Revenue Performance - For the six months ended June 30, 2021, the group recorded revenue of approximately HKD 287.0 million, a decrease of about 16.6% compared to HKD 344.1 million for the same period in 2020[15]. - Revenue from Chinese customers was approximately HKD 210.0 million, a slight increase of about 0.4% from HKD 209.1 million in the same period of 2020[15]. - Revenue from overseas customers decreased significantly to approximately HKD 77.0 million from HKD 135.0 million in the same period of 2020, primarily due to the ongoing impact of the COVID-19 pandemic and increased shipping costs[15]. - The automotive beauty and maintenance products segment generated revenue of HKD 243,423 thousand, while personal care products contributed HKD 43,618 thousand for the six months ended June 30, 2021[86]. - The mainland China market accounted for HKD 209,994 thousand of total revenue, with Japan contributing HKD 44,676 thousand for the same period[86]. Profitability and Financial Performance - The gross profit for the same period was approximately HKD 77.2 million, a significant decrease of about 37.8% from HKD 124.1 million in 2020, primarily due to the ongoing COVID-19 pandemic and rising raw material costs[17]. - The net profit attributable to the company's owners for the six months ended June 30, 2021, was approximately HKD 7.1 million, a substantial decrease of about 76.3% from HKD 29.9 million in 2020[23]. - The profit before tax was HKD 11.96 million, significantly lower than HKD 60.68 million in the previous year[53]. - The company reported a net cash outflow from investing activities of HKD 50,415,000 for the first half of 2021, compared to HKD 12,749,000 in the same period of 2020[68]. - The company reported a loss of HKD 444,000 from the sale of properties, plants, and equipment in the first half of 2021, compared to a loss of HKD 116,000 in the same period of 2020[66]. Cost and Expenses - For the six months ended June 30, 2021, the group's cost of sales was approximately HKD 209.8 million, accounting for about 73.1% of revenue, an increase of 9.2% compared to the same period in 2020[16]. - Selling and distribution expenses decreased by approximately 17.3% to HKD 21.8 million, attributed to reduced overseas sales and lower transportation costs[20]. - Administrative expenses slightly decreased by about 0.3% to HKD 27.5 million, with increases in employee salaries and benefits offset by reductions in other costs[21]. - Financing costs rose by approximately 44.4% to HKD 1.3 million, mainly due to an increase in average bank loan balances and overall borrowing rates[22]. Assets and Liabilities - As of June 30, 2021, the group held net current assets of approximately HKD 72.9 million, with cash and cash equivalents totaling HKD 156.7 million[26]. - The debt-to-equity ratio as of June 30, 2021, was approximately 38.3%, an increase from 31.3% as of December 31, 2020, due to a decrease in cash and an increase in total borrowings[29]. - Total assets as of June 30, 2021, amounted to HKD 561,075 thousand, compared to HKD 521,275 thousand as of December 31, 2020, indicating a growth of about 7.6%[84]. - Total liabilities as of June 30, 2021, were HKD 322,746 thousand, an increase from HKD 295,551 thousand as of December 31, 2020, representing a rise of approximately 9.2%[84]. Employee and Management Compensation - As of June 30, 2021, the group had 532 employees, with employee costs amounting to approximately HKD 27.0 million, an increase from HKD 21.7 million for the same period in 2020[34]. - Employee benefits expenses, including salaries and wages, totaled HKD 31,353 thousand for the six months ended June 30, 2021, compared to HKD 26,257 thousand in the same period of 2020, reflecting an increase of approximately 19.5%[95]. - Total remuneration for key management personnel amounted to HKD 4,083,000 for the six months ended June 30, 2021, a slight increase from HKD 4,045,000 in the same period of 2020[121]. Strategic Initiatives and Market Outlook - The group is focusing on enhancing its OBM business by increasing brand awareness through sponsorships and multimedia platforms, aiming to expand its customer base[11]. - The company is optimistic about the long-term stability of the Chinese market despite the economic slowdown caused by the COVID-19 pandemic[12]. - The group plans to continue improving its OBM product range and increasing product competitiveness to enhance its business performance[12]. - A strategic acquisition of land in Thailand was made in July 2020 to establish a new production facility, aimed at expanding overseas production capabilities[13]. - The new production facility aims to enhance competitiveness in Asia by benefiting from lower raw material costs and mitigating risks from stricter regulations in China[37]. Share Options and Corporate Governance - The share option plan allows for a total of 7,765,000 shares to be issued, representing approximately 3.3% of the company's issued share capital post-listing[124]. - The company aims to incentivize key management and employees through the share option plan to enhance performance and efficiency[137]. - The audit committee was established on May 27, 2019, to review financial statements and oversee risk management and internal control systems[170]. - The remuneration committee was also established on May 27, 2019, to provide recommendations on the remuneration policies for all directors and senior management[171]. - The company has not granted any share options to directors or major shareholders that exceed 0.1% of the issued shares or have a total value exceeding HKD 5 million without prior shareholder approval[142].

Financial Performance - The total revenue for the group was approximately HKD 665.7 million, an increase of about 18.6% compared to HKD 561.5 million in the previous year[9]. - The profit attributable to the owners of the parent company was approximately HKD 53.2 million, representing a 42.2% increase from HKD 37.4 million in the previous year[9]. - Gross profit increased to approximately HKD 223.5 million, a rise of about 36.1% from HKD 164.2 million in 2019, with a gross margin improvement to approximately 33.6% from 29.2%[25]. - Net profit for the period was approximately HKD 63.6 million, representing a substantial increase of about 66.9% from HKD 38.1 million in 2019, attributed to improved operational management and cost control[29]. - The group recorded a revenue of approximately HKD 665.7 million for the reporting period, an increase of about 18.6% compared to HKD 561.5 million in 2019[20]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.0245 per share, consistent with the previous year's dividend[10]. - The company has adopted a dividend policy prioritizing cash distribution to shareholders based on financial performance, operational needs, and capital requirements[98]. - The company maintains open communication with shareholders through annual and interim performance reports, and other announcements on the stock exchange[99]. Acquisitions and Strategic Developments - The company completed the acquisition of the remaining 30% equity in Eurasia Aerosol and Daily Chemical Products Manufacturing Co., Ltd. on December 29, 2020, resulting in full ownership[13]. - The company strategically acquired land in Thailand in July 2020 to establish a new production facility, expanding its overseas production base[13]. - The acquisition of a 30% stake in Eurasia Aerosol and Daily Chemical Products Manufacturing Co., Ltd. was completed on December 29, 2020, for a cash consideration of HKD 120 million[47]. Market Outlook and Business Strategy - The company remains cautiously optimistic about its domestic market and original brand manufacturing (OBM) business despite challenges from the COVID-19 pandemic[12]. - The company plans to enhance its OBM business by sponsoring exhibitions, improving existing product lines, and increasing product competitiveness[12]. - The board believes that the integration with Eurasia Aerosol will provide greater flexibility to implement integrated strategies and enhance profitability for shareholders[15]. Operational Performance - The automotive beauty and maintenance products segment generated revenue of approximately HKD 473.9 million, a decrease of about 6.4% from HKD 506.5 million in 2019, primarily due to reduced demand caused by COVID-19 lockdowns[21]. - The personal care products segment saw a significant revenue increase to approximately HKD 191.8 million, up about 248.7% from HKD 55.0 million in 2019, driven by the rapid development and launch of disinfectant products[22]. Expenses and Financial Management - Sales and distribution expenses decreased by about 8.6% to approximately HKD 49.9 million from HKD 54.6 million in 2019, mainly due to reduced transportation and travel costs[27]. - Administrative expenses increased by approximately 23.0% to about HKD 56.1 million from HKD 45.6 million in 2019, driven by higher employee salaries and maintenance costs[28]. - Other income and gains rose to approximately HKD 14.8 million, an increase of about 16.5% from HKD 12.7 million in 2019, primarily due to higher waste sales and government subsidies[26]. Debt and Financial Position - As of December 31, 2020, the group's bank borrowings amounted to approximately HKD 67.8 million, an increase from HKD 40.0 million as of December 31, 2019[32]. - The group's debt-to-equity ratio as of December 31, 2020, was approximately 31.3%, a significant increase from -7.9% as of December 31, 2019[33]. - The group maintained a cash and cash equivalents balance of approximately HKD 165.9 million as of December 31, 2020, compared to HKD 138.4 million in 2019[31]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring high independence and effective decision-making[63]. - The company has adopted a formal and transparent process for the appointment and re-election of directors[65]. - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are held by the same individual[59]. - The audit committee consists of three members, all of whom are independent non-executive directors, ensuring compliance with corporate governance standards[75]. Environmental and Social Responsibility - The company is committed to evaluating its business impact on environmental, social, and governance aspects and has established a risk management system for these areas[112]. - The company adheres to the environmental, social, and governance reporting guidelines set by the Hong Kong Stock Exchange[116]. - The company emphasizes stakeholder engagement and has identified key issues for its operations, including environmental impact and employee rights[126]. - The company is committed to minimizing its environmental impact and adheres to several Chinese environmental regulations, including the Environmental Protection Law and the Water Pollution Prevention Law[134]. Community Engagement and Contributions - The company donated approximately RMB 5.5 million to support community sustainable development during the reporting period[186]. - Total donations in Hong Kong amounted to HKD 134,000, while total donations in China reached RMB 5,464,460[186]. - The company actively engaged in community service and provided support for epidemic prevention efforts, contributing to the supply of medical materials[185]. Employee Management and Training - The group employed a total of 511 employees as of December 31, 2020, up from 481 employees as of December 31, 2019[39]. - A total of 493 employees participated in various training programs, accumulating 16,960 hours of training in 2020, with an overall training participation rate of 99.6%[169]. - Employee turnover rate for males was 16.9% and for females was 22.2%, with an overall turnover rate of 19.4%[161]. Quality Control and Compliance - The company has received multiple quality management certifications, including ISO9001:2015 and ISO14001:2015, for its aerosol products, cleaners, wax products, and insulation coatings[39]. - Quality control procedures are implemented for raw materials, with inspections conducted upon receipt and biannual checks to identify outdated or damaged inventory[176]. - There were no disputes regarding product quality or legal non-compliance related to product liability during the reporting period[181].

Business Overview - The group focuses on manufacturing aerosol and maintenance products for automotive beauty, being a leading manufacturer in China[10]. - The group launched the Bao Bao Long series of automotive beauty and maintenance products under the Bao Ci Li brand, aiming to reposition its corporate image and expand its customer base[11]. - The group actively participates in various exhibitions to strengthen brand promotion and customer relationships[12]. Market Conditions - The ongoing US-China trade war and the COVID-19 pandemic present significant uncertainties for global economic development, impacting the group's strategies[12]. - The group is developing a series of new disinfectant products to meet the demand arising from the COVID-19 pandemic[12]. - The group maintains a cautious yet optimistic outlook on its domestic market and OBM business, focusing on improving existing product lines and controlling costs[12]. Financial Performance - The group recorded a revenue of approximately HKD 344.1 million for the six months ended June 30, 2020, representing a significant increase of about 19.7% compared to HKD 287.4 million for the same period in 2019[13]. - Revenue from Chinese customers was approximately HKD 209.1 million, a slight decrease of about 5.2% from HKD 220.5 million in the previous year, primarily due to the impact of COVID-19[13]. - Revenue from overseas customers surged to approximately HKD 135.0 million, up from HKD 66.9 million, driven by increased export sales to a U.S. customer and the development of new disinfectant products[13]. - Gross profit increased significantly to approximately HKD 124.1 million, a rise of about 50.2% from HKD 82.6 million, with the gross profit margin improving from 28.7% to 36.1%[15]. - Net profit for the six months ended June 30, 2020, was approximately HKD 39.7 million, a substantial increase of about 118.1% from HKD 18.2 million in the previous year[21]. Assets and Liabilities - The group maintained a current ratio of approximately 1.7 as of June 30, 2020, compared to 1.9 at the end of 2019[23]. - The group had bank borrowings of approximately HKD 35.9 million as of June 30, 2020, down from HKD 40.0 million at the end of 2019[24]. - The debt-to-equity ratio was approximately 8.5% as of June 30, 2020, compared to -7.9% at the end of 2019[26]. - Total liabilities decreased significantly from HKD 28,641,000 to HKD 8,406,000, a reduction of 70.7%[55]. - The net asset value increased to HKD 308,360,000 from HKD 277,647,000, reflecting a growth of 11.1%[57]. Employee and Management - As of June 30, 2020, the group had 513 employees, an increase from 481 employees as of December 31, 2019, with employee costs amounting to approximately HKD 21.7 million for the six months ended June 30, 2020, compared to HKD 17.7 million for the same period in 2019[31]. - The total employee benefits expenses for the six months ended June 30, 2020, were HKD 26,257,000, compared to HKD 20,286,000 in the previous year, marking an increase of 29.5%[87]. - Total remuneration for key management personnel increased to HKD 4,045,000 for the six months ended June 30, 2020, compared to HKD 813,000 for the same period in 2019, reflecting a substantial increase of approximately 396.0%[104]. Investments and Acquisitions - The group plans to establish a new production facility in Thailand, acquiring land for THB 100,548,075 (approximately HKD 24,800,000), which is expected to diversify its overseas production base and enhance competitiveness in Asia[36][37]. - The group acquired a yacht for GBP 3,650,000 (approximately HKD 38,000,000) on December 23, 2019, to enhance business relationships and promote its services[32]. - The company did not engage in any acquisitions or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2020[40]. Stock Options and Shareholder Information - The group aims to attract and retain qualified participants through its stock option plan, which is designed to enhance performance and efficiency[115]. - The company has a maximum of 23,454,475 shares that may be issued under the stock option plan, which does not exceed 10% of the total shares issued at the time of listing[118]. - The stock option plan was effective from May 17, 2019, and will remain valid for 10 years unless canceled or amended[119]. - Ms. Lian Tai has a total beneficial interest of 175,288,500 shares, representing approximately 75.06% of the issued shares[122]. - Mr. Lian Yunzheng holds 107,788,500 shares, which accounts for 46.15% of the issued shares[125]. Dividends - The company declared a final dividend of HKD 5,722,000 for the six months ended June 30, 2020, with an interim dividend of HKD 4,671,000, compared to HKD 3,284,000 in 2019, reflecting an increase of 42.3%[90]. - The company declared an interim dividend of HKD 0.20 per share for the six months ended June 30, 2020, compared to HKD 0.14 per share for the same period in 2019, representing a 42.86% increase[150]. Corporate Governance - The audit committee was established on May 27, 2019, to review financial statements and oversee risk management and internal control systems[143]. - The remuneration committee was also formed on May 27, 2019, to provide recommendations on the remuneration policies for all directors and senior management[144]. - The nomination committee, established on May 27, 2019, consists of four members, including three independent non-executive directors, ensuring a balanced professional knowledge and experience on the board[146]. - The company has not engaged in any competitive business activities that could pose a conflict of interest as of the report date[131].

Financial Performance - The total revenue for the group was approximately HKD 561.5 million, a decrease of about 8.1% compared to HKD 610.9 million in the previous year[8]. - The net profit for the year was approximately HKD 38.1 million, down about 18.8% from HKD 46.9 million in the previous year[8]. - The automotive beauty and maintenance products segment recorded revenue of approximately HKD 506.5 million, an increase of about 4.5% from HKD 484.9 million in the previous year[19]. - The personal care products division generated revenue of approximately HKD 55.0 million, a significant decrease of about 56.3% compared to HKD 125.9 million in 2018, primarily due to reduced sales to US customers amid US-China trade tensions[20]. - The group's cost of sales was approximately HKD 397.4 million, accounting for about 70.8% of revenue, down from 74.2% in 2018, reflecting a 12.3% decrease due to lower raw material costs and improved production management[21]. - Gross profit increased to approximately HKD 164.2 million, up about 4.2% from HKD 157.6 million in 2018, with the gross margin rising to approximately 29.2% from 25.8%[22]. - Other income and gains decreased by 18.6% to approximately HKD 12.7 million, down from HKD 15.6 million in 2018, mainly due to a significant drop in foreign exchange gains[23]. - Selling and distribution expenses rose by approximately 21.1% to HKD 54.6 million, compared to HKD 45.1 million in 2018, driven by increased transportation and marketing costs[24]. - Administrative expenses increased significantly by about 16.9% to HKD 45.6 million from HKD 39.0 million in 2018, largely due to increased donations and share-based payment expenses[25]. - Net profit for the period was approximately HKD 38.1 million, a decrease of about 18.8% from HKD 46.9 million in 2018, primarily due to higher selling and distribution expenses[26]. Dividend and Shareholder Communication - The board proposed a final dividend of HKD 0.0245 per share, compared to zero in the previous year[9]. - The company has adopted a dividend policy prioritizing cash distributions to shareholders, with decisions based on financial performance and capital needs[90]. - The company emphasizes open communication with shareholders, providing annual and interim performance reports and maintaining compliance with continuous disclosure obligations[91]. Business Strategy and Market Outlook - The group is focusing on enhancing its OBM business and has increased brand awareness activities, including sponsorship of exhibitions and public relations efforts[17]. - The group plans to continue participating in various exhibitions and launching new products to meet market demand, strengthening its brand promotion and customer relationships[11]. - Despite the economic slowdown due to COVID-19, the group maintains a cautious yet optimistic outlook on its domestic market and OBM business[11]. - The group has recorded significant growth in online sales, reflecting the ongoing implementation of e-commerce strategies in China[17]. - The group aims to improve existing OBM product lines, strictly control costs, and enhance brand image to increase product competitiveness[11]. - The group believes in the growth potential of the new Precious Dragon series products, although the establishment of new product lines will take time[17]. 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[47]. - The board consists of four executive directors and three independent non-executive directors, ensuring high independence and effective judgment[54]. - The board of directors consists of seven members, including four executive directors and three independent non-executive directors[55]. - All directors have been appointed for a specified term, with executive directors serving a three-year term starting from June 21, 2019[56]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience in the selection process[64]. - The board has implemented a nomination policy to enhance board diversity and governance standards, evaluating candidates based on qualifications, skills, and experience[65]. - All directors confirmed participation in continuous professional development during the reporting period to enhance their knowledge and skills[58]. - The attendance record for board meetings shows a 100% attendance rate for all directors during the reporting period[67]. - The company has established a succession plan to address potential vacancies on the board due to resignations or other circumstances[65]. - The board meetings can be conducted via telephone or electronic means, ensuring participation from all members[66]. Risk Management - The board has overall responsibility for assessing and determining the nature and extent of risks the group is willing to take to achieve strategic objectives[94]. - The group faces strategic risks related to human resource allocation and maintaining good relationships with government and media, which are mitigated through clear departmental structures and effective management incentives[96]. - Financial risks include potential misuse of funds and compliance issues with accounting regulations, which the group addresses through enhanced accounting controls and budget management[97]. - Operational risks involve ensuring product safety and environmental standards, with the group focusing on monitoring hazards and updating employee training[98]. - Legal risks are managed through contract review processes and regular compliance audits to minimize potential impacts on the group[99]. - The board has conducted an annual review of the effectiveness of the risk management and internal control systems for the year ending December 31, 2019[100]. - The company has engaged a third-party professional organization to audit the design effectiveness and compliance of its internal control systems related to risk management and governance[100]. - The internal control system is designed to provide reasonable assurance against material misstatements or losses, acknowledging inherent limitations[100]. Environmental, Social, and Governance (ESG) Initiatives - The report covers the group's initiatives and performance in environmental and social aspects during the reporting period from January 1, 2019, to December 31, 2019[105]. - The group will continue to assess its business impact on key environmental, social, and governance aspects and include them in future reports[106]. - The report is prepared in accordance with the ESG reporting guidelines set forth by the Hong Kong Stock Exchange[107]. - The company aims to enhance the disclosure of key performance indicators and improve its ESG reporting practices[107]. - The board is responsible for evaluating and determining the group's ESG-related risks and ensuring effective risk management and internal control systems are in place[104]. - The company encourages feedback on its sustainable development measures and has provided contact information for stakeholders[108]. - The company reported total greenhouse gas emissions of 3,285.97 tons during the reporting period, with Scope 1 emissions at 335.14 tons, Scope 2 emissions at 2,933.24 tons, and Scope 3 emissions at 17.59 tons[118]. - The company generated 195.22 tons of waste during the reporting period, consisting of 30.30 tons of hazardous waste and 164.92 tons of non-hazardous waste[120]. - The company emitted 65.33 kg of sulfur dioxide, 60.01 kg of nitrogen oxides, and 4.76 kg of particulate matter as major air pollutants[116]. - The company has committed to using more environmentally friendly propellants, primarily DME and liquefied petroleum gas, in its products[115]. - The company has implemented various environmental measures, including the construction of septic tanks and continuous optimization of wastewater treatment[121]. - The company has established an environmental management system certified to ISO 14001 standards for aerosol and non-aerosol product production[121]. - The company has introduced smart equipment in its workshops to save production materials and labor costs[121]. - The company has conducted approximately 10 industry seminars, 10 exhibitions, and 4 meetings to promote sustainable development in the industry[115]. - The company emphasizes compliance with environmental laws and regulations, with no significant violations reported during the reporting period[121]. Community Engagement and Social Responsibility - The company donated approximately RMB 1,511,000 to support community sustainable development during the reporting period[161]. - The company provided 7,500 medical masks valued at RMB 45,000 to a local charity in response to the COVID-19 outbreak[166]. - The company donated 10,000 disinfectant sprays and 10,000 air disinfectants worth RMB 780,000 to a local charity during the pandemic[166]. - The company actively engages in community investment and has organized various activities for employees, including charity donations and outreach events[161]. Employee Management and Development - Employee turnover rates were 30% for males and 23% for females, with the highest turnover rate of 47% among employees aged 30 or below[137]. - 100% of employees received training during the reporting period, with average training hours of 11.56 for males and 12.34 for females[141]. - The company has established a safety department to comply with labor and safety laws, conducting regular safety training for employees[138]. - No significant non-compliance incidents related to health and safety laws were reported during the period[139]. - The company has a total of 375 suppliers, with 369 from China, 3 from Japan, 2 from Hong Kong, and 1 from South Korea[151]. - The company has not encountered any issues related to child labor or forced labor during the reporting period[145]. - The company is committed to managing environmental and social risks within its supply chain[184]. - The company has a community investment policy to engage with local communities and address their needs[184]. Quality Control and Assurance - The company has established a quality assurance team to implement quality control procedures for suppliers and raw materials[154]. - The company has received multiple certifications for its quality management systems, including ISO9001:2015 and ISO14001:2015[152]. - The company has a policy for handling product complaints and has not faced disputes regarding product quality during the reporting period[163]. - The company conducts random and sampling tests on finished products to ensure quality control[162]. Management and Leadership - The company’s executive director has been with the group since 2000, focusing on business strategy and development[187]. - The company has been expanding its board with experienced directors since 2000, enhancing governance and oversight capabilities[188]. - The procurement and human resources management are overseen by an executive director with over 7 years of experience in aerosol and non-aerosol product development[191]. - The sales and marketing department is led by an executive director who has over 5 years of experience in product design and development, focusing on both domestic and international markets[189]. - The company emphasizes quality control and product development, with a director having over 18 years of experience in aerosol manufacturing and quality management[191]. - Independent directors with extensive experience in corporate management and finance provide independent advice to the board, ensuring diverse perspectives[192][194]. - The company is actively involved in the aerosol industry, with key personnel holding leadership positions in relevant associations and committees[189]. - The board includes members with significant experience in public administration and corporate governance, enhancing strategic decision-making[196]. - The company has a strong focus on training and development, with directors participating in various educational and professional development programs[196]. - The management team is composed of individuals with advanced degrees and professional qualifications, contributing to the company's strategic direction[194]. Corporate Restructuring - The company underwent a restructuring plan in May 2018 to streamline its corporate structure, becoming the holding company for its subsidiaries on May 15, 2019[200]. - The financial manager has been responsible for overseeing the overall management of the company's financial and accounting activities, including strategic planning and budgeting[198]. - The senior sales manager is tasked with managing sales and marketing in the Chinese market, focusing on enhancing service levels and achieving sales targets[198].

Revenue Performance - For the six months ended June 30, 2019, the group recorded revenue of approximately HKD 287.4 million, a slight decrease of about 1.1% compared to HKD 290.6 million for the same period in 2018[14]. - Revenue from Chinese customers was approximately HKD 220.5 million, remaining stable compared to HKD 220.6 million in the previous year, primarily due to an increase in unit selling prices offset by RMB depreciation[14]. - Revenue from overseas customers was approximately HKD 66.9 million, a decrease from HKD 70.0 million in the previous year, influenced by reduced export sales to a U.S. customer and ongoing efforts to develop new clients globally[14]. - Total revenue for the six months ended June 30, 2019, was HKD 287,409,000, a slight decrease from HKD 290,612,000 in the same period of 2018, representing a decline of approximately 1%[49]. - The company's revenue for the six months ended June 30, 2019, was HKD 287,409,000, a slight decrease of 0.7% from HKD 290,612,000 in the same period of 2018[96]. - Revenue from the mainland China market was HKD 220,463,000, representing a decrease of 0.1% compared to HKD 220,628,000 in the previous year[100]. Cost and Profitability - The group's cost of sales for the six months was approximately HKD 204.8 million, representing about 71.3% of revenue, a decrease from 74.2% in the previous year, attributed to lower procurement costs for solvents due to falling crude oil prices[15]. - For the six months ended June 30, 2019, the group recorded a gross profit of approximately HKD 82.6 million, an increase of about 10.2% compared to HKD 74.9 million for the same period in 2018[16]. - The gross profit margin improved from approximately 25.8% for the six months ended June 30, 2018, to about 28.7% for the same period in 2019[16]. - The cost of goods sold for the period was HKD 204,785,000, down from HKD 215,667,000 in the prior year, indicating a reduction of approximately 5.1%[103]. Expenses and Financial Performance - Other income and gains decreased significantly by 35.6% to approximately HKD 5.7 million, down from HKD 8.9 million in the previous year, primarily due to a decline in waste sales and a significant reduction in exchange gains[16]. - Selling and distribution expenses increased by approximately 7.2% to about HKD 25.2 million, compared to HKD 23.5 million for the same period in 2018[19]. - Administrative expenses surged by approximately 35.0% to around HKD 22.9 million, up from HKD 17.0 million in the previous year, mainly due to increased employee costs and professional fees related to the listing[19]. - Financing costs rose by approximately 125.3% to about HKD 1.7 million, compared to HKD 0.7 million for the same period in 2018[20]. - Net profit for the six months ended June 30, 2019, was approximately HKD 18.2 million, a decrease of about 26.7% from HKD 24.9 million in the previous year[21]. - Profit before tax for the period was HKD 26,596,000, down from HKD 29,526,000 in 2018, indicating a decrease of approximately 10%[49]. - The company reported a net profit of HKD 17,633 thousand for the six months ended June 30, 2019, compared to a profit of HKD 22,850 thousand in the same period of 2018, representing a decrease of approximately 22.5%[57]. - The company’s cash flow from operating activities decreased significantly to HKD 8,966 thousand from HKD 63,794 thousand in the previous year, indicating a decline of approximately 86.9%[63]. Financial Position and Ratios - As of June 30, 2019, the group held cash and cash equivalents of HKD 145.0 million, a slight decrease from HKD 147.4 million at the end of 2018[25]. - The group’s current ratio improved to approximately 2.5 as of June 30, 2019, compared to 2.2 at the end of 2018[25]. - The debt-to-equity ratio decreased to approximately 17.1% as of June 30, 2019, down from 34.0% at the end of 2018[28]. - The company's total assets as of June 30, 2019, were HKD 578,276,000, compared to HKD 536,364,000 as of December 31, 2018, reflecting an increase of approximately 8%[51]. - The net asset value increased to HKD 271,202,000 from HKD 228,436,000, marking a growth of about 19%[54]. - The company reported a decrease in trade payables to HKD 54,320,000 from HKD 68,590,000, a reduction of about 21%[51]. - Non-current liabilities decreased significantly from HKD 78,992,000 to HKD 48,572,000, representing a decline of approximately 38%[51]. Share Capital and Options - The company issued 234,544,750 shares as of June 30, 2019, with a share capital of HKD 2,345,000[120]. - The company adopted a pre-IPO share option scheme effective June 21, 2019, with an exercise price of HKD 2.17 per share[131]. - The fair value of the stock options granted under the pre-IPO stock option plan is estimated at approximately HKD 6,023,000, with HKD 113,000 recognized as stock option expenses for the six months ended June 30, 2019[133]. - The stock option plan aims to encourage eligible participants to perform at their best for the benefit of the group and to attract and retain contributors[139]. - The maximum number of shares that may be issued under the stock option plan cannot exceed 10% of the total issued shares at the time of listing, which is 23,454,475 shares[144]. - The exercise price for the options granted under the pre-IPO share option plan is HKD 2.17 per share[161]. - The company has not granted any options under the share option plan as of the report date[171]. Corporate Governance and Compliance - The Audit Committee was established on May 27, 2019, to oversee financial reporting and risk management[173]. - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO[176]. - The company believes that having the same person serve as both Chairman and CEO enhances unified leadership and effective strategic planning[177]. - The company maintained a sufficient public float of at least 25% of the total issued shares as of June 30, 2019[178].