Revenue and Profit Performance - Revenue for the six months ended June 30, 2024, increased to HKD 8,638,244 thousand, up from HKD 8,109,913 thousand in the same period in 2023[3] - Gross profit rose to HKD 1,704,498 thousand in 2024, compared to HKD 1,297,850 thousand in 2023[3] - Net profit attributable to the company's owners increased to HKD 727,797 thousand in 2024, up from HKD 422,244 thousand in 2023[3] - Basic earnings per share improved to HKD 0.233 in 2024, compared to HKD 0.135 in 2023[3] - Total comprehensive income for the period was HKD 594,195 thousand in 2024, a significant improvement from a loss of HKD 412,806 thousand in 2023[4] - The company's revenue increased by 7% year-over-year to HKD 8,638.2 million, with net profit attributable to shareholders rising by 72% to HKD 727.8 million[44][45] - The company's profit before tax for the first half of 2024 was 957,465 thousand HKD, up from 567,288 thousand HKD in the same period of 2023[18][19] - Interim dividend per share increased to 12.0 HK cents for the six months ended June 30, 2024, compared to 6.0 HK cents for the same period in 2023[26] - Basic earnings per share for the six months ended June 30, 2023, were 422,244 thousand HKD[27] Assets and Liabilities - Total assets as of June 30, 2024, stood at HKD 15,257,432 thousand, up from HKD 14,975,237 thousand as of December 31, 2023[6] - Cash and cash equivalents increased to HKD 2,761,388 thousand as of June 30, 2024, compared to HKD 2,027,179 thousand as of December 31, 2023[5] - Trade and other receivables rose to HKD 4,077,349 thousand as of June 30, 2024, up from HKD 3,765,005 thousand as of December 31, 2023[5] - Total liabilities decreased to HKD 6,931,206 thousand as of June 30, 2024, down from HKD 8,362,182 thousand as of December 31, 2023[6] - Non-current assets decreased slightly to HKD 9,371,932 thousand as of June 30, 2024, compared to HKD 9,745,949 thousand as of December 31, 2023[5] - Trade receivables net of credit loss provisions increased to 3,443,792 thousand HKD as of June 30, 2024, from 3,101,157 thousand HKD as of December 31, 2023[30] - Trade payables decreased slightly to 786,377 thousand HKD as of June 30, 2024, from 792,963 thousand HKD as of December 31, 2023[32] - The company's net current assets were approximately HKD 8.362 billion as of June 30, 2024, with a current ratio of 2.21[53] - Total debt as of June 30, 2024, is HK$5,333,319 thousand, compared to HK$4,451,394 thousand as of December 31, 2023[54] Cash Flow - Operating cash flow from business activities for the six months ended June 30, 2024, was HKD 302.74 million, compared to a negative HKD 497.393 million in the same period in 2023[10] - Net cash used in investing activities for the six months ended June 30, 2024, was HKD 159.209 million, a decrease from HKD 267.007 million in the same period in 2023[10] - Net cash from financing activities for the six months ended June 30, 2024, was HKD 590.678 million, down from HKD 699.473 million in the same period in 2023[10] - Net increase in cash and cash equivalents for the six months ended June 30, 2024, was HKD 734.209 million, compared to a net decrease of HKD 64.927 million in the same period in 2023[10] - Cash and cash equivalents at the end of the period were HKD 2,761.388 million, up from HKD 2,027.179 million at the beginning of the period[10] Segment Performance - Revenue from sales of epoxy glass fiber copper-clad panels increased to 5,576,843 thousand HKD in the first half of 2024, up from 4,877,455 thousand HKD in the same period of 2023[15] - Revenue from sales of paper copper-clad panels rose to 719,422 thousand HKD in the first half of 2024, compared to 660,149 thousand HKD in the first half of 2023[15] - Revenue from sales of upstream materials decreased to 1,536,320 thousand HKD in the first half of 2024, down from 1,822,264 thousand HKD in the same period of 2023[15] - Revenue from property sales dropped significantly to 2,791 thousand HKD in the first half of 2024, compared to 109,275 thousand HKD in the first half of 2023[15] - Revenue from sales of special resins increased to 591,481 thousand HKD in the first half of 2024, up from 468,558 thousand HKD in the same period of 2023[15] - Total customer contract revenue reached 8,553,475 thousand HKD in the first half of 2024, compared to 8,051,004 thousand HKD in the first half of 2023[15] - Revenue from the copper-clad panel segment accounted for 8,525,245 thousand HKD in the first half of 2024, representing the majority of the company's total revenue[18] - The copper-clad laminate (CCL) division saw a 16% increase in shipment volume compared to the previous year, with monthly average shipments reaching 8.6 million sheets[46] - The CCL division's revenue grew by 8% to HKD 8,525.2 million, driven by strong demand from the AI and automotive electronics sectors[46] - The real estate division's revenue declined by 64% to HKD 58.4 million, primarily due to a focus on the CCL business[46] Financial Ratios and Metrics - The company's EBITDA increased by 35% to HKD 1,569.7 million, reflecting improved operational efficiency and cost control[45] - The company's net debt ratio decreased slightly from 18% to 17%, indicating a stable financial position[45] - The net working capital turnover period increased to 134 days as of June 30, 2024, from 125 days at the end of 2023, with inventory turnover at 71 days, trade receivables at 93 days, and trade payables at 30 days[53] - The net debt ratio was approximately 17% as of June 30, 2024, with a short-term to long-term borrowing ratio of 60:40[53] - The actual interest rate on bank borrowings as of June 30, 2024, is 4.45%, down from 5.59% as of December 31, 2023[55] Investments and Capital Expenditures - The company's total investment in debt and equity instruments stood at HKD 2,041.161 million as of June 30, 2024, representing 8% of total assets[47] - The company provided bank mortgage guarantees of approximately HKD 10.1 million for property buyers, down from HKD 12.4 million at the end of 2023[42] - The company's contracted but not yet provided capital expenditures for property, plant, and equipment increased to HKD 79.342 million from HKD 33.867 million at the end of 2023[41] - The company recognized an impairment loss of HKD 742,000 on Guangzhou R&F Properties' debt instruments under the expected credit loss model, with a cumulative credit loss of HKD 187,513,000[49] - The bond investment portfolio had a fair value of HKD 91,361,000 and a corresponding investment cost of HKD 347,705,000 as of June 30, 2024, with interest income increasing by approximately 289% to HKD 4,751,000 compared to the same period in 2023[50] - Dividend income from equity instruments at fair value through profit or loss was HKD 49,794,000, while fair value changes resulted in a loss of HKD 53,424,000 during the period[51] - The company invested approximately HKD 200 million in new production facilities during the period[53] - Additions to property, plant, and equipment amounted to 195,371 thousand HKD for the six months ended June 30, 2024, down from 766,000 thousand HKD in the same period in 2023[29] - Cumulative investment in distributed solar power generation projects as of June 30, 2024, is HK$420 million, with a total of 37 million kWh of green electricity produced in the first half of 2024[59] - Cumulative investment in heat recovery equipment as of June 30, 2024, is HK$80 million, reducing CO2 emissions by 18,500 tons in the first half of 2024[59] Shareholder Information - The company's directors collectively hold approximately 0.607% of the issued share capital as of June 30, 2024[62] - Hallgain Management Limited holds 2,301,434,000 shares, representing 73.76% of the company's issued share capital[68] - Jamplan (BVI) Limited holds 1,785,000,000 shares, representing 57.21% of the company's issued share capital[68] - Capital Research and Management Company holds 177,205,851 shares, representing 5.68% of the company's issued share capital[68] - Zhang Guohua holds 17,123,820 shares, representing 1.545% of the issued share capital of Kingboard Holdings Limited[66] - Zhang Guoqiang holds 2,610,222 shares, representing 0.236% of the issued share capital of Kingboard Holdings Limited[66] - Zhang Guoping holds 7,236,383 shares, representing 0.653% of the issued share capital of Kingboard Holdings Limited[66] - Lin Jiabao holds 2,500,000 shares, representing 0.226% of the issued share capital of Kingboard Holdings Limited[66] - Zhang Guohua, Zhang Guoqiang, and Zhang Guoping each hold 12,000,000 shares, representing 0.385% of the company's issued share capital[64] - Zhang Jiahao holds 4,000,000 shares, representing 0.128% of the company's issued share capital[64] - Zhou Peifeng holds 2,000,000 shares, representing 0.064% of the company's issued share capital[64] Share Option Plan - The company's share option plan, approved in 2017, remains in effect for ten years from the effective date, with options exercisable within ten years from the grant date[35] - The total number of shares that can be issued upon the exercise of all granted share options under the plan shall not exceed 10% of the total issued shares on the date of approval by shareholders, which is 312,100,000 shares, representing 10.0% of the total issued share capital as of the date of the interim financial report[36] - The maximum number of shares that can be issued upon the exercise of all granted and outstanding share options under the plan and any other share option plans shall not exceed 30% of the company's issued share capital at any time[36] - The total number of shares issued and to be issued upon the exercise of share options granted to participants in any 12-month period shall not exceed 1% of the company's issued share capital at that time, unless approved by shareholders[36] - As of December 31, 2023, the company granted 35,900,000 share options under the plan, with 29,000,000 granted to directors and 6,900,000 to employees. As of December 31, 2023, and June 30, 2024, 72,800,000 share options remained unexercised[40] - The closing price of the company's shares on July 27, 2023, was HK$7.69, and the estimated fair value of the granted share options was HK$48,750,000, with HK$39,780,000 allocated to directors and HK$9,372,000 to employees[40] - The fair value per share option was HK$1.3579, and all options vested on the grant date with no vesting period or performance targets[40] - As of June 30, 2024, the number of share options available for grant under the plan was 196,300,000[40] Operational and Strategic Updates - The company employs approximately 9,900 people as of June 30, 2024, down from 10,000 as of December 31, 2023[58] - The company plans to increase CCL production capacity in Thailand by 400,000 sheets per month in the second half of 2024[59] - The company has successfully developed high-frequency and high-speed products for AI server GPU motherboards[59] - The company's CCL products are benefiting from increased demand due to automotive electronics, AI industry growth, and high-speed network upgrades[59] Accounting and Financial Reporting - The company adopted revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which had no significant impact on the financial performance or position[14] - The company's financial statements are prepared in accordance with Hong Kong Accounting Standards and the Hong Kong Stock Exchange Listing Rules[11] - Historical cost basis is used for the preparation of financial statements, except for investment properties and certain financial instruments measured at fair value[12] - Weighted average number of ordinary shares for basic earnings per share calculation remained constant at 3,120,000 thousand for both 2023 and 2024[28] - Depreciation of property, plant, and equipment was 450,060 thousand HKD in the first half of 2024, slightly lower than 456,200 thousand HKD in the same period of 2023[23] - Income tax expense increased to 228,129 thousand HKD in the first half of 2024, compared to 144,713 thousand HKD in the first half of 2023[24] - The average credit period for purchasing goods remained at 90 days as of June 30, 2024, consistent with the previous year[33]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 8,638.2 million, representing a 7% increase from HKD 8,109.9 million in the same period of 2023[2] - EBITDA for the same period was HKD 1,569.7 million, up 35% from HKD 1,163.1 million year-on-year[2] - Profit before tax increased by 69% to HKD 957.5 million, compared to HKD 567.3 million in the previous year[2] - Net profit attributable to shareholders rose by 72% to HKD 727.8 million, up from HKD 422.2 million in 2023[2] - Basic earnings per share increased by 73% to HKD 0.233, compared to HKD 0.135 in the same period last year[2] - The interim dividend per share was increased by 100% to HKD 0.12, up from HKD 0.06 in 2023[2] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 15,293.4 million, compared to HKD 13,816.9 million at the end of 2023[6] - Cash and cash equivalents increased to HKD 2,761.4 million from HKD 2,027.2 million at the end of 2023[6] - Trade and other receivables rose to HKD 4,077.3 million, up from HKD 3,765.0 million in the previous year[6] - Net debt-to-equity ratio improved to 17% from 18% year-on-year[2] - The total trade receivables as of June 30, 2024, amounted to HKD 3,861,507, with a credit loss allowance of HKD 417,715, resulting in net trade receivables of HKD 3,443,792, compared to HKD 3,101,157 in December 2023[24] Revenue Segments - The company's revenue for the six months ended June 30, 2024, was HKD 5,576,843,000, an increase from HKD 4,877,455,000 in the same period of 2023, representing a growth of approximately 14.3%[12] - The sales of epoxy glass fiber copper-clad laminates reached HKD 719,422,000, up from HKD 660,149,000, indicating a growth of about 8.5%[12] - The revenue from the copper-clad board segment amounted to HKD 8,525,245,000, compared to HKD 7,914,721,000 in the previous year, reflecting an increase of approximately 7.7%[15] - The revenue from customer contracts totaled HKD 8,553,475,000, compared to HKD 8,051,004,000 in the previous year, representing an increase of about 6.2%[12] Costs and Expenses - Interest income from debt instruments rose to HKD 4,751,000, compared to HKD 1,222,000 in the previous year, showing a substantial increase of approximately 288.5%[12] - The company’s financing costs increased to HKD 153,841,000 from HKD 131,689,000, representing a rise of about 16.8%[17] - The total other income, gains, and losses decreased to HKD 48,900,000 from HKD 69,179,000, indicating a decline of approximately 29.3%[16] - Depreciation of property, plant, and equipment for the reporting period was approximately HKD 450,060,000, compared to HKD 456,200,000 for the six months ended June 30, 2023[18] - Income tax expenses for the six months ended June 30, 2024, included corporate income tax in China of HKD 176,617, land appreciation tax of HKD 141, and Hong Kong profits tax of HKD 9,211, totaling HKD 228,129, compared to HKD 144,713 for the same period in 2023[19] Investments and Capital Expenditure - The company invested approximately HKD 195,371,000 in property, plant, and equipment during the reporting period, a decrease from HKD 766,000,000 for the six months ended June 30, 2023[23] - The group invested approximately HKD 200 million in new production facilities during the review period[34] - The group has invested a total of HKD 420 million in solar photovoltaic power generation projects, producing 37 million kWh of green electricity in the first half of 2024, equivalent to saving 10,000 tons of standard coal[36] - The group has invested approximately HKD 80 million in thermal energy recovery equipment, resulting in a reduction of 18,500 tons of carbon dioxide emissions in the first half of 2024[37] Operational Metrics - The copper-clad laminate segment saw a 16% increase in shipment volume, with a monthly average of 8.6 million sheets sold[32] - The segment's revenue increased by 8% to HKD 8,520.5 million, despite rising copper prices[32] - The group employed approximately 9,900 employees as of June 30, 2024, down from 10,000 on December 31, 2023[35] Governance and Oversight - The audit committee has reviewed the accounting policies and practices adopted by the group[43] - The committee discussed the unaudited interim financial report for the six months ending June 30, 2024[43] - The board of directors includes several executive and non-executive members, ensuring diverse oversight[43] - The chairman of the board is Zhang Guohua, indicating strong leadership presence[43] - The company is committed to maintaining internal controls and financial reporting standards[43] - The audit committee's discussions included internal control matters, highlighting a focus on governance[43] - The report is part of the company's ongoing transparency efforts to stakeholders[43] - The financial report is expected to provide insights into the company's performance and future outlook[43] - The company aims to enhance its financial practices through regular reviews and discussions[43] - The date of the report indicates a proactive approach to financial disclosures[43] Sustainability and Future Plans - The group plans to increase copper foil production capacity by 400,000 sheets per month in Thailand in the second half of the year to meet growing overseas customer demand[36] - The group aims to achieve sustainable development goals in environmental, social, and governance (ESG) aspects, with a focus on high-quality continuous development[37] - The group maintains a prudent financial policy and has not entered into any significant derivative financial instruments during the review period[34] - The group benefits from vertical integration and economies of scale, leading to competitive pricing and resilient gross profit margins[36]

Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][4]. Core Insights - The company, a leader in the copper-clad laminate industry, is expected to see a rebound in performance driven by rising copper prices and recovering downstream demand, with projected revenues of HKD 20.94 billion, HKD 23.38 billion, and HKD 24.02 billion for 2024-2026, representing year-on-year growth of 25.0%, 11.6%, and 2.7% respectively [4][8]. - The company has a strong vertical integration capability, maintaining a leading market share of over 15% in the copper-clad laminate industry, which allows it to benefit from cost advantages and pricing power [5][12]. - The cost structure of copper-clad laminates shows that copper foil constitutes 42.1% of the total cost, with the company able to pass on copper price increases to customers, thus enhancing revenue and profit margins [6][29]. Company Overview - The company has established a comprehensive supply chain, producing key raw materials such as glass fiber cloth and epoxy resin, which supports its leading position in the market [5][24]. - The company has a high degree of shareholding concentration, with the parent company holding over 73% of the shares, and a board of directors with extensive industry experience [14][15]. Revenue Structure - The primary revenue source for the company is copper-clad laminates, which accounted for over 70% of total revenue from 2019 to 2023, with epoxy glass fiber laminates making up 61% of this segment in 2023 [17][18]. Market Dynamics - The automotive and home appliance sectors are experiencing strong demand, while the consumer electronics market is showing signs of recovery, positioning the company to benefit from these trends [7][32]. - The company has a diversified customer base, with no single customer contributing more than 3% to total revenue, allowing it to maintain strong pricing power in a high-demand environment [7][11]. Financial Projections - The company is projected to achieve net profits of HKD 1.80 billion, HKD 2.70 billion, and HKD 2.90 billion for 2024-2026, with corresponding P/E ratios of 13.7, 9.1, and 8.5 [4][8].

Financial Performance - Revenue for FY2023 was HK$16,750.2 million, a decrease of 25% from HK$22,363.7 million in FY2022[14]. - EBITDA for FY2023 was HK$2,450.3 million, down 44% from HK$4,378.6 million in FY2022[14]. - Profit before tax for FY2023 was HK$1,276.5 million, a decline of 63% compared to HK$3,451.3 million in FY2022[14]. - Underlying net profit for FY2023 was HK$991.0 million, down 51% from HK$2,002.7 million in FY2022[14]. - Reported net profit for FY2023 was HK$907.4 million, a decrease of 52% from HK$1,909.1 million in FY2022[14]. - Earnings per share based on underlying net profit was HK31.8 cents, a reduction of 50% from HK64.2 cents in FY2022[14]. - The net asset value per share decreased by 1% to HK$4.79 from HK$4.82 in FY2022[14]. - Net gearing increased to 16% in FY2023, up from 7% in FY2022[14]. Segment Performance - The Group's revenue decreased by 25% year-on-year to HK$16,750.2 million, while net profit attributable to owners fell by 51% to HK$991.0 million[21][24]. - The Laminates Division's segment revenue declined by 14% to HK$16,447.8 million, despite a rise in sales of high-end and high-value-added products[22][25]. - EBITDA for the Laminates Division decreased by 21% to HK$2,402.3 million, reflecting pressures from declining gross profit margins due to fierce competition[22][25]. - The Property Division's revenue dropped by 93% to HK$226.8 million, with EBITDA down 96% to HK$57.9 million, as the focus remained on selling remaining units[23][25]. Current Assets and Liabilities - As of December 31, 2023, the Group's net current assets were HK$8,221.6 million, with a current ratio of 2.47, down from 2.91 in the previous year[27]. - The net working capital cycle increased to 125 days from 86 days, with inventory turnover days rising to 71 days[27]. - The Group's net gearing ratio increased to approximately 16% from 7% in the previous year, with investments of approximately HK$700 million in new capacity[27]. - The ratio of short-term to long-term bank borrowings stood at 40%:60%, indicating a shift in financing strategy[27]. Employee and Management - The Group employed approximately 10,000 staff as of December 31, 2023, down from 10,300 the previous year, while offering competitive salary packages and bonuses[29][30]. - The Company has a strong management team with extensive experience in their respective fields, contributing to its operational effectiveness[58][59]. - The remuneration for senior management (excluding Directors) during the year ended December 31, 2023, included 1 individual earning between HK$0 to HK$1,000,000 and 1 individual earning above HK$2,000,001[154]. Sustainability and Environmental Initiatives - The solar photovoltaic power project has received a total investment of HK$300 million, generating 65 million kWh of green electricity per year, equivalent to annual energy savings of 18,000 tons of standard coal and reducing carbon dioxide emissions by 39,000 tons[33]. - The Group has invested about HK$80 million in thermal energy recovery equipment, which reduces carbon dioxide emissions by 37,000 tons annually, equivalent to annual energy savings of 15,000 tons of standard coal[33]. - The total savings from various energy efficiency initiatives exceed HK$230 million annually, reflecting the Group's commitment to sustainable development goals under its ESG mission[33]. - The Group's internal manufacturing facilities operate in compliance with relevant environmental rules and regulations, reflecting its commitment to environmental sustainability[71]. Corporate Governance - The Company has complied with the Corporate Governance Code throughout the year ended December 31, 2023[129]. - The independent non-executive Directors confirmed that the continuing connected transactions were fair and reasonable, benefiting the Company and its shareholders[142]. - The auditor issued an unqualified letter regarding the continuing connected transactions for the year ended December 31, 2023, confirming compliance with the relevant agreements[144]. - The Board currently comprises 11 members, including 4 independent non-executive Directors, ensuring a balance of skills and experience[187]. Future Outlook and Expansion Plans - The Group plans to expand its laminates monthly capacities in Thailand in 2024 by 400,000 sheets to meet development demands[33]. - The copper-clad laminate market is expected to stabilize and rebound as export orders gradually recover, driven by the rapid growth in demand for electric vehicles and related products[34]. - Future expansion plans may face challenges, including upgrading facilities and training personnel, which could adversely affect the Group's business prospects[69]. - The Group's ability to obtain financing for its expansion plans depends on its financial condition and external factors, with no assurance of obtaining adequate funds on acceptable terms[69]. Shareholder Information - An interim dividend of HK6.0 cents per share was declared, and a final dividend of HK10.0 cents per share is recommended for payment on June 18, 2024[80]. - As of December 31, 2023, the total amount of retained profits, share premium, and special reserve of the Company was HK$8,937,896,000, down from HK$9,640,570,000 in 2022[86]. - The Company aims to generate stable interest and dividend income while creating value for the Group and its shareholders[98]. Risks and Challenges - The Group has identified key risks and uncertainties that may materially affect its business operations and financial condition[64]. - Intense competition in the industry poses a risk to the Group's ability to compete successfully against current and emerging competitors[69]. - Recent global market fluctuations and economic conditions, particularly a slowdown in the PRC economy, could lead to a reduction in demand for the Group's products[69].

Financial Performance - Revenue for the fiscal year 2023 was HKD 16,750.2 million, a decrease of 25% from HKD 22,363.7 million in 2022[2] - EBITDA for 2023 was HKD 2,450.3 million, down 44% from HKD 4,378.6 million in the previous year[2] - Profit before tax decreased by 63% to HKD 1,276.5 million from HKD 3,451.3 million in 2022[2] - Basic earnings per share (EPS) dropped to HKD 0.318, a decline of 50% from HKD 0.642 in the prior year[2] - Net profit attributable to shareholders was HKD 991.0 million, a decrease of 51% from HKD 2,002.7 million in the previous year[2] - Total revenue for the year 2023 was HKD 16,750,248, a decrease of 25.3% from HKD 22,363,680 in 2022[12] - The revenue from property sales significantly dropped to HKD 113,592 from HKD 3,064,620, indicating a decline of 96.3%[12] - The copper-clad laminate segment's revenue fell by 14% to HKD 16,478.8 million, with a significant drop in gross margin due to intense competition[33] - The real estate segment's revenue plummeted by 93% to HKD 22.68 million, with profit before tax declining by 96% to HKD 5.79 million[34] - Basic net profit attributable to shareholders dropped by 51% to HKD 990 million[31] Dividends - The company declared a total dividend of HKD 0.160 per share, down 54% from HKD 0.350 in 2022[2] - The group declared an interim dividend of HKD 0.06 per share for the year 2023, compared to HKD 0.15 per share in 2022, with a total proposed final dividend of HKD 312,000,000[24] - The proposed final dividend is HKD 0.10 per share, subject to approval at the 2024 Annual General Meeting[40] Assets and Liabilities - The net debt-to-equity ratio increased to 16% from 7% in 2022[2] - The net asset value decreased to HKD 14,975,237 in 2023 from HKD 15,071,991 in 2022, reflecting a decline of 0.6%[8] - The company’s total liabilities decreased to HKD 8,221,624 in 2023 from HKD 9,013,727 in 2022, a reduction of 8.8%[8] - The company’s total assets less current liabilities stood at HKD 17,967,573, down from HKD 19,592,246, a decrease of 8.3%[8] - The company’s equity attributable to shareholders decreased to HKD 14,951,235 from HKD 15,048,892, a decline of 0.6%[8] Cash Flow and Investments - Cash and cash equivalents decreased to HKD 2,027.2 million from HKD 3,289.9 million in the previous year[7] - The group’s financing costs for the year amounted to HKD 273,694, up from HKD 130,392 in 2022, primarily due to increased bank borrowing interest[20] - The company invested approximately HKD 700 million in new production facilities during 2023, aiming for long-term stable returns for shareholders[36] - The company has invested HKD 300 million in distributed solar photovoltaic power generation projects, expected to produce 65 million kWh of green electricity annually, saving 18,000 tons of standard coal and reducing CO2 emissions by approximately 39,000 tons[38] - The company has invested around HKD 80 million in heat recovery equipment, which is expected to reduce CO2 emissions by 37,000 tons annually, equivalent to saving 15,000 tons of standard coal, and saving approximately HKD 80 million in expenses each year[38] Market and Future Outlook - The company anticipates a gradual rebound in the copper-clad laminate market, driven by increasing demand for new energy vehicles and related products, as well as the widespread adoption of clean energy and AI technologies[38] - By December 31, 2024, the company plans to increase total investment to approximately HKD 600 million, projecting an annual production of 130 million kWh of green electricity, saving 36,000 tons of standard coal and reducing CO2 emissions by 78,000 tons[38] - The company will increase copper-clad laminate production capacity in Thailand by 400,000 sheets per month in 2024 to align with its development pace[38] Financial Reporting and Governance - The company has agreed with Deloitte to publish the consolidated financial statements for the year ending December 31, 2023, which will be approved by the board on March 18, 2024[46] - The financial statements will include the consolidated balance sheet, consolidated income statement, and other comprehensive income statements[46] - Deloitte's work does not constitute an assurance engagement, and they will not express any opinion or guarantee conclusions on the preliminary announcement[46] - The board of directors includes several executive and non-executive members, indicating a diverse leadership structure[46] - The announcement date is set for March 18, 2024, which aligns with the company's financial reporting schedule[46] - The company is preparing for the upcoming financial year with a focus on transparency and compliance with auditing standards[46] - The company is maintaining its relationship with Deloitte for auditing purposes, ensuring credibility in its financial reporting[46] - The announcement reflects the company's commitment to adhering to regulatory requirements and best practices in financial disclosures[46]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 8,109,913 thousand, a decrease from HKD 13,175,953 thousand in the same period of 2022, representing a decline of approximately 38.5%[3] - Gross profit for the period was HKD 1,297,850 thousand, down from HKD 4,003,117 thousand in 2022, indicating a decrease of about 67.6%[3] - Profit for the period attributable to equity holders was HKD 422,575 thousand, compared to HKD 1,826,075 thousand in the previous year, reflecting a decline of approximately 76.8%[4] - Basic and diluted earnings per share for the period were HKD 0.135, down from HKD 0.585 in 2022, a decrease of about 77%[3] - The company reported a total revenue of HKD 1,514,572,000 for the six months ended June 30, 2023, compared to HKD 2,131,768,000 in the same period of 2022[8] - The company experienced a significant decline in net profit, reporting a loss of HKD (788,433,000) for the first half of 2023, compared to a profit in the previous year[10] - Basic net profit attributable to shareholders dropped by 77% to HKD 422.2 million, down from HKD 1,873.9 million year-on-year[46] Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 14,622,791 thousand, an increase from HKD 13,721,293 thousand at the end of 2022, representing a growth of approximately 6.6%[5] - Current liabilities decreased to HKD 6,215,503 thousand from HKD 4,707,566 thousand, indicating an increase of approximately 32.0%[6] - The net asset value decreased to HKD 14,035,185 thousand from HKD 15,071,991 thousand, a decline of about 6.9%[6] - The total trade receivables, net of credit loss provisions, as of June 30, 2023, is HKD 2,743,374,000, compared to HKD 3,140,288,000 as of December 31, 2022, reflecting a decrease of approximately 13%[33] - The total trade payables as of June 30, 2023, is HKD 834,332,000, down from HKD 964,300,000 as of December 31, 2022, indicating a reduction of about 14%[36] Cash Flow - The company reported a net cash outflow from operating activities of HKD (497,393,000) for the six months ended June 30, 2023, compared to a net inflow of HKD 2,477,352,000 in the same period of 2022[10] - The net cash outflow from investing activities was HKD (267,007,000) for the first half of 2023, compared to HKD (500,369,000) in the previous year[10] - Financing activities generated a net cash inflow of HKD 699,473,000 in the first half of 2023, contrasting with a net outflow of HKD (375,185,000) in the same period of 2022[10] - The company's cash and cash equivalents decreased by HKD (64,927,000) during the first half of 2023, compared to an increase of HKD 1,601,798,000 in the previous year[10] - As of June 30, 2023, the company had cash and cash equivalents of HKD 3,225,026,000, down from HKD 4,466,687,000 at the end of June 2022[10] Segment Performance - Sales of copper-clad laminates amounted to HKD 4,877,455,000, down 32.2% from HKD 7,190,895,000 in the previous year[14] - The revenue from the property segment was HKD 164,163,000, a significant decline from HKD 2,729,936,000 in the same period last year[21][22] - The group reported a profit from the copper-clad laminate segment of HKD 703,396,000, down 61.6% from HKD 1,830,156,000 in the previous year[21][22] - The real estate segment's revenue declined by 94% to HKD 164.2 million, with profit before interest, tax, depreciation, and amortization dropping by 95% to HKD 6.78 million[47] Strategic Focus and Future Plans - The company plans to focus on new product development and market expansion strategies to improve future performance[1] - The company indicated plans for market expansion and new product development, although specific figures were not disclosed in the conference call[8] - The company is focusing on enhancing its operational efficiency and exploring strategic partnerships to improve financial performance moving forward[8] - The company is focusing on expanding its product portfolio with high-end, environmentally friendly CCL products, which are gaining a significant sales share[47] - The group anticipates a recovery in customer confidence and an increase in export orders, particularly in the electric vehicle and clean energy sectors[58] Shareholder Information - The company reported a total of 2,301,434,000 shares held by Hallgain Management Limited, representing 73.76% of the issued share capital[69] - The company has a significant shareholder, Hallgain, which holds 41.33% of the interests in the controlling group[70] - The major shareholders include Jamplan (BVI) Limited, which holds 1,785,000,000 shares, accounting for 57.21% of the issued share capital[69] - The company’s chairman, Mr. Zhang Guohua, holds 15,740,320 shares, representing 1.42% of the issued share capital[67] Corporate Governance - The board of directors includes five executive directors and four independent non-executive directors, ensuring a diverse governance structure[74] - The company has complied with the corporate governance code principles as per the Hong Kong Stock Exchange listing rules during the reporting period[72] - The company has confirmed compliance with the standard code of conduct for directors' securities transactions during the reporting period[72]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 8,109.9 million, a decrease of 38% compared to HKD 13,176.0 million in the same period of 2022[2] - Gross profit for the same period was HKD 1,297.9 million, down 68.7% from HKD 4,003.1 million year-on-year[4] - Profit attributable to equity holders for the six months was HKD 422.2 million, representing a 77% decline from HKD 1,873.9 million in 2022[2] - Basic earnings per share decreased to HKD 0.135, down 77% from HKD 0.585 in the previous year[4] - Total comprehensive income for the period attributable to equity holders was HKD (412.4) million, compared to HKD 1,077.4 million in the same period last year[7] - The total profit before tax for the six months ended June 30, 2023, was HKD 567,288, compared to HKD 2,819,638 for the same period in 2022, indicating a significant decrease of approximately 79.9%[18] - The income tax expense for the six months ended June 30, 2023, was HKD 149,672, a decrease from HKD 998,256 for the same period in 2022, indicating a decline of approximately 85.0%[22] Dividends and Shareholder Returns - The interim dividend per share was HKD 0.060, a reduction of 60% compared to HKD 0.150 in 2022[2] - The interim dividend declared for the six months ending June 30, 2023, is HKD 0.06 per share, compared to HKD 0.15 per share for the same period in 2022[26] Assets and Liabilities - Net asset value per share decreased to HKD 4.49, down 15% from HKD 5.26 at the end of 2022[2] - The net asset value decreased to HKD 14,035,185,000 from HKD 15,071,991,000 year-over-year, reflecting a decline of approximately 6.9%[10] - The company’s total liabilities increased to HKD 4,080,757,000 from HKD 4,520,255,000, indicating a reduction of about 9.7%[10] - The group’s total liabilities related to trade and other payables were HKD 2,713.8 million as of June 30, 2023, down from HKD 3,018.7 million as of December 31, 2022[32] Revenue Breakdown - Sales of epoxy glass fiber copper-clad laminates amounted to HKD 4,877,455,000, down 32.2% from HKD 7,190,895,000 in the previous year[15] - For the six months ended June 30, 2023, the total revenue from the copper panel segment was HKD 7,914,721, a decrease from HKD 10,420,020 for the same period in 2022, representing a decline of approximately 24.2%[18] - The real estate segment's revenue dropped by 94% to HKD 16.42 million, primarily due to reduced sellable inventory[37] Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2023, were HKD 3,225.0 million, slightly down from HKD 3,289.9 million at the end of 2022[9] - The group maintained a healthy financial position with net cash of HKD 1,151.7 million[39] - The current ratio decreased to 2.35 from 2.91 as of December 31, 2022, indicating a decline in liquidity[38] Strategic Focus and Future Plans - The company plans to focus on new product development and market expansion strategies moving forward[3] - The company plans to focus on expanding its manufacturing and sales of copper-clad laminates as part of its future strategy[17] - The company continues to explore opportunities for mergers and acquisitions to enhance market presence and operational capabilities[17] - The company aims to enhance profitability by increasing external sales of upstream material products[41] Production and Capacity - The company has increased copper foil production capacity by 450 tons per month in Lianzhou, Guangdong, and plans to add an additional 300 tons per month in the second half of the year[41] - The company will also increase copper clad laminate production capacity by 400,000 sheets per month in Thailand in the second half of the year[41] Market Conditions and Customer Insights - Customer confidence is gradually recovering, with shipment volumes expected to rebound in the second half of the year[41] - The demand for new energy vehicles and related products, such as charging piles, is rapidly growing, contributing to market recovery[41] Cost and Efficiency - The prices of raw materials have significantly decreased, which is expected to improve gross margins in the second half of the year[41] - The company emphasizes quality as a prerequisite and cost reduction as a requirement for sustainable development[41] Recognition and Quality Assurance - The company has received recognition for the quality of its upstream material products from external customers[41] - The management is confident in the stable quality and timely delivery of copper clad laminate products, gaining increasing customer preference[42]

Financial Performance - Revenue for FY2022 decreased by 22% to HK$22,363.7 million from HK$28,799.8 million in FY2021[9]. - EBITDA for FY2022 fell by 52% to HK$4,378.6 million compared to HK$9,200.3 million in FY2021[9]. - Profit before tax for FY2022 dropped by 59% to HK$3,451.3 million from HK$8,386.9 million in FY2021[9]. - Underlying net profit attributable to owners decreased by 70% to HK$2,002.7 million in FY2022, down from HK$6,781.7 million in FY2021[9]. - Reported net profit for FY2022 was HK$1,909.1 million, a 72% decline from HK$6,781.7 million in FY2021[9]. - Full-year dividend per share was reduced by 77% to HK$35.0 cents from HK$150.0 cents in FY2021[9]. Division Performance - The Property Division experienced significant revenue growth due to increased residential property deliveries[20]. - The Group's laminate sales and unit prices declined during FY2022 due to geopolitical tensions and global inflation[20]. - Despite challenging market conditions, the Group achieved an underlying profit of over HK$2 billion[20]. - The Laminates Division's revenue dropped 32% to HK$19,134.3 million, while EBITDA decreased by 65% to HK$3,047.7 million due to rising commodity and energy costs[24][27]. - The Property Division's revenue surged 3.4 times to HK$3,170.4 million, with EBITDA increasing 3.7 times to HK$1,576.1 million, driven by increased delivery of residential properties[25][28]. Financial Position - The Group's net current assets as of December 31, 2022, were HK$9,013.7 million, with a current ratio of 2.91, indicating a robust financial position[31][33]. - The net working capital cycle improved to 86 days as of December 31, 2022, down from 102 days in the previous year[32][34]. - The Group's net gearing ratio was approximately 7% as of December 31, 2022, compared to a net cash position in the previous year[32][33]. - Inventory turnover days remained stable at 51 days, while trade receivables turnover days improved to 66 days from 83 days[34]. Investments and Capacity Expansion - The Group invested approximately HK$2.4 billion in new capacity during 2022, aiming for stable long-term returns for shareholders[32][33]. - The new laminates plant in Shaoguan, Guangdong Province, has been fully commissioned, enhancing the group's production capacity in strategic locations[50]. - The group plans to increase monthly capacities of upstream materials by 4,200 tonnes of glass yarn, 1,050 tonnes of copper foil, and 13 million metres of glass fabric in 2023[50]. - An additional monthly capacity of 750 tonnes of copper foil will be introduced in Lianzhou, Guangdong Province, in the first half of 2023[50]. Sustainability and Efficiency - A 5-year sustainability-linked loan facility agreement was signed with 14 banks, resulting in a loan size of HK$7 billion, reflecting the Group's commitment to sustainability[35][38]. - The group is actively deploying big data management and a modernized manufacturing execution system to enhance operational efficiency[51]. - The group aims to establish solar photovoltaic power projects within its facilities, expected to recoup costs within five years while providing long-term benefits[51]. - The company is investing in distributed solar photovoltaic power generation projects across its factories, with a cost recovery expected within five years, contributing to long-term benefits[53]. Market Position and Strategy - The group has achieved consistent growth in market share, supported by a significant cost advantage over peers[51]. - The group is focusing on the development of high-quality laminates, including thin, fire-retardant, high-frequency, and lead-free products[50]. - The group anticipates a new growth cycle in the laminates industry as consumer confidence improves following the relaxation of pandemic measures[50]. - The number of active customers is continuously rising, indicating a growing preference for the company's products[53]. - A successful end-user communication event held in October 2022 has provided strong momentum for future sales[53]. Governance and Management - The company is focused on expanding its board with experienced independent non-executive directors to enhance governance and strategic oversight[79]. - The management team includes individuals with extensive backgrounds in finance and industry, ensuring informed decision-making and strategic direction[85]. - The company is actively involved in various committees, including audit and remuneration, to maintain transparency and accountability in its operations[80]. - The board's diverse expertise spans banking, corporate governance, and international relations, positioning the company for growth in competitive markets[84]. Risks and Challenges - The Group is operating at close to full capacity in its existing glass epoxy laminates production plants, which limits its ability to grow without acquiring additional production capacity[95]. - Future expansion plans require additional funding and management resources, and the Group's ability to obtain financing will depend on its financial condition and external market factors[101]. - The Group faces intense competition in its industry, which may adversely affect its financial condition and business prospects if it fails to compete effectively[103]. - Recent global market fluctuations and economic conditions, particularly a slowdown in the PRC economy, could lead to a reduction in demand for the Group's products[104]. Environmental and Compliance - The Group is committed to environmental sustainability and complies with relevant laws and regulations regarding environmental protection[110]. - The Group's environmental policies are regularly reviewed to ensure compliance with relevant regulations and sustainability goals[116]. - The Company has obtained all necessary approvals and permits for its business operations with no significant breaches of laws and regulations[113]. Shareholder Information - The interests of the Directors in the shares of the Company include Mr. Cheung Kwok Wa holding 9,517,000 shares, representing approximately 0.3050% of the issued share capital[173]. - The Directors collectively hold share options amounting to 6,000,000 shares each for several executive directors[177]. - The Company emphasizes the importance of corporate governance and disclosures to balance and moderate investment risks[157]. - The largest customer of the Group was KHL Group, accounting for approximately 18% of total sales[196]. - The second largest customer was Hallgain Group, contributing 2% to total sales[196].

香港交易及結算所有限公司以及香港聯合交易所有限公司對本公佈之內容概 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，概不會就因本 公佈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。 KINGBOARD LAMINATES HOLDINGS LIMITED 建 滔 積 層 板 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1888） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 業 績 公 佈 財務摘要 二零二二年 二零二一年 財政年度 財政年度 變動 百萬港元 百萬港元 22,363.7 28,799.8 -22% 營業額 4,378.6 9,200.3 -52% 未扣除利息、稅項、折舊及 攤銷前盈利* 除稅前溢利* 3,451.3 8,386.9 -59% 本公司持有人應佔純利 * 2,002.7 6,781.7 -70% －基本純利 1,909.1 6,781.7 -72% －賬面純利 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 13,175,953, a decrease of 5.3% compared to HKD 13,919,956 in the same period of 2021[3] - Gross profit for the same period was HKD 4,003,117, down 15.2% from HKD 4,723,013 in 2021[3] - Profit for the period attributable to equity holders was HKD 1,825,883, a decline of 45.5% compared to HKD 3,356,539 in 2021[3] - Basic earnings per share decreased to HKD 0.585 from HKD 1.076, representing a drop of 45.6%[3] - Total comprehensive income for the period was HKD 1,076,406, down 70.0% from HKD 3,588,939 in the previous year[4] - The group reported a profit before tax of HKD 2,819,638, compared to HKD 4,111,352 in the previous year, reflecting a decrease of 31.4%[21][23] - The group’s revenue from upstream materials sales was HKD 1,879,190, an increase of 7.9% from HKD 1,740,739 in the previous year[17] - The group recorded a credit impairment provision of HKD 181.7 million for its bond investments during the review period[46] Cash Flow and Assets - The company reported a net cash inflow from operating activities of HKD 2,477,352, an increase from HKD 2,271,026 in the previous year[12] - The net cash used in investing activities was HKD (500,369), compared to a cash inflow of HKD 160,975 in the prior year[12] - The net cash used in financing activities was HKD (375,185), a significant decrease from HKD (4,309,286) in the previous year[12] - The total cash and cash equivalents at the end of the period increased to HKD 4,466,687 from HKD 3,032,680 year-over-year[12] - The company reported a significant increase in total assets to HKD 16,291,001 as of June 30, 2022, compared to HKD 14,388,000 in the previous year[10] - The group’s total liabilities increased to HKD 3,119.34 million from HKD 3,335.13 million year-on-year, indicating a slight decrease[36] - The group’s total assets as of June 30, 2022, were reported at HKD 8,214.55 million, down from HKD 10,883.07 million year-on-year, a decline of 24.5%[33] Market and Product Development - The company plans to focus on new product development and market expansion strategies to improve future performance[2] - The company plans to expand its market presence and invest in new technologies to enhance operational efficiency[11] - The group has strategically expanded its copper-clad laminate production facilities in Shaoguan, Guangdong, which are now fully operational[62] - The group aims to enhance production efficiency through the adoption of modern manufacturing execution systems (MES) and big data management[62] Shareholder and Governance Information - The company reported a total of 2,301,434,000 shares outstanding, representing 73.76% of the issued share capital as of June 30, 2022[71] - Major shareholder Hallgain Management Limited holds 2,301,434,000 shares, accounting for 73.76% of the total issued shares[71] - The company has adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange Listing Rules during the reporting period[73] - The company’s audit committee has reviewed the accounting policies and practices adopted by the group for the six months ending June 30, 2022[73] Dividends and Share Options - The interim dividend declared for the six months ended June 30, 2022, is HKD 0.15 per share, down from HKD 0.30 per share in the previous year[29] - The estimated fair value of the options granted is HKD 48,000,000, with HKD 37,724,000 attributed to directors and HKD 10,276,000 to employees[40] - The options have a validity period of 10 years from the grant date[41] Financial Position and Debt - The group has significant financial guarantees amounting to HKD 107.2 million as of June 30, 2022, down from HKD 215.1 million at the end of the previous year[43] - The total net debt-to-capital ratio of Guangzhou R&F Properties increased from 130% as of December 31, 2021, to 146% as of June 30, 2022[52] - The actual interest rates for bank borrowings ranged from 1.95% to 3.75% as of June 30, 2022, compared to 1.18% to 3.35% as of December 31, 2021[58] Employee and Operational Metrics - The group employed approximately 10,700 staff as of June 30, 2022, up from 9,900 staff as of December 31, 2021[61] - The group has increased its glass fiber production capacity by 4,200 tons per month and copper foil production capacity by 300 tons per month in Guangdong Province[62]