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].

Financial Performance - The company reported a revenue of approximately $500 million for the fiscal year ended December 31, 2023, representing a 10% increase compared to the previous year[19] - Revenue for 2023 was $235,978,000, a decrease of 15.5% from $279,468,000 in 2022[20] - Gross profit margin improved to 35%, up from 32% in the prior year, indicating better cost management and pricing strategies[19] - Gross profit increased to $67,318,000, resulting in a gross profit margin of 28.5%, up from 22.8% in 2022[20] - Profit before income tax was $40,436,000, with a profit margin of 17.1%, compared to a loss of $3,425,000 in 2022[20] - Net profit from continuing operations was $37,650,000, translating to a net profit margin of 16.0%, compared to a loss of $5,547,000 in 2022[20] - The company has set a performance guidance of 12% revenue growth for the next fiscal year[19] Market Expansion and Product Development - User data showed a 15% increase in active users, reaching 1.2 million by the end of 2023[19] - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025[19] - New product launches in the smart home segment are expected to contribute an additional $50 million in revenue in 2024[19] - A strategic partnership with a leading tech firm is anticipated to accelerate product development and market entry, expected to yield a 30% increase in sales by 2025[19] - The company has invested $10 million in R&D for innovative lighting solutions, aiming to enhance energy efficiency by 25%[19] Asset and Equity Management - Total assets less current liabilities increased to $512,925,000 from $482,382,000 in 2022[25] - Current assets decreased to $241,507,000, while current liabilities reduced to $79,178,000, resulting in a current ratio of 3.05, up from 2.50 in 2022[25] - Non-current assets rose to $350,596,000, compared to $322,945,000 in 2022[25] - Total equity increased to $502,601,000 from $471,408,000 in 2022[25] - Equity attributable to owners of the Company was $483,771,000, up from $454,492,000 in 2022[25] - The company reported a significant reduction in current liabilities, down 25.7% from $106,640,000 in 2022[25] Employee and Governance Matters - As of December 31, 2023, the Group had approximately 1,967 employees, a decrease from 2,246 employees as of December 31, 2022[112] - The Group regularly reviews employee remuneration and benefits according to market practices and individual performance[112] - The Group's remuneration policy compensates employees based on performance, qualifications, and operational results[112] - The Group operates a Mandatory Provident Fund Scheme for all qualifying employees in Hong Kong, with contributions required from both the employer and employees[132] - The Company has fully complied with the principles and codes provisions set out in the Corporate Governance Code during the Reporting Period[165] Connected Transactions - The Subscription constituted a connected transaction and was subject to reporting and independent shareholder approval requirements under Chapter 14A of the Listing Rules[52] - The auditor confirmed that the continuing connected transactions disclosed by the Group comply with Rule 14A.56 of the Listing Rules[68] - The Company confirmed that all continuing connected transactions were conducted on normal commercial terms or better, ensuring compliance with the overall interests of shareholders[95] - The independent non-executive Directors reviewed the continuing connected transactions and confirmed they were in accordance with the relevant agreements governing these transactions[99] Economic Outlook and Industry Trends - The global economic growth is expected to slow to 2.7% in 2023 according to the latest World Economic Outlook published by the IMF[197] - The international lighting business remains the core business of the company, contributing the majority of revenue despite a challenging economic environment[199] - The company implemented multiple reforms, including new product design and procurement strategy evaluation, to enhance product competitiveness in terms of price and functionality[199]

Financial Performance - The group's revenue reached $235,978 thousand, a decrease of 15.6% compared to the previous year[3] - The group's gross profit was $67,318 thousand, an increase of 5.4% year-on-year[3] - The group's profit for the year was $37,650 thousand, compared to a loss of $5,547 thousand in the previous year[3] - Profit attributable to the company's owners was $35,713 thousand, compared to a loss of $9,785 thousand in the previous year[3] - Basic earnings per share attributable to the company's owners was 7.79 cents, compared to a loss of 2.31 cents in the previous year[3] - Total revenue for the year ended December 31, 2023, was $235,978 thousand, a decrease from $279,468 thousand in the previous year, representing a decline of approximately 15.5%[22] - The pre-tax profit for the company was $40,436 thousand for the year ended December 31, 2023, compared to a pre-tax loss of $3,425 thousand in the previous year[29] - The net profit for 2023 was $35.713 million, a significant recovery from a loss of $9.785 million in 2022[48] - The company reported a foreign exchange gain of $3.469 million in 2023, compared to a loss of $3.197 million in 2022[40] - The company recognized a total of $67,318 thousand in segment performance for the year ended December 31, 2023, compared to $63,850 thousand in the previous year, indicating an increase of approximately 7.3%[27] Assets and Liabilities - Total assets less current liabilities amounted to $512,925 thousand as of December 31, 2023[7] - Non-current assets totaled $350,596 thousand, with property, plant, and equipment valued at $50,195 thousand[6] - Current liabilities were $79,178 thousand, a decrease from $106,640 thousand in the previous year[7] - The net asset value increased to $502,601 thousand from $471,408 thousand in the previous year[7] - As of December 31, 2023, the company's current assets totaled $241,507 thousand, a decrease from $266,077 thousand in 2022, with cash and cash equivalents increasing to $108,273 thousand from $85,057 thousand[120] - The company's current liabilities decreased significantly to $79,178 thousand in 2023 from $106,640 thousand in 2022, resulting in a net current asset increase to $162,329 thousand from $159,437 thousand[120] Dividends and Shareholder Information - The board recommended not to declare a final dividend, consistent with the previous year[3] - The company did not declare any dividends for the years ended December 31, 2023, and December 31, 2022[49] - The weighted average number of ordinary shares for calculating basic earnings per share increased to 458.168 million in 2023 from 422.728 million in 2022[48] - The company issued a total of 845,456,130 new shares at a subscription price of HKD 0.083, representing a premium of approximately 16.9% over the last closing price of HKD 0.071 on July 7, 2023[143] - The net proceeds from the subscription amount to approximately HKD 69.7 million after deducting all professional fees and related expenses, with a net price per share of approximately HKD 0.082[145] - The company completed a share consolidation on October 27, 2023, resulting in a total issued share count of 507,273,677 shares[146] Operational Highlights - The company has adopted the revised International Financial Reporting Standards (IFRS) effective from January 1, 2023, including IFRS 17 related to insurance contracts[11] - The company has not early adopted any new IFRS standards that have been issued but are not yet effective, indicating no significant impact on the consolidated financial statements expected in the foreseeable future[15] - The company recognized an impairment loss of $24,229 thousand related to its equity in joint ventures for the year ended December 31, 2023[32] - The company has a credit period of 30 to 90 days post-delivery, with customers having the right to replace defective products within 30 days[23] - The company’s revenue recognition occurs when control of goods transfers upon delivery to a specified location[23] Market and Strategic Initiatives - The international lighting business remains the core revenue driver for the company, contributing significantly despite challenging economic conditions[68] - The company has implemented multiple reforms, including new product development and procurement strategy adjustments, to enhance product competitiveness[68] - In North America, the company successfully reduced stagnant inventory and launched new home lighting products, gaining traction in major home improvement retailers[71] - The company is shifting its business model towards project participation in overseas markets, resulting in improved gross margins[77] - The company is launching a new lighting brand "AURA" to enrich its brand matrix and enhance market presence[80] - The group has established a three-year business plan for Southeast Asia, targeting key markets such as Singapore, Vietnam, Pakistan, and Sri Lanka[89] Cost Management and Efficiency - The cost of sales as a percentage of revenue decreased from 77.2% to 71.5%, resulting in a gross profit margin increase from 22.8% to 28.5%[98][102] - The company implemented measures to mitigate the impact of high commodity and shipping costs, including shifting popular product lines to factories in Vietnam and expanding operations in the Nordic market[102] - Selling and distribution expenses decreased by 12.8% to $34,851 thousand, while the proportion of these expenses to revenue increased from 14.3% to 14.8%[107] - Management expenses increased by 9.4% to $36,572 thousand, primarily due to the normalization of business activities post-COVID-19, with the expense ratio rising from 12.0% to 15.5%[108] - The group will continue to focus on cost control in the supply chain, particularly in raw material price management[93] Future Outlook - The board of directors remains optimistic about future growth, emphasizing a commitment to shareholder value[167] - The company provided guidance for the next fiscal year, projecting a revenue growth of B%[167] - New product launches are expected to contribute an additional C million in revenue, with a focus on innovative LED technology[167] - The company is investing G million in R&D for new technologies, aiming to improve product efficiency and sustainability[167]

Financial Performance - Revenue for the first half of 2023 was US$119,034,000, a decrease of 25.8% compared to US$160,374,000 in the same period of 2022[5] - Gross profit for the first half of 2023 was US$32,690,000, representing a decrease of 12.8% from US$37,498,000 in the same period of 2022[5] - Profit before tax increased to US$2,306,000 in the first half of 2023, compared to US$1,520,000 in the same period of 2022[5] - Profit for the period attributable to owners of the Company was US$1,034,000, a significant improvement from a loss of US$2,264,000 in the same period of 2022[5] - Basic earnings per share attributable to owners of the Company improved to US$0.02 cents from a loss of US$(0.05) cents in the same period of 2022[5] - The Group's sales revenue for the period amounted to US$119,034,000, representing a decrease of 25.8% compared to the corresponding period[65] - Sales revenue from the PRC decreased by 4.9%, while international sales decreased by 26.7% due to weak demand and inflation issues[68] - The cost of sales as a percentage of revenue decreased from 76.6% to 72.5%, resulting in a gross profit margin increase from 23.4% to 27.5%[74] - Gross profit for the Group was US$32,690,000, a decrease of 12.8% compared to the corresponding period, with a gross profit margin of 27.5%[77] - Selling and distribution costs were US$19,230,000, a decrease of 5.8%, but as a percentage of revenue increased from 12.7% to 16.2%[86] - Administrative expenses increased by 5.2% to US$17,406,000, with the percentage of revenue rising from 10.3% to 14.6%[88] - Net profit for the period was US$1,823,000, with profit attributable to owners of the company at US$1,034,000[96][97] Market Conditions - The global economic growth is expected to slow to 2.7% in 2023, impacting market conditions[6] - In the first half of 2023, the United States GDP growth was positive quarter-on-quarter, with the growth rate further increasing despite high inflation at 5.3% in May 2023[14] - Sales performance in the North American market in the first half of 2023 was broadly in line with expectations, but the performance of wholesale agents needed improvement[14] - The Japanese market faced high inflation and a sluggish manufacturing index, leading to increased retail prices by lighting brand owners to maintain profit margins[15] - Retail channel sales in Japan exceeded planned targets due to the launch of new lighting products in January and March 2023[15] - The Southeast Asian market's development was affected by local economic conditions, with a shift towards participating in engineering projects leading to increased gross profit margins[21] Strategic Initiatives - The Group is focusing on reducing product costs to enhance competitiveness amid a declining consumer market and increased competitive pressure[7] - A series of new lighting products were launched to meet customer needs and strengthen sales foundations[8] - The Group is preparing for the expansion of its non-lighting business in the global market[8] - The Group's strategy in the Middle East and North Africa focuses on national infrastructure construction and the expansion of "One Belt, One Road" projects[26] - The Group successfully developed non-lighting products, including air ion generators and air purifiers, enhancing user experience by addressing actual and potential needs[28] - The UK and Nordic markets improved profitability through cost synergy and a focus on high-margin bespoke lighting products[20] - The Group's brand strategy emphasizes values such as "Customer Obsession" and "Practical Innovation," aiming to create a richer brand image[27] - The Group held a distributor conference in Dubai in March 2023 to introduce adjustments in product strategy and brand positioning[26] - The Group plans to launch more Indoor Air Quality (IAQ) products in overseas markets in the second half of 2023, leveraging the brand reputation of D&H[32] - The Group aims to enhance its gross profit margin by introducing high-value products to the wholesale market and focusing on lighting project development[40] - The Group will continue to optimize its management structure and integrate overseas business, particularly in the Middle East and Southeast Asia markets[35] - The Group has initiated packaging design and retail marketing plans for the ETI brand to increase visibility and brand recognition in North America[34] - The Group will not engage in pricing competition despite competitors launching price wars, maintaining a focus on technological innovation and quality[41] - The Group aims to improve the conversion rate of project reserves in overseas markets, focusing on key projects with a high input-to-output ratio[44] - In the second half of the year, the Group will adjust its product strategy in the Middle East and North Africa, returning to the NVC Lighting brand and targeting the mid-to-high-end consumer market[45] - The Group plans to enhance supplier management by controlling costs, quality, and delivery, while promoting localized procurement in Vietnam to reduce raw material inventory[52] - The Group has established sales networks in major regions including North America, Europe, and Southeast Asia, providing customized and differentiated products[55] - New product launches include the SMD6 Surface Mount Disk Light and various downlights, aimed at enhancing energy efficiency and customer satisfaction[57][59] - The Group will leverage generative AI to improve performance marketing, focusing on high-quality content generation for social media[50] - The Group is committed to achieving carbon neutrality and promoting green lighting applications to support low-carbon policies[51] - The Group will expand its project reserves through targeted customer groups and explore new distribution channels in Southeast Asia[44][46] - The Group plans to host various industry trade shows and conferences to boost brand equity in the global lighting industry[50] Operational Efficiency - The Group's ERP system transformation aims to enhance operational efficiency and facilitate global resource sharing among subsidiaries[52] - Cash flows from operating activities generated US$9,897,000, a significant improvement from a cash outflow of US$23,773,000 in the previous year[110] - The Group's inventories decreased to US$48,455,000 from US$64,305,000, indicating improved inventory management[116] - The Group's pledged bank deposits decreased significantly from US$53,567,000 to US$23,708,000[116] - As of June 30, 2023, total borrowings amounted to US$3,762,000, a significant decrease from US$39,034,000 as of December 31, 2022[122] - The Group's capital expenditure during the Period under Review was US$3,113,000, primarily due to increased costs in machinery, furniture, and intangible assets[123] - Capital commitments for the purchase of property, plant, and equipment as of June 30, 2023, were US$1,048,000, up from US$845,000 as of December 31, 2022[127] - Trade receivables increased to US$13,159,000 as of June 30, 2023, compared to US$8,247,000 as of December 31, 2022[141] - The Group's liquidity risk is deemed low, with no significant liquidity issues identified by the Directors[148] - The Group's borrowings are secured by pledged assets, with total pledged bank deposits amounting to US$23,708,000 as of June 30, 2023[141] Risk Management - The Group's risk management strategy includes entering forward currency contracts to hedge against foreign currency risks, mitigating potential negative impacts on operations[143] - The Board believes that the Group's risk management and internal control systems are well-established and effective after receiving management confirmation[198] - The Company has established an audit and risk control department to regularly monitor and assess the internal risk and control system of each department[197] Shareholder Information - The company entered into a subscription agreement on July 9, 2023, to issue 845,456,130 new shares at a price of HK$0.083 per share, totaling HK$70,172,858.79, representing approximately 20.0% of the total issued shares before the subscription and 16.7% after[155] - As of June 30, 2023, the company had approximately 2,123 employees, a decrease from 2,246 employees as of December 31, 2022[163] - The company does not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[162] - The company adopted USD as the presentation currency for its financial statements to provide a more accurate picture of its financial performance, as most transactions are denominated in USD[161] - The company has taken out insurance with China Export Credit Insurance Corporation to cover 90% of the uncollectible international sales receivables, with a maximum compensation amount of US$20 million (approximately RMB 144.5 million) for the period from July 1, 2023, to June 30, 2024[152] - The company plans to renew the insurance contracts upon expiration to mitigate credit risk associated with business expansion[152] - The share subscription was completed on August 25, 2023, after all conditions were fulfilled and approved by independent shareholders[156] - The company has implemented a training management system to enhance employee skills, combining classroom lectures with practical operations[163] - The company has no significant credit risk exposure beyond the financial assets disclosed in the financial statements[152] - The company’s management believes that the change in presentation currency will better serve shareholders and potential investors[161] - As of June 30, 2023, the total number of issued shares is 4,227,280,649[174] - Elec-Tech International (H.K.) Company Limited holds 740,346,000 shares, representing 17.51% of the total issued shares[177] - SU Lixin owns 649,350,649 shares, accounting for 15.36% of the total issued shares[177] - Rising Wealth Limited has 638,400,000 shares, which is 15.10% of the total issued shares[177] - Harbour Faith Enterprises Limited holds 341,071,000 shares, representing 8.07% of the total issued shares[177] - The Company did not have any controlling shareholder during the review period[181] - No shares have been granted under the Restricted Share Unit Scheme since its adoption on January 25, 2019[188] - The total number of shares available for RSUs under the scheme is 211,557,782, which is 5% of the shares in issue as of the adoption date[187] - During the review period, the Company did not purchase, sell, or redeem any listed securities[189] - No other person or corporation had 5% or more interests in the shares as of June 30, 2023, apart from the disclosed substantial shareholders[180] - The Company has not granted any restricted share units under the Restricted Share Unit Plan since the adoption date, resulting in no unvested, cancelled, or expired restricted share units as of the review period end[190] - The total number of shares involved in the Restricted Share Unit Plan is 5% of the issued shares as of the adoption date, equating to 211,557,782 shares out of 4,231,155,649 issued shares[190] - During the review period, the Company and its subsidiaries did not purchase, sell, or redeem any listed securities[191]

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，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 NVC International Holdings Limited 雷士國際控股有限公司 （於開曼群島註冊成立的有限公司） 2222 （股份代號： ） 2023 6 30 6 截至 年 月 日止 個月之中期業績公告 2023 6 30 6 截至 年 月 日止 個月之摘要： • 119,034 25.8% 本集團收入達 千美元，與同期比較下降 。 • 32,690 12.8% 本集團毛利達 千美元，與同期比較下降 。 • 2,306 1,520 本集團所得稅前利潤達 千美元，同期所得稅前利潤達 千美元。 • 1,034 本公司擁有人應佔本期利潤達 千美元，同期本公司擁有人應佔本期虧損 2,264 達 千美元。 ...

Financial Performance - The cost of sales as a percentage of revenue increased from 72.1% to 77.2%, leading to a decrease in gross profit margin from 27.9% to 22.8% due to high commodity and shipping costs[1]. - Gross profit from PRC sales for non-NVC brands was RMB 13,199, representing 11.2% of total sales, a significant decrease from RMB 42,710 and 17.0% in the previous year[3]. - Total gross profit for the Group decreased to RMB 431,452, with a gross profit margin of 22.8%, down from RMB 662,432 and 27.9% in the prior year[3]. - The overall gross profit margin decreased from 27.9% to 22.8% due to increased production costs, but new product development is expected to gradually improve margins[4]. - The company reported a significant increase in revenue, achieving a total of $1.2 billion for the fiscal year, representing a 15% year-over-year growth[50]. - User data showed a 20% increase in active users, reaching 5 million by the end of the year[51]. - The company provided guidance for the next fiscal year, projecting revenue growth of 10% to 12%[52]. Capital Expenditure and Assets - The Group's capital expenditure amounted to RMB 106,667, primarily for property, plant, equipment, and intangible assets[21]. - The Group's total net current assets decreased from RMB 1,353,844,000 in 2021 to RMB 1,110,412,000 in 2022, with a current ratio of 2.50[17]. - Total borrowings increased significantly to RMB 271,858,000 in 2022 from RMB 40,035,000 in 2021, indicating a substantial rise in debt levels[37]. - Trade receivables decreased to RMB 57,435,000 in 2022 from RMB 163,300,000 in 2021, reflecting a reduction in outstanding customer payments[41]. - Pledged bank deposits rose to RMB 373,071,000 in 2022 compared to RMB 83,272,000 in 2021, showing an increase in secured assets[41]. - The Group's total equity attributable to owners decreased slightly to RMB 3,165,352,000 in 2022 from RMB 3,195,184,000 in 2021[37]. Workforce and Employee Management - As of December 31, 2022, the Group had approximately 2,246 employees, down from 3,165 employees in the previous year, indicating a reduction in workforce[45]. - The Group's remuneration policy compensates employees based on performance, qualifications, and operational results[121]. - The emoluments of Directors and senior management are determined by the Remuneration Committee, referencing operational results and individual performance[121]. Risk Management and Financial Strategies - The Group has implemented measures to mitigate high commodity prices by transferring production to Vietnam and enhancing procurement strategies[4]. - The Group's liquidity risk is managed through monitoring cash flows and maintaining a balance between continuity and flexibility of funding, with no significant liquidity risk identified[45]. - The Group has not entered into commodity derivatives to hedge against raw material price fluctuations, exposing it to potential financial performance impacts[44]. - The Group has implemented forward exchange contracts to hedge against foreign exchange exposure, mitigating risks from currency fluctuations[42]. Corporate Governance and Compliance - The Company has fully complied with the principles and code provisions set out in the CG Code during the Reporting Period[148]. - The Company has adopted the standard code for securities trading and confirmed compliance by all directors during the reporting year[157]. - The Board believes that high corporate governance standards are essential for safeguarding shareholder interests and enhancing corporate value[158]. - The Company has fully complied with the CG Code provisions regarding the separation of roles between the Chairman and CEO during the reporting period[168]. - The independent non-executive directors have demonstrated strong commitment and the ability to devote sufficient time to their responsibilities[162]. Strategic Initiatives and Future Plans - New product launches included a state-of-the-art LED lighting solution, expected to contribute an additional $200 million in revenue[53]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[54]. - A strategic acquisition of a local competitor was completed, enhancing the company's manufacturing capabilities and expected to save $30 million annually in operational costs[55]. - Research and development investments increased by 18%, focusing on innovative lighting technologies[56]. - The company plans to implement a new digital marketing strategy aimed at increasing online sales by 30%[57]. - The management team emphasized a commitment to sustainability, aiming for a 50% reduction in carbon emissions by 2030[58]. Shareholder Information - As of December 31, 2022, the total number of issued shares was 4,227,280,649[82]. - Elec-Tech International (H.K.) Company Limited holds shares representing a significant interest, as it is a wholly-owned subsidiary of ETIC[82]. - Rising Wealth Limited reported holding 638,400,000 shares since August 3, 2018, indicating a long-term investment[82]. - Zhao Yu also reported holding 638,400,000 shares through Rising Wealth Limited, reflecting her significant stake in the company[82]. - The RSU Scheme allows for a maximum of 5% of the total issued shares to be granted as restricted share units[83]. - The maximum aggregate number of shares underlying RSUs is subject to the Scheme Mandate Limit, minus previously granted RSUs[83]. Connected Transactions - The Company entered into a renewed framework finished products and raw materials purchase agreement with ETIC on 26 November 2021, which has a term of three years commencing from 1 January 2022[90]. - The ETIC Sales Agreement allows the Company to sell finished products and raw materials to ETIC and its associates on a non-exclusive basis[90]. - The independent non-executive Directors confirmed that the continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[94]. - The auditor's letter confirmed that the continuing connected transactions disclosed by the Group complied with Rule 14A.56 of the Listing Rule, with no non-compliance issues identified[94].

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，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 NVC International Holdings Limited 雷士國際控股有限公司 （於開曼群島註冊成立的有限公司） 2222 （股份代號： ） 2022 12 31 截至 年 月 日止年度之全年業績公告 2022 12 31 截至 年 月 日止年度之摘要： • 1,888,447 20.5% 本集團收入達人民幣 千元，與同期收入比較下降 。 • 431,452 34.9% 本集團毛利達人民幣 千元，與同期毛利比較下降 。 • 37,484 33,466 本集團本年虧損達人民幣 千元，同期年度利潤達人民幣 千元。 • 66,119 本公司擁有人應佔的虧損達人民幣 千元，同期本公司擁有人應佔的利 5,814 潤達人民幣 千元。 • 1.56 本公司擁有人應佔基本每股虧損為人民幣 分（同期基本每股利潤：人民幣 0.14 分）。 • 2021 董事會建議不宣派末期股息（ 年：不宣派末期股息）。 ...

Financial Performance - Revenue for the first half of 2022 was RMB1,043,362,000, a decrease of 8.7% compared to RMB1,143,253,000 in the same period of 2021[13] - Gross profit for the period was RMB243,956,000, representing a decrease of 30.1% from RMB349,133,000 in the corresponding period of 2021[13] - Profit before tax was RMB9,889,000, down from RMB92,469,000 in the same period last year[13] - The company recorded a loss attributable to owners of the company of RMB14,728,000, compared to a profit of RMB62,018,000 in the first half of 2021[13] - The Group's sales revenue for the first half of 2022 was RMB 1,043,362 thousand, representing a decline of 8.7% compared to the same period last year[20] - Gross profit for the Group decreased to RMB 243,956 thousand, a reduction of 30.1% year-on-year[20] - Sales revenue from the PRC decreased by 61.8% due to the operation suspension of a subsidiary caused by lockdown measures in Shanghai[79] - International sales decreased by 2.5%, primarily due to weak demand resulting from serious inflation issues and a weak economy in the international market[80] - The cost of sales as a percentage of revenue increased from 69.5% to 76.6%, while the gross profit margin decreased from 30.5% to 23.4%[85] - The overall gross profit margin decreased from 30.5% to 23.4% compared to the corresponding period[93] Market Performance - In the North American market, overall retail sales remained nearly flat compared to the corresponding period despite inflation and economic challenges[24] - The Group's sales in the Japanese market saw a significant decline due to decreased retail sales and yen depreciation, impacting gross profit margins[25] - The Group expanded its presence in the Danish market following the acquisition of a distributor in 2021, leading to improved overall revenue compared to the first half of 2021[30] - The Middle East and North Africa markets recorded growth as suspended projects resumed, increasing orders for the Group[33] - The Group focused on promoting balcony products in Greater China, enhancing brand promotion and sales platforms[30] Strategic Initiatives - The company adjusted its procurement strategy and signed strategic cooperation agreements with core suppliers to control costs and ensure stable supply[18] - The company launched a series of new lighting products to meet customer needs and strengthen its sales foundation[18] - The company is preparing for the expansion of its non-lighting business in the global market, focusing on "air" and "water" products[18] - The Group's strategic partnerships with major customers helped maintain sales performance despite adverse market conditions[24] - The Group aims to enhance its brand image and awareness in international markets while promoting its mission of "Empowering Your LifeScape"[41] Operational Efficiency - The Group will promote high value-added products in the Japanese market during the peak season to improve profit margins[46] - The Group expects to improve the gross profit margin of its UK and Nordic lighting business by introducing high value products and enhancing inventory management[47] - The Group will focus on promoting the balcony business in Greater China and enhancing efficiency through personnel optimization and cost control[48] - The Group will maintain strategic alliances in Southeast Asia to promote lighting products and enhance gross profit margins[49] - The Group is actively developing distribution channels for non-lighting products in the Middle East and North Africa, aiming to enhance product coverage and brand influence[55] Financial Management - The Group's management anticipates improved sales performance in the second half of 2022, leveraging the brand reputation of D&H to launch Indoor Air Quality products in overseas markets[40] - Raw material price control will be a key focus for the Group in the second half of 2022, with strategies to enhance inventory management and reduce costs[58] - The Group's liquidity risk is managed by monitoring the maturity of financial instruments and projected cash flows, with no significant liquidity risk identified[143] - The Group's credit risk is primarily from trade and bills receivables, with policies in place to ensure sales are made to customers with appropriate credit limits[143] Human Resources - The Group's total number of employees decreased to approximately 2,738 as of June 30, 2022, down from 3,165 as of December 31, 2021, reflecting a reduction in workforce[147] - The Group's management emphasizes continuous improvement in employee training to enhance professional skills, combining classroom learning with practical operations[148] Corporate Governance - The Company has fully complied with the principles and code provisions set out in the CG Code during the Period under Review[177] - The Audit Committee consists of three Independent Non-executive Directors, with Mr. LEE Kong Wai, Conway as the chairman, and has reviewed the interim results for the Period under Review[180] - The Company established a remuneration committee to review and recommend remuneration packages for Executive Directors and senior management, ensuring no Director participates in deciding their own remuneration[182] - The Nomination Committee is responsible for reviewing Board composition and assessing the independence of Independent Non-executive Directors, with Mr. WANG Donglei as the chairman[183] Financial Statements - The condensed consolidated financial statements were reviewed and found to be in compliance with IAS 34, with no significant issues identified[197] - The financial statements cover the six-month period ended June 30, 2022, including the statement of profit or loss and other comprehensive income[200] - The financial statements include the condensed consolidated statement of financial position as of June 30, 2022[190]