Shareholding Structure - Modern Expression Limited holds 213,640,000 shares, representing 59.51% of the company's equity[22] - Capital Fortress Limited owns 29,000,000 shares, accounting for 8.08% of the company's equity[22] - The total number of shares held by major shareholders includes 6,806,000 shares held by the spouse of Dr. Chen, representing 1.90%[25] - Dr. Chen and Ms. Zheng are considered to have interests in all shares held by Modern Expression, which they jointly own[18] - The company has a total of 5,000,000 shares held by several beneficial owners, each representing 1.39%[25] - The company’s equity structure shows significant concentration among a few major shareholders[22] - The report indicates no changes in the ownership structure of the company's securities during the reporting period[11] Governance and Compliance - The company is subject to the Securities and Futures Ordinance regarding the disclosure of interests in shares[3] - The company’s governance and compliance with regulations are highlighted in the report[20] - The group has adopted corporate governance codes in compliance with the listing rules, ensuring adherence to all relevant regulations[130] - The company has not entered into any significant related party transactions during the reporting period, ensuring compliance with listing rules[155] Financial Performance - The group's gross profit increased from approximately HKD 121.5 million for the six months ended June 30, 2022, to approximately HKD 148.5 million for the six months ended June 30, 2023, representing an increase of about HKD 27.0 million or approximately 22.2%[85] - The gross profit margin improved from approximately 29.1% for the six months ended June 30, 2022, to approximately 37.4% for the six months ended June 30, 2023, an increase of 8.3 percentage points[85] - Other income and net gains rose from approximately HKD 3.4 million for the six months ended June 30, 2022, to approximately HKD 9.1 million for the six months ended June 30, 2023[85] - The group recorded bank interest income of approximately HKD 2.5 million for the six months ended June 30, 2023, compared to approximately HKD 0.1 million for the same period in 2022[85] - Total revenue decreased by approximately HKD 20.5 million or about 4.9% to approximately HKD 396.6 million for the six months ended June 30, 2023, compared to HKD 417.1 million for the same period in 2022[103] - Net profit increased by approximately HKD 26.0 million or about 42.6% to approximately HKD 87.3 million for the six months ended June 30, 2023, compared to HKD 61.3 million for the same period in 2022[109] - The group’s tax expense increased by approximately HKD 5.3 million to approximately HKD 18.5 million for the six months ended June 30, 2023, with an effective tax rate of approximately 17.5%[107] - General and administrative expenses increased by approximately HKD 2.8 million to approximately HKD 43.5 million for the six months ended June 30, 2023[106] Market Outlook and Strategy - The company remains cautiously optimistic about the market outlook for the second half of 2023, anticipating a potential easing of inflation and market conditions[82] - The company aims to expand its product footprint into underdeveloped regions such as Latin America, the Middle East, and Southeast Asia, where there is significant consumer demand[65] - The company is prepared to leverage market consolidation opportunities as underperforming competitors may exit the market due to economic instability[82] - The group continues to invest in production innovation for electric household appliances to deliver new value to consumers[100] - The group aims to enhance production facilities and increase capacity as part of its strategic initiatives[122] Capital and Cash Flow - The group’s capital expenditure commitments for property, plant, and equipment amounted to approximately HKD 3.4 million as of June 30, 2023[109] - The group’s cash and cash equivalents increased to approximately HKD 203.9 million as of June 30, 2023, compared to approximately HKD 148.9 million as of December 31, 2022[111] - The group’s current ratio improved to approximately 2.2 times as of June 30, 2023, compared to approximately 1.9 times as of December 31, 2022[111] - The group’s capital debt ratio decreased to approximately 9.7% as of June 30, 2023, from approximately 10.2% as of December 31, 2022[111] - As of June 30, 2023, the group's interest-bearing bank borrowings totaled approximately HKD 35.0 million, a slight decrease from HKD 35.8 million as of December 31, 2022[123] - The company reported a cash flow from investing activities of HKD 113,000, compared to a cash outflow of HKD 34,821,000 in the previous period[191] Employee and Dividend Information - The total employee cost for the six months ended June 30, 2023, was approximately HKD 56.2 million, compared to HKD 53.8 million for the same period in 2022[125] - The group has a total of 1,079 full-time employees as of June 30, 2023, an increase from 1,044 employees as of December 31, 2022[125] - The interim dividend declared for the six months ended June 30, 2023, is HKD 0.15 per share, totaling approximately HKD 53.9 million, an increase from HKD 38.8 million for the same period in 2022[134] - The company plans to distribute an interim dividend to eligible shareholders on September 22, 2023, following the suspension of shareholder registration from September 11 to September 13, 2023[144] Product Development - The group plans to launch new coffee machines and steam irons in the second half of 2023, with additional products featuring enhanced functions expected in 2024[100] - The company continues to focus on the manufacturing and sales of electric heating appliances, with no independent operating segments reported[187] Accounting and Reporting Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards effective January 1, 2023, with no impact on the interim financial information[200] - The company anticipates that the new accounting policy changes will affect the disclosures in the annual consolidated financial statements but not the interim financial data[200] - The company has not been affected by the OECD's Pillar Two model rules, as it does not fall within the scope of these regulations[185]

Financial Performance - The company recognized a basic earnings per share of HKD 243.5 for the six months ended June 30, 2023, compared to HKD 170.5 for the same period in 2022, reflecting a 42.8% increase[6]. - The pre-tax profit for the period was HKD 87,338,000, compared to HKD 61,255,000 for the same period last year, indicating a growth of 42.6%[6]. - Profit attributable to equity holders for the six months ended June 30, 2023, was approximately HKD 87.3 million, an increase of about HKD 26.0 million or approximately 42.6% compared to HKD 61.3 million for the same period in 2022[20]. - The group reported a net profit of HKD 87,338,000 for the six months ended June 30, 2023, compared to HKD 61,255,000 for the same period last year, representing an increase of approximately 42.6%[38]. - Total comprehensive income for the period was HKD 79,395,000, up from HKD 53,592,000, indicating a growth of about 48.3% year-over-year[39]. Revenue and Sales - Revenue for the six months ended June 30, 2023, was approximately HKD 396.6 million, a decrease of about HKD 20.5 million or approximately 4.9% compared to HKD 417.1 million for the same period in 2022[20]. - Total revenue for the six months ended June 30, 2023, was HKD 159,667,000, compared to HKD 169,258,000 for the same period in 2022, representing a decrease of approximately 5.1%[54]. - Revenue from external customers for the six months ended June 30, 2023, was HKD 396,551,000, down from HKD 417,093,000 in the same period of 2022, indicating a decline of about 4.9%[65]. - The company’s revenue from electric household appliances sales was HKD 393,749,000 for the six months ended June 30, 2023, compared to HKD 414,326,000 in the same period of 2022, showing a decrease of about 4.9%[65]. - Revenue from Europe for the first half of 2023 was HKD 340,155,000, down from HKD 375,591,000 in the same period last year, a decrease of about 9.4%[53]. - Revenue from Asia surged to HKD 44,073,000, significantly up from HKD 20,260,000, marking an increase of approximately 117.5%[53]. - Revenue from the United States decreased to HKD 12,063,000 from HKD 16,426,000, a decline of about 26.3%[53]. Dividends - The proposed interim dividend for 2023 is HKD 15.0 per share, up from HKD 10.8 per share in 2022, representing a 38.9% increase[5]. - The company declared an interim dividend of HKD 15.0 per share, totaling approximately HKD 53.9 million[20]. - The interim dividend declared for the six months ended June 30, 2023, is HKD 0.15 per share, totaling approximately HKD 53.9 million, compared to HKD 38.8 million for the same period in 2022[112]. Expenses and Costs - Total tax expenses for the period reached HKD 18,467,000, an increase from HKD 13,215,000 in the previous year, reflecting a 39.5% rise[12]. - The cost of goods sold for the six months ended June 30, 2023, was HKD 248,067,000, down from HKD 295,578,000 in the same period last year, showing a decrease of 16%[14]. - General and administrative expenses increased from approximately HKD 40.7 million for the six months ended June 30, 2022, to approximately HKD 43.5 million for the six months ended June 30, 2023, an increase of about HKD 2.8 million[87]. - The depreciation expense for property, plant, and equipment was HKD 7,219,000 for the current period, compared to HKD 5,984,000 for the same period last year, marking a 20.7% increase[14]. Assets and Liabilities - The total assets as of June 30, 2023, were approximately HKD 370.46 million, compared to HKD 370.94 million as of December 31, 2022[27]. - Current assets totaled approximately HKD 387.92 million as of June 30, 2023, down from HKD 410.74 million as of December 31, 2022[27]. - Current liabilities decreased to approximately HKD 178.81 million as of June 30, 2023, from HKD 210.91 million as of December 31, 2022[27]. - Non-current liabilities totaled approximately HKD 10.43 million as of June 30, 2023, compared to HKD 21.02 million as of December 31, 2022[29]. - The group's net assets increased to HKD 360,034,000 as of June 30, 2023, compared to HKD 349,926,000 at the end of 2022, reflecting a rise of approximately 2.5%[42]. Employee and Operational Insights - As of June 30, 2023, the group had 1,079 full-time employees, an increase from 1,044 employees as of December 31, 2022[102]. - The group's total employee costs (excluding directors' remuneration) were approximately HKD 56.2 million for the six months ended June 30, 2023[102]. - The group has implemented new automation systems and Industry 4.0 practices to enhance production quality and operational efficiency[80]. Future Outlook and Strategy - The group aims to maintain strict control over overdue receivables to minimize credit risk, with management regularly reviewing outstanding balances[7]. - The company plans to launch new models of coffee machines and steam irons in the second half of 2023, with additional upgraded products expected in 2024, aiming to meet rising consumer demand[70]. - The group aims to expand its product footprint into underdeveloped regions such as Latin America, the Middle East, and Southeast Asia, where there is significant consumer demand for its products[75]. - The group maintains a cautiously optimistic outlook for the second half of 2023, anticipating potential market consolidation and improved competitive positioning[83]. - The company is focusing on product development to sustain its core advantages and is preparing for increased consumer spending in 2024[70]. Financial Management - The group is committed to maintaining strict capital management to ensure strong cash flow and effective capital utilization amid global challenges[85]. - The group's financing costs decreased from approximately HKD 1.7 million for the six months ended June 30, 2022, to approximately HKD 1.4 million for the six months ended June 30, 2023, mainly due to a reduction in lease liabilities interest expenses by approximately HKD 0.4 million[88]. - The capital commitments for the purchase of properties, plants, and equipment amounted to approximately HKD 3.4 million as of June 30, 2023, with approximately HKD 2.5 million to be funded through the net proceeds from a share issuance[91]. - The group's total interest-bearing bank borrowings amounted to approximately HKD 35.0 million as of June 30, 2023, compared to approximately HKD 35.8 million as of December 31, 2022[99]. - The group's capital-to-debt ratio was approximately 9.7% as of June 30, 2023, down from approximately 10.2% as of December 31, 2022, primarily due to an increase in total equity[94].

Financial Performance - The company's revenue for the year was approximately HKD 823.7 million, an increase of about 7.9% compared to the previous year[14] - Gross profit for the year was approximately HKD 262.5 million, with a gross margin rising to about 31.9%[14] - Profit attributable to equity holders for the year was approximately HKD 134.3 million, with a net profit margin increasing to about 16.3%[14] - Earnings per share for the year were approximately HKD 0.3741, up from HKD 0.2967 in the previous year[14] - Total revenue increased by approximately HKD 60.6 million or about 7.9% to approximately HKD 823.7 million for the year ended December 31, 2022, primarily due to increased sales of cooking appliances[30] - Gross profit margin improved by 2.9 percentage points to approximately 31.9%, with gross profit rising by about HKD 41.5 million or approximately 18.8% to approximately HKD 262.5 million, driven by increased sales of cooking appliances[31] - Net profit increased by approximately HKD 27.8 million or about 26.1% to approximately HKD 134.3 million, with net profit margin rising by about 2.3 percentage points to approximately 16.3%[38] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.193 per share, compared to HKD 0.160 per share in the previous year[15] - The proposed final dividend for the year ended December 31, 2022, is HKD 0.193 per share, up from HKD 0.160 per share in 2021, subject to shareholder approval[61] Market Expansion and Strategy - The company aims to expand its customer base in 2023, particularly in South America, Southeast Asia, and China, leveraging the reopening of borders[17] - The company plans to invest further in capacity and efficiency improvements, as well as product quality and stability, while maintaining a conservative approach to capital management[29] - The company maintains a cautious outlook due to high inflation rates in Western markets, but is optimistic about opportunities in new markets such as South America, Southeast Asia, and China[25] Research and Development - The R&D team is focused on launching new products with unique features to improve pricing and profitability[7] - The company plans to increase R&D spending to 8% of total revenue in 2023 to accelerate new product development[139] - New product launches are anticipated to contribute an additional C million in revenue, with a focus on innovative technology in the home appliance sector[112] Financial Management and Capital Structure - The company has reduced bank borrowings to maintain a strong cash flow and ensure robust capital management[18] - The company's capital debt ratio was approximately 10.2% as of December 31, 2022, down from 24.1% in 2021, primarily due to a reduction in interest-bearing bank borrowings[49] - The total interest-bearing bank borrowings were approximately HKD 35.8 million as of December 31, 2022, down from HKD 80.1 million in 2021[49] - The total cash and cash equivalents were approximately HKD 148.9 million as of December 31, 2022, compared to HKD 144.9 million in 2021[49] Employee and Governance - The total employee cost for the year was approximately HKD 116.1 million, an increase from HKD 94.1 million in 2021, with a total of 1,044 full-time employees as of December 31, 2022[54] - The company emphasizes compliance with fair employment practices and has implemented anti-discrimination policies to ensure equal opportunities for all employees[84] - The board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors[167] - The company has adopted the corporate governance code as its own governance guidelines, ensuring compliance with all relevant regulations[159] Sustainability and Corporate Responsibility - The management team emphasized a commitment to sustainability, aiming for a reduction in carbon emissions by I% over the next five years[112] - The company will continue to focus on sustainable development, planning to launch multiple eco-friendly products in 2023[139] Acquisitions and Investments - No significant acquisitions or disposals of subsidiaries or associates occurred during the year[39] - Recent acquisitions are expected to enhance the company's product offerings and operational efficiency, with an estimated impact of E million on revenue[112] - 登輝控股在2022年完成了對一家小型電器公司的收購，增強了其市場競爭力[139] Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of A% and an expected EBITDA margin of B%[112] - The company expects to fully utilize the net proceeds allocated for upgrading production facilities, enhancing product design and development, and expanding the customer base by December 31, 2023[99]

Financial Performance - For the fiscal year ending December 31, 2022, the company reported a profit of 134.3 million HKD, an increase from 106.5 million HKD in the previous year, representing a growth of approximately 26.1%[22] - The company’s total comprehensive income for the year was reported at 113.9 million HKD, compared to 110.1 million HKD in the previous year[22] - The company's revenue for the fiscal year ending December 31, 2022, was approximately HKD 823.7 million, an increase of about HKD 60.6 million or approximately 7.9% compared to HKD 763.1 million for the fiscal year ending December 31, 2021[36] - Gross profit for the fiscal year ending December 31, 2022, was approximately HKD 262.5 million, an increase of about HKD 41.5 million or approximately 18.8% from HKD 221.0 million in the previous year[36] - Net profit attributable to equity holders for the fiscal year ending December 31, 2022, was approximately HKD 134.3 million, an increase of about HKD 27.8 million or approximately 26.1% from HKD 106.5 million in the previous year[36] - Basic earnings per share for the fiscal year ending December 31, 2022, was approximately HKD 0.3741, compared to HKD 0.2967 for the fiscal year ending December 31, 2021[36] Expenses and Costs - The company's general and administrative expenses increased from approximately 84.5 million HKD for the year ending December 31, 2021, to about 91.8 million HKD for the year ending December 31, 2022, an increase of approximately 7.3 million HKD[3] - Employee benefits expenses rose from approximately 40.3 million HKD to about 47.4 million HKD, reflecting an increase of approximately 7.1 million HKD due to a rise in total employee count[3] - The cost of goods sold increased to HKD 561,198,000 in 2022 from HKD 542,097,000 in 2021, a rise of 3.5%[51] - Total tax expense for the year was HKD 26,720,000 in 2022, up from HKD 19,360,000 in 2021, an increase of 38.5%[54] Revenue Sources - Revenue from external customers in Hong Kong for the fiscal year 2022 was HKD 84.9 million, a significant increase from HKD 13.2 million in 2021[33] - Revenue from external customers in mainland China for the fiscal year 2022 was HKD 84.3 million, a decrease from HKD 92.7 million in 2021[33] - Total revenue from external customers amounted to HKD 169.3 million in 2022, compared to HKD 105.8 million in 2021[33] - Revenue from Europe for the year 2022 was HKD 743.5 million, up from HKD 676.5 million in 2021, representing an increase of approximately 9.9%[77] - Revenue from Asia for the year 2022 was HKD 54.0 million, an increase of approximately 31.4% from HKD 41.1 million in 2021[77] - Revenue from the United States decreased to HKD 20.1 million in 2022 from HKD 43.3 million in 2021, a decline of approximately 53.6%[77] Dividends - The company plans to propose a final dividend of 19.3 HKD cents per share for the fiscal year ending December 31, 2022, compared to 16.0 HKD cents per share in the previous year, pending approval at the upcoming annual general meeting[17] - The proposed dividend for 2022 is HKD 19.3 per share, compared to HKD 16.0 per share in 2021, an increase of 20.6%[55] - The anticipated payment of the final dividend is subject to approval at the 2023 Annual General Meeting, with expected payment on or before June 14, 2023[114] Assets and Liabilities - Total non-current assets increased to HKD 171,106,000 in 2022 from HKD 106,961,000 in 2021, representing a growth of 60.0%[40] - Current assets decreased to HKD 199,837,000 in 2022 from HKD 253,231,000 in 2021, a decline of 21.0%[40] - Total liabilities decreased to HKD 231,924,000 in 2022 from HKD 276,291,000 in 2021, a reduction of 16.0%[40] - As of December 31, 2022, the group had no significant or contingent liabilities, consistent with the previous year[101] Market and Operational Outlook - The ongoing military conflict in Ukraine may negatively impact the company's sales and performance due to potential disruptions in the European and global supply chains[5] - The group maintained a cautious yet optimistic outlook due to the reopening of borders in China and a rebound in market sentiment, indicating potential growth opportunities in new markets such as South America and Southeast Asia[65] - The company expects a clearer business environment in 2023, leveraging its core competitive strengths to explore new market opportunities[94] - The group has been actively engaging with clients to explore new projects and enhance market share in a rapidly changing consumer environment[65] Risk Management - The company maintains a close monitoring of foreign exchange risks, as it conducts transactions primarily in USD and RMB, without any hedging policies in place[4] - The group faces risks related to consumer preferences and macroeconomic factors that could adversely affect sales[104] - The group may experience delays in the use of net proceeds due to the need for additional time for new product development and market expansion[111] Capital Expenditures and Investments - The group has committed to capital expenditures for the purchase of properties, plants, and equipment totaling approximately HKD 4.2 million, with about HKD 3.8 million funded through the net proceeds from the share issuance in 2019[100] - The planned use of net proceeds includes upgrading production facilities and enhancing production capacity, with an allocation of HKD 50.4 million, up from HKD 46.3 million in the previous year[110] - The group aims to strengthen product design and development capabilities, allocating HKD 31.6 million, an increase from HKD 14.9 million[110] - The group has committed to upgrading its information technology systems with an allocation of HKD 5.7 million, up from HKD 2.3 million[110] Compliance and Governance - The group has complied with all relevant laws and regulations in Hong Kong and China as of the announcement date[108]

Financial Performance - TownRay reported strong financial performance for the six months ended June 30, 2023, despite challenges from the COVID-19 pandemic and geopolitical tensions[41]. - Total revenue increased by approximately HKD 117.1 million or about 39.0% to approximately HKD 417.1 million for the six months ended June 30, 2022, compared to approximately HKD 300.0 million for the same period in 2021[52]. - Gross profit rose from approximately HKD 88.4 million to approximately HKD 121.5 million, an increase of about HKD 33.1 million or approximately 37.5%, despite a slight decline in gross margin from 29.5% to 29.1% due to rising raw material costs[53]. - Net profit increased by approximately HKD 22.1 million or about 56.4% to approximately HKD 61.3 million for the six months ended June 30, 2022, with a net profit margin rising from 13.1% to 14.7%[61]. - The company achieved a profit before tax of HKD 74,470,000, which is a 61.2% increase compared to HKD 46,172,000 in the previous year[166]. - The total comprehensive income for the period was HKD 53,592,000, compared to HKD 40,306,000 in the same period last year[178]. Growth Drivers - The company experienced growth due to increased vaccination rates and the lifting of restrictions in Europe, leading to a rebound in consumer spending[41]. - New product orders with enhanced styles and features contributed to a higher average selling price, improving the product mix[41]. - For the second half of 2022, TownRay remains cautiously optimistic about stable growth, supported by low unemployment rates in the Eurozone and expected consumer spending from accumulated savings[46]. - The company plans to enhance product development and innovation to address potential consumer demand shrinkage[46]. Operational Efficiency - The company maintained production and delivery schedules despite supply chain disruptions, thanks to proactive strategies and effective communication with stakeholders[41]. - TownRay's factory in Huizhou has expanded production capacity, with new production lines and machinery operational as planned[46]. - The company is focusing on Industry 4.0 technology updates to increase production efficiency and support new market development[46]. - Effective communication with customers and partners is crucial for adapting to market changes amid ongoing macroeconomic uncertainties[47]. Financial Metrics - Other income and net gains increased from approximately HKD 1.6 million to approximately HKD 3.4 million, primarily due to government subsidies of about HKD 1.6 million received during the period[54]. - General and administrative expenses rose from approximately HKD 37.3 million to approximately HKD 40.7 million, an increase of about HKD 3.4 million, mainly due to higher employee benefits expenses[58]. - Financing costs increased from approximately HKD 0.4 million to approximately HKD 1.7 million, attributed to higher interest on lease liabilities and bank borrowings[59]. - Tax expenses rose from approximately HKD 7.0 million to approximately HKD 13.2 million, with effective tax rates of approximately 15.2% and 17.7% for the respective periods[60]. Shareholder Information - The interim dividend declared for the six months ended June 30, 2022, is HKD 0.108 per share, totaling approximately HKD 38.8 million, an increase from HKD 35.2 million for the same period in 2021[106]. - Dr. Chen Jian Guang and Ms. Zheng Yu Hui collectively own 213,640,000 shares, representing 59.51% of the company[115]. - Ms. Zheng Yu Hui holds an additional 6,806,000 shares, accounting for 1.90% of the company[115]. - Capital Fortress Limited, owned by Mr. Liang Kai Chang, holds 29,000,000 shares, which is 8.08% of the company[127]. - Bestresult Assets Limited, owned by Ms. Li Xiao Lan, possesses 22,360,000 shares, representing 6.23% of the company[127]. - The ownership structure indicates a strong concentration of shares among a few key individuals and entities[127]. Employee and Operational Costs - As of June 30, 2022, the total employee cost (excluding directors' remuneration) was approximately HKD 53.8 million, compared to HKD 40.1 million for the same period in 2021, representing a year-on-year increase of 34.8%[86]. - The total employee cost for the six months ended June 30, 2022, reflects a significant investment in human resources to support growth initiatives[86]. - The group had a total of 1,022 full-time employees as of June 30, 2022, an increase from 866 employees as of December 31, 2021[86]. Asset and Liability Management - Cash and cash equivalents amounted to approximately HKD 938 million as of June 30, 2022, up from approximately HKD 144.9 million as of December 31, 2021[74]. - Current assets decreased to HKD 419,901,000 from HKD 501,516,000, reflecting a decline of approximately 16.3%[182]. - Current liabilities remained relatively stable at HKD 245,811,000 compared to HKD 248,285,000, showing a slight decrease of 1.9%[182]. - Net assets stood at HKD 328,338,000, down from HKD 332,186,000, indicating a decrease of about 1.3%[186]. - The capital debt ratio increased to approximately 33.1% as of June 30, 2022, compared to approximately 24.1% as of December 31, 2021, due to increased interest-bearing bank borrowings[73]. Regulatory Compliance - The company is subject to the Securities and Futures Ordinance, which governs the disclosure of interests in shares and related securities[120]. - The company continues to comply with regulatory requirements regarding the disclosure of shareholdings and interests[126].

Financial Performance - The company reported revenue of HKD 763.1 million for the year, an increase of 40.9% compared to the previous year[8]. - Gross profit for the year was HKD 221.0 million, with a gross margin of 29.0%[8]. - Net profit attributable to equity holders was HKD 106.5 million, resulting in a net profit margin of 14.0%[8]. - Earnings per share for the year were HKD 0.2967, up from HKD 0.2753 in 2020[8]. - Total revenue increased by approximately HKD 221.4 million or 40.9% to approximately HKD 763.1 million for the year ended December 31, 2021, primarily due to increased sales in cooking appliances[27]. - Gross profit increased by approximately HKD 37.0 million or 20.1% to approximately HKD 221.0 million, despite a decrease in gross margin from about 34.0% to 29.0% due to RMB appreciation and rising raw material costs[28]. - The group's net profit increased by approximately HKD 2.3 million or about 2.2%, from approximately HKD 104.2 million for the year ended December 31, 2020, to approximately HKD 106.5 million for the year ended December 31, 2021[36]. - The effective tax rate for the years ended December 31, 2020, and December 31, 2021, was approximately 15.1% and 15.4%, respectively[35]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.16 per share, compared to HKD 0.144 per share in 2020[9]. - The company proposed a final dividend of HKD 0.16 per share for the year ending December 31, 2021, compared to HKD 0.144 in 2020, pending shareholder approval at the upcoming annual general meeting[65]. - The company has a sustainable dividend policy aimed at balancing shareholder interests and prudent capital management, with future dividends subject to board approval based on overall best interests[178]. Sustainability and Environmental Goals - The company aims to reduce emissions, hazardous waste, and water consumption by 15% per production unit by 2025, based on 2020 levels[13]. - The company aims to reduce emissions, hazardous waste, and water consumption by 15% by 2025 from a 2020 baseline as part of its commitment to sustainability[25]. - The management team emphasizes a focus on sustainability, aiming for a 30% reduction in carbon footprint by 2025[96]. Market Expansion and Product Development - The company plans to invest in increasing production capacity to better meet growing customer demand and diversify its customer base[13]. - The company plans to launch several new models in 2022 to support international market expansion and meet consumer demand[22]. - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[96]. - Market expansion plans include entering two new international markets by Q3 2022, aiming for a 20% increase in market share[96]. - A new product line is set to launch in Q2 2022, expected to contribute an additional $3 million in revenue[96]. - New product development is underway, with three innovative products scheduled for launch in Q3 2022, aimed at enhancing market competitiveness[121]. Operational Efficiency and Technology Integration - The company is focusing on integrating advanced technologies such as AI, IoT, and extended reality into its products to enhance value for customers[13]. - The company is committed to improving production efficiency to mitigate pressures from raw material shortages and supply chain disruptions[10]. - The company has implemented Industry 4.0 production lines to enhance digitalization and automation, improving production efficiency[25]. - The company has established partnerships with key suppliers to improve supply chain efficiency, targeting a 15% reduction in costs[96]. Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and believes it has complied with all provisions during the reporting period[64]. - The company has confirmed compliance with the corporate governance code for the year ending December 31, 2021[128]. - The board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors[131]. - The independent non-executive directors contribute to the effective operation of the board and provide checks and balances for the interests of the group and shareholders[136]. - The company has established written guidelines for employees regarding securities trading, ensuring compliance with the standard code[130]. Financial Management and Investments - The company reported a significant increase in overall financial management and investment operations, with a focus on budget formulation[82]. - The company has invested HKD 50 million in R&D for new technologies, focusing on sustainability and energy efficiency[121]. - The company has made capital commitments of approximately HKD 78.7 million for the purchase of properties, plants, and equipment as of December 31, 2021[38]. Employee and Management Insights - The total employee cost for the year ended December 31, 2021, was approximately HKD 94.1 million, an increase from approximately HKD 73.4 million in 2020[58]. - The group employed a total of 866 full-time employees as of December 31, 2021, compared to 792 in 2020[58]. - The management team has extensive experience, with an average of over 30 years in the industry, ensuring strong leadership[121]. - The management team is committed to continuous professional development, with members holding advanced qualifications in finance and business management[85]. Risk Management - The company has adopted a risk management policy to ensure sustainable business growth and to proactively address business-related risks[189]. - The audit committee assists the board in continuously reviewing the effectiveness of the group's risk management and internal control systems[187]. - The board has conducted an annual review of the effectiveness of the risk management and internal control systems, covering all significant control aspects[200].

Financial Performance - Total revenue increased by approximately HKD 76.2 million or about 34.1% to approximately HKD 300.0 million for the six months ended June 30, 2021, compared to approximately HKD 223.8 million for the same period in 2020[49]. - Gross profit increased by approximately HKD 13.6 million or about 18.2% to approximately HKD 88.4 million for the six months ended June 30, 2021, despite a decrease in gross margin from 33.4% to 29.5%[50]. - Net profit rose by approximately HKD 4.4 million or about 12.5% to approximately HKD 39.2 million for the six months ended June 30, 2021, with a net profit margin decline from 15.6% to 13.1%[56]. - For the six months ended June 30, 2021, the company reported revenue of HKD 300,041,000, representing a 34% increase from HKD 223,796,000 in the same period of 2020[142]. - Gross profit for the same period was HKD 88,399,000, up from HKD 74,813,000, indicating a growth of approximately 18%[142]. - The net profit for the period was HKD 39,171,000, compared to HKD 34,805,000 in the previous year, reflecting a year-on-year increase of about 12.7%[142]. - Total comprehensive income for the period was HKD 40,306,000, compared to HKD 33,407,000 in the prior year, marking a 20.5% increase[147]. Operational Challenges - The company faced pressures from global shipping container shortages and rising raw material prices, but maintained close communication with customers and suppliers to mitigate impacts on profitability[39]. - The group faced significant risks including potential impacts from public health events, which could lead to lockdowns and operational disruptions in regions like China and Hong Kong[72]. - The company relies on a few major customers, and any deterioration in relationships with these customers could significantly impact performance[72]. Production and Capacity - The company expanded its production capacity, which is crucial for meeting the growing demand for its products, reflecting the success of management's forward-looking strategy[36]. - The new production capacity added in 2020 is expected to contribute positively to the company's performance in the second half of 2021[40]. - The company plans to upgrade production facilities and increase capacity with a budget of HKD 50.4 million, of which HKD 21.6 million has been spent by June 30, 2021[82]. - The company is exploring effective ways to enter the Chinese consumer market and is enhancing its industrial 4.0 production lines to improve capacity and efficiency[48]. Product Development - Town Ray has diversified its product range and customer base, expanding its R&D team in Hong Kong and launching its own brand to tap into affluent consumers in the Greater Bay Area[39]. - Town Ray plans to invest in product development and introduce new cooking appliance products in the coming years to enhance its competitive advantage in the market[44]. - The company aims to develop new and more complex features for existing products to add value for its brand and end consumers[44]. - The company aims to enhance product design and development capabilities with a budget of HKD 31.6 million, of which HKD 8.6 million has been utilized by June 30, 2021[82]. Financial Position - Cash and cash equivalents were approximately HKD 188.9 million as of June 30, 2021, down from approximately HKD 223.9 million as of December 31, 2020[66]. - The capital debt ratio as of June 30, 2021, was approximately 12.3%, a decrease from approximately 12.8% as of December 31, 2020, mainly due to a reduction in interest-bearing bank borrowings[64]. - Net assets decreased to HKD 297,593,000 from HKD 308,983,000 year-over-year, representing a decline of approximately 3.8%[155]. - The company reported a net cash outflow from financing activities of HKD 61,466,000 for the six months ended June 30, 2021, compared to HKD 89,608,000 in the previous year, indicating a reduction of approximately 31.5%[163]. Employee and Administrative Costs - General and administrative expenses increased from approximately HKD 28.5 million to approximately HKD 37.3 million, attributed to higher employee benefits expenses[54]. - As of June 30, 2021, the total employee cost (excluding director remuneration) was approximately HKD 40.1 million, an increase from HKD 33.8 million for the same period in 2020[77]. - The group employed 881 full-time staff as of June 30, 2021, up from 792 as of December 31, 2020[77]. Shareholder Information - The interim dividend declared for the six months ended June 30, 2021, was HKD 0.098 per share, totaling approximately HKD 35.2 million, compared to HKD 32.0 million for the same period in 2020[98]. - The company will suspend shareholder registration procedures from September 15 to September 17, 2021, to determine the rights of shareholders to receive the interim dividend, which is expected to be paid on September 24, 2021[99]. - The net proceeds from the share issuance on October 25, 2019, amounted to approximately HKD 90.7 million, with HKD 32.6 million utilized by June 30, 2021, leaving HKD 58.1 million unutilized[81]. Market Performance - Revenue from European customers reached HKD 280,730 thousand, a 40% increase compared to HKD 200,576 thousand in the prior year[184]. - Revenue from the Americas decreased to HKD 3,446 thousand from HKD 10,277 thousand, indicating a decline of approximately 66%[184]. - The group anticipates continued growth in revenue driven by the demand for electric household appliances in the European market[184].

Financial Performance - For the year 2020, the company achieved revenue of HKD 541.7 million and gross profit of HKD 184.0 million, representing increases of 6.2% and 3.1% respectively compared to the previous year[8]. - The adjusted profit attributable to equity holders was HKD 104.2 million, a growth of 29.6% year-on-year, with an overall adjusted net profit margin increasing by 3.4 percentage points to 19.2%[8]. - Total revenue increased by approximately HKD 31.5 million or about 6.2% to approximately HKD 541.7 million for the year ended December 31, 2020, primarily due to increased sales of cooking appliances[22]. - Gross profit rose from approximately HKD 178.5 million to approximately HKD 184.0 million, an increase of about 3.1%, despite a slight decline in gross margin from 35.0% to 34.0%[23]. - Net profit increased by approximately HKD 43.4 million or about 71.3% to approximately HKD 104.2 million for the year ended December 31, 2020[30]. - The adjusted net profit margin (excluding listing expenses) increased from approximately 15.8% to 19.2%, a rise of about 3.4 percentage points[30]. - The overall performance was bolstered by government subsidies and a temporary exemption from social insurance contributions in China[8]. Market Expansion and Product Development - The company plans to enhance its product design and innovation capabilities, expanding its R&D center in Hong Kong and integrating IoT and augmented reality technologies into product development[10]. - The company aims to diversify its product portfolio by exploring new types of electric heating appliances and upgrading its production facilities to meet Industry 4.0 standards[10]. - The company is optimistic about the market potential in the Greater Bay Area, seeking opportunities to enter this market with its own brand[10]. - The company aims to enter the Chinese market with its own brand in 2021, starting from the affluent Greater Bay Area[21]. - The company will leverage its strong R&D capabilities to develop diversified products that meet the growing demand for more functional and advanced electric cooking appliances[18]. Challenges and Resilience - The company faced challenges due to the pandemic, including production delays and disruptions in international logistics, but managed to achieve strong financial performance[7]. - The company is cautiously optimistic about the business environment in 2021, with signs of improvement and a resilient economic recovery in China[10]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance and enhancing investor confidence[115]. - The board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors[121]. - The company has established written guidelines for employees regarding securities trading, ensuring adherence to the standards set forth in the corporate governance code[120]. - The company has maintained compliance with the corporate governance code throughout the reporting period, reinforcing its commitment to good governance practices[117]. - The company has implemented measures to address a technical breach of the securities trading code by a director, ensuring future compliance[119]. - The company has a commitment to maintaining shareholder value and protecting stakeholder interests through effective governance structures[115]. Risk Management and Internal Controls - The board believes that the risk management and internal control systems are effective and sufficient, having conducted an annual review of their effectiveness[176]. - The company has adopted a risk management policy aimed at ensuring sustainable growth and addressing business-related risks proactively[180]. - The board has not identified any significant deficiencies related to risk management and internal controls[179]. - The internal audit function is responsible for developing internal control guidelines and reviewing key operational processes to ensure compliance with risk management policies[190]. - The company’s risk assessment process involves identifying risks through discussions with senior management and prioritizing them based on their impact and likelihood[185]. Shareholder Communication and Transparency - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and transparency[198]. - The annual general meeting provides a platform for the board to communicate with shareholders and address their questions[198]. - The company recognizes the significance of maintaining transparency and timely disclosure of information for optimal investment decisions[198]. - The company has a policy in place for handling and disclosing insider information, ensuring compliance with relevant regulations[187]. Employee and Financial Management - The total employee cost (excluding director remuneration) for the year ended December 31, 2020, was approximately HKD 73.4 million, compared to HKD 76.9 million in 2019[49]. - The group had a total of 792 full-time employees as of December 31, 2020, down from 836 in 2019[49]. - The group maintained a current ratio of approximately 2.6 times as of December 31, 2020, slightly down from 2.8 times in 2019, but still at a healthy level[39]. - The group has established long-term cooperative relationships with major clients, which are reputable and internationally recognized brand companies based in Europe[58]. Dividend and Financial Policies - The board proposed a final dividend of HKD 0.144 per share to thank shareholders for their support[9]. - The proposed final dividend for the year ended December 31, 2020, is HKD 0.144 per share, an increase from HKD 0.106 per share in 2019[56]. - The company has a dividend policy that considers factors such as financial condition, cash requirements for future development, and any restrictions imposed by lenders[167]. - The company is committed to a sustainable dividend policy that balances shareholder interests with prudent capital management[167].

Financial Performance - Total revenue decreased from approximately HKD 242.7 million for the six months ended June 30, 2019, to approximately HKD 223.8 million for the six months ended June 30, 2020, a decline of about 7.8%[20]. - Gross profit fell from approximately HKD 81.2 million to approximately HKD 74.8 million, a decrease of about 7.8%, while maintaining a gross profit margin of approximately 33.4% for both periods[21]. - Net profit increased by approximately 39.4% from approximately HKD 25.0 million to approximately HKD 34.8 million for the six months ended June 30, 2020[27]. - Revenue for the six months ended June 30, 2020, was HKD 223,796,000, a decrease of 7.8% from HKD 242,723,000 in the same period of 2019[111]. - Profit before tax increased to HKD 43,317,000, compared to HKD 34,766,000 in the previous year, representing a growth of 24.5%[111]. - Basic earnings per share rose to HKD 8.76, compared to HKD 8.32 in the prior year, reflecting a growth of 5.3%[111]. - The company reported total comprehensive income of HKD 33,407,000 for the period, compared to HKD 24,602,000 in the previous year[112]. Expenses and Costs - General and administrative expenses decreased from approximately HKD 40.4 million to approximately HKD 28.5 million, attributed to a one-time listing expense of approximately HKD 12.6 million recorded in the prior period[24]. - Financing costs reduced from approximately HKD 1.8 million to approximately HKD 1.0 million, due to a decrease in interest on bank borrowings and lease liabilities[25]. - Income tax expense decreased by approximately 13.2% from approximately HKD 9.8 million to approximately HKD 8.5 million, mainly due to a reduction in revenue and gross profit[26]. - Administrative expenses decreased significantly to HKD 28,477,000 from HKD 40,396,000, showing a reduction of 29.5%[111]. Cash Flow and Assets - The company reported a cash inflow from operating activities of HKD 55,180,000 for the six months ended June 30, 2020[137]. - The company incurred a net cash outflow from investing activities of HKD 8,122,000 during the same period[137]. - Current assets decreased to HKD 354,401,000 from HKD 415,308,000, representing a decline of 14.6%[115]. - Cash and cash equivalents decreased to HKD 202,245,000 from HKD 245,558,000, a reduction of 17.6%[137]. - Non-current assets totaled HKD 53,318,000 as of June 30, 2020, a decrease of 1.8% from HKD 54,305,000 as of December 31, 2019[115]. Shareholder Information - The interim dividend declared for the six months ended June 30, 2020, is HKD 0.089 per share, totaling approximately HKD 32.0 million, compared to no dividend for the same period in 2019[68]. - The company plans to pay an interim dividend to eligible shareholders on September 25, 2020[69]. - The company repurchased a total of 31,526,000 shares at a total cost of HKD 25,487,160 before transaction costs for the six months ended June 30, 2020[75]. - The company repurchased a total of 9,474,000 shares at a total cost of HKD 7,590,000 after the reporting period[103]. - Dr. Chan and Ms. Cheng collectively own 213,640,000 shares, representing approximately 54.20% of the company[80]. Market and Operational Outlook - The company anticipates that consumer demand for cooking appliances will remain stable or even increase, as people spend more time at home and reduce dining out[14]. - The management is optimistic about the business outlook for the remainder of 2020, expecting no adverse effects from logistics supply and import tariffs on products to Europe, the UK, and the US[14]. - The company is actively seeking opportunities to enter the Chinese market with its own brand, particularly in the rapidly developing Greater Bay Area[19]. - The company will closely monitor the pandemic and respond swiftly to market changes to maintain competitiveness and sustainability[19]. - The company is optimizing its operations and production facilities according to Industry 4.0 standards to streamline business units and enhance long-term development efficiency[15]. Employee and Community Engagement - The management acknowledges the contributions of employees who remained in China to oversee factory operations during the pandemic[11]. - The total employee cost incurred by the group for the six months ended June 30, 2020, was approximately HKD 33.8 million, a decrease from HKD 37.1 million for the same period in 2019[50]. - The company made charitable donations of approximately HKD 1.0 million for the six months ended June 30, 2020[70]. Financial Position and Liabilities - The capital debt ratio decreased to approximately 10.4% as of June 30, 2020, from approximately 14.2% as of December 31, 2019, primarily due to a reduction in interest-bearing bank borrowings[36]. - As of June 30, 2020, the total interest-bearing bank borrowings amounted to approximately HKD 28.2 million, down from approximately HKD 43.5 million as of December 31, 2019[39]. - Total liabilities decreased to HKD 8,087,000 from HKD 12,874,000, a reduction of 37.1%[116]. Product Development and Market Strategy - The company plans to invest more resources in R&D to expand product variety and optimize functionalities, exploring the integration of smart solutions and the latest technologies[14]. - The company is in discussions with clients to introduce its cooking appliances into new markets, with plans for mass production if new products are launched successfully[14]. - The company has not disclosed any new product or technology developments in the current report[86]. - There are no indications of market expansion or mergers and acquisitions mentioned in the report[86].

Financial Performance - The company's revenue and gross profit for 2019 were HKD 510.2 million and HKD 178.5 million, representing increases of 36.6% and 69.5% year-over-year, respectively[9]. - Profit attributable to equity holders was HKD 60.8 million, a growth of 59.9% compared to the previous year[9]. - Overall gross margin and net profit margin improved to 35.0% and 11.9%, up by 6.8% and 1.7% year-over-year, respectively[9]. - The group's total revenue increased by approximately HKD 136.7 million or about 36.6% to approximately HKD 510.2 million for the year ended December 31, 2019, primarily due to increased sales of cooking appliances[24]. - Gross profit rose from approximately HKD 105.3 million to approximately HKD 178.5 million, representing an increase of about 69.5%, with the gross profit margin improving from approximately 28.2% to 35.0%[25]. - Net profit increased by approximately HKD 22.8 million or about 59.9% to approximately HKD 60.8 million for the year ended December 31, 2019, with adjusted net profit (excluding listing expenses) at approximately HKD 80.4 million[32]. Challenges and Outlook - The company anticipates challenges in supply chain and sales due to the ongoing impact of the COVID-19 pandemic[10]. - The group anticipates challenges in 2020 due to rising protectionism, geopolitical uncertainties, and the impact of the pandemic on global economic conditions[20]. - The company remains optimistic about future success despite various challenges, adhering to its corporate philosophy of excellence in communication, service, quality, design, and value[13]. Strategic Initiatives - The company plans to enhance its design team capabilities and expand development capacity to introduce new models and explore new markets[13]. - The company aims to upgrade production facilities to meet Industry 4.0 standards, enhancing service levels, quality, and profitability[13]. - The group established a research and development center in 2019 and plans to expand the team in 2020 to drive the development of thermodynamic technology and related products[21]. - The company emphasizes a diversified product portfolio and advanced thermodynamic technology as key to its success[10]. Dividends and Financial Management - The board proposed a final dividend of HKD 0.106 per share for the year[9]. - The board will consider the group's overall financial condition, funding and debt status, and future cash needs when determining dividend distribution[164]. Employee and Operational Metrics - The total employee cost (excluding directors' remuneration) for the year ended December 31, 2019, was approximately HKD 76.9 million, down from HKD 81.9 million in 2018[52]. - The company had 836 full-time employees as of December 31, 2019, a decrease from 922 employees in 2018[52]. Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance and enhancing investor confidence[111]. - The board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors[119]. - The company has established written guidelines for employees regarding securities trading, ensuring adherence to regulations and preventing insider trading[118]. - The company has a diverse board composition, which includes a mix of executive and independent directors, enhancing decision-making processes[119]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of governance[145]. Risk Management - The board believes that the group's risk management and internal control systems are effective and adequate as of December 31, 2019[177]. - The company has implemented a risk management policy aimed at ensuring sustainable and stable business growth[178]. - The company aims to ensure that all significant risks are identified, assessed, quantified, and managed effectively to maintain a robust risk management system[179]. Shareholder Engagement - The company recognizes the importance of effective communication with shareholders to enhance investor relations and transparency[196]. - The annual general meeting provides a platform for the board to engage with shareholders and address their questions[196].