Financial Performance - Revenue for 2023 was HKD 284,101,000, a decrease of 5.4% from HKD 300,163,000 in 2022[3] - The company reported a net loss of HKD 9,464,000 for 2023, compared to a profit of HKD 4,617,000 in 2022[4] - Basic loss per share for 2023 was HKD (1.80), compared to earnings of HKD 2.09 per share in 2022[4] - The company reported a loss attributable to shareholders of HKD 4,640,000 in 2023, compared to a profit of HKD 5,378,000 in 2022[23] - The company reported a loss attributable to shareholders of approximately HKD 4.6 million, compared to a profit of HKD 5.4 million in the same period of 2022[34] - The company recorded a loss of HKD 9.5 million in 2023, compared to a profit of HKD 4.6 million in 2022, primarily due to increased employee costs and promotional expenses related to establishing live sales in mainland China[63] Revenue Breakdown - Self-operated retail revenue decreased to HKD 202,341,000 in 2023 from HKD 215,910,000 in 2022, a decline of 6.3%[11] - E-commerce sales increased significantly to HKD 44,683,000 in 2023, up 53.9% from HKD 29,035,000 in 2022[11] - Revenue from distribution business fell to HKD 17,653,000 in 2023, down 13.5% from HKD 20,504,000 in 2022[11] - Revenue from other sales decreased to HKD 19,424,000 in 2023, a decline of 44% from HKD 34,714,000 in 2022[11] - Revenue from Hong Kong and Macau was HKD 202,994,000 in 2023, down 13.8% from HKD 235,366,000 in 2022[14] - Revenue from China increased to HKD 80,631,000 in 2023, up 41.9% from HKD 56,937,000 in 2022[14] Assets and Liabilities - Total assets decreased by 3.8% to HKD 466,275,000 from HKD 484,836,000 in the previous year[3] - Total liabilities decreased by 4.0% to HKD 85,522,000 from HKD 89,074,000 in 2022[3] - The company had no bank borrowings as of December 31, 2023, down from HKD 5,298,000 in 2022[3] - The company’s total equity decreased by 3.8% to HKD 380,753,000 from HKD 395,762,000 in 2022[5] - Cash and cash equivalents decreased by 9.1% to HKD 132,383,000 from HKD 145,595,000 in 2022[3] Inventory and Receivables - Inventory increased to HKD 59,937,000 in 2023 from HKD 58,457,000 in 2022, indicating a slight growth in stock levels[5] - Trade receivables decreased to HKD 34.656 million in 2023 from HKD 36.751 million in 2022, reflecting a reduction in outstanding amounts[10] - Trade payables and notes payable increased to HKD 44.364 million in 2023 from HKD 38.626 million in 2022, indicating a rise in liabilities[28] - Inventory turnover days increased from 232.2 days in 2022 to 235.0 days in 2023, attributed to a 2.5% increase in inventory to HKD 59.9 million[66] - Trade receivables decreased by 5.7% to HKD 34.7 million in 2023, resulting in a reduction of trade receivables turnover days to 45.9 days[67] - Trade payables increased by 14.9% to HKD 44.4 million, leading to an increase in trade payables turnover days to 164.7 days[68] Operational Highlights - The number of physical sales outlets decreased to 156 as of December 31, 2023, down from 205 in the previous year[36] - Self-operated retail accounted for 71.3% of total revenue, down 6.3% from the previous year, primarily due to slow economic recovery in Hong Kong[51] - E-commerce sales surged by 53.9% to HKD 44.7 million, driven by successful live-streaming sales events in mainland China[51] - Distribution business revenue fell by 13.9% to HKD 17.7 million, attributed to a decrease in the number of operating points in mainland China and reduced sales in Macau[51] - Operating expenses for sales and distribution rose by 13.5% to HKD 153.6 million, mainly due to increased employee costs and promotional expenses related to live-streaming sales in mainland China[61] Future Plans and Strategies - The company plans to open 10 to 15 new self-operated stores in Shenzhen in 2024, focusing on shopping malls and suitable street shops[44] - The company aims to enhance its wholesale business in mainland China, seeking opportunities to supply national enterprises with uniquely designed bedding products[44] - The company will continue to optimize its licensed cartoon product portfolio, introducing new promotional activities themed around various popular cartoons to drive sales growth[46] - The company plans to launch new health-related sleep products in collaboration with the China Peptide Life Science Research Institute in early 2024[44] - The company will implement a strategy to enhance live-streaming sales operations in mainland China, focusing on platforms like Douyin and Kuaishou[44] Awards and Recognition - The company received the "Supply Chain Partner Award" from long-term partner Cotton Incorporated, highlighting its commitment to sustainable production practices[41] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with it throughout the year[99] - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting process and internal control systems for the year ending December 31, 2023[100] - The financial figures for the year ending December 31, 2023, have been agreed upon by the external auditor, Zheng Zheng CPA[101] Miscellaneous - No dividends were declared or proposed for the year ended December 31, 2023, consistent with 2022[22] - The company did not purchase, redeem, or sell any of its listed securities during the year[96] - The annual general meeting is scheduled for May 24, 2024, with a suspension of share transfer registration from May 20 to May 24, 2024[97][98] - The company expresses gratitude to its customers, business partners, and shareholders for their continued support[102]

Financial Performance - Total sales revenue for the first half of 2023 was HKD 128.9 million, a decrease of 10.4% compared to HKD 143.7 million in the same period of 2022[9]. - The company reported a loss attributable to shareholders of HKD 8.6 million, compared to a profit of HKD 2.6 million in the same period of 2022[9]. - Revenue for the six months ended June 30, 2023, was HKD 128,861,000, a decrease of 10.4% from HKD 143,742,000 in the same period of 2022[94]. - Gross profit for the same period was HKD 85,267,000, down from HKD 86,781,000, reflecting a slight decline in profitability[94]. - The company reported a loss before tax of HKD 11,253,000 compared to a profit of HKD 4,142,000 in the previous year, indicating a significant downturn in financial performance[94]. - The net loss attributable to owners of the company was HKD 8,638,000, contrasting with a profit of HKD 2,585,000 in the prior period[96]. - Total comprehensive expenses for the period amounted to HKD 20,571,000, compared to HKD 7,044,000 in the same period last year, highlighting increased financial strain[96]. - The basic and diluted loss per share for the period was HKD 3.35, compared to earnings of HKD 1.00 per share in the previous year[96]. - The company experienced a foreign exchange loss of HKD 9,386,000 during the period, slightly improved from a loss of HKD 9,629,000 in the same period last year[94]. - The company reported a net loss of HKD 8,638,000 for the six months ended June 30, 2023, compared to a profit of HKD 2,585,000 for the same period in 2022, indicating a significant decline in performance[103]. Sales and Revenue Breakdown - Self-operated retail sales and distribution sales decreased by 8.0% and 35.6% respectively during the review period[11]. - E-commerce sales increased by 31.9% compared to the same period last year, contributing positively to the group's revenue[11]. - Self-operated retail revenue decreased to HKD 94,147,000 from HKD 102,386,000, a decline of 8.9%[114]. - E-commerce sales increased by 31.8% to HKD 19,043,000 from HKD 14,433,000[114]. - Revenue from bedding sets decreased to HKD 70,136,000 from HKD 81,890,000, a decline of 14.4%[114]. - Revenue from Hong Kong and Macau dropped to HKD 95,482,000 from HKD 113,971,000, a decrease of 16.2%[115]. Operational Challenges - The number of sales outlets decreased to 175 from 205 as of December 31, 2022, reflecting a challenging retail environment[11]. - The company faced operational pressures due to a lack of significant wholesale sales and reduced government subsidies in Hong Kong[9]. - Sales and distribution costs increased by 11.2% to HKD 73.7 million, driven by expenses related to the live sales business in mainland China[30]. Strategic Initiatives - The company plans to expand its retail presence in Guangdong province and improve e-commerce strategies to enhance sales performance[18]. - The launch of the "AI Eco Pillow" in early 2023, featuring smart monitoring technology, aimed to enhance product recognition in the mainland market[12]. - The company introduced new licensed cartoon bedding products, including popular characters, which received strong consumer support during the review period[14]. - The company launched a recycling program for bedding products in collaboration with the Crossroads Foundation, promoting sustainability[21]. - The company aims to integrate sustainable practices into its business strategy while enhancing brand value and shareholder returns[23]. Financial Position - The group's total assets decreased to HKD 455.3 million as of June 30, 2023, from HKD 484.8 million as of December 31, 2022[34]. - The group maintained a strong financial position with a cash net amount of HKD 132.7 million as of June 30, 2023, compared to HKD 140.3 million at the end of 2022[34]. - The group had no bank borrowings as of June 30, 2023, down from HKD 5.3 million in borrowings at the end of 2022[35]. - The company's net asset value as of June 30, 2023, was HKD 375,191,000, down from HKD 395,762,000 at the end of 2022[100]. - The company's equity as of June 30, 2023, was HKD 375,191,000, down from HKD 404,718,000 as of January 1, 2023, representing a decrease of approximately 7.3%[103]. Corporate Governance - The company has established an audit committee to oversee financial reporting, risk management, and internal control systems[68]. - The company adopted the corporate governance code as per the listing rules and has complied with its provisions during the review period[64]. - The board of directors consists of three executive directors and three independent non-executive directors[69]. - The company amended its articles of association, which was approved at the annual general meeting on May 15, 2023[67]. Future Outlook - The company is actively seeking potential investments that can bring synergies to its existing business, considering investments in listed companies and properties for better long-term returns[45]. - The company is exploring potential mergers and acquisitions to strengthen its market position, with a focus on complementary businesses[75]. - Strategic partnerships are being formed to enhance distribution channels, aiming for a 10% increase in market penetration by Q4 2023[75]. - Overall, the company remains optimistic about future growth, driven by strong consumer demand and innovative product offerings[75].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產 生或因依賴該等內容而引致的任何損失承擔任何責任。 Casablanca Group Limited 卡撒天嬌集團有限公司 （於開曼群島註冊成立之有限公司） （股份代號：2223） 截至 年 月 日止六個月 2023 6 30 中期業績公告 財務摘要 截至6月30日止六個月 附註 2023年 2022年 變動 收入（港幣千元） 128,861 143,742 -10.4% 毛利（港幣千元） 85,267 86,781 -1.7% 本公司擁有人應佔期內 （虧損）溢利（港幣千元） (8,638) 2,585 不適用 毛利率 66.2% 60.4% （淨虧損率）純利率 -6.7% 1.8% 每股（虧損）盈利 – 基本（港仙） (3.35) 1.00 不適用 – 攤薄（港仙） (3.35) 1.00 不適用 於2023年 於2022年 ...

Financial Performance - The company's revenue for the year ended December 31, 2022, decreased by 6.3% to HKD 300.2 million compared to HKD 320.4 million in 2021[26] - The profit attributable to the company's owners dropped approximately 54.9% to HKD 5.4 million from HKD 11.9 million in the previous year[26] - Total revenue for the group in the review period was HKD 300.2 million, a decrease of 6.3% compared to HKD 320.4 million in the same period of 2021[34] - Profit attributable to owners of the company was HKD 5.4 million, down approximately 54.9% from HKD 11.9 million in the same period of 2021[34] - Gross profit decreased by 4.9% to HKD 186.8 million in 2022, with a gross margin of 62.2%, slightly up from 61.3% in 2021[78] - EBITDA for 2022 decreased by 25.1% to HKD 30.8 million, compared to HKD 41.1 million in 2021, primarily due to reduced sales[83] - Other income increased by 345.8% to HKD 6.5 million in 2022, mainly due to government subsidies related to COVID-19 amounting to approximately HKD 4.5 million[79] Assets and Liabilities - Total assets as of December 31, 2022, amounted to HKD 484.8 million, a decrease from HKD 522.3 million in 2021[21] - The total liabilities decreased to HKD 89.1 million in 2022 from HKD 117.5 million in 2021[21] - The current ratio increased from 2.8 in 2021 to 3.4 in 2022, due to a smaller decrease in current assets compared to current liabilities, which were HKD 268.6 million and HKD 80.2 million respectively[95] - The debt-to-equity ratio was 1.3% as of December 31, 2022, compared to 1.0% in 2021, with total equity decreasing by HKD 9.0 million[96] Investment and Development - The company plans to increase investment in live-streaming sales and technology sleep product development[26] - A new subsidiary was established in Q4 2022 to develop live-streaming sales, responding to changing consumer shopping habits[26] - The new industrial building in Huizhou, which officially opened in Q1 2023, will enhance product development and serve as a base for live streaming sales[29] - The group plans to continue developing innovative products that utilize technology to improve sleep quality and promote eco-friendly living[29] - The group launched the new "AI Ecological Pillow" in early 2023, which supports Huawei's HarmonyOS and features 24-hour sleep monitoring[52] Sales and Marketing - The group operates 205 sales points across major cities in Greater China, including 140 counters in well-known department stores[10] - The group’s online sales revenue contribution remained stable during the review period, with a focus on major platforms like Tmall and JD.com[36] - The group aims to enhance online promotions and consumer interaction to capture the attention of younger demographics in Hong Kong[55] - The group actively engaged consumers through social media and pop-up stores, promoting brand awareness and product offerings, including limited edition merchandise[45] Challenges and Market Conditions - The group faced significant challenges in the fiscal year due to the resurgence of COVID-19 in Hong Kong and mainland China, impacting economic conditions and consumer sentiment[133] - The group recorded losses in its retail operations in mainland China due to intense competition in the bedding market[133] - The distribution business saw a significant decline of 30.7%, primarily due to the impact of COVID-19 in mainland China[62] Corporate Governance and Compliance - The company has complied with relevant laws and regulations in Hong Kong and mainland China, with no significant changes affecting operations reported during the year[141] - The company has adopted the corporate governance code as per the listing rules and has complied with its provisions during the year[197] - There were no known breaches of the corporate governance code by the company during the year[198] Employee and Customer Relations - The company aims to provide competitive compensation and career development opportunities to attract and retain talented employees[142] - The company has implemented a VIP membership database to maintain communication with customers and offer special benefits[142] - The company has a mechanism in place to handle customer complaints, which includes collecting, analyzing, and researching complaints to suggest improvements[142] Environmental Commitment - The group is committed to environmental conservation and has implemented internal recycling programs to minimize its environmental impact[138] - The group has received various environmental awards, including the "Seal of Cotton" trademark, recognizing its commitment to sustainable materials[140]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產 生或因依賴該等內容而引致的任何損失承擔任何責任。 Casablanca Group Limited 卡撒天嬌集團有限公司 （於開曼群島註冊成立之有限公司） （股份代號：2223） 年年度業績公告 2022 摘要 附註 2022年 2021年 變動 收入（港幣千元） 300,163 320,403 -6.3% EBITDA（港幣千元） 1 30,775 41,110 -25.1% 本公司擁有人應佔溢利（港幣千元） 5,378 11,936 -54.9% 毛利率 62.2% 61.3% EBITDA利潤率 10.3% 12.8% 純利率 1.8% 3.7% 每股盈利（港仙） 2.09 4.63 -54.9% 於2022年 於2021年 12月31日 12月31日 變動 ...

Financial Performance - Total sales revenue for the first half of 2022 was HKD 143.7 million, a slight increase of 0.7% compared to HKD 142.7 million in the same period of 2021[8]. - Profit attributable to owners for the period was HKD 2.6 million, up approximately 62.6% from HKD 1.6 million in the same period of 2021[8]. - Gross profit for the period was HKD 86.8 million, a decrease of 2.9% from HKD 89.3 million in 2021, with a gross margin of 60.4%[25]. - Other income for the period was HKD 4.0 million, significantly up from HKD 0.7 million in 2021, mainly due to government subsidies[26]. - Revenue from Hong Kong and Macau increased by 7.0% to HKD 114.0 million, while revenue from mainland China decreased by 18.4% to HKD 29.5 million[22]. - EBITDA decreased to HKD 12.9 million from HKD 15.8 million in the previous year, a decline of 18.3%, mainly due to reduced gross profit[32]. - The company reported a foreign exchange loss of HKD 9,629,000 for the period, compared to a gain of HKD 2,288,000 in the previous year[87]. - The effective tax rate for the period was approximately 3.6%, with total tax expenses amounting to HKD 1,557,000 compared to HKD 707,000 in the previous year[112]. Sales and Marketing - E-commerce sales increased by 2.7% year-on-year during the review period[10]. - Sales to other customers saw a significant increase of 26.8% year-on-year[10]. - The company launched its first mattress series, "Casa Sleep-Lab Earth Mantle Series," in February 2022, featuring six models with ergonomic designs[10]. - The company expanded its product range by introducing licensed bedding products for popular cartoons, including "Kakao Friends" and "Pokemon," which received a positive market response[12]. - The company implemented promotional themes on its official online store and optimized backend systems to enhance the online shopping experience[10]. - The company aims to enhance consumer awareness of its mattress products through promotional activities and potential new sales points[19]. Retail Operations - The company maintained 199 retail outlets as of June 30, 2022, with 104 self-operated and 95 distributor-operated outlets across 48 cities in Greater China[10]. - Self-operated retail sales amounted to HKD 102.4 million, down 1.5% from HKD 103.9 million in 2021, accounting for approximately 71.2% of total revenue[23]. - E-commerce sales increased by 2.7% to HKD 14.4 million, while distribution business sales decreased by 6.5% to HKD 12.4 million[23]. Future Plans and Investments - The company plans to open 5 to 8 new distribution points in the second half of 2022, focusing on developing new distribution customers[16]. - The company expects to launch a new smart pillow in the domestic market by the end of 2022, targeting health care product demand due to recurring COVID-19 variants[16]. - The company is actively seeking suitable investments that can bring synergistic effects to its existing business, considering potential investments that align with the overall interests of the company and its shareholders[46]. Corporate Governance - The company has established an audit committee to oversee financial reporting and risk management[7]. - The interim financial statements for the six months ended June 30, 2022, were reviewed by the auditors[8]. - The board of directors did not authorize any significant investments or additions to capital assets as of the report date[48]. Shareholder Information - The total number of shares issued by the company is 257,854,000[4]. - As of June 30, 2022, directors and key executives held a total of 157,875,000 shares, representing 61.2% of the company's issued share capital[59]. - The 2012 share option scheme was terminated, and a new 2022 share option scheme was adopted, which was approved by shareholders on June 6, 2022[52]. - A total of 5,250,000 share options were granted under the 2012 scheme, with an exercise price of HKD 0.48 per share, and all options remained unexercised as of June 30, 2022[53]. Financial Position - The company's cash and cash equivalents increased to approximately HKD 141.8 million from HKD 135.1 million at the end of 2021[32]. - The total assets decreased to HKD 498.973 million from HKD 522.259 million at the end of 2021[33]. - The total liabilities decreased to HKD 101.299 million from HKD 117.541 million at the end of 2021[33]. - The current ratio improved to 3.1 from 2.8 in the previous year[33]. - Total bank borrowings as of June 30, 2022, were approximately HKD 9.3 million, up from HKD 4.0 million at the end of 2021[34]. Social Responsibility and Sustainability - The company continued to promote eco-friendly products under the "Love CASA Love ECO" campaign, emphasizing sustainable materials[13]. - The company received recognition as a "Caring Company" for 11 consecutive years from GS1 Hong Kong, highlighting its commitment to quality products and customer service[13]. - The company will continue to integrate sustainable growth and social responsibility into its business strategy, offering reasonably priced and high-quality products[20].

Financial Performance - Total revenue for 2021 was HKD 320.4 million, an increase from HKD 309.3 million in 2020, representing a growth of 3.6%[51] - Gross profit for 2021 was HKD 196.4 million, with a gross margin of 61.3%, slightly down from 62.0% in 2020[51][54] - Net profit attributable to shareholders was HKD 11.9 million, a decrease from HKD 16.1 million in 2020, resulting in a net profit margin of 3.7%[51][54] - The company reported an EBITDA of HKD 41.1 million for 2021, with an EBITDA margin of 12.8%[51][54] - The profit attributable to the company's owners for the year was HKD 11.9 million, a decrease of approximately 26.0% from HKD 16.1 million in 2020[64] - Excluding non-recurring government subsidies of approximately HKD 10.0 million received in 2020, the profit attributable to the company's owners actually increased by 93.1% in 2021 compared to 2020[64] - Other income decreased by 88.2% to HKD 1.5 million in 2021, primarily due to the absence of government subsidies received in 2020[105] - The company's profit attributable to owners decreased by 26.0% to HKD 11.9 million in 2021, compared to HKD 16.1 million in 2020[111] - EBITDA increased by 7.8% to HKD 41.1 million in 2021, driven by higher sales[111] Assets and Liabilities - Total assets increased to HKD 522.3 million in 2021 from HKD 510.6 million in 2020, while total liabilities rose to HKD 117.5 million from HKD 85.8 million[53] - The total bank borrowings increased to HKD 3.98 million in 2021 from HKD 2.38 million in 2020, indicating a rise in leverage[53] - Current ratio decreased to 2.8 in 2021 from 4.3 in 2020, indicating a tighter liquidity position[54] - Cash and cash equivalents decreased to HKD 135.1 million as of December 31, 2021, down from HKD 188.4 million in 2020[120] - The company had approximately HKD 119.3 million in available cash and HKD 72.5 million in unused bank financing as of December 31, 2021[117] - Debt-to-equity ratio was 1.0% as of December 31, 2021, compared to 0.6% in 2020, with total liabilities increasing and equity decreasing[123] Market and Sales Strategy - The company plans to focus on expanding its market presence in economically developed cities in China[4] - The group aims to expand distribution, online sales, and wholesale channels to drive sales growth in response to market needs[76] - The group plans to open 5 to 10 new self-operated retail outlets in 2022 to expand revenue scale and enhance single-store income contributions through targeted promotions[12] - The group is focusing on developing new products with 5A features and technology materials to attract young consumers in mainland China, with a particular emphasis on high-end products[80] - The group is enhancing its online sales channels and has updated its official website design, increasing collaboration with e-commerce platforms[65] - The group aims to strengthen brand promotion through online channels and expand its presence on various e-commerce platforms despite ongoing pandemic challenges[82] Product Development and Innovation - The group launched the "CoV ZAP antiviral series" in the first half of 2021, which has a 99% antibacterial rate and has passed multiple international and national testing certifications[71] - The new product "Recycled Antibacterial Quick-Warm Quilt" was introduced in the second half of the year, utilizing patented eco-friendly fibers and high-density fabrics, effectively inhibiting harmful bacteria[72] - The group launched its first mattress series, "Casa Sleep-Lab Earth Mantle Series," in February 2022, featuring six models with ergonomic designs and various support systems[83] - The company launched new health-functional products under the "CASA-V" brand, including those with mosquito-repellent features, aiming to establish "CASA-V" as a healthy and eco-friendly home living brand[167] Operational Challenges and Adjustments - The company is focusing on its "deep sleep system mattress" business after ceasing the "fast fashion" project and reducing the furniture sales business due to operational difficulties[59] - The group recorded a loss in retail operations in mainland China due to intense competition in the bedding market[161] - The economic conditions and consumer habits remain uncertain, impacting the group's ability to predict significant adverse effects on its business[161] Employee and Corporate Governance - Employee headcount decreased from 549 in 2020 to 516 in 2021, while total employee costs increased to HKD 91.8 million from HKD 90.3 million[131] - The company has a stock option plan to reward and retain employees, which was approved for a period of 10 years until October 21, 2022[181] - The company has confirmed compliance with the non-competition agreement by each controlling shareholder for the year[200] Environmental and Social Responsibility - The company has implemented eco-friendly practices, including the use of sustainable raw materials like milk protein and soybean protein fibers in its products[167] - The company has been recognized for its environmental contributions, receiving the "Seal of Cotton" trademark and "Cotton LEADSSM" label in 2020 for using sustainable cotton in its products[167] - The company has been awarded the "U Green Awards - Outstanding Green Contribution Award" for six consecutive years, recognizing its commitment to environmental sustainability[166] Shareholder Information - The total dividend for the year is HKD 0.05 per share, down from HKD 0.10 per share in 2020, with a basic earnings per share of HKD 0.0463, representing a decrease of approximately 26.4%[171] - As of December 31, 2021, the company has distributable reserves of approximately HKD 171,658,000, which includes share premium of HKD 166,376,000 and retained earnings of HKD 5,282,000[172] - Mr. Zheng Sijian holds a beneficial interest in 4,500,000 shares, representing 1.7% of the company's issued share capital[189] - Mr. Zheng Sijian also has a controlled corporation interest in 150,000,000 shares, which accounts for 58.2% of the company's issued share capital[189]

Financial Performance - Total sales revenue for the first half of 2021 was HKD 142.7 million, an increase of 5.0% compared to HKD 135.8 million in the same period of 2020[5]. - Profit attributable to owners of the company was HKD 1.6 million, a turnaround from a loss of HKD 2.2 million in the same period of 2020[5]. - The company recorded revenue of HKD 142.7 million for the period, representing a 5.0% increase compared to HKD 135.8 million in the previous year[20]. - Gross profit for the period was HKD 89.3 million, a 5.8% increase from HKD 84.4 million in the previous year, with a gross margin of 62.6%[24]. - The company achieved a net profit attributable to shareholders of HKD 1.6 million, recovering from a loss of HKD 2.2 million in the previous year[28]. - EBITDA increased by 28.0% to HKD 15.8 million, up from HKD 12.4 million in the previous year, driven by higher total sales[28]. - The company reported a net loss of HKD 2,169,000 for the six months ended June 30, 2020, compared to a profit of HKD 1,590,000 for the same period in 2021, indicating a turnaround in performance[91]. - The total comprehensive income for the period amounted to HKD 3,878,000, recovering from a loss of HKD 5,438,000 in the previous year[84]. - Basic earnings per share for the period were HKD 0.62, compared to a loss per share of HKD 0.84 in the same period of 2020[84]. Sales and Revenue Breakdown - Sales revenue from mainland China increased by 15.7% despite a reduction of 15 sales points, while sales from Hong Kong and Macau recorded a slight growth of 1.8%[4]. - Self-operated retail sales amounted to HKD 103.9 million, accounting for approximately 72.8% of total revenue, despite a decrease of 16 outlets year-on-year[20]. - Distribution sales increased by 55.1% to HKD 13.2 million, up from HKD 8.5 million in the previous year, due to better control of COVID-19 cases in mainland China[20]. - Revenue from Hong Kong and Macau was HKD 106.5 million, a 1.8% increase from HKD 104.6 million, while revenue from mainland China rose by 15.7% to HKD 36.2 million[23]. - E-commerce sales slightly decreased by 4.9% to HKD 14.1 million, down from HKD 14.8 million in the previous year[20]. - Revenue from bedding sets was HKD 79.52 million, a slight increase of 1.3% from HKD 78.47 million in the previous year[107]. - E-commerce sales remained stable at HKD 14.06 million, while distribution business revenue increased to HKD 13.21 million from HKD 8.52 million, reflecting a significant growth of 55.5%[105]. Assets and Liabilities - As of June 30, 2021, the total assets of the group were HKD 473.3 million, a decrease from HKD 510.6 million as of December 31, 2020, representing a decline of approximately 7.6%[30]. - The group's total liabilities decreased to HKD 70.4 million from HKD 85.8 million, indicating a reduction of about 17.8%[30]. - The total equity as of June 30, 2021, was HKD 402,886,000, down from HKD 424,793,000 as of December 31, 2020, indicating a decrease of approximately 5.1%[87]. - The company's current liabilities decreased to HKD 62,121,000 as of June 30, 2021, from HKD 79,341,000 as of December 31, 2020, a reduction of about 21.7%[87]. - The group had no bank borrowings as of June 30, 2021, compared to HKD 2.4 million in borrowings at the end of 2020[31]. - The group reported a net cash outflow from financing activities of HKD 36,340,000 for the six months ended June 30, 2021, compared to HKD 17,570,000 for the same period in 2020[94]. Investments and Capital Expenditures - The group is actively seeking suitable investments that can bring synergies to its existing business, with a total investment in listed companies amounting to HKD 7.2 million as of June 30, 2021, up from HKD 5.2 million at the end of 2020[39]. - The group acquired property, plant, and equipment at a cost of HKD 21,067,000 during the six months ended June 30, 2021, significantly higher than HKD 488,000 in the same period of 2020[131]. - The group recognized an increase in right-of-use assets of approximately HKD 10,682,000 for the six months ended June 30, 2021[125]. - The group has no significant investments or capital asset plans authorized as of the report date[41]. Corporate Governance - The company has established an audit committee to oversee financial reporting and risk management, ensuring compliance with corporate governance standards[71]. - The company has adhered to the corporate governance code and has not deviated from its provisions during the reporting period[69]. - The financial statements have been reviewed by an independent auditor, confirming compliance with the relevant accounting standards[80]. Employee and Management Information - The number of employees decreased to 525 as of June 30, 2021, from 593 in 2020, while total employee costs increased slightly to HKD 43.3 million from HKD 42.5 million[45]. - The total remuneration for directors and other key management personnel was HKD 6,454,000 for the six months ended June 30, 2021, an increase of 3.0% from HKD 6,265,000 in the same period of 2020[160]. - Contributions to retirement benefit plans for key management personnel were HKD 385,000 for the six months ended June 30, 2021, compared to HKD 363,000 for the same period in 2020, indicating a growth of 6.1%[160]. Stock Options and Share Capital - The company has adopted a stock option plan, granting a total of 5,250,000 shares at an exercise price of HKD 1.18 per share, valid from April 17, 2018, to April 16, 2021[48]. - An additional stock option grant of 5,250,000 shares was made on July 2, 2020, at an exercise price of HKD 0.48 per share, valid until July 1, 2023[48]. - As of June 30, 2021, there are 3,906,000 stock options available for issuance under the stock option plan[48]. - As of June 30, 2021, the company has a total of 257,854,000 shares issued[66]. - The total issued and fully paid shares as of June 30, 2021, were 257,854,000 shares, compared to 258,432,000 shares as of June 30, 2020[143]. Dividends - The group declared an interim dividend of HKD 0.05 per share for the six months ended June 30, 2021, compared to no dividend for the same period in 2020[43]. - The total dividend declared for the interim period was approximately HKD 25,785,000, an increase from HKD 7,753,000 in 2020, with a final dividend of HKD 0.10 per share[119].

Financial Performance - The group's revenue for the year ended December 31, 2020, was HKD 309.3 million, a decrease of 18.4% compared to HKD 378.9 million in 2019[23]. - The profit attributable to the company's owners for 2020 was HKD 16.1 million, down 12.8% from HKD 18.5 million in 2019[23]. - The EBITDA for 2020 was HKD 38.2 million, down from HKD 56.3 million in 2019[16]. - The company reported a current ratio of 4.3 in 2020, indicating strong liquidity[19]. - The gross profit margin improved to 62.0% in 2020 from 60.4% in 2019[19]. - The company recorded better-than-expected sales performance during the traditional peak sales period from November to December 2020, despite the resurgence of COVID-19 cases in Hong Kong[35]. - Other income increased by 419.6% to HKD 12.4 million, mainly due to government subsidies related to COVID-19 amounting to HKD 10.0 million[81]. - The company's profit attributable to owners decreased by 12.8% to HKD 16.1 million, primarily due to a decline in sales despite government support[87]. - EBITDA decreased by 32.2% to HKD 38.2 million, reflecting the impact of reduced sales[87]. - Revenue from self-owned brands decreased by 21.5% to HKD 262.9 million, while licensed brands increased by 5.5% to HKD 46.4 million, resulting in a total revenue decline of 18.4% to HKD 309.3 million[68]. - Sales of bedding sets decreased by 16.7% to HKD 163.2 million, and sales of comforters and pillows decreased by 20.5% to HKD 127.9 million, contributing to an overall revenue decline[72]. - Revenue from Hong Kong and Macau decreased by 14.6% to HKD 226.9 million, while revenue from mainland China decreased by 23.0% to HKD 82.0 million, primarily due to reduced sales to wholesale customers[78]. - Gross profit decreased by 16.2% to HKD 191.7 million, with a gross margin of 62.0%, up from 60.4% in 2019, attributed to a higher proportion of self-operated retail sales[80]. Assets and Liabilities - Total assets as of December 31, 2020, were HKD 510.6 million, slightly down from HKD 511.3 million in 2019[18]. - Total liabilities decreased to HKD 85.8 million in 2020 from HKD 105.0 million in 2019[18]. - The current ratio improved from 3.6 in 2019 to 4.3 in 2020, with total current assets decreasing to HKD 341.4 million and total current liabilities decreasing to HKD 79.3 million[101]. - The debt-to-equity ratio was only 0.6% as of December 31, 2020, down from 1.6% in 2019, indicating a strong financial position[102]. - Trade receivables decreased by 22.0% from HKD 60.5 million on December 31, 2019, to HKD 47.2 million on December 31, 2020, while the turnover days increased from 61.4 days to 63.5 days[93]. - Trade payables decreased by 15.5% from HKD 48.8 million on December 31, 2019, to HKD 41.2 million on December 31, 2020, with turnover days decreasing from 155.6 days to 139.8 days[94]. - As of December 31, 2020, the company had over HKD 140.0 million in available cash net after reserving HKD 48.8 million for capital commitments and HKD 2.4 million in bank borrowings[95]. - Bank borrowings decreased from HKD 6.4 million in 2019 to HKD 2.4 million in 2020, with a floating interest rate of 5.74%[97]. Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.10 per share for the year ended December 31, 2020[23]. - The proposed final dividend is HKD 0.10 per share for the year ending December 31, 2020, compared to HKD 0.03 per share in 2019, reflecting a total dividend increase of 100%[110]. - The company reported a final dividend of HKD 0.10 per share for the year ended December 31, 2020, compared to HKD 0.03 in 2019, representing a total dividend of HKD 0.10 per share for the year, which is approximately 160.0% of the basic earnings per share of HKD 0.0625[150]. - As of December 31, 2020, the company had distributable reserves of approximately HKD 199,439,000, including share premium of HKD 166,376,000 and retained earnings of HKD 33,063,000[151]. - The total number of shares issued as of the annual report date is 257,854,000[185]. Operational Changes and Strategies - The company reduced 20 underperforming self-operated retail outlets in mainland China to decrease reliance on physical retail income[24]. - The company plans to actively expand its commercial customer market to support its retail business, commercial customer business, and online sales as a three-pronged growth strategy[24]. - The company observed a significant increase in demand for health-functional bedding products, leading to the construction of a new production building expected to enhance R&D efficiency and production capacity[25]. - The company focused on providing products for commercial clients, which became the main revenue source during the pandemic[39]. - The company launched new products with health features, including CASA-V brand products with air purification and antibacterial functions[41]. - The company engaged in joint promotions with various brands to attract young consumers, including collaborations with popular games and local influencers[46]. - The company is committed to enhancing its online presence by opening stores on various e-commerce platforms and increasing online advertising resources to reach consumers who prefer online shopping[140]. - The company has closed underperforming self-operated outlets in mainland China and is investing more resources into developing new sales channels, including new media[138]. - The company aims to expand its sales through new media and wholesale business to reduce reliance on physical retail operations in Hong Kong and mainland China[140]. - The company is focusing on strengthening advertising and marketing efforts while enhancing new product development to mitigate market pressures[138]. Market Outlook and Future Plans - The company expects a positive market recovery in 2021 with the rollout of COVID-19 vaccines, aiming to provide more stylish and health-functional bedding products through various sales channels[25]. - The outlook for 2021 anticipates a recovery in consumer confidence as COVID-19 vaccines are expected to control the pandemic[48]. - The group plans to enhance online sales by expanding to more e-commerce platforms and improving pricing strategies[49]. - The group is developing more luxury bedding products to capture a larger share of the high-end market, responding to consumer demand for health and eco-friendly products[51]. - The group aims to maintain stable operations in Hong Kong, focusing on diversifying commercial customer collaborations and expanding e-commerce sales[52]. Environmental and Social Responsibility - The company has implemented internal recycling programs for office consumables, including carbon powder, cartridges, and paper, to minimize environmental impact[143]. - The company has received the "Seal of Cotton" trademark and "Cotton LEADSSM" label for its commitment to using sustainable cotton in its products[145]. - The company has been recognized for its environmental contributions, receiving awards such as the "U Green Awards - Outstanding Green Contribution Award" in 2020[143]. - The company has adopted an equity incentive plan to reward and retain directors and employees contributing to its growth and development[147]. - The company emphasizes the importance of attracting, training, and retaining skilled employees to support future growth and mitigate talent loss risks[140]. Employee and Management Information - As of December 31, 2020, the group had 549 employees, a decrease from 640 in 2019, with total employee costs amounting to HKD 90.3 million, down from HKD 98.1 million in 2019[111]. - The group provides competitive compensation and benefits to all employees, including social insurance, mandatory provident fund, bonuses, and stock option plans[197]. - The remuneration of the company's directors is determined by the remuneration committee based on the group's operational performance, individual performance, and comparable market statistics[198]. - The audit committee, composed of three independent non-executive directors, is responsible for reviewing the group's financial reporting process and risk management systems[200].

Financial Performance - Total revenue for the first half of 2020 was HKD 135.8 million, a decrease of 26.1% compared to HKD 183.8 million in the same period of 2019[9] - The company reported a loss attributable to shareholders of HKD 2.2 million, compared to a profit of HKD 11.9 million in the same period of 2019[9] - Gross profit decreased to HKD 84.4 million, down 25.7% from HKD 113.7 million in 2019, with a gross margin of 62.1%[28] - EBITDA decreased from HKD 29.6 million in the previous year to HKD 12.4 million, representing a decline of 58.3%, mainly due to a reduction in total sales[33] - The company incurred a loss before tax of HKD 1,371,000, compared to a profit of HKD 14,282,000 in the previous year, reflecting a significant downturn[86] - The net loss for the period was HKD 2,187,000, contrasting with a profit of HKD 11,269,000 in the prior year, marking a shift in performance[86] - The total comprehensive loss for the period amounted to HKD 5,438,000, compared to a comprehensive income of HKD 11,249,000 in 2019[86] - Basic and diluted loss per share was HKD 0.84, compared to earnings per share of HKD 4.59 in the same period last year[86] Revenue Breakdown - E-commerce sales revenue increased significantly to HKD 14.8 million, up 244.1% from HKD 4.3 million in the same period of 2019[12] - Self-operated retail sales amounted to HKD 98.5 million, representing approximately 72.5% of total revenue, down 10.5% from HKD 110.1 million in 2019[24] - Revenue from distribution business decreased to HKD 8,520,000 from HKD 14,895,000, a decline of 42.5%[109] - Revenue from other sales, including wholesale to clients in China, Hong Kong, and Macau, decreased to HKD 14,040,000 from HKD 54,565,000, a drop of 74.3%[109] Cost Management - The sales and distribution costs decreased by 14.2% to HKD 64.9 million, down from HKD 75.7 million in the previous year[32] - Financing costs decreased to HKD 630,000 from HKD 864,000, a reduction of 27%[116] Strategic Initiatives - The company launched new products including the "御蜓暖芯被" and 3MTM柔彩絲系列床品套件, focusing on eco-friendly and health-oriented features[16] - The company aims to strengthen its brand leadership by promoting CASA-V products with antibacterial and air-purifying features[17] - The company is focusing on improving its product mix by increasing the proportion of imported goods to capture a larger share of the high-end market[16] - The group plans to close approximately 10 to 15 underperforming physical retail locations in the second half of 2020 to improve resource allocation efficiency[21] - The group aims to leverage e-commerce and commercial client channels to offset expected declines in physical retail revenue[20] Impact of COVID-19 - The export business faced challenges due to the pandemic, with some clients delaying orders until normal economic activities resume[13] - The company is closely monitoring the potential impact of COVID-19 on its financial performance and has taken preventive measures to mitigate risks[47] - The COVID-19 pandemic continues to disrupt the group's business and economic activities, but management expects any reasonable fluctuations in performance due to the pandemic will not significantly impact cash flow[160] Shareholder Information - The board did not recommend an interim dividend for the six months ended June 30, 2020, compared to HKD 0.02 per share for the same period in 2019[48] - The company has adopted a share option scheme, granting options to subscribe for a total of 5,250,000 shares at an exercise price of HKD 1.18, with the options exercisable from April 17, 2018, to April 16, 2021[55] - As of June 30, 2020, none of the options under the share option scheme had been exercised[55] - The company repurchased 578,000 ordinary shares in July 2020 at a total purchase price of HKD 370,470, with a maximum price of HKD 0.660 and a minimum price of HKD 0.470 per share[53] Financial Position - As of June 30, 2020, total bank borrowings amounted to approximately HKD 4.4 million, down from HKD 6.4 million as of December 31, 2019, with an actual annual interest rate of 5.72%[37] - The company maintained a current ratio of 4.3 as of June 30, 2020, compared to 3.6 as of December 31, 2019, indicating improved liquidity[35] - Total liabilities decreased to HKD 81.5 million as of June 30, 2020, from HKD 105.0 million as of December 31, 2019[35] - The total assets decreased to HKD 402,123,000 from HKD 416,002,000, reflecting a decline of approximately 3.5%[89] - The total equity attributable to owners decreased to HKD 393,158,000 from HKD 406,268,000, a reduction of about 3.2%[89] Employee Information - Employee headcount decreased to 593 as of June 30, 2020, from 636 in 2019, with total employee costs amounting to HKD 42.5 million, down from HKD 49.9 million[51] - The total remuneration for directors and key management personnel for the six months ended June 30, 2020, was HKD 6,265,000, a decrease from HKD 7,201,000 in 2019[157]