Financial Performance - The company's total revenue exceeded RMB 800 million, representing a year-on-year growth of 12%[16] - Net profit reached RMB 60.8 million, marking a year-on-year increase of 16%[16] - Domestic market sales performance grew by 48% year-on-year, with brand business growth reaching 60%[16] - The company's total revenue exceeded RMB 800 million, representing a year-on-year increase of 12%[35] - Net profit reached RMB 60.8 million, a 16% increase compared to the previous year[35] - Sales revenue in the domestic market increased by 48% year-on-year, with the brand business achieving 60% year-on-year growth[35] Profitability and Expenses - Gross profit increased by approximately RMB 27.7 million or 20.6% to approximately RMB 162.1 million[43] - Gross profit margin improved from approximately 18.7% to approximately 20.1%[43] - Administrative expenses increased by approximately RMB 11.5 million or 17.4% to approximately RMB 77.5 million[44] - Selling and marketing expenses increased by approximately RMB 3.5 million or 14.2% to approximately RMB 28.0 million for the year ended December 31, 2023, from approximately RMB 24.4 million for the year ended December 31, 2022[68]. Taxation - The Group's income tax expense increased by approximately RMB 12.9 million or 345.9% to approximately RMB 16.7 million for the year ended December 31, 2023, from approximately RMB 3.7 million for the year ended December 31, 2022[72]. - The overall effective tax rate of the Group increased from approximately 6.6% for the year ended December 31, 2022, to approximately 21.5% for the year ended December 31, 2023[74]. - The statutory tax rate for operations in Hong Kong was 16.5% for the year ended December 31, 2023, while the rate for operations in the PRC was 25%[94][95]. Research and Development - The Group continues to invest significantly in research and product development, collaborating with Ningbo Institute of Technology, Zhejiang University, to explore new technologies for home fragrance products[59]. - Collaboration with Ningbo Tech University focuses on new technology for home fragrance products, including new nano-materials and portable diffusers[40]. - The Group's strategic focus includes the development of new portable fragrance products and innovative lighting products with fragrance diffusion capabilities[59]. Production and Capacity Expansion - The company is expanding production capacity with a new base in Wuhu, Anhui Province, expected to be operational soon[35]. - The construction of new production facilities aims to enhance product quality and reduce reliance on outsourced subcontracting, particularly for non-standard products[134]. - The Group's production facilities will be equipped with advanced machinery to achieve a more efficient production cycle and comprehensive production lines for fragrance products[134]. - The Group has acquired land in Wuhu City, Anhui Province, with a total site area of approximately 96,000 sq.m. and a construction area of approximately 87,000 sq.m. for warehouses, workshop buildings, and staff quarters, expected to be completed within 2024[134]. Financial Management - The Group's net finance costs decreased by approximately RMB0.1 million or 8.6% to approximately RMB1.4 million for the year ended December 31, 2023, compared to approximately RMB1.5 million for the year ended December 31, 2022[69]. - The Group has arranged its idle cash to invest in low-risk funds and fixed deposits, enjoying a full-year return from these investments for the year ended December 31, 2023[68]. - The Group's financial assets and liabilities at fair value through profit or loss are measured at fair values, reflecting the financial strategy in managing risks[131]. - The Group's management is focused on enhancing corporate governance and operational efficiency, with key personnel overseeing financial and capital operations[120]. Customer and Market Expansion - The Group is actively expanding its customer base, targeting new geographical markets including the United States for sustainable growth[140]. - The Group has secured more purchase orders from existing customers, driving revenue growth for the year[40]. Asset Management - Trade receivables increased by approximately RMB 30.1 million or 24.2%, from approximately RMB 124.1 million as of December 31, 2022, to approximately RMB 154.2 million as of December 31, 2023, in line with revenue growth[81]. - Cash and cash equivalents increased by approximately RMB 40.5 million or 28.3% to approximately RMB 183.8 million as of December 31, 2023, primarily due to proceeds from the redemption of investment funds[83]. - The balance of prepayments, deposits, and other receivables increased by approximately RMB 11.3 million or 53.0% to approximately RMB 32.7 million as of December 31, 2023, mainly due to an increase in recoverable value-added tax[81]. - The net carrying amount of property, plant, and equipment increased by approximately RMB 112.0 million during the year ended December 31, 2023, primarily due to capitalized costs for the construction of production facilities in Wuhu City, Anhui Province[77]. Other Financial Metrics - The Group's other income decreased due to reduced government grants from local authorities in the PRC during the current year[63]. - The Group recorded a small provision for impairment of trade receivables of approximately RMB 3.0 million as of December 31, 2023[81]. - The balance of trade and other payables increased to approximately RMB 1.1 million as of December 31, 2023, from approximately RMB 0.2 million as of December 31, 2022[87]. - The Group's right-of-use assets increased by approximately RMB 1.5 million during the year ended December 31, 2023[77]. - The Group's investment properties were disposed of in the first quarter of 2024 to a connected person[77]. - The Group's financial statements are presented in RMB, which is both the functional and presentation currency of the company[175].

Financial Performance - The company reported a revenue of RMB 806,551 thousand for the year ended December 31, 2023, an increase from RMB 718,675 thousand in 2022, representing a growth of approximately 12.2%[107] - Gross profit for the year was RMB 162,132 thousand, up from RMB 134,395 thousand in the previous year, indicating a gross margin improvement[107] - Net profit for the year was RMB 60,797 thousand, compared to RMB 52,638 thousand in 2022, marking an increase of about 15.5%[107] - Basic earnings per share for the year ended December 31, 2023, was RMB 0.15, compared to RMB 0.13 in 2022, reflecting a growth of 15.4%[28] - Operating profit increased to RMB 78,847 thousand from RMB 57,896 thousand, reflecting a growth of approximately 36.1% year-over-year[107] Assets and Liabilities - As of December 31, 2023, the company reported total assets of RMB 32,662,000, an increase from RMB 21,350,000 in 2022, representing a growth of approximately 53.0%[13] - The company’s total liabilities as of December 31, 2023, were RMB 749,876,000, compared to RMB 674,789,000 in 2022, marking an increase of 11.1%[22] - The total liabilities as of December 31, 2023, were RMB 308,668 thousand, up from RMB 234,808 thousand in 2022, representing a growth of 31.4%[39] - Trade payables reached RMB 104,989 thousand, up from RMB 70,001 thousand, indicating a rise of 50.2% year-over-year[129] - Other payables surged to RMB 52,027 thousand from RMB 7,154 thousand, reflecting a substantial increase of 627.5%[129] Income and Expenses - Employee benefits expenses rose to RMB 83,677,000 in 2023 from RMB 69,608,000 in 2022, reflecting a growth of 20.2%[22] - The company’s income tax expense for the year ended December 31, 2023, was RMB 16,659 thousand, significantly higher than RMB 3,736 thousand in 2022, indicating a rise of 345.5%[8] - Administrative expenses rose by approximately RMB 11.5 million or 17.4% to RMB 77.5 million, primarily due to increased R&D material costs and additional administrative personnel[57] - Selling and marketing expenses increased by approximately RMB 3.5 million or 14.2% from about RMB 24.4 million for the year ended December 31, 2022, to approximately RMB 28.0 million for the year ended December 31, 2023, mainly due to increased labor costs for the sales team to support business growth[85] Cash Flow and Investments - The company had cash and cash equivalents of RMB 183,765 thousand as of December 31, 2023, compared to RMB 143,221 thousand in 2022, indicating an increase of 28.3%[36] - Cash and cash equivalents increased by approximately RMB 40.5 million or 28.3% to RMB 183.8 million as of December 31, 2023, primarily due to the redemption of investment funds[117] - The group has purchased land in Wuhu City, Anhui Province, China, with a total area of approximately 96,000 square meters, including a building area of about 87,000 square meters for warehouses, factories, and employee dormitories, to enhance product quality and reduce reliance on external subcontracting[103] Credit and Risk Management - The expected credit loss rate for receivables over 180 days increased to 21.30% in 2023 from 14.33% in 2022, indicating a significant rise in credit risk[20] - The company’s trade receivables impairment provision increased to RMB 327,000 in 2023 from RMB 217,000 in 2022, indicating a higher level of expected credit losses[15] - Trade receivables recorded a small impairment provision of RMB 3.0 million as of December 31, 2023, based on expected credit loss percentages[113] Strategic Initiatives - The company continues to invest heavily in research and product development, collaborating with Zhejiang University Ningbo Institute of Technology on new technologies[49] - The company plans to expand its product offerings, including new portable and automotive fragrance products, as well as lighting products with fragrance diffusion capabilities[49] - The group is actively exploring the possibility of establishing new production facilities overseas to meet market demand[123] - The company has taken measures to enhance production management, product development, and sales channels to achieve stable revenue growth in a challenging economic environment[53] Other Information - The company did not recommend any final dividend for the year ended December 31, 2023[140] - The external auditor confirmed that the financial data for the year ended December 31, 2023, is consistent with the consolidated financial statements[142] - The audit committee has reviewed the company's performance for the year ended December 31, 2023[143] - The chairman and CEO roles are currently held by the same individual, which the board believes is in the best interest of the company[131] - The company will hold its annual general meeting on June 14, 2024, in Hong Kong[145]

Revenue and Profit Performance - Revenue decreased by approximately RMB62.7 million (17.2%) to RMB302.1 million for the six months ended 30 June 2023, compared to RMB364.7 million for the same period in 2022, primarily due to slight delays in purchase orders from major customers[38] - Revenue for the six months ended 30 June 2023 decreased to RMB 302,076 thousand from RMB 364,748 thousand in the same period in 2022, representing a decrease of approximately 17.2%[166] - Gross profit for the six months ended 30 June 2023 increased slightly to RMB 66,763 thousand from RMB 65,760 thousand in the same period in 2022, reflecting a marginal improvement[166] - Operating profit for the six months ended 30 June 2023 increased to RMB 37,880 thousand from RMB 25,773 thousand in the same period in 2022, representing a significant increase of approximately 47%[166] - Profit for the period attributable to owners of the Company increased to RMB 30,459 thousand from RMB 20,407 thousand in the same period in 2022, reflecting a growth of approximately 49.2%[166] - Earnings per share for profit attributable to owners of the Company increased to RMB 7.5 cents from RMB 5.0 cents in the same period in 2022, representing a 50% increase[168] - Profit for the six months ended June 30, 2023, was RMB 30.459 million, with exchange differences on translation of foreign operations contributing RMB 46,000[198] Expenses and Costs - Administrative expenses decreased by approximately RMB 3.3 million (10.2%) to RMB 29.1 million for the six months ended 30 June 2023, compared to RMB 32.4 million in the same period in 2022, due to more effective operations in the post-COVID-19 era[44] - Selling and marketing expenses increased by approximately RMB 1.7 million (11.0%) to RMB 17.4 million for the six months ended 30 June 2023, compared to RMB 15.7 million in the same period in 2022, driven by increased efforts in sales channels[44] - The Group's net finance costs increased due to higher average bank borrowing levels during the six months ended 30 June 2023[151] - Income tax expenses rose by approximately RMB1.0 million (18.1%) to RMB6.3 million for the six months ended 30 June 2023, driven by higher pre-tax profits[151] - The Group's effective tax rate increased slightly from 20.8% to 21.6% for the six months ended 30 June 2023[151] Assets and Liabilities - Trade receivables aged over 30 days and within 180 days amounted to RMB80,501 as of 30 June 2023[3] - Financial assets at fair value amounted to RMB137,968 as of 30 June 2023, compared to RMB69,533 as of 31 December 2022[5] - Trade and other payables increased by approximately RMB 62.7 million to RMB 146.9 million as of 30 June 2023, compared to RMB 84.2 million as of 31 December 2022, primarily due to the purchase of more raw materials for upcoming production plans in Q3 2023[47] - Trade receivables increased to RMB 148,977 thousand as of 30 June 2023, up from RMB 124,133 thousand as of 31 December 2022[91] - The provision for impairment of trade receivables decreased to RMB 1,628 thousand as of 30 June 2023 from RMB 3,472 thousand as of 31 December 2022[91] - Trade payables increased to RMB 137,968 thousand as of 30 June 2023, compared to RMB 70,001 thousand as of 31 December 2022[106] - Total assets as of 30 June 2023 increased to RMB 737,100 thousand from RMB 662,348 thousand as of 31 December 2022, reflecting a growth of approximately 11.3%[170] - Cash and cash equivalents as of 30 June 2023 increased to RMB 161,206 thousand from RMB 143,221 thousand as of 31 December 2022, representing an increase of approximately 12.6%[170] - Total current liabilities as of June 30, 2023, were RMB 303.427 million, compared to RMB 234.808 million as of December 31, 2022[195] - Total equity and liabilities as of June 30, 2023, amounted to RMB 737.100 million, up from RMB 662.348 million as of December 31, 2022[195] - The company's retained earnings increased to RMB 228.201 million as of June 30, 2023, from RMB 197.742 million as of January 1, 2023[198] - Total equity as of June 30, 2023, was RMB 433.673 million, compared to RMB 427.540 million as of January 1, 2023[198] - Non-controlling interests increased to RMB 667,000 as of June 30, 2023, from RMB 632,000 as of January 1, 2023[198] Income and Other Financial Metrics - Other income decreased by approximately RMB1.4 million (29.1%) to RMB3.3 million for the six months ended 30 June 2023, mainly due to fewer government grants received[23] - Other gains increased by approximately RMB 7.2 million (137.7%) to RMB 12.4 million for the six months ended 30 June 2023, compared to RMB 5.2 million in the same period in 2022, due to foreign exchange gains and fair value gains on investments in funds[44] - Government grants decreased to RMB 1,351 thousand in 2023 from RMB 3,469 thousand in 2022, a significant reduction[60] - Rental income increased to RMB 746 thousand in 2023 from RMB 626 thousand in 2022, while other income rose to RMB 1,242 thousand from RMB 617 thousand[60] - Current income tax expense was RMB 5,706 thousand in 2023, compared to RMB 6,286 thousand in 2022, while deferred income tax was RMB 589 thousand in 2023 versus a deferred tax benefit of RMB 957 thousand in 2022[83] - The Group's other income includes government grants and rental income from leasing a warehouse in Ningbo, Zhejiang Province[23] - Other income decreased by RMB1.4 million (29.1%) from RMB4.7 million for the six months ended 30 June 2022 to RMB3.3 million for the six months ended 30 June 2023, primarily due to reduced government subsidies[148] Investments and Financial Instruments - The Group subscribed to funds totaling RMB 100 million since June 2022, recording a fair value gain on these investments during the six months ended 30 June 2023[44] - The Group subscribed to private funds in China using idle cash totaling RMB100 million and arranged foreign currency forward contracts to manage USD exchange rate exposure[137] - The Group applies the simplified approach under HKFRS 9, recognizing expected lifetime losses from initial recognition of assets, with loss rates based on 36-month sales payment profiles and historical credit losses[71] - The Group does not hold any collateral as security over trade receivables as of 30 June 2023 and 31 December 2022[71] - The fair value of trade receivables approximated their carrying amounts as of 30 June 2023 and 31 December 2022, with sales received according to relevant sales agreements[92] Operational and Production Updates - The Group completed more purchase orders after June 2023 to catch up on the revenue shortfall reflected in the first half of 2023[38] - The company invested approximately RMB 1.9 million in an "Informatisation" project to enhance supply chain and production efficiency, recognized by customers for shortening production time[124] - A new comprehensive production base in Wuhu City, Anhui Province, with a total estimated cost of over RMB 180 million, is expected to commence production in the first half of 2024[124] - The New Yinzhou Plant, operational since 2020, is equipped with advanced automated production equipment and improved logistics solutions[124] - The company successfully maintained its existing customer base and secured purchase orders from new customers in the post-COVID-19 era[124] - Inventory balance increased by RMB 34.9 million (52.9%) to RMB 101.0 million as of 30 June 2023, primarily due to higher raw material stock levels for upcoming production plans in Q3 2023[136] - Trade receivables balance increased by RMB 24.8 million (20.0%) to RMB 149.0 million as of 30 June 2023, mainly due to slight delays in customer purchase orders from Q1 to Q2 2023[136] - A small provision for impairment of trade receivables of approximately RMB 1.6 million was recorded as of 30 June 2023, based on expected credit loss percentages[136] - Most trade receivables were aged within 30 days as of 30 June 2023, with limited bad debt issues experienced over the years[136] - Prepayments, deposits, and other receivables decreased by RMB8.8 million (38.3%) from RMB21.4 million as of 31 December 2022 to RMB12.6 million as of 30 June 2023, mainly due to reduced prepayments to suppliers for raw materials[137] Shareholder and Equity Information - Mr. JIN Jianxin holds 229,146,000 shares, representing 56.57% of the company's share capital, through King Harmony Limited, a wholly-owned entity[53] - King Harmony Limited and DMA Limited are substantial shareholders, holding 56.57% and 13.36% of the company's share capital, respectively[57] - The nominal value of share capital remained unchanged at HK$405,042,000 as of 30 June 2023[4] - No share options were granted, exercised, cancelled, or lapsed under the Scheme as of 30 June 2023[164] - The Board resolved not to declare any interim dividend for the six months ended 30 June 2023[164] - The maximum number of unexercised share options permitted under the Scheme is 40,000,000 Shares, with each eligible participant limited to 1% of the issued Shares within any 12-month period[185] - The company's share option plan allows for a nominal consideration of HKD 1 per option, with the exercise period determined by the Board but not exceeding 10 years from the date of grant[189] - The company paid dividends of RMB 24.407 million during the six months ended June 30, 2023[198] Employee and Salary Information - The Group had 572 employees across China, Australia, and Hong Kong as of 30 June 2023, with total salaries and related costs amounting to RMB23.6 million for the six months ended 30 June 2023[146] - The company had 572 employees in China, Australia, and Hong Kong as of June 30, 2023, with total salary and related costs of approximately RMB 23.6 million for the six months ended June 30, 2023[186] Related Party Transactions - Amounts due from related parties are unsecured, interest-free, and repayable on demand[95] - Rental fees charged by related parties amounted to RMB 3,026 thousand for the six months ended 30 June 2023, compared to RMB 1,088 thousand for the same period in 2022[98] - Amounts due from related parties decreased to RMB 328 thousand as of 30 June 2023, compared to RMB 462 thousand as of 31 December 2022[98] Taxation - The Group's subsidiary in Hong Kong is subject to a two-tiered profits tax regime, with the first HK$2,000,000 of assessable profits taxed at 8.25% and the remaining at 16.5%[83] Property, Plant, and Equipment - Property, plant, and equipment net carrying amounts increased by approximately RMB13.8 million, mainly due to construction costs for a new production base in Wuhu City and depreciation charges[151] - The net carrying amounts of the Group's right-of-use assets decreased by approximately RMB 0.9 million during the six months ended 30 June 2023, mainly due to amortization charges for land use rights and leased properties[120] Cash Flow - Net increase in cash and cash equivalents for the six months ended 30 June 2023 was RMB 29,317 thousand, compared to RMB 48,686 thousand in the same period in 2022[181] Miscellaneous - The Group arranged more borrowings during the six months ended 30 June 2023 to support additional general working capital, aligning with the organic growth of its existing business[47]

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的內容概不 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。 KWUNG’S HOLDINGS LIMITED 曠 世 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1925） 截 至2023年6月30日 止 六 個 月 業 績 公 告 董事會謹此宣佈本集團截至2023年6月30日止六個月的未經審核中期業績。 財務摘要 截至6月30日止六個月 2023年 2022年 變動 人民幣千元 人民幣千元 收入 302,076 364,748 (17.2%) 毛利 66,763 65,760 1.5% 毛利率 22.1% 18.0% 4.1% 本公司擁有人應佔綜合收益總額 30,505 20,217 50.9% 每股盈利（基本及攤薄）（以人民幣分 列示） 7.5 5.0 49.3% ...

Financial Performance - The company reported a consolidated profit of HK$XX million for the fiscal year 2022, representing a YY% increase compared to the previous year[12]. - Total revenue for the year ended December 31, 2022, was approximately RMB 718.7 million, representing a year-on-year growth of approximately 13.8%[200]. - Profit for the same period was approximately RMB 52.6 million, achieving a year-on-year growth of approximately 7.3%[200]. - The comprehensive income for the year was RMB 52,605,000, contributing to the overall equity growth[79]. - The profit for the year was reported at RMB 49,000,000, with comprehensive income totaling RMB 49,038,000, indicating a stable performance[105]. User Growth and Market Expansion - User data showed a growth of ZZ% in active users, reaching a total of AA million by the end of 2022[12]. - Market expansion efforts have led to a YY% increase in sales in the Asia-Pacific region, with total sales reaching HK$GG million[12]. - The company plans to enter the European market in 2023, targeting a revenue contribution of HK$II million within the first year[12]. Product Development and Investment - New product launches contributed to a revenue increase of DD million, accounting for EE% of total sales[12]. - The company is investing HK$FF million in R&D for new technologies aimed at enhancing product offerings[12]. - Investment in brand building and informatization was approximately RMB 8 million, which narrowed the increase in profit[200]. Strategic Acquisitions and Marketing - The company has completed a strategic acquisition valued at HK$HH million, expected to enhance market share and operational efficiency[12]. - A new marketing strategy was implemented, resulting in a 10% increase in customer engagement metrics[12]. Risk Management and Internal Controls - The Board has confirmed that it conducted a review of the risk management and internal control systems of the Group during the year ended December 31, 2022, performed by the internal audit team[39]. - The Board concluded that the current risk management and internal control systems are adequate and effective, with plans for annual reviews[39]. - The Company is focused on maintaining appropriate and effective risk management systems to achieve its strategic objectives[39]. Financial Position and Liabilities - Total liabilities increased to RMB 234,808,000 as of December 31, 2022, up from RMB 171,708,000 in 2021, representing a growth of 36.7%[77]. - Current liabilities rose to RMB 234,808,000, compared to RMB 171,467,000 in the previous year, indicating a 36.9% increase[77]. - The company reported a significant increase in borrowings, which rose to RMB 135,000,000 from RMB 80,000,000, a 68.8% increase year-over-year[77]. Equity and Retained Earnings - Total equity reached RMB 662,348,000 as of December 31, 2022, up from RMB 546,488,000 in 2021, reflecting a growth of 21.1%[77]. - The company's retained earnings stood at RMB 197,742,000 at the end of 2022, compared to RMB 150,342,000 at the beginning of the year, marking an increase of 31.5%[79]. - The total equity attributable to owners of the company was RMB 426,908,000 as of December 31, 2022, compared to RMB 374,206,000 at the start of the year, reflecting a growth of 14.1%[79]. Accounting and Compliance - The consolidated financial statements provide a true and fair view of the Group's financial position as of December 31, 2022, in accordance with HKFRSs[60]. - The auditor's report confirms compliance with the disclosure requirements of the Hong Kong Companies Ordinance[60]. - The audit concluded that there are no material misstatements in the consolidated financial statements[60]. - The company has adopted new accounting standards relevant to its operations, which may impact future financial reporting[87]. - The adoption of new accounting standards and amendments is not expected to have a significant effect on the consolidated financial statements[153]. Asset Management and Impairment - The Group's patents have a finite useful life of 5 to 10 years and are carried at cost less accumulated amortization and impairment losses[57]. - Goodwill and intangible assets with indefinite useful lives are tested annually for impairment, ensuring asset values are accurately reflected[162]. - Impairment losses are recognized when the carrying amount of an asset exceeds its recoverable amount, ensuring financial statements reflect true asset values[162]. - The Group recognizes foreign exchange gains and losses in "Other gains/(losses) – net" in the consolidated statement of profit or loss[131].

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的內容概不 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。 KWUNG’S HOLDINGS LIMITED 曠 世 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1925） 截 至2022年12月31日 止 年 度 的 年 度 業 績 公 告 董事會謹此宣佈本集團截至2022年12月31日止年度的年度業績。 財務摘要 2022年 2021年 變動 人民幣千元 人民幣千元 收入 718,675 631,395 13.8% 毛利 134,395 121,126 11.0% 毛利率 18.7% 19.2% (0.5%) 年內利潤 52,638 49,038 7.3% 每股盈利（基本及攤薄） 13.0分 12.1分 7.3% 年度擬派股息（每股） – – 不適用 ...

Revenue Growth - The company reported a significant increase in revenue, achieving HK$XX million, representing a YY% growth compared to the previous period[23]. - Revenue for the six months ended June 30, 2022, was RMB 364,748,000, representing a 50.2% increase from RMB 242,781,000 in the same period of 2021[93]. - Revenue from candle sales reached RMB 251,742,000, up from RMB 152,650,000 in the previous year, indicating a growth of about 64.8%[148]. - Revenue from home fragrance and home accessories increased to RMB 63,982,000 from RMB 49,024,000, reflecting a growth of approximately 30.4%[148]. User Engagement - User data showed an increase in active users, reaching ZZ million, which is an increase of AA% year-over-year[23]. Future Outlook - The company provided a positive outlook for the next quarter, projecting revenue growth of BB% driven by new product launches and market expansion strategies[23]. - The company is planning to expand its market presence in the Asia-Pacific region, targeting a market share increase of DD% over the next year[23]. Investment and Development - Investment in new technology development increased by CC%, focusing on enhancing product features and user experience[23]. - Recent acquisitions are expected to contribute an additional EE million in revenue, enhancing the company's competitive position[23]. - The Group has invested in intelligent transformation of production lines, achieving breakthroughs in low-temperature production and stability of candle products[29]. - The Group plans to focus on talent cultivation, brand building, and core technology research and development in the second half of the year[33]. Cost Management - Cost management strategies have improved operational efficiency, resulting in a reduction of operational costs by GG%[23]. - The Group achieved a nearly 5% increase in material costs, while the gross profit margin only decreased by 3.3%, and earnings per share increased by 32.5%[32]. Sustainability Initiatives - The management emphasized the importance of sustainability initiatives, aiming for a reduction in carbon footprint by II% over the next three years[23]. Market Presence - The Group's products are sold in over 20 countries, including France, the UK, and Germany, while actively exploring the domestic market and emerging markets since 2022[31]. - The Group's strategic focus includes tapping into undeveloped markets in the USA and consolidating traditional markets in Europe[33]. Financial Performance - The Group's revenue increased by approximately RMB122.0 million or approximately 50.2% to approximately RMB364.7 million for the six months ended 30 June 2022 from approximately RMB242.8 million for the same period in 2021[38]. - The Group's gross profit increased by approximately RMB14.1 million or 27.3% to approximately RMB65.8 million for the six months ended 30 June 2022 from approximately RMB51.7 million for the same period in 2021[38]. - Profit for the period attributable to owners of the Company was RMB 20,407,000, reflecting a 33.8% increase from RMB 15,305,000 in 2021[95]. - Total assets as of June 30, 2022, amounted to RMB 635,230,000, compared to RMB 546,488,000 at the end of 2021, indicating a growth of 16.2%[98]. Expenses and Liabilities - Administrative expenses increased by approximately RMB6.6 million or 25.6% to approximately RMB32.4 million for the six months ended June 30, 2022 from approximately RMB25.8 million for the same period in 2021[41]. - Total liabilities as of June 30, 2022, were RMB 240,443,000, compared to RMB 171,708,000 at the end of 2021, representing a 40.0% increase[102]. Cash Flow and Capital Management - Cash and cash equivalents increased from approximately RMB199.7 million as of December 31, 2021, to approximately RMB248.4 million as of June 30, 2022, to support upcoming construction plans in Wuhu City, Anhui Province[55]. - The company raised net proceeds of approximately RMB 84.1 million from the listing, after deducting listing expenses[62]. - The company plans to use the unutilised net proceeds for the acquisition of land in Wuhu City, Anhui Province, for production capacity expansion[64]. Shareholder Information - As of June 30, 2022, JIN Jianxin held 227,890,000 shares, representing 56.26% of the company's share capital[73]. - DMA Limited, a substantial shareholder, held 54,102,857 shares, accounting for 13.36% of the company's share capital[81]. Risk Management - The Group's financial risk management focuses on credit risk, liquidity risk, and foreign exchange risk, with no changes in risk policies since December 31, 2021[125]. - The Group's overall risk management program seeks to minimize potential adverse effects on financial performance due to market unpredictability[125]. Taxation - The statutory corporate income tax rate applicable to the Group in Mainland China was 25% for the six months ended June 30, 2022, consistent with the previous year[178]. - The Group is entitled to claim 175% of its research and development expenses as tax-deductible expenses, a change from the previous deduction rate of 150%[178].

Financial Performance - The company reported a significant increase in revenue, achieving a total of HK$XXX million, representing a growth of XX% compared to the previous year[12]. - The Group's revenue for the year ended December 31, 2021, was approximately RMB 631.4 million, with a profit of approximately RMB 49.0 million, reflecting a year-on-year revenue growth of 33.7% and profit growth of 20.3% despite the challenges posed by the COVID-19 pandemic[25][37]. - Earnings per share increased by 18.6% year-on-year, demonstrating strong financial performance amid adverse market conditions[25]. - The Group's revenue increased by approximately RMB159.2 million or 33.7% to approximately RMB631.4 million for the year ended 31 December 2021 from approximately RMB472.2 million for the year ended 31 December 2020[50]. - The Group's gross profit increased by approximately RMB13.0 million or 12.0% to approximately RMB121.1 million for the year ended 31 December 2021 from approximately RMB108.1 million for the year ended 31 December 2020[50]. - The Group's gross profit margin decreased to 19.2% for the year ended 31 December 2021 from approximately 22.9% for the year ended 31 December 2020[50]. - The Group's profit for the year ended 31 December 2021 is detailed in the audited financial statements, with no dividend recommended for the year[156]. User Engagement and Market Expansion - User data showed an increase in active users, reaching a total of XXX million, which is an increase of XX% year-over-year[12]. - The company provided a positive outlook for the next fiscal year, projecting revenue growth of XX% and an expected increase in user engagement[12]. - Market expansion plans include entering the Southeast Asian market, targeting a market share of XX% within the next two years[12]. - The Group successfully expanded into Central and Eastern European markets while maintaining traditional markets in Western Europe and Australia[25]. Research and Development - The Group's research and development expenses reached a record high, contributing to enhanced market competitiveness through the development of various flavors and plant sprays with independent intellectual property rights[26]. - The Group has obtained 73 patents as of December 31, 2021, focusing on technological breakthroughs in personal-care products, including essential oils and fragrance depositing[43]. - The Group aims to strengthen research and development capabilities to enrich product offerings and increase competitiveness[95]. Operational Efficiency and Cost Management - Cost management strategies have been implemented, resulting in a reduction of operational costs by XX%[12]. - The introduction of intelligent assembly lines at the Binhai Factory and the preparatory production layout at the Wuhu Factory are expected to significantly improve production capacity in 2022[30]. - The Group is upgrading production equipment and planning new production lines to enhance manufacturing capabilities[47]. - The Group plans to establish a new production base in the PRC to expand production capacity and introduce advanced equipment, targeting location selection in 2022 and completion by the end of 2024[92]. Strategic Acquisitions and Partnerships - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the industry[12]. - The company has established new partnerships to enhance distribution channels, aiming to increase market penetration by XX%[12]. Sustainability Initiatives - Sustainability initiatives are being prioritized, with a commitment to reduce carbon emissions by XX% over the next five years[12]. Employee and Director Information - The total salaries and related costs for employees amounted to approximately RMB 62.9 million for the year ended December 31, 2021[187]. - The Group had 481 employees across the PRC, Australia, and Hong Kong as of December 31, 2021[187]. - Mr. Jin is the chairman and CEO, responsible for executing board resolutions and overseeing daily operations[98]. - The independent non-executive Directors confirmed their independence as per the Listing Rules[168]. Financial Position and Taxation - The Group's financial position as of 31 December 2021 is presented in the audited financial statements, covering assets and liabilities[156]. - The statutory income tax rate for Hong Kong was 16.5% for the year ended December 31, 2021, with the first HK$2,000,000 of assessable profits taxed at 8.25%[67]. - The overall effective tax rate dropped from approximately 15.2% for the year ended 31 December 2020 to approximately 12.6% for the year ended 31 December 2021, mainly due to increased research and development expenses claimed for tax deduction[75]. Future Plans - Future plans include establishing a physical presence overseas to enhance market penetration and better serve major customers[95]. - Upgrading the Group's information system and logistics capacities is planned to enhance operational efficiency[95]. - The establishment of two regional sales offices in Europe is planned, with an expected completion by the end of 2022[161].

Financial Performance - In the first half of 2021, the company reported a revenue of HK$XX million, reflecting a YY% increase compared to the same period last year[25]. - The Group's revenue increased by approximately RMB83.1 million or approximately 52.1% to approximately RMB242.8 million for the six months ended 30 June 2021, compared to approximately RMB159.7 million for the same period in 2020[44]. - Revenue for the six months ended June 30, 2021, was RMB 242,781,000, an increase of 52% compared to RMB 159,662,000 for the same period in 2020[121]. - Gross profit increased by approximately RMB 7.6 million or 17.3% to approximately RMB 51.7 million for the six months ended June 30, 2021, from approximately RMB 44.1 million for the same period in 2020[45]. - Gross profit for the same period was RMB 51,672,000, up from RMB 44,063,000, reflecting a gross margin improvement[121]. - Operating profit increased significantly to RMB 18,125,000, compared to RMB 5,734,000 in the prior year, marking a growth of 216%[121]. - Profit for the period reached RMB 15,250,000, a substantial increase from RMB 4,319,000 in the previous year, representing a growth of 253%[121]. - Total comprehensive income for the period was RMB 15,216,000, compared to RMB 4,390,000 in 2020, indicating a strong performance[126]. Market Expansion and Product Development - The company anticipates a revenue guidance of HK$BB million for the second half of 2021, indicating a projected growth of CC%[25]. - New product launches are expected to contribute an additional HK$DD million in revenue, enhancing market competitiveness[25]. - Market expansion efforts include entering the Southeast Asian market, targeting a market share of FF% by the end of 2022[25]. - The Group's core products, fragrance candles and fragrance diffusers, remain the main focus, with significant increases in both order value and order intake[33]. - The domestic fragrance market is emerging, with increasing consumer interest in fragrance and home products, presenting significant market opportunities[33]. Research and Development - The company is investing in R&D with a budget of HK$EE million, focusing on innovative technologies to drive future growth[25]. - The Group has maintained a strong technical research and development team, optimizing the entire process ingredient system and enriching the types of self-made flavors[33]. - Strengthening research and development capabilities has an allocated budget of RMB 10.348 million, with RMB 454 thousand already utilized, aiming for completion by the end of the first half of 2022[85]. Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2021, were RMB 131,889,000, an increase from RMB 110,735,000 at the end of 2020[130]. - Total assets as of June 30, 2021, amounted to RMB 412,363,000, up from RMB 396,113,000 at the end of 2020[130]. - The balance of retained earnings increased to RMB 120,321, up from RMB 105,043, marking a growth of 14.5%[141]. - Net cash used in operating activities was RMB (935), a significant improvement compared to RMB (14,415) in the previous year[151]. - Net cash generated from investing activities was RMB 24,603, contrasting with a cash outflow of RMB (34,458) in the same period last year[151]. Corporate Governance and Shareholding - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2021, despite not having a separate chairman and chief executive[81]. - As of June 30, 2021, Mr. JIN Jianxin holds 225,800,000 shares, representing 55.75% of the company's share capital[93]. - Mr. RU Liming owns 54,102,857 shares, accounting for 13.36% of the company's share capital[93]. - The total shareholding of Mr. JIN Jianxin and Mr. RU Liming combined is 279,902,857 shares, which is 69.11% of the company's share capital[93]. Risk Management - The Group's overall risk management program focuses on minimizing potential adverse effects on financial performance due to credit risk, liquidity risk, and foreign exchange risk[173]. - The Group's capital management aims to safeguard its ability to continue as a going concern and to maintain an optimal capital structure to reduce the cost of capital[175]. - The Group's activities expose it to various financial risks, and it seeks to minimize these risks to protect its financial performance[173]. Employee and Compensation - The Group had 475 employees across China, Australia, and Hong Kong as of June 30, 2021[110]. - Total salaries and related costs for employees amounted to approximately RMB 16.5 million for the six months ended June 30, 2021[110]. - The company participates in mandatory provident fund retirement benefit schemes in Hong Kong and the central pension scheme in the PRC[110].

Financial Performance - The Group's net profit increased despite a slight decline in business results in 2020 due to the impact of COVID-19[22]. - The Group's revenue for the year ended December 31, 2020, was approximately RMB 472.2 million, a decrease of about 5.8% compared to 2019, while profit increased by approximately 46.6% to around RMB 40.8 million[29]. - The Group's gross profit decreased by approximately RMB 25.5 million or 19.1% to approximately RMB 108.1 million for the year ended 31 December 2020 from approximately RMB 133.7 million for the year ended 31 December 2019[48]. - The gross profit margin decreased to 22.9% for the year ended 31 December 2020 from approximately 26.7% for the year ended 31 December 2019, mainly due to the depreciation of the United States dollar against RMB[49]. - The Group recorded a net finance income increase of approximately RMB 0.8 million or 658.0% to approximately RMB 0.9 million for the year ended 31 December 2020, up from approximately RMB 0.1 million for the year ended 31 December 2019[67]. - Adjusted profit before tax for the year ended December 31, 2020, was RMB 48,574,000, compared to RMB 50,684,000 for the year ended December 31, 2019, reflecting a decrease of approximately 4.4%[86]. - Adjusted profit for the year ended December 31, 2020, was RMB 41,268,000, down from RMB 45,263,000 in 2019, indicating a decline of about 8.8%[86]. Sales and Revenue - Sales of candles reached approximately RMB 299.6 million, accounting for about 63.5% of total sales, while home fragrance products and home accessories generated RMB 83.2 million and RMB 89.4 million, representing 17.6% and 18.9% of total sales, respectively[29]. - In the second half of 2020, sales rebounded to approximately RMB 312.5 million, reflecting an increase of approximately 95.7% compared to the first half of the year[30]. - Self-branded product sales reached approximately RMB 19.1 million, a 56.7% increase from 2019, with offline sales at RMB 13.7 million and online sales at RMB 5.4 million[35]. - The number of self-branded retail stores increased to 27, up by 17 stores compared to the previous year, with store sales increasing by 3.3 times[35]. - The Group expects the rapid sales growth momentum of candle fragrance products, driven by increased domestic demand due to COVID-19, to continue into the coming year[119]. Dividends and Shareholder Returns - The Group distributed a special dividend at the end of 2020 to provide better returns to shareholders[22]. - A special dividend of HK$0.06 per share was paid on December 23, 2020[183]. - The Board does not recommend the payment of any dividend for the year ended December 31, 2020[183]. Operational Adjustments and Strategies - The Group launched an online showroom at the beginning of the year, which significantly aided business during restrictions on social activities[34]. - The Group is upgrading production equipment and planning a new production line to enhance manufacturing capabilities and flexibility[42]. - The Group is confident in its performance in the foreseeable future, leveraging the emerging opportunities in the fragrance and innovative home products market[120]. - The Group plans to expand its business-to-consumer sales channels, currently operating 24 retail stores in the PRC, to strengthen brand building and enhance sales growth of its products globally[121]. - Strengthening research and development capabilities is a priority to enrich product offerings and improve overall competitiveness[125]. - Upgrading information systems and logistics capacities is aimed at increasing operational efficiency[125]. - Enhanced sales and marketing efforts are intended to enlarge market share and cultivate brand loyalty, particularly in markets outside Europe[125]. Financial Position and Assets - The balance of cash and cash equivalents rose by approximately RMB 42.9 million or 63.2% to approximately RMB 110.7 million as of December 31, 2020, from approximately RMB 67.8 million as of December 31, 2019, mainly due to the unutilized portion of net proceeds raised from the Listing in the first quarter of 2020[110]. - Trade receivables increased by approximately RMB 17.0 million or 25.8%, from approximately RMB 65.9 million as of December 31, 2019, to approximately RMB 82.9 million as of December 31, 2020, due to delayed purchase orders[97]. - The Group's inventory balance increased by approximately RMB 12.4 million or 29.0%, reaching approximately RMB 55.0 million as of December 31, 2020, primarily due to finished goods pending delivery[96]. - The net carrying amounts of property, plant, and equipment decreased by approximately RMB 2.8 million during the year ended December 31, 2020, due to renovation costs and depreciation[89]. - The Group's investment properties, previously used for production, were leased to independent third parties as warehouses during the year ended December 31, 2020, following the completion of new production facilities[92]. Management and Governance - The company has a diverse board with independent non-executive directors providing strategic advice and independent opinions to enhance governance and operational oversight[161]. - The board includes members with extensive backgrounds in various industries, including finance, law, and management, ensuring a well-rounded approach to corporate governance[161]. - The independent directors are responsible for ensuring compliance and providing oversight, which is critical for maintaining investor confidence and regulatory adherence[162]. - The company emphasizes the importance of independent advice in its decision-making processes to enhance transparency and accountability[161]. Risks and Compliance - Further discussion on principal risks and uncertainties facing the Group is available in the Management Discussion and Analysis section[182]. - The Group's financial reporting affairs and compliance are overseen by the financial controller[176]. - The Company has a focus on maintaining compliance and overseeing treasury functions in its PRC operations[176]. Miscellaneous - The Group recorded a small provision for impairment of trade receivables of approximately RMB 1.8 million as of December 31, 2020, based on expected credit loss percentage[98]. - The Group made charitable contributions totaling RMB 1 million during the year[198]. - Sales to the company's five largest customers accounted for approximately 56% of total sales for the year, with the largest customer contributing about 13%[199].