Financial Performance - The group's revenue for the year was HKD 979.2 million, a decrease of 11.0% compared to HKD 1,100.4 million for the year ended December 31, 2022[12]. - The profit for the year was HKD 48.2 million, down 17.3% from HKD 58.3 million for the previous year[12]. - The gross profit margin improved during the year due to the depreciation of the taka against the HKD and improved product margin costs[11]. - The group's gross profit was HKD 233.2 million, down 9.3% from HKD 257.1 million, with a gross margin increase of 0.4 percentage points[26]. - The profit recorded was HKD 48.2 million, down 17.3% from the previous year, with a slight increase in gross margin to 23.8%[19]. - The revenue from hair extension products and lace wig products saw a slowdown due to weak consumer purchasing power[11]. - The sales of high-end human hair extension products dropped significantly by 56.4%, from HKD 184.5 million to HKD 80.4 million, due to weakened consumer purchasing power[23]. - The revenue from Halloween products decreased by 15.9%, from HKD 43.5 million to HKD 36.6 million, attributed to soft consumer purchasing power and conservative order placements[23]. - The cost of goods sold decreased by 11.5% to HKD 746.0 million, primarily due to streamlined production processes and reduced raw material costs[24]. - Other income increased by 33.9% to HKD 7.3 million, mainly due to higher warehouse rental and bank interest income[29]. - The group's net profit for the current year was HKD 48.2 million, a decrease of 17.3% from HKD 58.3 million for the year ended December 31, 2022, attributed to weak consumer purchasing power and a shift in product sales mix[37]. Dividend and Payout - The proposed final dividend is HKD 0.029 per share, totaling approximately HKD 19.0 million, with a total dividend of HKD 0.071 per share for the year[15]. - The dividend payout ratio for the year is approximately 99.2%, compared to 63.5% in 2022[15]. - The board will periodically review the dividend policy to ensure its effectiveness[154]. - The company plans to distribute at least 20% of its distributable net profit as dividends each fiscal year[153]. Operational Strategy - The company plans to open more online stores on several well-known cross-border e-commerce platforms to expand sales channels and customer base[13]. - The company aims to integrate production lines in its Bangladesh factory to achieve a balanced and diversified product portfolio[10]. - The company will continue to focus on inventory control and cost optimization measures to enhance financial performance[13]. - The company aims to improve its bank loan portfolio and optimize production costs to enhance profitability and liquidity in the near future[56]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[82]. - A strategic acquisition of a local competitor is under consideration, which could potentially increase the company's customer base by 30%[82]. - The company aims to improve operational efficiency by implementing new technologies, expecting a cost reduction of approximately 5% in the next fiscal year[82]. Market and Sales Performance - The revenue from wigs, wig accessories, and others accounted for 88.1% of total revenue, up from 79.3% in the previous year[22]. - The revenue contribution from the Bangladesh factory rose to 98.7% of total revenue, compared to 97.9% in the previous year[22]. - The U.S. market remained the primary market, contributing 90.1% of total revenue, an increase from 87.6% in the previous year[22]. - Revenue from sales outside of China represented 98.7% of total revenue, with sales from the United States alone accounting for 90.1%[161]. Financial Position and Ratios - The asset-liability ratio increased from 61.9% as of December 31, 2022, to 72.8%[11]. - The capital debt ratio increased to 72.8% as of December 31, 2023, compared to 61.9% as of December 31, 2022, due to increased bank borrowings[39]. - Cash and bank balances increased by 8.0% from HKD 170.5 million as of December 31, 2022, to HKD 184.2 million as of December 31, 2023, mainly due to bank borrowings used to pay accounts payable[38]. - The total bank borrowings and overdrafts amounted to HKD 603.7 million, up from HKD 540.2 million in 2022, with HKD 568.6 million due within one year[165]. Governance and Compliance - The company is committed to maintaining compliance with the Securities and Futures Ordinance, ensuring transparency in its shareholdings and related interests[67]. - The board includes members with extensive backgrounds in finance and law, contributing to informed decision-making processes[75]. - The company has established a robust governance structure with various committees to oversee its operations and strategic initiatives[73]. - The board has established three committees: the audit committee, the remuneration committee, and the nomination committee to oversee specific aspects of the company's affairs[102]. - The audit committee has reviewed the company's corporate governance policies and compliance with the corporate governance code during the year[98]. - The company has established a policy for handling and disclosing inside information to ensure compliance with legal and regulatory requirements[129]. Risks and Challenges - The company faces significant risks related to labor supply and cost increases, which are critical for maintaining product quality[156]. - The company is exposed to intense competition from manufacturers in low-cost countries, which may adopt more aggressive pricing strategies[157]. - The group may face significant costs and operational challenges due to compliance with frequently changing regulations in emerging markets like Bangladesh[167]. - The majority of the group's borrowings are floating-rate loans, exposing it to interest rate risk, which the group plans to monitor closely[169]. Employee and Management - The group employed 25,371 employees in Bangladesh as of December 31, 2023, compared to 25,199 employees in the previous year, reflecting an increase of 0.68%[48]. - As of December 31, 2023, the total employee expenditure was HKD 308.7 million, down from HKD 385.6 million for the year ended December 31, 2022, indicating a decrease of approximately 20%[48]. - The total number of senior management personnel categorized by salary range includes 7 individuals earning between HKD 1 and 500,000, 2 individuals earning between HKD 500,001 and 1,500,000, and 1 individual earning between HKD 3,000,001 and 4,000,000[111]. Shareholder Information - As of December 31, 2023, the company’s major shareholder, Mr. Zhang Youchang, holds 343,369,803 shares, representing approximately 52.37% of the issued share capital[199]. - The company’s governance structure includes trusts established by Mr. Zhang Youchang, which hold substantial shares in multiple entities[200]. - The report indicates a strong alignment of interests between the management and shareholders due to significant shareholdings by key executives[199]. - The company has a diversified ownership structure with multiple trusts and affiliated entities under Mr. Zhang Youchang's control[200].

Financial Performance - The revenue for the year was HKD 979.2 million, a decrease of 11.0% compared to HKD 1,100.4 million for the year ended December 31, 2022[16]. - The net profit for the year was HKD 48.2 million, down from HKD 58.3 million for the year ended December 31, 2022[16]. - The basic earnings per share attributable to equity shareholders was approximately HKD 0.08, a decrease of about 20.0% from HKD 0.10 for the year ended December 31, 2022[16]. - The company's profit attributable to shareholders decreased to HKD 51,011,000 in 2023 from HKD 66,289,000 in 2022, a decline of 23%[70]. - The group's net profit for the year was HKD 48.2 million, down HKD 10.1 million or 17.3% from HKD 58.3 million for the year ended December 31, 2022, primarily due to weak consumer purchasing power and inventory destocking pressures[149]. Revenue Breakdown - Revenue from synthetic hair and related products was HKD 862,256,000, a slight decrease of 1.3% from HKD 872,398,000 in 2022[37]. - Revenue from high-end human hair extension products dropped significantly to HKD 80,423,000 from HKD 184,486,000, a decline of approximately 56.4%[37]. - Revenue from hair extensions, hair accessories, and others decreased by HKD 10.1 million to HKD 862.3 million, a decline of 1.2%, mainly due to a drop in sales of lace wigs and woven products, offset by an increase in sales of braids and specialty braids[143]. - Revenue from Halloween products decreased by 15.9% to 36.6 million HKD from 43.5 million HKD in the previous year, primarily due to weakened consumer purchasing power[118]. Cost and Expenses - The gross profit margin for the year was 23.8%, an increase of 0.4 percentage points from 23.4% for the year ended December 31, 2022[16]. - Administrative expenses decreased to HKD 119,091,000 from HKD 138,073,000, reflecting a reduction of about 13.8%[1]. - Financing costs increased to HKD 36,810,000 from HKD 29,826,000, marking an increase of approximately 23.4%[1]. - The group's cost of goods sold decreased by HKD 97.3 million to HKD 746.0 million, a reduction of 11.5%, mainly due to streamlined production processes and lower raw material costs[144]. Assets and Liabilities - The total assets less current liabilities amounted to HKD 897.5 million, compared to HKD 917.8 million in the previous year[20]. - The capital debt ratio as of December 31, 2023, was 72.8%, compared to 61.9% as of December 31, 2022[16]. - Trade payables as of 2023 were HKD 73,729,000, compared to HKD 35,380,000 in 2022, showing an increase of 108%[80]. - The company reported a total of HKD 131,629,000 in current liabilities for 2023, reflecting an increase from the previous year[80]. Dividends - The company proposed a final dividend of HKD 0.029 per share, along with an interim dividend of HKD 0.042 per share, totaling HKD 0.071 per share for the year[16]. - The board proposed a final dividend of HKD 0.029 per share for the year, down from HKD 0.037 per share in 2022[163]. Market Outlook and Strategy - The company anticipates a gradual stabilization in market demand for hair products by the end of this year[199]. - The company plans to expand its operations in Thailand, with a new lease agreement for office space amounting to HKD 2,835,000[73]. - The group plans to expand its sales team to explore new market opportunities and increase its presence on well-known cross-border e-commerce platforms[185]. - The company will continue to focus on its core business and closely monitor the latest developments in the industry[199]. Employee and Operational Metrics - The total employee costs for 2023 amounted to HKD 308,660,000, down from HKD 385,597,000 in 2022, indicating a decrease of 19.9%[89]. - The group employed 25,371 employees in Bangladesh as of December 31, 2023, compared to 25,199 employees as of December 31, 2022[155]. Other Income and Losses - The company's bank interest income for 2023 was HKD 2,082,000, significantly up from HKD 395,000 in 2022, representing a growth of 426%[60]. - Other income rose by HKD 1.8 million to HKD 7.3 million, an increase of 33.9%, mainly due to higher warehouse rental income and bank interest income[168]. - The net loss of financial assets measured at fair value through profit or loss was HKD (1,119) thousand in 2023, an improvement from HKD (4,807) thousand in 2022[43].

Revenue Performance - The group's revenue for the six months ended June 30, 2023, was HKD 479.2 million, a decrease of approximately 11.6% compared to HKD 542.1 million in the same period of 2022[9]. - Revenue from wigs, wig accessories, and others accounted for 82.2% of total revenue, up from 77.5% in the same period of 2022[12]. - High-end human hair extension products saw a revenue decline of 37.1%, from HKD 86.2 million to HKD 54.2 million, due to decreased consumer purchasing power[13]. - The revenue from Halloween products decreased by 12.9%, from HKD 35.6 million to HKD 31.0 million, attributed to more conservative customer orders[15]. - Revenue for the six months ended June 30, 2023, was HKD 479,193,000, a decrease of 11.6% compared to HKD 542,058,000 for the same period in 2022[73]. - Revenue from wigs, wig accessories, and others was HKD 394,009,000, down 6.3% from HKD 420,271,000 year-on-year[97]. - Revenue from high-end human hair extension products decreased by 37.1% to HKD 54,213,000 from HKD 86,222,000[97]. Profitability Metrics - The gross profit margin improved to 23.0%, supported by effective cost control strategies and the depreciation of the Bangladeshi Taka against the US dollar[9]. - The net profit margin increased to 6.2%, up from 4.3% in the same period of 2022, primarily due to a one-time cash gain from the sale of a Ukrainian subsidiary[9]. - Gross profit for the period was HKD 110.0 million, down 3.8% from HKD 114.4 million in the same period last year, with a gross margin increase to 23.0% from 21.1%[17]. - The group reported a net profit of HKD 29.7 million, an increase of 26.9% from HKD 23.4 million in the previous year, driven by currency depreciation and cost control strategies[29]. - The company reported a profit attributable to owners of HKD 31,621,000 for the six months ended June 30, 2023, compared to HKD 26,846,000 for the same period in 2022, representing an increase of 17%[75]. - The total comprehensive income attributable to owners was HKD 19,619,000, a significant recovery from a loss of HKD 6,188,000 in the previous year[75]. Cost Management - The group's cost of goods sold decreased from HKD 427.7 million to HKD 369.2 million, a reduction of 13.7% due to streamlined production processes[16]. - Distribution and selling expenses rose by 29.5% to HKD 11.4 million, mainly due to increased transportation and advertising costs[22]. - The company's administrative expenses decreased to HKD 60,901,000 from HKD 70,754,000, indicating improved cost management[73]. Financial Position - Cash and bank balances increased by 14.7% to HKD 195.0 million, attributed to increased bank borrowings during the period[30]. - The group’s capital debt ratio was 62.0% as of June 30, 2023, slightly up from 61.9% at the end of 2022, indicating sufficient financial resources to meet operational needs[31]. - The company reported a net cash and cash equivalents balance of HKD 99,267,000, up from HKD 78,612,000, indicating improved liquidity[77]. - The company has a total of HKD 535,321,000 in bank borrowings and overdrafts as of June 30, 2023, slightly down from HKD 540,254,000 as of December 31, 2022[120]. - The group has secured bank borrowings with collateral including approximately HKD 89.2 million in bank deposits and HKD 88.0 million in leased land and buildings[40]. Shareholder Information - The interim dividend declared is HKD 0.042 per share, totaling approximately HKD 28.8 million, an increase from HKD 0.017 per share in the same period last year[43]. - The interim payout ratio for this period is 97.0%, significantly higher than the 49.7% payout ratio in the previous year[44]. - Evergreen Holdings holds approximately 50.05% of the issued share capital of the company as of June 30, 2023[57]. - The company has a complex ownership structure with multiple layers of trusts and holdings, indicating a concentrated ownership[57]. Employee and Operational Metrics - As of June 30, 2023, the group employed 24,454 employees, a decrease from 30,391 employees as of June 30, 2022, with total employee expenses amounting to HKD 151.9 million compared to HKD 208.8 million in the same period last year[38]. - The company incurred computer products and services expenses of HKD 540,000 for both periods ended June 30, 2023, and June 30, 2022[136]. Legal and Compliance - A legal dispute involving a supplier with a claim amount of approximately HKD 18 million is ongoing as of May 17, 2023[41]. - The group has no significant contingent liabilities as of June 30, 2023[35]. - The company has not disclosed specific future outlook or guidance in the provided documents[75][76][78]. Other Financial Information - Other income rose by 7.6% to HKD 2.9 million, primarily due to increased bank interest and rental income[19]. - The group recognized a profit of HKD 4,414,000 from the sale of its subsidiary Evergreen Ukraine Investment Limited, which was completed on April 30, 2023[104]. - The group reported a decrease in trade receivables impairment losses to HKD 4,000 from HKD 47,000 year-on-year[102].

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依賴該等內容而引致的任何損失承擔任何責任。 Evergreen Products Group Limited 訓 修 實 業 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1962） 截 至2023年6月30日 止 六 個 月 的 中 期 業 績 公 告 財務摘要 • 本期間收入為479.2百萬港元，較2022年同期的542.1百萬港元減少11.6%。 • 本期間毛利為110.0百萬港元，較2022年同期的114.4百萬港元減少3.8%。 • 本期間純利為29.7百萬港元，較2022年同期的23.4百萬港元增加26.7%， 主要由於(1)受惠於孟加拉塔卡兌美元貶值；(2)成本控制策略奏效；及 (3)出售烏克蘭附屬公司獲得一次性變現收益。 • 董 事 會 就 本 期 間 宣 派 中 期 股 息 每 股4.2港 仙（2022年6月30日：每 股1.7港 ...

Financial Performance - The group's revenue for the year was HKD 1,100.4 million, a decrease of 8.9% compared to HKD 1,207.4 million in 2021[13] - The profit for the year was HKD 58.3 million, representing a slight increase of 2.2% from HKD 57.1 million in the previous year[13] - The gross profit margin improved during the year, supported by the depreciation of the Taka against the HKD and effective product mix strategies[12] - The company's revenue for the year decreased to HKD 1,100.4 million, a decline of approximately 8.9% compared to HKD 1,207.4 million for the year ended December 31, 2021, primarily due to reduced demand for lower-margin braid products offsetting the increase in sales of higher-margin hair extension and lace wig products[21] - Gross profit for the year reached HKD 257.1 million, an increase of HKD 8.3 million or 3.3% from HKD 248.8 million for the year ended December 31, 2021, driven by strong market demand for hair extension and lace wig products[28] - The gross margin improved to 23.4%, up 2.8 percentage points from 20.6% for the year ended December 31, 2021, mainly due to increased demand for higher-margin products and the depreciation of the Bangladeshi Taka[28] - The company's net profit for the year was HKD 58.3 million, a slight increase of 2.2% from HKD 57.1 million in the previous year, mainly due to a reduction in employee retirement benefits and changes in deferred tax in Bangladesh[39] Dividend and Payout - The board proposed a final dividend of HKD 0.037 per share, totaling approximately HKD 25.4 million, with a total dividend of HKD 0.054 per share for the year[16] - The dividend payout ratio for the year was approximately 63.5%, compared to 28.8% in 2021[16] - The total dividend per share for the year is HKD 0.054, which includes an interim dividend of HKD 0.017 per share, compared to HKD 0.011 and HKD 0.013 per share in 2021[155] Cost Management - The cost of goods sold decreased by 12.0% to HKD 843.3 million from HKD 958.6 million for the year ended December 31, 2021, aligning with the revenue decline[26] - Distribution and selling expenses increased by 40.9% to HKD 26.7 million from HKD 19.0 million in the previous year, primarily due to the reclassification of administrative staff salaries and employee benefits[34] - Administrative expenses decreased by 7.4% to HKD 138.1 million from HKD 149.1 million in the previous year, mainly due to the reclassification of salaries and employee benefits to selling expenses[35] - Financing costs rose by 45.3% to HKD 29.8 million from HKD 20.5 million in the previous year, attributed to increased interest rates[37] Asset Management - The asset-liability ratio decreased from 72.8% as of December 31, 2021, to 61.9%[12] - The company continues to implement inventory and credit control management policies to optimize its asset-liability structure[12] - Cash and bank balances decreased by 2.6% to HKD 170.0 million from HKD 175.0 million as of December 31, 2021, primarily due to loan repayments and trade financing[40] - The capital debt ratio improved to 61.9% as of December 31, 2022, down from 72.8% in the previous year, due to a reduction in bank borrowings[41] Operational Strategy - The company plans to enhance financial performance optimization measures, including inventory control and cost optimization, in the coming year[14] - The company will increase resources for new product research and development to expand sales channels[14] - The company aims to integrate production lines in its Bangladesh factory to achieve a balanced and diversified product portfolio[11] - The company actively increased capital investment in its Bangladeshi production facilities to support market expansion, which partially led to increased depreciation expenses[21] Market Performance - Revenue from high-end hair extension products increased by 17.1% to HKD 184.5 million, up from HKD 157.5 million for the year ended December 31, 2021, due to a strong rebound in market demand as most countries returned to normal[25] - Revenue from Halloween products surged by 84.7% to HKD 43.5 million, compared to HKD 23.6 million for the year ended December 31, 2021, driven by the resumption of festive activities[25] - Revenue from international markets accounted for 97.8% of total revenue, with sales from the United States making up 87.6% of total revenue, consistent with the previous year[165] Corporate Governance - The company has adopted the principles and code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules[88] - The board consists of four executive directors and five non-executive directors, including four independent non-executive directors, ensuring compliance with the Listing Rules regarding independent director appointments[94] - The company emphasizes the importance of good corporate governance standards to enhance shareholder value and ensure accountability[88] - The company has maintained compliance with all code provisions of the Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which is currently held by the same individual[88] - The board believes that having the same person serve as both Chairman and CEO allows for consistent leadership and efficient decision-making[92] Risk Management - The company faces significant risks related to labor supply, as the industry is labor-intensive and relies on a stable supply of skilled and low-cost labor from Bangladesh and China[161] - The company is exposed to intense competition from both existing and new entrants in the hair products industry, which may lead to pricing pressures and reduced market share[162] - The company must continuously innovate and develop new products to respond to changing consumer preferences and trends, as failure to do so may result in loss of competitiveness[166] - The company is subject to various risks and uncertainties that could significantly impact its financial condition and performance, including economic downturns in key markets[159] Shareholder Communication - The company maintains effective communication with shareholders through various channels, including annual general meetings and regular announcements on the stock exchange[149] - The company has established a shareholder communication policy to facilitate timely access to information for shareholders and potential investors[137] - The board of directors and committee chairs participated in the annual general meeting to engage with shareholders and address their inquiries[138]

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依賴該等內容而引致的任何損失承擔任何責任。 Evergreen Products Group Limited 訓 修 實 業 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1962） 澄 清 公 告 茲提述訓修實業集團有限公司（「本公司」）日期為2023年3月29日有關本公司截至 2022年12月31日止年度的年度業績公告（「該公告」）。本公司董事會（「董事會」）謹 此澄清，建議末期股息將於2023年6月1日（星期四）而非2023年6月16日（星期五） 派付予名列本公司股東名冊的股東。 承董事會命 訓修實業集團有限公司 主席、行政總裁兼執行董事 張有滄 香港，2023年3月31日 ...

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依賴該等內容而引致的任何損失承擔任何責任。 Evergreen Products Group Limited 訓 修 實 業 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1962） 截 至2022年12月31日 止 年 度 的 年 度 業 績 公 告 財務摘要 • 本年度的收入為1,100.4百萬港元，較截至2021年12月31日止年度的1,207.4 百萬港元減少8.9%。 • 本年度的毛利率為23.4%，較截至2021年12月31日止年度的20.6%增加2.8 個百分點。 • 本年度的純利為58.3百萬港元，較截至2021年12月31日止年度的57.1百萬 港元的純利微升。 ...

Financial Performance - The group's revenue for the six months ended June 30, 2022, was HKD 542.1 million, a slight decrease of 1.2% compared to HKD 548.9 million in the same period of 2021[12]. - The gross profit margin decreased to 21.1%, primarily due to increased shipping costs and higher depreciation expenses from the construction of expanded production facilities in Bangladesh[9]. - The net profit margin fell to 4.3%, down from 5.6% in the same period of 2021, mainly due to rising salary and employee benefit costs[9]. - Net profit decreased by 23.8% to HKD 23.4 million from HKD 30.8 million, attributed to increased shipping costs and depreciation expenses[26]. - Total comprehensive income for the period was a loss of HKD 11,011,000, compared to a gain of HKD 31,705,000 in the previous year[90]. - Profit before tax decreased to HKD 23,488,000, a decline of 27.6% from HKD 32,440,000 in the previous year[88]. - Basic earnings per share remained at HKD 0.04, unchanged from the same period in 2021[90]. Revenue Breakdown - The revenue from high-end human hair extension products rose by 26.8% to HKD 86.2 million, driven by increased sales volume as market demand recovered post-pandemic[13]. - Sales of high-margin lace wigs and top hairpieces increased, while sales of lower-margin braid products slowed down, impacting overall performance[9]. - Halloween product revenue increased by 64.8% to HKD 35.6 million from HKD 21.6 million in the same period last year[14]. - Revenue from wigs and related accessories was HKD 420,271,000, down 8.5% from HKD 459,195,000 in 2021[113]. - Revenue from high-end hair extension products increased by 26.7% to HKD 86,222,000, compared to HKD 68,048,000 in the previous year[113]. - Revenue from Halloween products rose significantly by 64.3% to HKD 35,565,000, up from HKD 21,644,000 in 2021[113]. - Revenue from the United States was HKD 478,683,000, down 2.3% from HKD 492,361,000 in the previous year[114]. - Revenue from China increased to HKD 13,756,000, up 13.3% from HKD 12,140,000 in 2021[114]. Cost and Expenses - Cost of goods sold decreased by 0.9% to HKD 427.7 million from HKD 431.5 million, primarily due to reduced direct material usage[15]. - Distribution and selling expenses rose by 23.8% to HKD 8.8 million from HKD 7.1 million, mainly due to increased transportation and advertising costs[21]. - Administrative expenses increased by 7.1% to HKD 70.8 million from HKD 66.1 million, primarily due to salary and employee benefits increases[22]. - Total employee expenses for the period amounted to HKD 208.8 million, compared to HKD 190.9 million in the same period of 2021[35]. Cash Flow and Liquidity - Cash and bank balances increased by 17.4% to HKD 205.5 million from HKD 175.0 million as of December 31, 2021[27]. - Cash generated from operating activities was HKD 193,591,000, down 22.4% from HKD 249,302,000 in the previous year[101]. - The net cash generated from financing activities was a negative HKD 118,619,000, an improvement from negative HKD 232,810,000 in the previous year[101]. - The company’s cash and cash equivalents increased from HKD 68,444 thousand to HKD 98,844 thousand, an increase of approximately 44.4%[93]. Debt and Financing - The capital debt ratio increased to 77.9% from 72.8% as of December 31, 2021, indicating a higher leverage position[28]. - Total bank borrowings, including bank overdrafts, increased to HKD 692,622,000 as of June 30, 2022, compared to HKD 658,552,000 as of December 31, 2021, reflecting an increase of about 5.2%[142]. - The average effective annual interest rate for floating-rate bank borrowings ranged from 1.74% to 5.23% as of June 30, 2022, compared to 1.86% to 5.23% as of December 31, 2021[145]. - The group maintained compliance with financial covenants throughout the reporting period, with the carrying amount of borrowings at HKD 407,031,000 as of June 30, 2022, up from HKD 358,617,000 as of December 31, 2021[146]. Corporate Governance - The company maintains a high standard of corporate governance, adhering to the principles outlined in the Corporate Governance Code and the Listing Rules[47]. - The board believes that having the same individual serve as both Chairman and CEO enhances leadership consistency and decision-making efficiency[47]. - The company emphasizes transparency and accountability in its governance practices[47]. - The board's current structure is designed to ensure effective decision-making without compromising the balance of power[47]. Share Capital and Ownership - As of June 30, 2022, the company had a total issued share capital of 686,082,000 shares[59]. - Mr. Zhang Youchang holds 343,369,803 shares as a trustee beneficiary, representing 50.04% of the company's shares[52]. - Evergreen Holdings owns approximately 50.04% of the issued share capital of the company, totaling 343,369,803 shares[70]. - SEAVI Advent Investments Ltd. holds 14.92% of the issued share capital, amounting to 102,386,197 shares[70]. - The company has a diversified ownership structure with multiple entities holding significant stakes[69]. Strategic Initiatives - The company plans to expand its sales team and explore new market opportunities to enhance its customer base and improve risk resilience[10]. - The board has initiated discussions to restructure bank loan terms to improve financial conditions and implement cost control measures[10]. - The company has entered into an agreement to sell its subsidiary in Ukraine to preserve operating capital for future opportunities[10]. - The group plans to use the remaining net proceeds for expanding the lace top hairpiece project, including production line expansion[40].

Financial Performance - The group's revenue for the year was HKD 1,207.4 million, an increase of 35.6% compared to HKD 890.2 million for the year ended December 31, 2020[22]. - The group recorded a profit of HKD 57.1 million, a turnaround from a loss of HKD 18.0 million for the year ended December 31, 2020, representing an increase of 417.2%[22]. - Gross profit margin improved to 20.6% from 17.2% in the previous year, while net profit margin turned from -2.1% to 4.7%[20]. - The company's revenue for the year increased to HKD 1,207.4 million, a rise of approximately 35.6% compared to HKD 890.2 million for the year ended December 31, 2020[30]. - The gross profit margin improved to 20.6%, up from 17.2% in the previous year, primarily due to a strong demand for higher-margin products[28]. - The net profit margin turned from a loss of -2.1% in the previous year to a profit margin of 4.7% this year, attributed to stable supply chains and production capacity[28]. - The sales of wig and hair products accounted for 95.2% of total revenue, slightly down from 96.3% in the previous year[30]. - The sales of wigs, wig accessories, and others increased by 43.9% to HKD 1,026.4 million, driven by strong demand for braid products and new lace top wig products[31]. - The sales cost rose to HKD 958.6 million, an increase of 30.0%, consistent with the revenue growth[32]. Operational Efficiency - Inventory turnover days decreased from 238 days to 182 days, improving the balance sheet[21]. - The debt-to-equity ratio improved from 88.7% to 72.8%[21]. - The company plans to continue executing financial performance improvement measures, including reducing inventory turnover days and optimizing costs[23]. - The company aims to digitize its operations and equip production with automated machinery to enhance efficiency[23]. - The company plans to improve financial performance by reducing inventory turnover days, increasing profit margins, optimizing costs, and enhancing operational efficiency[59]. Market Trends and Demand - The demand for hair products, particularly in the African American market, showed strong growth due to a shift in consumer behavior during the pandemic[20]. - The Halloween product segment experienced a revenue decline of 23.1%, dropping to HKD 23.6 million due to extended pandemic control measures[31]. Future Outlook and Growth Strategies - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[74]. - The company is investing in R&D, with a budget allocation of $5 million for the development of new technologies and products[75]. - Market expansion efforts include entering three new international markets, aiming for a 10% increase in market share by the end of the next fiscal year[76]. - The company is exploring potential acquisitions to enhance its product portfolio, with a target of completing at least one acquisition within the next 12 months[77]. - A new product line is set to launch in Q3 2023, expected to contribute an additional $2 million in revenue[78]. - The company has implemented cost-cutting measures, resulting in a 5% reduction in operational expenses[79]. - The management team emphasizes the importance of sustainability in future strategies, aiming for a 20% reduction in carbon footprint by 2025[80]. - The company plans to enhance its digital marketing efforts, with a budget increase of 30% for online advertising campaigns[81]. Shareholder and Governance - The company declared a final dividend of HKD 0.011 per share, totaling approximately HKD 7.547 million, with a payout ratio of about 28.8%[24]. - The board of directors is focused on improving shareholder value, targeting a 10% increase in dividends for the upcoming fiscal year[82]. - The board has proposed a final dividend of HKD 0.011 per share, totaling approximately HKD 7,547,000, along with an interim dividend of HKD 0.013 per share, making the total dividend HKD 0.024 per share for the year[165]. - The company aims to distribute at least 20% of its distributable net profit as dividends each fiscal year, subject to various conditions[167]. - The board will review the dividend policy periodically to ensure its effectiveness in allowing shareholders to participate in profits while retaining sufficient reserves for future growth[168]. Employee and Management - Total employee expenses for the year amounted to HKD 393.3 million, up from HKD 297.2 million in the year ended December 31, 2020[51]. - The group employed 32,002 employees in Bangladesh as of December 31, 2021, compared to 26,699 employees as of December 31, 2020[50]. - The company has a total of 14 senior management personnel, with 8 earning between HKD 1 and 500,000, 4 earning between HKD 500,001 and 1,000,000, 1 earning between HKD 1,500,001 and 2,000,000, and 1 earning between HKD 3,000,001 and 4,000,000[126]. Risk Management - The company faces significant competition from manufacturers in countries with lower labor costs, such as China and Indonesia, which may impact pricing strategies[170]. - The company is exposed to risks related to labor supply and cost increases, which are critical for maintaining product quality in the labor-intensive hair product manufacturing industry[169]. - The company may experience adverse effects on its business and financial performance due to potential disruptions in the supply of raw materials from key suppliers[176]. - The group faces risks related to operating in Bangladesh, including political and economic instability, which could adversely affect its business and financial performance[178]. - The group is exposed to interest rate risk as most of its borrowings are floating rate loans, and it has entered into an interest rate swap contract of HKD 15 million to hedge against this risk[180]. - The group acknowledges the potential impact of rising debt levels on its business, including increased financial expenses that could reduce profitability[177]. Corporate Governance - The board emphasizes the importance of corporate governance, adhering to the principles outlined in the Listing Rules, ensuring transparency and accountability[21]. - The board consists of six executive directors and five non-executive directors, ensuring a balanced structure for effective independent judgment[99]. - The company has complied with the listing rules regarding the appointment of at least three independent non-executive directors, with one possessing appropriate professional qualifications[99]. - The board has adopted a comprehensive risk management policy to identify, assess, and manage significant risks[143]. - The company has established an internal audit function to monitor key aspects of the group, ensuring effective risk management and internal control systems[37]. - The board has conducted an annual review of the effectiveness of the group's risk management and internal control systems, concluding they are sufficient and effective for the year[37].

Financial Performance - The group's revenue for the six months ended June 30, 2021, was HKD 548.9 million, an increase of approximately 49.1% compared to HKD 368.2 million for the same period in 2020[9]. - The gross profit margin slightly decreased to 21.4%, while the net profit margin increased to 5.6%, up from 1.8% in the same period of 2020[9]. - Net profit for the period was HKD 30.8 million, an increase of HKD 24.3 million or 369.8% compared to HKD 6.5 million in the same period of 2020, driven by recovering demand for high-margin hair extension products[28]. - Profit before tax increased significantly to HKD 32,440,000, compared to HKD 7,100,000 in the previous year, marking a 357.7% growth[75]. - Total comprehensive income for the period was HKD 31,705,000, compared to HKD 2,038,000 in the same period last year, indicating a significant improvement[76]. - Basic and diluted earnings per share for the period were both HKD 0.04, compared to HKD 0.01 in 2020[76]. Revenue Breakdown - The revenue from wig, wig accessories, and others increased by 55.6% to HKD 459.1 million, driven by strong sales of popular braided hair accessories[14]. - The revenue from high-end human hair extension products rose by 32.7% to HKD 68.0 million, attributed to recovering market demand[15]. - The revenue from Halloween products slightly decreased by 0.6% to HKD 21.6 million due to stricter social distancing measures during Halloween[15]. - The revenue generated from the Bangladesh factory accounted for 97.7% of the group's total revenue, up from 96.1% in the same period of 2020[13]. - The United States remained the group's primary market, contributing 89.7% of total revenue, compared to 85.8% in the same period of 2020[13]. Cost and Expenses - The group's cost of goods sold increased from HKD 280.7 million for the six months ended June 30, 2020, to HKD 431.5 million, representing a 53.7% increase, primarily due to higher sales of lower-margin braid products[16]. - Distribution and selling expenses increased by 35.8% from HKD 5.2 million to HKD 7.0 million, primarily due to increased transportation costs[23]. - Administrative expenses rose by 14.2% from HKD 57.9 million to HKD 66.1 million, mainly due to increases in salaries, rent, and government rates[24]. - Other income rose from HKD 2.2 million to HKD 2.3 million, an increase of 8.3%, mainly due to higher warehouse rental income[20]. Financial Position - The group's bank balances and cash increased by 2.4% from HKD 192.2 million to HKD 196.9 million, attributed to extended repayment measures for bank loans[29]. - The capital debt ratio as of June 30, 2021, was 76.2%, down from 88.7% on December 31, 2020, indicating improved financial stability[30]. - Non-current assets as of June 30, 2021, totaled HKD 776,563,000, slightly down from HKD 776,970,000 at the end of 2020[78]. - Current assets decreased to HKD 930,908,000 from HKD 980,220,000 at the end of 2020, reflecting a decline of 5.1%[78]. - Current liabilities were HKD 777,367,000, down from HKD 859,614,000 at the end of 2020, indicating a reduction of 9.6%[78]. - The net current asset value increased to HKD 153,541,000 from HKD 120,606,000, showing a growth of 27.3%[78]. Shareholder Information - As of June 30, 2021, the company had a total of 686,082,000 shares issued, with Zhang Youchang holding approximately 49.78% of the issued share capital[49]. - Zhang Youchang is the beneficial owner of 341,535,803 shares and 9,790,000 shares, representing 49.78% and 1.43% of the company's issued share capital, respectively[48]. - The company has a significant shareholder, SEAVI Advent Investments Ltd., holding 14.92% of the issued shares, totaling 102,386,197 shares[58]. - The company has a structured share incentive plan, with shares granted to executives as part of their compensation[49]. - The share incentive plan allows for a maximum issuance of 6,150,000 shares, representing 1% of the total shares issued at the time of adoption[64]. Operational Insights - The company plans to strengthen its e-commerce team and expand its customer base to enhance market resilience[10]. - The board believes that the demand for higher-margin products will gradually recover by the end of the year[10]. - The group faced foreign currency risk due to receivables and payables denominated in foreign currencies, with 97.7% of revenue from the Bangladesh factory in USD as of June 30, 2021[32]. - The group’s operational decisions are not subject to seasonality, indicating stable performance throughout the year[97]. - The group’s sales contracts are typically for one year or less, with revenue recognized upon delivery of goods[96]. Capital Expenditures and Investments - Capital expenditures for the period were approximately HKD 13.3 million, down from HKD 19.4 million in the same period of 2020, reflecting tightened capital spending due to economic uncertainties[31]. - The group utilized HKD 100.7 million from the IPO proceeds for constructing additional production facilities in Bangladesh, fully expending this allocation[41]. - The company has no major investments, acquisitions, or disposals during the reporting period[37]. Compliance and Governance - The company has adopted the "Standard Code" for securities trading by directors, ensuring compliance with regulations[46]. - The board of directors confirmed compliance with the "Standard Code" during the reporting period[46]. - The company has multiple subsidiaries, including Ventures Day Investments Limited and Acemaster Ventures Limited, which are fully owned by Evergreen Group Limited[53].