Core Viewpoint - The collaboration between NVC Lighting and the China Aerospace Foundation marks a significant advancement in integrating aerospace technology into the civilian lighting industry, establishing a new era of aerospace lighting technology in China [3][5][7]. Group 1: Partnership and Recognition - NVC Lighting was officially designated as a "China Aerospace Industry Partner" by the China Aerospace Foundation on January 10, 2023, highlighting its strong research capabilities and industry position [1][3]. - The establishment of the "China Aerospace Lighting Technology Laboratory" on December 25, 2023, signifies the entry of civilian lighting into the aerospace technology era [3][5]. Group 2: Technological Advancements - The laboratory, co-founded by the China Aerospace Science and Technology Corporation's 510 Institute and NVC Lighting, aims to leverage aerospace technology to enhance lighting solutions for everyday life [5][7]. - The "Aerospace Healthy Light Technology," which focuses on human-centered design, aims to redefine health lighting standards by considering visual, physiological, and emotional effects [7][12]. Group 3: Product Development and Market Impact - NVC Lighting has initiated the development of three aerospace product lines: aerospace eye-care lamps, aerospace sleep aids, and aerospace lighting environments, translating space station lighting technology into civilian applications [8][10]. - The collaboration is expected to revolutionize civilian lighting products through three main cooperation directions: aerospace-grade lighting technology research, aerospace-grade precision standards formulation, and big data for aerospace lighting [8][13]. Group 4: Industry Transformation - The partnership is seen as a shift from price competition to technology competition within the lighting industry, promoting quality upgrades and technological innovation [10][13]. - The integration of aerospace standards with health lighting is anticipated to open new development pathways for the Chinese lighting industry, pushing it towards a "space age" [12][13].

Group 1: Economic Data and Consumer Trends - In May 2025, the total retail sales of consumer goods reached 41,326 billion yuan, with a year-on-year growth of 6.4%. Excluding automobiles, retail sales amounted to 37,316 billion yuan, growing by 7.0% [1] - From January to May 2025, the total retail sales of consumer goods were 203,171 billion yuan, reflecting a growth of 5.0% [1] - The "May Day" holiday saw a 6.4% increase in domestic tourism compared to the previous year, indicating a significant rise in consumer spending on travel and leisure [1] - Restaurant revenue in May 2025 grew by 5.9%, accelerating by 0.7 percentage points from the previous month [1] Group 2: Investment Opportunities in Consumer Sector - The fund "Qingguo Consumption Opportunity Mixed Initiation" (022223) aims to selectively invest in listed companies related to consumption themes while strictly controlling risks, targeting long-term stable asset appreciation [1] - As of June 13, 2025, the fund has achieved a growth of 6.55% since its establishment in September 2024, with a current scale of 0.58 billion yuan, nearly a 500% increase from its initial size [1] Group 3: Key Holdings and Market Insights - The top ten holdings of the fund include Tencent Holdings, CATL, Midea Group, and others, accounting for 32.09% of the total portfolio [2] - In May 2025, Li Auto delivered 40,856 vehicles, marking a year-on-year increase of 16.7% and a month-on-month increase of 20.4% [2] - The investment value of the consumer sector is highlighted as a core driver of economic transformation, shifting from investment-driven to consumption-driven growth [2] Group 4: Future Trends in Consumer Brands - The core competitiveness of new consumer brands is shifting from "traffic-driven" to "global supply chain + cultural output capability" [3] - The potential for growth in new consumer industries is significant due to the structural changes in the consumption market, with expectations for continued growth and a strong position in the global market [3]

当前，中国下沉市场照明行业正面临结构性变革机遇。最新数据显示，三四五线城市及县域照明需求增 速超18%。在此背景下，雷士照明于6月6日在惠州总部召开了"万家金选·光耀民生"为主题的五金流通渠 道全国经销商大会，重磅推出面向五金渠道所在下沉市场的「金选」系列产品。 雷士照明以行业品牌的雄厚实力和规模优势，发布"平价买大牌有保障，放心买"的民生普惠策略，直击 下沉市场"有价格无品质"的痛点；同步启动的「金选」百亿合伙人计划，为五金渠道经销商开启一条低 库存风险、高周转效率的百亿级新赛道。 01民生刚需 支撑这一商业模型的，是低风险、高周转的赋能体系。雷士照明为五金渠道经销商提供三重杠杆： 1、协同赋能：通过品牌势能背书、全品类标准化产品线支撑，以及数字化渠道管理系统的精准调控， 实现"高效流转"的供应链重构。 重构下沉市场照明生态 雷士照明「金选」系列精准锁定五金渠道，卡位"民生普惠"心智。 其核心竞争力并非单纯低价，而是通过供应链与渠道效率的双重革新，重构行业价值逻辑：依托其规模 化生产能力，「金选」系列大幅降低生产成本，在让利消费者的同时保障渠道利润；通过国家认证的光 效与耐用性标准化指标，实现"够亮不刺眼、 ...

在产品逻辑上，金选系列精准把握了五金渠道所在的下沉市场的照明刚需。针对下沉市场消费者对性价 比的追求，金选系列以"够亮不刺眼，实惠又耐用"为核心卖点，同时依托雷士照明的品牌影响力，为消 费者提供了大品牌带来的品质保障。这种品质与价格并重的策略，势必会让金选系列迅速成为五金渠道 下沉市场的香饽饽！ 金选系列：构建商业护城河 在新型城镇化建设的浪潮下，中国下沉市场正逐渐成为消费领域的新蓝海。据预测，到2025年，三至五 线城市、县镇及乡村地区将成为推动中国经济持续增长的重要力量。在这一背景下，照明行业也迎来了 重大的发展机遇。雷士照明，作为国内照明行业企业，正以「金选」系列产品为核心武器，瞄准下沉市 场的照明升级需求，携手五金流通渠道掀起一场产业革新。 下沉市场：照明产业的新蓝海 近年来，下沉市场的照明需求呈现出爆发式增长。据市场研究机构数据显示，下沉市场照明产品年增速 超过18%，远高于一、二线城市。 随着居民收入水平的提高和消费观念的升级，消费者对品质与品牌的双重追求日益明显。他们不再满足 于灯具仅仅能用，还要好用、耐用、价格亲民。这一变化，为照明行业带来了消费升级拐点。雷士照明 敏锐地捕捉到了这一市场趋势， ...

Core Insights - The growth focus of the Chinese lighting industry is gradually shifting from first and second-tier cities to lower-tier markets, as exemplified by NVC Lighting's launch of the "Jinxuan" product series aimed at these consumers [1][3]. Group 1: Product Strategy - The "Jinxuan" series emphasizes standardized quality at affordable prices, targeting essential lighting needs in lower-tier markets with a design principle of "bright, stable, durable, and reassuring" [3]. - NVC Lighting leverages its large-scale manufacturing advantages to ensure product reliability while effectively reducing costs through standardized production and strict quality control [3]. Group 2: Channel Strategy - NVC Lighting has introduced the "Jinxuan 100 Billion Partner Program" to support distributors in lower-tier markets, enabling low-risk entry and high-efficiency turnover [6]. - The strategy includes precise channel coverage, establishing regional warehousing centers, and providing customized promotional plans to enhance store performance and brand visibility [6][8]. Group 3: Ecosystem Strategy - The launch of the "Jinxuan" series not only extends NVC Lighting's product line but also optimizes the industry ecosystem by promoting a "brand-led" transformation in lower-tier markets [8]. - This transformation benefits consumers by providing affordable access to reputable brands, reduces operational risks for distributors, and offers a model for technological dissemination and quality upgrades in the lighting industry [8]. Group 4: Market Opportunity - The "Jinxuan" series represents a new path for distributors in the hardware channel, aligning with the industry's shift towards a "consumer-driven, brand-inclusive" era [8][10]. - NVC Lighting invites distributors to join this new venture focused on the consumer market, emphasizing trust in the brand and efficiency in channels [10].

Group 1 - The core viewpoint of the article highlights that the QuanGuo Consumer Opportunity Mixed Fund (022223) has achieved a return of 7.18% over the past six months, outperforming the benchmark growth rate of 5.12% and ranking in the top 20 among mixed funds [1] - As of March 31, 2025, the fund's size reached 0.58 billion yuan, with a growth of 32.5861 million yuan in the past three months, representing a growth rate of 126.87%, placing it in the top 10 among similar mixed funds [1] - The latest announcement indicates that the fund's share count was 0.55 billion shares as of March 31, 2025, with an increase of 29.0396 million shares in the last three months, reflecting a growth rate of 112.38% [1] Group 2 - The institutional holder proportion of the fund reached 9.30% according to the 2024 annual report data [1] - The fund manager, Sun Wei, has 14 years of experience in the securities industry and has held various positions in asset management and research departments [1] - Sun Wei has managed multiple funds since 2010, including the Dongfanghong New Power Flexible Allocation Mixed Fund and the Dongfanghong Rui Man Hong Kong and Shanghai Flexible Allocation Mixed Fund [1]

Strategic Shift and Business Focus - The company reported a strategic shift after the disposal of the majority equity of its lighting business in China in late 2019, focusing on international professional lighting and non-lighting products for smart life solutions[8]. - The company aims to provide efficient, energy-saving, and healthy lighting solutions across various sectors, including construction, transportation, and urban lighting[9]. - The company focuses on creating safe and healthy smart home and commercial office environments as part of its business transformation strategy[8]. - The international lighting business remains the core business, contributing the majority of revenue despite a challenging economic environment[25]. - The international lighting business will remain the core business of the company in 2025, with a focus on indoor air quality development to enhance future revenue sources[33]. Production and Innovation - The company has established production plants in Zhejiang, Shanghai, Zhuhai, and Vietnam, and has set up operation agencies in over 40 countries and regions worldwide[8]. - The company is committed to independent innovation in product research and development since its establishment in 1998[9]. - The company has overseas product development centers that meet European standards, enhancing its international competitiveness[8]. - The research department implemented a "synchronous development and concurrent engineering" model, significantly speeding up new product research and development efficiency[99]. - Major product categories underwent successful platformization and serialization, enhancing the competitiveness of the manufacturing system[99]. Financial Performance - Revenue for 2024 was reported at $236,603,000, a slight increase from $235,978,000 in 2023, but a decrease from $279,468,000 in 2022[16]. - Gross profit for 2024 increased to $74,651,000, resulting in a gross profit margin of 31.6%, up from 28.5% in 2023[16]. - The company reported a loss before income tax of $12,307,000 for 2024, translating to a loss margin of (5.2%) compared to a profit margin of 17.1% in 2023[16]. - Total equity attributable to owners decreased to $456,498,000 in 2024 from $483,771,000 in 2023[19]. - The current ratio for 2024 was 3.02, slightly down from 3.05 in 2023, indicating stable liquidity[19]. Market Strategy and Product Launches - In 2025, the company plans to launch over 60 new products under the ETI brand, including a linear light series[32]. - The company aims to enhance its brand awareness in international markets while promoting cost-effective and intelligent products[28]. - The Group will continue to optimize product lines through platformization, modularization, and standardization to maintain its strategic supplier position[30]. - The company intends to introduce new product lines, including AURA and linear lighting for data center applications, to maintain gross profit[47]. - The Group's strategy focuses on providing unmatched LED lighting solutions through a vertically integrated global supply chain and deep partnerships with independent distributors[99]. Regional Market Insights - The Japanese market is expected to see flat lighting demand in 2025, with fierce competition leading to price wars that compress profit margins[37]. - The company aims to optimize production processes to reduce costs and improve product competitiveness in the Japanese market[38]. - In the UK and Nordic markets, the company plans to enhance performance in Denmark and re-enter Norway, focusing on sales recovery and gross margin improvement[43]. - The project channel in the Vietnamese market performed strongly in 2024, securing considerable orders in outdoor landscape and street lighting[85]. - The Southeast Asian market strategy, focusing on dual-channel (project and distribution), yielded significant results throughout 2024[84]. Cost Management and Procurement Strategy - The Group is adjusting its procurement strategy to enhance product competitiveness by utilizing bidding and price negotiation processes, and expanding in-house production of components[63]. - The Group's procurement strategy was strengthened, and self-production processes were implemented to reduce costs and enhance competitiveness[138][139]. - The Group aims to improve product cost competitiveness by controlling raw material prices and optimizing inventory management[57]. - Selling and distribution costs decreased by 11.5% to US$30,843,000, with the percentage of revenue dropping from 14.8% to 13.0%[144]. - Administrative expenses decreased by 7.2% to US$33,939,000, with the percentage of administrative expenses to revenue declining from 15.5% to 14.3% due to lower depreciation and amortization[150][158]. Economic Environment and Challenges - In 2024, the global economic growth is expected to remain stable at 3.2%, with significant challenges faced by various industries due to the economic slowdown and high inflation[62]. - The overall economic environment has led to a decline in consumer market demand, increasing competitive pressure in the terminal market[138][139]. - The North American LED general lighting market showed overall weakness in 2024 due to reduced consumer spending amid a sluggish economy and real estate market[73]. - Rising prices due to yen depreciation have suppressed overall consumer spending in Japan, leading to a significant drop in demand for lighting products[76]. - The UK and European markets continued to be affected by slow economic growth and high interest rates, impacting overall market performance[77]. Brand Development and Marketing - The company launched a new brand strategy in 2020 with the mission "Life As You Wish," aligning its corporate vision with humanistic values[10]. - The Group completed brand upgrades and re-launches for multiple lighting sub-brands, enhancing brand recognition and loyalty to capture more market share[91]. - The brand image of "ETI" in North America was renewed, optimizing the logo and injecting a new interpretation of the brand concept[92]. - The Group will focus on brand promotion through targeted marketing and participation in key exhibitions to enhance product visibility in overseas markets[49]. - In 2025, the Group will continue to invest in brand building and marketing resources to enhance brand visibility and business opportunities[53].

Financial Performance - The group's revenue reached $236,603 thousand, an increase of 0.3% compared to the previous year[4] - The group's gross profit amounted to $74,651 thousand, reflecting a 10.9% increase year-over-year[4] - The group reported a loss of $15,355 thousand for the year, compared to a profit of $37,650 thousand in the previous year[4] - The loss attributable to the company's owners was $17,450 thousand, down from a profit of $35,713 thousand in the prior year[4] - Basic loss per share for the year was 3.44 cents, compared to earnings of 7.79 cents per share in the previous year[4] - The board recommended not to declare a final dividend for the year, consistent with the previous year[4] - Total revenue for the year ending December 31, 2024, is projected to be $236.6 million, with contributions from international brands ($31.986 million), domestic non-Raishi brands ($11.458 million), and international non-Raishi brands ($193.159 million) [17] - The revenue for the year ending December 31, 2023, was $235.978 million, showing a slight increase in overall revenue year-over-year [17] - The company reported a pre-tax profit of $40,436 thousand for the year ended December 31, 2023[24] - For the year ended December 31, 2023, total sales to external customers amounted to $235,978 thousand, with a gross profit of $67,318 thousand[24] Assets and Liabilities - Non-current assets totaled $312,182 thousand, a decrease from $350,596 thousand in the previous year[7] - Current assets increased to $249,238 thousand from $241,507 thousand year-over-year[7] - Total equity decreased to $467,930 thousand from $502,601 thousand in the previous year[8] - The company's borrowings due within one year increased to $2,603 thousand in 2024 from $1,699 thousand in 2023, reflecting higher short-term financing needs[49] - Trade receivables decreased slightly to $49,383 thousand in 2024 from $49,218 thousand in 2023, with a provision for credit losses of $530 thousand[40] - Trade payables increased to $40,854 thousand in 2024 from $39,445 thousand in 2023, with significant amounts due to third-party suppliers[45] Cost and Expenses - The cost of sales for the international Raishi brand was $18.756 million, while the domestic non-Raishi brand had a cost of $9.890 million, and the international non-Raishi brand incurred $133.306 million in costs [22] - The segment performance for the international Raishi brand was $13.230 million, for the domestic non-Raishi brand was $1.568 million, and for the international non-Raishi brand was $59.853 million, totaling $74.651 million [22] - The cost of sales as a percentage of revenue decreased from 71.5% to 68.4%, resulting in a gross margin increase from 28.5% to 31.6%[82] - Sales and distribution expenses decreased by 11.5% to $30,843 thousand, with the ratio of these expenses to revenue dropping from 14.8% to 13.0%[86] - Management expenses decreased by 7.2% to $33,939 thousand, with the ratio of management expenses to revenue declining from 15.5% to 14.3%[88] Strategic Initiatives - The company is currently evaluating the specific impact of IFRS 18 on its consolidated financial statements [14] - The company has not adopted any of the new IFRS standards that have been issued but are not yet effective, indicating a cautious approach to upcoming regulatory changes [12] - The company is focusing on product optimization and maintaining competitive advantages in pricing and specifications[55] - The company has committed to ISO standards for operational processes, enhancing quality and sustainability measures[58] - The company plans to launch over 60 new products under the ETI brand in 2025, with a focus on ensuring timely market entry[69] - The company aims to improve its indoor air quality business, which is expected to contribute to future revenue streams[67] - The company will continue to optimize its product lines through platformization, modularization, and standardization to maintain its strategic supplier position[68] Market and Economic Conditions - In 2024, the global economic growth is projected to stabilize at 3.2%, according to the IMF, amidst challenges such as inflation and geopolitical tensions[53] - The demand for LED lighting products in Japan is expected to decline to 90% of 2023 levels, reflecting a shrinking market[57] - In the UK and Nordic markets, economic growth is hindered by high interest rates and liquidity issues, impacting sales strategies[58] - The US LED general lighting market is showing signs of weakness due to reduced consumer spending amid a sluggish economy[55] - The company is expanding its market presence in Southeast Asia, targeting a 15% market share by the end of 2024[141] Employee and Governance - As of December 31, 2024, the total number of employees in the group was approximately 2,163, an increase from 1,967 employees as of December 31, 2023[120] - The company has established a remuneration committee to review the remuneration policies and structures for all directors and senior management, ensuring transparency in the remuneration process[128] - The strategic and planning committee has been set up to recommend and formulate the company's strategic development plans for board consideration[130] - The company has complied fully with the corporate governance code during the reporting year[125] Acquisitions and Investments - NVC Lighting Limited agreed to acquire 40% equity in NVC Lighting AB for an initial consideration of 582 thousand USD, with a maximum total consideration not exceeding approximately 9.7 million USD[107] - ETI Solid State Lighting Inc. completed the acquisition of certain land and buildings in Georgia for $15,250 thousand on August 28, 2024[108] - The company has entered into insurance contracts with China Export & Credit Insurance Corporation to cover 90% of the uncollectible international sales receivables, with a maximum compensation amount of $20,000 thousand[115] Future Outlook - The company provided a revenue guidance of $150 million for the next fiscal year, representing a 10% increase from the current year[141] - New product launches are expected to contribute an additional $30 million in revenue, with a projected growth rate of 25%[141] - The company plans to invest $20 million in new technology to enhance production efficiency over the next two years[141]

Financial Performance - Revenue for the first half of 2024 was $118.51 million, a slight decrease from $119.03 million in the same period in 2023[5] - Gross profit increased to $37.11 million in H1 2024, up from $32.69 million in H1 2023[5] - Profit before tax surged to $10.33 million in H1 2024, compared to $2.31 million in H1 2023[5] - Profit attributable to owners of the company rose to $7.66 million in H1 2024, up from $1.03 million in H1 2023[5] - Basic earnings per share increased to $1.51 cents in H1 2024, compared to $0.24 cents in H1 2023[5] - The Group's sales revenue for the period amounted to $118.51 million, representing a decrease of 0.4% compared to the corresponding period[45] - Sales revenue from the PRC decreased by 24.1%, while international sales increased by 1.0%[47] - Non-NVC brand sales revenue increased by 4.2%, reaching $96.635 million[47] - The cost of sales as a percentage of revenue decreased from 72.5% to 68.7%, leading to an increase in gross profit margin from 27.5% to 31.3%[49] - Gross profit for the period was $37.107 million, an increase of 13.5% compared to the corresponding period[52] - Gross profit margin from international sales of NVC brand products was 42.2%, while non-NVC brand products had a margin of 30.1%[52] - Raw materials and outsourced manufacturing costs accounted for 55.9% of the total cost of sales[49] - Labor costs decreased to 7.0% of revenue, down from 7.4% in the corresponding period[49] - Indirect costs decreased to 5.8% of revenue, compared to 8.3% in the corresponding period[49] - Other income increased by 7.9% due to a decrease in government grants and an increase in bank interest income[55] - Selling and distribution costs decreased by 18.3% to $15,717,000, representing 13.3% of revenue[57] - Administrative expenses decreased by 14.6% to $14,872,000, representing 12.5% of revenue[58] - Income tax increased to $1,475,000 due to higher current income tax provisions in countries like Vietnam[63] - Net profit for the period (including non-controlling interests) was $8,854,000[64] - Profit attributable to owners of the company was $7,660,000[64] - Profit attributable to non-controlling interests was $1,194,000[64] - Net cash flows from operating activities were ($267,000), while net cash flows from investing activities were $20,425,000[65] - Net increase in cash and cash equivalents was $11,190,000[65] - Cash and cash equivalents at the end of the period were $118,817,000[65] - Net current assets as of 30 June 2024 amounted to $160,531,000, with a current ratio of 3.27[68][69] - Total borrowings increased to $5,750,000 as of 30 June 2024, up from $1,699,000 at the end of 2023[71] - Capital expenditure during the period under review was $2,197,000, primarily due to increased costs of other intangible assets[73][74] - Capital commitments for property, plant, and equipment as of 30 June 2024 were $389,000, down from $971,000 at the end of 2023[76][81] - Net proceeds from the issuance of new shares amounted to approximately $8.9 million, with HK$69.7 million raised from the subscription agreement[79][84] - The company maintains sufficient working capital for current and future 12-month requirements, supported by projected cash inflows from operations[68][69] - Net proceeds from share placement and subscription will be used for overseas business development and expansion (90.4%, $8.0 million) and general working capital (9.6%, $0.9 million) within the next six months[86] - NVC Lighting acquired the remaining 40% interest in NVC Lighting AB for an initial consideration of SEK 6,000,000 ($582,000), with a maximum total consideration of SEK 100 million ($9.7 million)[88][89] - ETI Solid State agreed to acquire property in Georgia, USA, for $15,250,000, with the acquisition not yet completed as of the report approval date[90][93] - Trade receivables increased to $8,793,000 as of June 30, 2024, compared to $7,591,000 on December 31, 2023[95] - The company entered into one-year insurance contracts covering 90% of uncollectible receivables from international sales, with a maximum compensation of $20,000,000[100] - The company has no significant liquidity risk as reviewed by the board, ensuring balanced continuity and flexibility of funds through bank loans and other interest-bearing loans[104] - The company has insured 90% of unrecoverable international sales receivables for the period from July 1, 2024, to June 30, 2025, with a maximum coverage of $20 million[105] - The company’s total number of employees increased to 2,041 as of June 30, 2024, up from 1,967 at the end of 2023[108] - The board does not recommend paying any interim dividend for the six months ended June 30, 2024[107] - The company’s logo was changed effective July 30, 2024, with no other significant events reported since June 30, 2024[106] - Directors’ interests in the company’s shares include Ye Yong with 5.40% and Wang Keven Dun with 16.67% as of June 30, 2024[113] - The company’s cash and short-term deposits are primarily held in registered banks in China, Hong Kong, and Singapore[105] - The company continuously improves its internal staff training system to enhance employees’ professional skills[108] - The company’s trade and bill receivables, guarantees, and other receivables reflect its maximum credit risk exposure[105] - The company’s issued shares as of June 30, 2024, totaled 507,273,677[113] - Elec-Tech International (H.K.) Company Limited holds 74,034,600 ordinary shares, representing 14.59% of the total issued shares[117] - Rising Wealth Limited holds 63,840,000 ordinary shares, representing 12.58% of the total issued shares[117] - Harbour Faith Enterprises Limited holds 41,491,100 ordinary shares, representing 8.18% of the total issued shares[117] - Canopy Capital Limited holds 84,545,613 ordinary shares, representing 16.67% of the total issued shares[117] - SU Lixin holds 64,935,064 ordinary shares, representing 12.80% of the total issued shares[117] - The total number of issued shares as of 30 June 2024 is 507,273,677[118] - ETIC is deemed to be interested in 74,034,600 ordinary shares due to its ownership of Elec-Tech International (H.K.) Company Limited[118] - ZHAO Yu is deemed to be interested in 63,840,000 ordinary shares due to her ownership of Rising Wealth Limited[118] - CHAN Sin Wa Carrie is deemed to be interested in 41,491,100 ordinary shares due to her ownership of Harbour Faith Enterprises Limited[118] - WANG Keven Dun is deemed to be interested in 84,545,613 ordinary shares through his ownership of Harker Hall Capital Ltd.[118] - The total number of Shares available for grant under the RSU Scheme and other share-based incentive schemes was 211,557,782, representing 5% of the 4,231,155,649 issued Shares as of the Adoption Date[120] - The RSU Scheme expired in February 2024, and as of 30 June 2024, the total number of Shares available for grant in connection with the RSU Scheme was nil[120] - No RSUs were granted to participants under the RSU Scheme since the Adoption Date, resulting in no unvested, cancelled, or lapsed RSUs as of the Adoption Date and up to the end of the Period under Review[120] - The Company did not purchase, sell, or redeem any listed securities during the Period under Review, and as of 30 June 2024, the Company did not hold any treasury shares[120] - The Board confirmed that the Company fully complied with the principles and code provisions of the CG Code during the Period under Review[122] - The Company’s Audit Committee reviewed and discussed the interim results for the Period under Review and the report, with Mr. LEE Kong Wai, Conway serving as the chairman[123] - The Remuneration Committee, chaired by Mr. LEE Kong Wai, Conway, reviewed and made recommendations on remuneration packages for executive Directors and senior management[125] - The Nomination Committee consists of one executive Director and two independent non-executive Directors, with Mr. WANG Donglei as the chairman[126] - The Remuneration Committee is composed of one executive Director and two independent non-executive Directors, with Mr. LEE Kong Wai as the chairman[127] - The Strategy and Planning Committee includes four executive Directors and one independent non-executive Director, with Mr. WANG Donglei as the chairman[129] - No changes in the Board and Directors' information since 1 January 2024, as per Listing Rules 13.51B(1)[131] - Deloitte reviewed the condensed consolidated financial statements for the six-month period ended 30 June 2024, in compliance with IAS 34[133] - The review of financial statements was conducted in accordance with Hong Kong Standard on Review Engagements 2410[137] - Deloitte concluded that the condensed consolidated financial statements were prepared in accordance with IAS 34[139] - Revenue for the six months ended 30 June 2024 was $118.51 million, a slight decrease from $119.03 million in the same period in 2023[141] - Gross profit increased to $37.11 million in 2024 from $32.69 million in 2023, reflecting improved cost management[141] - Profit before tax significantly rose to $10.33 million in 2024 compared to $2.31 million in 2023[141] - Profit for the period attributable to owners of the company was $7.66 million in 2024, up from $1.03 million in 2023[141] - Basic earnings per share increased to 1.51 US cents in 2024 from 0.24 US cents in 2023[141] - Total comprehensive income for the period was $8.65 million in 2024, a significant improvement from a loss of $9.55 million in 2023[142] - Non-current assets slightly decreased to $349.09 million in 2024 from $350.60 million in 2023[144] - Current assets decreased to $231.30 million in 2024 from $241.51 million in 2023, primarily due to a reduction in inventories[144] - Net current assets stood at $160.53 million in 2024, slightly down from $162.33 million in 2023[145] - Total equity decreased marginally to $499.19 million in 2024 from $502.60 million in 2023[145] - Total equity increased to $499,190 thousand as of June 30, 2024, up from $502,601 thousand at the beginning of the year[146] - Retained profits grew to $183,530 thousand, reflecting an increase of $7,660 thousand during the period[146] - Foreign currency translation reserve decreased to $(54,709) thousand, impacted by exchange differences[146] - Non-controlling interests decreased to $9,685 thousand, down from $18,830 thousand at the start of the year[146] - The company acquired an additional 40% interest in a non-wholly owned subsidiary for $582,000 plus a contingent consideration of $1,139,000[148] - The acquisition resulted in a $2,135,000 adjustment to the "other reserve" due to the difference between the consideration and the net liabilities[148] - Total comprehensive income for the period was $7,869 thousand, driven by fair value gains and exchange differences[146] - Dividends paid to non-controlling interests amounted to $10,341 thousand, reducing the total equity[146] - The statutory reserve increased to $19,249 thousand, reflecting a transfer of $594 thousand during the period[148] - Share premium remained stable at $345,032 thousand, with no changes reported during the period[146] - Cash generated from operations decreased to $930,000 from $10,758,000 in the previous year[151] - Net cash used in operating activities was $267,000 compared to $9,897,000 generated in the prior year[151] - Net cash from investing activities was $20,425,000, down from $27,715,000 in the previous year[151] - Net cash used in financing activities was $8,968,000, a decrease from $37,924,000 in the prior year[151] - Cash and cash equivalents at the end of the period increased to $118,817,000 from $84,265,000 in the previous year[151] - The company applied amendments to IFRS Standards, including IFRS 16 and IAS 1, effective from January 1, 2024[155] - The condensed consolidated financial statements were prepared in accordance with International Accounting Standard 34 and the Hong Kong Stock Exchange listing rules[153] - The financial statements were prepared on a historical cost basis, except for certain financial instruments measured at fair value[154] - Changes in the company's interests in subsidiaries without losing control are accounted for as equity transactions[159] - The application of amendments to IFRS Standards had no material impact on the company's financial positions and performance[159] - Total revenue for the six months ended 30 June 2024 was $118.51 million, with $16.81 million from International NVC brand, $5.06 million from Domestic non-NVC brand, and $96.64 million from International non-NVC brand[160] - Revenue from the United States market was $77.53 million, contributing the largest share among geographical markets[160] - Segment results for the six months ended 30 June 2024 were $37.11 million, with $7.09 million from International NVC brand, $0.95 million from Domestic non-NVC brand, and $29.07 million from International non-NVC brand[164] - Profit before tax for the six months ended 30 June 2024 was $10.33 million, including $3.54 million from other income and $4.35 million from share of results of associates[164] - Other income for the six months ended 30 June 2024 was $3.54 million, including $1.25 million from bank interest income and $0.79 million from trademark license fee and rental income[170] - Total income tax expense for the six months ended 30 June 2024 was $1,475 thousand, compared to $483 thousand in the same period in 2023[172] - Hong Kong Profits Tax for the six months ended 30 June 2024 was $273 thousand, up from $165 thousand in 2023[172] - PRC Enterprise Income Tax for the six months ended 30 June 2024 was $276 thousand, compared to $322 thousand in 2023[172] - Total amortization and depreciation for the six months ended 30 June 2024 was $6,363 thousand, down from $8,807 thousand in 2023[174] - Total staff costs for the six months ended 30 June 2024 were $19,027 thousand, compared to $22,859 thousand in 2023[174] - Research and development costs for the six months ended 30 June 2024 were $81,984 thousand, down from $86,855 thousand in 2023[174] - Profit attributable to owners of the company for the six months ended 30 June 2024 was $7,660 thousand, compared to $1,034 thousand in 2023[175] - Weighted average number of ordinary shares for the six months ended 30 June 2024 was 507,274 thousand, up from 422,728 thousand in 2023[176] - The group disposed of property, plant, and equipment with a carrying amount of $54 thousand, resulting in a gain on disposal of $163 thousand for the six months ended 30 June 2024[180] - The group acquired property, plant, and equipment of approximately $425 thousand for the six months ended 30 June 2024[180] - The Group's interests in associates as of June 30, 2024, amounted to $159,318 thousand, compared to $156,478 thousand as of December 31, 2023[184] - Impairment losses recognized for interests in associates were $15,511 thousand as of June 30, 2024, up from $11,789 thousand as of December 31, 2023[184] - Trade receivables net of allowance for credit losses increased to $53,287 thousand as of June 30, 2024, from $49,218 thousand as of December 31, 2023[194] - Bills receivables decreased to $169 thousand as of June 30, 2024, from $246 thousand as of December 31, 2023[194] - Trade receivables within 3 months increased to $49,590 thousand as of June 30, 2024, from $42,658 thousand as of December 31, 2023[197] - Trade receivables over 2 years decreased to $138 thousand as of June 30, 2024, from $490 thousand as of December 31, 2023[197] - The Group holds bills receivables totaling $169 thousand as of June 30, 2024, for future settlement of trade receivables[198] - Trade receivables pledged as security for the Group's borrowings amounted to $8,793 thousand as of June 30, 2024, up from $7,591 thousand as of December 31, 2023[198] Market and Economic Conditions - The global economy is expected to grow at a stable but slow rate of

Financial Performance - The group's revenue for the six months ended June 30, 2024, reached $118,510 thousand, a decrease of 0.4% compared to the same period last year[1]. - Gross profit for the group was $37,107 thousand, an increase of 13.5% year-on-year[1]. - Profit before tax amounted to $10,329 thousand, significantly up from $2,306 thousand in the same period last year[1]. - Profit attributable to owners of the company was $7,660 thousand, compared to $1,034 thousand in the previous year[1]. - Basic earnings per share for the period was 1.51 cents, up from 0.24 cents in the same period last year[1]. - Other income for the six months ended June 30, 2024, totaled $3.54 million, up from $3.28 million in the previous year[18]. - The company reported a pre-tax profit of $10.33 million for the six months ended June 30, 2024, compared to $2.31 million in the same period of 2023[13][14]. - The company recognized a total of $1.66 million in tax expenses for the six months ended June 30, 2024, compared to $0.92 million in the same period of 2023[17]. - The company’s financial expenses for the reporting period were $0.39 million, reflecting a decrease from the previous year[14]. - The company reported a profit attributable to shareholders of $7,660 thousand for the six months ended June 30, 2024, compared to $1,034 thousand for the same period in 2023, representing a significant increase[22]. - Net profit for the period, including non-controlling interests, was $8,854 thousand, while profit attributable to the owners of the company was $7,660 thousand[59]. Assets and Liabilities - Total assets less current liabilities as of June 30, 2024, were $509,620 thousand, slightly down from $512,925 thousand at the end of 2023[4]. - Cash and cash equivalents increased to $118,817 thousand from $108,273 thousand at the end of 2023[4]. - Non-current assets totaled $349,089 thousand, a slight decrease from $350,596 thousand at the end of 2023[4]. - The net asset value as of June 30, 2024, was $499,190 thousand, down from $502,601 thousand at the end of 2023[5]. - Current assets totaled $231,303 thousand, while current liabilities were $70,772 thousand, resulting in net current assets of $160,531 thousand[63]. - The liquidity ratio improved to 3.27 from 3.05 year-on-year, indicating sufficient working capital to meet current and future funding needs[64]. Sales and Market Performance - The international Raishi brand generated $16.81 million in sales, while domestic non-Raishi brand sales amounted to $5.06 million, and international non-Raishi brand sales reached $96.64 million[11][12]. - The overall segment performance showed a profit of $37.11 million for the six months ended June 30, 2024, compared to $32.69 million for the same period in 2023, indicating a year-over-year increase[13][15]. - The company’s performance in the international non-Raishi brand segment showed a profit of $29.07 million for the six months ended June 30, 2024, compared to $20.59 million in the same period of 2023[13][15]. - The company’s total sales to external customers in the international market were $96.64 million, representing a significant portion of the overall revenue[11][12]. - Sales revenue from China decreased by 24.1% to $5,063 thousand, while international sales increased by 1.0%[51]. Cost Management - Total employee costs decreased to $19,027 thousand in the first half of 2024 from $22,859 thousand in the same period of 2023, reflecting a reduction of approximately 16%[21]. - The company recognized a total depreciation and amortization expense of $6,363 thousand for the six months ended June 30, 2024, down from $8,807 thousand in the same period of 2023, indicating a decrease of about 28%[21]. - The cost of inventory recognized as an expense was $81,984 thousand for the six months ended June 30, 2024, compared to $86,855 thousand for the same period in 2023, reflecting a decrease of approximately 6%[21]. - The cost of sales decreased from 72.5% to 68.7% of revenue, resulting in a gross margin increase from 27.5% to 31.3%[52]. - The group is implementing cost control measures in procurement, including local sourcing in Vietnam to reduce logistics costs[48]. Strategic Initiatives - The company has implemented cost-reduction strategies, including local procurement in Vietnam and enhancing in-house production capabilities to lower logistics and packaging costs[32]. - The company plans to launch over 100 new lighting products in 2024, focusing on platformization, modularization, and standardization to enhance manufacturing competitiveness[40]. - The company is focusing on contractor/project markets rather than just wholesale buyers to alleviate pricing pressure from soft overall demand[37]. - The company aims to strengthen its brand presence in international markets, particularly in the Middle East and Southeast Asia, while optimizing its management structure[41]. - The company has introduced a series of new products in the Japanese market to boost sales performance amid declining demand[35]. Market Outlook - In the first half of 2024, the global economic growth is projected at 3.2%, indicating a stable but slow recovery amid challenges such as high interest rates and geopolitical tensions[32]. - The company expects market demand to increase in the second half of 2024, with a series of new products set to launch in September to boost sales[43]. - The company anticipates a recovery in market demand in the second half of 2024, driven by government measures to alleviate household spending pressures in Japan[42]. - The Japanese market's GDP growth rate for the first half of 2024 is only 0.9%, with LED lighting product demand down to 90% of 2023 levels[35]. - The UK and European markets continue to experience demand slowdown due to significant interest rate hikes in 2023, impacting the residential real estate sector[36]. Corporate Governance - The company operates under the regulations of the Hong Kong Stock Exchange and adheres to the Corporate Governance Code[93]. - The audit committee has reviewed and discussed the interim performance during the review period[87]. - The company has established a Compensation Committee to review the remuneration of individual executive directors and senior management, ensuring transparency in the compensation policy[88]. - The Nomination Committee is responsible for reviewing the board structure and developing procedures for the nomination and appointment of directors[89]. - The Strategic and Planning Committee advises on the company's strategic development plans for board consideration[90]. Employee and Community Engagement - The total number of employees increased to approximately 2,041 as of June 30, 2024, up from 1,967 as of December 31, 2023, reflecting a growth of about 3.8%[83]. - The company expresses gratitude to management and employees for their contributions during the review period[95].