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].

| --- | --- | |---------------------------------------------------|-------| | | | | 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公司） 股份代號 ：1731 | 2020 | 目錄 目錄 公司資料 2 財務摘要 3 主席報告 4 董事及高級管理層履歷 5 管理層討論及分析 10 董事會報告 14 企業管治報告 31 環境、社會與管治報告 45 獨立核數師報告 60 綜合損益及其他全面收入表 66 綜合財務狀況表 67 綜合權益變動表 68 綜合現金流量表 69 財務報表附註 71 五年財務概要 140 1 其利工業集團有限公司 公司資料 公司資料 執行董事 楊樹堅先生（主席） 楊樹佳先生 楊宏先生 非執行董事 鄒志明先生 蔡乃湧先生 授權代表 楊宏先生 張瀟女士 核數師 安永會計師事務所 執業會計師及註冊公眾利益實體核數師 註冊辦事處 Cricket Square, Hutchins Drive P.O. Box 26 ...

Financial Performance - Revenue for the six months ended June 30, 2020, was $98,493,000, a decrease of 20.2% compared to $123,413,000 for the same period in 2019[6] - Gross profit for the same period was $20,544,000, down 21.1% from $26,026,000 in 2019[6] - Profit attributable to shareholders for the six months was $5,030,000, an increase of 23.7% from $4,067,000 in 2019[6] - Total comprehensive income attributable to shareholders was $8,193,000, compared to $4,165,000 in the previous year, reflecting a significant increase[9] - The total comprehensive income for the six months ended June 30, 2020, was $90,198,000, compared to $142,638,000 for the same period in 2019[15] - The company reported a basic and diluted earnings per share of 0.45 cents for the period, compared to 0.36 cents in 2019[9] - The company’s weighted average number of ordinary shares issued remained stable at 1,120,000,000 shares for both periods[48] - The net profit attributable to shareholders increased by approximately $0.9 million or 22.0% to about $5.0 million for the period[72] Assets and Liabilities - Non-current assets as of June 30, 2020, totaled $54,535,000, up from $52,828,000 at the end of 2019[11] - Current assets decreased to $130,839,000 from $135,734,000 at the end of 2019, primarily due to a reduction in inventory[11] - Current liabilities decreased significantly to $33,973,000 from $45,704,000 at the end of 2019, indicating improved liquidity[11] - Trade receivables at the end of June 30, 2020, were $46,394,000, an increase from $42,252,000 at the end of December 31, 2019, representing a growth of about 9.1%[52] - Trade payables at the end of June 30, 2020, were $9,155,000, a decrease from $17,620,000 at the end of December 31, 2019, indicating a reduction of approximately 48.0%[56] - The company’s retained earnings as of June 30, 2020, were $85,168,000, compared to $134,445,000 at the end of 2019[15] Cash Flow - For the six months ended June 30, 2020, the company reported a net cash flow from operating activities of $7,974,000, compared to a negative cash flow of $(15,305,000) for the same period in 2019[19] - The company achieved a net cash flow from investing activities of $12,720,000, significantly up from $2,063,000 in the prior year[19] - As of June 30, 2020, the company's cash and cash equivalents increased to $56,770,000 from $36,808,000 at the end of 2019[19] - The company had cash and cash equivalents of approximately $56.8 million as of June 30, 2020, with no external borrowings, resulting in a capital debt ratio of zero[73] Expenses and Costs - The cost of goods sold for the six months ended June 30, 2020, was $75,674 thousand, compared to $95,428 thousand in 2019, indicating a reduction of 20.7%[42] - Administrative expenses were approximately $9.9 million, a decrease of about $3.0 million or 23.3% from $12.9 million in the same period last year[70] - Financing costs for the six months ended June 30, 2020, were $290 thousand, slightly down from $300 thousand in the previous year[41] - Total tax expenses for the period amounted to $712,000, down from $1,680,000 in the previous year, indicating a decrease of about 57.6%[45] Market and Revenue Breakdown - Revenue from outdoor and sports bags was $71,445 thousand, down 11.7% from $80,933 thousand in the previous year[35] - Revenue from the United States market decreased to $35,405 thousand, a decline of 31.4% from $51,671 thousand in 2019[37] - Total customer contract revenue for the six months ended June 30, 2020, was $98,493 thousand, a decrease of 20.2% compared to $123,413 thousand in 2019[35] Investments and Capital Expenditures - The company invested $550,000 in property, plant, and equipment during the six months ended June 30, 2020[19] - Capital expenditures for the six months ended June 30, 2020, were $0.6 million, primarily due to the acquisition of property, plant, and equipment[73] - The group reported a pre-tax profit of $1,300 thousand from research and development costs for the six months ended June 30, 2020[42] Corporate Governance and Future Outlook - The company plans to continue focusing on market expansion and new product development to drive future growth[6] - The company continues to monitor the impact of the COVID-19 pandemic on its operations and is prepared to adapt its strategies accordingly[84] - The board has adopted corporate governance practices in line with the Stock Exchange's requirements, maintaining high standards of governance[89] Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2020, compared to a total dividend of $7,134,000 for the same period in 2019[46] - Prosperous BVI holds 588,000,000 shares, representing 52.5% of the company's equity[103] - Great Pacific Investments Limited and its subsidiaries collectively own 252,000,000 shares, accounting for 22.5% of the company's equity[103]

Financial Performance - Revenue for 2019 was $223.161 million, a slight increase from $221.849 million in 2018[26] - Gross profit decreased to $47.291 million, down from $49.475 million in the previous year, resulting in a gross margin of 21.2%[26] - The company reported a net loss of $566,000 for 2019, compared to a profit of $7.370 million in 2018[26] - Total assets decreased to $188.562 million from $190.072 million in 2018[26] - Total equity fell to $134.445 million, down from $142.601 million the previous year[26] - The group's total revenue for the year was approximately $223.2 million, a slight increase of about $1.4 million or 0.6% compared to approximately $221.8 million in 2018[55] - The group reported a loss attributable to shareholders of $0.6 million for the year, compared to a profit of approximately $7.4 million in 2018, resulting in a loss per share of $0.05 compared to earnings per share of $0.76 in the previous year[58] Operational Changes - The company closed three production facilities in China, reallocating capacity to Vietnam and Cambodia as a strategic move[28] - The group terminated operations at three production plants in China and expanded production capacity in Vietnam and Cambodia, increasing the number of production lines in Cambodia from 48 to 68 by the end of 2019[51] - Following the outbreak of COVID-19 in January 2020, the group's production facilities and offices in China did not resume operations immediately after the Lunar New Year, but the impact was mitigated as most production capacity was reallocated to Vietnam and Cambodia[61] COVID-19 Impact - The operating environment for 2020 is expected to remain challenging due to the COVID-19 pandemic, although operations in Vietnam and Cambodia have not been disrupted[29] - The group anticipates that the recent COVID-19 pandemic will negatively impact its performance in 2020, although it cannot estimate the financial impact at this time[53] - The group will continue to monitor risks related to the pandemic and work closely with suppliers and customers to mitigate adverse effects[53] - The group anticipates that the COVID-19 pandemic will have adverse effects on the global economy, which will also impact its operations, and it will continue to monitor the situation closely[62] Management and Governance - The company aims to strengthen its capital structure and maintain effective corporate governance practices[29] - The management is committed to providing high-quality products and creating value for shareholders in the future[30] - The company has complied with the corporate governance code as outlined in the listing rules for the year ended December 31, 2019[162] - The board is committed to maintaining good corporate governance practices, which are deemed essential for success[163] - The company has implemented a comprehensive training program for new directors to ensure compliance with corporate governance standards[177] Shareholder Information - The board did not recommend the payment of a final dividend for the year ended December 31, 2019, compared to a final dividend of HK$0.015 and a special dividend of HK$0.035 in 2018[77] - The company has a dividend policy aimed at enhancing shareholder value, considering various financial and external factors when declaring dividends[89] - As of December 31, 2019, the company's distributable reserves amounted to USD 64.8 million[88] Employee and Management Structure - The group had approximately 8,800 employees as of December 31, 2019, down from about 10,600 employees in 2018, with compensation and benefits aligned with market levels[70] - The company has established service contracts with its executive directors, effective for three years from July 13, 2018[97] - The company has no significant management contracts or agreements related to its business operations during the year[100] Risk Management - The group faced foreign exchange risks as its procurement and operating costs were primarily denominated in RMB, VND, and USD, while most sales were in USD, with no current foreign exchange hedging policies in place[73] - The company has maintained sufficient public float throughout the year and as of the date of the board report[155] Audit and Compliance - The audit committee discussed and reviewed the group's annual performance, including accounting principles and practices adopted by the group[158] - The independent auditor, Ernst & Young, has been reappointed and confirmed compliance with relevant regulations regarding ongoing connected transactions[160] - The audit committee is tasked with monitoring the integrity of the company's financial statements and reviewing significant financial reporting judgments[185] Directors and Committees - The company has established three committees: the audit committee, remuneration committee, and nomination committee, each with specific written terms of reference[182] - The remuneration committee approved the salary increases for executive directors and senior management for the year starting January 1, 2019, based on current market conditions and performance[192] - The nomination committee is responsible for reviewing the board's structure and composition at least annually and making recommendations for changes[197]

Financial Performance - For the six months ended June 30, 2019, the company reported revenue of $123.413 million, a decrease of 2.2% from $127.187 million in the same period of 2018[7]. - Gross profit for the same period was $26.026 million, down 5.7% from $27.611 million year-over-year[7]. - The company's profit attributable to shareholders for the period was $4.067 million, a decline of 36.2% compared to $6.380 million in the prior year[7]. - Basic and diluted earnings per share were $0.36, down from $0.76 in the previous year, representing a decrease of 52.6%[7]. - The total revenue for the six months ended June 30, 2019, was approximately $123.4 million, a decrease of about $3.8 million or 3.0% compared to approximately $127.2 million for the same period in 2018[100]. - The company reported a profit attributable to shareholders of approximately $4.1 million, a decrease of about $2.3 million or 35.9% compared to approximately $6.4 million in the same period last year[103]. Assets and Liabilities - Total assets as of June 30, 2019, were $152.573 million, an increase from $143.388 million as of December 31, 2018[11]. - Current assets decreased to $132.214 million from $143.231 million at the end of 2018, reflecting a decline of 7.7%[9]. - The company's cash and cash equivalents were $36.808 million, down from $63.772 million at the end of 2018, indicating a decrease of 42.3%[9]. - Non-current assets increased to $60.876 million from $46.841 million, showing a growth of 29.9%[9]. - The total equity attributable to shareholders was $139.632 million, slightly down from $142.601 million at the end of 2018, a decrease of 2.1%[11]. - The company reported a total liability increase of $9,952,000 due to the recognition of lease liabilities[40]. Cash Flow - For the six months ended June 30, 2019, the company reported a net cash outflow from operating activities of $15,305 thousand, compared to a net outflow of $2,000 thousand for the same period in 2018[16]. - The company recorded a net cash inflow from investing activities of $2,063 thousand for the six months ended June 30, 2019, compared to a net outflow of $14,060 thousand in the prior year[16]. - The company’s cash flow from financing activities showed a net outflow of $9,167 thousand for the six months ended June 30, 2019, compared to a net outflow of $35,022 thousand in the previous year[16]. - Cash and cash equivalents as of June 30, 2019, were approximately $36.8 million, with no external borrowings, resulting in a debt-to-equity ratio of zero[104]. Revenue Breakdown - Revenue from the United States market was $51,671,000, down from $53,679,000 in 2018, indicating a decrease of about 3.7%[64]. - Revenue from the China market increased to $21,708,000 from $20,041,000, reflecting a growth of approximately 8.3%[64]. - The group reported other income and net gains of $1,425,000 for the six months ended June 30, 2019, compared to $1,080,000 in 2018, marking an increase of about 32%[66]. Expenses - The cost of goods sold for the six months ended June 30, 2019, was $95,428,000, a slight decrease from $97,454,000 in 2018, representing a reduction of about 2.1%[69]. - Administrative expenses for the period were approximately $12.9 million, a slight increase from $12.7 million in the same period last year, primarily due to one-time operational costs of approximately $2.9 million related to the termination of production bases[103]. - Research and development costs for the six months ended June 30, 2019, were $1,787,000, down from $1,911,000 in 2018, reflecting a decrease of about 6.5%[69]. Shareholder Information - The company declared an interim dividend of 1.5 HK cents per ordinary share, equivalent to approximately $0.00019, and a special dividend of 3.5 HK cents per ordinary share, totaling $2,140,000, compared to no dividends declared in the same period of 2018[74][75]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2019, compared to no dividends in the same period of 2018[75]. - Major shareholders include Prosperous BVI, holding 588,000,000 shares, representing 52.5% of the company's equity[137]. Capital Expenditures - Capital expenditures for property, plant, and equipment amounted to approximately $2,677,000, a decrease of about 58.5% from $6,440,000 in the same period of 2018[78]. - The company aims to enhance manufacturing capacity and flexibility in Cambodia, with 67.0% of the proceeds (HKD 135.5 million) allocated for this purpose[121]. Accounting Standards - The adoption of HKFRS 16 resulted in an increase in right-of-use assets by $22,554,000 and a decrease in property, plant, and equipment by $9,313,000[40]. - The company confirmed that the right-of-use assets will be depreciated on a straight-line basis over the shorter of the estimated useful life or the lease term[49]. - The transition to HKFRS 16 did not include initial direct costs in the measurement of right-of-use assets[41]. Management and Governance - The Audit Committee, consisting of three independent non-executive directors, has reviewed the interim financial results for the six months ending June 30, 2019, ensuring compliance with applicable accounting standards[144].