[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Key Financial Metrics | Metric | For the six months ended June 30, 2025 (HKD in thousands / %) | For the six months ended June 30, 2024 (HKD in thousands / %) | Change (HKD in thousands / percentage points) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 327,300 | 301,900 | +25,400 | +8.4% | | Gross Profit | 80,800 | 100,700 | -19,900 | -19.8% | | Gross Profit Margin | 24.7% | 33.3% | -8.6 percentage points | - | | Profit attributable to equity holders of the Company | 30,100 | 48,500 | -18,400 | -38.0% | | Net Profit Margin | 9.2% | 16.1% | -6.9 percentage points | - | | Basic earnings per share | 8.38 HK cents | 13.52 HK cents | -5.14 HK cents | -38.0% | | Interim dividend (per ordinary share) | 7.0 HK cents | - | - | - | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) The Group's revenue grew 8.4% year-over-year, but gross profit and profit for the period declined by 19.8% and 38.0% respectively due to higher costs Statement of Profit or Loss | Metric | For the six months ended June 30, 2025 (HKD in thousands) | For the six months ended June 30, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Revenue | 327,295 | 301,933 | | Cost of sales | (246,514) | (201,268) | | Gross Profit | 80,781 | 100,665 | | Other income and gains, net | 6,612 | 9,183 | | Selling and distribution expenses | (7,058) | (7,231) | | General and administrative expenses | (44,243) | (44,770) | | Other expenses, net | 896 | 176 | | Finance costs | (1,696) | (998) | | Profit before tax | 35,292 | 57,025 | | Income tax expense | (5,223) | (8,492) | | Profit for the period | 30,069 | 48,533 | | Basic earnings per share | 8.38 HK cents | 13.52 HK cents | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for the period decreased by 30.3% year-over-year, primarily driven by lower profit, partially offset by a gain on currency translation Statement of Comprehensive Income | Metric | For the six months ended June 30, 2025 (HKD in thousands) | For the six months ended June 30, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Profit for the period | 30,069 | 48,533 | | Exchange differences on translation of foreign operations | 2,811 | (1,365) | | Total comprehensive income for the period | 32,880 | 47,168 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net current assets and net assets decreased due to a significant rise in current liabilities despite higher current assets Statement of Financial Position | Metric | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Total non-current assets | 209,242 | 218,267 | | Total current assets | 348,324 | 336,189 | | Total current liabilities | 200,018 | 165,612 | | Net current assets | 148,306 | 170,577 | | Total assets less current liabilities | 357,548 | 388,844 | | Total non-current liabilities | 27,425 | 33,802 | | Net assets | 330,123 | 355,042 | | Total equity | 330,123 | 355,042 | [Notes to the Financial Statements](index=6&type=section&id=Notes%20to%20the%20Financial%20Statements) [Company Information](index=6&type=section&id=Company%20Information) The Company, incorporated in the Cayman Islands, primarily manufactures and sells electric home appliances, with Modern Expression Limited as its ultimate holding company - The Company is principally engaged in the **manufacturing and sale of electric home appliances**[12](index=12&type=chunk) - The Company's ultimate holding company is **Modern Expression Limited**[12](index=12&type=chunk) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim financial information is prepared under HKAS 34 and aligns with annual accounting policies, with no material impact from newly adopted amendments - The interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard (HKAS) 34 "Interim Financial Reporting" issued by the HKICPA[13](index=13&type=chunk) - The new adoption of amendments to HKAS 21 "Lack of Exchangeability" has **no impact** on the interim condensed consolidated financial information[15](index=15&type=chunk) [Operating Segment and Geographical Information](index=7&type=section&id=Operating%20Segment%20and%20Geographical%20Information) The Group's revenue from Europe declined while Asia grew significantly, and its non-current assets are primarily located in Hong Kong and Mainland China [Revenue from External Customers](index=7&type=section&id=Revenue%20from%20External%20Customers) The Group's total revenue from external customers increased by 8.4%, driven by a substantial 149.7% growth in the Asian market that offset a decline in Europe Revenue by Region | Region | For the six months ended June 30, 2025 (HKD in thousands) | For the six months ended June 30, 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Europe | 259,930 | 270,240 | -3.8% | | Asia | 59,922 | 24,002 | +149.7% | | USA | 2,053 | 3,347 | -38.6% | | Others | 5,390 | 4,344 | +24.1% | | Total Revenue | 327,295 | 301,933 | +8.4% | [Non-current Assets](index=7&type=section&id=Non-current%20Assets) The Group's total non-current assets decreased slightly, with a higher concentration in Mainland China compared to Hong Kong Non-current Assets by Region | Region | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Hong Kong | 97,457 | 100,243 | | Mainland China | 108,867 | 114,687 | | Total Non-current Assets | 206,324 | 214,930 | [Major Customers Information](index=8&type=section&id=Major%20Customers%20Information) Revenue contribution from major customers shifted, with significant growth from Customer C offsetting declines from Customers A and B Revenue from Major Customers | Customer | For the six months ended June 30, 2025 (HKD in thousands) | For the six months ended June 30, 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Customer C | 81,409 | 64,691 | +25.8% | | Customer A | 72,096 | 84,257 | -14.4% | | Customer B | 36,425 | 42,986 | -15.3% | [Analysis of Revenue, Other Income and Gains, Net](index=8&type=section&id=Analysis%20of%20Revenue%2C%20Other%20Income%20and%20Gains%2C%20Net) The Group's revenue from customer contracts grew 8.4%, while other income and gains fell 28.0% due to lower bank interest and foreign exchange gains Revenue and Other Income Analysis | Metric | For the six months ended June 30, 2025 (HKD in thousands) | For the six months ended June 30, 2024 (HKD in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue (from contracts with customers) | 327,295 | 301,933 | +8.4% | | Total other income and gains, net | 6,612 | 9,183 | -28.0% | | - Bank interest income | 1,451 | 3,381 | -57.0% | | - Consultation income | 1,664 | 1,891 | -12.0% | | - Net foreign exchange differences | 2,686 | 3,475 | -22.7% | [Items Deducted/Credited in Arriving at Profit Before Tax](index=9&type=section&id=Items%20Deducted%2FCredited%20in%20Arriving%20at%20Profit%20Before%20Tax) Profit before tax was impacted by higher cost of inventories sold, increased depreciation of right-of-use assets, and a larger reversal of trade receivables impairment Profit Before Tax Items | Item | For the six months ended June 30, 2025 (HKD in thousands) | For the six months ended June 30, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Cost of inventories sold | 246,514 | 201,268 | | Depreciation of property, plant and equipment | 7,165 | 7,651 | | Depreciation of right-of-use assets | 9,417 | 7,345 | | Net reversal of impairment of trade receivables | (982) | (182) | | Reversal of write-down of inventories to net realisable value | (851) | (2,664) | [Income Tax](index=9&type=section&id=Income%20Tax) The Group's income tax expense decreased by 38.5% year-over-year, in line with lower pre-tax profit, while the effective tax rate remained stable Income Tax Expense Breakdown | Item | For the six months ended June 30, 2025 (HKD in thousands) | For the six months ended June 30, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Current Hong Kong profits tax | 1,585 | 5,849 | | Current Mainland China profits tax | 2,277 | 3,826 | | Deferred tax | 1,361 | (996) | | Total tax charge for the period | 5,223 | 8,492 | - Hong Kong profits tax is calculated at **16.5%**, with the first HK$2 million of assessable profits for qualifying entities taxed at **8.25%**[22](index=22&type=chunk) [Dividends](index=10&type=section&id=Dividends) The Group recognized the 2024 final dividend and proposed a 2025 interim dividend of 7.0 HK cents per share, a decrease from the prior year Dividend Payments | Dividend Type | For the six months ended June 30, 2025 (HKD in thousands) | For the six months ended June 30, 2024 (HKD in thousands) | | :--- | :--- | :--- | | 2024 Final Dividend (16.1 HK cents per share) | 57,799 | 54,209 | | 2025 Proposed Interim Dividend (7.0 HK cents per share) | 25,130 | 39,490 | [Earnings Per Share](index=10&type=section&id=Earnings%20Per%20Share) The Group's basic earnings per share decreased by 38.0% year-over-year due to lower profit for the period, with no potential dilutive ordinary shares outstanding Earnings Per Share Calculation | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Profit attributable to ordinary equity holders of the Company | HK$30,069,000 | HK$48,533,000 | | Weighted average number of ordinary shares in issue | 359,000,000 shares | 359,000,000 shares | | Basic earnings per share | 8.38 HK cents | 13.52 HK cents | - The Group had **no potential dilutive ordinary shares** in issue during the period[27](index=27&type=chunk) [Trade and Bills Receivables](index=10&type=section&id=Trade%20and%20Bills%20Receivables) The Group's net trade and bills receivables increased, with credit terms typically ranging from one to four months and a significant drop in receivables aged over 90 days Trade and Bills Receivables Breakdown | Metric | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Trade receivables | 139,636 | 135,704 | | Bills receivable | 2,620 | – | | Impairment | (2,653) | (3,635) | | Net carrying amount | 139,603 | 132,069 | - The credit period is generally **one month**, extendable to **four months** for major customers[29](index=29&type=chunk) Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Within 30 days | 64,887 | 18,903 | | 31 to 90 days | 51,907 | 54,691 | | Over 90 days | 22,809 | 58,475 | | Total | 139,603 | 132,069 | [Trade Payables](index=11&type=section&id=Trade%20Payables) The Group's total trade payables increased significantly, with a higher proportion of payables aged over 90 days Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (HKD in thousands) | December 31, 2024 (HKD in thousands) | | :--- | :--- | :--- | | Within 30 days | 32,516 | 13,231 | | 31 to 90 days | 66,704 | 43,056 | | Over 90 days | 9,258 | 2,167 | | Total | 108,478 | 58,454 | - Trade payables are **non-interest-bearing** and are normally settled within **30 to 90 days**[31](index=31&type=chunk) [Management Discussion and Analysis](index=12&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=12&type=section&id=Business%20Review) The Group demonstrated resilience amid macroeconomic challenges, mitigating supply chain risks and achieving significant revenue growth in Asia with new product launches - Global trade tensions, geopolitical conflicts, and supply chain disruptions persisted, with the **European market shrinking** due to declining purchasing power and currency fluctuations[32](index=32&type=chunk) - Strategic investments in **automation and standardization** improved manufacturing precision, supplier flexibility, inventory efficiency, and process resilience[32](index=32&type=chunk) - The product portfolio was expanded with price-competitive offerings, leading to a substantial increase in revenue from the Asian market from approximately **HK$24.0 million to HK$59.9 million**[33](index=33&type=chunk) [Outlook](index=12&type=section&id=Outlook) The Group will focus on sustainable growth by developing new product categories, leveraging advanced brewing systems, and expanding into China and the Middle East - Resources will shift from incremental product extensions to developing new product categories with long-term potential, initially focusing on **kitchen appliances for the Southeast Asian market**[34](index=34&type=chunk) - The upcoming revolutionary **fourth-generation fully automatic coffee machine** is expected to set new industry benchmarks and drive future growth[34](index=34&type=chunk) - The Group will accelerate product development cycles, enhance production automation, and actively explore the **Chinese and Middle Eastern markets** to diversify revenue streams[35](index=35&type=chunk)[36](index=36&type=chunk) [Financial Review](index=13&type=section&id=Financial%20Review) The Group's revenue increased, but gross and net profit declined significantly due to rising costs and product line optimization, while operating expenses were controlled [Revenue](index=13&type=section&id=Revenue_FR) The Group's total revenue increased by 8.4% year-over-year, primarily driven by higher sales of cooking appliances - Total revenue increased by approximately **8.4%** from approximately HK$301.9 million to approximately HK$327.3 million[37](index=37&type=chunk) - The increase was mainly attributable to the **increase in sales of cooking appliances** during the period[37](index=37&type=chunk) [Gross Profit and Gross Margin](index=14&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by 19.8% and gross margin fell by 8.6 percentage points to 24.7%, mainly due to higher costs and the launch of lower-margin products - Gross profit decreased by approximately **19.8%** from approximately HK$100.7 million to approximately HK$80.8 million[38](index=38&type=chunk) - Gross profit margin decreased by approximately **8.6 percentage points** from approximately 33.3% to approximately 24.7%[38](index=38&type=chunk) - The decrease was mainly due to an **increase in direct labor costs and overheads**, as well as the launch of products with lower gross profit margins[38](index=38&type=chunk) [Other Income and Gains, Net](index=14&type=section&id=Other%20Income%20and%20Gains%2C%20Net_FR) Other income and gains, net, decreased by 28.0%, primarily due to the combined effect of lower bank interest income and reduced foreign exchange gains - Other income and gains, net, decreased by approximately HK$2.6 million from approximately HK$9.2 million to approximately **HK$6.6 million**[39](index=39&type=chunk) - The decrease was mainly due to a **decrease in bank interest income** of approximately HK$1.9 million and a **decrease in foreign exchange gains** of approximately HK$0.8 million[39](index=39&type=chunk) [Selling and Distribution Expenses](index=14&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses slightly decreased, as lower advertising and staff costs were partially offset by higher transportation and export credit insurance expenses - Selling and distribution expenses slightly decreased by approximately HK$0.1 million from approximately HK$7.2 million to approximately **HK$7.1 million**[40](index=40&type=chunk) - The decrease was mainly due to a **decrease in advertising and promotion expenses** of approximately HK$0.2 million and a **decrease in staff costs** of approximately HK$0.3 million, offset by an increase in transportation expenses and export credit insurance premiums of approximately HK$0.3 million[40](index=40&type=chunk) [General and Administrative Expenses](index=15&type=section&id=General%20and%20Administrative%20Expenses) General and administrative expenses slightly decreased through effective cost control, despite increases in depreciation and employee benefit expenses - General and administrative expenses slightly decreased by approximately HK$0.6 million from approximately HK$44.8 million to approximately **HK$44.2 million**[41](index=41&type=chunk) - Major decreases included legal and professional fees, staff welfare expenses, office expenses, travel expenses, audit fees, entertainment expenses, and depreciation of property, plant and equipment[41](index=41&type=chunk) [Other Expenses, Net](index=15&type=section&id=Other%20Expenses%2C%20Net) Other expenses, net, shifted from a net expense to net income, primarily due to an increased reversal of impairment on trade receivables - Other expenses, net, recorded a **net income of approximately HK$0.9 million**, compared to a net expense of approximately HK$0.2 million in the prior period[42](index=42&type=chunk) - The improvement was mainly due to an **increase in the net reversal of impairment of trade receivables** of approximately HK$0.8 million during the period[42](index=42&type=chunk) [Finance Costs](index=15&type=section&id=Finance%20Costs) Finance costs increased by 70.0% year-over-year, mainly driven by higher interest expenses on lease liabilities and bank loans - Finance costs increased by approximately HK$0.7 million from approximately HK$1.0 million to approximately **HK$1.7 million**[43](index=43&type=chunk) - The increase was due to an **increase in interest expenses on lease liabilities** of approximately HK$0.5 million and an **increase in interest expenses on bank loans** of approximately HK$0.2 million[43](index=43&type=chunk) [Income Tax Expense](index=16&type=section&id=Income%20Tax%20Expense_FR) Income tax expense decreased by 38.8%, consistent with the decline in pre-tax profit, while the effective tax rate remained stable - Income tax expense decreased by approximately HK$3.3 million from approximately HK$8.5 million to approximately **HK$5.2 million**[44](index=44&type=chunk) - The effective tax rates were approximately **14.9% (2024) and 14.8% (2025)**, representing a decrease of approximately 0.1 percentage points[44](index=44&type=chunk) [Profit for the Period](index=16&type=section&id=Profit%20for%20the%20Period) Profit for the period decreased significantly by 38.0%, with the net profit margin falling 6.9 percentage points to 9.2%, primarily due to lower gross profit - Profit for the period decreased by approximately HK$18.4 million or approximately **38.0%** from approximately HK$48.5 million to approximately **HK$30.1 million**[45](index=45&type=chunk) - The net profit margin decreased by approximately **6.9 percentage points** from approximately 16.1% to approximately 9.2%[45](index=45&type=chunk) - The decrease was mainly attributable to the **decrease in gross profit** during the period[45](index=45&type=chunk) [Significant Acquisitions and Disposals](index=16&type=section&id=Significant%20Acquisitions%20and%20Disposals) The Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period - There were **no significant acquisitions or disposals** of subsidiaries, associates, or joint ventures during the period[46](index=46&type=chunk) [Capital Commitments](index=16&type=section&id=Capital%20Commitments) The Group's capital commitments for property, plant, and equipment decreased to approximately HK$5.8 million, to be funded by internal resources and share offer proceeds - As of June 30, 2025, total capital commitments amounted to approximately **HK$5.8 million** (December 31, 2024: approximately HK$6.5 million)[47](index=47&type=chunk) - Approximately **HK$0.7 million** will be settled by the net proceeds from the share offer, with the balance settled by the Group's internal resources[47](index=47&type=chunk) [Contingent Liabilities](index=17&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group did **not have any significant contingent liabilities**[48](index=48&type=chunk) [Foreign Exchange Risk](index=17&type=section&id=Foreign%20Exchange%20Risk) The Group is exposed to foreign exchange risk from USD and RMB transactions but did not engage in currency hedging as the risk was considered minimal - The Group conducts certain transactions denominated in **USD and RMB**, thus exposing it to exchange rate fluctuation risks[49](index=49&type=chunk) - As the exchange rate fluctuation risk was not significant, the Group did **not engage in foreign currency hedging** during the period[49](index=49&type=chunk) [Future Plans for Major Investments and Capital Assets](index=17&type=section&id=Future%20Plans%20for%20Major%20Investments%20and%20Capital%20Assets) The Group plans to acquire a property in Hong Kong for approximately HK$7.1 million to expand its workshop, warehouse, and office space, funded by internal resources - On July 16, 2025, the Group entered into a provisional agreement to acquire a property at **Unit B, 20/F, Wyler Centre, 403 Castle Peak Road, Kwai Chung, New Territories, Hong Kong** for approximately HK$7.1 million[50](index=50&type=chunk) - The Group plans to **expand its existing workshop, warehouse, and ancillary office** into the property[50](index=50&type=chunk) - The acquisition will be financed by internal resources and is expected to be completed on or before **September 16, 2025**[50](index=50&type=chunk) [Gearing Ratio](index=18&type=section&id=Gearing%20Ratio) The Group's gearing ratio decreased to approximately 7.7%, primarily due to a reduction in interest-bearing bank borrowings during the period - As of June 30, 2025, the Group's gearing ratio was approximately **7.7%** (December 31, 2024: approximately 11.3%)[51](index=51&type=chunk) - The decrease was mainly due to the **reduction in the Group's interest-bearing bank borrowings** during the period[51](index=51&type=chunk) [Liquidity and Financial Resources and Capital Structure](index=18&type=section&id=Liquidity%20and%20Financial%20Resources%20and%20Capital%20Structure) The Group maintained a conservative financing policy, with increased cash reserves but a slightly lower current ratio and reduced total interest-bearing bank borrowings - The Group primarily funds its liquidity and capital requirements through **shareholder contributions, bank borrowings, and net cash from operating activities**[52](index=52&type=chunk) Liquidity Metrics | Metric | June 30, 2025 (HKD in thousands / ratio) | December 31, 2024 (HKD in thousands / ratio) | | :--- | :--- | :--- | | Cash and cash equivalents | 79,111 | 75,894 | | Current ratio | 1.7 times | 2.0 times | | Total interest-bearing bank borrowings | 25,576 | 39,975 | - All bank borrowings are at **floating interest rates**, referencing HIBOR and CNH HIBOR[54](index=54&type=chunk) [Principal Risks and Uncertainties](index=20&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group faces multiple risks, including disease outbreaks, geopolitical conflicts, changing consumer preferences, and reliance on a few major customers - Business and operations may be severely affected by **outbreaks of infectious diseases** or other public health events[56](index=56&type=chunk) - Ongoing military conflicts in Russia-Ukraine and the Middle East may impact **global supply chains, logistics, consumer sentiment, and demand**[56](index=56&type=chunk) - The Group **relies on a few major customers**, and any deterioration in these relationships could have a material adverse effect on performance[56](index=56&type=chunk) - Failure to meet customer demands and preferences for product design, R&D, and manufacturing could **adversely affect operating results**[56](index=56&type=chunk) [Material Investments Held](index=21&type=section&id=Material%20Investments%20Held) As of June 30, 2025, the Company held no material investments other than its investments in various subsidiaries - Other than the Company's investments in its various subsidiaries, the Company did **not hold any material investments** as of June 30, 2025[57](index=57&type=chunk) [Employees and Remuneration Policies](index=21&type=section&id=Employees%20and%20Remuneration%20Policies) The Group's full-time employee count slightly decreased, with remuneration based on merit and market conditions, while total staff costs increased - As of June 30, 2025, the Group had a total of **1,065 full-time employees** (December 31, 2024: 1,075)[58](index=58&type=chunk) - The remuneration policy is determined by reference to factors such as **qualifications, experience, performance, merits, responsibilities, and market conditions**[58](index=58&type=chunk) - Total staff costs (excluding directors' remuneration) were approximately **HK$61.0 million** (2024 period: approximately HK$54.4 million)[58](index=58&type=chunk) [Use of Proceeds from Share Offer](index=21&type=section&id=Use%20of%20Proceeds%20from%20Share%20Offer) The Company has utilized approximately HK$89.7 million of the net proceeds from its share offer, with the remaining HK$1.0 million expected to be used by June 2026 - The net proceeds from the share offer were approximately **HK$90.7 million**[59](index=59&type=chunk) - From the listing date to June 30, 2025, the Company utilized approximately **HK$89.7 million** of the net proceeds, with an unutilized balance of approximately HK$1.0 million[60](index=60&type=chunk) - The remaining proceeds allocated for upgrading the IT system are expected to be fully utilized by **June 30, 2026**, due to further delays[60](index=60&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) [Compliance with Corporate Governance Code](index=23&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company confirms its compliance with all applicable principles and code provisions of the Corporate Governance Code during the period - The Company has **complied with all applicable principles and code provisions** of the Corporate Governance Code[61](index=61&type=chunk) [Standard of Dealings in Securities by Directors](index=23&type=section&id=Standard%20of%20Dealings%20in%20Securities%20by%20Directors) All directors have confirmed their full compliance with the required standards set out in the Model Code for Securities Transactions by Directors - Each Director has confirmed their **full compliance with the required standards** set out in the Model Code during the period and up to the date of this announcement[62](index=62&type=chunk) [Dividend Declaration](index=23&type=section&id=Dividend%20Declaration) The Board has declared an interim dividend of 7.0 HK cents per ordinary share for the six months ended June 30, 2025, totaling approximately HK$25.1 million - The Board has resolved to declare an interim dividend of **7.0 HK cents per ordinary share** for the six months ended June 30, 2025[63](index=63&type=chunk) - The total amount is approximately **HK$25.1 million** (2024 period: approximately HK$39.5 million)[63](index=63&type=chunk) [Closure of Register of Members](index=23&type=section&id=Closure%20of%20Register%20of%20Members) The register of members will be closed from September 12 to September 15, 2025, to determine entitlement to the interim dividend - The register of members will be closed from **Friday, September 12, 2025, to Monday, September 15, 2025**, both days inclusive[64](index=64&type=chunk) - To qualify for the interim dividend, all completed transfer forms must be lodged with the Company's Hong Kong branch share registrar no later than **4:30 p.m. on Thursday, September 11, 2025**[64](index=64&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=24&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Listed%20Securities) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period - Neither the Company nor any of its subsidiaries **purchased, sold, or redeemed any of the Company's listed securities** during the period[65](index=65&type=chunk) [Events After the Reporting Period](index=24&type=section&id=Events%20After%20the%20Reporting%20Period) The Group entered into a formal sale and purchase agreement for the acquisition of Unit 20B on July 30, 2025, with completion expected by September 16, 2025 - The Group entered into a **formal sale and purchase agreement** with an independent third party for the acquisition of Unit 20B on July 30, 2025[66](index=66&type=chunk) - The acquisition of Unit 20B is expected to be completed on or before **September 16, 2025**[66](index=66&type=chunk) [Review by Audit Committee](index=24&type=section&id=Review%20by%20Audit%20Committee) The Audit Committee has reviewed the Group's unaudited interim financial information and found it compliant with applicable standards and rules - The Audit Committee comprises **four independent non-executive Directors** and complies with Rule 3.21 of the Listing Rules[67](index=67&type=chunk) - The Audit Committee has concluded that the unaudited interim financial information complies with applicable accounting standards and Listing Rules, and that **adequate disclosures have been made**[67](index=67&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=25&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement is available on the websites of the Stock Exchange and the Company, with the interim report to follow in September 2025 - This interim results announcement is published on the **websites of the Stock Exchange and the Company**[68](index=68&type=chunk) - The interim report for the period will be published on the same websites in **September 2025** in accordance with the Listing Rules[68](index=68&type=chunk) [Acknowledgement](index=25&type=section&id=Acknowledgement) The Board extends its sincere gratitude to the management team, staff, shareholders, and business partners for their support and contributions [Board of Directors](index=25&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors comprises executive, non-executive, and independent non-executive members - The Board of Directors includes **Executive Directors** Mr Chan Wai Ming, Mr Chiu Wai Kwong, Ms Tang Mei Wah, and Dr Yu Kwok Wai; **Non-executive Directors** Dr Chan Kam Kwong and Ms Cheng Yuk Han; and **Independent Non-executive Directors** Mr Choy Chi Leung, Mr Chan Shing Chi, Ms Chan Tak Yi, and Ms Leung Lai Yi[70](index=70&type=chunk)

第 1 頁 共 2 頁 v 1.1.1 EF001 EF001 免責聲明 | 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，概不對因 公告全部或任何部份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。 | | | --- | --- | | 股票發行人現金股息公告 | | | 發行人名稱 | 登輝控股有限公司 | | 股份代號 | 01692 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 截至2025年6月30日止六個月之中期股息及暫停辦理股份過戶登記手續 | | | 公告日期 | 2025年8月28日 | | 公告狀態 | 新公告 | | 股息信息 | | | 股息類型 | 中期（半年期） | | 股息性質 | 普通股息 | | 財政年末 | 2025年12月31日 | | 宣派股息的報告期末 | 2025年6月30日 | | 宣派股息 | 每 股 0.07 HKD | | 股東批准日期 | 不適用 | | 香港過戶登記處相關信息 | | | 派息金額及公司預設派發貨幣 | ...

Group 1 - As of August 18, the stock price of Denghui Holdings (01692.HK) closed at 1.950 HKD, a decrease of 0.51% from the previous trading day, with an intraday low of 1.900 HKD, marking a new low in nearly a year [1] - On that day, the net capital outflow was 17.39 thousand HKD, with no significant inflow or outflow reported [1] - Denghui Holdings is headquartered in Hong Kong and is responsible for overall business operations, sales and marketing, product design, and financial and strategic management, with production facilities located in Huizhou [1] Group 2 - The company has established a strong reputation in the electric heating household appliance manufacturing industry over more than a decade since its founding in 2005 [1] - The company's competitive advantages include long-term relationships with major customers and suppliers, advancement in industry technology, strong design and R&D capabilities, strict quality control, a diversified product portfolio, and an experienced management team [1]

Group 1 - The company, Denghui Holdings (01692.HK), announced that it will hold a board meeting on August 28, 2025, to consider and approve its unaudited interim results for the six months ending June 30, 2025 [1] - The agenda includes the publication of the interim results announcement on the Hong Kong Stock Exchange and the company's website [1] - The board will also consider the distribution of an interim dividend, if any [1]

（股份代號：1692） （於開曼群島註冊成立的有限公司） 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 所產生或因倚賴該等內容而引致的任何損失承擔任何責任。 承董事會命 登輝控股有限公司 主席兼非執行董事 陳鑑光 香港，二零二五年八月十五日 於本公告日期，董事會成員包括執行董事陳偉明先生、趙維光先生、鄧美華女士及俞國 偉博士；非執行董事陳鑑光博士及鄭玉嬋女士；及獨立非執行董事蔡志良先生、陳承志 先生、陳德宜女士及梁麗兒女士。 董事會會議召開日期 登輝控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）董事（「董事」）會（「董事 會」）謹此宣佈，本公司將於二零二五年八月二十八日（星期四）舉行董事會會議，其中議 程包括考慮及批准本集團截至二零二五年六月三十日止六個月的未經審核中期業績（「中 期業績」）以及在香港聯合交易所有限公司及本公司網站刊發中期業績公告，以及考慮派 發中期股息（如有）。 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 登輝控股有限公司 呈交日期: 2025年7月31日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01692 | 說明 | 普通股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 4,000,000,000 | HKD | | 0.01 HKD | | 40,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | | | 本月底結存 | | | 4,000,000,000 | HKD | | 0.01 HKD | | 40,000,000 | 本月底法定/註冊股本總額： HKD 40,000,000 第 1 頁 共 10 頁 ...

Financial Performance - The company's revenue for the fiscal year was approximately HKD 703.6 million, with a gross profit of about HKD 231.7 million, resulting in a gross margin of approximately 32.9%[10] - The net profit attributable to equity holders for the year was around HKD 107.6 million, with a net profit margin of approximately 15.3%[10] - Earnings per share for the year were approximately HKD 0.2997, compared to HKD 0.3404 in 2023[10] - Total revenue for the fiscal year ending December 31, 2024, decreased slightly by approximately HKD 0.8 million or 0.1% to approximately HKD 703.6 million, primarily due to a decline in sales of garment care appliances, offset by an increase in cooking appliance sales[20] - Gross profit for the fiscal year ending December 31, 2024, decreased by approximately HKD 13.7 million or 5.6% to approximately HKD 231.7 million, with the gross profit margin declining by 1.9 percentage points to approximately 32.9% due to increased raw material and direct labor costs[21] - Net profit decreased from approximately HKD 122.2 million to approximately HKD 107.6 million, a decline of about HKD 14.6 million or approximately 11.9%[29] - Other income and net gains increased from approximately HKD 14.5 million for the year ended December 31, 2023, to approximately HKD 18.7 million for the year ended December 31, 2024, an increase of about HKD 4.2 million[22] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.161 per ordinary share, an increase from HKD 0.151 in 2023[11] - The proposed final dividend for the year ending December 31, 2024, is HKD 0.161 per share, up from HKD 0.151 per share in 2023[51] - The company has adopted a dividend policy that balances shareholder interests with prudent capital management, with dividends subject to board approval and compliance with Cayman Islands regulations[141] Operational Strategies and Innovations - The company emphasized its focus on sustainability and high-quality development, integrating environmental practices into operations to meet growing demand for sustainable products[8] - Investments in automation and big data analytics were made to enhance production efficiency and productivity, positioning the company at the forefront of industry technological advancements[8] - The company plans to launch a fourth-generation fully automatic coffee machine with a new brewing system, which has received positive customer feedback, highlighting the company's commitment to product quality and innovation[18] - The company is integrating advanced technologies, including AI and RPA, to enhance operational efficiency and customer engagement, aiming to improve customer satisfaction[19] - The company is committed to product development, focusing on quality, aesthetic design, premium materials, and advanced technology to maintain its competitive edge[18] - The company is leveraging new technologies, including 3D simulation, to visualize and test product designs before production, minimizing errors and ensuring optimal quality[19] Market and Growth Opportunities - The company is actively exploring growth opportunities in regions such as the Middle East, Southeast Asia, and China, in response to recent trade tariff increases affecting its U.S. market strategy[18] - The company aims to diversify its customer base and expand sales channels to increase orders and strengthen its market position[18] - The company expresses a cautious optimism about emerging opportunities in a complex business environment, with signs of market improvement indicating potential for expansion and growth[18] Human Resources and Employee Management - The company expanded its quality design, sales, and marketing teams significantly to attract and retain top talent, enhancing its human resources capabilities[8] - The group had a total of 1,075 full-time employees as of December 31, 2024, an increase from 993 in 2023[45] - The total employee cost for the year was approximately HKD 116.6 million, compared to HKD 120.4 million in 2023[45] Financial Position and Capital Management - Cash and cash equivalents decreased to approximately HKD 75.9 million as of December 31, 2024, from approximately HKD 187.7 million as of December 31, 2023[38] - The capital-to-debt ratio increased to approximately 11.3% as of December 31, 2024, compared to approximately 6.2% as of December 31, 2023, due to an increase in interest-bearing bank borrowings[35] - Total interest-bearing bank borrowings increased to approximately HKD 40.0 million as of December 31, 2024, from approximately HKD 21.4 million as of December 31, 2023[39] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, confirming compliance with all provisions during the reporting period[98] - The board consists of ten members, including four executive directors, two non-executive directors, and four independent non-executive directors, ensuring a balanced governance structure[101] - The company has established a robust framework for financial oversight and strategic decision-making through its audit and remuneration committees[76][79] - The independent non-executive directors contribute diverse business and financial expertise, enhancing the board's effectiveness and independence[105] - The company has established written guidelines for employees regarding securities trading to prevent insider trading violations[100] Risk Management - The company has conducted an annual review of its risk management and internal control systems, which the board believes are effective and adequate[151] - The risk management policy aims to ensure sustainable and stable business growth while promoting proactive reporting and assessment of business-related risks[152] - The company has established a risk management system to identify, assess, quantify, mitigate, and manage all significant current and future risks[155] Community Engagement and Social Responsibility - The group made charitable donations of approximately HKD 1.1 million during the year[185] - The company has a strong commitment to corporate social responsibility, with board members actively participating in various charitable activities[78] Share Option Scheme - The company has adopted a share option scheme to reward and retain qualified participants, with no options granted, exercised, canceled, or lapsed since its adoption on May 25, 2023[189][190] - The maximum number of share options that can be granted under the share option plan is capped at 10.0% of the total issued shares as of the adoption date, equating to 35,900,000 shares[192] - The share option plan will remain effective for a period of ten years from the adoption date, expiring on May 24, 2033[200]

Financial Performance - Revenue for the year ended December 31, 2024, decreased slightly by approximately HKD 0.8 million or about 0.1% to approximately HKD 703.6 million from HKD 704.4 million for the year ended December 31, 2023[4] - Gross profit decreased by approximately HKD 13.7 million or about 5.6% to approximately HKD 231.7 million, resulting in a gross margin decline of approximately 1.9 percentage points to about 32.9%[4] - Profit attributable to equity holders decreased by approximately HKD 14.6 million or about 11.9% to approximately HKD 107.6 million, with net profit margin decreasing by approximately 2.0 percentage points to 15.3%[4] - Basic earnings per share for the year ended December 31, 2024, were approximately HKD 0.2997, down from HKD 0.3404 for the year ended December 31, 2023[4] - Total comprehensive income for the year ended December 31, 2024, was HKD 104.1 million, compared to HKD 117.9 million for the previous year[8] - Pre-tax profit for 2024 was HKD 107,610,000, down from HKD 122,206,000 in 2023, reflecting a decrease of 11.9%[30] - The total tax expense for the year was HKD 22,807,000, compared to HKD 24,554,000 in 2023, indicating a reduction of 7.1%[28] - Net profit decreased from approximately HKD 122.2 million for the year ended December 31, 2023, to approximately HKD 107.6 million for the year ending December 31, 2024, a decrease of about 11.9%[52] Assets and Liabilities - Non-current assets increased to HKD 218.3 million from HKD 153.3 million, primarily due to increases in property, plant, and equipment[10] - Current assets rose to HKD 336.2 million from HKD 324.0 million, with inventory increasing to HKD 100.1 million from HKD 60.1 million[10] - Current liabilities increased to HKD 165.6 million from HKD 129.2 million, with trade payables rising to HKD 58.5 million from HKD 42.9 million[10] - Net assets increased to HKD 355.0 million from HKD 344.7 million, reflecting a growth in reserves[10] - Non-current assets increased to HKD 214,930,000 in 2024 from HKD 150,960,000 in 2023, representing a growth of 42.4%[21] - Trade receivables increased significantly to HKD 135,704,000 in 2024 from HKD 67,471,000 in 2023, with a net book value of HKD 132,069,000 after impairment[31] - The aging analysis of trade receivables shows that receivables over 90 days increased to HKD 58,475,000 in 2024 from HKD 15,012,000 in 2023, indicating a potential increase in credit risk[32] - Total trade payables rose to HKD 58,454,000 in 2024 from HKD 42,855,000 in 2023, with payables over 90 days decreasing to HKD 2,167,000 from HKD 4,750,000[33] Dividends - The board proposed a final dividend of HKD 0.161 per ordinary share, subject to approval at the 2025 annual general meeting[4] - The proposed final dividend for 2024 is HKD 57,799,000, an increase from HKD 54,209,000 in 2023, marking a rise of 6.4%[29] - The company plans to pay a final dividend of HKD 0.161 per share for the year ending December 31, 2024, compared to HKD 0.151 per share in 2023[74] - The final dividend is expected to be paid on or before June 11, 2025, pending approval at the annual general meeting[80] Operational Efficiency and Strategic Initiatives - The company is integrating advanced technologies, including AI and automation, to improve operational efficiency and customer engagement, with a focus on real-time data collection and analysis[40] - Strategic initiatives are in place to enhance product quality and operational efficiency, including employee training programs and the adoption of Industry 4.0 principles[36] - Sales and distribution expenses decreased from approximately HKD 17.2 million for the year ended December 31, 2023, to approximately HKD 15.6 million for the year ending December 31, 2024, a reduction of about HKD 1.6 million[46] - General and administrative expenses increased from approximately HKD 94.0 million for the year ended December 31, 2023, to approximately HKD 98.8 million for the year ending December 31, 2024, an increase of about HKD 4.8 million[47] - Net other expenses increased by approximately HKD 3.9 million to approximately HKD 3.3 million for the year ending December 31, 2024, primarily due to an increase in trade receivables impairment[48] - Financing costs decreased from approximately HKD 2.6 million for the year ended December 31, 2023, to approximately HKD 2.3 million for the year ending December 31, 2024, a reduction of about HKD 0.3 million[50] Future Outlook - The company is optimistic about new opportunities in 2025 despite a complex business environment, focusing on market diversification and exploring growth opportunities in regions like the Middle East and Southeast Asia[37] - A key highlight for 2025 is the launch of the fourth-generation fully automatic coffee machine featuring a new brewing system, aimed at enhancing customer satisfaction and maintaining market leadership[39] Employee and Operational Metrics - The group has a total of 1,075 full-time employees as of December 31, 2024, an increase from 993 in 2023[69] - Total employee costs for the year are approximately HKD 116.6 million, down from HKD 120.4 million in 2023[69] Miscellaneous - The company faces risks from public health events, geopolitical conflicts, and reliance on major customers, which could adversely affect sales and performance[67] - The annual general meeting is scheduled for May 26, 2025[78] - Shareholder registration will be suspended from May 21 to May 26, 2025, to determine eligible shareholders for voting[79] - No significant matters requiring disclosure have occurred since December 31, 2024[81] - The company and its subsidiaries did not purchase, sell, or redeem any listed securities during the year[82] - The audit committee has been established to oversee financial reporting and internal controls since October 3, 2019[84] - The annual results announcement and annual report will be published on the company's website in April 2025[87] - The board expresses gratitude to the management team and all employees for their contributions over the past year[88] - The board consists of various executive and non-executive directors as of the announcement date[90]

Revenue Performance - Total revenue decreased by approximately HKD 94.6 million or 23.9% to approximately HKD 301.9 million for the six months ended June 30, 2024, compared to approximately HKD 396.5 million for the same period in 2023[57]. - The decline in revenue was primarily due to clients implementing inventory reduction measures, leading to decreased sales of cooking appliances[54]. - Revenue for the six months ended June 30, 2024, was HKD 301,933 thousand, a decrease of 24% compared to HKD 396,551 thousand for the same period in 2023[123]. - Revenue from electric heating appliances sales was HKD 301,847,000, down from HKD 393,749,000 in the previous year, indicating a decline of approximately 23.3%[152]. - Major customer A contributed HKD 84,257,000 to total revenue, down from HKD 164,359,000 in the previous year, representing a decline of 48.7%[151]. Profitability - The group's gross profit decreased by approximately HKD 47.8 million or about 32.2% to approximately HKD 100.7 million for the six months ending June 30, 2024, compared to approximately HKD 148.5 million for the same period in 2023[58]. - The gross profit margin fell by approximately 4.1 percentage points from about 37.4% to approximately 33.3% during the same period, primarily due to a decrease in sales of cooking appliances[58]. - The group's net profit decreased by approximately HKD 38.8 million or about 44.4% to approximately HKD 48.5 million for the six months ending June 30, 2024, compared to approximately HKD 87.3 million for the same period in 2023[65]. - Profit before tax decreased to HKD 57,025 thousand, representing a decline of 46% from HKD 105,805 thousand in the previous year[123]. - Basic and diluted earnings per share were 13.52 HKD cents, down from 24.33 HKD cents in the same period last year[123]. Expenses and Costs - Selling and distribution expenses decreased by approximately HKD 0.8 million to approximately HKD 7.2 million, with advertising and promotion expenses dropping from approximately HKD 1.9 million to approximately HKD 1.0 million[60]. - The cost of goods sold for the six months ended June 30, 2024, was HKD 201,268,000, down from HKD 248,067,000 in 2023, a decrease of 19%[154]. - Total employee costs for the period were approximately HKD 54.4 million, compared to HKD 56.2 million for the six months ended June 30, 2023[80]. Cash Flow and Financial Position - The group's cash and cash equivalents were approximately HKD 157.0 million as of June 30, 2024, down from approximately HKD 187.7 million as of December 31, 2023[74]. - Cash generated from operating activities was HKD 12,472,000 for the six months ended June 30, 2024, down from HKD 144,024,000 in the same period last year[135]. - The net cash outflow from investing activities was HKD 33,485,000 for the six months ended June 30, 2024, compared to HKD 25,106,000 in the previous year[135]. - The company reported a decrease in cash and bank balances to HKD 89,360,000 as of June 30, 2024, from HKD 60,537,000 in the previous year[138]. Strategic Initiatives - The company remains cautiously optimistic about the second half of 2024, driven by replenishment orders from clients who have largely completed their inventory reduction[56]. - New product models, which have received positive feedback from existing and new clients, are expected to be delivered later this year, showcasing significant improvements in design and functionality[56]. - The company is actively seeking opportunities outside Europe to diversify its customer base and expand its global presence[56]. - The company plans to continue its strategic initiatives, including customer diversification, ongoing product innovation, and strict financial discipline[54]. Employee and Management - As of June 30, 2024, the group employed 1,089 full-time employees, an increase from 993 employees as of December 31, 2023[80]. - Total compensation paid to key management personnel increased to HKD 9,366,000 for the six months ended June 30, 2024, compared to HKD 9,211,000 in 2023, reflecting a growth of approximately 1.68%[170]. Corporate Governance and Compliance - The company has adopted corporate governance codes to maintain investor confidence and protect stakeholder interests[84]. - The company recognizes the importance of compliance with regulatory requirements and the risks associated with non-compliance[89]. Dividends and Shareholder Information - The interim dividend declared is HKD 0.11 per share, totaling approximately HKD 39.5 million, compared to HKD 53.9 million for the same period last year[90]. - The company proposed an interim dividend of HKD 0.11 per share for 2024, compared to HKD 0.15 per share in 2023, reflecting a decrease of 26.7%[159]. Risks and Challenges - The group faced significant risks including potential impacts from public health events and geopolitical conflicts, which could adversely affect sales and performance[77].

Financial Performance - Revenue decreased by approximately HKD 94.6 million or about 23.9% to approximately HKD 301.9 million for the six months ended June 30, 2024, compared to HKD 396.5 million for the same period in 2023[1] - Gross profit fell by approximately HKD 47.8 million or about 32.2% to approximately HKD 100.7 million for the six months ended June 30, 2024, down from HKD 148.5 million[1] - The gross profit margin decreased by approximately 4.1 percentage points to 33.3% for the six months ended June 30, 2024, from 37.4% for the same period in 2023[1] - Profit attributable to equity holders of the company decreased by approximately HKD 38.8 million or about 44.4% to approximately HKD 48.5 million for the six months ended June 30, 2024, compared to HKD 87.3 million for the same period in 2023[1] - Basic earnings per share were approximately HKD 0.1352 for the six months ended June 30, 2024, down from HKD 0.2433 for the same period in 2023[2] - Total revenue for the six months ended June 30, 2024, was HKD 301,933,000, a decrease of 24% compared to HKD 396,551,000 for the same period in 2023[16] - Revenue from Europe was HKD 270,240,000, down 20.5% from HKD 340,155,000 in the previous year[13] - Revenue from the United States decreased to HKD 3,347,000 from HKD 12,063,000, representing a decline of 72.2%[13] - The cost of goods sold for the six months ended June 30, 2024, was HKD 201,268,000, down from HKD 248,067,000 in 2023[17] - Net profit decreased by approximately HKD 38.8 million or approximately 44.4% from approximately HKD 87.3 million for the six months ended June 30, 2023, to approximately HKD 48.5 million for the six months ended June 30, 2024[35] Assets and Liabilities - The total assets less current liabilities amounted to HKD 372.2 million as of June 30, 2024, compared to HKD 348.2 million as of December 31, 2023[4] - Non-current assets increased to HKD 212.3 million as of June 30, 2024, from HKD 153.3 million as of December 31, 2023[4] - Current assets rose to HKD 435.6 million as of June 30, 2024, compared to HKD 324.0 million as of December 31, 2023[4] - The net asset value decreased to HKD 337.6 million as of June 30, 2024, from HKD 344.7 million as of December 31, 2023[5] - Trade receivables increased to HKD 135.8 million as of June 30, 2024, compared to HKD 67.5 million as of December 31, 2023[23] - The capital debt ratio as of June 30, 2024, was approximately 5.9%, a decrease from approximately 6.2% as of December 31, 2023, primarily due to a reduction in interest-bearing bank borrowings[40] - Cash and cash equivalents as of June 30, 2024, were approximately HKD 157.0 million, down from approximately HKD 187.7 million as of December 31, 2023[41] - Total interest-bearing bank borrowings as of June 30, 2024, were approximately HKD 19.8 million, down from approximately HKD 21.4 million as of December 31, 2023[42] Dividends and Share Issuance - The company declared an interim dividend of HKD 0.11 per share, totaling approximately HKD 39.5 million for the six months ended June 30, 2024[1] - The interim dividend for 2024 is proposed at HKD 11.0 cents per share, down from HKD 15.0 cents per share in 2023[21] - The company raised approximately HKD 90.7 million from the issuance of 100,000,000 new ordinary shares at HKD 1.30 per share on the listing date[48] - As of June 30, 2024, the company had utilized approximately HKD 78.6 million of the net proceeds from the share issuance, leaving a balance of approximately HKD 12.1 million[49] Expenses and Taxation - The total tax expense for the six months ended June 30, 2024, was HKD 8.5 million, compared to HKD 18.5 million for the same period in 2023[20] - Sales and distribution expenses decreased from approximately HKD 8.0 million for the six months ended June 30, 2023, to approximately HKD 7.2 million for the six months ended June 30, 2024, primarily due to a reduction in advertising and promotion expenses from approximately HKD 1.9 million to approximately HKD 1.0 million[31] - General and administrative expenses increased from approximately HKD 43.5 million for the six months ended June 30, 2023, to approximately HKD 44.8 million for the six months ended June 30, 2024, mainly due to employee benefits expenses rising from approximately HKD 28.2 million to approximately HKD 29.4 million[32] - Financing costs decreased from approximately HKD 1.4 million for the six months ended June 30, 2023, to approximately HKD 1.0 million for the six months ended June 30, 2024, due to a reduction in interest expenses on lease liabilities and bank borrowings[33] - Profit before tax decreased from approximately HKD 105.8 million for the six months ended June 30, 2023, to approximately HKD 57.0 million for the six months ended June 30, 2024, resulting in a decrease in income tax expenses from approximately HKD 18.5 million to approximately HKD 8.5 million[34] Future Outlook and Strategy - The company plans to deliver the first batch of new electric household appliances later this year, which have received positive feedback from existing and new customers[27] - The company maintains a cautious optimism for the second half of 2024, driven by replenishment orders from customers who have completed inventory reduction measures[27] - The company is focusing on diversifying its customer base and expanding its global presence beyond Europe[27] - The company expects to complete its existing automation projects in China by 2025, which will enhance product quality and reduce labor costs[27] Governance and Compliance - The group has no supplier financing arrangements, thus the recent accounting standards revisions had no impact on the interim financial statements[10] - The effective tax rate for the group remains at 16.5% for the period, consistent with the previous year[19] - Major customers contributing over 10% of revenue included Customer A with HKD 84,257,000 and Customer B with HKD 42,986,000[15] - The company has adopted corporate governance codes to enhance investor confidence and protect shareholder interests[50] - The Audit Committee was established on October 3, 2019, consisting of four independent non-executive directors, ensuring compliance with listing rules[55] - The interim financial results disclosed are unaudited but have been reviewed by the Audit Committee, which believes they comply with applicable accounting standards and listing rules[56] - The interim results announcement and report will be published on the Hong Kong Stock Exchange and the company's website in September 2024[57] - The Board expresses gratitude to the management team and all employees for their significant contributions to the group[58] Risks and Challenges - The company faces risks from public health events, geopolitical conflicts, and reliance on a few major customers, which could adversely affect sales and performance[45] - The company has not made any significant investments other than in its subsidiaries as of June 30, 2024[46]