Financial Performance - Revenue decreased by approximately RMB 59.9 million or about 11.8% to RMB 449.6 million for the six months ended June 30, 2023, compared to RMB 509.5 million for the same period in 2022[3] - Gross profit fell by approximately RMB 22.6 million or about 32.1% to RMB 47.9 million for the six months ended June 30, 2023, down from RMB 70.5 million in the prior year[3] - Net profit decreased by approximately RMB 22.2 million or about 73.5% to RMB 8.0 million for the six months ended June 30, 2023, compared to RMB 30.2 million for the same period in 2022[3] - Basic earnings per share for the six months ended June 30, 2023, was approximately RMB 1.34, down from RMB 4.77 in the same period last year[5] - Other income decreased to RMB 2.2 million for the six months ended June 30, 2023, from RMB 2.9 million in the same period last year[5] - The company reported a net profit of RMB 8,018,000 for the six months ended June 30, 2023, a significant decrease of 72.0% compared to RMB 28,631,000 for the same period in 2022[22] - Basic earnings per share for the six months ended June 30, 2023, were RMB 8.018, down from RMB 28.631 in the previous year[22] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 547.2 million, compared to RMB 539.6 million as of December 31, 2022[6] - Current liabilities were RMB 299.2 million as of June 30, 2023, compared to RMB 288.3 million as of December 31, 2022[7] - The company reported a decrease in inventory to RMB 151.6 million as of June 30, 2023, from RMB 189.0 million as of December 31, 2022[6] - The company’s net assets increased to RMB 264.7 million as of June 30, 2023, from RMB 259.1 million as of December 31, 2022[8] - Trade receivables as of June 30, 2023, were RMB 209,477,000, an increase from RMB 144,553,000 as of December 31, 2022[23] - Trade payables and notes payable amounted to RMB 136.7 million as of June 30, 2023, compared to RMB 139.3 million as of December 31, 2022[26] - The group's total interest-bearing bank borrowings amounted to approximately RMB 299.2 million, an increase from approximately RMB 288.3 million as of December 31, 2022[45] - The group's cash and bank balances as of June 30, 2023, were approximately RMB 33.1 million, down from approximately RMB 61.4 million as of December 31, 2022[44] - The asset-to-liability ratio as of June 30, 2023, was approximately 66.0%, slightly down from approximately 66.3% as of December 31, 2022[43] Operational Insights - Sales of fabric products amounted to RMB 321,566,000, down from RMB 340,534,000, representing a decline of 5.7% year-over-year[14] - Revenue from sales of dyed and processed services was RMB 20,255,000, slightly down from RMB 20,885,000, a decrease of 3.0%[14] - Revenue from external customers in China increased to RMB 428,865,000, up 3.9% from RMB 413,223,000 in the previous year[16] - The company recorded an increase in customer orders in the first half of 2023, indicating a cautious optimism for the second half of the year[31] - The company plans to invest in new machinery and equipment to improve production efficiency and reduce costs, which is expected to enhance product quality and expand capacity[31] Expenses and Costs - Administrative expenses increased to approximately RMB 21.1 million for the six months ended June 30, 2023, from RMB 17.3 million for the same period in 2022, mainly due to increased depreciation of right-of-use assets[37] - Financial costs rose to approximately RMB 7.1 million for the six months ended June 30, 2023, from RMB 3.7 million for the same period in 2022, attributed to an increase in loan principal and interest[38] Dividend and Corporate Governance - The board of directors decided not to recommend the payment of an interim dividend for the six months ended June 30, 2023[3] - The company did not declare any interim dividends for the six months ended June 30, 2023, and 2022[21] - The group has not proposed any interim dividend for the six months ended June 30, 2023[51] - The company has not appointed a CEO as of now, and the roles of the Chairman and CEO are currently not separated[52] - All directors confirmed compliance with the Securities Trading Standards during the six months ending June 30, 2023[53] - The company and its subsidiaries did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2023[54] - The Audit Committee reviewed the unaudited financial performance for the six months ending June 30, 2023, and there were no disagreements on accounting treatment between the Board and the Audit Committee[55] - The interim results announcement and report for the six months ending June 30, 2023, will be published on the Stock Exchange and the company's website[56] Employment and Future Plans - The group employed 508 full-time employees as of June 30, 2023, an increase from 482 employees as of December 31, 2022[46] - The group plans to extend the expected timeline for utilizing unutilized net proceeds from its listing for acquiring a company with existing production facilities in Jiangsu Province, China, to December 31, 2024[50] - The total net proceeds received from the listing, after deducting underwriting commissions and expenses, amounted to approximately HKD 81.9 million[48]

Financial Performance - For the year ended December 31, 2022, the company reported revenue of approximately RMB 1,060.2 million, an increase of about 30.3% compared to RMB 813.8 million for the year ended December 31, 2021[9]. - Gross profit for the year ended December 31, 2022, was approximately RMB 142.9 million, up about 24.2% from RMB 115.1 million in the previous year[14]. - The company's net profit for the year ended December 31, 2022, increased to approximately RMB 49.9 million from RMB 35.2 million in 2021, representing a growth of about 41.5%[14]. - The gross profit margin slightly decreased to approximately 13.5% in 2022 from 14.1% in 2021[14]. - Other income decreased from approximately RMB 10.2 million to RMB 8.3 million, primarily due to a significant reduction in government subsidies[31]. - Administrative expenses increased from approximately RMB 40.0 million to RMB 45.8 million, mainly due to the acquisition of machinery and equipment[33]. - The total employee cost for the group for the year ended December 31, 2022, was approximately RMB 64.3 million[52]. - The company reported a final dividend of HKD 0.03 per share for the year ended December 31, 2022, totaling approximately HKD 18.0 million, pending shareholder approval[77]. - As of December 31, 2022, the company has a distributable reserve of RMB 234.5 million, with RMB 16.0 million proposed as the final dividend payment for the year[98]. Assets and Liabilities - Total assets as of December 31, 2022, were RMB 768.4 million, compared to RMB 673.1 million in 2021, reflecting a growth of approximately 14.1%[10]. - The total liabilities increased to RMB 509.3 million in 2022 from RMB 444.8 million in 2021, marking an increase of about 14.5%[10]. - The group's debt-to-asset ratio as of December 31, 2022, was approximately 66.3%, an increase from 66.1% in 2021, primarily due to increased bank borrowings[45]. - As of December 31, 2022, the group had bank balances and cash of approximately RMB 61.4 million, up from RMB 32.5 million in 2021[46]. - The group had approximately RMB 143.0 million of assets pledged as collateral for bank financing as of December 31, 2022, compared to RMB 76.4 million in 2021[48]. Business Strategy and Outlook - The company plans to enhance its sales and marketing efforts in China to capture opportunities from the recovering domestic demand[15]. - The company is exploring the feasibility of establishing production facilities in Bangladesh to benefit from lower production costs and geographical advantages[15]. - The company aims to install automation systems in its production processes to reduce operational costs and improve production efficiency and product quality[17]. - The company remains optimistic about its business outlook for 2023, driven by increasing disposable income and the growth of the Chinese apparel retail market[15]. Corporate Governance - The board consists of eight directors, including five executive directors and three independent non-executive directors, ensuring a balanced governance structure[159]. - The company has established three board committees: the audit committee, the remuneration committee, and the nomination committee, to enhance oversight and governance[157]. - The independent non-executive directors have confirmed their independence according to the guidelines, ensuring unbiased oversight[165]. - The board has mechanisms in place to provide independent views and opinions, with at least one-third of the board being independent non-executive directors[166]. - The company has established a disclosure policy to guide directors and senior management in handling confidential information and responding to inquiries[199]. Employee and Labor Relations - The company employed a total of 499 employees, with 498 located in China and 1 in Hong Kong[88]. - The company has not experienced any significant labor disputes or operational interruptions due to labor issues during the reporting period[90]. - The employee gender ratio is 330 males to 152 females, indicating a workforce diversity[188]. - The company aims to promote gender diversity in recruitment to cultivate potential female board successors[186]. Acquisitions and Investments - The company completed the acquisition of 100% equity in Xionglian (Changzhou) Textile Printing and Dyeing Co., Ltd. for RMB 80.0 million on January 14, 2022[37]. - The group completed an acquisition on October 27, 2022[39]. - The company aims to acquire a company with existing production facilities in Jiangsu, China, with a revised timeline for completion by December 31, 2023[147]. - The company will continue to seek suitable acquisition targets that align with its business objectives and shareholder interests[150]. Environmental and Social Responsibility - The company’s environmental policies and measures have effectively minimized adverse impacts on the surrounding environment[85]. - The company upgraded its wastewater treatment system to enhance efficiency and reduce costs, which did not cause any significant operational disruptions[85]. - No charitable donations were made by the group during the year ended December 31, 2022[144]. Risk Management - The board is responsible for evaluating and determining the nature and extent of risks associated with achieving the company's strategic objectives[194]. - The company has implemented a whistleblowing policy for employees and stakeholders to report misconduct confidentially[196].

Financial Performance - Revenue increased by approximately RMB 246.4 million or about 30.3% to approximately RMB 1,060.2 million for the year ended December 31, 2022, compared to RMB 813.8 million for the year ended December 31, 2021[3]. - Gross profit rose by approximately RMB 27.8 million or about 24.2% to approximately RMB 142.9 million for the year ended December 31, 2022, from RMB 115.1 million for the previous year[3]. - Net profit for the year ended December 31, 2022, was approximately RMB 49.9 million, an increase of approximately RMB 14.7 million or about 41.8% from RMB 35.2 million in the previous year[3]. - Basic and diluted earnings per share for the year ended December 31, 2022, were approximately RMB 8.32, compared to RMB 5.86 for the year ended December 31, 2021[5]. - The group's revenue for the year was RMB 1,060,218 thousand, an increase from RMB 813,810 thousand in the previous year, representing a growth of approximately 30.3%[14]. - The net profit for the year ended December 31, 2022, was RMB 49,931,000, compared to RMB 35,167,000 for 2021, representing a year-over-year increase of approximately 42.1%[23]. - The annual profit increased by approximately RMB 14.7 million or about 41.8%, from approximately RMB 35.2 million for the year ended December 31, 2021, to approximately RMB 49.9 million for the year ended December 31, 2022[46]. Dividends and Shareholder Information - The board has proposed a final dividend of HKD 0.03 per share for the year ended December 31, 2022, subject to shareholder approval[3]. - The company declared a final dividend of HKD 0.03 per share for the year ended December 31, 2022, totaling HKD 18,000,000, consistent with the previous year[22]. - The board of directors has proposed a final dividend of HKD 0.03 per share for the year ended December 31, 2022, subject to approval at the annual general meeting on June 28, 2023[60]. - The company will suspend shareholder registration from June 23 to June 28, 2023, to determine eligibility for attending the annual general meeting[61]. - The company will also suspend shareholder registration from July 4 to July 6, 2023, to determine eligibility for receiving the final dividend[61]. Assets and Liabilities - Total assets as of December 31, 2022, were RMB 539.6 million, compared to RMB 509.8 million as of December 31, 2021[6]. - Current liabilities decreased to RMB 491.8 million as of December 31, 2022, from RMB 429.7 million as of December 31, 2021[6]. - Non-current assets increased to RMB 228.8 million as of December 31, 2022, from RMB 163.4 million as of December 31, 2021[6]. - As of December 31, 2022, the company's debt-to-asset ratio was approximately 66.3%, an increase from about 66.1% in 2021, mainly due to increased bank borrowings[50]. - The company had approximately RMB 143.0 million of assets pledged as collateral for bank financing as of December 31, 2022, compared to approximately RMB 76.4 million in 2021[52]. Operational Highlights - The company continues to focus on expanding its market presence and enhancing its product offerings through ongoing research and development initiatives[9]. - Sales of plain fabric amounted to RMB 811,752 thousand, up from RMB 592,310 thousand, reflecting a growth of about 37.1% year-over-year[14]. - Revenue from sales of lamp core velvet materials increased to RMB 202,099 thousand from RMB 176,602 thousand, marking a growth of approximately 14.4%[14]. - The group generated external customer revenue of RMB 781,805 thousand from China, compared to RMB 612,826 thousand in the previous year, indicating a growth of around 27.6%[16]. - The company plans to enhance sales and marketing efforts in China to capture opportunities from the recovering domestic demand[34]. - The company is exploring the feasibility of establishing production facilities in Bangladesh to align with international clothing brands shifting production to Southeast Asia[35]. - The company aims to install automation systems in its production processes to reduce operating costs and improve production efficiency and product quality[35]. Financial Costs and Expenses - Financial costs for the year were RMB 11,054 thousand, compared to RMB 6,031 thousand in the previous year, showing an increase of approximately 83.9%[19]. - The income tax expense for the year was RMB 11,970 thousand, up from RMB 6,199 thousand, reflecting an increase of about 93.5%[19]. - Administrative expenses increased from approximately RMB 40.0 million in 2021 to RMB 45.8 million in 2022, mainly due to the acquisition of machinery and equipment[42]. - The actual income tax rate decreased from approximately 28.4% for the year ended December 31, 2021, to about 21.1% for the year ended December 31, 2022, primarily due to a reduction in deferred tax items[45]. - Total employee costs for 2022 amounted to RMB 64,326,000, up from RMB 56,592,000 in 2021, indicating an increase of about 13.1%[22]. Compliance and Governance - The company has not early adopted any new Hong Kong Financial Reporting Standards that have been issued but are not yet effective, indicating a cautious approach to regulatory changes[11]. - The company has maintained compliance with all applicable corporate governance codes during the year ended December 31, 2022[63]. - The audit committee has reviewed the financial performance for the year ended December 31, 2022, and discussed risk management and internal controls with management[65]. - The company is committed to ensuring the accuracy of its financial disclosures and compliance with auditing standards[67]. - The company operates under the auditing standards of Hong Kong, ensuring rigorous review processes[67]. - The company emphasizes transparency in its financial reporting by publishing documents on public platforms[67]. - The board of directors includes a diverse group of individuals, enhancing governance and oversight[67].

Financial Performance - For the six months ended June 30, 2022, the company recorded revenue of approximately RMB 509.5 million, an increase of about 24.4% compared to approximately RMB 409.5 million for the same period in 2021[12]. - Gross profit increased by approximately 11.0% to about RMB 70.5 million for the six months ended June 30, 2022, from approximately RMB 63.5 million for the same period in 2021[17]. - Profit for the period increased by approximately 13.6% to about RMB 30.2 million for the six months ended June 30, 2022, compared to approximately RMB 26.5 million for the same period in 2021[12]. - Profit before tax increased to RMB 39,995 thousand, compared to RMB 35,627 thousand in the previous year, reflecting a growth of 10.5%[55]. - Net profit for the period was RMB 30,170 thousand, a rise of 13.3% from RMB 26,531 thousand in the prior year[55]. - Basic and diluted earnings per share were RMB 4.77, compared to RMB 4.42 for the same period last year[55]. Cost and Expenses - Sales costs rose by approximately 26.9% to about RMB 439.0 million for the six months ended June 30, 2022, from approximately RMB 346.0 million for the same period in 2021[16]. - Sales and distribution expenses increased from approximately RMB 119 million for the six months ended June 30, 2021, to approximately RMB 124 million for the six months ended June 30, 2022, primarily due to rising transportation costs[19]. - Administrative expenses decreased from approximately RMB 197 million for the six months ended June 30, 2021, to approximately RMB 173 million for the six months ended June 30, 2022, mainly due to a one-time purchase of management software valued at approximately RMB 28 million in the prior period[21]. - Financial costs rose from approximately RMB 27 million for the six months ended June 30, 2021, to approximately RMB 37 million for the six months ended June 30, 2022, attributed to an increase in average bank borrowings during the same period[22]. - Employee costs for the six months ended June 30, 2022, were approximately RMB 242 million, reflecting the costs associated with salaries, allowances, and other benefits[32]. Revenue Breakdown - Revenue for the six months ended June 30, 2022, was RMB 509,516 thousand, an increase of 24.4% from RMB 409,508 thousand in the same period of 2021[67]. - Sales of plain fabric reached RMB 340,534 thousand, up 30.0% from RMB 261,701 thousand in the prior year[67]. - Sales of corduroy fabric increased to RMB 148,097 thousand, representing a growth of 13.9% compared to RMB 130,077 thousand in 2021[67]. - Revenue from dyeing and processing services was RMB 20,885 thousand, a rise of 17.9% from RMB 17,730 thousand in the previous year[67]. - Revenue from external customers in China was RMB 413,223 thousand, a significant increase of 49.3% from RMB 276,589 thousand in the same period of 2021[70]. Assets and Liabilities - As of June 30, 2022, the company's total interest-bearing bank borrowings amounted to approximately RMB 2,915 million, an increase from approximately RMB 2,200 million as of December 31, 2021[30]. - The company's cash and bank balances were approximately RMB 1,077 million as of June 30, 2022, compared to approximately RMB 325 million as of December 31, 2021[29]. - The company's total liabilities as of June 30, 2022, were RMB 288,296,000, compared to RMB 169,393,000 as of December 31, 2021, reflecting an increase of approximately 70.0%[86]. - The total trade receivables and notes receivable as of June 30, 2022, were approximately RMB 291,395,000, compared to RMB 172,492,000 as of December 31, 2021, indicating a significant increase of approximately 68.8%[85]. - The company’s trade receivables aging analysis shows that as of June 30, 2022, RMB 198,920,000 was within 30 days, compared to RMB 115,719,000 as of December 31, 2021, representing an increase of approximately 71.7%[87]. Corporate Governance and Shareholder Information - The company maintains high standards of corporate governance to protect shareholder interests and enhance corporate value[41]. - The major shareholder, Dongyong Holdings Limited, holds 450,000,000 shares, representing 75% of the company's equity[50]. - The company has complied with all applicable provisions of the corporate governance code during the six months ended June 30, 2022, except for a deviation regarding the separation of the roles of Chairman and CEO[42]. - The board has resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2022[39]. - The company did not declare any interim dividends for the six months ended June 30, 2022, compared to RMB 12,000,000 declared for the same period in 2021[80]. Future Outlook and Strategic Plans - The company plans to enhance the design and development of eco-friendly textile products in response to increasing customer awareness of sustainability[14]. - The company expects consumer activity to become more active, driving demand in the apparel and textile industry in the second half of 2022[14]. - The company aims to leverage its strong reputation and diverse product portfolio to enhance competitiveness and deliver long-term returns to shareholders[14]. - The company plans to upgrade and improve existing production lines and technical capabilities, expanding capacity and product range with an allocation of HKD 18.9 million[37]. Acquisitions and Investments - The company entered into a share transfer agreement to acquire 100% equity of Xionglian (Changzhou) Textile Printing and Dyeing Co., Ltd. for RMB 800 million, with the completion of the acquisition subject to certain conditions[25]. - The acquisition of a target company holding properties was allocated HKD 32.8 million, fully utilized[37]. - The acquisition of a company with existing production facilities in Jiangsu, China, was allocated HKD 22.0 million, which remains unutilized until December 31, 2022[37].

Financial Performance - For the year ended December 31, 2021, the company reported revenue of approximately RMB 813.8 million, an increase of about 5.5% compared to RMB 771.5 million for the year ended December 31, 2020[7]. - The gross profit margin for the year ended December 31, 2021, was approximately 14.1%, a decrease of about 2.3 percentage points from the previous year[11]. - The company's net profit attributable to shareholders for the year ended December 31, 2021, was RMB 35.2 million, representing an increase of approximately 7.7% from RMB 35.0 million in the previous year[11]. - Total assets as of December 31, 2021, amounted to RMB 673.1 million, an increase from RMB 565.1 million in 2020[8]. - Total liabilities as of December 31, 2021, were RMB 444.8 million, compared to RMB 356.6 million in 2020[8]. - The group's revenue for the year ended December 31, 2021, was approximately RMB 813.8 million, an increase of about 5.5% from approximately RMB 771.5 million for the year ended December 31, 2020[19]. - The gross profit decreased from approximately RMB 126.9 million for the year ended December 31, 2020, to approximately RMB 115.1 million for the year ended December 31, 2021, representing a decline of about 9.3%[17]. - The gross profit margin decreased from approximately 16.4% for the year ended December 31, 2020, to approximately 14.1% for the year ended December 31, 2021[17]. - The group's profit for the year decreased from approximately RMB 36.0 million for the year ended December 31, 2020, to approximately RMB 35.2 million for the year ended December 31, 2021, a decrease of about RMB 0.8 million or approximately 2.2%[27]. Market Trends and Strategy - The company continues to diversify its product offerings to meet market trends, particularly in the demand for more versatile and comfortable sportswear[11]. - The company aims to leverage opportunities in the sports leisure market driven by increasing consumer health awareness and the trend of working from home[11]. - The Chinese apparel retail market recorded positive growth in 2021, benefiting the textile industry[11]. - The group plans to diversify its product portfolio and explore opportunities in high-growth potential markets, prioritizing the sportswear market[18]. - The group has successfully applied for the status of "National Textile Product Development Base" for corduroy and knitted fabric categories, affirming its strong product development capabilities[18]. Expenses and Costs - The group's sales cost increased from approximately RMB 644.5 million for the year ended December 31, 2020, to approximately RMB 698.7 million for the year ended December 31, 2021, representing an increase of about RMB 54.2 million or approximately 8.4%[20]. - Selling and distribution expenses increased from approximately RMB 23.6 million for the year ended December 31, 2020, to approximately RMB 30.1 million for the year ended December 31, 2021, an increase of about RMB 6.5 million or approximately 27.5%[23]. - Administrative expenses decreased from approximately RMB 47.6 million for the year ended December 31, 2020, to approximately RMB 40.0 million for the year ended December 31, 2021[24]. Corporate Governance - The company has a strong management team with extensive experience in the textile and dyeing industry, including the founder and executive directors[38][39]. - The independent non-executive directors provide oversight and independent judgment to the board, enhancing corporate governance[40][41]. - The company is committed to maintaining transparency and accountability in its financial reporting and corporate governance practices[40]. - The board consists of eight members, including five executive directors and three independent non-executive directors[99]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee[98]. Environmental, Social, and Governance (ESG) Initiatives - The company has established a three-tier ESG governance structure, including a board-level ESG committee to oversee and review ESG matters[142]. - The company has committed to sustainable practices and management models, integrating ESG considerations into daily operations[142]. - The report adheres to the Hong Kong Stock Exchange's ESG reporting guidelines, ensuring accuracy and reliability of the data presented[136]. - The company has implemented a comprehensive environmental management system, achieving compliance with national standards such as GB/T 24001-2016 and ISO 14001:2015, and has been listed as a national green factory[154]. - The company has established a climate risk management framework, integrating climate change risks into its overall risk management system[184]. Employee Relations and Workforce - The company employed a total of 482 employees, with 481 located in China and 1 in Hong Kong[54]. - The company emphasizes equal employment and a discrimination-free work environment, ensuring compliance with various labor laws and regulations[189]. - The company has established a comprehensive occupational health management system, certified under OHSAS 18001:2007 and GB/T 28001-2011[198]. - The majority of employees (481) are located in mainland China, with only 1 in Hong Kong, Macau, and Taiwan[195]. - Employee turnover is 72, with a turnover rate of 12.31% for males and 20.38% for females[195].

Financial Performance - For the six months ended June 30, 2021, the company recorded revenue of approximately RMB 409.5 million, an increase of about 27.4% compared to RMB 321.4 million for the same period in 2020[19]. - The company's profit for the same period was approximately RMB 26.5 million, representing a significant increase of about 63.6% compared to the previous year's profit[16]. - The group's gross profit increased by approximately RMB 12.5 million or about 24.5% from RMB 51.0 million for the six months ended June 30, 2020, to RMB 63.5 million for the six months ended June 30, 2021[21]. - Gross profit for the same period was RMB 63,536 thousand, up 24.7% from RMB 50,985 thousand year-on-year[53]. - Net profit for the six months ended June 30, 2021, was RMB 26,531 thousand, an increase of 63.7% compared to RMB 16,237 thousand in the prior year[53]. - Basic and diluted earnings per share increased to RMB 4.42 from RMB 3.61, reflecting a 22.4% growth[53]. Revenue and Sales - Revenue for the six months ended June 30, 2021, was RMB 409,508 thousand, representing a 27.4% increase from RMB 321,433 thousand in the same period of 2020[62]. - Sales of plain fabric amounted to RMB 261,701,000, while sales of corduroy fabric were RMB 130,077,000, reflecting significant contributions to overall revenue[63]. - Revenue from external customers in China was RMB 276,589,000, up from RMB 247,221,000 in 2020, indicating a growth of 11.5%[66]. Costs and Expenses - The sales cost for the six months ended June 30, 2021, increased to approximately RMB 270.4 million, consistent with the revenue growth[20]. - Sales and distribution expenses increased from approximately RMB 8.7 million to RMB 11.9 million, mainly due to a significant rise in transportation costs[23]. - Administrative expenses increased from approximately RMB 17.7 million to RMB 19.7 million, largely due to the purchase of management software valued at approximately RMB 2.8 million[24]. - Total employee costs for the period amounted to RMB 22,476,000, up from RMB 17,332,000 in the previous year, indicating a rise of about 29.4%[73]. - The group’s total inventory recognized as expenses during the period was RMB 330,479,000, compared to RMB 255,691,000 in the previous year, indicating an increase of approximately 29.3%[73]. Government Support and Other Income - Other income rose from approximately RMB 2.2 million to RMB 6.4 million, primarily due to government subsidies increasing from RMB 0.3 million to RMB 5.2 million[22]. - The company received government subsidies totaling RMB 5,202,000 during the period, a substantial increase from RMB 289,000 in the previous year[68]. - The total other income for the period was RMB 6,407,000, significantly higher than RMB 2,219,000 in 2020, marking an increase of 189.5%[68]. Debt and Financing - The debt-to-equity ratio increased to approximately 81.1% as of June 30, 2021, compared to approximately 46.7% as of December 31, 2020, primarily due to increased borrowings[31]. - The total interest-bearing bank borrowings amounted to approximately RMB 178.3 million as of June 30, 2021, up from approximately RMB 95.6 million as of December 31, 2020[33]. - The company raised new borrowings amounting to RMB 178,300 thousand during the financing activities[58]. - The weighted average effective interest rate on borrowings decreased to 4.2% for the six months ended June 30, 2021, down from 6.1% for the same period in 2020[91]. Corporate Governance and Shareholder Information - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions during the six-month period ended June 30, 2021, except for a deviation regarding the separation of the roles of Chairman and CEO[42][43]. - As of June 30, 2021, the major shareholder, Dongyong Holdings Limited, holds 450,000,000 shares, representing 75% of the company's equity[49]. - There have been no changes in the interests of directors and senior management in shares or related securities as of June 30, 2021[45]. Future Plans and Investments - The company aims to enhance its market share and explore new opportunities while focusing on quality and efficiency improvements[18]. - The company plans to expand production capacity to meet the demands of its core customer base in the future[18]. - The company plans to utilize approximately RMB 81.9 million of net proceeds from its listing for future projects and general corporate purposes[39]. - As of June 30, 2021, the net proceeds from the fundraising have not been utilized, and the company has no significant future investment plans beyond those disclosed in the prospectus[40]. Miscellaneous - The company reported a net cash outflow from operating activities of RMB (52,277) thousand, compared to RMB (21,605) thousand in the same period of 2020[58]. - The company has not declared any dividends for the six months ended June 30, 2021, compared to RMB 12,000,000 declared in 2020[86]. - The company has not granted, exercised, or cancelled any share options under the share option scheme since its adoption on October 21, 2020[50].

Financial Performance - The company's revenue for the year ended December 31, 2020, was RMB 771,461,000, a decrease of approximately 11.0% compared to RMB 866,674,000 in 2019[6]. - The net profit for the same period was RMB 35,992,000, down 31.7% from RMB 52,664,000 in 2019[6]. - The gross profit for the year was RMB 126,936,000, slightly down from RMB 129,543,000 in 2019[6]. - The group's revenue decreased by approximately RMB 95.2 million or about 11.0% to approximately RMB 771.5 million for the year ended December 31, 2020, compared to RMB 866.7 million for the year ended December 31, 2019[18]. - The group's gross profit decreased by approximately RMB 2.6 million or about 2.0% to approximately RMB 126.9 million for the year ended December 31, 2020, compared to RMB 129.5 million for the year ended December 31, 2019[20]. - Other income increased from approximately RMB 1.9 million to approximately RMB 6.7 million for the year ended December 31, 2020, primarily due to an increase in foreign exchange gains and government subsidies[21]. - Selling and distribution expenses increased by approximately RMB 2.8 million or about 13.5% to approximately RMB 23.6 million for the year ended December 31, 2020[22]. - Administrative expenses increased from approximately RMB 31.3 million to approximately RMB 47.6 million for the year ended December 31, 2020, mainly due to increased listing expenses[23]. - Financial costs increased from approximately RMB 54 million for the year ended December 31, 2019, to approximately RMB 56 million for the year ended December 31, 2020, primarily due to an increase in average bank borrowings, including an additional bank loan of RMB 250 million drawn in April 2020[24]. - Income tax expenses decreased from approximately RMB 212 million for the year ended December 31, 2019, to approximately RMB 209 million for the year ended December 31, 2020, mainly due to a reduction in taxable profits[25]. - The group's net profit decreased by approximately RMB 16.7 million or approximately 31.7%, from approximately RMB 527 million for the year ended December 31, 2019, to approximately RMB 360 million for the year ended December 31, 2020[26]. Assets and Liabilities - Total assets increased to RMB 565,113,000 in 2020 from RMB 395,835,000 in 2019, reflecting a growth of approximately 42.8%[7]. - The total liabilities rose to RMB 356,607,000 in 2020, compared to RMB 300,910,000 in 2019, indicating an increase of about 18.5%[7]. - As of December 31, 2020, the group's debt-to-equity ratio was approximately 46.7%, a decrease from approximately 77.8% in 2019, primarily due to an increase in total equity[31]. - As of December 31, 2020, the group's bank balances and cash amounted to approximately RMB 1,292 million, up from approximately RMB 621 million in 2019[32]. - As of December 31, 2020, approximately RMB 304 million of the group's assets were pledged as collateral for certain bank financing[33]. Strategic Focus and Market Outlook - The company plans to focus on quality and efficiency improvements, emphasizing a "three-product strategy" to enhance innovation and optimize industry structure[12]. - The management team has actively adjusted operational strategies in response to the COVID-19 pandemic, allowing the company to be one of the first to resume operations in its region[11]. - The company aims to expand production capacity to meet the demands of its core customer base in the future[12]. - The textile industry is expected to see a stable upward demand as global economic activities gradually recover post-pandemic[12]. - The textile industry in China is expected to recover in 2021 and 2022, driven by domestic demand and the growth of online retail channels[15]. - The company aims to enhance market share and explore new opportunities while expanding production capacity to meet the needs of core customer groups[17]. Corporate Governance - The board consists of eight members, including five executive directors and three independent non-executive directors[100]. - The company currently does not have a CEO, with the chairman being Mr. Hsieh Shih-Tung[102]. - The independent non-executive directors provide independent judgment and oversight to the board, enhancing corporate governance[41][42][43]. - The board has maintained compliance with listing rules by appointing at least three independent non-executive directors, who constitute at least one-third of the board[103]. - The audit committee consists of three independent non-executive directors, with Mr. Ho Kin Cheung as the chairman, and has held one meeting to discuss financial reporting and risk management[110]. - The company has established a robust internal control and risk management system, which is regularly reviewed by the board[105]. - The board has set up three committees: the audit committee, the remuneration committee, and the nomination committee, each with defined roles and responsibilities[109]. - The board will continue to review the effectiveness of the corporate governance structure to assess the need for separating the roles of chairman and CEO[102]. - The company has established a remuneration committee to review the compensation policies for all directors and senior management[83]. - The Compensation Committee consists of three members, including two independent non-executive directors and one executive director, ensuring a transparent process for determining executive compensation[111]. Employee and Labor Relations - The company has 472 employees, with 471 located in China and one in Hong Kong, and maintains good labor relations without any significant labor disputes during the reporting period[54][55]. - The total employee cost for the group was approximately RMB 391 million for the year ended December 31, 2020, primarily for salaries, allowances, and other benefits[36]. - The employee turnover rate for males was 13.52% and for females was 14.94%[179]. - The employee turnover rate for those aged 30 and below was 57.78%[179]. - The company invested 1.9 million RMB in occupational health and safety training, providing 72 hours of training for each employee[185]. - The company provides various employee benefits, including paid leave and annual health check services[180]. - The company has a dedicated complaint hotline and anonymous mailbox for employee grievances[180]. - Employee satisfaction score reached 83.2 out of 100 based on a survey involving 400 employees[199]. Environmental, Social, and Governance (ESG) - The report period for the environmental, social, and governance (ESG) report is from January 1, 2020, to December 31, 2020[137]. - The company established a three-tier ESG governance structure, including the board of directors, ESG committee, and ESG working group, to integrate ESG considerations into daily operations[140]. - The ESG management system includes eight responsibility areas, such as employee rights protection and environmental protection, with specific goals and indicators established at the departmental level[140]. - The report adheres to the ESG reporting guidelines set by the Hong Kong Stock Exchange, ensuring principles of materiality, quantification, balance, and consistency[138]. - The company has established a comprehensive environmental management system compliant with GB/T 24001-2016 and ISO 14001:2015 standards[151]. - The company was recognized as a national-level green factory, highlighting its commitment to sustainable practices[154]. - The total wastewater discharge for 2020 was 672,092 tons[158]. - The total emissions of greenhouse gases amounted to 59,923.87 tons, with a density of 77.67 tons per million revenue[156]. - The company has implemented a waste gas treatment system that includes automatic oil smoke purification equipment and bag dust collectors[155]. - The company has a solid waste management system in place, ensuring hazardous waste is handled by qualified third parties[159]. Shareholder Relations and Dividends - The board proposed a final dividend of HKD 0.03 per share for the year ended December 31, 2020, subject to approval at the annual general meeting[37]. - The company declared a final dividend of HKD 0.03 per share for the year ended December 31, 2020, totaling approximately HKD 18 million, pending shareholder approval[47]. - The company has no predetermined dividend payout ratio, and the board considers various factors before recommending any dividends[46]. - The company has procedures in place for shareholders to request a special general meeting if they hold at least 10% of the paid-up capital[131]. - The company’s articles of association require a minimum notice period of seven days for shareholder proposals to be submitted for consideration at the general meeting[132]. Risk Management - The board is responsible for evaluating and determining the nature and extent of risks associated with achieving the company's strategic objectives, ensuring effective risk management and internal control systems[120]. - The audit committee supports the board in overseeing the design, implementation, and monitoring of risk management and internal control systems[120]. - The internal control consultant has reviewed the internal control systems and found no significant findings that would impact their effectiveness[120]. - The company has established a whistleblowing policy for employees and stakeholders to report any misconduct related to financial reporting or internal controls[122].