Financial Performance - Revenue for the six months ended June 30, 2024, increased by 5.6% to HKD 2,471.0 million compared to HKD 2,339.4 million in the same period last year[8]. - Operating profit rose by 21.1% to HKD 200.1 million, up from HKD 165.3 million year-on-year[8]. - Profit attributable to owners of the company increased by 28.6% to HKD 175.8 million, compared to HKD 136.7 million in the previous year[8]. - Gross profit margin improved by 2.8 percentage points to 20.3% from 17.5%[8]. - Basic earnings per share increased from HKD 0.13 to HKD 0.17[8]. - Gross profit for the same period was HKD 501,850,000, compared to HKD 408,835,000 in 2023, reflecting a year-over-year increase of about 22.7%[39]. - Operating profit increased to HKD 200,111,000, up from HKD 165,253,000 in the previous year, marking a growth of approximately 21.1%[39]. - Net profit attributable to the owners of the company for the period was HKD 175,830,000, compared to HKD 136,712,000 in 2023, indicating an increase of around 28.7%[39]. - Basic and diluted earnings per share for the period were HKD 0.17, up from HKD 0.13 in the same period last year, representing a growth of 30.8%[39]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.052 per share, up from HKD 0.028 in the previous year[9]. - The board has declared an interim dividend of HKD 0.052 per ordinary share, an increase from HKD 0.028 per share in 2023[24]. - The interim dividend declared was HKD 0.052 per share, totaling HKD 53,600,000, compared to HKD 0.028 per share and HKD 28,900,000 in the previous year, reflecting an 85.7% increase[97]. - As of June 30, 2024, the total number of ordinary shares held by directors and senior management amounts to 687,745,521, representing approximately 66.75% of the issued share capital[28]. - Major shareholders include Tong Yat Holdings Limited with 354,883,279 shares (34.44%) and Tian Ying Investment Limited with 313,614,262 shares (30.44%) as of June 30, 2024[29]. Asset and Liability Management - The asset-liability ratio decreased significantly by 27.5 percentage points to 12.2% from 39.7%[8]. - The current ratio remained stable at 1.14 times for both June 30, 2024, and December 31, 2023[13]. - The debt-to-equity ratio decreased to 12.2% as of June 30, 2024, from 39.7% as of December 31, 2023, primarily due to net repayment of bank borrowings[13]. - As of June 30, 2024, total bank borrowings were HKD 207.9 million, a decrease from HKD 654.9 million as of December 31, 2023[17]. - The company has strategically built up inventory of raw materials to improve supply chain flexibility and reduce logistics costs[10]. Cash Flow and Investments - Net cash generated from operating activities was HKD 332.9 million for the period, significantly up from HKD 21.7 million for the same period last year[13]. - Cash used in investing activities was HKD 183.9 million, an increase from HKD 111.6 million in the previous year, mainly due to increased purchases of property, plant, and equipment[13]. - Operating cash generated for the six months ended June 30, 2024, was HKD 347,777, compared to HKD 32,588 for the same period in 2023, representing a significant increase[52]. - The company incurred a net cash outflow from investing activities of HKD 183,880 for the six months ended June 30, 2024, compared to HKD 111,567 in 2023, primarily due to increased capital expenditures[52]. - The company raised HKD 140,879 from bank borrowings during the six months ended June 30, 2024, compared to HKD 116,495 in the same period of 2023, indicating increased leverage[53]. Business Segments and Growth - The performance in the new energy business was strong, contributing to the overall revenue growth[9]. - The industrial power division's revenue increased by 16.1% year-on-year, accounting for 40.0% of the group's total revenue[10]. - The new energy division's revenue rose by 15.5% year-on-year, representing 17.0% of total business revenue[10]. - The company anticipates continued strong growth in its new energy business in the second half of the year due to rising demand for energy storage products[10]. - The company is focusing on developing smart chargers and fully digital power products for various applications, including electric forklifts and industrial robots[11]. Research and Development - Research and development expenses amounted to HKD 93,417, up from HKD 83,032 in the previous year, indicating a focus on innovation[90]. Financial Risk Management - The company maintained a prudent liquidity risk management strategy, ensuring sufficient cash and bank balances to meet financial obligations[64]. - The company’s financial risk factors include market risk, credit risk, and liquidity risk, which are essential for assessing overall financial health[63]. - The financial risk management policies have remained unchanged since December 31, 2023[63]. Inventory and Receivables - The inventory balance as of June 30, 2024, was HKD 783,018,000, an increase of 7.6% from HKD 727,329,000 as of December 31, 2023[113]. - Trade receivables increased to HKD 1,235,318,000 as of June 30, 2024, compared to HKD 1,176,536,000 as of December 31, 2023, representing a growth of 5%[115]. - The provision for trade receivables increased to HKD 6,884,000 as of June 30, 2024, from HKD 5,844,000 as of December 31, 2023[115]. Share Incentive Plan - The Tianbao Electronics (Huizhou) share incentive plan aims to establish a long-term incentive mechanism and attract suitable talent for the group's development[32]. - The stock options granted to Yang Bingbing and Hong Guangdai on February 28, 2024, are 8,700,000 and 2,000,000 respectively, both with an exercise price of 1.00[32]. - The company confirmed an expense of HKD 1,698,000 related to the share reward plan for the six months ended June 30, 2024, compared to no expenses in the same period of 2023[128].

Financial Performance - Revenue for the six months ended June 30, 2024, increased by 5.6% to HKD 2,471.0 million compared to the same period last year[1] - Gross profit for the same period rose by 22.8% to HKD 501.9 million, with a gross margin increase of 2.8 percentage points to 20.3%[1] - Profit before tax for the six months ended June 30, 2024, increased by 28.2% to HKD 207.0 million compared to the previous year[1] - Profit attributable to owners of the company for the same period increased by 28.6% to HKD 175.8 million[1] - Basic and diluted earnings per share for the six months ended June 30, 2024, were HKD 0.17, compared to HKD 0.13 in the same period last year[3] - The company reported total revenue of 2,471,011 for the six months ended June 30, 2024, with a significant contribution from the smart chargers and controllers segment at 989,123[18] - The net profit before tax for the same period was 207,024, reflecting a strong performance across various segments[18] - The company reported a net other income of 28,912 for the six months ended June 30, 2024, compared to 20,146 in the previous year[21] - Financial income for the six months ended June 30, 2024, was 6,913, a significant improvement from a net financial expense of (3,827) in the same period last year[25] - The company reported a profit attributable to shareholders of HKD 175,830,000 for the six months ended June 30, 2024, compared to HKD 136,712,000 for the same period in 2023, representing a year-over-year increase of approximately 28.7%[30] - Basic earnings per share increased to HKD 0.17 for the six months ended June 30, 2024, up from HKD 0.13 in the same period of 2023, reflecting a growth of 30.8%[30] Dividends - The board declared an interim dividend of HKD 0.052 per share, up from HKD 0.028 per share in the previous year[1] - The interim dividend declared is HKD 0.052 per share, which is an increase from HKD 0.028 per share in the interim of 2023, amounting to HKD 53.6 million compared to HKD 28.9 million previously[32] - The interim dividend payment is scheduled for October 25, 2024, for shareholders listed on the register as of October 10, 2024[63] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 4,218.2 million, a decrease from HKD 4,319.6 million as of December 31, 2023[5] - Total liabilities as of June 30, 2024, were HKD 2,512.1 million, down from HKD 2,668.3 million at the end of the previous year[6] - Cash and cash equivalents increased to HKD 232.4 million from HKD 150.5 million as of December 31, 2023[5] - The net book value of property, plant, and equipment as of June 30, 2024, is HKD 1,178,320,000, up from HKD 1,110,147,000 as of December 31, 2023, indicating a growth of approximately 6.1%[33] - Trade receivables as of June 30, 2024, amounted to HKD 1,235,318,000, an increase from HKD 1,176,536,000 as of December 31, 2023, representing a rise of about 5%[35] - The company’s inventory as of June 30, 2024, is valued at HKD 783,018,000, compared to HKD 727,329,000 as of December 31, 2023, showing an increase of about 7.6%[34] - The company’s bank borrowings stood at HKD 274,192,000 as of June 30, 2024, compared to HKD 214,798,000 as of December 31, 2023, reflecting an increase of approximately 27.6%[37] - Total bank borrowings as of June 30, 2024, amounted to HKD 207,944,000, down from HKD 654,899,000 at the beginning of the year[41] - As of June 30, 2024, total bank borrowings were HKD 207.9 million, a decrease from HKD 654.9 million as of December 31, 2023[55] Segment Performance - The newly established New Energy segment generated revenue of 420,911, indicating the growing importance of this business area[18] - The company has identified six reportable segments, including Smart Chargers and Controllers, Telecommunications, New Energy, Media and Entertainment, Lighting, and Others, to enhance resource allocation and business development[17] - The company anticipates continued growth in the New Energy segment, which includes outdoor power equipment charging modules and automotive electronic applications[17] - The industrial power segment's revenue increased by 16.1% year-on-year, accounting for 40.0% of total revenue[46] - The sales of energy storage products and automotive electronics increased by 15.5% year-on-year, accounting for 17.0% of total business revenue[47] - Revenue from the consumer electronics power division declined by 5.6% year-on-year due to the ongoing global economic recovery challenges[47] Corporate Governance - The board consists of four independent non-executive directors, ensuring effective governance and oversight[65] - The company emphasizes adherence to corporate governance principles and has established various committees to enhance accountability and transparency[61] - The company will continue to review its board structure and composition to maintain high standards of corporate governance[61] - The audit committee reviewed the unaudited interim consolidated financial statements and confirmed the effectiveness of the group's risk management and internal control systems[65] - The company has adopted the standard code for securities trading by directors, ensuring compliance and transparency in trading activities[62] Risk Management - The group faces various financial risks including market risk (foreign exchange risk, price risk, cash flow and fair value interest rate risk), credit risk, and liquidity risk[14] - The company maintains sufficient cash and bank balances to manage liquidity risk effectively, and the directors believe there are no significant liquidity risks[15] Future Outlook - The company plans to launch more household energy storage inverters, which have already been introduced in the European market[49] - The company is developing smart chargers and digital power products for various applications, including electric forklifts and industrial robots[50] - The company aims to enhance its non-electric product lines and introduce more customized products with higher value content[51] - The company has a strong cash reserve and is considering various investment opportunities to expand its business and enhance competitive advantages[51] - The new factory in Huizhou covers approximately 200,000 square meters, allowing for further automation and production capacity expansion[48] - The company anticipates continued strong growth in its new energy business in the second half of the year[47]

Corporate Governance - The board of directors has established core values to guide employee conduct and business activities, emphasizing empathy towards stakeholders [4] - The company has maintained good corporate governance standards, which are crucial for protecting shareholder interests and enhancing company value [4] - The remuneration policy ensures that employee compensation is based on skills, knowledge, responsibilities, and participation in company affairs [27] - The nomination committee held two meetings during the year, reviewing the board's structure and recommending the reappointment of retiring directors [29] - Independent non-executive directors confirmed their independence in accordance with listing rules, ensuring compliance with governance standards [12] - The audit committee, compensation committee, and nomination committee are composed mainly of independent non-executive directors, ensuring independent oversight [26] - The board is responsible for approving and monitoring all policy matters, overall strategy, budget, and significant transactions [6] - The company encourages open and honest expression of opinions during board and committee meetings to foster transparency [21] - The board consists of six directors, including one female, reflecting a balanced and diverse composition suitable for the company's business needs [32] - The nomination committee reviews the board's diversity policy annually to ensure its effectiveness [33] - The board has not set measurable targets for diversity, believing the current composition is sufficiently diverse [32] Risk Management and Compliance - The company has established a whistleblowing policy to address potential misconduct related to its operations [59] - The audit committee held three meetings during the year ending December 31, 2023, to review the financial reporting system and risk management [43] - The company has implemented a risk management and internal control system, with annual self-assessments conducted by departments to ensure compliance [56] - The company is committed to maintaining effective risk management and internal control systems to achieve its strategic objectives [56] - The company has a policy for handling and disclosing insider information, ensuring confidentiality and proper communication protocols [57] - The group emphasizes compliance with environmental regulations and promotes green development and energy conservation [77] - The group has adhered to all relevant laws and regulations in the Cayman Islands and Hong Kong that significantly impact its operations and financial performance for the year ended December 31, 2023 [94] - The company has a robust anti-corruption policy in place, including training to foster a culture of integrity [59] Financial Performance and Shareholder Matters - As of December 31, 2023, the reserves available for distribution to shareholders amounted to approximately HKD 339,691,000, slightly up from HKD 339,083,000 in 2022 [99] - The group reported a charitable donation of HKD 2,031,000 for the year ended December 31, 2023, compared to HKD 1,542,000 in 2022 [100] - The board will review the dividend policy periodically and will declare dividends only when it is in the best interest of the group and its shareholders [85] - The company proposed a final dividend of HKD 0.096 per share for the year ending December 31, 2023, compared to HKD 0.033 in 2022, pending shareholder approval [114] - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting [61] Business Operations - The group is engaged in the development, manufacturing, and sales of electronic charging products primarily through its subsidiaries in China [76] - The group operates as an investment holding company, focusing on consumer goods such as switch power supplies and industrial smart chargers and controllers [74] - The group has its headquarters in Hong Kong and primarily conducts its business operations in China [76] Share Incentive Plans - The maximum number of shares available for issuance under the Tian Pao Electronics (Huizhou) share incentive plan is capped at 10% of the total issued share capital, which amounts to RMB 24,746,341 [109] - The total number of shares available for grant under the Tian Pao Electronics (Huizhou) share incentive plan as of the report date is RMB 14,046,341, representing approximately 5.68% of the total issued share capital [109] - The Tian Pao Electronics (Huizhou) share incentive plan will remain effective for a period of 10 years starting from April 8, 2024 [111] - The company did not enter into any stock-linked agreements during the review year, aside from the stock option plan adopted on November 23, 2015 [127] - The board has proposed the adoption of a share incentive plan for its subsidiary, Tian Pao Electronics (Huizhou), which requires shareholder approval [133] - The reward shares granted under the Tian Pao Electronics (Huizhou) share incentive plan will be immediately vested upon grant, subject to a five-year lock-up period [142] - No shares were granted under the Tian Pao Electronics (Huizhou) share incentive plan during the year ending December 31, 2023, as the plan had not yet been adopted [143] Lease Agreements - The annual rental cap payable to Tianxiang under the lease agreement for 2023 is HKD 660,000 [155] - The actual transaction amount for the 2023 lease agreement with Jinhai is HKD 576,000 [157] - The actual transaction amount for the 2023 Xinyang lease agreement is RMB 3,600,000 (approximately HKD 3,907,077) [159] - The annual rental cap payable to Tianenergy under the first lease agreement for 2023 is RMB 5,880,000 (approximately HKD 6,374,847) [164] - The annual rental cap payable to Tianenergy under the second lease agreement for 2023 is RMB 2,388,000 (approximately HKD 2,608,066) [166] - The monthly rent for the Xinyang lease agreement is RMB 300,000 (approximately HKD 325,590) [159] - The monthly rent for the Tianenergy lease agreement is RMB 490,000 (approximately HKD 531,237) [160] - The monthly rent for the Tianxiang lease agreement is HKD 48,000 [157] - The lease term for the Tianenergy agreement is from January 1, 2023, to December 31, 2023 [164] - The lease term for the Tianxiang agreement is from January 1, 2024, to December 31, 2024 [170] - The actual transaction amount for the Tianxiang lease agreement for the year ended December 31, 2023, was HKD 660,000 [179] - The annual cap for rent payable to Jinhou under the Jinhou lease agreement for the year ended December 31, 2023, was HKD 576,000 [180] - The actual transaction amount for the first Tianenergy charging lease agreement for the year ended December 31, 2023, was approximately HKD 6,374,847 [190] - The actual transaction amount for the second Tianenergy charging lease agreement for the year ended December 31, 2023, was approximately HKD 2,608,066 [192] - The total actual rent paid to related parties of the Chairman under the 2023 lease agreements for the year ended December 31, 2023, was HKD 14,125,990 [195] - The total rent payable to Tianxiang for the year ending December 31, 2024, will not exceed HKD 600,000 [197] - The monthly rent for the first Tianenergy charging lease agreement is RMB 199,000, equivalent to approximately HKD 217,339 [189] - The monthly rent for the Jinhou lease agreement is HKD 44,000 [173] - The monthly rent for the property located at Hong Kong Kwun Tong is HKD 50,000 [194] - The lease agreements for 2024 were established to minimize relocation costs and avoid production disruptions [171]

Financial Performance - Revenue for the year ended December 31, 2023, decreased by 12.0% to HKD 4,823.5 million[4] - Gross profit for the year ended December 31, 2023, decreased by 0.9% to HKD 907.2 million, with a gross margin increase of 2.1 percentage points to 18.8%[4] - Profit before tax for the year ended December 31, 2023, increased by 10.3% to HKD 387.9 million[4] - Profit attributable to owners of the company for the year ended December 31, 2023, increased by 10.8% to HKD 328.2 million[20] - The company reported a basic and diluted earnings per share of HKD 0.319 for the year ended December 31, 2023, compared to HKD 0.293 in 2022[20] - The group’s profit before tax for 2023 was HKD 387,879,000, an increase of 10.2% from HKD 351,778,000 in 2022[73] - The total comprehensive income attributable to the company's owners increased by 96.3% from HKD 154.9 million for the year ended December 31, 2022, to HKD 304.2 million for the year ended December 31, 2023, including a currency translation loss of HKD 23.5 million due to RMB depreciation[137] Dividends - The board proposed a final dividend of HKD 0.096 per share, subject to shareholder approval at the 2024 annual general meeting[4] - The proposed final dividend per share for 2023 is HKD 0.096, up from HKD 0.033 in 2022, resulting in a total proposed dividend of HKD 98,917,000 compared to HKD 34,003,000 in the previous year[75] - The company will propose a final dividend of HKD 9.6 per share for the year ending December 31, 2023, totaling HKD 98,917,000, compared to HKD 3.3 per share in the previous year[103] - The company reported a final dividend of HKD 0.096 per share for the year ended December 31, 2023, compared to HKD 0.033 per share for the previous year, representing an increase of approximately 190.9%[193] Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 4,319.6 million, an increase from HKD 3,890.4 million in 2022[25] - Total liabilities increased to HKD 2,668,298 thousand in 2023 from HKD 2,477,312 thousand in 2022, representing an increase of 7.7%[26] - Current liabilities decreased slightly to HKD 2,470,623 thousand in 2023 from HKD 2,098,349 thousand in 2022, a decrease of 17.0%[26] - Trade receivables increased to HKD 1,176,536,000 in 2023 from HKD 1,050,103,000 in 2022, reflecting a growth of 12%[78] - The group’s lease liabilities increased, with current liabilities at HKD 12,002,000 and non-current liabilities at HKD 46,390,000, compared to HKD 8,241,000 and HKD 16,916,000 in 2022 respectively[76] Cash Flow and Investments - Cash and cash equivalents as of December 31, 2023, were HKD 150.5 million, down from HKD 341.4 million in 2022[25] - Cash generated from operating activities decreased to HKD 484.7 million for the year ended December 31, 2023, down from HKD 595.9 million in 2022, reflecting a decrease in revenue[138] - The net cash used in financing activities was HKD 377.3 million for the year ended December 31, 2023, compared to HKD 300.4 million in 2022, primarily due to continued repayment of bank loans[139] - Cash used in investing activities amounted to HKD 295.0 million for the year ended December 31, 2023, an increase from HKD 228.0 million in the previous year, primarily due to significant investments in new facilities and machinery[184] Research and Development - Research and development expenses amounted to HKD 123,993 thousand in 2023, compared to HKD 121,736 thousand in 2022, reflecting a slight increase of 1.9%[41] - The group’s R&D focus remains a strategic priority, with ongoing development of high-power fast charging solutions expected to contribute positively to future performance[89] - The company plans to enhance R&D investments overseas to strengthen its competitive advantage in product offerings[90] - The company is focusing on developing higher power and faster charging speed products in its new energy strategy[113] Market and Business Strategy - The company has established a three-pronged strategy focusing on charging modules, energy storage, and automotive electronics to meet increasing market demand[95] - The company aims to enhance its global sales network and improve production capabilities through the deployment of automated production equipment and AI manufacturing technologies[98] - The company plans to expand its new energy business into an independent division, focusing on three core areas: charging modules, energy storage, and automotive electronics applications[150] - The company anticipates improved consumer sentiment in the Chinese market, despite ongoing macroeconomic uncertainties[116] Corporate Governance - The company has adopted the standard code for directors' securities trading as per the listing rules, ensuring compliance and governance[174] - The board of directors has reviewed the company's corporate governance practices and confirmed adherence to the relevant guidelines, except for the separation of the roles of Chairman and CEO[190] - The audit committee has reviewed the consolidated financial results for the year ended December 31, 2023, and found the risk management and internal control systems to be effective and adequate[177] Miscellaneous - The company has completed the first phase of the Huizhou Intelligent Manufacturing Industrial Park, with production equipment gradually moving to the new site, expected to be fully relocated by early 2025[91] - The independent auditor, PwC, has verified the annual performance figures, which are consistent with the consolidated financial statements[198] - No significant events affecting the group occurred after December 31, 2023, up to the date of publication[180]

Financial Performance - Revenue decreased by 22.0% year-on-year to HKD 2,339.4 million[20] - Gross profit decreased by 9.3% year-on-year to HKD 408.8 million, with a gross margin increase from 15% to 17.5%[20] - Profit attributable to owners increased by 2.8% year-on-year to HKD 136.7 million, with basic earnings per share remaining at HKD 0.13[20] - Operating profit increased by 0.4% year-on-year to HKD 165.3 million, with an operating margin of 7.1%[16] - For the six months ended June 30, 2023, the group's revenue was HKD 2,339.4 million, a decrease of 22.0% compared to HKD 2,997.8 million in the same period of 2022[31] - The gross profit margin increased by 2.5 percentage points to 17.5% in 2023, up from 15.0% in 2022[31] - The net profit margin attributable to shareholders rose to 5.8% in 2023, compared to 4.4% in 2022, reflecting improved profitability[31] - The company reported a profit of 136,459 for the six months ended June 30, 2023, compared to 132,479 for the same period in 2022, reflecting an increase of approximately 2.2%[100] - The total comprehensive income attributable to the owners of the company was 78,185 for the six months ended June 30, 2023, compared to 51,894 for the same period in 2022, indicating a significant increase of approximately 50.7%[100] Cash Flow and Investments - The group’s cash generated from operating activities was HKD 21.7 million for the period, an increase from HKD 10.3 million in the same period last year[43] - Investment activities used a net cash of HKD 111.6 million, primarily due to increased purchases of property, plant, and equipment totaling HKD 114.8 million[44] - Cash flow from financing activities showed a net cash outflow of HKD 133,110,000 in 2023, compared to a net inflow of HKD 27,988,000 in 2022[174] - The company reported a net cash inflow from operating activities of HKD 21,654,000 in 2023, compared to a net cash outflow of HKD 10,345,000 in 2022[153] - The company incurred capital expenditures of HKD 114,822,000 in 2023, compared to HKD 99,999,000 in 2022, an increase of 14.8%[153] Debt and Equity - The debt-to-asset ratio improved by 6.5 percentage points to 25.5%[17] - As of June 30, 2023, the group's bank borrowings amounted to HKD 370.9 million, a decrease from HKD 451.5 million as of December 31, 2022[46] - As of June 30, 2023, the debt-to-equity ratio was 25.5%, down from 31.9% as of December 31, 2022, primarily due to net repayment of bank loans[67] - The total liabilities decreased to HKD 2,210,409,000 from HKD 2,477,312,000 year-over-year[148] Operational Efficiency - The average inventory turnover period decreased by 11.0% to 73 days[17] - The company reported a decrease in inventory from HKD 906,377 to HKD 651,673, a decline of 28.1%[124] - Total employee costs for the period were HKD 326.2 million, down from HKD 493.6 million in the same period last year[76] Market and Product Development - The company aims to enhance its market responsiveness and develop more new energy-related charging and storage products[27] - The portable energy storage product order forecast is better than expected, with significant growth anticipated in the second half of the year[27] - The company plans to invest more resources in developing new energy business while cautiously allocating resources to consumer power supply business[26] - The renewable energy business accounted for approximately 15% of the group's total revenue, with expectations for continued growth in this segment[35] - The company plans to broaden its product line and enhance product solutions, focusing on fast-charging technology for electric vehicles[66] Shareholder Information - The company declared an interim dividend of HKD 0.028 per share, consistent with the previous year[80] - Major shareholders include 同悅控股有限公司 with 34.29% and 天鷹投資有限公司 with 30.44% of the issued share capital as of June 30, 2023[88] - The company has a total of 686,213,521 shares held by major shareholders, representing 66.60% of the issued share capital[108] - The company will suspend share transfer registration from October 11 to October 13, 2023, for shareholders entitled to receive the interim dividend[103] Risk Management and Compliance - The audit committee reviewed the effectiveness of the company's risk management and internal control systems, deeming them effective[83] - The company has complied with the listing rules, maintaining at least 25% of its issued shares held by the public[106] Foreign Exchange and Financial Instruments - The company reported a currency translation loss of (52,529) for the six months ended June 30, 2023, compared to (75,080) for the same period in 2022[100] - The fair value of non-listed equity investments experienced a change of HKD (6,149,000) as of December 31, 2022[193] - The company utilizes observable market data for fair value estimation, classifying financial instruments into three levels based on the availability of market inputs[189]

Financial Performance - Revenue for the six months ended June 30, 2023, decreased by 22.0% to HKD 2,339.4 million compared to the same period last year[2]. - Gross profit for the same period decreased by 9.3% to HKD 408.8 million, with a gross margin increase of 2.5 percentage points to 17.5%[2]. - Profit before tax for the six months ended June 30, 2023, increased by 0.9% to HKD 161.4 million compared to the previous year[2]. - Profit attributable to owners of the company for the same period increased by 2.8% to HKD 136.7 million[2]. - Basic earnings per share remained stable at HKD 0.13, unchanged from the same period last year[84]. - The company's total expenses for the six months ended June 30, 2023, were 2,199,966, down from 2,872,991 in 2022, indicating a reduction of approximately 23.4%[58]. Dividends - The board declared an interim dividend of HKD 0.028 per share, consistent with the previous year[2]. - The board has declared an interim dividend of HKD 0.028 per ordinary share, consistent with the previous year's interim dividend[119]. - The interim dividend will be distributed on October 9, 2023[120]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 3,667.5 million, a decrease from HKD 3,890.4 million as of December 31, 2022[9]. - Current assets, including inventories, decreased to HKD 651.7 million from HKD 906.4 million[9]. - Total liabilities decreased to HKD 2,210.4 million from HKD 2,477.3 million[16]. - The total bank borrowings as of June 30, 2023, amount to HKD 370,873, a decrease from HKD 625,781 as of December 31, 2022, reflecting a reduction of approximately 40.7%[79]. - The group held cash and bank balances totaling HKD 333.0 million as of June 30, 2023, down from HKD 512.0 million as of December 31, 2022[109]. Income and Expenses - Other income for the six months ended June 30, 2023, increased to HKD 11.9 million from HKD 7.9 million in the previous year[5]. - Selling expenses totaled HKD 89,811,000, and administrative expenses were HKD 179,581,000[41]. - Financial expenses net amount decreased to (3,827) from (4,524), showing an improvement of approximately 15.4%[59]. - The total employee cost for the period was HKD 326.2 million, compared to HKD 493.6 million in the same period last year[110]. Segment Performance - The segment performance showed that the telecommunications segment generated revenue of HKD 720,883,000, while the smart chargers and controllers segment contributed HKD 851,593,000[41]. - The consumer power segment generated revenue of HKD 1,487.8 million, down 6.1% year-on-year, representing 63.6% of total revenue[90]. - The industrial power segment recorded revenue of HKD 851.6 million, accounting for 36.4% of total revenue[90]. - The new energy business accounted for approximately 15% of the group's total revenue, with expectations for continued growth in this segment[87]. Risk Management - The company continues to face various financial risks, including market risk, credit risk, and liquidity risk, with no significant changes in risk management policies since December 31, 2022[29]. - The group maintains sufficient cash and bank balances to mitigate liquidity risk, with no significant liquidity risk identified[30]. - The audit committee has reviewed the effectiveness of the group's risk management and internal control systems, deeming them effective[113]. Corporate Governance - The board of directors consists of two executive directors and three independent non-executive directors[123]. - The chairman also serves as the CEO, which deviates from the code provision C.2.1, but the board believes this structure benefits the company's operations[125]. - The company will review its board structure and composition periodically to maintain high standards of corporate governance[125]. Future Outlook - The group is expanding its global production capacity with new facilities in Mexico expected to commence operations in Q4 2023[91]. - The group plans to enhance its strategic partnerships through equity investments in promising companies within the new energy sector[88]. - The group anticipates significant growth in portable energy product orders, with new energy business expected to become a major segment[94]. - The group plans to invest more resources in developing new energy businesses while cautiously allocating resources to consumer electronics[92].

Financial Performance - The company's net profit attributable to shareholders for the year was HKD 296.9 million, a decrease of 21.6% compared to HKD 378.6 million in the previous year[11]. - The basic and diluted earnings per share were HKD 0.293, down 22.5% from HKD 0.378 in the previous year[11]. - The group's revenue for the year ended December 31, 2022, decreased by 13.9% to HKD 5,481.4 million, down from HKD 6,362.7 million for the year ended December 31, 2021[51]. - The group's profit before tax for the year was HKD 351.8 million, with profit attributable to the company's owners declining by 21.6% to HKD 296.9 million compared to the same period in 2021[43]. - The comprehensive income attributable to owners decreased by 62.7% to HKD 154.9 million, impacted by currency translation losses of HKD 143.2 million due to RMB depreciation[163]. - Operating profit decreased by 21.1% to HKD 364,271 from HKD 461,487 in the previous year[169]. - Gross profit for the group was HKD 915.8 million, a decrease of 13.6% compared to the previous year[186]. Revenue Breakdown - The consumer power division, primarily serving mobile phone customers, recorded revenue of HKD 3,153.0 million, a decline of 18.8%, accounting for 57.5% of total revenue[136]. - The industrial power division's revenue was HKD 2,328.4 million, down 6.2%, representing 42.5% of total revenue, with a gross profit of approximately HKD 524.2 million[136]. - The "Other" segment saw a revenue increase of 131.7%, primarily due to increased orders from new energy business clients[183]. - The industrial smart chargers and controllers segment generated revenue of HKD 2,328,400, accounting for 42.5% of total revenue[154]. Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.033 per share, down from HKD 0.056 per share in the previous year, resulting in a total annual dividend of HKD 0.061 per share[16]. Asset and Liability Management - The company's current assets increased to HKD 438.0 million from HKD 346.9 million in the previous year, with a current ratio of 1.21, up from 1.14[34]. - The debt-to-equity ratio improved to 32.0% from 44.2% in the previous year, primarily due to a reduction in average borrowings[34]. - The asset-liability ratio improved to 32.0%, a decrease of 27.6% from the previous year[142]. - The current ratio increased to 1.21, reflecting a 6.1% improvement[142]. Market and Business Strategy - The company is exploring the feasibility of establishing a production base in Mexico to enhance its global production layout[21]. - The group is actively expanding its customer base in the automotive electronics sector and developing a range of automotive electronic products, enhancing its overall business resilience[46]. - The group plans to increase production capacity for its charging module products, including a new 40KW charging module production line, to capture a larger market share in the electric vehicle charging sector[48]. - The group has engaged in strategic cooperation with a leading mid-to-high power charging module customer to jointly develop charging pile modules, aiming to strengthen competitive advantages[41]. - The company plans to focus on high-power charging technology, including charging pile modules and portable energy storage systems, for future research and development[40]. - The company has restructured its supply chain management to enhance efficiency using big data technology, focusing on three core new energy product strategies: charging modules, energy storage, and automotive electronics[135]. Operational Efficiency - Cash generated from operating activities increased to HKD 595.9 million for the year ended December 31, 2022, up from HKD 245.2 million in 2021, mainly due to a reduction in trade receivables and inventory[88]. - The average inventory turnover period increased to 82 days, up 9.3% from the previous year[142]. - Sales and marketing expenses decreased by 11.7% to HKD 194.3 million from HKD 220.2 million in the previous year[188]. - The group has implemented cost-reduction measures and aims to standardize and localize materials to mitigate raw material price fluctuations[172]. Research and Development - The group has established three core new energy product strategies focusing on charging modules, energy storage, and automotive electronics, enhancing R&D capabilities and production capacity[148]. - The group's R&D department is led by a general manager with approximately 20 years of development and management experience in the power supply industry[118]. - The group plans to focus on high-power charging technology and portable energy systems in future R&D investments[151]. Governance and Risk Management - The board has established a corporate governance framework and policies to enhance the board's ability to implement governance and appropriately supervise the company's business conduct[109]. - The group faces liquidity risks and potential liabilities, which are monitored as part of its risk management strategy[94]. - The group has established a nomination committee and a remuneration committee to oversee board appointments and compensation matters[96]. - The management team is responsible for daily business management, with the board overseeing strategic decisions and performance to ensure effective operations and growth[116]. - The group has a diversified business model and emphasizes the importance of stakeholders at both the board and group levels[120]. Employment and Workforce - As of December 31, 2022, the group employed approximately 7,300 full-time employees, a decrease from about 8,000 in 2021[69].

Financial Performance - Revenue for the year ended December 31, 2022, decreased by 13.9% to HKD 5,481.4 million[2] - Gross profit for the same period decreased by 13.6% to HKD 915.8 million, maintaining a gross margin of 16.7%[2] - Profit before tax decreased by 23.0% to HKD 351.8 million for the year ended December 31, 2022[2] - Profit attributable to owners of the company decreased by 21.6% to HKD 296.9 million[2] - The company reported a basic and diluted earnings per share of HKD 0.293 for the year ended December 31, 2022, compared to HKD 0.378 in the previous year[3] - The company's basic earnings per share decreased by 22.4% to 29.3 HK cents in 2022 from 37.8 HK cents in 2021[104] - The group reported a pre-tax profit of HKD 456,977 thousand for the year ended December 31, 2022[46] - The company's gross profit before tax was HKD 351,778 in 2022, down from HKD 456,977 in 2021, indicating a decrease of approximately 23%[103] Dividends - The board proposed a final dividend of HKD 0.033 per share, subject to shareholder approval at the 2023 annual general meeting[2] - The company proposed a final dividend of HKD 3.3 per share for the year ending December 31, 2022, down from 5.6 HKD in 2021, resulting in a total annual dividend of 6.1 HKD per share with a payout ratio of 20.8%[126] - Cash dividends paid in 2022 totaled 47,940,000 HKD, compared to 112,051,000 HKD in 2021[106] - The anticipated final dividend payment will be mailed to shareholders on July 5, 2023[188] Assets and Liabilities - Total assets as of December 31, 2022, amounted to HKD 3,890.4 million, down from HKD 4,165.7 million in the previous year[5] - Current assets decreased to HKD 2,536.3 million from HKD 2,803.2 million year-on-year[5] - The total liabilities of Ten Pao Group Holdings Limited decreased from HKD 2,857,179 thousand in 2021 to HKD 2,477,312 thousand in 2022, representing a reduction of approximately 13.3%[22] - Non-current bank borrowings decreased from HKD 237,787 thousand in 2021 to HKD 202,884 thousand in 2022, a decline of about 14.7%[22] - Current liabilities, specifically trade and other payables, decreased from HKD 2,017,929 thousand in 2021 to HKD 1,743,631 thousand in 2022, a reduction of approximately 13.6%[22] - The total equity and liabilities of the group decreased from HKD 4,165,694 thousand in 2021 to HKD 3,890,424 thousand in 2022, reflecting a decrease of about 6.6%[22] - The company's total equity increased to HKD 172,730 by the end of 2022, up from HKD 135,793 at the end of 2021, reflecting a growth of about 27.2%[91] Expenses - Employee benefits expenses (excluding R&D expenses) decreased to HKD 573,126 from HKD 731,242, a decline of about 21.6%[47] - Total sales costs, selling expenses, and administrative expenses amounted to HKD 5,174,286, down from HKD 5,936,771, indicating a decrease of approximately 12.9%[47] - Sales costs decreased by 13.9%, aligning with a 13.9% reduction in revenue for the year ended December 31, 2022[195] - Administrative expenses slightly increased by 0.03% from HKD 414.2 million for the year ended December 31, 2021, to HKD 414.4 million for the year ended December 31, 2022[173] - Sales and marketing expenses decreased by 11.7% from HKD 220.2 million for the year ended December 31, 2021, to HKD 194.3 million for the year ended December 31, 2022[198] - The reduction in sales expenses was primarily due to decreased employee benefits paid to the sales team as revenues declined[198] Revenue Segments - The revenue from external customers for the year ended December 31, 2022, was HKD 6,362,670 thousand, compared to HKD 6,362,670 thousand in 2021, indicating stable performance[46] - The group recorded a gross profit of HKD 915.8 million, a decrease of 13.6% compared to the previous year[196] - Revenue from the Consumer Power segment, mainly from mobile phone customers, was HKD 3,153.0 million, a decrease of 18.8%, accounting for 57.5% of total revenue[151] - Revenue from the Industrial Power segment was HKD 2,328.4 million, a decrease of 6.2%, accounting for 42.5% of total revenue[151] - The "Other" segment experienced a revenue growth of 131.7%, primarily due to increased orders from new energy business customers[138] New Energy Business - The new energy business showed significant growth, with performance doubling during the year[118] - The company is focusing on high-power charging technology and related applications for future product development[119] - The company plans to continue developing its new energy business to become a leading provider of intelligent power solutions[123] - The new energy business segment reported significant revenue growth, with orders for production and delivery expected to double, indicating strong future growth potential[128] - The company is actively developing new energy products, focusing on charging modules, energy storage, and automotive electronics, to enhance its competitive advantage in the industry[128] - The company has established a production line in Sichuan for 30KW charging modules to meet the growing global market demand for electric vehicle charging solutions[128] - The demand for charging piles and modules is expected to continue to grow as the market for new energy vehicles expands[157] - The group aims to develop its new energy business as a key growth driver, investing more resources in R&D and market expansion[162] Strategic Initiatives - A strategic partnership was established with a leading high-power charging module customer to enhance collaboration and investment opportunities[121] - The company aims to strengthen its competitive advantage by restructuring supply chain management and utilizing big data technology[120] - The company plans to enhance its global production layout in response to customer demand and continue optimizing its revenue structure[132] - The company is exploring the feasibility of establishing a production base in Mexico to enhance its global production footprint[148] - The company has expanded its production capacity globally, with facilities in Guangdong, Sichuan, Hungary, and Vietnam to meet diverse regional customer needs[148] - The company aims to accelerate its operations in automotive power research and development, electronic manufacturing solutions, and digital production reforms to improve profit margins[134] - The company is focusing on automation and intelligent production management to reduce labor costs and improve product quality, while also implementing cost-reduction measures in its supply chain[134] Market Conditions - The group plans to enhance its production capacity for charging modules, including a new 40KW charging module production line, to capture market share in the new energy vehicle sector[162] - In 2022, China's new energy vehicle production reached 7.058 million units, and sales reached 6.887 million units, representing year-on-year growth of 96.9% and 93.4% respectively, maintaining the global leading position for eight consecutive years[157] - The group is actively upgrading its production capabilities in various locations, including Guangdong, Sichuan, Hungary, and Vietnam, to meet customer demand[160] - The company has implemented cost-reduction measures and improved efficiency through data analytics in its logistics system[152] - The company anticipates continued demand for portable energy storage solutions as outdoor activities increase post-pandemic[150] Foreign Exchange and Risks - The company faced foreign currency risk primarily due to its operations in China and export sales to overseas markets[180] - The group did not enter into any new forward foreign exchange contracts as of December 31, 2022[181] - Other income increased due to a net foreign exchange gain of HKD 12.5 million, compared to a net loss of HKD 27.9 million in the previous year[172]

Financial Performance - Revenue for the six months ended June 30, 2022, decreased by 9.6% to HKD 2,997.8 million compared to HKD 3,316.4 million in the same period of 2021[11]. - Operating profit fell by 34.5% to HKD 164.6 million, down from HKD 251.4 million year-on-year[11]. - Profit attributable to owners of the company decreased by 30.1% to HKD 133.0 million, compared to HKD 190.2 million in the previous year[11]. - Basic earnings per share dropped from HKD 0.19 to HKD 0.13[11]. - The gross profit margin decreased by 2.1 percentage points to 15.0% from 17.1%[11]. - The total profit before tax for the reporting period was HKD 160,055,000, reflecting the company's operational performance[167]. - The total tax expense for the six months ended June 30, 2022, was HKD 29,908, a decrease from HKD 57,877 in 2021[178]. - The company reported a significant foreign exchange loss of HKD 75,080, compared to a gain of HKD 16,097 in the previous year, impacting overall comprehensive income[95]. - The company reported a significant foreign exchange gain of HKD 8,280, compared to a loss of HKD (18,676) in the previous year[171]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.028 per share, down from HKD 0.057 in the previous year[17]. - The board has declared an interim dividend of HKD 0.028 per ordinary share for the six months ended June 30, 2022, down from HKD 0.057 per share in the previous year, indicating a decrease of approximately 50.9%[60]. - Major shareholders include Tongyue Holdings Limited with 33.79% and Tianying Investment Limited with 29.99% of ordinary shares as of June 30, 2022[77]. - The total number of ordinary shares held by the chairman amounts to 655,552,000, representing approximately 65.53% of the company's issued share capital[68]. - The interim dividend is expected to be paid on October 25, 2022, to shareholders listed on the register as of October 7, 2022[60]. Financial Position and Liquidity - The asset-liability ratio increased to 46.1% from 44.2%[12]. - The current ratio increased to 1.19 times as of June 30, 2022, from 1.14 times as of December 31, 2021, reflecting improved liquidity[38]. - The group has achieved a net current asset value of HKD 446.3 million as of June 30, 2022, compared to HKD 346.9 million as of December 31, 2021, indicating a strong financial position[38]. - The debt-to-equity ratio rose to 46.1% as of June 30, 2022, up from 44.2% as of December 31, 2021, due to additional bank financing utilized for customer credit[40]. - The company has not identified any significant liquidity risks, maintaining sufficient cash and bank balances to meet financial obligations[131]. Operational Developments - The company is focusing on expanding its presence in the new energy vehicle charging business, targeting both commercial and residential markets[18]. - The management team is actively responding to supply chain challenges and rising raw material prices by optimizing global capacity planning and enhancing production automation[14]. - The company has established a new energy research and development center in Sichuan, focusing on high-end charging equipment, with significant order volumes for its 30KW charging module[20]. - The industrial power segment reported revenue of HKD 1,412.7 million for the first half of 2022, an increase of 8.4% year-on-year, accounting for 47.1% of total revenue[26]. - The consumer power segment experienced a decline in revenue to HKD 1,585.1 million, down 21.2% year-on-year, due to smartphone sales slowdown and chip supply issues, representing 52.9% of total revenue[27]. - The company is actively developing higher power charging devices and automotive electronics, planning to increase production lines for 40KW charging modules[33]. - The company has received international recognition for its portable charging guns and energy storage boxes, collaborating with Shell to expand into the North American market[20]. - The company aims to enhance its supply chain management and production flexibility to mitigate risks and stabilize operations amid global uncertainties[24]. - The company is investing more resources in the new energy vehicle sector, anticipating continued high growth in demand driven by various market factors[31]. - The company plans to establish a North American offline sales network for its products, targeting partnerships with gas stations and major appliance retailers[33]. - The company is committed to smart manufacturing upgrades and expanding its global production layout, with facilities in Guangdong, Sichuan, Hungary, and Vietnam[30]. Employee and Governance Information - The total employee cost for the six months ended June 30, 2022, was HKD 493.6 million, compared to HKD 450.1 million for the same period last year, representing an increase of approximately 9.8%[54]. - As of June 30, 2022, the company had a total of 8,000 full-time employees, reflecting its commitment to attracting and retaining talent[54]. - The company has maintained compliance with the corporate governance code, except for the deviation regarding the roles of the chairman and CEO being held by the same individual[57]. - The board consists of three independent non-executive directors who oversee the audit committee, ensuring effective governance and risk management[65]. - The company has confirmed that it has sufficient public float, with at least 25% of its issued shares held by the public[66]. Accounting and Financial Reporting - The interim financial data includes a consolidated income statement and balance sheet as of June 30, 2022, prepared in accordance with Hong Kong Accounting Standards[90]. - The review of the interim financial data did not reveal any matters that would lead to a belief that the financial data was not prepared in accordance with the relevant accounting standards[91]. - The company’s interim financial data was approved for issuance on August 26, 2022, and has not been audited[121]. - The group maintained its accounting policies consistent with those used in the 2021 financial statements, with no significant impact from the adoption of new or revised standards[125][126]. - The company has not reported any changes in stock options during the six months ending June 30, 2022, due to no unexercised options at the beginning of the period[83]. Risks and Challenges - The group faces various financial risks, including market risk, credit risk, and liquidity risk, with no changes in risk management functions since December 31, 2021[130]. - The company’s financial risk management policies have remained unchanged since the last reporting period[130]. - The group has not adopted any new accounting standards that would have a significant impact on its financial performance in the current or foreseeable future[127].

Financial Performance - Total revenue for the year ended December 31, 2021, reached HKD 6,362.7 million, an increase of 41.8% compared to HKD 4,488.6 million in 2020[9] - Operating profit rose to HKD 461.5 million, reflecting a growth of 21.3% from HKD 380.4 million in the previous year[9] - Net profit attributable to shareholders increased by 31.0% to HKD 378.6 million, up from HKD 289.1 million in 2020[9] - Gross profit rose by about 28.2% year-on-year to HKD 1,060.3 million, with earnings per share recorded at HKD 0.378, compared to HKD 0.289 in 2020[19] - The gross profit margin decreased to 16.7%, down from 18.4% in the previous year, indicating pressure on profitability[9] - The total comprehensive income attributable to owners of the company increased by 13.9% to HKD 415.5 million, including a currency translation gain of HKD 41.1 million from the appreciation of the Renminbi[56] - Cash generated from operating activities decreased to HKD 245.2 million from HKD 552.4 million in 2020, primarily due to an increase in trade receivables and inventory[57] - Cash used in investing activities rose significantly to HKD 611.1 million from HKD 251.5 million in 2020, with HKD 316.5 million invested in a new factory in Huizhou, China[57] - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[79] - The company reported a significant increase in revenue, with a year-on-year growth of 15% for the fiscal year ending December 31, 2021[87] Revenue Segmentation - The consumer power segment saw a revenue increase of approximately 40.3% to HKD 3,881.6 million, driven by rising demand[13] - The consumer power segment generated revenue of approximately HKD 3,881.6 million, a year-on-year increase of 40.3%, accounting for 61.0% of total revenue[23] - The industrial power segment, including smart chargers and controllers, recorded revenue of HKD 2,481.1 million, a year-on-year increase of 44.1%, representing 39.0% of total revenue[23] - Sales of telecommunications equipment increased by 55.4% to HKD 2,463.6 million, driven by rising demand for high-end fast charging products from leading smartphone manufacturers in China[38] - Sales of smart chargers and controllers rose by 44.1% to HKD 2,481.1 million, primarily due to new orders from customers[38] Strategic Initiatives - The company is focusing on the new energy sector, with strategic partnerships and the launch of online and offline sales for new energy charging and storage products[13] - The group has intensified investment in the new energy business segment, launching online sales of portable energy storage boxes and electric vehicle chargers in the second half of 2021[24] - The company plans to continue investing in R&D to drive technological innovation and expand its product offerings[13] - The company plans to invest more in R&D for electronic product applications and actively engage in the new energy industry to capture market opportunities[29] - The company is expanding its commercial applications of charging stations to four-wheeled electric vehicles to capture market opportunities and diversify revenue sources[30] - The company is exploring potential acquisitions to enhance its market position and product offerings[200] Operational Efficiency - The average inventory turnover period improved to 75 days, down from 77 days in 2020, reflecting better inventory management[10] - The company completed the second phase expansion of the Dazhou plant in Sichuan and topped out the smart manufacturing industrial park in Huizhou, enhancing production efficiency[27] - The company expanded production capacity in Vietnam and Hungary, adding additional production lines to meet customer demand and mitigate geopolitical risks[27] - The smart manufacturing industrial park in Huizhou is expected to gradually commence operations in the coming year, contributing to increased production capacity and digital upgrades[32] - The group expanded its production network to enhance capacity and effectively respond to increasing customer demand, mitigating the impact of rising labor costs[22] Financial Stability and Risk Management - The asset-liability ratio increased to 44.2%, up from 30.9% in the previous year, indicating a significant rise in leverage[10] - The current ratio was 1.14 times, compared to 1.18 times in 2020, while the debt-to-equity ratio increased to 44.2% from 30.9% in 2020[57] - The company aims to enhance its risk resilience by focusing on raw material management and cost control amid complex market conditions[29] - Approximately 59.8% of the company's revenue and receivables were denominated in USD and HKD, exposing the company to foreign exchange risk against the RMB[62] - The company closely monitors its liquidity position to ensure sufficient cash and cash equivalents to meet operational needs[67] Corporate Governance - The board of directors expressed confidence in achieving long-term growth targets, with a commitment to sustainable practices and corporate responsibility initiatives[79] - The company has established risk management and internal control systems, which were deemed effective as of December 31, 2021[138] - The company has a policy for handling and disclosing inside information, ensuring confidentiality and proper reporting[139] - The board is committed to reviewing the effectiveness of the nomination policy as necessary[132] - The company has adopted a standard code for securities trading by directors, with all directors confirming compliance for the fiscal year ending December 31, 2021[107] Shareholder Engagement - The company has established a shareholder communication policy to ensure effective responses to shareholder concerns and feedback[147] - The company has a website (www.tenpao.com) as a communication platform for shareholders and investors, providing updates on business developments[142] - The company plans to hold its annual general meeting on June 23, 2022, to approve the proposed final dividend[160] Environmental and Social Responsibility - The company emphasizes compliance with environmental laws and promotes energy-saving and emission-reduction initiatives[157] - The group made charitable donations totaling HKD 1,029,000 for the year ended December 31, 2021, slightly down from HKD 1,050,000 in 2020[165]