Business Focus and Strategy - The company focuses on the manufacturing of aerosol products for automotive beauty and maintenance, being a leading manufacturer in China[4] - For the six months ended June 30, 2024, the company continued to allocate more resources to develop its OBM business, resulting in significant growth in online sales[4] - The company remains cautiously optimistic about its domestic market and OBM business, while also focusing on enhancing product competitiveness and brand image[5] - The company plans to adopt environmentally friendly formulas to improve its existing OBM product line in response to consumer demand for eco-friendly alternatives[5] - The company aims to strengthen its self-owned brand promotion and expand into new markets through participation in various exhibitions[5] - The company is closely monitoring industry developments and adjusting its strategies to address uncertainties from trade protectionism and market demand[5] - The company emphasizes the importance of strict cost control to enhance its OBM business and overall competitiveness[5] Financial Performance - For the six months ended June 30, 2024, the group recorded revenue of approximately HKD 274.2 million, an increase of about 3.0% compared to HKD 266.2 million for the same period in 2023[8] - Revenue from Chinese customers was approximately HKD 222.7 million, a slight increase of about 1.2% from HKD 220.0 million in the same period of 2023, driven by the steady recovery of the Chinese economy[8] - Revenue from overseas customers increased by approximately 11.4% to about HKD 51.6 million, up from HKD 46.3 million in the same period of 2023, mainly due to the depreciation of the RMB against the USD enhancing product competitiveness[8] - Gross profit for the six months ended June 30, 2024, was approximately HKD 90.4 million, representing a 5.4% increase from HKD 85.8 million in the same period of 2023[10] - Other income and gains significantly increased by 294.5% to approximately HKD 8.8 million, up from HKD 2.2 million in the same period of 2023, primarily due to increased government subsidies and service income[12] - Selling and distribution expenses rose sharply by approximately 39.6% to about HKD 23.5 million, compared to HKD 16.8 million in the same period of 2023, mainly due to increased advertising and promotional costs[14] - Administrative expenses decreased by approximately 5.7% to about HKD 23.1 million, down from HKD 24.5 million in the same period of 2023, due to strict cost control measures[15] - Financing costs decreased significantly by approximately 31.5% to about HKD 1.0 million, down from HKD 1.4 million in the same period of 2023, primarily due to a reduction in the average outstanding bank loan balance[16] - Net profit attributable to the company's owners for the six months ended June 30, 2024, was approximately HKD 24.0 million, a decrease of about 10.3% from HKD 26.7 million in the same period of 2023[17] Liquidity and Financial Position - As of June 30, 2024, the group had a current ratio of approximately 2.0, up from 1.7 as of December 31, 2023, indicating improved liquidity[21] - Total assets as of June 30, 2024, were HKD 602,270,000, a decrease from HKD 584,764,000 as of December 31, 2023[35] - The company's total liabilities decreased to HKD 270,531,000 from HKD 276,836,000, reflecting a reduction of about 2.3%[35] - The net asset value increased to HKD 331,739,000 from HKD 307,928,000, representing a growth of approximately 7.7%[36] - The company had no significant contingent liabilities as of June 30, 2024, consistent with the previous year[28] - Cash flow from operating activities for the six months ended June 30, 2024, was HKD 19,258,000, down from HKD 33,305,000 in the same period of 2023, indicating a decline of approximately 42.1%[39] - The company experienced a decrease in inventory by HKD 1,878,000 during the period, compared to a minimal decrease of HKD 22,000 in the previous year[39] - The company reported a decrease in trade receivables by HKD 25,113,000, compared to a decrease of HKD 5,342,000 in the prior year, indicating a significant increase in collection efforts[39] Shareholder Information and Corporate Governance - The proposed interim dividend is HKD 0.0142 per share, a decrease from HKD 0.0172 per share in 2023, totaling HKD 3,322,000[56] - The company has maintained its accounting policies consistent with the previous fiscal year, with no significant impact from the adoption of new or revised International Financial Reporting Standards[43] - The company did not have any supplier financing arrangements, which indicates no impact from the recent amendments to the accounting standards regarding such arrangements[43] - The company has adopted a new stock option plan on May 19, 2023, to incentivize certain executive directors and senior management members[70] - The board of directors confirmed compliance with the standard code of conduct for securities trading throughout the six months ended June 30, 2024[106] - The company has been in compliance with the corporate governance code, except for the separation of the Chairman and CEO roles[103] - The company will continue to review the appropriateness of separating the roles of Chairman and CEO based on overall circumstances[104] Market and Economic Conditions - The Chinese economy showed steady growth in the first half of 2024, driven by significant industrial production growth and improved trade activities[5] - The company anticipates that other products under the Baocili brand will continue to be its main source of revenue in the short term[4] - Automotive beauty and maintenance products generated revenue of HKD 209,847,000, while personal care products contributed HKD 64,401,000 for the six months ended June 30, 2024[50] - Revenue from mainland China amounted to HKD 222,671,000, representing 81.1% of total revenue for the period[50]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致之任何損失承擔任何責任。 PRECIOUS DRAGON TECHNOLOGY HOLDINGS LIMITED 保寶龍科技控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：1861） 截 至2024年6月30日止六個月的 中期業績公告 中期業績 保寶龍科技控股有限公司（「本公司」）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2024年6月30日止六個月的未經審核簡明綜合財務 業績，連同截至2023年6月30日止六個月的比較數字。該等業績經本集團外聘核數 師安永會計師事務所及本公司轄下審核委員會（「審核委員會」）審閱。 – 1 – 中期簡明綜合損益及其他全面收益表 截至2024年6月30日止六個月 | --- | --- | --- | --- | |---------------------------------------|-------|--------------|---- ...

Financial Performance - The total revenue for the group was approximately HKD 557.2 million, a decrease of about 0.5% compared to HKD 559.8 million in the previous year[5]. - The profit attributable to the owners of the parent company was approximately HKD 56.9 million, an increase of about 35.5% from HKD 42.0 million in the previous year[5]. - The automotive beauty and maintenance products segment generated revenue of approximately HKD 445.5 million, a decrease of about 2.7% from HKD 457.8 million in the previous year[17]. - The personal care products segment reported revenue of approximately HKD 111.7 million, an increase of about 9.5% from HKD 102.0 million in the previous year[18]. - The group's sales cost for the reporting period was approximately HKD 381.3 million, a decrease of about 6.0% compared to HKD 405.6 million in 2022, representing 68.4% of revenue[21]. - Gross profit was approximately HKD 175.9 million, an increase of about 14.1% from HKD 154.2 million in 2022, with a corresponding improvement in gross margin[22]. - Other income and gains amounted to approximately HKD 8.6 million, a 22.7% increase from HKD 7.0 million in 2022, primarily due to increased government subsidies and interest income[23]. - Net profit for the period was approximately HKD 56.7 million, a significant increase of about 35.3% from HKD 41.9 million in 2022[27]. Dividend and Shareholder Returns - The board proposed a final dividend of HKD 0.0364 per share, up from HKD 0.0269 per share in the previous year[6]. - The company has adopted a dividend policy prioritizing cash distributions to shareholders, with decisions based on financial performance, operational needs, and other relevant factors[103]. Market Strategy and Business Development - The group plans to enhance brand awareness through sponsorship of exhibitions and multimedia platforms to promote its corporate image and brand[15]. - The group aims to strengthen its OBM business by improving existing product lines with eco-friendly formulas and increasing product competitiveness[9]. - The group is optimistic about the domestic market and the OBM business, despite challenges posed by regulatory changes and consumer preferences for environmentally friendly products[9]. - The group will continue to participate in various exhibitions and launch new products to meet market demand[8]. - The group anticipates that the other products under the existing brand will remain the main source of revenue in the short term while new product lines are being established[15]. Financial Position and Capital Management - Current assets net value as of December 31, 2023, was approximately HKD 84.0 million, up from HKD 58.3 million in 2022, with cash and cash equivalents totaling approximately HKD 119.7 million[29]. - The group's bank borrowings decreased to approximately HKD 35.3 million from HKD 50.8 million in 2022, with available bank financing increasing to approximately HKD 351.4 million[30]. - The debt-to-equity ratio improved to approximately 8.0% as of December 31, 2023, down from 23.4% in 2022[31]. - The group has established a monthly cash budget to share cash flow risks in conjunction with bank financing plans[117]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring high independence and effective decision-making[54]. - The independent non-executive directors possess extensive professional knowledge and experience in accounting, finance, law, and business[49]. - All directors are required to confirm their independence annually, and the company believes that the independent directors meet the criteria for independence[50]. - The company has adopted a formal, prudent, and transparent procedure for assessing and selecting director candidates[58]. - The chairman and CEO roles are held by the same individual, which the board believes is necessary for strong market leadership[46]. - The board consists of 5 male and 2 female directors, with a target to increase the proportion of female directors to over 25% in the coming years[63]. - The board has adopted a nomination policy to enhance diversity and governance standards[67]. - The attendance rate for board meetings was 100% for all executive directors, with independent non-executive directors also showing high attendance[70]. - The company emphasizes the importance of independent opinions and has mechanisms in place to ensure this[69]. - The board's diversity policy considers various factors including gender, age, cultural background, and professional experience[63]. - The board has a succession plan to address potential vacancies due to resignations or other circumstances[67]. - The Audit Committee held two meetings during the reporting period to discuss audit and financial reporting matters[74]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of governance[73]. - The company is committed to maintaining high standards of corporate governance and regularly reviews its governance policies[87]. Risk Management - The board is responsible for assessing and determining the nature and extent of risks the group is willing to take to achieve strategic objectives, ensuring the establishment of effective risk management and internal control systems[114]. - The company is committed to maintaining a robust risk management framework to support sustainable growth and business objectives[114]. - The group has implemented appropriate human resource allocation and effective management incentive mechanisms to mitigate strategic risks[116]. - The group has strengthened its operational capital accounting system and established a comprehensive annual budget to manage financial risks[117]. - The group actively monitors dust, high temperatures, and chemical hazards to address operational risks related to production safety and environmental standards[120]. - The board has conducted an annual review of the effectiveness of the risk management and internal control systems as of December 31, 2023[122]. Environmental, Social, and Governance (ESG) - The group has adhered to the Environmental, Social, and Governance (ESG) reporting guidelines set by the Hong Kong Stock Exchange[129]. - The group will continue to assess its business impact on key environmental, social, and governance issues[128]. - The company has established an environmental, social, and governance (ESG) framework to promote and implement its sustainability strategy[134]. - The board of directors is responsible for the overall ESG work and will continue to enhance ESG risk management and reporting processes[134]. - The company emphasizes compliance with environmental regulations in China and Thailand, including the Environmental Protection Law and the Water Pollution Prevention Law[144]. - The company is committed to minimizing the environmental impact of its business activities and maintaining green operations[143]. - No significant violations of air and greenhouse gas emissions regulations were reported during the reporting period[144]. - The company has implemented key measures for air pollutant and waste control to comply with applicable environmental laws[144]. - The ESG working group is responsible for coordinating ESG strategies and reporting progress to the board[135]. - The company prioritizes community engagement and local economic development through volunteer activities and social investments[141]. - The company has implemented energy-saving measures, resulting in a 0.32% decrease in energy consumption in 2023 compared to 2022[157]. - The company aims to maintain zero serious violations related to emissions, waste, and resource consumption over the next five years[154]. - The company has adopted the latest 2020 National VI emission standards for its fleet to improve exhaust emissions[148]. - The company is actively researching and developing environmentally friendly formulations, such as water-based and low-VOC products[155]. - The company has initiated a "zero waste factory" plan in November 2023 to minimize environmental pollution[159]. - The company has established an environmental management system certified by ISO 14001 for aerosol and non-aerosol product production[155]. - The company has committed to reducing harmful waste and has implemented a detailed environmental protection policy to manage waste effectively[150]. - The company has engaged qualified third-party monitoring companies to review and supervise its pollutant emissions annually[150]. - The company encourages employees to reduce waste, such as reusing paper and using electronic approval systems[155]. - The company is committed to mitigating climate change and enhancing its adaptability to climate-related threats[163]. - The company has identified rising average temperatures and extreme weather events, such as typhoons and heavy rainfall, as significant physical risks affecting daily operations[164]. - The company has implemented various emergency response mechanisms, including purchasing adequate natural disaster insurance to address climate-related risks[165]. Employee Management and Training - The company emphasizes the importance of attracting and retaining talented employees as a key to its success, continuously assessing human resources to align with business development needs[167]. - The company conducts annual performance reviews to determine bonus levels, salary adjustments, and employee promotions[168]. - A total of 448 employees participated in various training sessions, accumulating 11,437 hours of training during the reporting period[178]. - Training topics included occupational health protection knowledge and safety awareness, enhancing employee participation in corporate safety management[178]. - The company has established a safety management department to ensure compliance with national and local safety production laws and regulations[169]. - The company provides regular safety training and organizes emergency drills to enhance employees' emergency awareness and capabilities[171]. - The company has implemented occupational health measures, including providing ear protection and using low-noise equipment to reduce workplace noise impact[172]. - The company is unaware of any significant violations of laws and regulations regarding workplace safety and employee protection during the reporting period[173]. - The company strictly adheres to labor laws and regulations, ensuring no employment of child labor or forced labor, with a commitment to maintaining detailed employee records[180]. Quality Control and Customer Relations - The company collaborates closely with suppliers to meet quality, environmental, health, and safety standards, avoiding over-reliance on a single supplier[182]. - Quality control measures include testing raw materials from approved suppliers and conducting inspections at various production stages to ensure compliance with industry standards[187]. - The company has received multiple certifications for its quality management systems, including ISO9001:2015 and ISO14001:2015, ensuring high standards in production and environmental management[185]. - Guangzhou Baocili Chemical Co., Ltd., a subsidiary, was recognized as one of the top 500 manufacturing enterprises in Guangdong Province in 2023, reflecting the company's commitment to quality[188]. - The company has established a policy for handling product complaints, with a dedicated customer service team to address issues[189]. - There were no disputes regarding product quality with customers during the reporting period, and no products were recalled for safety or health reasons[191]. Anti-Corruption and Compliance - The company emphasizes the importance of intellectual property in driving innovation and has implemented various management systems for patents and trademarks[192]. - The company has a whistleblowing policy in place to report suspicious corruption incidents, encouraging employees to report through multiple channels[195]. - During the reporting period, 20 employees received one hour of anti-corruption training to promote awareness within the organization[195]. - The company strictly adheres to anti-corruption laws and regulations, with no legal cases related to corruption against the company or its employees during the reporting period[198].

Financial Performance - The group recorded a revenue of approximately HKD 557.2 million for the reporting period, a decrease of about 0.5% compared to HKD 559.8 million in the previous year[22]. - Revenue for 2023 was HKD 557,221 thousand, a slight decrease of 0.3% from HKD 559,785 thousand in 2022[88]. - Gross profit reached approximately HKD 175.9 million, reflecting a 14.1% increase from HKD 154.2 million in 2022[32]. - Net profit for the period was approximately HKD 56.7 million, a significant increase of 35.3% from HKD 41.9 million in 2022[30]. - Profit before tax rose to HKD 72,727 thousand, representing a 31.9% increase compared to HKD 55,157 thousand in 2022[88]. - Total comprehensive income for the year reached HKD 50,597 thousand, up 98.9% from HKD 25,456 thousand in the previous year[88]. - Basic earnings per share increased to HKD 24.3 cents, up from HKD 18.0 cents in 2022[88]. Revenue Segmentation - The automotive beauty and maintenance products segment generated revenue of approximately HKD 445.5 million, down about 2.7% from HKD 457.8 million in the previous year, primarily due to reduced economic activity in the Chinese market[23]. - The personal care products segment saw an increase in revenue to approximately HKD 111.7 million, up about 9.5% from HKD 102.0 million in the previous year, driven by increased demand from online stores operated by influencers[24]. - Revenue from external customers in Mainland China was HKD 452,836,000, up from HKD 441,962,000 in the previous year, representing a growth of approximately 2%[129]. - Product sales in the automotive beauty and maintenance segment amounted to HKD 445,501,000, while personal care products generated HKD 111,720,000, totaling HKD 557,221,000[135]. Cost and Expenses - The group's cost of sales was approximately HKD 381.3 million, accounting for about 68.4% of revenue, a decrease from 72.5% in the previous year, mainly due to lower raw material prices and changes in sales methods[25]. - The cost of goods sold for the year was HKD 381,317,000, down from HKD 405,596,000 in 2022, reflecting a decrease of 6.0%[143]. - Administrative expenses amounted to approximately HKD 51.7 million, a 15.3% increase from HKD 44.8 million in 2022[30]. - Research and development expenses increased to HKD 21,214,000 in 2023, compared to HKD 19,262,000 in 2022, representing a growth of 10.1%[143]. Assets and Liabilities - The total cost of properties, plants, and equipment increased to HKD 392,372,000 in 2023 from HKD 377,300,000 in 2022, reflecting an increase of 4.0%[5]. - The net book value of properties, plants, and equipment as of December 31, 2023, was HKD 225,239,000, compared to HKD 228,647,000 in 2022, indicating a slight decrease of 1.1%[3]. - The company reported a total of HKD 35,544,000 in borrowings as of December 31, 2023, down from HKD 50,938,000 in 2022, a decrease of 30.0%[8]. - The company’s total liabilities decreased to HKD 35,544,000 in 2023 from HKD 50,938,000 in 2022, a decrease of 30.0%[8]. - Total assets as of December 31, 2023, amounted to HKD 484,764,000, compared to HKD 475,208,000 in 2022, indicating an increase of approximately 2.3%[123][130]. Cash Flow and Financing - Cash and cash equivalents were approximately HKD 119.7 million, an increase from HKD 93.2 million in 2022[31]. - The company has a total of HKD 351.4 million in undrawn bank financing, significantly up from HKD 189.9 million in the previous year[14]. - The company has secured bank loans amounting to HKD 35.2 million guaranteed by the chairman and CEO, a decrease from HKD 44.6 million in the previous year[12]. - The debt-to-equity ratio decreased to approximately 8.0% from 23.4% in 2022 due to a reduction in total borrowings[42]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.0364 per share for the year ending December 31, 2023, compared to HKD 0.0269 per share for the previous year[60]. - The proposed final dividend for 2023 is HKD 3.64 per share, an increase from HKD 2.69 per share in 2022, totaling HKD 8,515,000 compared to HKD 6,292,000 in 2022[150]. Risk Management and Compliance - The audit committee was established on May 27, 2019, to review financial statements and oversee risk management and internal control systems[56]. - The remuneration committee, also established on May 27, 2019, is responsible for recommending compensation policies for all directors and senior management[58]. - The company has adopted a standard code for securities trading by directors, confirming compliance during the reporting period[60]. - The company did not report any sales revenue from a single customer that accounted for 10% or more of total revenue during the year[131]. Future Outlook and Strategy - The group plans to enhance its OBM business through increased brand awareness activities and participation in various exhibitions to promote its corporate image and brand[17]. - The group aims to strengthen its self-owned brand promotion and expand into new markets to solidify its business development amidst global economic uncertainties[19]. - The company plans to continue expanding its market presence and investing in new product development[93].

Revenue Performance - For the six months ended June 30, 2023, the group recorded revenue of approximately HKD 266.2 million, a decrease of about 2.5% compared to HKD 273.0 million for the same period in 2022[11]. - Revenue from Chinese customers was approximately HKD 220.0 million, reflecting a slight increase of about 4.9% from HKD 209.7 million in the same period of 2022, primarily due to the effective implementation of OBM sales strategies[11]. - Revenue from overseas customers decreased significantly to approximately HKD 46.3 million, down from HKD 63.3 million in the same period of 2022, attributed to the ongoing impact of the COVID-19 pandemic on the global economy[11]. - Revenue for the six months ended June 30, 2023, was HKD 266,237,000, a decrease of 2.9% from HKD 273,025,000 in the same period of 2022[46]. - Revenue from the automotive beauty and maintenance products segment was HKD 208,788,000, while personal care products generated HKD 57,449,000[66]. - The company continues to focus on expanding its market presence, particularly in mainland China, which generated HKD 219,954,000 in revenue from both segments combined[74]. Profitability - The group recorded a gross profit of approximately HKD 85.8 million for the six months ended June 30, 2023, representing an increase of about 21.8% compared to HKD 70.4 million for the same period in 2022[13]. - Profit before tax rose significantly to HKD 34,689,000, up 101.3% from HKD 17,255,000 in the previous year[46]. - The net profit attributable to the company's owners was approximately HKD 26.7 million, a significant increase of about 102.8% from HKD 13.2 million in the same period last year[20]. - Net profit for the period was HKD 26,708,000, which is a 103.3% increase from HKD 13,135,000 in 2022[46]. - The group’s profit before tax for the six months ended June 30, 2023, was HKD 26,733,000, compared to HKD 13,179,000 for the same period in 2022, representing a 102.5% increase[84]. Cost Management - The group's cost of sales for the six months ended June 30, 2023, was approximately HKD 180.5 million, representing about 67.8% of revenue, a decrease from 74.2% in the same period of 2022, mainly due to lower procurement costs for raw materials[12]. - Selling and distribution expenses were approximately HKD 16.8 million, down 6.5% from HKD 18.0 million in the previous year, attributed to reduced transportation costs and strict cost control measures[17]. - Administrative expenses increased by approximately 9.6% to HKD 24.5 million from HKD 22.3 million, mainly due to higher depreciation and employee compensation costs[18]. - Financing costs decreased by approximately 25.7% to HKD 1.4 million from HKD 1.9 million, due to a reduction in the average outstanding bank loan balance[19]. - The cost of goods sold decreased to HKD 180,462,000 in 2023 from HKD 202,625,000 in 2022, a reduction of 10.9%[78]. Assets and Liabilities - As of June 30, 2023, the group held a net current asset value of approximately HKD 72.2 million, up from HKD 58.3 million as of December 31, 2022[23]. - The group had bank borrowings of approximately HKD 55.7 million as of June 30, 2023, compared to HKD 50.8 million at the end of 2022[24]. - The debt-to-equity ratio was approximately 16.3% as of June 30, 2023, down from 23.4% at the end of 2022[26]. - Total assets as of June 30, 2023, were HKD 413,735,000, slightly up from HKD 410,564,000 at the end of 2022[49]. - Current assets increased to HKD 206,557,000 from HKD 190,264,000, indicating a growth of 8.5%[49]. - The company reported a total equity of HKD 278,064,000, an increase from HKD 267,647,000 at the end of 2022[52]. - Total liabilities as of June 30, 2023, were HKD 202,264,000, slightly down from HKD 207,561,000 as of December 31, 2022[72]. Cash Flow and Investments - Cash generated from operating activities increased to HKD 33,305,000 in 2023 from HKD 16,629,000 in 2022, reflecting a growth of 100.1%[59]. - The net cash used in investing activities was HKD 8,356,000, slightly higher than HKD 7,773,000 in 2022, reflecting ongoing investments in property, plant, and equipment[62]. - New bank loans amounted to HKD 16,540,000, a significant decrease from HKD 107,914,000 in the previous year, indicating a shift in financing strategy[62]. - The company paid dividends of HKD 6,293,000 during the period, compared to HKD 2,199,000 in the same period last year, representing an increase of 186.5%[62]. - The company experienced a foreign exchange loss of HKD 1,301,000, compared to a loss of HKD 585,000 in the previous year, indicating increased volatility in currency markets[62]. Shareholder Information - As of June 30, 2023, the total number of issued shares is 233,917,250[124]. - The beneficial ownership of the directors and key executives includes a total of 175,288,500 shares, representing approximately 74.94% of the issued shares[119]. - The company’s major shareholder, Mrs. Lian, holds 107,788,500 shares and has a family interest of 67,000,000 shares[119]. - The company must obtain independent non-executive director approval before granting options to directors, CEOs, or major shareholders[115]. - The total number of options granted under the Pre-IPO Share Option Scheme is 7,765,000 shares, which is about 2.91% of the total issued shares[131]. Corporate Governance - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, and recommended their adoption to the board[142]. - The company has complied with the corporate governance code except for the separation of the roles of chairman and CEO, which are currently held by the same individual[146]. - The remuneration committee was established to provide recommendations on the remuneration policies for all directors and senior management[144]. - The nomination committee was formed to review the board structure and ensure a balanced mix of skills and experience among board members[145]. - The company was registered as an exempted company in the Cayman Islands on May 4, 2018, and underwent a restructuring plan to streamline its corporate structure[140].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致之任何損失承擔任何責任。 PRECIOUS DRAGON TECHNOLOGY HOLDINGS LIMITED 保 寶 龍 科 技 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1861） 截 至2023年6月30日 止 六 個 月 的 中 期 業 績 公 告 中期業績 保寶龍科技控股有限公司（「本公司」）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2023年6月30日止六個月的未經審核簡明綜合財務 業績，連同截至2022年6月30日止六個月的比較數字。該等業績經本集團外聘核數 師安永會計師事務所及本公司轄下審核委員會（「審核委員會」）審閱。 ...

Financial Performance - The total revenue for the group was approximately HKD 559.8 million, a decrease of about 8.3% compared to HKD 610.4 million in the previous year[6]. - The profit attributable to the owners of the parent company was approximately HKD 42.0 million, an increase of about 132.1% from HKD 18.1 million in the previous year[6]. - The automotive beauty and maintenance products segment recorded revenue of approximately HKD 457.8 million, a decrease of about 12.5% from HKD 523.0 million in the previous year[18]. - The personal care products segment generated revenue of approximately HKD 102.0 million, an increase of about 16.8% compared to HKD 87.4 million in the same period last year[19]. - Gross profit was approximately HKD 154.2 million, a decrease of about 1.8% from HKD 157.1 million in the previous year[23]. - Other income and gains decreased by approximately 52.5% to HKD 7.0 million from HKD 14.8 million last year, primarily due to a reduction in government subsidies[24]. - Selling and distribution expenses were approximately HKD 33.7 million, a decrease of about 27.5% from HKD 46.4 million last year, attributed to reduced overseas sales and strict cost control measures[25]. - Administrative expenses decreased by approximately 17.4% to HKD 44.8 million from HKD 54.3 million last year, influenced by various cost reductions[26]. - Net profit increased significantly by approximately 132.7% to HKD 41.9 million from HKD 18.0 million in the previous year[28]. Dividends and Shareholder Communication - The board proposed a final dividend of HKD 0.0269 per share, compared to HKD 0.0094 per share in the previous year[7]. - The company will continue to focus on gender diversity among employees to maintain competitive advantages[62]. - The board is committed to maintaining effective communication with shareholders and regularly reviews the shareholder communication policy to ensure its effectiveness[99]. - The company holds an annual general meeting for shareholders to communicate with the board, with special meetings called upon request from shareholders holding at least 10% of the paid-up capital[88][90]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules, except for the separation of the roles of Chairman and CEO[45]. - The board consists of four executive directors and three independent non-executive directors, ensuring high independence and effective decision-making[54]. - All independent non-executive directors confirm their independence annually, in accordance with the listing rules[49]. - The company has established a formal and transparent process for evaluating and selecting board candidates[57]. - The terms of service for directors are set for three years, with re-election occurring at the annual general meeting[58]. - The company believes that the dual role of Chairman and CEO is necessary for strong market leadership and efficient decision-making[45]. - The board of directors confirmed compliance with the corporate governance code during the reporting period[59]. - The company has adopted a board diversity policy, aiming for over 25% female representation in the board within the next few years[61]. - The nomination policy includes criteria for selecting candidates to enhance board diversity and governance standards[63]. - The audit committee, established on May 27, 2019, consists of three independent non-executive directors and reviews financial statements and risk management systems[71]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific responsibilities[68]. - The company emphasizes the importance of corporate governance policies, effective risk management, and compliance with applicable laws and regulations[82]. Risk Management - The company faces strategic risks related to human resource allocation and government relations, and has implemented measures to enhance innovation and competitiveness[106]. - Financial risks include potential misuse of funds and compliance with accounting regulations, which the company addresses through strengthened accounting controls and budget management[107]. - Operational risks involve ensuring product safety and environmental standards, with the company focusing on monitoring hazards and updating employee training[110]. - Legal risks are mitigated through contract review processes and regular compliance audits to reduce potential impacts on the company[111]. - The company has established a risk management and internal control system to support long-term sustainable growth[104]. - The board is responsible for assessing and determining the group's environmental, social, and governance (ESG) related risks and ensuring effective risk management systems are in place[115]. Environmental and Social Responsibility - The company reduced VOCs emissions from 21.32 tons per year to 7.52 tons per year, demonstrating commitment to emission regulations[143]. - The company implemented key measures to control air pollutants, greenhouse gas emissions, and waste management in compliance with environmental laws in China and Thailand[139]. - The company is committed to using more environmentally friendly and cost-effective propellants in its products[141]. - The company has not experienced any significant violations of applicable environmental laws and regulations during the reporting period[140]. - The company emphasizes the importance of product quality and customer satisfaction through marketing activities and exhibitions[133]. - The company prioritizes community engagement and local economic development by providing job opportunities to local residents[133]. - The company is focused on ensuring employee rights and benefits, including health and safety in the workplace[133]. - The company has made significant contributions to community epidemic prevention efforts during the COVID-19 pandemic[194]. Employee Management and Training - The company employed a total of 466 employees, down from 513 employees last year, with employee costs approximately HKD 47.7 million compared to HKD 51.2 million last year[39]. - The company emphasizes the importance of talent acquisition and retention, continuously assessing human resources to align with business development needs[164]. - The company has established a safety management department to ensure compliance with national and local safety regulations, including regular safety training and emergency drills[167]. - A total of 444 employees participated in various training programs, accumulating 13,251 hours of training during the reporting period[174]. - The company strictly adheres to labor laws in China and Thailand, ensuring no employment of child labor or forced labor, with a commitment to hiring individuals over 18 years old[175]. - No issues related to child labor or forced labor were reported within the company during the reporting period[176]. Quality Control and Supplier Management - The company has established a supplier selection and evaluation policy, ensuring suppliers meet strict quality and pricing standards[179]. - The company has received multiple quality management certifications, including ISO9001:2015 and ISO14001:2015, for its aerosol products and related management systems[181]. - A quality assurance team has been established to oversee quality control procedures, including raw material inspections and production process monitoring[182]. - The company has a policy for handling product complaints, with a dedicated customer service team to address quality-related issues[189]. - There were no disputes regarding product quality or regulatory non-compliance during the reporting period, and no products were recalled for safety or health reasons[189].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致之任何損失承擔任何責任。 PRECIOUS DRAGON TECHNOLOGY HOLDINGS LIMITED 保 寶 龍 科 技 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1861） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 年 度 業 績 年度業績 保寶龍科技控股有限公司（「本公司」）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（「報告期間」）的 綜合財務業績，連同截至二零二一年十二月三十一日止年度的比較數字。 ...

Revenue Performance - For the six months ended June 30, 2022, the group recorded revenue of approximately HKD 273.0 million, a decrease of about 4.9% compared to HKD 287.0 million for the same period in 2021[14]. - Revenue from Chinese customers was approximately HKD 209.7 million, a slight decrease of about 0.1% from HKD 210.0 million in the same period of 2021, primarily due to short-term lockdowns affecting sales[14]. - Revenue from overseas customers was approximately HKD 63.3 million, a significant decrease from HKD 77.0 million in the same period of 2021, attributed to the ongoing COVID-19 pandemic and supply chain instability[14]. - For the six months ended June 30, 2022, total revenue was HKD 273,025,000, a decrease from HKD 287,041,000 for the same period in 2021, representing a decline of approximately 4.9%[65]. - The automotive beauty and maintenance products segment generated revenue of HKD 224,872,000, while personal care products contributed HKD 49,318,000, indicating a shift in revenue distribution[65]. Profitability and Costs - The gross profit for the same period was approximately HKD 70.4 million, a significant decrease of about 8.9% from HKD 77.2 million in 2021, primarily due to the ongoing COVID-19 pandemic and rising raw material prices[16]. - The gross profit for the same period was HKD 70,400 thousand, down from HKD 77,245 thousand, resulting in a gross margin of approximately 25.7%[46]. - The cost of goods sold for the six months ended June 30, 2022, was HKD 202,625, down from HKD 209,796 in the previous year[76]. - The group’s gross profit margin improved to 25.7% for the six months ended June 30, 2022, compared to 26.9% in the same period of 2021[76]. Expenses and Financial Position - For the six months ended June 30, 2022, the group's cost of sales was approximately HKD 202.6 million, accounting for about 74.2% of revenue, an increase of 1.1% compared to the same period in 2021[15]. - Selling and distribution expenses were approximately HKD 18.0 million, a decrease of about 17.4% from HKD 21.8 million in 2021, attributed to reduced transportation costs and strict cost control measures[21]. - Administrative expenses were approximately HKD 22.3 million, down about 18.8% from HKD 27.5 million in 2021, mainly due to reductions in employee salaries and benefits[22]. - Financing costs increased by approximately 49.8% to HKD 1.9 million, compared to HKD 1.3 million in 2021, due to an increase in average bank loan balances and overall borrowing rates[22]. Net Profit and Earnings - The net profit attributable to the company's owners for the six months ended June 30, 2022, was approximately HKD 13.2 million, an increase of about 85.9% from HKD 7.1 million in 2021[23]. - The company achieved a net profit of HKD 13,179,000 for the six months ended June 30, 2022, compared to HKD 7,089,000 for the same period in 2021, representing an increase of 85.5%[55]. - Basic earnings per share for the period was HKD 5.6 cents, up from HKD 3.0 cents in the previous year[46]. - The company's profit before tax for the six months ended June 30, 2022, was HKD 17,255,000, compared to HKD 11,959,000 for the same period in 2021, reflecting an increase of approximately 44.1%[68]. Assets and Liabilities - As of June 30, 2022, the group held a net current asset value of approximately HKD 97.7 million, compared to HKD 45.2 million as of December 31, 2021[27]. - The group's bank borrowings amounted to approximately HKD 141.1 million, up from HKD 120.0 million as of December 31, 2021, with all borrowings secured against properties and equipment[27]. - Total assets as of June 30, 2022, amounted to HKD 548,223 thousand, compared to HKD 546,876 thousand as of December 31, 2021[47]. - Total liabilities as of June 30, 2022, were HKD 300,109, an increase from HKD 276,477 as of December 31, 2021[71]. Market Strategy and Future Outlook - The group is focusing on enhancing its OBM business and has increased brand awareness activities, including sponsorships and multimedia promotions[11]. - The group anticipates that the new Bao Baolong product line will have growth potential, although existing products will remain the primary revenue source in the short term[11]. - The group remains cautiously optimistic about its domestic market and OBM business despite challenges posed by the pandemic and fluctuating raw material prices[13]. - The group is committed to enhancing customer relationships and expanding into new markets to solidify its business development[12]. Stock Options and Corporate Governance - The stock option plan is designed to encourage eligible participants to perform at their best for the benefit of the group and to attract and retain contributors[103]. - The company has established a remuneration committee to provide recommendations on the remuneration policies for all directors and senior management[133]. - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are currently held by the same individual[137].

Financial Performance - The total revenue for the group was approximately HKD 610.4 million, a decrease of about 8.3% compared to HKD 665.7 million in the previous year[8]. - The profit attributable to the owners of the parent company was approximately HKD 18.1 million, a decrease of about 66.0% from HKD 53.2 million in the previous year[8]. - The group recorded significant growth in online sales, reflecting the ongoing implementation of e-commerce strategies in China[17]. - The automotive beauty and maintenance products division recorded revenue of approximately HKD 523.0 million, a 10.4% increase compared to HKD 473.9 million in 2020, driven by a recovery in demand in the Chinese market[19]. - The personal care products division generated revenue of approximately HKD 87.4 million, a significant decrease of 54.4% from HKD 191.8 million in 2020, primarily due to increased shipping costs and extended docking times affecting overseas sales[20]. - Gross profit decreased to approximately HKD 157.1 million, down 29.7% from HKD 223.5 million in 2020, impacted by reduced overseas sales and increased shipping costs[22]. - Net profit for the period was approximately HKD 18.0 million, a substantial decline of 71.7% from HKD 63.6 million in 2020, due to ongoing pandemic effects and rising raw material costs[26]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.0094 per share, down from HKD 0.0245 per share in the previous year[9]. - The company has adopted a dividend policy prioritizing cash distribution to shareholders, with decisions based on financial performance, operational needs, and capital requirements[88]. Operational Developments - The group plans to establish a new production facility in Thailand, expected to commence operations in the first half of 2022, to mitigate the impact of trade protectionism and improve manufacturing cost efficiency[12]. - The new production facility is expected to enhance the group's competitiveness in Asia and mitigate operational risks associated with stricter regulations in China[40]. - The new facility is scheduled to commence production in the first half of 2022[40]. Cost Management and Efficiency - The group's cost of sales was approximately HKD 453.3 million, accounting for 74.3% of revenue, an increase from 66.4% in 2020, attributed to rising raw material prices and changes in sales methods[21]. - The group aims to enhance its product competitiveness and brand image while strictly controlling costs to improve its OBM business[11]. - The company has achieved a cost reduction of J% through operational efficiencies, positively impacting the overall profit margin[50]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring high independence and effective decision-making[53]. - The company has adopted the corporate governance code and has confirmed compliance with the standards for securities trading by directors during the reporting period[48]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[63]. - The company emphasizes high standards of corporate governance, effective risk management, and transparency to shareholders[75]. Risk Management - The board is responsible for maintaining a robust risk management and internal control system to achieve long-term sustainable growth[92]. - The company has implemented measures to mitigate financial risks, including enhanced accounting controls and a comprehensive annual budget[95]. - The board has conducted an annual review of the effectiveness of the risk management and internal control systems as of December 31, 2021[100]. Environmental, Social, and Governance (ESG) Practices - The company is committed to environmental, social, and governance (ESG) practices, with the board overseeing related risks and controls[102]. - The group is focused on maintaining compliance with laws and regulations, ensuring production safety, and fulfilling tax obligations[116]. - The company has committed to minimizing the environmental impact of its business activities and maintaining green operations[123]. - The company has established an environmental management system certified by ISO 14001 for aerosol and non-aerosol product production[129]. Employee Management and Training - As of December 31, 2021, the group employed a total of 513 employees, with employee costs approximately HKD 51.2 million, an increase from HKD 48.7 million in 2020[37]. - A total of 490 employees participated in various training programs, accumulating 14,730 hours of training during the reporting period[155]. - The percentage of trained employees reached 99.4% in 2021, with 100% training completion for junior staff[175]. Community Engagement and Contributions - The company donated approximately RMB 0.8 million to support community sustainable development during the reporting period[171]. - The company provided significant contributions to epidemic prevention efforts, ensuring the supply of disinfectants during the COVID-19 pandemic[170]. - The company received a letter of appreciation from the State Council for its contributions to epidemic control in 2020[170].