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

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

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

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

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等內容 而引致之任何損失承擔任何責任。 PRECIOUS DRAGON TECHNOLOGY HOLDINGS LIMITED 保 寶 龍 科 技 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1861） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 年 度 業 績 年度業績 保寶龍科技控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司及 其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度（「報告期間」）的 綜合財務業績，連同截至二零二一年十二月三十一日止年度的比較數字。 ...

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

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

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].