Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 349.4 million, a decrease of 2.8% compared to HKD 359.4 million for the same period in 2023[1] - Gross profit for the six months ended June 30, 2024, was HKD 124.8 million, an increase of 7.5% from HKD 116.1 million in the same period of 2023[1] - Profit for the six months ended June 30, 2024, was HKD 36.1 million, representing a 63.3% increase from HKD 22.1 million in the same period of 2023[1] - Total comprehensive income for the period was HKD 33.1 million, compared to HKD 17.8 million for the same period in 2023[4] - The group's profit before tax for the six months ended June 30, 2024, was HKD 36,146,000, compared to HKD 22,090,000 for the same period in 2023, representing a year-on-year increase of 63.7%[21] - The group's net profit increased by HKD 14.0 million or 63.3% to HKD 36.1 million, with the net profit margin rising from 6.1% to 10.3%[45] Revenue Breakdown - Total customer contract revenue for the six months ended June 30, 2024, was HKD 349,437,000, a decrease of 2.6% compared to HKD 359,382,000 for the same period in 2023[13] - Revenue from coffee, tea, and related products sales was HKD 334,534,000, down from HKD 342,514,000 year-over-year[13] - Revenue from frozen food sales decreased significantly to HKD 4,103,000 from HKD 6,492,000, representing a decline of 36.7%[13] - Revenue from coffee and tea machine planning services was HKD 10,800,000, slightly up from HKD 10,376,000, indicating a growth of 4.1%[13] - Revenue from Hong Kong for the six months ended June 30, 2024, was HKD 244,279,000, an increase of 2.9% from HKD 238,586,000 in 2023[13] - Revenue from Mainland China decreased to HKD 99,187,000 from HKD 113,940,000, a decline of 13.0%[13] Costs and Expenses - The cost of goods sold for the six months ended June 30, 2024, was HKD 224,629,000, a decrease from HKD 243,276,000 for the same period in 2023, representing a reduction of 7.6%[6] - The cost of sales decreased by HKD 18.7 million or 7.7% to HKD 224.6 million, mainly due to a reduction in raw material costs for coffee products[37] - The group incurred employee benefit expenses of HKD 60,728,000 for the six months ended June 30, 2024, compared to HKD 57,766,000 for the same period in 2023, an increase of 5.1%[6] Assets and Liabilities - Non-current assets as of June 30, 2024, totaled HKD 229.1 million, an increase from HKD 217.7 million as of December 31, 2023[5] - Current assets as of June 30, 2024, were HKD 449.1 million, down from HKD 517.5 million as of December 31, 2023[5] - Total liabilities as of June 30, 2024, were HKD 141.4 million, compared to HKD 125.9 million as of December 31, 2023[5] - Equity attributable to owners of the parent as of June 30, 2024, was HKD 507.6 million, down from HKD 590.4 million as of December 31, 2023[6] - Trade receivables amounted to HKD 101,001,000 as of June 30, 2024, down from HKD 126,252,000 as of December 31, 2023, showing a decrease of 20.0%[23] - Trade payables as of June 30, 2024, amounted to HKD 77.1 million, an increase from HKD 63.4 million as of December 31, 2023[26] Taxation - The total tax expense for the six months ended June 30, 2024, was HKD 8,978,000, up from HKD 4,458,000 in the same period of 2023, indicating a 101.5% increase[19] - The actual tax rate increased from 16.8% to 19.9%, with tax expenses rising by 100% to HKD 9.0 million due to increased pre-tax profits[44] Dividends and Shareholder Returns - The group recognized a special dividend of HKD 99,966,000 for the 2023 financial year, compared to HKD 15,784,000 for the previous year, marking a significant increase[20] - The company declared an interim dividend of HKD 2.76 per share for the six months ending June 30, 2024, compared to HKD 1.84 for the same period in 2023[57] Market Environment and Challenges - The company is facing significant challenges due to a 9.7% decline in retail sales value in Hong Kong in June 2024 compared to the same month in 2023[35] - Approximately 2,200 restaurants are estimated to have closed in the first half of 2024, indicating a challenging market environment for the company[35] - The company emphasizes the importance of robust cash flow and risk management in response to the complex market environment[35] - The company remains confident in its ability to adapt to market dynamics and protect shareholder interests[35] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024[58] - The company adhered to corporate governance practices, with a noted deviation regarding the roles of the chairman and CEO, which are held by the same individual[62] - The board consists of three independent non-executive directors, ensuring a balance of power and accountability[63] - The company has adopted a securities trading code that meets the standards required by the listing rules[64]

Financial Performance - The company reported a significant increase in revenue, achieving a total of HK$1.2 billion, representing a year-on-year growth of 15%[12] - Total revenue for the Group in 2023 was HK$728,930,000, an increase from HK$695,938,000 in 2022[36] - The Group's revenue increased by HK$33.0 million, or 4.7%, from HK$695.9 million in 2022 to HK$728.9 million in 2023[65] - Revenue from Beverage Solutions segment was HK$717,431,000, accounting for 98.4% of total revenue in 2023[36] - Revenue generated in Hong Kong increased by HK$33.1 million, or 7.2%, from HK$459.2 million in 2022 to HK$492.3 million in 2023[53] - Revenue from the food products segment decreased by HK$4.4 million, or 27.7%, from HK$15.9 million in 2022 to HK$11.5 million in 2023[48] - Revenue generated in Mainland China decreased by HK$4.9 million, or 2.2%, from HK$224.2 million in 2022 to HK$219.3 million in 2023[54] - Revenue from other markets increased by HK$4.8 million, or 38.4%, from HK$12.5 million in 2022 to HK$17.3 million in 2023[55] Profitability and Margins - The gross profit margin improved to 40%, up from 35% in the previous year, reflecting better cost management[12] - Gross profit for the year ended 31 December 2023 amounted to HK$240.6 million, representing an increase of HK$5.8 million, or 2.5%, compared to HK$234.8 million in 2022[44] - The gross profit margin slightly decreased from 33.7% in 2022 to 33.0% in 2023[44] - The rise in coffee bean prices continued to affect the Group's gross profit despite hedging measures[31] - Profit for the year increased by HK$1.3 million, or 2.7%, from HK$47.4 million in 2022 to HK$48.7 million in 2023, with a slight decrease in net profit margin from 6.8% to 6.7%[85] Market Expansion and Strategy - The company is expanding its market presence in Mainland China, targeting a 25% increase in market share over the next two years[12] - New product launches are expected to contribute an additional HK$200 million in revenue, with a focus on innovative technology solutions[12] - The Group is optimistic about a full recovery from the impact of the COVID-19 pandemic and plans to enhance profitability by adjusting business strategies[62] - The Group implemented cost control and production optimization initiatives to improve operational efficiency in response to challenges in the PRC market[20] Corporate Governance - The Company is committed to high standards of corporate governance, emphasizing transparency, independence, accountability, responsibility, and fairness[167] - The Board has established various committees to manage and oversee specific affairs of the Company[171] - The Company has complied with the code provisions set out in the CG Code for the year ended 31 December 2023, except for code provision C.2.1 regarding the separation of roles of chairman and chief executive[170] - The Board has satisfied itself that the Company's culture aligns with its established purpose, values, and strategy[169] - The Company recognizes the importance of integrity, ethical conduct, and responsible business practices, which are reinforced across the Group[168] Leadership and Management - The Group's strategic planning and business development are overseen by Mr. Kam Chun Pong Bernard, who has over 30 years of experience in marketing and business development[137] - Ms. Fan Yee Man, the Group CFO, has 20 years of experience in finance and accounting management[136] - The Group's chairman and CEO, Mr. Wong Tat Tong, has been with the Group for over 40 years, focusing on strategic planning and development[131] - Timothy John Collins appointed as non-executive director with over 25 years of experience in FMCG and healthcare sectors[142] - Chiu Kar Kid promoted to Chief Operating Officer for China, responsible for B2B and B2C sales strategies[158] Financial Position and Investments - The Group had cash and cash equivalents of HK$253.8 million as of December 31, 2023, compared to HK$189.8 million in 2022, indicating a robust financial position[97] - As of December 31, 2023, the Group's net current assets increased to HK$391.5 million, up HK$16.9 million from HK$374.6 million as of December 31, 2022[96] - Capital expenditure for the year was HK$30.8 million, down from HK$66.4 million in 2022, with significant spending on coffee and tea machines[86] - The Group's total remaining balance as of January 1, 2023, was HK$232,610,000, with no unutilized amounts reported[128] Risk Management - The Group's exposure to foreign currency risk arises mainly from transactions in currencies other than the functional currencies, with significant purchases in US dollars[112] - The Group's credit risk is limited as it trades only with recognized and creditworthy third parties, and all customers are subject to credit verification procedures[114] Diversity and Inclusion - As of December 31, 2023, the gender ratio in the workforce is 58% male and 42% female, indicating a balanced gender diversity[198] - The Company has adopted a Board Diversity Policy, reviewed annually, to enhance diversity in the Board composition[188]

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of HKD 728.9 million, an increase of HKD 33.0 million or 4.7% compared to the previous year[1]. - The gross profit for the same period was HKD 240.6 million, up HKD 5.8 million or 2.5%, with a slight decrease in gross margin from 33.7% to 33.0%[1]. - The group reported a pre-tax profit of HKD 48.7 million for the year ended December 31, 2023, compared to HKD 47.4 million for the year ended December 31, 2022[38]. - Profit for the year ended December 31, 2023, was HKD 48.7 million, an increase of 2.7% from HKD 47.4 million for the previous year[55]. - The group's annual profit increased by HKD 1.3 million or 2.7% to HKD 48.7 million for the year ended December 31, 2023, compared to HKD 47.4 million for the previous year[110]. - Total comprehensive income for the year amounted to HKD 44,245,000, compared to HKD 24,627,000 in the previous year, showing a significant increase of 79.5%[58]. Revenue Breakdown - The revenue from the catering planning services segment increased by HKD 37.4 million or 5.5% to HKD 717.4 million, primarily due to increased sales of coffee and tea products following the end of the COVID-19 pandemic[2]. - The food segment's revenue decreased by HKD 4.4 million or 27.7% to HKD 11.5 million, mainly due to reduced income from Hong Kong[4]. - Revenue generated in Hong Kong increased by HKD 33.1 million or 7.2% to HKD 492.3 million, driven by higher sales of coffee, tea, and dairy products[5]. - Revenue from other markets rose by HKD 4.8 million or 38.4% to HKD 17.3 million, attributed to partial economic recovery post-COVID-19[6]. - Revenue generated from mainland China decreased by HKD 4.9 million or 2.2% to HKD 219.3 million for the year ended December 31, 2023, down from HKD 224.2 million for the year ended December 31, 2022, primarily due to a decline in tea product sales[18]. Cost and Expenses - The group's cost of sales increased by HKD 27.2 million or 5.9% to HKD 488.4 million for the year ended December 31, 2023, compared to HKD 461.2 million for the year ended December 31, 2022, mainly due to increased raw material costs for catering planning services[22]. - Sales and distribution expenses decreased by HKD 1.6 million or 1.5% to HKD 102.8 million for the year ended December 31, 2023, primarily due to reduced marketing and promotion expenses and lower employee costs[77]. - General and administrative expenses remained stable, slightly increasing by HKD 0.1 million or 0.1% to HKD 79.3 million for the year ended December 31, 2023[88]. - The group's financing costs increased by HKD 0.1 million or 11.1% to HKD 1.0 million for the year ended December 31, 2023, primarily due to rising average interest rates on bank borrowings[90]. Dividends and Shareholder Returns - The company proposed a final dividend of HKD 2.22 per share, up from HKD 2.19 per share in the previous year, with a special dividend of HKD 13.87 per share[8]. - The company declared a special dividend of HKD 0.1387 per share, totaling HKD 100 million, to be paid on March 11, 2024[102]. - A special dividend of HKD 0.1387 per share was declared on February 16, 2024, amounting to around HKD 100 million, which was paid on March 11, 2024[136]. Assets and Liabilities - Total non-current assets increased to HKD 217.7 million in 2023 from HKD 212.7 million in 2022[39]. - Current assets decreased slightly to HKD 517.5 million in 2023 from HKD 517.9 million in 2022[39]. - Total current liabilities decreased to HKD 125.9 million in 2023 from HKD 143.3 million in 2022[39]. - The company's total assets as of December 31, 2023, were HKD 730,571,000, with total liabilities amounting to HKD 155,335,000[69]. - The total interest-bearing bank borrowings decreased to HKD 7.1 million as of December 31, 2023, from HKD 10.6 million in 2022[92]. - The group's asset-liability ratio improved to 1.2% as of December 31, 2023, down from 1.8% in 2022, primarily due to a reduction in outstanding interest-bearing bank borrowings[95]. Corporate Governance - The board of directors includes eight members, with three independent non-executive directors ensuring adequate governance and oversight[127]. - The company emphasizes good corporate governance practices to enhance investor confidence[139]. - The chairman and CEO positions are held by the same individual, which the board believes aids in executing business strategies efficiently[140]. - The company established an audit committee consisting of three independent non-executive directors to review accounting policies and financial reporting matters[133]. Future Outlook - The group plans to adjust its business strategies flexibly to enhance profitability and improve financial performance in the coming year, despite a challenging business environment[20]. - The group remains optimistic about achieving a full recovery post-COVID-19 and is focused on adapting to changing consumer habits[20]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[61]. Employee and Operational Efficiency - The group employed 195 and 203 employees in Hong Kong and mainland China, respectively, as of December 31, 2023, compared to 209 and 198 in 2022[99]. - The group has implemented several improvement measures to enhance operational efficiency in response to challenges faced in the mainland China market[17]. Miscellaneous - The company experienced a foreign exchange loss of HKD 4,466,000 related to the translation of overseas operations[58]. - The company completed the sale of assets classified as held for sale for HKD 17.2 million, generating a gain of approximately HKD 12.4 million[123]. - The company maintains sufficient public float, with at least 25% of issued shares held by the public as per listing rules[135]. - The annual report for the year ending December 31, 2023, will be distributed to shareholders and published on the company's website and the stock exchange website[143]. - The annual general meeting is scheduled for June 12, 2024, pending shareholder approval[130].

Revenue and Profitability - For the six months ended June 30, 2023, the Group recorded total revenue of HK$359.4 million, an increase of HK$30.4 million or 9.2% from HK$329.0 million for the same period in 2022[12]. - Revenue from the beverage solutions segment increased by HK$31.2 million or 9.7% to HK$352.9 million, primarily due to growth in Hong Kong and Mainland China[12]. - Revenue from the food products segment decreased by HK$0.8 million or 11.0% to HK$6.5 million, attributed to a decline in revenue from Hong Kong[12]. - The Group's revenue increased by HK$30.4 million, or 9.2%, from HK$329.0 million for the six months ended June 30, 2022, to HK$359.4 million for the six months ended June 30, 2023[22]. - The increase in revenue was primarily due to higher sales volume of coffee and tea products following the resumption of normalcy in Hong Kong and Mainland China after the COVID-19 pandemic[25]. - Profit for the period was HK$22,090,000, representing a 5.1% increase from HK$21,027,000 in 2022[92]. - Profit before tax increased slightly to HK$26,548,000, compared to HK$26,188,000 in the previous year, indicating a growth of 1.4%[92]. - The Group's profit for the period increased by HK$1.1 million, or 5.2%, from HK$21.0 million to HK$22.1 million, with a slight decrease in net profit margin from 6.4% to 6.1%[43]. Costs and Expenses - Gross profit margin slightly decreased from 34.3% in the first half of 2022 to 32.3% in the first half of 2023, mainly impacted by rising raw material costs[12]. - The Group's cost of sales rose by HK$27.0 million, or 12.5%, from HK$216.3 million to HK$243.3 million during the same period, mainly due to increased raw material costs for beverage solutions[23]. - Selling and distribution expenses increased by HK$5.2 million, or 11.3%, from HK$45.9 million to HK$51.1 million, driven by higher marketing and logistics expenses[30]. - General and administrative expenses decreased by HK$3.3 million, or 7.9%, from HK$41.8 million to HK$38.5 million, mainly due to reduced staff costs[31]. - Other income and gains, net, decreased by HK$2.1 million, or 46.7%, from HK$4.5 million to HK$2.4 million, primarily due to the absence of government subsidies during the period[29]. Financial Position - Cash and cash equivalents stood at HK$225.9 million as of June 30, 2023, indicating a robust financial position[51][56]. - The Group's net current assets were HK$372.0 million, reflecting a slight decrease of HK$2.6 million compared to HK$374.6 million as of December 31, 2022[50][55]. - The Group's total interest-bearing bank borrowings amounted to HK$7.7 million as of June 30, 2023, down from HK$10.6 million as of December 31, 2022[49][54]. - The Group's gearing ratio was 1.3% as of June 30, 2023, down from 1.8% as of December 31, 2022, primarily due to a reduction in outstanding borrowings[63][67]. - Current assets decreased to HK$481,539,000 from HK$517,854,000, representing a decline of about 7.0%[95]. - Total current liabilities decreased significantly from HK$143,264,000 to HK$109,582,000, a reduction of approximately 23.5%[96]. - The company's net assets increased to HK$577,289,000 from HK$575,236,000, indicating a growth of approximately 0.4%[96]. Capital Expenditures and Investments - Capital expenditures amounted to HK$16.7 million, down from HK$51.7 million in the previous period, primarily for coffee and tea machines and production machinery[44]. - As of June 30, 2023, the Group had capital commitments of HK$5.4 million, a decrease from HK$14.2 million at the end of 2022, mainly related to production machinery contracts[45]. - The Group has no concrete plans for material investments or capital assets for the upcoming year[53][58]. Strategic Developments - In April 2023, Dah Chong Hong Food International Holdings Limited became a strategic substantial shareholder, aiming to leverage competitive strengths for growth and operational synergy[16]. - The collaboration with DCH is focused on four strategic dimensions, with an implementation roadmap being designed[19]. - The partnership is expected to enhance the Group's business foundation in the PRC, improving overall income and profitability[20]. Employee and Training - The Group employed 200 and 197 employees in Hong Kong and the PRC, respectively, as of June 30, 2023[77][80]. - The Group provided various training programs to employees, focusing on operational skills and professional knowledge to support business strategy implementation[78]. Segment Performance - Segment revenue for the Beverage Solutions segment was HK$352,890,000, while the Food Products segment generated HK$6,492,000, totaling HK$359,382,000 for the six months ended June 30, 2023[133]. - The adjusted profit before tax for the Group was HK$26,548,000, with segment results showing a profit of HK$31,675,000 for Beverage Solutions and a loss of HK$621,000 for Food Products[133]. - Total segment assets amounted to HK$491,252,000, with Beverage Solutions contributing HK$479,719,000 and Food Products contributing HK$11,533,000 as of June 30, 2023[135]. Compliance and Regulatory Matters - The Group adopted new and revised Hong Kong Financial Reporting Standards (HKFRSs) for the first time in the current period's financial statements[116]. - Amendments to HKAS 1 require the disclosure of material accounting policy information, which is expected to affect the Group's annual consolidated financial statements[117]. - The Group was unable to obtain real estate ownership certificates for two warehouses in Mainland China, with costs of HK$0.7 million and HK$0.6 million respectively[198]. - The directors believe it is not probable that the relevant authorities will impose the penalty, considering current practices and legal advice[199].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 TSIT WING INTERNATIONAL HOLDINGS LIMITED 捷 榮 國 際 控 股 有 限 公司 * （根據百慕達法例註冊成立的有限公司） （股份代號：2119） 截至2023年6月30日止六個月的 中期業績公告 財務摘要 • 截至2023年6月30日止六個月的收入為359.4百萬港元，較2022年同期的329.0百萬 港元增加9.2%。 • 截至2023年6月30日止六個月的毛利為116.1百萬港元，較2022年同期的112.7百萬 港元增加3.0%。 • 毛利率由截至2022年6月30日止六個月的34.3%減至截至2023年6月30日止六個月 的32.3%。 • 截至2023年6月30日止六個月的溢利為22.1百萬港元，較2022年同期的21.0百萬港 ...

Sales Revenue Performance - The Group's sales revenue in Hong Kong decreased by 3.1% in 2022 compared to 2021, aligning with the overall market trend where the restaurant sector revenue fell by 6.4%[15]. - The Group's sales revenue in Mainland China dropped by over 15% in 2022 due to significant pandemic-related restrictions and lockdowns[34]. - The Group recorded total revenue of HK$695.9 million for the year ended December 31, 2022, a decrease of HK$70.9 million, or 9.2%, compared to HK$766.8 million in 2021[62]. - Revenue from the beverage solutions segment decreased by HK$70.0 million, or 9.3%, from HK$750.0 million in 2021 to HK$680.0 million in 2022[64]. - Revenue from food products decreased from HK$16.8 million in 2021 to HK$15.9 million in 2022, a decline of 5.2%[45]. - Revenue generated in Hong Kong decreased by HK$14.6 million, or 3.1%, from HK$473.8 million for the year ended 31 December 2021 to HK$459.2 million for the year ended 31 December 2022[73]. - Revenue generated in Mainland China decreased by HK$57.6 million, or 20.4%, from HK$281.8 million for the year ended 31 December 2021 to HK$224.2 million for the year ended 31 December 2022[74]. - Revenue from other markets increased by HK$1.3 million, or 11.6%, from HK$11.2 million for the year ended 31 December 2021 to HK$12.5 million for the year ended 31 December 2022[79]. Cost Control and Operational Efficiency - The Group implemented strict cost control measures in 2022, resulting in a decrease in sales costs compared to 2021[1]. - The Group's operational efficiency was enhanced through various initiatives, including the consolidation of routing systems and upgrading of internal procedures[22]. - The cost of sales decreased by HK$6.6 million, or 1.4%, from HK$467.8 million in 2021 to HK$461.2 million in 2022, mainly due to lower raw material costs resulting from decreased overall sales volume[105][106]. - The Group implemented stringent cost control measures in 2022, which contributed to a reduction in the cost of sales compared to 2021[39]. - The Group will implement stringent cost control measures, including commodities hedging and sourcing from competitive suppliers, in 2023[95]. Gross Profit and Margin - Gross profit for the year ended December 31, 2022, amounted to HK$234.8 million, representing a decrease of HK$64.2 million, or 21.5%, compared to HK$298.9 million in 2021[62]. - The gross profit margin decreased from 39.0% in 2021 to 33.7% in 2022[62]. - The increase in raw material costs, particularly for coffee beans, negatively impacted the gross profit margin, despite some relief from commodity hedging[57]. - Gross profit fell by HK$64.2 million, or 21.5%, from HK$299.0 million in 2021 to HK$234.8 million in 2022, with the gross profit margin decreasing from 39.0% to 33.7%[106]. - Gross profit decreased by HK$1.5 million or 60.0% from HK$2.5 million for the year ended 31 December 2021 to HK$1.0 million for the year ended 31 December 2022, with gross profit margin decreasing from 14.9% to 6.3%[70]. Market Outlook and Strategic Initiatives - The Group is optimistic about the recovery of its Hong Kong market business in 2023, supported by a robust customer network[19]. - The Group is preparing for a rebound in business following the expected relaxation of pandemic control measures in 2023[33]. - The management expressed confidence in the Group's prospects following the relaxation of pandemic measures in early 2023, anticipating opportunities for economic recovery[50]. - The Group is keen to explore opportunities to bring in potential strategic partners in Mainland China to strengthen its market presence[96]. - The Group aims to expand product penetration to current customers and under-developed channels, as well as enhance its pre-cooked product portfolio[83]. - The Group will focus on business development in the Greater Bay Area and Greater Shanghai, targeting key food service channels such as tea bistros and hotels[87]. - The management is focusing on improving its marketing strategies and smart pricing policies to adapt to the changing market conditions[33]. Shareholder and Corporate Governance - As of December 31, 2022, the Company had 720,731,512 shares issued[163]. - Mr. Wong and Ms. Li are deemed to be interested in 514,667,312 shares as of December 31, 2022[163]. - No continuing connected transactions were entered by the Group during the year ended December 31, 2022[171]. - The Company has maintained the prescribed public float under the Listing Rules as of the date of the Annual Report[166]. - There were no significant transactions involving Directors or their close associates during the year[167]. - The Group's consolidated financial statements were audited in accordance with Hong Kong Standards on Auditing[190]. Environmental and Employee Initiatives - The Group strives to minimize its environmental impacts through effective air emissions control and superior water and energy efficiency[175]. - The Company has adopted a share option scheme to incentivize outstanding employees[172]. - Remuneration packages for employees are structured based on qualifications, experience, performance, and market terms[200]. - The Company has adopted share option schemes to motivate valued employees, as detailed in the Prospectus[200]. Product Development and Supply Chain - The Group upgraded its coffee plant in China to reduce manpower needs and further automated the production line to achieve quality standardization[22]. - The launch of tea machines has been delayed due to supply chain issues related to the Pandemic, affecting the utilization of remaining Net Proceeds[197]. - The expected timeline for utilizing the remaining Net Proceeds for product customization and development has been extended to December 31, 2023[197]. - The Group has applied the Net Proceeds according to previously disclosed plans and continues to monitor market conditions[198]. - Unutilized Net Proceeds have been placed as bank balances/time deposits with licensed banks in Hong Kong as of the date of the Annual Report[198].

Financial Performance - For the six months ended June 30, 2022, the Group recorded total revenue of HK$329.0 million, a decrease of HK$32.3 million or 8.9% from HK$361.3 million for the same period in 2021[42]. - Revenue from the beverage solutions segment decreased by HK$31.2 million or 8.8% to HK$321.7 million, primarily due to a decline in revenue from Hong Kong and Mainland China[42]. - The Group's profit for the period decreased by HK$17.3 million, or 45.2%, from HK$38.3 million for the six months ended June 30, 2021, to HK$21.0 million for the six months ended June 30, 2022[76]. - Profit before tax decreased to HK$26,188,000, a decline of 46.0% from HK$48,473,000 in the previous year[130]. - Profit for the period attributable to owners of the parent was HK$21,027,000, compared to HK$38,306,000 in the prior year, representing a 45.0% decrease[130]. - Total comprehensive income for the period was HK$9,292,000, significantly lower than HK$40,340,000 in the previous year[134]. Gross Profit and Margins - Gross profit margin decreased from 40.4% for the six months ended June 30, 2021, to 34.3% for the same period in 2022[42]. - The Group's gross profit decreased by HK$33.2 million, or 22.8%, from HK$145.9 million for the six months ended June 30, 2021, to HK$112.7 million for the six months ended June 30, 2022[57]. - Gross profit for the same period was HK$112,652,000, down from HK$145,879,000, reflecting a gross profit margin decrease[130]. Expenses and Cost Management - Selling and distribution expenses decreased by HK$10.9 million, or 19.2%, from HK$56.8 million for the six months ended June 30, 2021, to HK$45.9 million for the six months ended June 30, 2022[63]. - Administrative expenses increased by HK$2.5 million, or 6.4%, from HK$39.3 million for the six months ended June 30, 2021, to HK$41.8 million for the six months ended June 30, 2022[64]. - The cost of sales for the six months was HK$216,331,000, slightly higher than HK$215,409,000 in the same period last year[130]. Market Conditions and Recovery - The Group's business began to recover in May 2022, with sales and profit margins showing an upward trend despite adverse market conditions[46]. - The ongoing COVID-19 pandemic continues to impact the Group's performance, particularly due to lockdowns in various cities in China[45]. - The decrease in revenue was primarily due to a decline in sales volume of coffee, tea, and milk products, attributed to the fifth wave of COVID-19 in Hong Kong and lockdown measures in Mainland China[55]. Operational Enhancements - The Group plans to enhance operational capabilities in marketing, sales, and supply chain to support its development plan in China[50]. - The Group has upgraded its SAP system to improve CRM and market assessment capabilities, allowing for better adaptation to market changes[49]. - Online sales in Hong Kong experienced steady growth, and B2C sales regained momentum compared to the previous year[49]. Financial Position and Liquidity - Cash and cash equivalents stood at HK$232.7 million as of June 30, 2022, indicating a robust financial position to support operations and foreseeable capital expenditures[85]. - The Group's net current assets decreased by HK$52.0 million to HK$375.5 million as of June 30, 2022, down from HK$427.5 million as of December 31, 2021[84]. - The Group's total interest-bearing bank borrowings increased to HK$12.3 million as of June 30, 2022, compared to HK$3.2 million as of December 31, 2021[83]. - The Group's gearing ratio rose to 2.1% as of June 30, 2022, up from 0.5% as of December 31, 2021, primarily due to an increase in outstanding interest-bearing bank borrowings[96]. - The Group's liquidity management includes maintaining a cash pooling system to ensure adequate funds for short and long-term liquidity requirements[110]. Capital Expenditures and Commitments - Capital expenditures amounted to HK$51.7 million during the six months ended June 30, 2022, compared to HK$17.0 million for the same period in 2021[77]. - As of June 30, 2022, the Group had capital commitments of HK$17.1 million, primarily related to contracts for capital expenditure in production machinery[78]. - The company has no concrete plans for material investments or capital assets for the forthcoming year[86]. Employee and Workforce Changes - The Group employed 193 and 227 employees in Hong Kong and the PRC, respectively, as of June 30, 2022, compared to 207 and 235 employees as of December 31, 2021[111]. Foreign Currency and Exchange Management - The Group is closely monitoring foreign currency exposures, primarily arising from transactions in currencies other than the functional currencies[102]. - The company reported an exchange loss of HK$11,735,000 due to translation of foreign operations[134].

Financial Performance - Tsit Wing International Holdings Limited reported a revenue of HK$1.2 billion for the fiscal year 2021, representing a year-on-year increase of 15%[4] - The company achieved a net profit of HK$150 million, which is a 10% increase compared to the previous year[4] - For the year ended December 31, 2021, the Group recorded total revenue of HK$766.8 million, representing an increase of HK$128.3 million, or 20.1%, compared to the previous year[55] - Revenue from the beverage solutions segment increased by HK$126.7 million, or 20.3%, from HK$623.3 million in 2020 to HK$750.0 million in 2021[59] - Gross profit for the year ended December 31, 2021, amounted to HK$299.0 million, representing an increase of HK$35.9 million, or 13.6%, compared to the previous year[55] - The gross profit margin decreased from 41.2% in 2020 to 39.0% in 2021[55] - The Group's profit for the year increased by HK$3.4 million, or 4.4%, from HK$76.8 million for the year ended 31 December 2020 to HK$80.2 million for the year ended 31 December 2021, with a net profit margin decrease from 12.0% to 10.5%[96] Market Expansion and Strategy - User data indicated a growth in active customers by 20%, reaching a total of 500,000 users[4] - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[4] - New product launches are expected to contribute an additional HK$200 million in revenue in the upcoming fiscal year[4] - Tsit Wing International Holdings Limited has outlined a strategic goal to achieve a 30% increase in online sales by the end of 2022[4] - The Group plans to expand its production line in the PRC and strengthen its business in the Greater Bay Area, Yangtze River Delta, and North China Region[31] - The Group aims to strengthen its market penetration and expand its production line in the Greater Bay Area and Yangtze River Delta[75] Operational Efficiency and Investment - The company is investing HK$50 million in research and development for new technologies aimed at improving operational efficiency[4] - The Group is exploring potential acquisitions to enhance its product offerings and market reach, with a budget of HK$100 million allocated for this purpose[4] - The Group plans to further optimize and develop its frozen food business, which became operational in 2021[41] - The Group's cost of sales increased by HK$92.3 million, or 24.6%, from HK$375.5 million for the year ended 31 December 2020 to HK$467.8 million for the year ended 31 December 2021[83] Corporate Governance - The Company has maintained high standards of corporate governance, emphasizing transparency, independence, accountability, responsibility, and fairness[163] - The Board of Directors consists of six members, including three executive directors and three independent non-executive directors, exceeding the Listing Rules requirement for independent directors[189] - The independent non-executive directors represent 50% of the Board, which is higher than the one-third requirement set by the Listing Rules[189] - The Board has adopted a Board Diversity Policy to enhance diversity, considering factors such as gender, age, cultural background, and professional experience[195] - The Company has complied with the corporate governance code provisions throughout the year ended December 31, 2021, except for the separation of roles between the chairman and chief executive officer[164] Risk Management and Financial Position - The Group's liquidity management includes a cash pooling system to ensure adequate funds for short and long-term requirements[117] - The Group is closely monitoring foreign currency exposure, primarily from transactions in US dollars, while sales and disbursements are mainly in Hong Kong dollars and Renminbi[108] - The Group's credit risk is managed by trading only with recognized and creditworthy third parties, with ongoing monitoring of receivable balances[112] - The Group's exposure to interest rate risk is primarily related to floating interest rate bank borrowings, with plans to consider hedging if necessary[111] - As of 31 December 2021, the Group had cash and cash equivalents of HK$272.1 million, a slight decrease from HK$276.8 million in 2020[105] Leadership and Management - Wong Man Fai has over 30 years of experience in the insurance industry and serves as the chairman of the Remuneration Committee[141] - Lok Kung Chin Hardy has over 50 years of experience in building and engineering construction work and is a member of the Audit Committee[147] - Chiu Kar Kid, the general manager for Mainland China, has over 25 years of experience in engineering and management[149] - Cheung Chi Hang Alan, the group operating officer for sales, has over 20 years of experience in sales and marketing in the food service industry[150] - Hau Ka Wai oversees human resources and administration with over 20 years of experience in the field[155]

Revenue Performance - For the six months ended June 30, 2021, the Group recorded total revenue of HK$361.3 million, an increase of HK$71.6 million or 24.7% from HK$289.7 million for the same period in 2020[30]. - Revenue from the beverage solutions segment increased by HK$70.7 million or 25.1%, from HK$282.2 million to HK$352.9 million, primarily due to increased revenue from Mainland China[30]. - Revenue from the food products segment increased by HK$0.9 million or 12.0%, from HK$7.5 million to HK$8.4 million, attributed to growth in Hong Kong[30]. - The Group's revenue increased by HK$71.6 million, or 24.7%, from HK$289.7 million for the six months ended June 30, 2020, to HK$361.3 million for the six months ended June 30, 2021[45]. - Revenue for the six months ended June 30, 2021, was HK$361,288,000, representing an increase of 24.8% compared to HK$289,678,000 for the same period in 2020[116]. - Revenue from external customers in Hong Kong was HK$222,204,000, up from HK$206,743,000 in 2020, while revenue from Mainland China increased significantly to HK$135,164,000 from HK$78,696,000[185]. - Revenue from the sale of coffee, tea, and related products amounted to HK$272,011,000, while frozen processed food sales generated HK$7,454,000[196]. Profitability - The Group's profit for the period increased by HK$9.5 million, or 33.0%, from HK$28.8 million for the six months ended 30 June 2020 to HK$38.3 million for the six months ended 30 June 2021[66]. - Profit before tax increased to HK$48,473,000, a rise of 40.2% from HK$34,537,000 in the previous year[116]. - The Group's net profit margin increased from 10.0% for the six months ended 30 June 2020 to 10.6% for the six months ended 30 June 2021[66]. - The Group's gross profit increased by HK$27.3 million, or 23.0%, from HK$118.6 million for the six months ended June 30, 2020, to HK$145.9 million for the six months ended June 30, 2021[48]. - Gross profit for the same period was HK$145,879,000, with a gross margin of approximately 40.4%, up from HK$118,551,000 in 2020[116]. - The Group's adjusted profit before tax was HK$48,473,000, after accounting for interest income of HK$843,000 and corporate expenses of HK$7,304,000[172]. Expenses and Costs - The Group's cost of sales increased by HK$44.3 million, or 25.9%, from HK$171.1 million for the six months ended June 30, 2020, to HK$215.4 million for the six months ended June 30, 2021[47]. - Selling and distribution expenses increased by HK$9.0 million, or 18.8%, from HK$47.8 million for the six months ended June 30, 2020, to HK$56.8 million for the six months ended June 30, 2021[53]. - Administrative expenses increased by HK$2.4 million, or 6.5%, from HK$36.9 million for the six months ended June 30, 2020, to HK$39.3 million for the six months ended June 30, 2021[54]. - Other income and gains, net, decreased by HK$2.4 million, or 66.7%, from HK$3.6 million for the six months ended June 30, 2020, to HK$1.2 million for the six months ended June 30, 2021[52]. Financial Position - As at 30 June 2021, the Group's net current assets were HK$404.6 million, representing an increase of HK$3.4 million compared to HK$401.2 million as at 31 December 2020[75]. - The Group had total interest-bearing bank borrowings of HK$1.2 million as at 30 June 2021, down from HK$12.1 million as at 31 December 2020[74]. - The Group's gearing ratio decreased to 0.2% as at 30 June 2021, down from 2.2% as at 31 December 2020[85]. - The Group's cash and cash equivalents amounted to HK$264.8 million as at 30 June 2021, indicating a robust financial position[76]. - Total assets as of June 30, 2021, amounted to HK$700,734,000, compared to HK$684,740,000 as of December 31, 2020[182]. - Total liabilities as of June 30, 2021, were HK$136,550,000, a decrease from HK$132,237,000 as of December 31, 2020[182]. - Total current liabilities decreased to HK$116,443,000 from HK$121,485,000, reflecting a reduction of 4.3%[123]. - Total equity attributable to owners of the parent reached HK$564,184,000, compared to HK$552,503,000, marking an increase of 2.5%[123]. Strategic Initiatives - The Group plans to focus on developing its business-to-customer (B2C) platform and expanding online sales in the second half of 2021[36]. - The Group intends to expand product penetration to more online retail platforms to enhance its online sales strategy[36]. - The Group intends to increase the coverage of its distribution network in the Greater Bay Area, Shanghai, and other affluent cities in the second half of 2021[39]. - The Group is optimistic about its prospects in the second half of 2021 and beyond, leveraging growth opportunities and technology trends[41]. - The company plans to continue expanding its market presence in Mainland China, which has shown significant revenue growth[185]. Employee and Training - The Group employed 219 and 239 employees in Hong Kong and the PRC, respectively, as of June 30, 2021[99]. - The Group provided various training programs to employees, focusing on operational skills and professional knowledge, to support business strategy implementation[100]. Compliance and Reporting - The financial statements for the six months ended June 30, 2021, were prepared in accordance with HKAS 34, ensuring compliance with interim financial reporting standards[141]. - The company adopted revised HKFRSs for the first time, which may impact financial reporting related to interest rate benchmarks[150]. - The unaudited condensed consolidated financial statements should be read in conjunction with the Group's consolidated financial statements for the year ended December 31, 2020, highlighting the importance of comprehensive financial analysis[142].

Financial Performance - Tsit Wing International Holdings Limited reported a revenue of HK$1.2 billion for the fiscal year 2020, representing a year-on-year increase of 15%[4]. - The company achieved a net profit of HK$150 million, which is a 10% increase compared to the previous year[4]. - For the year ended December 31, 2020, the Group recorded total revenue from continuing operations of HK$638.5 million, representing a decrease of HK$146.5 million, or 18.7%, compared to HK$784.9 million in 2019[64]. - Revenue from the beverage solutions segment decreased by HK$142.3 million, or 18.6%, from HK$765.6 million in 2019 to HK$623.3 million in 2020[67]. - The gross profit from continuing operations for the year ended December 31, 2020, amounted to HK$263.1 million, a decrease of HK$46.7 million, or 15.1%, compared to HK$309.8 million in 2019[64]. - The gross profit margin increased from 39.5% in 2019 to 41.2% in 2020[64]. - Revenue generated in Hong Kong decreased by HK$80.3 million, or 16.1%, from HK$499.0 million in 2019 to HK$418.7 million in 2020[70]. - The Group's revenue decreased by HK$146.5 million, or 18.7%, from HK$785.0 million for the year ended December 31, 2019, to HK$638.5 million for the year ended December 31, 2020[88]. - The gross profit decreased by HK$46.7 million, or 15.1%, from HK$309.8 million for the year ended December 31, 2019, to HK$263.1 million for the year ended December 31, 2020[90]. Market Expansion and Strategy - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[4]. - The Group will focus on expanding its business in the Greater Bay Area, prioritizing Zhuhai, Zhongshan, Guangzhou, Shenzhen, and Dongguan[42]. - The Group's strategy includes expanding its food business sector, particularly in frozen processed food[41]. - The Group is actively expanding its B2C sales through various offline and online platforms to broaden its clientele base[52]. - The Group aims to strengthen online sales channels in response to changing consumer behavior due to COVID-19[79]. Product Development and Innovation - New product launches are expected to contribute an additional HK$300 million in revenue in the upcoming fiscal year[4]. - The Group launched a new product, "Hong Kong-style" soft drink Salty Lemon Soda, to expand its product portfolio[48]. - The meat processing line is expected to be operational by the first half of 2021, aiming to support the Group's omnichannel customers[41]. - The Group plans to launch a meat processing line by the second half of 2021 to enhance market penetration in food products[77]. Financial Management and Liquidity - The company reported a cash flow from operations of HK$250 million, ensuring strong liquidity for future investments[4]. - The Group's net current assets decreased by HK$1.9 million to HK$401.2 million as of December 31, 2020, primarily due to a decrease in cash and cash equivalents[118]. - As of December 31, 2020, the Group had cash and cash equivalents of HK$276.8 million, a decrease from HK$315.2 million in 2019[119]. - The Group's gearing ratio was 2.2% as of December 31, 2020, compared to 4.8% in 2019, reflecting a reduction in outstanding interest-bearing bank borrowings[121]. - The Group's liquidity management includes maintaining a cash pooling system to ensure adequate funds for short and long-term requirements[131]. Corporate Governance - The company is committed to high levels of corporate governance, emphasizing transparency, independence, accountability, responsibility, and fairness[180]. - The Board has established various committees to manage and oversee specific affairs of the company, delegating day-to-day management to executive Directors and senior management[182]. - The company complied with the code provisions set out in the CG Code for the year ended 31 December 2020, except for code provision A.2.1 regarding the separation of roles of chairman and chief executive[181]. - The Board is responsible for developing strategic directions and continuously monitoring the performance of general management[183]. - The company has a code of conduct and compliance manual applicable to employees and directors, which is regularly reviewed and monitored[192][193]. Human Resources and Staff Management - The Group has not implemented any lay-off plans and has hired more staff to support future business growth, aided by government subsidies[35]. - The company has a strong focus on corporate social responsibility and overall human resources strategy planning[173]. - The independent non-executive directors bring extensive experience in their respective fields, including over 40 years in accounting and auditing, and over 30 years in the insurance industry[157][159]. Future Outlook - The management emphasized a commitment to sustainability, aiming for a 50% reduction in carbon emissions by 2025[4]. - The Board is optimistic about the pandemic ending soon and is preparing for long-term business plans in Hong Kong and the PRC[43]. - The Chairman expresses confidence in the Group's prospects and ability to achieve exceptional milestones in the coming years[44].