Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 1,213,830,000, a significant increase of 253% compared to HKD 343,541,000 in 2022[2] - Gross profit for the same period was HKD 93,017,000, up from HKD 83,480,000, reflecting a gross margin improvement[2] - The net loss for the year was HKD 85,709,000, compared to a net loss of HKD 98,904,000 in the previous year, indicating a reduction in losses[2] - The company reported a basic and diluted loss per share of HKD 6.74, compared to HKD 7.50 in the previous year[2] - The group reported a net loss of HKD 85,709,000 for the year ending December 31, 2023, compared to a net loss of HKD 98,904,000 in 2022[7] - The group recorded a loss attributable to owners of approximately HKD 88,035,000, a decrease of about 10.23% from a loss of HKD 98,063,000 in 2022[46] Assets and Liabilities - The company's total assets decreased to HKD 172,553,000 from HKD 197,297,000 year-over-year[4] - Non-current assets totaled HKD 306,149,000, down from HKD 331,107,000, primarily due to a decrease in property, plant, and equipment[4] - Current liabilities increased to HKD 526,633,000 from HKD 444,220,000, with trade payables and other payables contributing significantly to this rise[4] - The company's equity attributable to owners decreased to HKD 74,432,000 from HKD 137,463,000, reflecting a decline in reserves[5] - As of the reporting date, the group's current liabilities amounted to HKD 133,596,000, slightly down from HKD 133,810,000 in 2022[7] - Total current assets were approximately HKD 444,110,000, while total current liabilities were about HKD 578,459,000, reflecting tight liquidity conditions[52] Revenue Segments - Online marketing solutions service generated revenue of HKD 912,058,000 in 2023, with no revenue reported in 2022[15] - The segment performance for online marketing solutions showed a profit of HKD 6,512,000, while the overall pre-tax loss for the company was HKD 84,601,000 in 2023[17] - Digital marketing business generated revenue of approximately HKD 912,058,000, accounting for about 75.14% of total revenue, compared to zero in 2022[42] - Retail business revenue reached approximately HKD 75,674,000, representing about 6.23% of total revenue, up from HKD 35,413,000 in 2022[42] Cost Management - Cost control measures will continue to be implemented, including reducing unnecessary expenses and administrative costs[7] - The cost of goods sold for the year was HKD 226,099,000, down from HKD 260,061,000 in 2022, indicating a reduction in direct costs[20] - The company incurred total employee costs of HKD 108,181,000 in 2023, a decrease from HKD 123,806,000 in 2022[20] - Selling and distribution expenses were approximately HKD 35,839,000, a rise of about 55.3% from HKD 23,078,000 in 2022[45] - Administrative expenses increased by approximately 7.49% to HKD 149,279,000 from HKD 138,877,000 in 2022[45] Strategic Plans - The company plans to focus on market expansion and new product development to improve future performance[1] - The company is focusing on expanding its high-quality silicone product range and enhancing new silicone technology applications for product upgrades[29] - The company aims to provide precise digital marketing services and solutions to more businesses in response to online consumer spending trends[29] - The group plans to explore various strategies to improve operational cash flow, including enhancing collection efforts on trade receivables[7] - The group plans to enter the new energy industry in 2024, focusing on new energy vehicle and battery rental, maintenance, and recycling services[40][41] Financing and Liquidity - The group has approximately HKD 190,000,000 in undrawn credit facilities to meet operational cash flow needs over the next 18 months[7] - The group obtained loans totaling approximately HKD 12,960,000 after the reporting period, with interest rates ranging from 3.50% to 5.65%[7] - The company is considering various financing measures to improve its liquidity and financial position[28] - The company issued convertible bonds with a principal amount of HKD 40,000,000, with net proceeds intended for business development and general working capital[60] Market Conditions and Risks - The group faces significant business risks due to market price fluctuations and competition in the silicone rubber sector[50] - Digital marketing operations are heavily reliant on internet marketing and are subject to regulatory impacts, which could affect revenue stability[50] - China's GDP growth rate for 2023 is reported at 5.3%, with expectations of a slowdown to 4.7% in 2024 due to various economic pressures[35] Corporate Governance - The audit committee has reviewed the annual performance for the year ending December 31, 2023, and believes that the consolidated financial statements have been prepared in accordance with applicable accounting standards[66] - The independent auditor has confirmed that the financial figures in the performance announcement align with the consolidated financial statements as of December 31, 2023[67] - The annual report for the year ending December 31, 2023, will be sent to shareholders and published on the stock exchange and the company's website[68] Employee and Operational Metrics - The company employed 717 long-term and temporary employees as of December 31, 2023, down from 853 in 2022[59] - As of December 31, 2023, the total salary and related costs amounted to approximately HKD 115,900,000, a decrease from approximately HKD 123,800,000 in 2022[59]

Investment Rating - The report assigns a strong investment rating to the company, indicating a positive outlook for future growth and profitability. Core Insights - The company is a leading player in the packaged drinking water sector, with a significant market share and a robust product matrix. The flagship brand "Yibao" achieved retail sales of 39.5 billion yuan in 2023, holding a 32.7% market share in China's packaged drinking water segment [18][35][94]. - The global packaged drinking water market is experiencing rapid growth, with a projected compound annual growth rate (CAGR) of 4.5% from 2018 to 2023 and 7.0% from 2023 to 2028. This growth is driven by increasing consumer health awareness and a shift towards bottled water consumption [1][58][63]. - The company has expanded its production capacity significantly, with self-owned production facilities increasing from 544.34 million tons in 2021 to 674.89 million tons in 2023, and plans to further enhance capacity to 1,525 million tons [20][184]. Summary by Sections Global Market Overview - The global packaged drinking water retail sales are expected to grow from $234.9 billion in 2018 to $410.9 billion by 2028, with the market share increasing from 26.9% to 29.7% within the soft drink sector [63][64]. - The average price per liter of packaged drinking water is projected to rise from $0.71 in 2018 to $0.87 by 2028, reflecting a trend of premiumization in the market [10][65]. Company Positioning - The company has established a multi-brand strategy with 13 brands and 56 product SKUs, including "Yibao," "Zhiben Qingrun," and "Honey Water Series," catering to diverse consumer preferences [18][121]. - The company is focusing on expanding its presence in high-quality water source areas, such as Changbai Mountain and Wuyi Mountain, to support its product matrix and enhance pricing power [20][184]. Financial Performance - The company's revenue from packaged drinking water accounts for over 90% of total revenue, with a notable growth in the mid-to-large size bottled water segment, which has outpaced overall company growth [37][44]. - The net profit for 2023 reached 1.33 billion yuan, with a net profit margin of 9.9%, indicating strong financial health and operational efficiency [50][60]. Market Dynamics - The penetration rate of packaged drinking water in China remains low compared to developed countries, suggesting significant growth potential. The market size is expected to increase from 215 billion yuan in 2023 to 314.3 billion yuan by 2028, with a CAGR of 7.9% [75][198]. - The competitive landscape is concentrated, with the top two players, Nongfu Spring and the company, holding a combined market share of over 40% in the packaged drinking water market [93][94].

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 518,673,000, a significant increase of 173% compared to HKD 189,816,000 in the same period of 2022[9] - Gross profit for the same period was HKD 80,683,000, representing a 100% increase from HKD 40,132,000 year-on-year[9] - The company reported a net loss of HKD 3,102,000 for the six months ended June 30, 2023, an improvement from a loss of HKD 43,102,000 in the previous year[11] - The total comprehensive income for the period was a loss of HKD 13,378,000, which includes a loss of HKD 20,922,000 for the period[28] - The company reported a loss of HKD 20,922,000 for the period, compared to a loss of HKD 43,065,000 in the previous period[28] - The group reported a pre-tax profit of HKD 7,321,000 for the six months ended June 30, 2023, compared to a pre-tax loss of HKD 42,968,000 in the same period of 2022[40] - The group recorded a loss attributable to owners of approximately HKD 20.9 million, a decrease of about 51.5% from HKD 43.1 million in 2022[88] Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 571,130,000, up from HKD 310,410,000 at the end of 2022, indicating a growth of 84%[14] - Current liabilities increased to HKD 664,771,000 from HKD 444,220,000, reflecting a rise of 49%[14] - The company’s total liabilities increased to HKD 934,457,000 as of June 30, 2023, compared to HKD 913,535,000 at the beginning of the year[28] - The group’s total liabilities increased to HKD 729,351,000 as of June 30, 2023, compared to HKD 505,137,000 as of December 31, 2022[42] - The company’s total liabilities increased to HKD 476,117,000 as of June 30, 2023, compared to HKD 221,289,000 at the end of 2022, indicating a significant rise[54] Cash Flow - For the six months ended June 30, 2023, the company reported a net cash inflow from operating activities of HKD 10,844,000, compared to a net outflow of HKD 67,599,000 in the same period of 2022[28] - The company achieved a net cash inflow from investing activities of HKD 33,978,000, an increase from HKD 7,396,000 in the previous year[28] - Cash and cash equivalents increased to HKD 51.4 million from HKD 24.0 million at the end of 2022[90] Business Segments - The sales of silicone and related products amounted to HKD 106,866,000, while international digital marketing generated HKD 381,827,000 in revenue for the same period[40] - The healthcare and hotel services segment generated revenue of HKD 50,000, compared to HKD 24,000 in the previous year, indicating growth in this area[37] - Silicone business generated sales revenue of approximately HKD 106,866,000, down from HKD 176,176,000 in the previous year, reflecting a slight decline despite being a key revenue source[67] - Retail business achieved sales revenue of approximately HKD 29,930,000, up from HKD 13,616,000 in the previous year, with five physical stores opened in London[68] - Digital marketing business recorded sales revenue of approximately HKD 381,827,000, a significant increase from zero in the previous year, following the acquisition of a stake in Beijing Jusheng Technology Co., Ltd.[72] Operational Strategies - Future outlook remains cautiously optimistic with plans for market expansion and potential acquisitions to drive growth[10] - The company aims to improve operational efficiency and reduce costs in the upcoming quarters[10] - The group plans to increase brand advertising investment and upgrade retail store decor to enhance brand image and customer loyalty, despite initial cost increases[69] - The group is focusing on the development of new eco-friendly silicone materials, which are expected to be widely accepted as alternatives to traditional materials[67] - Management believes that the digital marketing sector will continue to see increasing customer demand and significant growth potential[72] - The group is preparing to adjust its operational strategies in response to potential risks from high inflation and exchange rate fluctuations[74] Equity and Shareholder Information - The company’s equity attributable to owners decreased to HKD 124,086,000 from HKD 137,463,000, a decline of 10%[16] - The company has not declared an interim dividend for the six months ended June 30, 2023, consistent with the previous year[51] - The total issued shares of the company as of June 30, 2023, is 1,306,767,000 shares[115] - The company issued a total of 1,306,767,000 shares with a par value of HKD 0.1 each during the first half of 2023, maintaining a total share capital of HKD 2 billion[96] Compliance and Governance - The audit committee, consisting of independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2023[122] - The company has made adequate disclosures in accordance with applicable accounting standards and listing rules[122] - The group has not established any financial instruments for hedging purposes as of June 30, 2023, and will monitor currency trends closely[104]

香港交易及結算所有限公司以及香港聯合交易所有限公司對本公告之內容概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 會 就 因 本 公告全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承擔任 何 責 任。 TA YANG GROUP HOLDINGS LIMITED 大洋集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1991） 截至二零二三年六月三十日止六個月之中期業績公告 大 洋 集 團 控 股 有 限 公 司（「本公司」）董 事（「董 事」）會（「董事會」）公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本集團」）截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 的 未 經 審 核 簡 明 綜 合 中 期 業 績 及 財 務 狀 況，連 同 上 一 年 同 期 的 比 較 數 字 如 下。 簡明綜合損益表 | --- | --- | |-------|-----------------| | | 二零二二年 | | 附 註 | 千港元 | | | （未 經 審 核） | 收 益 3 518,673 18 ...

Financial Performance - For the year ended December 31, 2022, the Group recorded revenue of approximately HK$343,541,000, a decrease of approximately 5.24% compared to HK$362,528,000 in 2021[16]. - The Group reported a loss for the year of approximately HK$98,904,000, representing an increase of approximately 15.32% from the loss of HK$85,768,000 in 2021[16]. - Loss per share was approximately HK$7.50 cents, a slight decrease of approximately 0.27% compared to HK$7.52 cents in 2021[16]. - Gross profit for the year ended December 31, 2022, was approximately HK$83,480,000, an increase of approximately 9.44% from HK$76,281,000 in 2021, with a gross profit margin of approximately 24.30%[81]. - Other income and net gain decreased by approximately 49.83% to approximately HK$31,658,000 in 2022, down from approximately HK$63,102,000 in 2021[82]. - Selling and distribution expenses increased by approximately 4.31% to approximately HK$23,078,000 in 2022, while administrative expenses decreased by approximately 11.56% to approximately HK$138,877,000[83]. - The Group recorded a loss attributable to owners of approximately HK$98,063,000 for the year ended December 31, 2022, representing an increase of approximately 15.50% compared to a loss of approximately HK$84,901,000 in 2021[84]. - Cash and cash equivalents decreased to approximately HK$24,005,000 in 2022 from HK$59,579,000 in 2021, with a current ratio of 0.7 compared to 1.2 in 2021[91]. - The Group's liquidity improved compared to the corresponding period in 2021, primarily due to cash generated from operating and financing activities[89]. - As of December 31, 2022, the Group recorded total current assets of approximately HK$310,400,000 and total current liabilities of approximately HK$444,200,000, indicating a tight liquidity position[98]. Business Segments - The Silicone Business remains the main profit source for the Group, focusing on product extension and upgrading to meet market demand[20]. - The Healthcare and Hotel Business is underperforming due to a harsh business environment and insufficient resources, with no short-term recovery expected[21]. - The Retail Business is developing well, with plans to explore new business types and open new stores to expand revenue scale, particularly in the UK market[22]. - The Group's Silicone Business, Healthcare and Hotel Business, and Retail Business are key segments contributing to overall performance[50]. - The Silicone Business contributed approximately HK$308,101,000 to the total revenue, accounting for approximately 89.68% of the Group's total revenue, down from 99.64% in 2021[76]. - The Retail Business achieved a revenue of approximately HK$35,413,000 for the year ended December 31, 2022, representing approximately 10.31% of total revenue, compared to nil in 2021[77]. - The Healthcare and Hotel Business recorded a revenue of approximately HK$27,000, accounting for approximately 0.01% of total revenue, down from approximately HK$1,294,000 (0.36%) in 2021[78]. Strategic Initiatives - The Group aims to enrich the types of silicone rubber products and establish a development strategy for promoting silicon technology[15]. - The Group plans to operate overseas retail business to increase the market influence of self-owned brands and expand steadily[15]. - The Group aims to optimize its existing business structure and seek new potential businesses to improve performance and maximize returns[23]. - The Group will strive to enter silicone-related industries with good development prospects through cost-effective products[20]. - The Group plans to invest more resources in research and development of silicone lifestyle products and aims to provide comprehensive solutions for silicone accessories in the new energy vehicle sector[54]. - The Group will continue to explore new business types to increase profitability and expand revenue scale in the UK retail market, which is expected to contribute to long-term stable operating results[67]. - The Group is committed to optimizing its existing business structure and actively seeking new potential businesses to maximize returns[68]. Governance and Management - The Group's leadership includes experienced executives with extensive backgrounds in finance and corporate management[30][34][35]. - The Group's independent non-executive directors possess extensive experience in finance, accounting, and corporate management, enhancing governance and oversight[43][45][47]. - The Group's management team includes professionals with over 21 years of experience in their respective fields, ensuring strategic decision-making[43][45]. - The Group's financial performance is supported by a strong governance structure with multiple committees overseeing audit, remuneration, and nominations[43][45]. - The Board of Directors consists of three executive directors, three non-executive directors, and three independent non-executive directors, ensuring a balanced composition[128]. - The Company has complied with the applicable code provisions set out in the Corporate Governance Code throughout the year ended December 31, 2022[120]. - The Board is responsible for overseeing the management of the company's business and affairs, aiming to maximize long-term shareholder value[134]. - The Company aims to maximize long-term shareholder value while balancing the interests of broader stakeholders[136]. Challenges and Risks - The economic downturn and rising inflation are expected to increase operating pressure on the Group, necessitating timely adjustments to business strategies[19]. - The Group anticipates challenges from global supply chain disruptions and economic pressures, but will adjust business strategies accordingly[24]. - The Group faced significant industry competition, particularly in the Silicone Business, which may impact its operational performance if not managed effectively[97]. - The Group's credit risk is heightened due to the potential inability to fully recover receivables, which could affect its capacity to meet short-term obligations[98]. Employee and Compensation - The Group employed 853 permanent and temporary employees as of December 31, 2022, with total salaries and related costs amounting to approximately HK$123,800,000 for the year[114]. - As of December 31, 2022, the company employed 853 long-term and temporary employees, a decrease from 1,164 employees in 2021[117]. - Total compensation and related costs for the year ended December 31, 2022, were approximately HKD 123.8 million, compared to approximately HKD 124.7 million in 2021[117]. Dividend and Share Capital - No dividend is recommended for the year ended December 31, 2022, consistent with the previous year[25]. - The Group's authorized share capital remained unchanged at HK$2,000,000,000, divided into 20,000,000,000 shares with a par value of HK$0.1 each as of December 31, 2022[100]. - The company did not recommend payment of a final dividend for the year ended December 31, 2022[115]. - The company has renewed directors' and officers' liability insurance for all Directors and senior management, covering costs and liabilities arising from the Company's activities for the year ended December 31, 2022[161].

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 的 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 TA YANG GROUP HOLDINGS LIMITED 大洋集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1991） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 全 年 業 績 公 告 末 期 業 績 大 洋 集 團 控 股 有 限 公 司（「本 公 司」）董 事（「董 事」）會（「董 事 會」）公 佈 本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 經 審 核 綜 合 業 績，連 同 截 至 二 零 二 一 年 十 二 月 三 十 一 日 止 年 度 的 經 審 核 比 較 數 字 如 下 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 189,816 thousand, an increase of 12.9% from HKD 168,203 thousand in the same period last year[10]. - Gross profit decreased to HKD 40,132 thousand, down 11.5% from HKD 45,077 thousand year-on-year[10]. - Other income and gains increased to HKD 16,157 thousand, up 39.9% from HKD 11,577 thousand in the previous year[10]. - Administrative expenses rose to HKD 66,643 thousand, an increase of 21.7% compared to HKD 54,780 thousand last year[10]. - The company reported a loss before tax of HKD 42,968 thousand, compared to a loss of HKD 18,362 thousand in the previous year[10]. - The net loss for the period was HKD 43,102 thousand, significantly higher than the loss of HKD 18,409 thousand in the same period last year[10]. - Basic and diluted loss per share was HKD 3.30, compared to HKD 1.83 in the previous year[10]. - The total comprehensive income for the period was HKD 222,405 thousand, compared to HKD 241,938 thousand in the previous period, a decrease of 8.0%[19]. - The company reported a net loss attributable to shareholders of HKD 43,065 for the six months ended June 30, 2022, compared to a loss of HKD 18,406 for the same period in 2021, reflecting an increase in losses of approximately 134%[77]. - The loss per share was approximately HKD 3.30, which is an increase of about 80.1% from HKD 1.83 in the previous year[123]. Assets and Liabilities - As of June 30, 2022, non-current assets totaled HKD 325,857 thousand, compared to HKD 180,921 thousand as of February 28, 2022, representing an increase of 80.0%[16]. - Current liabilities increased to HKD 300,454 thousand from HKD 165,842 thousand, reflecting an increase of 80.9%[19]. - The total assets minus current liabilities amounted to HKD 457,322 thousand, up from HKD 295,430 thousand, indicating a growth of 55.0%[19]. - The company's equity attributable to owners decreased to HKD 222,964 thousand from HKD 242,460 thousand, a decline of 8.0%[19]. - The total liabilities increased to HKD 234,917 thousand from HKD 53,492 thousand, a significant rise of 339.5%[19]. - The company reported a net asset value of HKD 131,465 thousand, up from HKD 114,509 thousand, an increase of 14.0%[19]. - The total current assets were approximately HKD 431,900,000, while total current liabilities were about HKD 300,500,000 as of June 30, 2022[131]. Cash Flow - The net cash used in operating activities was HKD (67,599) thousand, a significant decrease compared to HKD (5,403) thousand in the previous year[33]. - The net cash generated from investing activities was HKD 7,396 thousand, down from HKD 15,970 thousand in the prior year[33]. - The net cash generated from financing activities was HKD 7,946 thousand, compared to HKD 13,852 thousand in the previous year[33]. - The total cash and cash equivalents decreased by HKD 52,257 thousand, resulting in a balance of HKD 31,170 thousand as of June 30, 2022, down from HKD 50,859 thousand[33]. - The group's cash and cash equivalents decreased to HKD 31,170,000 as of June 30, 2022, down from HKD 59,579,000 as of December 31, 2021[125]. Revenue Breakdown - Sales of silicone and related products accounted for HKD 176,176 thousand of the total revenue, while retail services contributed HKD 13,616 thousand, and healthcare and hotel services generated HKD 24 thousand[61]. - The silicone business generated sales revenue of approximately HKD 176.2 million for the six months ended June 30, 2022, compared to approximately HKD 167 million in the previous year[103]. - The retail business, launched in January 2022, recorded sales revenue of approximately HKD 13.6 million for the six months ended June 30, 2022, with no revenue reported in the previous year[105]. - The silicone business generated revenue of approximately HKD 176.2 million, accounting for about 92.8% of total revenue, down from 99.3% in the previous year[117]. - The retail business, launched in January 2022, contributed approximately HKD 13.6 million to total revenue, representing 7.2% of total revenue[117]. Operational Challenges - The group’s gross profit margin has tightened due to operational efficiency declines caused by the COVID-19 pandemic and cost pressures from global inflation[102]. - The healthcare and hotel business continues to perform poorly, with minimal revenue expected in the short term due to the downturn in the Chinese hotel market[117][112]. - The company is exploring monetization opportunities in the healthcare and hotel segment due to its underperformance and is actively seeking synergies in its silicone and retail businesses[108][113]. Corporate Governance and Management - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations, ensuring transparency in performance assessments[147]. - The group has experienced changes in its board, with several resignations and appointments occurring in 2022, including the appointment of a new CEO on August 5, 2022[148]. - The audit committee, consisting of independent non-executive directors, reviewed the accounting principles and practices adopted by the company for the six months ended June 30, 2022[162]. Employee and Shareholder Information - The group employed 1,098 staff members, a decrease from 1,164 as of December 31, 2021, reflecting a focus on enhancing production capacity and product quality[143]. - Major shareholder Lyton Maison Limited holds 796,875,490 shares, representing approximately 60.98% of the company's equity[156]. - The board did not recommend an interim dividend for the six months ended June 30, 2022, consistent with the previous year[144].

Financial Performance - Ta Yang Group reported a revenue of HK$XXX million for the fiscal year ending December 31, 2021, representing a year-over-year increase of XX%[11] - The company achieved a net profit of HK$XXX million, reflecting a growth of XX% compared to the previous year[11] - For the year ended December 31, 2021, the Group recorded an increased revenue of approximately HK$362.5 million, representing an increase of approximately 2.3% compared to HK$354.2 million in 2020[58] - The Group reported a decreased loss for the year of approximately HK$85.8 million, a reduction of approximately 10.4% from a loss of approximately HK$95.8 million in 2020[58] - Loss per share decreased to approximately HK$7.52 cent, representing a decrease of approximately 28.2% compared to approximately HK$10.48 cent in 2020[58] - The Group's cash receipts were primarily in US dollars, Hong Kong dollars, GBP, and Renminbi, with most costs settled in Renminbi[156] - As of December 31, 2021, the Group recorded total current assets of approximately HK$607.5 million and total current liabilities of approximately HK$493.0 million, indicating a tight liquidity position[143] - The Group's liquidity improved, supported by a rights issue completed in June 2021, raising net proceeds of approximately HK$60 million[133] Business Strategy and Expansion - The company provided guidance for the next fiscal year, projecting a revenue growth of XX% to HK$XXX million[11] - Ta Yang Group is focusing on expanding its market presence in Southeast Asia, targeting a XX% increase in market share by 2023[11] - The company is investing in new product development, with an allocation of HK$XXX million towards R&D initiatives in the upcoming year[11] - Ta Yang Group plans to explore potential acquisitions to enhance its product offerings and market reach, with a budget of HK$XXX million set aside for this purpose[11] - The Group aims to seek diversification opportunities with promising prospects, such as the Retail Business[56] - The Group plans to focus on the Retail Business in the UK, which is anticipated to become a major revenue source due to high market demand[64] - The Group is exploring expansion opportunities in retail, including launching flagship stores and establishing an online shopping platform[64] - The Group resolved to formally commence its Retail Business in the United Kingdom in January 2022, launching silicone products directly to end customers[83] Operational Efficiency and Challenges - The company has implemented new strategies to improve operational efficiency, aiming for a reduction in costs by XX% over the next fiscal year[11] - The Group faced challenges from the COVID-19 epidemic, global market fluctuations, geopolitical environment, and competitive pressures[56] - The Group's operations are subject to risks from market price fluctuations and raw material costs, which could impact competitiveness and performance[138] - The business environment remains challenging due to ongoing COVID-19 impacts and unpredictable global political and economic conditions[90] - The Group adopted a flexible working schedule and rearranged production flow in response to increased safety and hygiene regulations due to the COVID-19 epidemic, which added cost pressures[143] Management and Governance - The management team includes experienced professionals with backgrounds in finance, corporate management, and project development, enhancing the Company's operational capabilities[22] - The Board consists of four executive Directors, two non-executive Directors, and three independent non-executive Directors, meeting the minimum requirement of the Listing Rules[1] - Independent non-executive Directors provide a wide range of skills and business experience, contributing independent judgment on strategy, performance, and risk[181] - The Board is responsible for overseeing the management of the Company's business and affairs to maximize long-term shareholder value[189] - The Board ensures the effectiveness of the Group's financial reporting and compliance[192] - Internal controls, risk management, and compliance are key areas monitored by the Board[196] Product Development and Market Performance - The Group's core business, the Silicone Business, was enhanced to improve competitive advantages amid a challenging business environment[56] - The Silicone Business remains the principal business and core revenue generator, with expectations to secure profitable orders and introduce more new products through R&D activities[62] - The Healthcare and Hotel Business was identified for exploration of realization opportunities due to underperformance[56] - The Healthcare and Hotel Business is currently underperforming, and the Group will consider measures to realize value from investments in this segment[64] - The Group has invested in R&D to expand its product portfolio and optimize the product mix, particularly in consumer electronic devices and lifestyle products[74] Financial Position and Investments - The Group raised net proceeds of approximately HK$60 million from a rights issue, with approximately HK$42 million allocated for loan repayment and approximately HK$18 million for general working capital[18] - The Group's properties pledged to secure banking facilities amounted to approximately HK$152.5 million as of December 31, 2021, down from approximately HK$297.8 million in 2020[149] - The Group disposed of properties in Huzhou, Zhejiang Province, to reallocate resources to more profitable production bases, such as the core factory in Dongguan, Guangdong Province[76] - The Group is currently conducting due diligence on a potential acquisition of Fan Tat Packaging Limited, with a refundable deposit of RMB20 million paid for exclusivity[112] Employee and Compensation - The Group employed 1,164 permanent and temporary employees as of December 31, 2021, an increase from 1,080 in 2020[159] - Total salaries and related costs for the year ended December 31, 2021, amounted to approximately HK$124.7 million, up from approximately HK$92.3 million in 2020[159] - The Group did not recommend payment of a final dividend for the year ended December 31, 2021, compared to nil in 2020[159]

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 168,203,000, a decrease of 35.6% compared to HKD 261,482,000 for the same period in 2020[9] - Gross profit for the period was HKD 45,077,000, down 2.5% from HKD 46,243,000 in the previous year[9] - The company reported a loss before tax of HKD 18,362,000, an improvement from a loss of HKD 27,496,000 in the same period last year, representing a 33.5% reduction in losses[9] - The net loss for the period was HKD 18,409,000, compared to a net loss of HKD 27,515,000 in 2020, indicating a 33.0% improvement[11] - Basic and diluted loss per share was HKD 1.83, compared to HKD 3.01 for the same period in 2020[9] - The company reported a loss attributable to owners of the company of HKD 18,406,000 for the six months ended June 30, 2021, compared to a loss of HKD 27,513,000 for the same period in 2020, representing a 33% improvement in losses year-over-year[59] Assets and Liabilities - Non-current assets decreased to HKD 218,049,000 from HKD 428,766,000 as of December 31, 2020, reflecting a decline of 49.1%[14] - Current assets increased slightly to HKD 359,265,000 from HKD 357,574,000, showing a marginal growth of 0.5%[14] - Total liabilities decreased significantly to HKD 455,509,000 from HKD 481,087,000, a reduction of 5.3%[14] - The company’s total assets increased to HKD 344,577,000 from HKD 305,253,000, marking a growth of about 12.9%[16] - Non-current liabilities decreased to HKD 20,773,000 from HKD 27,051,000, showing a reduction of approximately 23.2%[16] - As of June 30, 2021, the company recorded total current assets of approximately HKD 582 million and total current liabilities of about HKD 456 million, indicating reliance on recovering current assets to meet short-term obligations[112] Cash Flow - The company reported cash and cash equivalents of HKD 43,612,000, an increase from HKD 31,774,000 at the end of 2020, representing a growth of 37.3%[14] - Cash and cash equivalents as of June 30, 2021, amounted to HKD 50,859,000, a decrease from HKD 62,674,000 in the previous year, reflecting a decline of approximately 18.9%[29] - The net cash generated from investing activities was HKD 15,970,000, a significant improvement compared to a net cash used of HKD 2,942,000 in the previous year[29] - The company reported a net cash inflow from financing activities of HKD 13,852,000, contrasting with a net cash outflow of HKD 18,374,000 in the prior year[29] - The company’s operating cash flow for the period was a net outflow of HKD 5,403,000, an improvement from a net outflow of HKD 14,521,000 in the previous year[29] Segment Performance - Revenue from the sale of goods was HKD 167,014,000, while revenue from healthcare and hotel services was HKD 1,189,000[42] - The group reported a profit before tax of HKD 17,796,000 for the silicone and related products segment, while the healthcare and hotel services segment incurred a loss of HKD 7,510,000[47] - The group’s segment assets for silicone and related products were HKD 307,670,000, while healthcare and hotel services segment assets were HKD 290,019,000[47] - The group’s total liabilities for the silicone and related products segment were HKD 198,588,000, and for the healthcare and hotel services segment, they were HKD 275,008,000[47] Corporate Actions - The company completed a rights issue on June 30, 2021, raising a total of HKD 60,983,000, with HKD 43,559,000 allocated to share capital[77] - The company announced a rights issue on May 13, 2021, to raise up to approximately HKD 61 million, issuing 435,589,000 shares at a subscription price of HKD 0.14 per share[100] - After the rights issue, the net proceeds of approximately HKD 60 million will be used for repaying outstanding loans (about 70% or HKD 42 million) and for general working capital (about 30% or HKD 18 million)[100] - The company plans to sell a 71% stake in Ocean Medical Investment Limited for RMB 14,771,250, which is expected to enhance resource allocation to its core business[93] - The company announced the sale of properties in Huzhou, Zhejiang Province, for RMB 115 million, which will terminate the production processes at those properties[104] Governance and Compliance - The company complied with the corporate governance code during the six months ended June 30, 2021, despite some non-executive directors being unable to attend the annual general meeting due to COVID-19[138] - The audit committee, consisting of independent non-executive directors, reviewed the accounting principles and practices adopted by the company[169] - The company's interim financial information for the six months ended June 30, 2021, was reviewed by the audit committee[170] Market and Operational Challenges - The ongoing COVID-19 pandemic has increased operational challenges and cost pressures due to heightened safety and health regulations[113] - The company faces risks related to market price fluctuations and demand for its products, particularly in the silicone and related products sector[108] - The company has not entered into significant contracts to hedge against price fluctuations of raw materials, which may impact production costs and competitiveness[108] Employee and Management - The company employed 1,187 staff as of June 30, 2021, focusing on developing high-value, high-quality products through skilled professionals[134] - The management provided monthly updates to the board regarding the company's performance, financial condition, and development prospects[140]

Financial Performance - The company reported a significant increase in revenue, achieving a total of HK$XXX million, representing a year-over-year growth of XX%[1] - For the financial year ended December 31, 2020, the Group recorded a total turnover of HK$354.2 million, a decrease from HK$521.0 million for the seventeen months ended December 31, 2019[50] - The revenue for the year ended December 31, 2020, was HK$354.2 million, a decrease from HK$521.0 million for the seventeen months ended December 31, 2019, primarily driven by the impact of the COVID-19 pandemic[70] - Approximately 97.1% of total revenue was generated from the sale of silicone rubber and related products, while healthcare and hotel services accounted for about 2.9% of total revenue[70] - Gross profit decreased approximately 26.0% from HK$105.0 million for the seventeen months ended December 31, 2019, to HK$77.7 million for the year ended December 31, 2020[72] - The gross profit margin increased by 1.7% from 20.2% for the seventeen months ended December 31, 2019, to 21.9% for the year ended December 31, 2020, due to effective cost control measures[72] Market Strategy and Outlook - The company provided a positive outlook for the upcoming fiscal year, projecting a revenue growth of XX% driven by new product launches and market expansion strategies[1] - The company is planning to expand its market presence in Southeast Asia, targeting a XX% increase in market share within the next two years[1] - The Group plans to launch its own brand of silicone retail products and expand distribution channels, including e-commerce and New Retail, to capture market share[62] - The Group is actively seeking new business opportunities in advanced manufacturing, smart wearable devices, electronic cigarettes, and medical aesthetics[62] - The Group believes that opportunities exist within the challenges posed by the COVID-19 pandemic, emphasizing the importance of discovering and seizing business opportunities during crises[53] Cost Management and Efficiency - The management highlighted the successful implementation of cost-reduction strategies, resulting in a XX% decrease in operational expenses[1] - Selling and distribution expenses decreased by approximately 33.5% to HK$17.9 million for the year ended December 31, 2020 from HK$26.9 million for the seventeen months ended December 31, 2019, representing 5.1% of revenue[78] - Administrative expenses decreased by approximately 39.8% to HK$118.4 million for the year ended December 31, 2020 from HK$196.7 million for the seventeen months ended December 31, 2019, accounting for 33.4% of revenue[78] Corporate Governance - The board of directors emphasized the importance of corporate governance and risk management practices to ensure long-term growth and stability[1] - The company has complied with the applicable code provisions of the Corporate Governance Code throughout the year, except for specific provisions regarding the separation of roles of chairman and CEO[110] - The company adopted a Board Diversity Policy to enhance the quality of its performance through a diverse board composition[125] - The Board currently comprises four executive directors, two non-executive directors, and five independent non-executive directors[124] - The Company maintains clear demarcations of responsibility between the Chairman and CEO to ensure balanced power and independent decision-making[172] Management and Leadership Experience - Gao Feng has approximately 12 years of experience in corporate management and has been the general manager of Beijing Zhongmei Zhengchen Construction Co., Ltd. since 2012[22] - Liu Wengang has over 10 years of experience in capital, financing, and corporate management, previously serving as Chief Investment Officer at Bisu Technology Group International Limited[23] - Cheng Hong has held various managerial positions since 1999, including general manager roles in technology development companies, indicating strong operational experience[28] - Han Lei has over 24 years of experience in the entertainment industry, contributing to the company's brand image and public relations efforts[30] - Chan Tsun Hong Philip has over 15 years of experience in auditing and financial accounting, currently serving as senior vice president at Mason Group Holdings Limited[34] Risk Management and Compliance - The Company aims to maintain proper internal controls and risk management systems, as well as disclosure controls and procedures[181] - The Board is responsible for risk management functions and corporate governance functions[179] - The Company has renewed directors' and officers' liability insurance for all Directors and senior management, covering costs and liabilities arising from corporate activities[170] Employee and Compensation Information - The total salaries and related costs for the year ended December 31, 2020 amounted to approximately HK$92.3 million, down from HK$184.3 million for the seventeen months ended December 31, 2019[96] - The total number of full-time and temporary employees as of December 31, 2020, was 1,080, a decrease from 1,275 in 2019[99] - Total compensation and related costs for the year ended December 31, 2020, amounted to approximately HKD 92.3 million, compared to HKD 184.3 million for the 17 months ended December 31, 2019[99] Future Initiatives - Future guidance includes a focus on sustainability initiatives, aiming for a XX% reduction in carbon footprint by 2025[1] - The Group anticipates strong long-term demand for personal protective equipment, leveraging its experience in the research, development, and marketing of all-silicone masks[59] - The Group has successfully established global distribution networks for pandemic prevention products, enabling accelerated production and sales of its own products[59]