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]

Financial Performance - Revenue for the six months ended June 30, 2021, increased by 88.0% to HKD 3,316.4 million compared to HKD 1,763.7 million in the same period last year[8]. - Operating profit rose by 110.0% to HKD 251.4 million, up from HKD 119.7 million year-on-year[8]. - Profit attributable to owners of the company increased by 100.0% to HKD 190.2 million, compared to HKD 95.1 million in the previous year[8]. - Basic earnings per share increased from HKD 0.10 to HKD 0.19[8]. - Gross profit for the same period was HKD 567,515 thousand, up 85.5% from HKD 306,103 thousand in 2020[83]. - Operating profit increased to HKD 251,394 thousand, representing a 109.0% rise compared to HKD 119,693 thousand in the previous year[83]. - Net profit attributable to the company’s owners was HKD 190,195 thousand, a significant increase from HKD 95,106 thousand in 2020, marking a 99.8% growth[83]. - Total tax expense for the six months ended June 30, 2021, was HKD 57,877,000, significantly higher than HKD 22,260,000 in the previous year[157]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.057 per share, up from HKD 0.030 per share in the previous year[14]. - The company declared an interim dividend of HKD 0.057 per share for the six months ended June 30, 2021, compared to HKD 0.030 per share in 2020, reflecting a 90% increase[49]. - The interim dividend declared was HKD 0.057 per share, totaling HKD 57,000,000, compared to HKD 30,000,000 in the previous year, representing a 90% increase[164]. Financial Position and Ratios - The asset-liability ratio increased to 35.3% from 30.9%, reflecting a 4.4 percentage point rise[9]. - As of June 30, 2021, the net current assets were HKD 462.8 million, an increase from HKD 425.0 million as of December 31, 2020[29]. - The current ratio remained stable at 1.18 times as of June 30, 2021, unchanged from December 31, 2020[29]. - The debt-to-equity ratio increased to 35.3% as of June 30, 2021, compared to 30.9% as of December 31, 2020, due to additional bank financing for business expansion[29]. - Total assets as of June 30, 2021, amounted to HKD 4,034,416 thousand, an increase from HKD 3,632,465 thousand at the end of 2020[90]. - Total equity increased to HKD 1,211,375 thousand from HKD 1,000,806 thousand at the end of 2020, reflecting a growth of 21.0%[90]. Cash Flow and Investments - Net cash used in operating activities for the six months ended June 30, 2021, was HKD 184.1 million, a significant increase from HKD 38.9 million for the same period in 2020, driven by an 88.0% increase in revenue[29]. - Net cash used in investing activities was HKD 244.0 million for the six months ended June 30, 2021, compared to HKD 128.0 million for the same period in 2020, primarily due to increased purchases of properties, plants, and equipment[31]. - Net cash generated from financing activities was HKD 119.2 million for the six months ended June 30, 2021, up from HKD 39.1 million for the same period in 2020[31]. - The company incurred capital expenditures of HKD 253,740,000, up from HKD 61,652,000 in the prior year, indicating increased investment in property, plant, and equipment[102]. Operational Efficiency - Average inventory turnover days improved by 11.7% to 68 days, down from 77 days[9]. - The management team implemented strategies to enhance operational flexibility and cash flow turnover, contributing to the overall profit increase[12]. - The company maintained stable gross margins despite challenges in the electronic manufacturing industry due to material shortages and international logistics issues[15]. - The group is advancing its smart manufacturing initiatives to enhance production efficiency and risk resilience, including the implementation of automated production lines and data management[26]. Market and Strategic Developments - The consumer power business segment recorded revenue of HKD 2,012.7 million, accounting for 60.7% of the group's total revenue, with a gross profit of approximately HKD 327.6 million and a gross profit margin of 16.3%[17]. - The group established strategic partnerships with major raw material suppliers to mitigate the impact of price fluctuations and has built a strategic reserve of raw materials[19]. - The second phase of the production expansion in Dazhou, Sichuan, has been completed, providing additional capacity to meet the rising demand for high-end fast charging products[20]. - The group has initiated production at its Vietnam facility in Q2 2021 and is expanding production lines to meet customer order demands and mitigate geopolitical risks[20]. - The group anticipates continued challenges from raw material price increases and supply shortages in the second half of 2021, but remains cautiously optimistic about domestic market demand for electronic consumer products[22]. - The establishment of a new energy division focuses on R&D and production of new energy products, with portable energy storage boxes and EV chargers set to launch online sales in North America[24]. - The group plans to expand production capacity in Vietnam and is exploring opportunities for further global capacity expansion in Southeast Asia, South Asia, and North America[26]. Risk Management - The company faced foreign exchange risk, with approximately 52.0% of revenue denominated in USD and HKD as of June 30, 2021, down from 69.7% for the same period in 2020[34]. - The group maintains sufficient cash and bank balances to prudently manage liquidity risk, with no significant liquidity risk identified[119]. - The financial risk management policies have not changed since December 31, 2020, indicating stability in risk management functions[117]. Corporate Governance - The company has maintained compliance with the standard code for securities trading, with no reported violations by employees regarding insider information as of June 30, 2021[47]. - The board believes that having the same person serve as both Chairman and CEO provides stable leadership and aligns with the company's best interests[46]. - The company plans to review its board structure and composition periodically to maintain high standards of corporate governance[46]. - The audit committee, composed of three independent non-executive directors, reviewed the unaudited interim financial statements for the six months ended June 30, 2021, and found the internal control systems effective[53].

Financial Performance - Total revenue for the year ended December 31, 2020, reached HKD 4,488.6 million, an increase of 23.4% compared to HKD 3,636.3 million in 2019[9] - Operating profit rose to HKD 380.4 million, reflecting a significant increase of 69.4% from HKD 224.6 million in the previous year[9] - Profit attributable to owners of the company increased by 63.5% to HKD 289.1 million, up from HKD 176.8 million in 2019[9] - The gross profit margin improved to 18.4%, up from 17.4% in 2019, marking a 5.7% increase[9] - Gross profit rose by 30.7% year-on-year to approximately HKD 827.3 million, with a gross margin increase of 1.0 percentage points to 18.4%[23] - Profit before tax was approximately HKD 373.8 million, a 72.3% increase compared to HKD 216.9 million in the same period of 2019[23] - Total comprehensive income attributable to owners increased by 125.7% from HKD 161.6 million for the year ended December 31, 2019, to HKD 364.7 million for the year ended December 31, 2020[60] - The company reported a net profit of HKD 200 million, a 10% increase year-over-year, indicating strong operational performance[90] Revenue Segments - The company reported a notable growth in the consumer power business segment, with revenue increasing approximately 21.5% to HKD 2,767.0 million[13] - The smart charger and controller segment for power tools also saw significant growth, with revenue reaching HKD 1,721.6 million, a 26.7% increase from the previous year[13] - Revenue from telecommunications power supplies rose by 38.9% to HKD 1,585.6 million, primarily due to increased demand from two of China's top five smartphone manufacturers for high-end fast charging products[42] - Revenue from industrial smart chargers and controllers increased by 26.7% to HKD 1,721.6 million, driven by new customer orders[42] - The consumer power business segment achieved a revenue increase from approximately HKD 2,277.7 million in 2019 to HKD 2,767.0 million in 2020, representing a year-on-year growth of 21.5% and contributing 61.6% to total revenue[27] - The electric tools smart chargers and controllers segment saw revenue rise by 26.7% to HKD 1,721.6 million, accounting for 38.4% of total revenue, with a gross profit increase of 43.6% to HKD 376.5 million and a gross margin of 21.9%[28] Operational Developments - The company established a new energy division to explore sectors such as automotive electronics and green mobility, investing in the development of new energy charging equipment and portable energy storage products[17] - The company completed the third phase of expansion in Hungary and the second phase of expansion in Dazhou, Sichuan, which began production during the year[17] - The company is actively advancing its production management digitalization and automation upgrade plan, with a new digital smart factory in Huizhou expected to be operational in 2022[19] - The company is focusing on expanding its global production network to mitigate geopolitical risks and is exploring opportunities in Southeast Asia, South Asia, and North America[35] - The new factory in Huizhou is expected to be completed and operational by 2022, serving as a pilot for the company's smart and digital upgrade initiatives[37] Financial Position - The asset-liability ratio increased to 30.9%, up from 23.3% in 2019, representing a 32.6% rise[10] - The current ratio slightly improved to 1.18 from 1.17 in 2019, indicating a 0.9% increase[10] - As of December 31, 2020, net current assets were HKD 425.0 million, up from HKD 229.0 million as of December 31, 2019, with a current ratio of 1.18[61] - Cash generated from operating activities increased to HKD 599.8 million for the year ended December 31, 2020, from HKD 249.8 million for the year ended December 31, 2019[61] - Total borrowings increased to HKD 309.3 million as of December 31, 2020, from HKD 161.8 million as of December 31, 2019, primarily to fund business expansion[67] Governance and Management - The board consists of five directors, including two executive directors and three independent non-executive directors, ensuring a balanced governance structure[75] - The company has established a strong governance framework with various committees, including audit, remuneration, and nomination committees, to oversee management effectively[81][84] - The company emphasizes human resources as a key asset and invests in employee training and competitive compensation packages to attract and retain talent[73] - The board has conducted training for directors to keep them updated on regulatory developments and market changes[109] - The company has adopted a board diversity policy, evaluating board composition from various perspectives, including gender, age, and professional experience[129] Shareholder Relations - The company emphasizes effective communication with shareholders to enhance investor relations and understanding of business performance and strategies[139] - The company has established a shareholder communication policy that is regularly reviewed to ensure effectiveness[146] - The board proposed a final dividend of HKD 0.055 per share, up from HKD 0.028 per share in 2019, resulting in a total dividend of HKD 0.085 per share for the year[24] Market Outlook - The company maintains an optimistic outlook on the smartphone market, strategically positioning its factories close to major clients to enhance geographical and logistical advantages[14] - The company provided a positive outlook for 2021, projecting a revenue growth of 10% to 12% driven by new product launches and market expansion strategies[90] - The company plans to leverage advancements in 5G technology to explore new market opportunities and applications in various commercial fields[34] Challenges and Risks - The company anticipates potential price increases for products in 2021 due to rising raw material prices driven by market demand[30] - The company has implemented a mature supplier bidding system and localized raw materials strategy to stabilize supply and control prices amid fluctuating raw material costs[30] - The company is enhancing automation in production lines to reduce labor costs and improve production efficiency, which has become increasingly important due to the pandemic[30]

Financial Performance - Revenue for the six months ended June 30, 2020, was HKD 1,763.7 million, a decrease of 3.9% compared to HKD 1,834.7 million in the same period last year[10]. - Operating profit increased by 11.7% to HKD 119.7 million, up from HKD 107.2 million year-on-year[10]. - Profit attributable to owners of the company rose by 17.3% to HKD 95.1 million, compared to HKD 81.1 million in the previous year[10]. - Gross profit margin improved by 0.7 percentage points to 17.4% from 16.6% in the prior year[10]. - The company reported a total comprehensive income of HKD 76,337,000 for the six months ended June 30, 2020, compared to HKD 81,093,000 in the same period of 2019, showing a slight decrease[107]. - The company reported a profit attributable to owners of HKD 95,106,000, up from HKD 81,093,000 in the previous year[175]. - Basic earnings per share increased to HKD 10 from HKD 8 year-on-year[175]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.03 per share, up from HKD 0.025 per share in the previous year[17]. - The board of directors has declared an interim dividend of HKD 0.03 per share for the six months ended June 30, 2020, compared to HKD 0.025 per share in 2019, indicating a 20% increase[54]. - The interim dividend is expected to be paid on October 27, 2020, to shareholders listed on the register as of October 9, 2020[54]. - Major shareholders include Choi Yuen Holdings Limited with 338,012,000 shares (33.79%) and Tian Ying Investment Limited with 300,000,000 shares (29.99%) as of June 30, 2020[71]. Operational Efficiency and Strategy - The company maintained stable operational performance despite challenges from the COVID-19 pandemic and geopolitical tensions[13]. - The company focused on enhancing production automation and optimizing customer portfolio to improve operational efficiency[14]. - The group plans to invest more resources in R&D for fast charging technology to meet the rising demand for higher power and faster charging solutions[28]. - The company plans to increase the proportion of automated production lines to enhance production efficiency and overall profitability[29]. - The company is focusing on improving inventory management and reducing impairment provisions to enhance financial performance in the upcoming quarters[199][200]. - Future strategies include market expansion and potential new product development to drive revenue growth[199][200]. Assets and Liabilities - The asset-liability ratio increased to 39.5%, up by 16.2 percentage points from 23.3% at the end of December 2019[11]. - As of June 30, 2020, the net current assets amounted to HKD 263.2 million, an increase from HKD 229.0 million as of December 31, 2019[32]. - The current ratio as of June 30, 2020, was 1.18, slightly up from 1.17 as of December 31, 2019[32]. - The debt-to-equity ratio increased to 39.5% as of June 30, 2020, compared to 23.3% as of December 31, 2019[32]. - Total assets as of June 30, 2020, amounted to HKD 2,440,109, an increase from HKD 2,214,385 at the end of 2019, reflecting a growth of about 10.2%[94]. - Current liabilities increased to HKD 1,481,601 from HKD 1,385,336, indicating a rise of approximately 6.9%[99]. Cash Flow and Investments - Cash generated from operating activities for the six months ended June 30, 2020, was HKD 38.9 million, compared to HKD 14.6 million for the same period in 2019[32]. - The net cash used in investing activities was HKD 128.0 million for the six months ended June 30, 2020, compared to HKD 44.6 million for the same period in 2019[34]. - The company incurred a net cash outflow from investing activities of HKD 127,954,000 in the first half of 2020, compared to HKD 44,558,000 in the same period of 2019, reflecting increased investment in property, plant, and equipment[111]. - The financing activities generated a net cash inflow of HKD 39,050,000 for the first half of 2020, up from HKD 22,545,000 in the previous year, indicating stronger financing activities[114]. Market and Segment Performance - For the six months ended June 30, 2020, the revenue from the electric tools smart chargers and controllers segment was approximately HKD 710.0 million, a decrease of 5.2% compared to the same period last year[18]. - The consumer power supply business segment's revenue decreased by 3.0% year-on-year, primarily due to a decline in sales from the lighting equipment segment, although growth in the telecommunications and media segments mitigated the overall decline[20]. - The group maintained a stable net profit of HKD 143.0 million in the electric tools smart chargers and controllers segment, supported by strong relationships with core customers and flexible marketing strategies[18]. - The group anticipates a significant increase in global demand for 5G smartphones, projected to rise 12 times in 2020, driving the need for power supply products[25]. - The group experienced a significant impact from COVID-19, leading to delayed orders in the first quarter, with a gradual recovery in the second quarter[157]. - The group’s revenue from the smart charger and controller segment was HKD 710,015,000, contributing to a segment profit of HKD 142,972,000[161]. Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code, except for the provision that the roles of chairman and CEO should be separate, which is currently held by the same individual[51]. - The company has confirmed that it has sufficient public float, with at least 25% of its issued shares held by the public as required by the listing rules[61]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial statements for the six months ended June 30, 2020, and found the internal control systems effective[60]. - The company has not reported any incidents of employees violating the securities trading standards during the six months ended June 30, 2020[52]. Employee and Compensation - The company employed approximately 6,400 full-time employees as of June 30, 2020, with total employee costs amounting to HKD 290.0 million, a slight decrease from HKD 291.2 million in the same period last year[47]. - The company is committed to providing competitive compensation and various incentives to attract and retain talented employees[47]. Financial Instruments and Fair Value - The fair value hierarchy includes Level 1 (active market quotes), Level 2 (observable inputs), and Level 3 (unobservable inputs) for financial instruments[128]. - The fair value of derivative financial instruments as of June 30, 2020, is 2,887 thousand HKD[131]. - The group has not made any transfers between Level 2 and Level 3 fair value hierarchy classifications during the period[140]. - The group continues to evaluate the impact of newly adopted accounting standards on its performance and financial position[122].

Financial Performance - Revenue for the year ended December 31, 2019, increased by 13.5% to HKD 3,636.3 million compared to HKD 3,202.5 million in 2018[8] - Operating profit surged by 194.5% to HKD 224.6 million, up from HKD 76.3 million in the previous year[8] - Profit attributable to owners of the company rose by 219.0% to HKD 176.8 million, compared to HKD 55.4 million in 2018[8] - Gross profit margin improved to 17.4%, an increase of 27.3% from 13.7% in 2018[8] - Gross profit rose by 44.6% to HKD 633.2 million, with a gross margin improvement of 3.7 percentage points to 17.4%[18] - The company recorded a comprehensive income attributable to owners of HKD 161.6 million for the year, a 692.2% increase from HKD 20.4 million in 2018[51] - The company reported a net profit margin of 12% for the fiscal year, reflecting improved operational efficiency[87] Revenue Segments - The company maintained a strong performance in the smart charger and controller segment, with revenue reaching HKD 1,358.6 million, a growth of 28.4%[11] - The consumer switch power supply segment saw revenue increase by 6.2% to HKD 2,277.7 million[11] - The electric tools smart charger and controller segment recorded revenue of HKD 1,358.6 million, up 28.4%, accounting for 37.4% of total revenue[22] - The consumer power supply segment's revenue increased by 6.2% to HKD 2,277.7 million, representing 62.6% of total revenue, with a gross profit of HKD 371.1 million and a gross margin of 16.3%[23] - Lighting equipment products generated revenue of HKD 460.1 million, accounting for 12.6% of total revenue, with a gross margin of 20.7%[24] Future Outlook and Strategy - The company is optimistic about the future development of the smartphone market, particularly with the rise of 5G technology[12] - The company plans to enhance R&D resources to strengthen technology research and expand market share, particularly in the context of 5G technology applications[23] - The company aims to develop diversified product offerings and enhance production technology in response to the growing demand for high-quality portable fast-charging products[28] - The company is focusing on the potential of the 5G smartphone market, expecting an increase in adoption rates in the second half of 2020, which will create a favorable business environment[28] - The company plans to continue investing in automation and smart production to improve production efficiency and reduce labor cost impacts[26] Capital and Investments - Capital expenditures for property, plant, and equipment amounted to HKD 170.2 million in 2019, compared to HKD 125.2 million in 2018[53] - The company is actively exploring factory opportunities in regions outside of China, such as India, to enhance production efficiency and capacity[30] - The group aims to optimize existing production facilities and explore opportunities for new factories outside of China, particularly in Asia[18] Debt and Financial Management - The asset-liability ratio decreased by 34.6% to 23.3% from 35.6% in 2018[9] - As of December 31, 2019, total bank borrowings amounted to HKD 161.8 million, down from HKD 207.6 million in 2018, indicating a reduction in debt levels[59] - The total debt due within one year decreased to HKD 120.2 million in 2019 from HKD 147.9 million in 2018, showing improved short-term liquidity[57] - Net financial expenses decreased by 8.3% to HKD 7.7 million in 2019, attributed to a reduction in average bank borrowings[48] Corporate Governance - The board of directors has implemented new governance policies to enhance transparency and accountability, aligning with the latest regulatory standards[90] - The company has ensured that all independent non-executive directors have confirmed their independence in accordance with listing rules[99] - The company’s governance practices include regular reviews of compliance with legal and regulatory requirements, enhancing overall corporate governance[110] - The Audit Committee held three meetings during the year ending December 31, 2019, reviewing the annual financial statements and interim financial reports[113] Employee and Management - The group employed around 6,500 full-time employees as of December 31, 2019, consistent with the previous year, emphasizing stability in human resources[64] - The company plans to continue investing in employee training and development to enhance workforce capabilities and retention[64] - Yang Bingbing has approximately 23 years of design and manufacturing experience in the power supply industry, having joined the group in 2005[72] Shareholder and Dividend Information - The board proposed a final dividend of HKD 0.028 per share, bringing the total dividend for the year to HKD 0.053 per share, with a payout ratio of 30.0%[19] - The company has a policy for dividend distribution but does not have a preset dividend payout ratio, allowing the board to propose dividends based on financial conditions[137] - The company's distributable reserves as of December 31, 2019, were approximately HKD 319,468,000, down from HKD 368,959,000 in 2018[149] Risk Management - The company has established a risk management and internal control system, which was deemed effective and sufficient by the board for the year ended December 31, 2019[129] - The group has implemented policies to ensure credit is only extended to customers with good credit records, mitigating credit risk exposure[61] - There were no significant contingent liabilities as of December 31, 2019, indicating a low risk profile in this area[63]