for the year ending March 31, 2024[61]. Market Conditions and Challenges - The company plans to continue facing significant challenges due to geopolitical tensions and economic uncertainties, impacting customer orders and demand[76]. - The company is evaluating the impact of new accounting standards and interpretations, with no significant expected impact on financial performance[28]. - The group will continue to monitor industry developments and regularly review its business expansion plans[146]. Research and Development - The company’s research and development efforts are ongoing, with plans to launch new products according to a structured business plan[77]. - The group aims to enhance its research and engineering capabilities, with a budget allocation of approximately HKD 16.4 million[120]. Cash and Financing - The company’s cash and cash equivalents as of March 31, 2024, total HKD 253,573,000, an increase from HKD 247,126,000 in 2023[46]. - As of March 31, 2024, the group had unused bank financing of approximately HKD 34.5 million[111]. - The group had no bank borrowings as of March 31, 2024, consistent with the previous year[142]. - As of March 31, 2024, the unused proceeds are deposited in several licensed banks in Hong Kong[152].

Financial Performance - For the six months ended September 30, 2023, the company reported revenue of HKD 125,661,000, a decrease of 44.5% compared to HKD 226,357,000 for the same period in 2022[7] - Gross profit for the same period was HKD 45,556,000, down 30.8% from HKD 65,810,000 year-over-year[7] - Operating profit decreased to HKD 19,311,000, a decline of 61.0% from HKD 49,515,000 in the previous year[7] - The company recorded a net profit of HKD 18,263,000, which is a 55.0% decrease compared to HKD 40,679,000 for the same period last year[7] - Basic and diluted earnings per share were HKD 1.4, down from HKD 3.2 in the previous year, reflecting a 56.3% decline[7] - The total comprehensive income for the six months ended September 30, 2023, was HKD 13,783,000, down from HKD 30,299,000, marking a decline of 54.5%[12] - For the six months ended September 30, 2023, the group recorded a profit of approximately HKD 18.3 million, a decrease of about 55.0% compared to HKD 40.7 million in the same period last year[43] - Net profit attributable to equity holders decreased by approximately HKD 22.4 million (about 55.0%) from approximately HKD 40.7 million in the first half of 2023 to approximately HKD 18.3 million in the first half of 2024, with net profit margin declining from 18.0% to 14.6%[52] Assets and Liabilities - Total assets as of September 30, 2023, amounted to HKD 458,107,000, slightly up from HKD 456,779,000 as of March 31, 2023[10] - The company's total liabilities increased to HKD 67,094,000 from HKD 51,415,000, representing a 30.5% rise[10] - Cash and cash equivalents at the end of the period were HKD 237,538,000, slightly down from HKD 234,168,000 at the end of the previous year[13] - The company had no bank borrowings as of September 30, 2023, and maintained an asset-liability ratio of zero[56] Revenue Breakdown - Revenue from personal care appliances for the six months ended September 30, 2023, was HKD 123,266,000, a significant drop of 44.7% compared to HKD 222,835,000 in the same period last year[23] - Revenue from Japan decreased to HKD 77,891 thousand from HKD 131,270 thousand, representing a decline of approximately 40.5% year-on-year[25] - Revenue from the United States dropped to HKD 32,617 thousand from HKD 78,222 thousand, a decrease of about 58.3% year-on-year[25] Cash Flow and Investments - Operating cash flow for the six months ended September 30, 2023, was HKD 26,717,000, down from HKD 87,929,000 in the previous year, indicating a decrease of 69.6%[13] - The company reported a net cash outflow from investing activities of HKD 6,000,000, compared to HKD 5,890,000 in the previous year, indicating a slight increase in cash used for investments[13] Dividends and Shareholder Returns - The company paid dividends totaling HKD 29,407,000 during the period, an increase from HKD 19,178,000 in the previous year, reflecting a rise of 53.5%[13] - The company did not declare any interim dividend for the six months ended September 30, 2023, consistent with the previous year[35] Strategic Focus and Future Plans - The company plans to focus on research and development to enhance product offerings and market expansion strategies moving forward[6] - The company continues to develop new personal care and lifestyle products under its own brand (OBM) to capture potential retail market opportunities[42] - The company aims to offset the decline in sales demand by creating and promoting high-value new products and seeking new business opportunities with clients[43] - The company plans to continue enhancing product competitiveness and R&D capabilities to increase market share and establish long-term relationships with customers amid global economic uncertainties[44] - The company will maintain strict cost control and operational efficiency to mitigate potential impacts from geopolitical instability and economic uncertainty[44] Corporate Governance and Compliance - The company has maintained compliance with all provisions of the corporate governance code during the reporting period, except for the separation of the roles of Chairman and CEO, which are held by Mr. Li Shuye[75] - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited interim financial information and found it to comply with applicable accounting standards and listing rules[85] - The company confirms that its public float has been maintained in accordance with listing rules throughout the reporting period[83] - The company emphasizes that forward-looking statements in the report cannot be guaranteed to be achieved or accurate, advising caution for shareholders and potential investors[84] Utilization of Proceeds - The net proceeds from the global offering amount to approximately HKD 66.2 million, with actual utilization during the reporting period being HKD 43.3 million[67] - 54.5% of the proceeds (HKD 36.1 million) are allocated for expanding and upgrading production facilities, with HKD 21.4 million already utilized[67] - 24.8% of the proceeds (HKD 16.4 million) are designated for enhancing research and engineering capabilities, with HKD 15.7 million utilized[67] - 12.9% of the proceeds (HKD 8.5 million) are intended for introducing new products under the company's brand, with only HKD 2.0 million utilized[67] - 3.5% of the proceeds (HKD 2.3 million) are aimed at strengthening sales and marketing efforts in global markets, with HKD 1.5 million utilized[67] - 4.3% of the proceeds (HKD 2.9 million) are allocated for upgrading IT systems and design software, with HKD 2.7 million utilized[67] - As of September 30, 2023, the unutilized net proceeds are stored in licensed banks in Hong Kong, amounting to HKD 40.1 million[68] - The company plans to utilize the remaining proceeds by June 2024, subject to market conditions[68] Employee Costs - The total employee cost during the reporting period was approximately HKD 27.0 million, down from approximately HKD 38.3 million in the first half of 2023[63] Shareholder Information - The major shareholder, Ace Champion, holds 468,750,000 shares, representing approximately 36.7% of the issued share capital[73] - The company maintains a cautious strategy regarding the utilization of proceeds to remain flexible in response to changing market conditions[68] - The company expresses gratitude to shareholders, investors, employees, and business partners for their ongoing support[86]

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所產生或因依賴該等內容而引致的任何損 失承擔任何責任。 FOURACE INDUSTRIES GROUP HOLDINGS LIMITED 科 利 實 業 控 股 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1455） 截 至 二 零 二 三 年 九 月 三 十 日 止 六 個 月 的 未 經 審 核 中 期 業 績 公 告 財務摘要 • 截至二零二三年九月三十日止六個月（「二零二四年上半年」或「報告 期間」）的收益較截至二零二二年九月三十日止六個月（「二零二三年 上半年」）的226.4百萬港元減少44.5%至125.7百萬港元 • 二 零 二 四 年 上 半 年 的 毛 利 減 少30.7%至45.6百 萬 港 元（二 零 二 三 年 上 半 年：65.8百 萬 港 元），而 二 零 二 四 年 上 半 年 的 毛 利 率 則 增 加7.2%至 36.3%（二零二三年上半年：29.1%） • 二 零 二 四 年 上 半 年 的 本 ...

Financial Performance - The company's total revenue for the fiscal year 2023 was approximately HKD 365.6 million, a decrease of about 22.8% from HKD 473.4 million in the fiscal year 2022[10]. - Sales of hair care products decreased by approximately 21.0% to about HKD 328.7 million, primarily due to a decline in demand in the US market[10]. - The company's sales in the US market dropped by approximately 55.5% to about HKD 104.0 million, compared to HKD 233.7 million in the previous fiscal year[10]. - Conversely, sales in the Japanese market increased by approximately 19.6% to about HKD 220.6 million, up from HKD 184.4 million[10]. - The group's gross profit decreased by approximately HKD 7.8 million (6.5%) to about HKD 112.4 million, while the gross profit margin increased by approximately 5.3 percentage points to about 30.7%[17]. - Profit attributable to equity holders increased by approximately 7.5% to about HKD 64.2 million, compared to HKD 59.7 million in the previous fiscal year[12]. - Net profit attributable to equity holders increased by approximately HKD 4.5 million (7.5%) to about HKD 64.2 million, with a net profit margin rising by approximately 5.0 percentage points to about 17.6%[21]. Cost Management - The gross profit margin increased by approximately 5.3% to about 30.7%, compared to 25.4% in the previous fiscal year, due to cost control measures and a decrease in direct labor costs[11]. - Administrative expenses slightly decreased by approximately HKD 1.8 million (4.8%) to about HKD 35.6 million[18]. - Financing costs recorded approximately HKD 1,000, a significant decrease from HKD 24,000 in the previous fiscal year, as the group had no bank borrowings since June 2022[19]. - Income tax expenses decreased by approximately HKD 0.5 million (4.0%) to about HKD 12.1 million, with an effective tax rate of approximately 15.8%[20]. - The company will maintain strict cost control and streamline operations to improve operational efficiency[14]. Cash and Debt Position - The overall financial condition of the company remains stable, with no bank borrowings reported[7]. - As of March 31, 2023, the group maintained cash and bank balances of approximately HKD 247.1 million, up from HKD 172.2 million a year earlier[23]. - The group had no bank borrowings as of March 31, 2023, compared to approximately HKD 0.3 million a year earlier, resulting in a debt-to-equity ratio of zero[26][27]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.015 per share and a special dividend of HKD 0.008 per share, pending shareholder approval[36]. - The board proposed a final dividend of HKD 0.015 per share and a special dividend of HKD 0.008 per share, subject to shareholder approval[68]. Management and Governance - The company has a strong management team with extensive experience in production and operational management, particularly in its wholly-owned subsidiary Shenzhen Keli Electric Co., Ltd., which is crucial for maintaining production efficiency[44]. - The independent non-executive directors bring over 20 years of experience in corporate finance, accounting, and auditing, enhancing the company's governance and strategic oversight[46]. - The leadership team is committed to maintaining high standards of corporate governance and financial transparency, which is essential for investor confidence and long-term sustainability[46]. - The company has established compliance oversight through its management team, ensuring adherence to regulations[60]. - The company has a diverse board with members holding various professional qualifications, enhancing governance[52]. - The company has established a corporate governance policy that is regularly reviewed to ensure compliance with the corporate governance code[157]. - The board is responsible for overall management, strategy planning, and compliance with legal and regulatory requirements[160]. Market Strategy and Development - The company plans to continue investing in R&D to enhance its technical team's capabilities and to introduce high-value products to explore new revenue sources[13]. - The company remains committed to its strategy of developing its own brand products and pursuing an Own Brand Manufacturing (OBM) model in potential markets[13]. - The company is focused on expanding its market presence and developing new products and technologies to meet consumer demands and enhance competitiveness in the industry[39]. - The company is actively pursuing strategies for market expansion and potential mergers and acquisitions to strengthen its market position and drive future growth[39]. - The company reported a significant increase in overall sales and marketing strategies, with a focus on business development led by Chairman and CEO Mr. Li Shuye, who has over 35 years of experience in the small household appliances and personal care appliances industry[39]. Employee Relations - The company maintained a stable relationship with its 541 employees, with no significant labor disputes reported during the fiscal year[82]. - Total employee costs for the period were approximately HKD 68.1 million, down from HKD 96.4 million in the previous year, with a total of 541 employees[34]. Risk Management and Internal Controls - The risk management system identified no significant risks during the 2022/23 risk assessment[192]. - The internal control system aligns with the COSO 2013 framework, ensuring operational effectiveness and compliance with laws[193]. - The board has conducted an annual review of the effectiveness of risk management and internal control procedures through the audit committee, with no significant improvements required[197]. - An external independent internal control consultant was appointed to review the internal control procedures at both the company and business levels[197]. Shareholder Information - The company reported a significant reliance on its top five customers, with sales accounting for 99.4% of total revenue in the fiscal year 2023, down from 99.8% in fiscal year 2022[87]. - The largest customer contributed 35.5% of total revenue in fiscal year 2023, a decrease from 54.0% in fiscal year 2022[87]. - Procurement from the top five suppliers accounted for 42.9% of total purchases in fiscal year 2023, up from 34.1% in fiscal year 2022[87]. - The largest supplier represented 12.7% of total purchases in fiscal year 2023, compared to 11.6% in fiscal year 2022[87]. Stock Options and Incentives - The stock option plan adopted on August 21, 2020, allows for a total of 125,000,000 shares to be issued, representing approximately 9.78% of the company's issued share capital as of March 31, 2023[114]. - No stock options have been granted under the stock option plan since its adoption up to the report date[106]. - The stock option plan aims to reward selected eligible individuals for their contributions to the group's growth and development[107].

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所產生或因依賴該等內容而引致的任何損 失承擔任何責任。 FOURACE INDUSTRIES GROUP HOLDINGS LIMITED 科 利 實 業 控 股 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1455） 截 至 二 零 二 三 年 三 月 三 十 一 日 止 年 度 的 全 年 業 績 公 告 財務摘要 • 截至二零二三年三月三十一日止年度（「二零二三年財政年度」或「報 告期間」）的收益較截至二零二二年三月三十一日止年度（「二零二二 年財政年度」）的約473.4百萬港元減少22.8%至約365.6百萬港元。 • 二 零 二 三 年 財 政 年 度 的 毛 利 減 少6.5%至 約112.4百 萬 港 元（二 零 二 二 年財政年度：約120.2百萬港元）。於二零二三年財政年度，毛利率增 加5.3個百分點至30.7%（二零二二年財政年度：25.4%）。 • 二 零 二 三 年 財 政 年 度 的 本 公 司 權 益 持 ...

Financial Performance - For the six months ended September 30, 2022, the company reported revenue of HKD 226,357,000, an increase of 3.4% compared to HKD 218,180,000 for the same period in 2021[19] - Gross profit for the same period was HKD 65,810,000, representing a gross margin of approximately 29.1%, up from HKD 56,626,000 in the previous year[19] - The company achieved a net profit of HKD 40,679,000, which is a 54.2% increase from HKD 26,384,000 in the prior year[16] - The overall comprehensive income for the period was HKD 30,299,000, compared to HKD 27,638,000 in the previous year, reflecting a positive trend[21] - The group reported a net profit attributable to shareholders of HKD 40,679,000 for the six months ended September 30, 2022, compared to HKD 26,384,000 in 2021, reflecting an increase of approximately 54.3%[63] - Basic earnings per share rose to HKD 3.2 for the six months ended September 30, 2022, compared to HKD 2.1 in the previous year, indicating a growth of approximately 52.4%[63] Assets and Equity - Total assets as of September 30, 2022, were HKD 452,695,000, a decrease from HKD 470,034,000 as of March 31, 2022[24] - The company's total equity increased to HKD 377,177,000 from HKD 364,783,000, reflecting a growth of 3.4%[24] - The company's retained earnings as of September 30, 2022, were HKD 280,451,000, an increase from HKD 227,705,000 as of September 30, 2021[30] - The company’s total equity as of September 30, 2022, was HKD 377,177,000, compared to HKD 328,249,000 as of September 30, 2021, reflecting growth in shareholder equity[30] Cash Flow and Liquidity - Cash and cash equivalents rose significantly to HKD 234,168,000 from HKD 172,229,000, indicating a strong liquidity position[24] - For the six months ended September 30, 2022, the net cash generated from operating activities was HKD 89,593,000, compared to HKD 15,945,000 for the same period in 2021, representing a significant increase[33] - Cash and cash equivalents increased by HKD 62,344,000 during the period, rising from HKD 172,229,000 at the beginning to HKD 234,168,000 at the end[33] - The company incurred a net cash outflow from investing activities of HKD 5,890,000, compared to HKD 8,283,000 in the prior year[33] Operational Efficiency - The company reported a decrease in trade receivables to HKD 43,179,000 from HKD 89,210,000, suggesting improved collection efficiency[24] - Employee costs decreased by 17.3% or HKD 8.0 million due to operational streamlining and reduction of non-essential staff[75] - The total expenses for the six months ended September 30, 2022, were HKD 184,815,000, slightly down from HKD 186,674,000 in the same period of 2021, showing a decrease of approximately 1.0%[59] Market and Growth Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[18] - The company plans to launch its own brand of beauty devices and smart toilets in the mainland China market in the first and second halves of 2023, respectively, to drive revenue growth[76] - The group’s revenue for personal care appliances reached HKD 222,835,000 for the six months ended September 30, 2022, compared to HKD 207,906,000 for the same period in 2021, representing an increase of approximately 7.0%[50] Foreign Exchange and Other Income - The group experienced a foreign exchange gain of HKD 6,153,000 for the six months ended September 30, 2022, compared to a loss of HKD 126,000 in the same period of 2021[54] - The company confirmed a foreign exchange gain of approximately HKD 6.2 million during the reporting period, attributed to the depreciation of the RMB against the USD[75] - The group recorded a net gain of HKD 6,411,000 from other income for the six months ended September 30, 2022, compared to a loss of HKD 126,000 in the same period of 2021[54] Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code throughout the reporting period[120] - The audit committee, consisting of three independent non-executive directors, has reviewed the interim financial information and found it compliant with applicable accounting standards[130] - The company confirms that its major shareholders do not have interests in competing businesses[126] Shareholder Information - As of September 30, 2022, the board and senior management held significant interests in the company, with Mr. Li Shuye owning approximately 36.7% of the shares[107][110] - Ace Champion holds 468,750,000 shares, representing 36.7% of the company's issued share capital[113] Future Outlook - The company will continue to monitor industry developments and review its business expansion plans regularly[95] - Forward-looking statements in the report cannot be guaranteed to be achieved or accurate, and stakeholders are advised to exercise caution[129]

Financial Performance - The company reported revenue of approximately HKD 473.4 million for the fiscal year ending March 31, 2022, representing an increase of 8.2% year-on-year[9]. - Profit attributable to equity holders increased by 2.8% to approximately HKD 59.7 million, compared to HKD 58.1 million in the previous fiscal year[9]. - The gross profit decreased by approximately HKD 7.8 million or 6.1% to about HKD 120.2 million, with the gross margin declining by 3.9 percentage points to 25.4% due to rising raw material costs and the appreciation of the Renminbi against the US dollar[26]. - The net profit attributable to equity holders increased by approximately HKD 1.6 million or 2.8% to about HKD 59.7 million, with the net profit margin decreasing by 0.7 percentage points to 12.6%[30]. - The total employee cost for the group during the reporting period was approximately HKD 96.4 million, an increase from HKD 81.5 million in the previous fiscal year[45]. - The administrative expenses decreased by approximately HKD 4.2 million or 10.1% to about HKD 37.4 million, mainly due to the absence of listing expenses recorded in the previous fiscal year[27]. Sales and Market Performance - The company's hair care product sales in the US and Japan grew by 13.6% and 8.5% respectively during the reporting period[10]. - In the fiscal year 2022, the group's total revenue increased by approximately HKD 36.0 million or 8.2% to about HKD 473.4 million, primarily driven by a sales increase of HKD 70.1 million in personal care appliances, particularly hair care products[25]. - The sales of hair care products increased by 20.2% to HKD 416.2 million, while sales of grooming products decreased by 31.3% to HKD 30.5 million, and beauty products saw a significant decline of 85.7% to HKD 3.3 million[17]. - The group reported a geographical revenue breakdown with the US accounting for 49.4% of sales, Japan at 38.9%, Europe at 6.7%, and other regions at 5.0%[20]. Product Development and Launches - The company plans to launch its smart toilet product in mainland China by the second quarter of 2023, which is currently undergoing quality and technical testing[10]. - A new beauty product under the company's own brand has completed technical validation and is in the design phase, with an expected launch in mainland China by the first quarter of 2023[11]. - The group plans to launch its own brand of smart toilet machines and beauty devices in mainland China in the first and second quarters of 2023, respectively, aiming to capture market opportunities and drive revenue growth[21]. - The company continues to invest in R&D to enhance product quality and reduce operational costs[10]. Challenges and Risks - The company is facing challenges such as supply chain disruptions, raw material shortages, and rising costs due to the COVID-19 pandemic[10]. - The company does not participate in any currency hedging activities, exposing it to foreign exchange risks that could adversely affect its operating costs and financial condition[39]. Corporate Governance - The audit committee consists of three independent non-executive directors as of March 31, 2022, ensuring compliance with corporate governance codes[157]. - The company has established an audit committee, remuneration committee, and nomination committee to assist the board in fulfilling its responsibilities[185]. - The board consists of six members, including three executive directors and three independent non-executive directors[181]. - The company has maintained compliance with all corporate governance code provisions, except for a deviation regarding the roles of the chairman and CEO[164]. Shareholder Information - The board proposed a final dividend of HKD 0.015 per share, down from HKD 0.038 per share in the previous fiscal year, subject to shareholder approval[47]. - The board is unaware of any shareholders waiving or agreeing to waive their dividend rights as of the report date[81]. - The company has not entered into any management or administrative contracts concerning any significant part of its business as of March 31, 2022[125]. Future Outlook - Overall, the company remains optimistic about future growth, with a long-term vision to achieve a revenue target of $M million by 2025[61]. - The company provided guidance for the next quarter, expecting revenue to be between $A million and $B million, indicating a growth rate of C%[61]. - New product launches are anticipated to contribute an additional $D million in revenue, with a focus on innovative technology in the upcoming year[61].

Financial Performance - For the six months ended September 30, 2021, the company reported revenue of HKD 218,180,000, an increase of 8.5% compared to HKD 201,159,000 for the same period in 2020[11] - Gross profit for the same period was HKD 56,626,000, down 9.5% from HKD 62,425,000 year-on-year[11] - The company recorded a net profit of HKD 26,384,000, a decrease of 2.8% from HKD 27,140,000 in the previous year[11] - Total revenue for the six months ended September 30, 2021, was HKD 218,180,000, an increase of 8.9% compared to HKD 201,159,000 for the same period in 2020[33] - Net profit attributable to equity holders decreased by approximately HKD 0.7 million (about 2.6%) to approximately HKD 26.4 million, resulting in a net profit margin decline to 12.1% from 13.5%[73] Assets and Liabilities - Total assets as of September 30, 2021, amounted to HKD 447,219,000, an increase from HKD 427,134,000 as of March 31, 2021[12] - Current assets increased to HKD 326,043,000 from HKD 308,306,000, driven by higher inventory and trade receivables[12] - The company’s total liabilities increased to HKD 118,970,000 from HKD 79,676,000, primarily due to higher trade payables[15] - Trade payables totaled HKD 81,913,000 as of September 30, 2021, compared to HKD 44,910,000 as of March 31, 2021, indicating a significant increase in liabilities[51] Cash Flow and Dividends - For the six months ended September 30, 2021, the company reported a net cash inflow from operating activities of HKD 17,575,000, compared to a net cash outflow of HKD 9,873,000 for the same period in 2020[21] - The company paid dividends amounting to HKD 47,500,000 during the period[21] - The company’s cash and cash equivalents decreased by HKD 41,754,000, resulting in a closing balance of HKD 124,292,000 as of September 30, 2021[21] Operational Highlights - The company plans to focus on market expansion and new product development in the upcoming quarters[11] - Research and development expenses were HKD 4,092,000, reflecting the company's commitment to innovation despite a challenging market[11] - The company incurred capital expenditures of HKD 8,283,000 for the purchase of property, plant, and equipment during the period[21] - The company is upgrading production facilities to enhance automation and increase production capacity, aiming for stable business growth[65] Shareholder Information - Ace Champion Inc. holds 468,750,000 shares, representing 37.5% of the company's issued share capital[112] - 永金有限公司 also holds 468,750,000 shares, accounting for 37.5% of the issued share capital[113] - 薛可雲女士 has controlled corporation interests in 468,750,000 shares, which is 37.5% of the total[110] - 陳盼盼女士, as the spouse of 李舒野先生, is deemed to have interests in 468,750,000 shares, equating to 37.5%[115] Corporate Governance - The company has complied with the corporate governance code during the reporting period, with no deviations noted[118] - The roles of Chairman and CEO are held by 李舒野先生, with no current plans to separate these roles despite corporate governance recommendations[118] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial information and found it compliant with applicable accounting standards and listing rules[127]