Financial Performance - The company's revenue for the fiscal year ended December 31, 2021, was HKD 363.0 million, a significant increase of 42% compared to HKD 255.4 million in 2020[3] - The company reported a substantial improvement in gross profit margin, which nearly doubled from 9.3% to 18.0%[3] - Cash and cash equivalents at the end of the fiscal year were approximately HKD 119.9 million, indicating a stable financial position[4] - The company achieved natural sales growth despite rising material costs, driven by the recovery of the retail market in the U.S.[5] - As of December 31, 2021, the bank balance and cash decreased by HKD 41.0 million to HKD 119.9 million, primarily due to the repayment of bank loans totaling HKD 31.0 million[24] - Inventory increased by HKD 15.4 million to HKD 160.6 million, attributed to the planned shipment of finished goods in early 2022[24] - Trade receivables increased by HKD 13.0 million to HKD 41.5 million, consistent with the increase in revenue compared to the same period in 2020[24] - Current liabilities remained stable at HKD 131.9 million, with trade and other payables increasing by HKD 16.7 million[24] - The group's capital expenditure for the year was HKD 8.1 million, consistent with the previous year, mainly due to investments in properties, plants, and equipment[31] - As of December 31, 2021, the group's net current assets were approximately HKD 224.5 million, down from HKD 236.3 million in 2020[26] - The group's debt-to-equity ratio was 14.6% as of December 31, 2021, down from 19.8% in 2020[27] Corporate Governance - The board of directors includes independent non-executive directors who provide independent advice and oversight[64] - The company has arranged appropriate insurance for directors and senior management against liabilities incurred in the course of business[69] - The company has adopted the corporate governance code as per the listing rules since the listing date and has complied with the standards set forth[114] - The board of directors consists of three executive directors and three independent non-executive directors, ensuring independent oversight[164] - The board held a total of four meetings during the year to discuss business development and financial performance[166] - Independent non-executive directors confirmed their independence according to the listing rules, maintaining their status as independent individuals[168] - The company is committed to high standards of corporate governance, adhering to all provisions of the corporate governance code effective as of December 31, 2021[151] - The board has delegated authority to management for executing business strategies and managing daily operations[152] - The board's responsibilities include overseeing business performance, strategy decisions, and ensuring effective internal controls and risk management systems[158] - The board of directors has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific matters of the company[178] Shareholder Information - As of December 31, 2021, major shareholders including Wan Fung Investment hold 480,000,000 shares, representing a 75% equity interest in the company[82] - The board members, including Mr. Tong Xin Kang, Mr. Dong Wei Ting, and Mr. Dong Zhuo Ming, each hold 480,000,000 shares, equating to a 75% equity interest[82] - Wan Fung Investment is recognized as the controlling shareholder, owning 75% of the issued shares post-capitalization issuance and share sale[77] - The company has established a concert party agreement among its major shareholders to ensure unified management and operational control[72] - The equity interests of the board members and major shareholders are in compliance with the Securities and Futures Ordinance[78] - The company maintains transparency in reporting shareholder interests as mandated by the Securities and Futures Ordinance[78] - The equity structure indicates a strong concentration of ownership among a few key individuals, enhancing governance and decision-making efficiency[84] Environmental and Operational Initiatives - The group has established a wastewater treatment facility at its Zhongshan factory to improve environmental performance and reduce utility costs[125] - The group has implemented air filtration and regulation systems to improve air quality and operational efficiency in its production facilities[121] Future Plans and Investments - The company plans to invest in a property project in Tsuen Wan to increase passive income through dividends and capital gains[15] - The company is installing large dyeing and finishing equipment from Germany and Italy to expand its production capabilities[11] - The group has no specific plans for significant investments or capital assets for the upcoming year as of December 31, 2021[135] Stock Options and Remuneration - The company has a stock option plan that allows for the issuance of up to 64,000,000 shares, representing 10% of the total issued shares as of the report date[98] - The remaining term of the stock option plan is approximately six years and two months, expiring on June 19, 2028[104] - No stock options have been granted, agreed upon, exercised, or canceled under the stock option plan as of the report date[92] - The remuneration of the company's directors and senior management is determined by the remuneration committee based on qualifications, experience, and market conditions[113] Business Operations - The main business of the group is the manufacturing and sales of denim fabric[53] - The largest customer accounted for 16.0% of the group's sales, while the top five customers together represented 52.3%[120] - The group has maintained good relationships with suppliers and subcontractors, with no significant disputes reported during the year[119] - The company has not engaged in any significant contracts with controlling shareholders or their subsidiaries during the year[109] Audit and Financial Review - The consolidated financial statements for the year were audited by Deloitte, with no change in auditors since the listing date[147] - The Audit Committee consists of three independent non-executive directors, with the chairman having professional qualifications and experience in accounting and finance[180] - The Audit Committee reviewed the audited consolidated financial statements for the year ended December 31, 2020, and the unaudited interim financial statements for the six months ended June 30, 2021[180] - The company’s independent auditor participated in discussions regarding the audit and internal control matters during the Audit Committee meetings[180]

（於開曼聯島註冊成立的有限公司） 股份代號：1968 都市 are a 目 錄 財務摘要 2 p 管理層討論及分析 3 其他披露資料 6 12 簡明綜合財務報表審閱報告 13 育明綜合損益及其他全面收益表 簡明綜合財務狀況表 14 簡明綜合權益變動表 16 簡明綜合現金流量表 17 19 簡明綜合財務報表附註 - 公司資料 29 - 財務摘要 | --- | --- | --- | |----------------------------------------|----------------------------------------------------------------|------------------------------------------| | | 截至以下日期止六個月 \n二零二一年 六月三十日 千港元 (未經審核) | 二零二零年 六月三十日 千港元 (未經審核) | | 收益 | 174,930 | 112,992 | | | | | | 毛利 | 35,401 | 8,985 | | 毛利率 | 20.2% | 8.0% | | | | | | 除税前溢利(虧損) ...

Financial Performance - For the year ended December 31, 2020, the group recorded total revenue of HKD 255.4 million, a decrease of 49.5% from HKD 506.3 million in 2019[4] - Gross profit for the same period was HKD 23.8 million, down 76.8% from HKD 102.7 million in 2019, resulting in a gross margin of 9.3% compared to 20.3% in 2019[4] - The company reported a loss attributable to owners of HKD 41.0 million, compared to a profit of HKD 5.27 million in 2019, with a loss per share of HKD 0.0641[4] - The company's revenue decreased by approximately 49.5% from about HKD 506.3 million in 2019 to about HKD 255.4 million in 2020[23] - The company reported a loss attributable to shareholders of approximately HKD 41.0 million for 2020, compared to a profit of about HKD 5.3 million in 2019[23] Cash and Financial Position - The group maintained a stable cash position with cash and cash equivalents of approximately HKD 160.9 million, slightly up from HKD 156.8 million in 2019[4] - Cash and bank balances increased by HKD 4.1 million to HKD 160.9 million as of December 31, 2020[22] - Current liabilities decreased by HKD 30.5 million to HKD 133.2 million as of December 31, 2020[22] - The company's capital expenditure for the year was HKD 8.1 million, down from HKD 41.9 million in 2019[30] - The capital-to-debt ratio as of December 31, 2020, was 19.8%, compared to 17.5% in 2019[26] Operational Impact and Recovery - The COVID-19 pandemic led to a significant impact on the textile industry, with the group managing to retain about 50% of sales despite the challenges[9] - The company anticipates a gradual recovery in business as agreements with partners regarding cost-sharing are expected to stabilize operations[14] - The management remains optimistic about future business development, particularly with the rollout of COVID-19 vaccines globally[11] Environmental Initiatives - The group plans to continue its R&D efforts, focusing on developing eco-friendly products to enhance competitiveness and protect the environment[11] - A wastewater treatment facility is set to begin operations in April 2021, aimed at improving water reuse and reducing environmental footprint[11] - The group has taken measures to reduce carbon emissions and fossil fuel consumption while maintaining production capacity[119] - The group has established a wastewater treatment facility in Zhongshan to improve environmental performance and reduce utility costs[119] Employee and Governance - The company has 394 employees as of December 31, 2020, down from 443 in 2019[29] - The group has a strong focus on employee development, offering competitive compensation and benefits, including bonuses and share incentives[114] - The independent non-executive directors provide valuable expertise in the textile and apparel industry, enhancing the company's governance[157] - The company has maintained high standards of corporate governance and complied with all code provisions during the reporting period[144] Shareholder and Equity Structure - As of December 31, 2020, the company and its controlled entities hold 480,000,000 shares, representing a 75% equity interest[66] - The major shareholders include Mr. Tong Xinkang, Mr. Dong Weiting, and Mr. Dong Zhuoming, each holding 480,000,000 shares, equating to a 75% equity interest[76] - The company maintains a consistent equity structure with all major shareholders holding equal shares in the controlled entity[66] - The equity percentage for all major shareholders is uniformly 75%[76] Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the year ended December 31, 2020, and up to the date of this report[110] - The board confirmed its responsibility for the preparation of the consolidated financial statements in accordance with statutory requirements and applicable accounting standards[193] - The company has established a risk management and internal control system to ensure effective operations and compliance with applicable regulations[195] - The board believes that the risk management and internal control systems are adequate and effective for the year[195] Meetings and Committees - The board held a total of four meetings during the year to discuss business development and financial performance[159] - The audit committee held 3 meetings this year, with all members present, ensuring thorough oversight of financial reporting[176] - The remuneration committee reviewed and discussed the remuneration of directors and senior management, holding 1 meeting with full attendance[181] - The nomination committee met once this year, with all members present, focusing on board composition and diversity[189] Future Plans and Investments - The company plans to utilize the remaining proceeds from the share issuance for enhancing product development capabilities and general working capital[19] - There are no significant future investment or capital asset plans disclosed as of December 31, 2020[131] - The company did not engage in any major acquisitions or disposals during the year[133]

HINGTEX HOLDINGS LIMITED 興 紡 控 股 有 限 公 司 (於開曼群島註冊成立的有限公司) 股份代號 : 1968 中 期 報 告 2020 目 錄 2 財務摘要 3 管理層討論及分析 6 其他披露資料 12 簡明綜合財務報表審閱報告 13 簡明綜合損益及其他全面收益表 簡明綜合財務狀況表 14 15 簡明綜合權益變動表 簡明綜合現金流量表 16 18 簡明綜合財務報表附註 29 公司资料 財務摘要 截至以下日期止六個月 二零二零年 二零一九年 六月三十日 六月三十日 千港元 千港元 (未經審核) (未經審核) | --- | --- | --- | |----------------------------------------------|----------|---------| | 收益 | 112,992 | 271,962 | | | | | | 毛利 | 8,985 | 68,408 | | 毛利率 | 8.0% | 25.2% | | | | | | 除税前(虧損)溢利 | (25,654) | 20,302 | | | | | | 本公司擁有人應佔期內(虧損)溢利及 ...

Financial Performance - The company's revenue for the fiscal year ended December 31, 2019, was HKD 506.3 million, a decrease of 21% from HKD 640.7 million in 2018[3] - Gross profit for the same period was HKD 102.7 million, down from HKD 200.6 million in 2018, indicating a significant decline in profitability[3] - Net profit after tax was HKD 5.3 million, compared to HKD 72.8 million in the previous year, reflecting a substantial drop in earnings[3] - Cash and cash equivalents as of December 31, 2019, stood at HKD 156.8 million, supporting the company's stable financial position[4] - As of December 31, 2019, bank balances and cash decreased by HKD 28.3 million to HKD 156.8 million, primarily due to property, plant, and equipment acquisitions totaling HKD 41.9 million[20] - Inventory decreased by HKD 62.0 million to HKD 202.1 million, attributed to reduced sales orders due to the tense situation of the US-China trade war in the second half of 2019[20] - Current liabilities decreased by HKD 73.1 million to HKD 158.7 million, mainly due to lower procurement and bank loan repayments near the end of 2019 compared to the same period in 2018[20] - As of December 31, 2019, the net current asset value was approximately HKD 276.8 million, down from HKD 311.4 million in 2018[22] - The capital expenditure for the year was HKD 41.9 million, significantly higher than HKD 14.7 million in 2018, primarily due to investments in property, plant, and equipment[27] - The debt-to-equity ratio as of December 31, 2019, was 17.5%, a decrease from 26.5% in 2018, calculated based on total borrowings against total equity[23] - As of December 31, 2019, bank borrowings amounted to HKD 65.0 million, down from HKD 108.0 million in 2018[22] Investment and Growth Plans - The company plans to invest in new machinery in 2020 to enhance production capacity and reduce costs, with a total of HKD 140.1 million allocated for machinery procurement[14] - The net proceeds from the IPO, amounting to approximately HKD 147.0 million, are planned for various uses, including enhancing production capabilities and market penetration[13] - The anticipated global economic growth remains low due to trade tensions and the COVID-19 pandemic, leading to a more conservative outlook for the upcoming year[8] - The company aims to expand its market presence in Europe and China, participating in trade exhibitions and collaborating with renowned designers[8] Shareholder Information - The company has proposed a final dividend of HKD 0.008 per ordinary share for the fiscal year ended December 31, 2019, as a gesture of appreciation to shareholders[4] - The company reported a final dividend of HKD 0.8 per share, subject to shareholder approval at the annual general meeting on May 28, 2020, with expected payment on June 12, 2020[48] - As of December 31, 2019, the company's distributable reserves amounted to approximately HKD 127,644,000[54] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code during the financial year ending December 31, 2019[107] - The company has established an audit committee to oversee financial reporting and compliance[108] - The board of directors consists of three executive directors and three independent non-executive directors, ensuring independent oversight[156] - The board held a total of five meetings during the year to discuss business development and financial performance[158] - All independent non-executive directors confirmed their independence according to the listing rules[160] - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with clear written terms of reference[172] - The Audit Committee held three meetings this year, with all members present at each meeting, ensuring thorough oversight of financial reporting and internal controls[175] - The Remuneration Committee reviewed and discussed the remuneration of directors and senior management, with three individuals earning less than HKD 1,000,000 and one earning between HKD 1,000,001 and HKD 2,000,000[179] - The Nomination Committee conducted a review of the board's structure and diversity policy, concluding that the current composition meets the company's needs[184] - The company encourages continuous professional development for all directors, ensuring they are updated on corporate governance practices and regulatory requirements[164] Environmental and Social Responsibility - The group has adopted geothermal energy for steam production, transitioning from coal-fired boilers in collaboration with local government[113] - The group has replaced some existing equipment with more resource-efficient models to reduce wastewater pollution and fossil fuel consumption[114] - The group made charitable donations of approximately HKD 429,000 during the year[49] Risk Management and Compliance - The board confirmed that the risk management and internal control systems are adequate and effective, with a review conducted every six months[190] - The company has a structured internal control system aimed at ensuring reliable financial reporting and compliance with applicable regulations[190] - The group has confirmed compliance with relevant laws and regulations in Hong Kong and China, with no significant violations reported[115] Employee Relations - The company did not experience any major issues with employees and had no disputes that could disrupt operations[26] - The group emphasizes employee development and has implemented a compensation policy to reward experienced employees, including bonuses and stock incentives[109] - The remuneration of the group's directors and senior management is determined by the remuneration committee based on qualifications, experience, ability, and market conditions[100] Major Shareholders and Ownership Structure - Wan Feng Investment holds 75% of the issued shares, making it the controlling company of the firm[69] - The major shareholders include Mr. Dong Xinkang, Mr. Dong Zhaoting, and Mr. Dong Zhuoming, each holding 30%, 20%, and 20% respectively[70] - As of December 31, 2019, Wan Feng Investment owned 480,000,000 shares, representing 75% of the total equity[73] - The company has established a concert party agreement among its major shareholders to ensure unified management and operational control[70] Audit and Financial Reporting - The company’s financial statements for the year ended December 31, 2019, were audited by Deloitte[43] - The external auditor for the group is Deloitte, with audit fees amounting to HKD 1,200,000 and non-audit service fees of HKD 400,000 for the six months ending June 30, 2019[194] - The board is responsible for the preparation of the consolidated financial statements in accordance with applicable accounting standards[186] Communication and Disclosure - The company emphasizes the importance of communication with shareholders, providing detailed operational and financial performance information through annual and interim reports[196] - The company has established a continuous disclosure policy to enhance disclosure procedures and provide training to relevant personnel[191] - The company has a dedicated website that is regularly updated to provide investors with the latest information[196]

香港交易及結算所有限公司、香港聯合交易所有限公司及香港中央結算有限公司 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。 HINGTEX HOLDINGS LIMITED 興 紡 控 股 有 限 公 司 （ 於開曼群島註冊成立的有限公司） （股份代號：1968） 有關截至二零一八年十二月三十一日止年度之年報及 截至二零一九年六月三十日止六個月之中期報告之補充公告 茲提述興紡控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）日期為二零 一八年六月二十八日之招股章程（「招股章程」）、本集團截至二零一八年十二月三 十一日止年度之年報（「2018年年報」），以及本集團截至二零一九年六月三十日止 六個月之中期報告（「2019年中期報告」）。除非另有界定，否則本公告所用詞彙與 招股章程、2018年年報及2019年中期報告所界定者具有相同涵義。 除2018年年報及2019年中期報告之「首次公開發售所得款項用途」一節所披露之資 料外，董事會謹此 ...

Revenue Performance - Revenue for the first half of 2019 decreased by approximately 29.0% to HKD 271.96 million, compared to HKD 383.18 million in the same period of 2018[7] - Revenue for the six months ended June 30, 2019, was HKD 271,962,000, a decrease of 29.2% compared to HKD 383,181,000 for the same period in 2018[54] - Total revenue for the six months ended June 30, 2019, was HKD 271,962,000, a decrease of 29.1% compared to HKD 383,181,000 for the same period in 2018[109] - Revenue from elastic blended denim fabric was HKD 237,150,000, down 31.2% from HKD 344,782,000 in the previous year[109] - The main revenue source, elastic blended denim, accounted for 87.2% of total revenue, generating HKD 237.2 million, down from HKD 344.8 million in the first half of 2018[8] Profitability - Gross profit for the first half of 2019 was HKD 68.41 million, with a gross margin of 25.2%, down from HKD 123.77 million and 32.3% in the first half of 2018[4] - The company reported a profit attributable to owners of HKD 13,537,000, a decline of 76.5% from HKD 57,463,000 in the previous year[54] - Basic earnings per share decreased to HKD 2.12 from HKD 11.97, representing a drop of 82.3%[54] - For the six months ended June 30, 2019, the pre-tax profit was HKD 20,302,000, a decrease of 70.6% compared to HKD 68,973,000 for the same period in 2018[65] - The company paid dividends of HKD 12,800,000, a decrease of 82.3% compared to HKD 72,459,000 in the previous year[67] Financial Position - Cash and cash equivalents as of June 30, 2019, were approximately HKD 166.7 million, down from HKD 185.1 million at the end of 2018[11] - As of June 30, 2019, the net current assets were approximately HKD 299.2 million, a decrease from HKD 311.4 million as of December 31, 2018[18] - Total assets as of June 30, 2019, were HKD 492,433,000, down from HKD 543,225,000 at the end of 2018[57] - Current liabilities decreased to HKD 193,246,000 from HKD 231,781,000, indicating a reduction of 16.6%[57] - The bank balance and cash, along with restricted bank deposits, amounted to approximately HKD 170.7 million as of June 30, 2019, down from HKD 189.2 million as of December 31, 2018[18] Capital and Investments - The company raised approximately HKD 147.0 million from its initial public offering, with HKD 9.2 million allocated for the purchase of a denim pre-shrinking machine[17] - The company has a capital commitment of HKD 25.4 million for the acquisition of a yarn dyeing machine as of June 30, 2019[25] - The group reported capital expenditure contracted but not provided for in the financial statements amounted to HKD 25,400,000 as of June 30, 2019[144] - The company acquired production equipment worth approximately HKD 15,311,000 during the interim period to enhance production capacity[124] Market Strategy and Outlook - The company plans to enhance its competitiveness by expanding its business in Europe and China, participating in more trade shows, and collaborating with local fashion designers[13] - The company aims to develop innovative elastic blended denim and eco-friendly products, utilizing funds raised from its listing to purchase new equipment for increased production capacity[12] - The company is exploring market expansion opportunities in Southeast Asia, targeting a 25% increase in market share within the next two years[147] - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to 12% based on current market trends[147] - New product development is underway, with plans to launch two innovative textile products by Q3 2019, expected to enhance market competitiveness[147] Governance and Ownership - Wan Fung Investment holds 75% of the issued shares, making it the controlling company of the firm[41] - The beneficial ownership structure includes Mr. Dong Xinkang, Mr. Dong Weiting, and Mr. Dong Zhuoming, each holding significant stakes[42] - The company has established a clear governance structure with defined ownership percentages among key stakeholders[42] - All directors are considered beneficial owners of 480,000,000 shares, representing 75% ownership in the company[41] Compliance and Risk Management - Compliance and regulatory measures are being strengthened to ensure adherence to industry standards and practices, with a focus on risk management[148] - The company is committed to enhancing shareholder value through consistent dividend payments, with a proposed increase of 5% in the upcoming fiscal year[147] Employee and Operational Metrics - The company had 483 employees as of June 30, 2019, an increase from 458 employees as of December 31, 2018[20] - The total compensation for directors and key management personnel was HKD 8,224,000 for the six months ended June 30, 2019, compared to HKD 9,018,000 for the same period in 2018[139] Financial Changes and Accounting Policies - The company adopted the Hong Kong Financial Reporting Standard 16, resulting in significant accounting policy changes[82] - The company recognized a lease liability of HKD 11,831,000 as of January 1, 2019, with current and non-current portions of HKD 5,975,000 and HKD 5,856,000 respectively[104] - The right-of-use assets recognized under HKFRS 16 amounted to HKD 32,424,000, which includes HKD 5,969,000 related to operating leases[101]

HINGTEX HOLDINGS LIMITED 興 紡 控 股 有 限 公 司 (於開疊群島註冊成立的有限公司) 股份代號 : 1968 . 年報 201 ● ● ● . ● . 目錄 2 主席報告書 4 管理層討論及分析 6 董事及高級管理層 8 董事會報告 23 企業管治報告 33 獨立核數師報告 38 綜合損益及其他全面收益表 39 綜合財務狀況表 41 綜合權益變動表 . o t 201 ● 42 綜合現金流量表 t and on the comments of 44 綜合財務報表附註 .... 120 財務概要 One of the st 121 公司資料 ... . . . . . . 主席報告書 本人謹代表董事會提呈截至二零一八年十二月三十一日止年度（「本年度」）的經營業績。 過去一年，主要經濟體系特別是中華人民共和國（「中國」）與美國（「美國」）相互實施貿易關稅，貿易增長動力隨後 減弱，致使全球經濟增長步伐放緩，從而嚴重影響我們的客戶，該等客戶大部分為美國的品牌擁有人（「品牌擁有 人」）。雖然興紡於本年度內繼續受益於牛仔布市場的強烈需求，我們的客戶為避免可能產生額外的貿易關稅，而 將已完成生 ...