Group 1 - The company, Baobao Long Technology (01861), expects to achieve a significant increase in shareholders' net profit of at least 90% compared to the same period in 2024, with an estimated profit of approximately HKD 24 million in the first half of 2025 [1] - The anticipated growth in net profit is primarily attributed to the net gains from the disposal of properties, plants, and equipment, as well as net foreign exchange gains [1]

（於開曼群島註冊成立之有限公司） 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 （股份代號：1861） 正面盈利預告 本公告乃由保寶龍科技控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）根 據香港聯合交易所有限公司證券上市規則第 13.09條及香港法例第571章證券及期貨 條例第XIVA部項下內幕消息條文而刊發。 本公司董事（「董事」）會（「董事會」）謹此告知本公司股東（「股東」）及有意投資者，根 據本集團就截至二零二五年六月三十日止六個月（「該期間」）的未經審核綜合管理賬 目的初步評估，本集團預計錄得股東應佔純利較截至二零二四年六月三十日止六個 月的股東應佔純利約24.0百萬港元大幅增長不少於90%。 根據董事會可獲得的資料，董事會認為，有關純利預期增長主要歸因於（其中包括） (i)處置物業、廠房及設備的收益淨額；及(ii)匯兌收 ...

Group 1 - The company, Baobao Long Technology (01861.HK), announced that it will hold a board meeting on August 21, 2025, to consider and approve the interim results for the six months ending June 30, 2025, and to declare an interim dividend if applicable [1]

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） 董事會會議通知 保寶龍科技控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，本公司 將於二零二五年八月二十一日（星期四）舉行董事會會議，藉以（其中包括）考慮及批 准本公司及其附屬公司截至二零二五年六月三十日止六個月之中期業績及宣派中期 股息（如有）。 承董事會命 保寶龍科技控股有限公司 主席兼執行董事 高秀媚 香港，二零二五年八月十一日 於本公告日期，執行董事為高秀媚女士、連馨莉女士、連興隆先生及楊小業先生；獨立非執行董事 為李耀培先生、潘德政先生及彭長緯先生。 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 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） 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01861 | 說明 | | | | | | | | | 法定/註冊股份數目 | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | 1,500,000,000 | HKD | | 0.01 HKD | | 15,000,000 | | 增加 / 減少 (-) | | | 0 | | HKD | | 0 | | 本月底結存 | | 1,500,000,000 | HKD | | 0.01 HKD | | 15,000,000 | 本月底法定/註冊股本總額： HKD ...

Financial Performance - The group's total revenue for the reporting period was approximately HKD 613.0 million, representing a significant increase of about 10.0% compared to HKD 557.2 million in the previous year[7]. - The profit attributable to the company's owners for the year was approximately HKD 34.1 million, a substantial decrease of about 40.1% from HKD 56.9 million in the previous year[7]. - The company recorded a revenue of approximately HKD 613.0 million for the reporting period, a significant increase of about 10.0% compared to HKD 557.2 million in the same period last year[20]. - The automotive beauty and maintenance products segment generated revenue of approximately HKD 484.8 million, up about 8.8% from HKD 445.5 million in the previous year, primarily due to effective e-commerce sales strategies on multiple online platforms[21]. - The personal care products segment reported revenue of approximately HKD 128.2 million, a substantial increase of about 14.7% from HKD 111.7 million in the previous year, driven by increased demand from a major overseas customer[22]. - The company's gross profit was approximately HKD 227.2 million, representing a significant increase of about 29.2% compared to HKD 175.9 million in the previous year, attributed to effective e-commerce strategies and lower raw material prices[24]. - Other income and gains amounted to approximately HKD 13.6 million, a substantial increase of about 56.9% from HKD 8.6 million in the previous year, mainly due to increased sales of waste and recyclable materials[25]. - Selling and distribution expenses rose significantly to approximately HKD 90.0 million, an increase of about 161.8% from HKD 34.4 million in the previous year, primarily due to higher advertising and promotional expenses[26]. - Administrative expenses increased to approximately HKD 58.0 million, a rise of about 12.2% from HKD 51.7 million in the previous year, mainly due to higher employee salaries and benefits[27]. - The company reported a net profit of approximately HKD 34.1 million, a significant decrease of about 39.9% from HKD 56.7 million in the previous year, primarily due to increased selling and distribution expenses and asset impairment provisions[29]. Dividend and Shareholder Information - The board has proposed a final dividend of HKD 0.0219 per share, down from HKD 0.0364 per share in the previous year[8]. - The company has adopted a dividend policy prioritizing cash distributions to shareholders, with decisions based on financial performance and capital needs[97]. - The company maintains a shareholder communication policy to ensure timely and equal access to relevant information for shareholders and potential investors[98]. - The company will hold an annual general meeting to provide a communication platform between shareholders and the board[91]. - The company has reviewed its shareholder communication policy and confirmed its effective implementation as of December 31, 2024[103]. - The company encourages shareholders to access corporate communications via its website to reduce environmental impact[101]. Market and Business Development - The group continues to allocate more resources to develop its Original Brand Manufacturing (OBM) business, with significant growth in online sales reflecting the ongoing implementation of e-commerce strategies in China[16]. - The group plans to enhance brand awareness through sponsorship of exhibitions, public relations activities, and multimedia platforms to promote its corporate image and brand[16]. - The group aims to strengthen its self-owned brand promotion and expand new markets to consolidate and enhance its business development[10]. - The group is optimistic about its domestic market and OBM business, focusing on improving existing OBM product lines with environmentally friendly formulas and strict cost control[11]. - The group will continue to participate in various exhibitions in China and globally to meet market demand and adjust its strategies accordingly[10]. - The group believes in the growth potential of the new Baobao Long series of automotive beauty and maintenance products, although other products under the Baoci Li brand will remain the main source of revenue in the short term[16]. Economic and Industry Context - The group recorded a GDP growth of 5.0% in China, driven by strong domestic consumption and strategic economic policies, although recovery remains fragile due to global economic uncertainties[11]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring high independence and effective decision-making[54]. - The company has adopted a competitive yet reasonable remuneration policy for directors to attract and retain qualified individuals[40]. - The board consists of 5 male directors and 2 female directors, with a goal to increase the proportion of female directors to over 25% in the coming years[61]. - The company has adopted a nomination policy to enhance board diversity and governance standards, considering factors such as gender, age, cultural background, and professional experience[65]. - All directors have participated in ongoing professional development to enhance their knowledge and skills, ensuring informed contributions to the board[59]. - The company has mechanisms in place to ensure independent opinions are obtained, including annual reviews of the board's composition and the independence of non-executive directors[63]. - The board has established a diversity policy, recognizing the benefits of a diverse board in improving performance and achieving strategic goals[61]. - The company has a formal process for the appointment and re-election of directors, ensuring transparency and adherence to governance standards[57]. - Independent non-executive directors have confirmed their independence in accordance with listing rules, and the company believes all such directors are independent[63]. - The board's succession planning is included in the nomination policy to address potential vacancies due to resignations or other circumstances[65]. - The board of directors held 4 meetings during the reporting period, with all members attending 100% of the meetings[68]. - The Audit Committee was established on May 27, 2019, and held 2 meetings to discuss audit and financial reporting issues[70][71]. - The Remuneration Committee, also established on May 27, 2019, held 1 meeting to review the group's remuneration policies and director compensation[75]. - The Nomination Committee, established on May 27, 2019, held 1 meeting to review the current board structure and ensure adequate composition[80]. - The company engaged Ernst & Young as the external auditor for financial reporting during the reporting period[83]. - The board is committed to maintaining high standards of corporate governance and regularly reviews its governance policies[82]. - Independent professional advice is sought by board members when necessary to fulfill their duties[67]. - The company ensures that independent non-executive directors constitute a majority in the Remuneration Committee[75]. - The Audit Committee's scope includes reviewing financial statements and monitoring risk management and internal control systems[70]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas[68]. Risk Management - The company emphasizes the importance of maintaining a robust risk management and internal control system to achieve business objectives and sustainable growth[107]. - The board has overall responsibility for assessing and determining the nature and extent of risks the company is willing to take to achieve strategic goals[109]. - Financial risks include potential misuse of funds, inadequate budget management, and compliance issues with accounting regulations[110]. - The company has implemented a comprehensive annual budget and a budget execution responsibility system to mitigate financial risks[110]. - Operational risks involve ensuring product safety and environmental standards, as well as managing human resources and supply chains effectively[112]. - The company actively monitors dust, high temperatures, and chemical hazards, and has established energy-saving and emission reduction plans[112]. - Legal risks include potential contract violations and intellectual property protection issues, which the company addresses through contract review and regular legal support[113]. - The board has established an internal audit department to continuously monitor the effectiveness of the risk management and internal control systems[114]. Environmental, Social, and Governance (ESG) - The company has committed to evaluating its business impact on significant environmental, social, and governance issues and will report the findings[119]. - The report adheres to the Hong Kong Stock Exchange's guidelines for environmental, social, and governance reporting, ensuring compliance with mandatory disclosure requirements[120]. - The company has established an environmental, social, and governance (ESG) framework to promote and implement its sustainability strategy[126]. - The board of directors is responsible for guiding the company's sustainable development direction and overseeing ESG work[126]. - The company has identified key stakeholders and regularly interacts with them through various communication channels[130]. - Stakeholders, including government, shareholders, employees, and customers, have specific concerns such as legal compliance, investment returns, employee rights, and product quality[131]. - The company is committed to minimizing its environmental impact and maintaining green operations in compliance with relevant environmental laws and regulations in China and Thailand[135]. - The company has implemented key measures and procedures for controlling air pollutants, greenhouse gas emissions, and waste management[135]. - The company emphasizes the importance of employee rights, workplace safety, and career development opportunities[136]. - The company has not been aware of any serious violations regarding emissions and waste management laws during the reporting period[135]. - The ESG working group is responsible for implementing ESG strategies and reporting progress to the board[126]. - The company aims to enhance its ESG risk management and improve its overall ESG performance[126]. - The company has implemented the latest 2020 National VI emission standard models for its fleet to improve exhaust emissions[139]. - In 2024, the company's energy consumption increased by approximately 8% compared to 2023, primarily from production machinery and vehicles[147]. - The company aims to maintain zero serious violations related to exhaust, greenhouse gas, and waste emissions over the next five years[144]. - The main source of greenhouse gas emissions in 2024 comes from Scope 2, accounting for 85% of total emissions[140]. - The company is actively researching and developing environmentally friendly formulations, such as water-based and low-VOC products[145]. - The company has established an environmental management system for aerosol and non-aerosol product production, certified under ISO 14001[145]. - The company has implemented energy-saving measures and aims to improve resource usage efficiency, particularly in water and energy consumption[147]. - The company has engaged qualified third-party pollution monitoring companies to review and supervise its pollutant emissions annually[141]. - The company is committed to reducing harmful waste and has developed detailed environmental protection rules and guidelines for employees[141]. - The company promotes green production practices and encourages employees to reduce waste, such as reusing paper and using electronic approval systems[145]. - The company has implemented various emergency response mechanisms to address climate-related risks, including purchasing adequate natural disaster insurance[154]. - The company identifies and assesses climate-related risks through its Environmental, Social, and Governance (ESG) working group, which updates the board on climate regulations and industry benchmarks[154]. Employee and Training Initiatives - The company emphasizes the importance of attracting and retaining talented employees, recognizing that a professional team is its most valuable asset[155]. - The company conducts annual reviews of employee performance to determine bonus levels, salary adjustments, and promotions[157]. - The company has established a safety management department to ensure compliance with national and local safety production laws and regulations[159]. - The company provides safety training courses and organizes emergency drills to enhance employees' emergency awareness and capabilities[159]. - The company has implemented measures to reduce noise pollution in the workplace, including using low-noise equipment and providing ear protection for employees[160]. - A total of 455 employees participated in various training sessions, accumulating 12,720 hours of training during the reporting period[168]. - Training topics included fire safety training, emergency response for occupational injuries, and practical skills for handling fire-related incidents[168]. - The percentage of trained employees rose to 97.2% in 2024, up from 94.9% in 2023, indicating improved training initiatives[196]. - The average training hours per employee increased to 27.2 hours in 2024 from 24.2 hours in 2023, reflecting a commitment to employee development[196]. Supply Chain and Quality Assurance - The company has established a quality assurance team to oversee supplier and raw material quality control, ensuring compliance with industry standards[174]. - The company has received multiple certifications for its quality management systems, including ISO 9001:2015 and ISO 14001:2015, demonstrating its commitment to high standards[175]. - Quality control measures are implemented at various stages of production to ensure compliance with applicable industry standards[176]. - The company conducts pre-storage inspections and pre-delivery testing to ensure products meet specifications before reaching customers[178][179]. - The company maintains stable relationships with suppliers to avoid over-reliance on any single source, ensuring a consistent supply of quality materials[171]. - 202 suppliers passed the company's quality assurance audits during the reporting period, indicating effective supply chain management[171]. Social Responsibility and Community Engagement - The company donated over RMB 450,000 to support disaster relief efforts following the Guangdong floods in 2024, demonstrating its commitment to social responsibility[189]. - The company is committed to community investment and has contributed to disaster relief projects, reinforcing its social responsibility values[187]. - The company has established a whistleblowing policy to prevent corruption, encouraging employees to report suspicious activities through various channels[186]. - During the reporting period, the company arranged for 60 employees, including directors, to receive two hours of anti-corruption training[186]. Compliance and Legal Matters - The company has not been involved in any disputes regarding product quality with customers during the reporting period[182]. - The company emphasizes the importance of intellectual property and has implemented multiple management systems to protect it[183]. - The company has a three-year product shelf life, and any product recalls or replacements require prior approval from the responsible regional sales team[182]. - The company has not been aware of any serious violations related to health and safety, advertising, labeling, or privacy laws during the reporting period[184]. - The company respects the privacy of partners, employees, and consumers, ensuring that sensitive information is handled by authorized personnel only[184]. Environmental Impact and Waste Management - Total greenhouse gas emissions for 2024 were 2,629.76 tons CO2 equivalent, an increase of 3.95% from 2,529.08 tons in 2023[192]. - The total amount of hazardous waste increased significantly to 93.34 tons in 2024, up from 33.54 tons in 2023, representing a 178.5% increase[192]. - Total energy consumption reached 5,465,134.32 kWh in 2024, a rise of 8.17% compared to 5,051,869.44 kWh in 2023[192]. - The total number of employees decreased slightly to 468 in 2024 from 472 in 2023, with a notable increase in female employees from 236 to 241[194]. - Employee turnover rate for males increased to 25.6% in 2024 from 19.9% in 2023, while the turnover rate for females decreased to 18.7% from 21.2%[194]. - The total amount of non-hazardous waste increased to 310.82 tons in 2024 from 298.43 tons in 2023, showing a 4.7% rise[192]. - The company has set targets for emissions reduction and outlined steps taken to achieve these goals[200]. - Total harmful waste generated amounted to X tons, with a density of Y[200]. - Total non-harmful waste generated amounted to A tons, with a density of B[200]. - Direct (Scope 1) and energy indirect (Scope 2) greenhouse gas emissions were reported in tons, with a density of C[200]. - Total energy consumption was reported as D kilowatt-hours, with a corresponding density[200]. - Total water consumption was reported as E, with a density of F[200]. - The company has implemented policies to effectively use resources, including energy and water[200]. - Significant climate-related issues affecting the company have been identified, with management actions taken[200]. - The company has described methods for handling both harmful and non-harmful waste, along with reduction targets[200]. - The total amount of packaging materials used for products was reported as G tons, with a per unit production metric of H[200].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of HKD 612,967,000, an increase of 10% from HKD 557,221,000 in the previous year[4] - Gross profit for the same period was HKD 227,248,000, up 29% from HKD 175,904,000 year-on-year[4] - The net profit for the year was HKD 34,069,000, a decrease of 40% from HKD 56,703,000 in the previous year[4] - Basic and diluted earnings per share were both HKD 0.146, down from HKD 0.243 in the previous year[4] - Total revenue for the year 2024 reached HKD 612,967,000, an increase of 9.9% from HKD 557,221,000 in 2023[31] - The pre-tax profit for 2024 is HKD 50,255,000, compared to HKD 72,727,000 in 2023, reflecting a decrease of approximately 30.9%[43] - The group’s net profit for the reporting period was approximately HKD 34.1 million, a significant decrease of about 39.9% compared to HKD 56.7 million in the same period of 2023[83] Revenue Segmentation - Total revenue for the year ending December 31, 2024, reached HKD 612,967,000, with external customer revenue of HKD 612,967,000 and inter-segment sales of HKD 28,180,000[20] - The automotive beauty and maintenance products segment generated revenue of HKD 484,799,000, while the personal care products segment contributed HKD 128,168,000[20] - Revenue from mainland China was HKD 502,514,000, accounting for 82% of total revenue, up from HKD 452,836,000 in 2023[32] - The automotive beauty and maintenance products segment generated revenue of approximately HKD 484.8 million, an increase of about 8.8% from HKD 445.5 million in the previous year, driven by effective e-commerce sales strategies[74] - The personal care products segment reported revenue of approximately HKD 128.2 million, a substantial increase of about 14.7% from HKD 111.7 million in the previous year, primarily due to increased demand from a major overseas customer[75] Expenses and Costs - The company incurred research and development expenses of HKD 24,313,000, which is an increase of 14% compared to HKD 21,214,000 in the prior year[4] - Selling and distribution expenses rose to approximately HKD 90.0 million, a dramatic increase of about 161.8% from HKD 34.4 million in the previous year, primarily due to higher advertising and promotional expenses[79] - Administrative expenses were approximately HKD 58.0 million, an increase of about 12.2% from HKD 51.7 million in the previous year, driven by higher employee salaries and depreciation expenses[80] - The company's cost of sales was approximately HKD 385.7 million, accounting for about 62.9% of revenue, a decrease from 68.4% in the previous year, despite a 1.2% increase in costs[76] Assets and Liabilities - Total assets as of December 31, 2024, were HKD 363,323,000, slightly up from HKD 362,843,000 in the previous year[5] - The company reported a significant increase in trade receivables, which rose to HKD 46,791,000 from HKD 35,602,000 year-on-year, indicating improved sales performance[5] - The company’s total equity increased to HKD 325,480,000 from HKD 307,928,000, reflecting a stronger financial position[6] - Total liabilities were reported at HKD 151,050,000, with segment liabilities of HKD 98,512,000 for automotive products and HKD 45,333,000 for personal care products[22] - The total bank borrowings as of December 31, 2024, were approximately HKD 25.3 million, a decrease from HKD 35.3 million in 2023[87] Cash Flow and Financial Management - The company’s cash and cash equivalents stood at HKD 105,610,000, a decrease from HKD 107,730,000 in the previous year[5] - The total financial costs decreased to HKD 1,862,000 from HKD 2,755,000 in 2023, indicating improved financial management[39] - The actual tax expense for 2024 is HKD 16,186,000, which is 32.2% of the pre-tax profit, compared to HKD 16,024,000 or 22.0% in 2023[43] - The debt-to-equity ratio was approximately 4.0% as of December 31, 2024, down from 8.0% in 2023[88] Dividends and Shareholder Returns - The proposed final dividend for 2024 is HKD 2.19 per share, down from HKD 3.64 per share in 2023, totaling HKD 5,123,000 compared to HKD 8,515,000 in the previous year[44] - The total proposed dividend for 2024 is HKD 8,445,000, down from HKD 12,538,000 in 2023, reflecting a decrease of approximately 32.4%[44] - The company has proposed a final dividend of HKD 0.0219 per share for the year ending December 31, 2024, compared to HKD 0.0364 per share for the previous year[107] Corporate Governance - The company has established an Audit Committee to review financial statements and oversee risk management, consisting of three independent non-executive directors[100] - The company has adopted corporate governance practices in compliance with the Hong Kong Stock Exchange's listing rules, with a dual role of Chairman and CEO held by the same individual[99] - The Remuneration Committee, established on May 27, 2019, is responsible for recommending remuneration policies for directors and senior management[102] - The Nomination Committee, also established on May 27, 2019, evaluates the independence of non-executive directors and oversees succession planning for executive directors[104]

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]

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) [Company Information and Report Overview](index=1&type=section&id=Company%20Information%20and%20Report%20Overview) PRECIOUS DRAGON TECHNOLOGY HOLDINGS LIMITED announced its unaudited condensed consolidated financial results for the six months ended June 30, 2024, which were reviewed by Ernst & Young and the Audit Committee - Company Name: PRECIOUS DRAGON TECHNOLOGY HOLDINGS LIMITED (保寶龍科技控股有限公司)[1](index=1&type=chunk) - Reporting Period: Six months ended June 30, 2024[1](index=1&type=chunk) - Report Nature: Unaudited condensed consolidated financial results, reviewed by Ernst & Young and the Company's Audit Committee[1](index=1&type=chunk) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) [Profit or Loss Statement Overview](index=2&type=section&id=Profit%20or%20Loss%20Statement%20Overview) For the six months ended June 30, 2024, revenue increased by 3.0% to HK$274,248 thousand and gross profit rose by 5.4% to HK$90,446 thousand, but profit for the period decreased by 10.2% to HK$23,978 thousand due to a significant increase in selling and distribution expenses Interim Condensed Consolidated Statement of Profit or Loss Key Data | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 274,248 | 266,237 | 3.0% | | Cost of sales | (183,802) | (180,462) | 1.9% | | Gross profit | 90,446 | 85,775 | 5.4% | | Other income and gains | 8,816 | 2,235 | 294.5% | | Selling and distribution expenses | (23,464) | (16,804) | 39.6% | | Administrative expenses | (23,051) | (24,454) | -5.7% | | Research and development expenses | (10,772) | (9,720) | 10.8% | | Profit before tax | 33,918 | 34,689 | -2.2% | | Income tax expense | (9,940) | (7,981) | 24.5% | | Profit for the period | 23,978 | 26,708 | -10.2% | | Total comprehensive income for the period | 23,811 | 16,710 | 42.5% | - Other income and gains significantly increased by **294.5%**, primarily due to higher government grants, service income, and interest income[2](index=2&type=chunk)[25](index=25&type=chunk) - Selling and distribution expenses substantially increased by **39.6%**, mainly driven by increased advertising and promotion costs to enhance the e-commerce platform[2](index=2&type=chunk)[26](index=26&type=chunk) [Earnings Per Share](index=3&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2024, basic and diluted earnings per share attributable to owners of the parent were both 10.3 HK cents, a decrease from 11.4 HK cents in the prior year Earnings Per Share | Indicator | 2024 (HK cents) | 2023 (HK cents) | | :--- | :--- | :--- | | Basic earnings per share | 10.3 | 11.4 | | Diluted earnings per share | 10.3 | 11.4 | - Basic earnings per share are calculated based on the weighted average number of 233,917,250 ordinary shares outstanding during the period[16](index=16&type=chunk) [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) [Assets](index=4&type=section&id=Assets) As of June 30, 2024, total non-current assets slightly decreased, while total current assets increased, primarily driven by a significant rise in trade and bills receivables Assets Overview | Indicator | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Total non-current assets | 267,038 | 278,822 | | Total current assets | 222,432 | 205,942 | | Trade and bills receivables | 59,660 | 35,602 | | Cash and cash equivalents | 112,768 | 107,730 | - Trade and bills receivables increased from **HK$35,602 thousand** at the end of 2023 to **HK$59,660 thousand** in mid-2024[4](index=4&type=chunk)[17](index=17&type=chunk) [Liabilities and Equity](index=4&type=section&id=Liabilities%20and%20Equity) As of June 30, 2024, total current liabilities and total non-current liabilities both decreased, while equity attributable to owners of the parent increased, leading to growth in net assets and total equity Liabilities and Equity Overview | Indicator | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Total current liabilities | 109,212 | 121,921 | | Total non-current liabilities | 48,519 | 54,915 | | Net assets | 331,739 | 307,928 | | Total equity | 331,739 | 307,928 | - Trade and bills payables decreased from **HK$53,803 thousand** at the end of 2023 to **HK$46,345 thousand** in mid-2024[4](index=4&type=chunk)[18](index=18&type=chunk) [Notes to the Interim Condensed Consolidated Financial Information](index=6&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [Basis of Preparation and Changes in Accounting Policies](index=6&type=section&id=Basis%20of%20Preparation%20and%20Changes%20in%20Accounting%20Policies) The interim condensed consolidated financial information is prepared in accordance with IAS 34 and incorporates newly adopted revised IFRSs, which have no material impact on the Group's financial position or performance - Financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting[7](index=7&type=chunk) - Newly adopted revised IFRSs, including IAS 16 (Amendments), IAS 1 (Amendments), and IAS 7 & IFRS 7 (Amendments), have no impact on the Group's financial position or performance[8](index=8&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) [Revenue Analysis](index=8&type=section&id=Revenue%20Analysis) Current period revenue primarily stems from product sales, with automotive beauty and maintenance products contributing the most, while Mainland China remains the main market, Japan shows significant contribution, and personal care product sales increased Revenue by Product Type | Product Type | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Automotive beauty and maintenance products | 209,847 | 208,788 | | Personal care products | 64,401 | 57,449 | | **Total** | **274,248** | **266,237** | Revenue by Geographical Market | Geographical Market | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Mainland China | 222,671 | 219,954 | | Japan | 31,087 | 29,631 | | Other Asia Pacific countries/regions | 7,700 | 7,911 | | Middle East | 4,040 | 2,988 | | Americas | 6,328 | 4,178 | | Other regions | 2,422 | 1,575 | | **Total** | **274,248** | **266,237** | - All revenue is recognized when goods are transferred at a point in time[11](index=11&type=chunk)[12](index=12&type=chunk) [Components of Profit Before Tax](index=10&type=section&id=Components%20of%20Profit%20Before%20Tax) Profit before tax is primarily influenced by cost of inventories sold, depreciation, R&D expenses, employee benefit expenses, and net exchange losses, with employee benefit expenses and net exchange losses significantly increasing this period Key Deductions/Additions to Profit Before Tax | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 183,802 | 180,462 | | Depreciation of property, plant and equipment | 12,381 | 11,763 | | Research and development costs | 10,772 | 9,720 | | Employee benefit expenses | 25,241 | 22,102 | | Net exchange losses | 5,993 | 920 | | Impairment losses on financial assets / (reversal of impairment losses) | 698 | (221) | - Employee benefit expenses, including wages, salaries, and pension scheme contributions, increased from **HK$22,102 thousand** in 2023 to **HK$25,241 thousand** in 2024[13](index=13&type=chunk) - Net exchange losses significantly increased from **HK$920 thousand** in 2023 to **HK$5,993 thousand** in 2024[13](index=13&type=chunk) [Income Tax Expense](index=11&type=section&id=Income%20Tax%20Expense) Current period income tax expense was HK$9,940 thousand, an increase from the prior year, with Hong Kong profits tax rate at 16.5% and a two-tiered rate of 8.25% for eligible subsidiaries Income Tax Expense Components | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Current - Mainland China current period expense | 9,898 | 9,189 | | Underprovision / (overprovision) in prior years | 153 | (1,618) | | Deferred | (111) | 410 | | **Total** | **9,940** | **7,981** | - Hong Kong profits tax rate remains at **16.5%**, with eligible subsidiaries subject to an **8.25%** two-tiered profits tax rate on the first HK$2,000,000 of assessable profits[14](index=14&type=chunk) [Dividends](index=11&type=section&id=Dividends) The Board of Directors proposed an interim dividend of 1.42 HK cents per share for the six months ended June 30, 2024, lower than 1.72 HK cents per share in the prior year Proposed Interim Dividend | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Dividend per ordinary share | 1.42 HK cents | 1.72 HK cents | | Total dividend | 3,322 | 4,023 | [Earnings Per Share Calculation](index=12&type=section&id=Earnings%20Per%20Share%20Calculation) Basic earnings per share are calculated based on profit attributable to owners of the parent and the weighted average number of ordinary shares outstanding, with no adjustment for diluted earnings per share due to the anti-dilutive effect of share options - Profit attributable to owners of the parent used for calculating basic and diluted earnings per share was **HK$23,978 thousand** (2023: HK$26,733 thousand)[16](index=16&type=chunk) - The weighted average number of ordinary shares outstanding was **233,917,250 shares**, consistent with the prior year[16](index=16&type=chunk) - No adjustment was made to diluted earnings per share due to the anti-dilutive effect of unexercised share options[16](index=16&type=chunk) [Trade and Bills Receivables](index=13&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2024, total trade and bills receivables significantly increased to HK$59,660 thousand, with the highest proportion of amounts aged within 30 days Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 29,666 | 17,031 | | 31 to 60 days | 20,858 | 10,451 | | 61 to 90 days | 7,295 | 5,940 | | Over 90 days | 1,841 | 2,180 | | **Total** | **59,660** | **35,602** | [Trade and Bills Payables](index=13&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2024, total trade and bills payables decreased to HK$46,345 thousand, with amounts aged within 30 days still representing the largest proportion Ageing Analysis of Trade and Bills Payables | Ageing | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 22,217 | 25,399 | | 31 to 60 days | 13,216 | 9,815 | | 61 to 90 days | 8,092 | 8,612 | | Over 90 days | 2,820 | 9,977 | | **Total** | **46,345** | **53,803** | [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=14&type=section&id=Business%20Review%20and%20Outlook) The Group focuses on manufacturing and selling automotive beauty and maintenance products and personal care products, expanding its OBM business through distribution networks and online platforms, while continuously investing in OBM development, brand awareness, and adapting to global economic uncertainties and domestic market opportunities [Business Overview](index=14&type=section&id=Business%20Overview) The company manufactures aerosol automotive beauty and maintenance products, including cleaning, care, paints, coatings, seasonal products, and air fresheners, also engaging in personal care and household products, operating through contract manufacturing services (CMS) and original brand manufacturing (OBM) - Primary business: Manufacturing of automotive beauty and maintenance products (aerosol and non-aerosol), including cleaning, care, paints, coatings, specialty products, and air fresheners[19](index=19&type=chunk) - Expanded business: Design, development, manufacturing, and sales of personal care products (e.g., facial cleansers, sunscreens, deodorants) and household products[19](index=19&type=chunk) - Sales models: Contract Manufacturing Services (CMS) and Original Brand Manufacturing (OBM)[19](index=19&type=chunk) - OBM sales channels: Distributor networks and online platforms like Tmall and JD.com, with proprietary brands including Botny and ATM[19](index=19&type=chunk) - Strategic focus: Continuous allocation of resources to develop OBM business, increased brand awareness activities, and significant growth in online market sales[19](index=19&type=chunk) - New product line: Launch of the Baobaolong series of automotive beauty and maintenance products under the Botny brand to reposition the corporate image and expand the customer base[19](index=19&type=chunk) [Operating Environment and Outlook](index=15&type=section&id=Operating%20Environment%20and%20Outlook) The global economy faces high uncertainty, but China's economy grew steadily in the first half; the company monitors industry developments, strengthens its own brand promotion, and enhances market competitiveness through diversified strategies, customer management, exhibition participation, and new product launches, while addressing challenges and opportunities from aerosol product safety regulations and rising consumer environmental awareness - Global economy faces uncertainties such as trade protectionism, international conflicts, and raw material price fluctuations[20](index=20&type=chunk) - China's economy grew steadily in the first half, with good industrial production, external demand, and service sector demand, though recovery remains fragile[20](index=20&type=chunk) - Chinese government implements aerosol product safety and environmental regulations, and increasing consumer environmental awareness presents both opportunities and challenges[20](index=20&type=chunk) - Company strategy: Continuously adjust diversified strategies and customer management approaches, actively participate in exhibitions, launch new products, strengthen proprietary brand promotion, enhance customer relationships, and expand into new markets[20](index=20&type=chunk) - OBM business outlook: Cautiously optimistic about the domestic market, OBM business, and personal care product industry, with continued development through eco-friendly formulations, cost control, and brand image enhancement[20](index=20&type=chunk) [Financial Review](index=15&type=section&id=Financial%20Review) Current period turnover increased by 3.0%, driven by China's economic recovery and overseas sales growth; gross profit rose, but a significant increase in selling and distribution expenses led to a decrease in profit for the period, while administrative expenses and finance costs decreased due to cost control measures [Turnover](index=15&type=section&id=Turnover) For the six months ended June 30, 2024, the Group's turnover was approximately HK$274.2 million, a 3.0% year-on-year increase, with slight growth from Mainland China customers and significant growth from overseas customers, mainly due to the depreciation of RMB enhancing product competitiveness Turnover Overview | Region | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Total Turnover | 274.2 | 266.2 | 3.0% | | Revenue from China customers | 222.7 | 220.0 | 1.2% | | Revenue from overseas customers | 51.6 | 46.3 | 11.4% | - China sales growth primarily due to steady economic recovery in China and effective OBM product sales strategies[21](index=21&type=chunk) - Overseas sales growth primarily due to the depreciation of RMB against the US dollar, enhancing product competitiveness[22](index=22&type=chunk) [Cost of Sales](index=16&type=section&id=Cost%20of%20Sales) Cost of sales was approximately HK$183.8 million, a 1.9% year-on-year increase, accounting for about 67.0% of turnover, primarily due to increased product sales volume and changes in product mix sales methods Cost of Sales | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Cost of sales | 183.8 | 180.5 | 1.9% | | Percentage of turnover | 67.0% | 67.8% | -0.8pp | [Gross Profit and Gross Margin](index=16&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit was approximately HK$90.4 million, a 5.4% year-on-year increase, primarily driven by enhanced bargaining power with suppliers and a strategic focus on selling high-margin products Gross Profit | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | | Gross profit | 90.4 | 85.8 | 5.4% | - Gross profit increase primarily due to enhanced bargaining power with suppliers and a strategic focus on selling high-margin products[24](index=24&type=chunk) [Other Income and Gains](index=16&type=section&id=Other%20Income%20and%20Gains) Other income and gains significantly increased by 294.5% to HK$8.8 million, primarily driven by substantial growth in government grants, service income, and interest income Other Income and Gains | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Other income and gains | 8.8 | 2.2 | 294.5% | - Government grants increased by approximately **HK$2.7 million**, service income by approximately **HK$2.5 million**, and interest income by approximately **HK$0.6 million**[25](index=25&type=chunk) [Selling and Distribution Expenses](index=17&type=section&id=Selling%20and%20Distribution%20Expenses) Selling and distribution expenses significantly increased by 39.6% to HK$23.5 million, primarily due to increased advertising and promotion costs aimed at enhancing the e-commerce platform Selling and Distribution Expenses | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 23.5 | 16.8 | 39.6% | | Advertising and promotion costs | 9.5 | 3.2 | 196.9% | - Advertising and promotion costs increased by approximately **HK$9.5 million** to enhance the e-commerce platform[26](index=26&type=chunk) [Administrative Expenses](index=17&type=section&id=Administrative%20Expenses) Administrative expenses decreased by 5.7% to HK$23.1 million, primarily due to the company's implementation of stringent cost control measures Administrative Expenses | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 23.1 | 24.5 | -5.7% | [Finance Costs](index=17&type=section&id=Finance%20Costs) Finance costs significantly decreased by 31.5% to HK$1.0 million, primarily due to a reduction in the average outstanding balance of bank loans Finance Costs | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 1.0 | 1.4 | -31.5% | [Profit for the Period](index=17&type=section&id=Profit%20for%20the%20Period) Net profit attributable to owners of the parent was approximately HK$24.0 million, a 10.3% year-on-year decrease, influenced by improved gross margin, high-margin product strategy, increased selling and distribution expenses, and stringent cost control measures Net Profit Attributable to Owners of the Parent | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Net profit attributable to owners of the parent | 24.0 | 26.7 | -10.3% | - Net profit decrease is primarily due to the combined impact of improved gross margin, high-margin product strategy, a significant increase in selling and distribution expenses, and stringent cost control measures[29](index=29&type=chunk) [Treasury Policy and Liquidity](index=18&type=section&id=Treasury%20Policy%20and%20Liquidity) The Group aims to maintain sufficient cash and cash equivalents to meet short-term financing needs and prudently manage borrowing costs; as of June 30, 2024, net current assets and current ratio improved, while bank borrowings and gearing ratio decreased [Treasury Policy](index=18&type=section&id=Treasury%20Policy) The Group's treasury policy aims to effectively control treasury operations and reduce borrowing costs, focusing on maintaining sufficient cash and cash equivalents and considering diverse financing sources to ensure efficient utilization of financial resources - Treasury policy objectives: Effectively control treasury operations and reduce borrowing costs[30](index=30&type=chunk) - Strategy: Maintain sufficient cash and cash equivalents, consider diverse financing sources, and ensure efficient utilization of financial resources[30](index=30&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2024, the Group's net current assets increased to HK$113.2 million, and the current ratio improved to 2.0; cash and cash equivalents (including pledged bank deposits) totaled HK$114.8 million, denominated in various currencies including RMB, USD, and JPY Liquidity Overview | Indicator | June 30, 2024 (HK$ million) | December 31, 2023 (HK$ million) | | :--- | :--- | :--- | | Net current assets | 113.2 | 84.0 | | Cash and cash equivalents (incl. pledged) | 114.8 | 119.7 | | Current ratio | 2.0 | 1.7 | - Cash and cash equivalents are primarily denominated in Renminbi, US dollars, Japanese Yen, Thai Baht, Hong Kong dollars, and Indian Rupees[30](index=30&type=chunk) [Borrowings and Pledged Assets](index=18&type=section&id=Borrowings%20and%20Pledged%20Assets) As of June 30, 2024, bank borrowings decreased to HK$28.2 million, secured by property, plant and equipment and leasehold land, with HK$173.3 million in unutilized banking facilities available Borrowings and Unutilized Facilities | Indicator | June 30, 2024 (HK$ million) | December 31, 2023 (HK$ million) | | :--- | :--- | :--- | | Bank borrowings | 28.2 | 35.3 | | Unutilized banking facilities available | 173.3 | 351.4 | - Bank borrowings are secured by property, plant and equipment and leasehold land, maturing between 2024 and 2027[31](index=31&type=chunk) [Gearing Ratio](index=18&type=section&id=Gearing%20Ratio) As of June 30, 2024, the gearing ratio (calculated as total debt divided by equity attributable to owners of the Company) decreased to 5.1%, an improvement from 8.0% at the end of 2023 Gearing Ratio | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Gearing ratio | 5.1% | 8.0% | [Capital Structure](index=19&type=section&id=Capital%20Structure) As of June 30, 2024, the total number of issued shares of the Company remained at 233,917,250, consistent with the end of 2023 Total Number of Issued Shares | Date | Total Number of Issued Shares | | :--- | :--- | | June 30, 2024 | 233,917,250 shares | | December 31, 2023 | 233,917,250 shares | [Foreign Exchange and Currency Risk](index=19&type=section&id=Foreign%20Exchange%20and%20Currency%20Risk) The Group faces foreign exchange risk from currency mismatch between USD-denominated revenue and RMB-denominated production costs, as well as exchange rate fluctuation risk due to time lag between invoicing and settlement for export sales; no foreign currency forward contracts were entered into during the period - Approximately **18.8%** of revenue is denominated in USD, while over **90%** of production costs are settled in RMB, creating a currency mismatch[34](index=34&type=chunk) - Export sales are subject to foreign exchange risk due to the time lag between invoicing and final settlement by customers[34](index=34&type=chunk) - No foreign currency forward contracts were entered into for the six months ended June 30, 2024[34](index=34&type=chunk) [Employees and Remuneration Policy](index=19&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the Group's employee headcount increased to 468, with staff costs (excluding pension contributions) of approximately HK$23.3 million; remuneration policy is based on market terms, individual performance, and experience, with year-end bonuses and share options to attract and retain talent Employees and Staff Costs | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Number of employees | 468 | 459 | | Staff costs (excl. pension) | HK$23.3 million | HK$20.2 million | - Remuneration policy: Determined by reference to market terms, individual employee performance, qualifications, and experience[35](index=35&type=chunk) - Incentive mechanisms: Year-end bonuses for outstanding performers and grant of share options to attract and retain qualified employees[35](index=35&type=chunk) [Significant Matters](index=19&type=section&id=Significant%20Matters) During the reporting period, the Group had no material investments, acquisitions, or disposals, nor any new future plans for material investments or capital assets; capital commitments primarily related to plant and machinery, with no significant changes in contingent liabilities or dealings in listed securities [Material Investments](index=19&type=section&id=Material%20Investments) As of June 30, 2024, the Group had no material investments - As of June 30, 2024, the Group had no material investments[36](index=36&type=chunk) [Material Acquisitions and Disposals](index=20&type=section&id=Material%20Acquisitions%20and%20Disposals) For the six months ended June 30, 2024, the Group had no acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no acquisitions or disposals of subsidiaries, associates, or joint ventures[37](index=37&type=chunk) [Future Plans for Material Investments or Capital Assets](index=20&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) Except as disclosed in the prospectus, as of June 30, 2024, the Group had no other approved plans for material investments or capital assets - Except as disclosed in the prospectus, the Group had no other approved plans for material investments or capital assets[38](index=38&type=chunk) [Capital Commitments](index=20&type=section&id=Capital%20Commitments) As of June 30, 2024, the Group's capital commitments primarily related to plant and machinery, amounting to approximately HK$1.3 million, a significant decrease from HK$6.0 million at the end of 2023 Capital Commitments | Item | June 30, 2024 (HK$ million) | December 31, 2023 (HK$ million) | | :--- | :--- | :--- | | Commitments for plant and machinery | 1.3 | 6.0 | [Contingent Liabilities](index=20&type=section&id=Contingent%20Liabilities) As of June 30, 2024, the Group had no material contingent liabilities - As of June 30, 2024, the Group had no material contingent liabilities[39](index=39&type=chunk) [Dealings in Listed Securities](index=20&type=section&id=Dealings%20in%20Listed%20Securities) For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[39](index=39&type=chunk) [Events After Reporting Period](index=20&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after June 30, 2024, and up to the date of this report - No significant events occurred after the reporting period and up to the date of this report[39](index=39&type=chunk) [Other Information](index=21&type=section&id=Other%20Information) [Board Committees](index=21&type=section&id=Board%20Committees) The Company has an Audit Committee, Remuneration Committee, and Nomination Committee, all comprising a majority of independent non-executive directors, ensuring independent and effective corporate governance, and fulfilling their respective duties including financial statement review, remuneration policy recommendations, and board composition assessment [Audit Committee](index=21&type=section&id=Audit%20Committee) The Audit Committee, composed of three independent non-executive directors, advises on and monitors the appointment of external auditors, financial statement review, financial reporting procedures, and risk management/internal control systems, having reviewed accounting principles, policies, and financial statements for the period - Composition: Three independent non-executive directors, Mr. Poon Tak Ching (Chairman), Mr. Li Yiu Pui, and Mr. Pang Cheung Wai[40](index=40&type=chunk) - Responsibilities: Advise on and monitor the appointment of external auditors, review of financial statements, financial reporting procedures, risk management, and internal control systems[40](index=40&type=chunk) - Reviewed the Group's accounting principles, practices, financial statements, and related materials for the period[40](index=40&type=chunk) [Remuneration Committee](index=21&type=section&id=Remuneration%20Committee) The Remuneration Committee, comprising one executive director and three independent non-executive directors, is responsible for recommending remuneration policies and structures for directors and senior management, and approving the remuneration packages of individual executive directors - Composition: Four members, including one executive director Ms. Gao Xiumei and three independent non-executive directors Mr. Pang Cheung Wai (Chairman), Mr. Li Yiu Pui, and Mr. Poon Tak Ching[41](index=41&type=chunk) - Responsibilities: Recommend remuneration policies and structures for directors and senior management, and approve remuneration packages for individual executive directors[41](index=41&type=chunk) [Nomination Committee](index=21&type=section&id=Nomination%20Committee) The Nomination Committee, consisting of one executive director and three independent non-executive directors, reviews board composition, formulates director nomination and appointment procedures, assesses the independence of independent non-executive directors, and develops succession plans for executive directors and senior executives - Composition: Four members, including one executive director Ms. Gao Xiumei and three independent non-executive directors Mr. Li Yiu Pui (Chairman), Mr. Poon Tak Ching, and Mr. Pang Cheung Wai[42](index=42&type=chunk) - Responsibilities: Review board composition, formulate procedures for director nomination and appointment, assess the independence of independent non-executive directors, and develop succession plans for executive directors and senior executives[42](index=42&type=chunk) [Corporate Governance](index=22&type=section&id=Corporate%20Governance) The Company generally complied with the Corporate Governance Code during the reporting period, despite the Chairman and Chief Executive Officer positions being held by the same person, an arrangement the Board believes facilitates unified leadership and efficient decision-making with sufficient checks and balances; the Company maintained a sufficient public float, and directors' securities transactions complied with the standard code [Compliance with Corporate Governance Code](index=22&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The Company complied with the Corporate Governance Code during the reporting period, except for the Chairman and Chief Executive Officer positions being held by Ms. Gao Xiumei, which does not comply with Code Provision C.2.1; the Board believes this arrangement facilitates unified leadership, efficient decision-making, and execution, with sufficient checks and balances from three independent non-executive directors - Compliance status: The Company has complied with the Corporate Governance Code, except for the Chairman and Chief Executive Officer positions being held by the same person[43](index=43&type=chunk) - Exception: Ms. Gao Xiumei holds both Chairman and Chief Executive Officer positions, not complying with Code Provision C.2.1[43](index=43&type=chunk) - Board's explanation: This arrangement facilitates unified leadership, efficient decision-making, and execution, with sufficient checks and balances provided by the three independent non-executive directors[43](index=43&type=chunk) [Sufficiency of Public Float](index=22&type=section&id=Sufficiency%20of%20Public%20Float) For the six months ended June 30, 2024, and up to the date of this report, the Company has maintained a sufficient public float of not less than 25% of its total issued shares as required by the Listing Rules - The Company has maintained a sufficient public float of not less than **25%** of its total issued shares as required by the Listing Rules[44](index=44&type=chunk) [Standard Code for Securities Transactions by Directors](index=22&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions, and all directors confirmed compliance with this code during the reporting period - The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions[45](index=45&type=chunk) - All directors confirmed compliance with the required standards set out in the Standard Code during the reporting period[45](index=45&type=chunk) [Dividend Distribution](index=23&type=section&id=Dividend%20Distribution) The Board of Directors has resolved to declare an interim dividend of 1.42 HK cents per share for the six months ended June 30, 2024, to be paid on or about October 29, 2024 Interim Dividend | Item | 2024 (HK cents/share) | 2023 (HK cents/share) | | :--- | :--- | :--- | | Proposed interim dividend | 1.42 | 1.72 | - The dividend will be paid on or about **October 29, 2024**, to shareholders whose names appear on the Company's register of members on **September 10, 2024**[46](index=46&type=chunk) [Closure of Register of Members](index=23&type=section&id=Closure%20of%20Register%20of%20Members) To be eligible for the interim dividend, the Company's register of members will be closed from September 5, 2024, to September 10, 2024, with all share transfer documents required to be lodged by 4:30 p.m. on September 4, 2024 - Dates for closure of register of members: **September 5, 2024, to September 10, 2024** (both days inclusive)[47](index=47&type=chunk) - Deadline for lodging share transfer documents: **4:30 p.m. on September 4, 2024**[47](index=47&type=chunk) [Publication of Results](index=23&type=section&id=Publication%20of%20Results) This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and published on relevant websites in due course - The interim results announcement has been published on the HKEX website (www.hkex.com.hk) and the Company's website (http://www.botny.com)[48](index=48&type=chunk) - The interim report will be dispatched to the Company's shareholders and published on the HKEX and Company websites in due course[48](index=48&type=chunk) [Board of Directors](index=23&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Board of Directors comprises four executive directors and three independent non-executive directors - Executive Directors: Ms. Gao Xiumei, Ms. Lian Xinli, Mr. Lian Xinglong, and Mr. Yang Xiaoye[49](index=49&type=chunk) - Independent Non-executive Directors: Mr. Li Yiu Pui, Mr. Poon Tak Ching, and Mr. Pang Cheung Wai[49](index=49&type=chunk)

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].