Financial Performance - For the six months ended June 30, 2024, the company reported revenue of $130.719 million, an increase of 13.4% compared to $115.339 million for the same period in 2023[1] - Gross profit for the same period was $32.386 million, representing a gross margin of 24.8%, up from $23.016 million and a gross margin of 19.9% in 2023[1] - The net profit attributable to shareholders for the six months ended June 30, 2024, was $19.783 million, compared to $9.683 million in the prior year, reflecting a growth of 104.5%[1] - The total comprehensive income attributable to shareholders for the period was $18.422 million, significantly higher than $8.384 million in the same period last year[2] - Basic and diluted earnings per share increased to $1.68, compared to $0.88 for the same period in 2023, marking an increase of 90.9%[2] - The group reported a pre-tax profit of $18.86 million for the six months ended June 30, 2024, compared to $9.87 million for the same period in 2023, representing an increase of 90.5%[17] - Basic earnings per share for the period were $0.0168, up from $0.0088 in the previous year, indicating a growth of 90.9%[17] - Net profit attributable to shareholders increased by approximately $9.0 million or 91.1% to about $18.9 million, with earnings per share rising from $0.88 to $1.68[27] Assets and Liabilities - Non-current assets totaled $41.526 million as of June 30, 2024, slightly down from $42.136 million at the end of 2023[3] - Current assets increased to $161.967 million from $153.556 million at the end of 2023, driven by a rise in trade receivables[3] - The company's cash and cash equivalents rose to $58.672 million, up from $42.269 million at the end of 2023, indicating improved liquidity[3] - Total equity increased to $160.202 million as of June 30, 2024, compared to $148.951 million at the end of 2023, reflecting a growth of 7.4%[5] - Trade receivables as of June 30, 2024, were $60.98 million, up from $49.43 million as of December 31, 2023, reflecting a growth of 23.4%[19] - Accounts receivable at the end of the reporting period totaled $60.782 million, up from $49.233 million at the end of December 31, 2023, reflecting a significant increase[20] - Accounts payable and notes payable at the end of the reporting period totaled $13.838 million, down from $21.342 million at the end of December 31, 2023[21] Revenue Breakdown - Revenue from the US market decreased to $40.83 million, down 16.5% from $48.91 million year-over-year[9] - Revenue from Belgium increased significantly to $19.63 million, up 40.5% from $13.99 million in the previous year[9] - Sales volume increased from approximately 10.9 million units in the same period last year to about 12.6 million units, representing an increase of approximately 1.7 million units or 15.4%[25] - Sales revenue from outdoor and sports categories recorded strong double-digit growth, accounting for over 81% of total revenue[25] Expenses and Dividends - The group incurred a tax expense of $0.93 million for the six months ended June 30, 2024, compared to a tax credit of $0.18 million in the same period of 2023[15] - The company declared a final dividend of 5.0 HK cents per share, compared to 4.2 HK cents in the previous year, marking an increase of 19%[16] - Sales and distribution expenses rose to approximately $6.1 million, a 12.2% increase from about $5.5 million in the previous year, primarily due to increased shipment volumes[27] Capital Expenditures and Investments - The group purchased property, plant, and equipment for approximately $798,000 during the period, compared to $777,000 in the same period of 2023[18] - Capital expenditures for the period were $0.8 million, consistent with the previous year, primarily for the acquisition of property, plant, equipment, and intangible assets[28] Corporate Governance and Compliance - The company adheres to high standards of corporate governance and has complied with the corporate governance code throughout the period[36] - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial results for the six months ended June 30, 2024, and found them to comply with applicable accounting standards[39] - The interim financial results were published on the Hong Kong Stock Exchange and the company's website, ensuring transparency and compliance with listing regulations[40] Strategic Plans and Market Position - The company is primarily engaged in the manufacturing and sale of sports bags, handbags, and luggage, with ongoing efforts in market expansion and product development[6] - The company plans to further develop its land use rights in Panyu, Guangdong Province, which covers an area of 137,077.31 square meters, to enhance asset value and profitability[23] - The maximum total floor area of the newly designated industrial land is approximately 393,338.92 square meters, with a significantly improved plot ratio of 4.0 compared to the previous 2.0[24] - The company aims to optimize production capacity distribution from China to Vietnam and Cambodia while maintaining healthy financial conditions to support operations[24] - The company is committed to maximizing shareholder value through efficient production processes and strategic land development opportunities[23] Employee and Operational Information - Employee compensation and benefits are aligned with market levels, with approximately 8,300 employees as of June 30, 2024[32] - The company faced foreign exchange risk as its operating costs are primarily denominated in RMB and VND, while most sales are in USD[35] - The company has no significant contingent liabilities or capital commitments as of June 30, 2024[29][30] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[38] - The company did not buy, sell, or redeem any of its listed securities during the period, and as of June 30, 2024, it held no treasury shares[38] - The company did not declare any interim dividend during the period, consistent with the previous period[38]

Financial Performance - Revenue for the year was $208,138,000, a decrease from $218,188,000 in the previous year, representing a decline of approximately 4.8%[15] - Net profit increased to $43,752,000, up from $40,592,000, reflecting a growth of about 5.3% year-over-year[15] - Basic and diluted earnings per share rose to 14.879 cents, compared to 10.345 cents in the previous year, marking an increase of approximately 43.8%[15] - Gross profit margin improved to 21.0%, up from 18.6% in the previous year, indicating enhanced operational efficiency[15] - The company's gross profit increased from approximately $40.6 million in 2022 to $43.8 million in 2023, with a gross margin improvement from 18.6% to 21.0%[50] - Total revenue for the year ended December 31, 2023, was approximately $208.1 million, a decrease of about $10.1 million or 4.6% compared to approximately $218.2 million in 2022[101] - The profit attributable to shareholders increased by approximately $4.5 million or 43.8% to $14.9 million compared to about $10.3 million in 2022[102] Liquidity and Financial Position - Current ratio increased to 3.6 from 3.3, while quick ratio improved to 2.7 from 2.3, demonstrating stronger liquidity position[15] - As of December 31, 2023, the company had cash and cash equivalents of approximately $58.1 million and no external borrowings, resulting in a debt-to-equity ratio of zero[84] - The company has maintained a strong financial position with no significant changes in share capital during the year, totaling HKD 11.2 million[94] Operational Efficiency and Cost Management - The overall profit margin significantly improved despite a decline in customer demand, showcasing effective cost management strategies[33] - Sales costs for the year were approximately $164.4 million, a decrease of about $13.2 million or 7.4% compared to approximately $177.6 million in 2022[53] - The focus for 2023 is on streamlining production processes and cost structures to enhance production efficiency[50] - The administrative expenses for the year were approximately $17.6 million, accounting for about 8.5% of total revenue, up from 7.6% in 2022[101] Market Conditions and Customer Demand - The company experienced a softening in customer demand due to high inventory levels among retailers and ongoing geopolitical conflicts[50] - Total sales volume decreased from approximately 20.8 million units in 2022 to about 19.4 million units in the current year, representing a reduction of approximately 1.4 million units or 6.9%[101] - Sales to the Chinese market fell to below 10% of total sales, marking a new low in recent years[99] Corporate Governance and Management - The management team has extensive experience, with key executives having over 36 years in manufacturing and management roles[46][47] - The board has proposed a final dividend of HKD 0.05 per share to be paid to shareholders on June 28, 2024[87] - The company has established a multi-regional manufacturing platform with facilities in China, Vietnam, and Cambodia, enhancing supply chain management services[78] - The board held a total of 4 meetings, while the audit committee, remuneration committee, and nomination committee held 3, 2, and 2 meetings respectively[132] Risk Management and Sustainability - The management highlighted a focus on operational efficiency and prudent risk management to navigate market challenges[33] - The company aims to reduce greenhouse gas emissions and embed environmental and social goals into business processes[160][162] - The company has implemented anti-bribery and anti-corruption policies to identify and eliminate unethical business practices[137] - The company is committed to complying with all relevant environmental laws and regulations, ensuring adherence to significant environmental legal requirements during the reporting year[195] Stakeholder Engagement and Corporate Social Responsibility - The company emphasizes transparency and accountability in its ESG risk management and internal control systems[146] - The company engages with stakeholders to understand their concerns and expectations regarding significant ESG issues, prioritizing these matters in its strategy[191] - The company aims to improve customer satisfaction with high-quality products and services to achieve sustainable growth[62] - The company emphasizes the importance of corporate social responsibility (CSR) as part of its business strategy, integrating environmental, social, and governance (ESG) considerations into its operations[184] Future Outlook - The company remains cautiously optimistic about long-term growth despite macroeconomic uncertainties, including high inflation and interest rates[51] - The company plans to continue monitoring macroeconomic developments and adapt its operations accordingly[51] - The company plans to continue seeking growth opportunities and adapting to changing market dynamics[33] - The company is closely monitoring macroeconomic and geopolitical conditions to adjust its operations for sustainable growth and shareholder returns[190]

Financial Performance - The company's total revenue for the year 2023 was $208,138,000, a decrease of 4.8% from $218,188,000 in 2022[10] - Gross profit for 2023 was $43,752,000, compared to $40,592,000 in 2022, reflecting an increase of 5.3%[19] - The net profit attributable to shareholders for 2023 was $14,879,000, up from $10,345,000 in 2022, representing a growth of 43.5%[19] - Total comprehensive income attributable to shareholders rose from $7,071 thousand in 2022 to $13,335 thousand in 2023, an increase of about 88%[29] - The company reported a total income from other sources of $3,410 thousand in 2023, compared to $2,632 thousand in 2022, marking an increase of about 30%[34] - The company reported a net loss of $21 thousand from the sale/write-off of property, plant, and equipment in 2023, compared to a loss of $14 thousand in 2022[36] - Basic earnings per share increased from 0.92 cents in 2022 to 1.33 cents in 2023, reflecting a rise of 0.41 cents[84] Revenue Sources - Sales of outdoor and sports bags amounted to $159,849,000 in 2023, slightly up from $157,176,000 in 2022[4] - Revenue from the United States was $73,359,000 in 2023, down from $92,566,000 in 2022, indicating a decline of 20.7%[16] - Major customer A contributed $81,646,000 to total revenue in 2023, an increase from $76,507,000 in 2022[13] - The outdoor and sports category remains the core segment, accounting for over 76% of total revenue[118] Assets and Liabilities - Non-current assets in mainland China decreased to $17,328,000 in 2023 from $19,658,000 in 2022[12] - Non-current assets decreased from $46,658 thousand in 2022 to $42,136 thousand in 2023, a decline of approximately 9%[21] - Current assets increased from $143,173 thousand in 2022 to $153,556 thousand in 2023, an increase of about 7%[21] - Total liabilities decreased from $42,840 thousand in 2022 to $43,158 thousand in 2023, showing a slight increase of about 0.7%[21] - The total value of non-current liabilities decreased from $5,373 thousand in 2022 to $3,583 thousand in 2023, a reduction of approximately 33%[23] - The net asset value increased from $141,618 thousand in 2022 to $148,951 thousand in 2023, representing a growth of approximately 5%[23] Expenses - Administrative expenses for the year were approximately $17.6 million, representing about 8.5% of total revenue, up from 7.6% in 2022[83] - Research and development expenses were $2,311 thousand in 2023, slightly down from $2,357 thousand in 2022[36] - Sales and distribution expenses for the year were approximately $11.0 million, a decrease of about $1.3 million or 10.5% due to reduced shipment volumes and a general decline in global shipping costs[118] Dividends and Shareholder Returns - The proposed final dividend for 2023 is 5.0 Hong Kong cents per share, up from 4.2 Hong Kong cents per share in 2022[39] - The board has proposed a final dividend of HK$0.05 per share to shareholders listed on the register as of June 28, 2024[123] Market and Operational Insights - The company expects continued cautious order placements from customers in the short term due to macroeconomic uncertainties[43] - The production capacity in Vietnam and Cambodia accounted for over 90% of the group's total production capacity, as sales to the Chinese market fell below 10% of total sales[81] - The company faced foreign exchange risks due to its procurement and operational costs being primarily denominated in RMB, VND, and USD, while most sales proceeds were received in USD[105] Employee and Workforce - The group had approximately 8,500 employees as of December 31, 2023, compared to about 7,500 employees in 2022[59] Other Financial Metrics - Bank interest income significantly increased from $418 thousand in 2022 to $1,638 thousand in 2023, a rise of approximately 291%[34] - Government grants decreased from $133 thousand in 2022 to $25 thousand in 2023, a decline of about 81%[34] - Rental income from investment properties remained stable, with fixed payments slightly increasing from $807 thousand in 2022 to $816 thousand in 2023[34] - Cost of goods sold decreased to $160,856 thousand in 2023 from $172,796 thousand in 2022, representing a reduction of approximately 6.9%[36] - Total sales volume decreased from approximately 20.8 million units in 2022 to about 19.4 million units in the current year, representing a decline of approximately 1.4 million units or 6.9%[118] - The average selling price per unit slightly increased from $10.5 to $10.7, offsetting some of the sales volume decline[118]

Financial Performance - For the six months ended June 30, 2023, the total comprehensive income attributable to shareholders was $8,384,000, compared to $5,198,000 for the same period in 2022, representing a 61.9% increase[17]. - The basic and diluted earnings per share for the period were 0.88 cents, up from 0.66 cents in the previous year, indicating a 33.3% growth[17]. - The company achieved a profit attributable to shareholders of $9,867,000, representing an increase of 33.1% from $7,412,000 in the prior year[36]. - The net profit before tax for the six months ended June 30, 2023, was $9,867,000, compared to $7,412,000 for the same period in 2022, indicating an increase of 33.1%[78]. - The group reported a net profit before tax of $151,000 for the six months ended June 30, 2023, compared to $227,000 for the same period in 2022, representing a decrease of approximately 33.4%[55]. Revenue and Sales - The company reported revenue of $115,339,000 for the six months ended June 30, 2023, a decrease of 7.5% compared to $124,540,000 for the same period in 2022[36]. - Total revenue for the six months ended June 30, 2023, was approximately $115.3 million, a decrease of about $9.2 million or 7.4% compared to approximately $124.5 million in the same period last year[116]. - Revenue from the United States decreased to $48,909,000 from $54,869,000, representing a decline of 10.5%[70]. - Revenue from China decreased significantly to $6,997,000 from $15,499,000, a drop of 54.9%[70]. - Sales volume decreased from approximately 12.1 million units to about 10.9 million units, representing a decline of approximately 1.2 million units or 9.9%[116]. - The outdoor and sports category accounted for over 73% of total revenue, remaining the core category for the company[116]. Expenses and Costs - The cost of goods sold for the six months ended June 30, 2023, was $90,542,000, down from $98,271,000 in the previous year, reflecting a decrease of 7.8%[74]. - The group’s total expenses for the period were $1,403,000, an increase from $1,331,000 in the previous year, indicating a rise of approximately 5.4%[58]. - Sales and distribution expenses were approximately $5.5 million, a decrease of about $1.5 million or 21.6% compared to approximately $7.0 million in the same period last year[117]. - The group’s sales cost was approximately $92.3 million, a decrease of about $7.9 million or 7.9% from approximately $100.2 million in the same period last year[133]. Cash Flow and Assets - Cash flows from operating activities for the six months ended June 30, 2023, were $7,419,000, significantly higher than $1,207,000 in the same period last year, marking a 514.5% increase[24]. - The net cash and cash equivalents at the end of the period were $46,749,000, an increase from $36,521,000 at the end of the same period last year, representing a 28.1% rise[24]. - The total non-current assets as of June 30, 2023, were $44,056,000, down from $46,658,000 as of December 31, 2022, reflecting a decrease of 5.6%[18]. - Current assets totaled $141,441,000 as of June 30, 2023, slightly down from $143,173,000 at the end of 2022, a decrease of 1.2%[18]. - As of June 30, 2023, the company had cash and cash equivalents of approximately $52.5 million and no external borrowings, resulting in a zero debt-to-equity ratio[101]. Equity and Liabilities - The total liabilities decreased from $42,840,000 to $36,902,000, a reduction of 13.9%[19]. - The company’s total equity increased to $144,000,000 as of June 30, 2023, compared to $141,618,000 at the end of 2022, reflecting a growth of 2.0%[19]. - Trade receivables at the end of the reporting period were $55,801,000, up from $42,239,000 at the end of the previous year, reflecting an increase of approximately 32.2%[62]. Investments and Capital Expenditure - The cash flow from investing activities for the six months ended June 30, 2023, was $4,679,000, compared to $1,796,000 in the previous year, indicating a 160.5% increase[24]. - The group invested approximately $777,000 in property, plant, and equipment during the period, down from $909,000 in the same period last year, indicating a decrease of about 14.5%[61]. - Capital expenditure for the period was $0.8 million, primarily for the acquisition of properties, plants, and equipment, as well as intangible assets[135]. Dividends and Shareholder Information - The group declared a final dividend of 4.2 HK cents per share, amounting to approximately $0.54, compared to a special dividend of $1,427,000 in the previous year[58]. - The company did not recommend an interim dividend for the six months ended June 30, 2023, consistent with the previous year[77]. - Prosperous BVI holds 588,000,000 shares, representing 52.5% of the company's equity[150]. - Great Pacific Investment Limited, a wholly-owned subsidiary of Yu Yuan, holds 252,000,000 shares, accounting for 22.5% of the company's equity[151]. Operational Insights - The company operates a single business segment focused on the production and sale of sports bags, handbags, and luggage[31]. - The company has shifted production capacity from China to Vietnam and Cambodia, with these locations accounting for over 90% of total production capacity during the period[95]. - The company remains cautiously optimistic about long-term growth in its manufacturing business despite ongoing inventory destocking and inflationary pressures[95]. - The company plans to continue exploring market expansion opportunities and new product development strategies[36]. Risk Management - The company faced foreign exchange risks due to its procurement and operating costs being primarily denominated in RMB and VND, while most sales were in USD[141]. - The company has maintained consistent accounting policies with no significant impact on financial performance from new accounting standards adopted[29]. - The audit committee has reviewed the unaudited interim financial results for the six months ending June 30, 2023, ensuring compliance with applicable accounting standards[162].

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佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任 何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 PROSPEROUS INDUSTRIAL (HOLDINGS) LIMITED 其 利 工 業 集 團 有 限 公 司 （於開曼群島註冊成立的有限責任公司） （股份代號：1731） 截至二零二三年六月三十日止六個月的中期業績公佈 中期業績 其利工業集團有限公司（「本公司」）的董事（「董事」）會（「董事會」）欣然公佈本公 司及其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月的未經審 核簡明綜合業績以及二零二二年同期的比較數字如下： 簡明綜合損益及其他全面收益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 附註 二零二三年 二零二二年 （未經審核）（未經審核） 千美元 千美元 ...

Executive Compensation - The basic salary of Executive Director Mr. Yang Shujian has been adjusted to HKD 189,500 per month starting from January 1, 2023[1]. - The basic salary of Executive Director Mr. Yang Hong has been adjusted to HKD 148,500 per month starting from January 1, 2023[2]. - The basic salary of executive director Yang Shujia will be adjusted to HKD 137,500 per month starting January 1, 2023[42]. - The basic salary of CEO Yang Shuxiong will be adjusted to HKD 175,000 per month starting January 1, 2023[43]. Shareholder Information - As of December 31, 2022, Mr. Yang Shujian holds 12 shares in Prosperous Holdings, representing 12% of the issued shares[29]. - As of December 31, 2022, Mr. Yang Shujia holds 6 shares in Prosperous BVI, representing 6% of the issued shares[29]. - As of December 31, 2022, Mr. Yang Hong holds 6 shares in Prosperous BVI, representing 6% of the issued shares[29]. - Prosperous BVI holds 588,000,000 shares, representing 52.5% of the company's equity[33]. - Great Pacific Investments Limited and its affiliates collectively own 252,000,000 shares, accounting for 22.5% of the company's equity[33]. - No shareholders known to the directors hold more than 5% of the company's shares among major customers and suppliers[39]. Financial Performance - The company's total revenue for the fiscal year ended December 31, 2022, surged to approximately $218.2 million, an increase of about $71.5 million or 48.8% compared to approximately $146.7 million in 2021[66]. - The profit attributable to shareholders for the year was approximately $10.3 million, an increase of about $6.4 million or 165.1% compared to approximately $3.9 million in 2021[71]. - The gross profit for the year was approximately $40.6 million, up from approximately $31.3 million in 2021, while the gross margin decreased from 21.3% in 2021 to 18.6% due to changes in sales mix and rising raw material and labor costs[69]. - The company's revenue for the year ended December 31, 2022, was $157.176 million, representing a 72.0% increase in sales volume to 14,719 thousand units with an average selling price of $10.7 per unit[109]. - Revenue for the year 2022 was $218,188,000, an increase of 48.8% compared to $146,673,000 in 2021[184]. - Net profit for 2022 was $10,345,000, representing a significant increase of 164.5% from $3,902,000 in 2021[184]. - Basic and diluted earnings per share for 2022 were 0.92 cents, compared to 0.35 cents in 2021[184]. Operational Highlights - Total sales volume increased from approximately 16.9 million units in 2021 to approximately 20.8 million units in the current year, representing an increase of about 3.9 million units or 23.1%[69]. - The average selling price per unit increased from $8.7 to $10.5 due to strong demand from two major customers[69]. - The company's production capacity in Vietnam and Cambodia accounted for approximately 90% of total capacity, reflecting a strategic shift from China[66]. - All product categories experienced strong double-digit growth, with the fashion and leisure category nearly doubling its revenue compared to 2021[69]. - The group has maintained a strong financial position with cash and cash equivalents of approximately $44.0 million and no external borrowings as of December 31, 2022[93]. - The group successfully acquired several new clients during the year and aims to continue attracting well-known brand owners to expand its customer base[88]. Expenses and Investments - Administrative expenses for the year were approximately $16.5 million, a decrease of about $0.6 million or 3.5% compared to approximately $17.1 million in 2021, attributed to stricter cost control measures[70]. - Sales and distribution expenses for the year were approximately $12.2 million, an increase of about $1.0 million or 8.8%, primarily due to increased shipment volumes[110]. - Capital expenditures for the year amounted to $2.5 million, primarily due to the acquisition of properties, plants, and equipment[93]. - An investment of HKD 30.8 million is designated for upgrading existing production machinery and establishing R&D centers to improve production efficiency and capacity[105]. - The group plans to enhance manufacturing capabilities and flexibility through the expansion of its Cambodian manufacturing platform, with an allocation of HKD 135.5 million for this purpose[105]. Dividends and Reserves - The company's available reserves for distribution as of December 31, 2022, amounted to $68.7 million, of which $6.1 million has been proposed for distribution as the final dividend for the year[142]. - The board has proposed a final dividend of 4.2 HK cents per share to shareholders listed on the register on June 29, 2023[118]. - Proposed final dividend for 2022 is 4.2 HK cents per share, compared to 1 HK cent per share in 2021[189]. Market Outlook and Strategy - The company remains cautiously optimistic about the global economic recovery post-COVID-19, despite challenges from inflation and rising interest rates[67]. - The company plans to continue monitoring market conditions and collaborating closely with partners to achieve sustainable business growth[67]. - The company is committed to ongoing business development and market expansion strategies[174]. - The company continues to focus on sustainable growth and improving customer satisfaction with quality products and services[174]. Risks and Compliance - The company faces foreign exchange risks as its procurement and operating costs are primarily denominated in RMB, VND, and USD, while most sales are collected in USD[117]. - The effective tax rates remained stable across regions, with Hong Kong at 16.5%, Vietnam at 20%, and mainland China at 25%[187]. - The company has purchased and maintained liability insurance for directors and executives to provide appropriate protection against certain legal actions[150]. - The company has no significant acquisitions or disposals of subsidiaries or associates for the year ended December 31, 2022[112]. - The company has no significant investments as of December 31, 2022[115]. - The company has no pledged assets as of December 31, 2022[116]. - The company has not made any charitable donations during the year[124]. - The company has not entered into any management or administrative contracts related to any significant part of its business during the year[27]. - There are no significant contracts established with the controlling shareholder or its subsidiaries during the year[28].

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佈的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 PROSPEROUS INDUSTRIAL (HOLDINGS) LIMITED 其 利 工 業 集 團 有 限 公 司 （於開曼群島註冊成立的有限責任公司） （股份代號：1731） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 全 年 業 績 公 佈 全年業績 其利工業集團有限公司（「本公司」）的董事（「董事」）會（「董事會」）欣然公佈本公 司及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度的綜 合業績，連同截至二零二一年十二月三十一日止年度的比較數字如下： ...

Financial Performance - For the six months ended June 30, 2022, the company reported revenue of $124,540,000, a 53% increase from $81,432,000 in the same period of 2021[7] - Gross profit for the same period was $24,344,000, up from $19,061,000, reflecting a gross margin improvement[7] - The company's net profit attributable to shareholders for the period was $7,412,000, compared to $4,279,000 in the prior year, representing a 73% increase[7] - Total comprehensive income attributable to shareholders was $5,198,000, compared to $4,507,000 in the previous year[16] - Total revenue for the six months ended June 30, 2022, was $139,746,000, compared to $139,544,000 for the same period in 2021, representing a slight increase of 0.14%[33] - The total comprehensive income for the six months ended June 30, 2022, was $5,198,000, compared to $(2,214,000) in the same period of 2021, indicating a turnaround in profitability[33] - The company reported a pre-tax profit of $98.27 million for the six months ended June 30, 2022, compared to $60.39 million in the same period of 2021, representing a 63% increase[65] - Profit attributable to shareholders increased by approximately $3.1 million or 73.2% to about $7.4 million, with earnings per share rising from $0.38 to $0.66[107] Assets and Liabilities - As of June 30, 2022, total assets amounted to $145,328,000, slightly down from $146,809,000 at the end of 2021[21] - Current liabilities decreased to $39,548,000 from $43,972,000, indicating improved liquidity management[21] - Non-current assets totaled $45,173,000, down from $54,236,000, indicating a reduction in long-term investments[18] - The company’s total assets as of June 30, 2022, were reported at $138,310,000, slightly up from $138,108,000 as of December 31, 2021[35] - Trade receivables increased to $52,831,000 as of June 30, 2022, from $35,762,000 as of December 31, 2021, representing a growth of 47.8%[75] - The total amount of trade receivables factored to a bank was $15,939,000, down from $19,132,000 as of December 31, 2021, indicating a decrease in receivables management[79] - The company's trade payables as of June 30, 2022, were $13,400,000, a decrease from $20,315,000 as of December 31, 2021, reflecting improved cash flow management[82] Cash Flow - The company reported a basic and diluted earnings per share of 0.66 cents, compared to 0.38 cents in the previous year[17] - Operating cash flow for the six months ended June 30, 2022, was $1,207,000, a significant improvement from a cash outflow of $(5,933,000) in the same period of 2021[38] - The company’s cash flow from operating activities improved significantly, indicating better operational performance and cash management strategies[38] - Cash and cash equivalents at the end of June 30, 2022, were $36,521,000, up from $31,454,000 at the end of June 30, 2021, reflecting a year-over-year increase of 16.5%[41] - The company’s financing costs for the six months ended June 30, 2022, were $227,000, slightly down from $240,000 in the same period of 2021[64] - The company reported a decrease in financing cash flow net amount to $(6,409,000) for the six months ended June 30, 2022, compared to $(11,358,000) in the same period of 2021, showing improved financing efficiency[38] Market and Revenue Segments - Revenue from the outdoor and sports bags segment reached $86.03 million, up 41% from $61.03 million in the previous year[58] - The company generated $54.87 million in revenue from the U.S. market, significantly up from $29 million in the previous year, marking an increase of 89%[58] - The company’s total revenue from the Belgium market was $15.50 million, up from $11.12 million in the previous year, reflecting a 39% increase[58] - The revenue from the outdoor and sports category was $86.0 million, accounting for 69.1% of total revenue, with a sales volume of 8.3 million units[105] Expenses and Investments - The sales cost for the period was approximately $100.2 million, an increase of about $37.8 million or 60.6% compared to approximately $62.4 million in the same period of 2021[105] - Administrative expenses for the period were approximately $8.5 million, remaining stable compared to the same period last year[107] - Sales and distribution expenses increased by approximately $1.5 million or 26.6% to about $7.0 million, primarily due to increased shipment volumes[107] - Capital expenditures for the period amounted to $1.0 million, up from $0.7 million in the previous year, mainly for the acquisition of property, plant, and equipment[108] - The company purchased property, plant, and equipment amounting to $909,000 during the period, significantly higher than $413,000 in the same period of 2021[74] Dividends and Shareholder Returns - The company paid dividends of $(4,996,000) during the six months ended June 30, 2022, compared to $(10,098,000) in the same period of 2021, reflecting a reduction in dividend payouts[38] - The company declared and paid a final dividend of $1,427,000 for ordinary shares, equivalent to approximately $0.00013 per share, and a special dividend of $3,569,000, equivalent to approximately $0.00032 per share, compared to $1,443,000 and $8,655,000 respectively in 2021[71] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022, compared to no interim dividend declared for the same period in 2021[71] Strategic Focus and Future Outlook - The company plans to continue focusing on market expansion and product development to sustain growth momentum[7] - The company is cautiously optimistic about long-term growth in its manufacturing business, despite inflation and interest rate hikes creating uncertainty in consumer spending[102] - The company is actively seeking opportunities to reposition its industrial facility in Panyu, Guangzhou, as a technology industrial park with international quality and low-carbon standards[102] - The company continues to focus on expanding its market presence and enhancing product offerings, although specific new products or technologies were not detailed in the report[44] Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[143] - The audit committee has reviewed the unaudited interim financial results for the six months ending June 30, 2022, ensuring compliance with applicable accounting standards[143] - The report indicates that there are no undisclosed interests or positions held by directors or senior management in the company's shares as of June 30, 2022[134] - The company did not engage in any purchase, sale, or redemption of its listed securities during the reporting period[142] Employee and Management Information - As of June 30, 2022, the group had approximately 7,400 employees, with compensation and benefits aligned with market levels[113] - The total compensation for key management personnel was $637,000 for the six months ended June 30, 2022, slightly up from $634,000 in the same period of 2021[90] - The company has adopted a stock option plan effective from July 13, 2018, for a duration of ten years to incentivize qualified individuals and retain talent[128] - The company aims to attract and retain experienced personnel through the stock option plan, enhancing overall performance and growth[128] - No stock options have been granted or exercised by directors or senior management during the reporting period[140]

Financial Performance - Revenue for 2021 was $146.673 million, a decrease of approximately 6.0% compared to 2020's $156.022 million[8] - Gross profit for 2021 was $31.267 million, with a gross margin of 21.3%, up from 19.9% in 2020[8] - Net profit for 2021 increased to $3.902 million, compared to $2.989 million in 2020[8] - Total assets decreased to $190.781 million in 2021 from $192.610 million in 2020[8] - Total revenue for the year decreased to approximately $146.7 million, a decline of about $9.3 million or 6.0% compared to approximately $156.0 million in 2020[42] - Total sales volume decreased from approximately 18.7 million units in 2020 to about 16.9 million units, representing a reduction of approximately 1.8 million units or 9.6%[42] - Administrative expenses were approximately $17.1 million, a decrease of about $2.0 million or 10.5% compared to approximately $19.1 million in 2020[43] - Sales and distribution expenses increased by approximately $2.0 million or 21.7% to about $11.2 million, driven by rising global shipping costs[46] - Net profit attributable to shareholders for the year was approximately $3.9 million, an increase of about $0.9 million or 30.5% compared to approximately $3.0 million in 2020[46] - Earnings per share for the year was $0.35, compared to $0.27 in 2020[46] Management and Leadership - Yang Shujian has over 36 years of experience in the manufacturing industry and has been with the group since 1985[17] - Yang Shujia has over 38 years of experience in the manufacturing industry and is responsible for quality control functions in the China factories[18] - Yang Hong has been with the group since January 2000 and oversees the retail business and projects[22] - The company has a strong management team with members having extensive experience in finance and risk management[23][27] - The group is involved in various subsidiaries, indicating a diversified business structure[24] - The company has been focusing on overall management and strategic development across its subsidiaries[24] - Yang Shujian was appointed as the chairman of the board in December 2017, indicating a leadership transition[17] - The management team includes independent non-executive directors with significant experience in finance and business consulting[26][27] - The group has been expanding its operational capabilities through strategic appointments and management roles[22][24] Operational Strategy - The company plans to transform its Panyu property into a technology industrial park and high-value innovation incubator, leveraging its strategic location[12] - The company has shifted production capacity strategically from China to Vietnam and Cambodia to enhance efficiency[12] - The group aims to accelerate capacity enhancement and shorten delivery times for customer orders as the Vietnam production base gradually resumes operations[40] - The group is focused on expanding its customer base to attract well-known brand owners and optimize existing capacity for improved profitability[40] - The multi-regional manufacturing platform allows the group to benefit from favorable import tariffs and international trade policies[39] - The group has established a multi-regional manufacturing platform consisting of production facilities in China, Vietnam, and Cambodia[39] Economic Outlook - The company is optimistic about long-term growth in manufacturing despite challenges posed by the COVID-19 pandemic[11] - The group remains cautiously optimistic about global economic recovery amid ongoing risks related to labor supply and rising transportation costs[40] - The group experienced a significant rebound in customer sales orders in the second half of the year despite a slow recovery in the first half[39] - The Vietnam production base was temporarily closed during the third quarter due to local government pandemic measures, negatively impacting performance[39] - The group will continue to monitor the situation closely and work with partners to minimize impacts from the pandemic[40] Financial Position and Capital Management - As of December 31, 2021, the company had cash and cash equivalents of approximately $50.6 million with no external borrowings, resulting in a debt-to-equity ratio of zero[47] - Capital expenditures for the year amounted to $0.9 million, primarily due to the acquisition of property, plant, and equipment[47] - The company plans to enhance its operational funding and liquidity by reallocating unutilized IPO proceeds[63] - The company's available distributable reserves as of December 31, 2021, were USD 68.7 million, with USD 5.0 million proposed for dividends[70] Corporate Governance - The board of directors includes both executive and non-executive members, with specific remuneration adjustments proposed[76][78] - The company has established three committees: the audit committee, remuneration committee, and nomination committee, each with specific written terms of reference[160] - The audit committee is responsible for monitoring the integrity of the company's financial statements and reviewing significant financial reporting judgments[162] - The company has adopted a board diversity policy, considering various measurable targets such as gender, age, and professional experience in selecting board candidates[145] - The board consists of a balanced composition of executive, non-executive, and independent non-executive directors, ensuring effective leadership and independent decision-making[141] - The company has established a code of conduct for directors' securities transactions, ensuring compliance with the standards set forth in the listing rules[140] - The company has confirmed compliance with the disclosure requirements under the Listing Rules[126] - The company has maintained sufficient public float throughout the year and as of the date of this report[131] Risk Management - The company has implemented a whistleblowing policy to encourage employees to report any misconduct or unethical business practices without fear of retaliation[188] - The company adopted a corporate risk management policy to address significant risks related to its business objectives and to evaluate emerging risks[189] - The board has reviewed and confirmed the adequacy of resources, qualifications, and training of staff involved in accounting, financial reporting, and internal audit functions[183] - The audit committee reviewed the internal control systems and recommended improvements to the board for effective risk management[165] - The board has committed to maintaining a robust and effective risk management and internal control system to protect shareholder interests and group assets[180] Employee and Stakeholder Relations - The company expressed gratitude to employees, shareholders, customers, suppliers, and stakeholders for their support during the past year[14] - The company has a commitment to quality assurance policies and product production procedures[18] - The company has engaged an external verification service provider to conduct independent reviews of its internal control systems and report findings to the board[190] Shareholder Information - As of December 31, 2021, the total issued share capital was HKD 11,200,000, comprising 1,120,000,000 shares[68] - As of December 31, 2021, Prosperous BVI holds 588,000,000 shares, representing 52.5% of the company's equity[91] - The largest customer contributed 27.6% of sales, with the top five customers accounting for 87.9% of total sales[74] - The largest supplier accounted for 6.6% of purchases, while the top five suppliers collectively represented 19.8%[74]

Financial Performance - For the six months ended June 30, 2021, the company reported revenue of $81,432,000, a decrease of 17.3% compared to $98,493,000 for the same period in 2020[7]. - Gross profit for the same period was $19,061,000, down from $20,544,000, reflecting a gross margin of 23.4%[7]. - The net profit attributable to shareholders for the six months was $4,279,000, a decline of 15% from $5,030,000 in the prior year[7]. - The company reported total comprehensive income of $4,507,000, compared to $8,193,000 in the same period last year, indicating a significant decrease[10]. - Total revenue for the six months ended June 30, 2021, was $81,432,000, compared to $98,493,000 for the same period in 2020, representing a decrease of approximately 17.3%[34]. - Revenue from the United States market was $29,000,000 for the six months ended June 30, 2021, down from $35,405,000 in 2020, a decline of about 18.5%[36]. - Other income and net gains totaled $1,041,000 for the six months ended June 30, 2021, compared to $1,129,000 in 2020, reflecting a decrease of approximately 7.8%[38]. - The cost of goods sold for the six months ended June 30, 2021, was $60,394,000, down from $75,674,000 in 2020, indicating a reduction of about 20.1%[41]. - The group reported a total tax expense of $918,000 for the six months ended June 30, 2021, compared to $712,000 in 2020, an increase of approximately 28.9%[44]. - The company's net profit attributable to shareholders decreased by approximately $0.7 million or 14.9% to about $4.3 million[70]. Cash Flow and Assets - Current assets as of June 30, 2021, totaled $128,874,000, down from $139,434,000 at the end of 2020[12]. - The company's cash and bank balances decreased to $64,938,000 from $82,523,000, reflecting a reduction of 21.4%[12]. - The net cash flow from operating activities for the six months ended June 30, 2021, was $(5,933,000), compared to $7,974,000 for the same period in 2020, indicating a significant decrease in cash flow[21]. - The net cash flow from investing activities was $8,438,000 for the six months ended June 30, 2021, down from $12,720,000 in the previous year, reflecting a decrease of approximately 33.5%[21]. - The company reported a total cash and cash equivalents balance of $31,454,000 as of June 30, 2021, compared to $56,770,000 at the end of June 2020, showing a decline of about 44.2%[21]. - The company’s retained earnings as of June 30, 2021, were $82,311,000, down from $90,198,000 as of June 30, 2020, indicating a decrease of approximately 8.8%[17]. - Cash and cash equivalents amounted to approximately $64.9 million as of June 30, 2021, with no external borrowings, resulting in a capital debt ratio of zero[71]. Equity and Liabilities - As of June 30, 2021, the total equity attributable to shareholders was $139,214,000, a decrease from $144,805,000 as of December 31, 2020, representing a decline of approximately 3.7%[16]. - Total liabilities decreased to $33,197,000 from $39,951,000, indicating a reduction of 16.8%[12]. - The company’s total liabilities as of June 30, 2021, were not explicitly stated but can be inferred to have increased given the decrease in total equity[16]. Operational Focus and Strategy - The company plans to focus on market expansion and new product development to drive future growth[6]. - The company continues to focus on optimizing existing capacity and streamlining production processes to enhance profitability amid slow sales growth[64]. - The group operates a single business segment focused on the production and sale of sports bags, handbags, and luggage, with no separate segment reporting[31]. - The company is primarily engaged in the manufacturing and sale of sports bags, handbags, and luggage, indicating a focus on consumer goods[23]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial results for the six months ending June 30, 2021[106]. - The audit committee confirmed that the financial statements comply with applicable accounting standards and have made adequate disclosures[106]. - The company has established an audit committee to enhance corporate governance and protect group assets[106]. - The chairman of the audit committee is Mr. Gao Shaode, who oversees the independent review of the group's financial reporting processes[106]. Shareholder Information - The major shareholder, Prosperous BVI, holds 588 million shares, representing approximately 52.5% of the company's equity[99]. - Prosperous BVI holds 588,000,000 shares of the company, with ownership percentages distributed among various individuals[101]. - Great Pacific, a wholly-owned subsidiary of the company, owns 252,000,000 shares, making the company the beneficial owner of these shares[102]. - 宝成工业股份有限公司 holds a 51.11% stake in the company through its subsidiaries, indicating significant ownership influence[102]. Market Conditions and Risks - The company faced foreign exchange risk as procurement and operating costs were mainly denominated in RMB and VND, while most sales were in USD[79]. - The group expects to continue monitoring the impact of market conditions and regulatory changes on its financial performance moving forward[30].