Investment Rating - The report maintains a "BUY" rating for TK Group with a target price (TP) adjusted to HK$2.79, based on an 8.2x FY24E P/E ratio, which aligns with its 5-year historical forward P/E [2][20][34]. Core Insights - Management expressed a positive outlook on order restocking, new client acquisitions, and capacity expansion in Vietnam and Huizhou, particularly in the automotive, medical device, and e-cigarette sectors. Following a challenging FY23, net profit is expected to grow by 38% and 19% year-on-year in FY24 and FY25, respectively, driven by new orders and operational efficiency improvements [2][38]. - The stock is currently trading at 4.4x FY24E P/E with a yield of 10%, indicating an attractive risk/reward profile [2][38]. Financial Summary - FY23 revenue and net profit declined by 15% and 10% year-on-year, respectively, primarily due to weak demand in consumer electronics and communications, although the automotive and e-cigarette segments showed growth [38]. - Revenue projections for FY24E are set at HK$2,318 million, with a year-on-year growth of 19%, and net profit is expected to reach HK$282 million, reflecting a 38% increase [9][10][38]. - Gross profit margin improved to 26.4% in FY23 from 23.7% in FY22, attributed to favorable foreign exchange rates and easing supply chain issues in the automotive sector [38]. Revenue Breakdown - The revenue mix indicates a significant contribution from various segments, with mobile and wearable devices, medical devices, and automotive sectors being key growth drivers [6][9][10]. - The automotive segment is projected to grow by 25% in FY24E, while the e-cigarette segment is expected to continue its strong performance with a 40% growth forecast [9][10][38]. Valuation Metrics - The report highlights a P/E ratio of 4.4x for FY24E, which is considered attractive compared to historical averages, alongside a dividend payout ratio of 83% [2][38]. - The expected return on equity (ROE) is projected to improve to 16.0% in FY24E, reflecting enhanced profitability and operational efficiency [10][15][38].

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 1,945,721, a decrease of 14.7% from HKD 2,279,321 in 2022[4] - Net profit for the year was HKD 204,191, down 10.0% from HKD 226,909 in the previous year[4] - Basic earnings per share decreased to HKD 0.25 from HKD 0.27, representing a decline of 7.4%[4] - The company's gross profit for the year was HKD 512,793 thousand, down from HKD 541,275 thousand in 2022[52] - The net profit for 2023 was HKD 204,191,000, a decrease of 10% from HKD 226,909,000 in 2022[56] - Basic earnings per share for 2023 was HKD 0.25, down from HKD 0.27 in 2022[56] - The group's revenue for the year ended December 31, 2023, was approximately HKD 1,945.7 million, a decrease of about HKD 333.6 million or 14.6% compared to HKD 2,279.3 million in 2022[71] - Gross profit for the year was approximately HKD 512.8 million, a decrease of about HKD 28.5 million or 5.3% from HKD 541.3 million in 2022, with a gross margin increase of 2.7 percentage points to 26.4%[73] - The net profit for the year was approximately HKD 204.2 million, a decrease of 10.0% from HKD 226.9 million in 2022, with a net profit margin increase of 0.5 percentage points to 10.5%[79] Dividends - Proposed final dividend per share is HKD 0.075, down from HKD 0.086 in 2022, and a special dividend of HKD 0.10 is proposed[4] - The company reported a basic earnings per share of HKD 7.5 for the final dividend, down from HKD 8.6 in 2022[37] - Total dividends paid in 2023 were HKD 94,991,000, maintaining the same amount as in 2022[58] - The board proposed a final dividend of HKD 0.075 per share and a special dividend of HKD 0.10 per share, subject to shareholder approval, totaling HKD 62,494,500 and HKD 83,326,000 respectively[159] - The total dividend for the year ended December 31, 2023, including an interim dividend of HKD 0.028 per share, amounts to HKD 0.203 per share[159] Assets and Liabilities - Current assets net value increased to HKD 1,193,086 from HKD 1,090,873, reflecting a growth of 9.4%[4] - Total liabilities decreased from HKD 1,091,928 thousand in 2022 to HKD 766,414 thousand in 2023, representing a reduction of approximately 29.7%[24] - The total equity and liabilities amounted to HKD 2,451,591 thousand as of December 31, 2023, compared to HKD 2,697,523 thousand in 2022[24] - The total equity of the group as of December 31, 2023, was approximately HKD 1,685.2 million, compared to HKD 1,605.6 million on December 31, 2022[109] Operational Efficiency - Gross margin improved to 26.4% from 23.7% in 2022, while net margin increased to 10.5% from 10.0%[4] - The current ratio improved to 276.0% from 219.1%, indicating better short-term financial health[4] - The return on equity decreased to 12.1% from 14.1%, while return on assets slightly decreased to 8.3% from 8.4%[4] - Inventory turnover days increased to 102 days from 98 days, indicating a slower inventory movement[4] - Trade receivables turnover days increased to 58 days from 54 days, while trade payables turnover days increased to 61 days from 57 days[4] - The group’s inventory turnover days as of December 31, 2023, were 102 days, an increase of 4 days from 2022, mainly due to an increase in long production cycle orders[110] - The group reported a trade receivables turnover of 58 days for the year ended December 31, 2023, an increase of 4 days compared to 2022, primarily due to sales growth to customers with credit terms between 60 to 90 days[137] - The trade payables turnover was 61 days for the year ended December 31, 2023, also an increase of 4 days compared to 2022, as some suppliers extended credit terms due to the group's good reputation[138] Business Segments - The injection molding component manufacturing business declined by 20.7% due to reduced overseas consumer demand, while the mold manufacturing business recorded a growth of 2.2% as global supply chains returned to normal[42] - Revenue from the automotive segment increased by 22.7% to HKD 368.7 million in 2023, compared to HKD 300.5 million in 2022[63] - Revenue from the injection molding components manufacturing segment decreased by 20.7% to HKD 1,326.1 million in 2023, compared to HKD 1,673.1 million in 2022[68] - The revenue from the mold manufacturing segment was approximately HKD 619.6 million, an increase of about HKD 13.4 million or 2.2% from HKD 606.2 million in 2022, accounting for approximately 31.8% of total revenue[80] - The revenue from the medical and personal care segment decreased by 18.0% due to reduced orders from personal care brand customers amid high inflation and interest rates[83] - The revenue from the electronic vaporizer segment increased by 63.4%, reflecting strong demand in the overseas market[83] Strategic Initiatives - The company plans to continue focusing on high-quality and cost-effective design solutions in the mold manufacturing sector, particularly for automotive and high-end consumer electronics[45] - The company aims to enhance product precision and expand its customer base in high-end sectors such as medical and consumer electronics[67] - The group plans to invest in capacity expansion and projects to capture potential growth in the future, primarily funded by internal resources[143] - The group has established an overseas production base in Vietnam to serve electronic consumer brand clients, aiming to expand production capacity gradually based on market demand[149] - The group is exploring the establishment of another production base in North America through acquisitions or investments to provide lower tariff-cost products and services[149] - The group is actively preparing to launch new products, integrating silicone with traditional injection molding technology to provide diverse product solutions[121] - The group plans to continue its diversification strategy and optimize internal organizational structure to enhance operational efficiency in response to economic uncertainties[123] Corporate Governance - The group emphasizes the importance of good corporate governance to maintain investor confidence and ensure sustainable growth[152] - The group has adhered to all provisions of the corporate governance code during the year ended December 31, 2023[153] Other Information - The company has adopted revised standards effective from January 1, 2023, which did not have a significant impact on the consolidated financial statements[28] - The company will suspend share transfer registration from May 28, 2024, to May 31, 2024, to determine eligibility for attending the annual general meeting and voting[160] - The company will also suspend share transfer registration from June 6, 2024, to June 7, 2024, for the proposed final and special dividends[166] - The annual report for the year ending December 31, 2023, will be sent to shareholders and published on the company's website[167]

Financial Performance - Profit for the period for the first half of 2023 was approximately HK$54.7 million, representing a decrease of approximately HK$3.8 million or 6.4% from approximately HK$58.5 million for the corresponding period in 2022[15]. - The Group's revenue for the first half of 2023 was HK$855.9 million, a decrease of 11.7% compared to HK$969.2 million in the same period of 2022[58]. - Profit for the period was HK$54.7 million, down 6.4% from HK$58.5 million in the first half of 2022[63]. - Basic earnings per share decreased to 6.6 HK cents, down 5.7% from 7.0 HK cents in the same period last year[63]. - Other income for the first half of 2023 was approximately HK$13.3 million, a decrease of 48.8% from HK$26.0 million in the same period of 2022[93]. - Net finance income for the first half of 2023 was approximately HK$3.8 million, down from HK$10.7 million in the same period of 2022, mainly due to increased interest expenses[95]. Profitability Metrics - The Group's gross profit margin for the first half of 2023 was 29.2%, an increase of 6.6 percentage points from 22.6% in the same period of 2022, due to cost reduction and efficiency improvement measures implemented over the past two years[2]. - The Group's gross profit increased by 10.4% to HK$199.7 million, with a gross profit margin rising by 4.6 percentage points to 23.3%[66]. - The gross profit margin increased to 23.3%, up 4.6 percentage points from 18.7% in the corresponding period last year, due to enhanced capabilities and cost reduction measures[112]. - The gross profit margin for the mold fabrication segment increased by 6.6 percentage points to 29.2% in the first half of 2023, up from 22.6% in the same period of 2022[90]. - The gross profit margin for the plastic components manufacturing segment rose by 3.4 percentage points to 20.7%, attributed to cost reduction efforts and falling raw material prices[92]. Revenue Breakdown - The Group's sales in the mobile and wearable devices and smart home sectors decreased by 24.4% and 38.6%, respectively, compared to the same period last year[11]. - Revenue from the mold fabrication business increased by approximately 6.5% to HK$263.2 million, accounting for approximately 30.8% of the Group's total revenue[70]. - Revenue from the plastic components manufacturing segment generated approximately HK$592.7 million, down 17.9% year-on-year, accounting for about 69.2% of the Group's total revenue[86]. - Revenue from the medical and personal health care segment experienced an 18.4% decline in revenue, primarily due to reduced orders from customers in the U.S. and Europe, although domestic medical customer revenue increased[87]. - Revenue from electronic vaporizer products increased by 93.2% year-on-year, reflecting strong demand in overseas markets[109]. Equity and Financial Position - Total equity of the Group as of June 30, 2023, was approximately HK$1,526.4 million, down from HK$1,605.6 million as of December 31, 2022[16]. - The gearing ratio as of June 30, 2023, was approximately 11.3%, a decrease from 21.6% as of December 31, 2022, primarily due to a reduction in bank borrowings[16]. - Net current assets as of June 30, 2023, were HK$1,050.7 million, compared to HK$1,090.9 million at the end of 2022[52]. - The current ratio as of June 30, 2023, was approximately 231.3%, an increase from 219.1% as of December 31, 2022[131]. - The Group maintained a high level of net cash at HK$935.7 million, a year-on-year increase of 24.6%[68]. Operational Efficiency - The Group is focusing on cost reduction and efficiency improvement measures to enhance production efficiency and management effectiveness[63]. - The Group has implemented employee training programs to enhance productivity in response to various job requirements[10]. - The Group is focusing on internal optimization, technological upgrades, and adopting Industry 4.0 to enhance operational efficiency and reduce costs[186]. - The Group's inventory turnover days decreased to 116 days, a reduction of 7 days compared to the same period last year, reflecting improved logistics and transportation[105]. - Trade receivable turnover days decreased to 61 days, down 2 days from the previous year, indicating effective credit policies[139]. Market and Strategic Developments - The Group has successfully established overseas production bases in Vietnam to provide supply solutions outside of China and is actively developing new customers in Southeast Asia and Europe[21]. - The newly developed medical business has gradually become a new growth point for the Group, focusing on innovative product solutions using silicone integration technology[21]. - The Group aims to develop optical silicone components to meet the demand for light output capabilities in Mini LED display parts, targeting a "blue ocean" market[21]. - The Group's mold business benefited from the gradual recovery in the automotive industry, with a significant increase in order volume[72]. - The group plans to invest in capacity expansion and projects to capitalize on potential growth opportunities in the coming years[146]. Shareholder Information - As of June 30, 2023, Eastern Mix holds 357,014,000 shares, representing 42.85% of the issued share capital[192]. - Lead Smart Development Limited owns 89,400,000 shares, accounting for 10.73% of the issued share capital[192]. - Cheer Union Development Ltd. has 55,620,000 shares, which is 6.67% of the issued share capital[192]. - Normal Times International Limited holds 53,640,000 shares, representing 6.44% of the issued share capital[192]. - FMR LLC has an interest in controlled corporations amounting to 49,212,000 shares, or 5.91% of the issued share capital[192]. - FIL Limited and its affiliates collectively hold 249,726,000 shares, representing 9.99% of the issued share capital[192]. - Brown Brothers Harriman & Co. holds 42,716,200 shares, which is 5.13% of the issued share capital[192]. - The company purchased 1,930,000 shares for its share award scheme during the six months ended June 30, 2023[196]. Compliance and Governance - The company complied with all code provisions as set out in the CG Code during the six months ended June 30, 2023[199]. - No major subsequent events affecting the Group have occurred since the end of the period[197].

Financial Performance - For the first half of 2023, the company's injection molding component manufacturing business gross margin increased by 3.4 percentage points to 20.7% compared to 17.3% in the same period of 2022[28]. - Other income for the first half of 2023 was approximately HKD 13.3 million, a decrease of about HKD 12.7 million or 48.8% from HKD 26.0 million in the same period of 2022[30]. - Sales expenses for the first half of 2023 were approximately HKD 28.1 million, representing 3.3% of total revenue, a decrease of about HKD 4.9 million or 14.7% compared to HKD 33.0 million in the same period of 2022[31]. - The company reported a total revenue of HKD 855.9 million for the first half of 2023, compared to HKD 969.2 million in the same period of 2022[8]. - For the first half of 2023, the company's revenue was HKD 855.9 million, a decrease of 11.7% compared to HKD 969.2 million in the same period of 2022[54]. - The injection molding component manufacturing segment's revenue was approximately HKD 592.7 million, down 17.9% from HKD 722.0 million in the first half of 2022, accounting for about 69.2% of total revenue[57]. - The company reported a profit of approximately HKD 54.7 million for the first half of 2023, a decrease of 6.4% from HKD 58.5 million in the same period of 2022[63]. - The group recorded a profit of approximately HKD 54.7 million for the period, a decrease of 6.4% compared to HKD 58.5 million in the same period of 2022, with a net profit margin increase of 0.4 percentage points to 6.4%[171]. - Revenue for the six months ended June 30, 2023, was HKD 855,914,000, a decrease of 11.7% compared to HKD 969,182,000 for the same period in 2022[104]. - Basic earnings per share decreased to 6.6 HK cents from 7.0 HK cents year-on-year[110]. Cost Management and Margins - The company's tax expense for the first half of 2023 was approximately HKD 8.4 million, with an effective tax rate of 13.4%, compared to 11.2% in the same period of 2022[33]. - Gross margin improved to 23.3% from 18.7% year-on-year, indicating better cost management[104]. - Net profit margin increased to 6.4% from 6.0% in the previous year, reflecting enhanced operational efficiency[104]. - The gross profit margin for the mold manufacturing segment was 29.2%, up 6.6 percentage points from 22.6% in the same period of 2022[59]. - The injection molding division's gross margin improved to 20.7% in the first half of 2023, up from 17.3% in the same period of 2022, attributed to cost reduction efforts and a decline in raw material prices[141]. Revenue Trends and Market Demand - The company experienced a significant drop in external customer revenue in the injection molding component manufacturing segment, from HKD 722.0 million in 2022 to HKD 592.7 million in 2023[8]. - The company noted that 43% of its revenue was accumulated in the first half of the year, while 57% was accumulated in the second half, indicating a seasonal demand pattern[34]. - The company experienced a decline in demand for non-essential consumer products, with mobile and wearable devices down 24.4% and smart home products down 38.6% year-on-year[139]. - Mobile and wearable devices revenue decreased by 24.4% to HKD 215.7 million from HKD 285.3 million[198]. - Medical and personal care segment revenue declined by 18.4% to HKD 155.7 million from HKD 190.8 million[198]. - Automotive segment revenue increased by 21.3% to HKD 162.2 million from HKD 133.7 million[198]. - Smart home segment revenue decreased by 38.6% to HKD 92.4 million from HKD 150.4 million[198]. - Commercial communication equipment revenue fell by 30.5% to HKD 62.4 million from HKD 89.8 million[198]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.028 per share, amounting to HKD 23.3 million, consistent with the interim dividend declared in 2022[24]. - The company recommended an interim dividend of HKD 2.8 cents per share, unchanged from the previous year[104]. Operational Efficiency - Inventory turnover days decreased by 7 days to 116 days, and trade receivables turnover days decreased by 2 days to 61 days in the first half of 2023[55]. - Inventory turnover days decreased to 116 days from 123 days, suggesting improved inventory management[104]. - Trade receivables turnover days improved to 61 days from 63 days, indicating faster collection of receivables[104]. - Current ratio increased to 231.3% from 219.1%, showing stronger liquidity position[104]. - Quick ratio improved to 178.8% from 176.3%, indicating better short-term financial health[104]. Strategic Focus and Future Outlook - The company anticipates that the consumer sentiment will significantly improve in the second half of 2023, with increased order demand and new projects contributing to enhanced capacity utilization[28]. - The company is focusing on expanding into the domestic medical technology and innovative technology sectors, leveraging its experience with Silicon Valley tech firms[74]. - The company plans to focus on developing domestic clients, particularly in the medical innovation technology sector, to ensure stable business growth amid challenges in overseas markets[139]. - The group aims to develop functional products that meet the needs of Mini LED display components, targeting the "blue ocean" market[190]. - The group has successfully established overseas production bases in Vietnam, actively expanding into Southeast Asia and Europe and the US markets[190]. - The newly developed medical business has gradually become a new growth point for the group, enhancing its competitive advantage through innovative products that integrate silicone and traditional injection molding technology[190]. - The company focuses on developing high-precision molds and expanding its customer base in sectors like medical and consumer electronics[200]. - The company aims to enhance product quality and technical solutions to improve production efficiency for clients[200]. - The company is committed to developing multinational Chinese brand clients in response to domestic circulation policies[200]. Debt and Liabilities - As of June 30, 2023, the company's total borrowings amounted to HKD 173.2 million, a decrease from HKD 347.0 million as of December 31, 2022[22]. - The company's total liabilities amounted to 342,548 thousand HKD, a slight decrease from 348,601 thousand HKD as of December 31, 2022[130]. - The company’s bank borrowings without collateral were 108,113 thousand HKD as of June 30, 2023, down from 149,327 thousand HKD as of December 31, 2022[131]. Employee and Training Initiatives - As of June 30, 2023, the company had a total of 3,407 full-time employees, an increase from 3,313 as of December 31, 2022[70]. - The group has implemented employee training programs to enhance productivity in response to various job requirements[187].

Revenue Performance - Revenue from mold fabrication in 2022 was HK$606,235,000, a decrease from HK$706,025,000 in 2021[21] - Revenue from plastic components manufacturing in 2022 was HK$1,673,086,000, slightly down from HK$1,698,373,000 in 2021[21] - Total revenue for 2022 was HK$2,279,321,000, compared to HK$2,404,398,000 in 2021[21] - Revenue for 2022 was HK$2,279.3 million, a year-on-year decrease of 5.2%[31] - Total revenue for 2022 was HK$2,279.3 million, a year-on-year decrease of 5.2% compared to HK$2,404.4 million in 2021[61] - Revenue from the mold fabrication business decreased by 14.1% due to instability in the automobile supply chain[61] - Revenue from mobile phones and wearable devices decreased by 19.4% to HK$648.2 million, accounting for 28.4% of total revenue[82] - Medical and personal health care revenue increased by 3.6% to HK$426.5 million, representing 18.7% of total revenue[82] - Smart home revenue grew by 7.7% to HK$330.6 million, contributing 14.5% to total revenue[82] - Automobiles revenue declined by 33.5% to HK$300.5 million, making up 13.2% of total revenue[82] - Commercial telecommunications equipment revenue surged by 72.1% to HK$293.1 million, accounting for 12.9% of total revenue[82] - Mold fabrication segment revenue decreased by 14.1% to HK$606.2 million, representing 26.6% of total revenue[87] - Plastic component manufacturing revenue slightly decreased by 1.5% to HK$1,673.1 million, accounting for 73.4% of total revenue[91] - Total revenue for 2022 was HK$2,279.3 million, a year-on-year decrease of 5.2%[98] - Mold fabrication business revenue decreased by 14.1% due to automotive supply chain instability[98] - Plastic components manufacturing revenue slightly decreased by 1.5% to HK$1,673.1 million, accounting for 73.4% of total revenue[109] - Revenue from external customers of the plastic components manufacturing segment decreased by HK$25.3 million (1.5%) to HK$1,673.1 million in 2022 compared to HK$1,698.4 million in 2021[117] - Revenue from the mold fabrication segment decreased by HK$99.8 million (14.1%) to HK$606.2 million in 2022 from HK$706.0 million in 2021, affected by supply chain disruptions and semiconductor shortages[142] - Revenue for 2022 was HK$2,279.3 million, a decrease of HK$125.1 million or 5.2% compared to 2021[188] - The company's revenue for the year ended December 31, 2022, was approximately HKD 2,279.3 million, a decrease of HKD 125.1 million or 5.2% compared to 2021[197] Profit and Profit Margins - Net profit for 2022 was HK$227 million, maintaining above HK$200 million for the past four years[26] - Net profit margin remained above 10% despite challenging business conditions[26] - Profit for the year was HK$226.9 million, a decrease of 19.6% compared to the previous year[31] - Net profit margin decreased to 10.0% from 11.7% in 2021[31] - Profit for 2022 was HK$226.9 million, a decrease of 19.6% from the previous year[67] - Net profit for the year dropped by 19.6% to HK$226.9 million, with net profit margin decreasing by 1.7 percentage points to 10.0%[85] - Profit for 2022 was HK$226.9 million, a decrease of HK$55.5 million or 19.6% compared to 2021[158][168] Gross Profit and Margins - Gross profit margin remained stable at 23.7%[31] - Gross profit margin for the first half of 2022 fell to 18.7% from 23.7% in the same period last year due to semiconductor shortages[84] - Full-year gross profit decreased by 4.9% to HK$541.3 million, with gross profit margin remaining stable at 23.7%[84] - Gross profit margin for the mold fabrication segment decreased by 0.7 percentage points to 26.4%[106] - Gross profit margin for plastic components manufacturing increased by 0.6 percentage points to 22.8%[113] - Gross profit for 2022 was HK$541.3 million, a decrease of HK$27.9 million (4.9%) from HK$569.2 million in 2021, with gross profit margin remaining stable at 23.7%[119] - The mold fabrication segment's gross profit margin decreased by 0.7 percentage points to 26.4% in 2022 from 27.1% in 2021, impacted by global semiconductor shortages and Euro depreciation[120] - The plastic components manufacturing segment's gross profit margin increased by 0.6 percentage points to 22.8% in 2022 from 22.2% in 2021, driven by improved order stability and internal production efficiency[146] - Gross profit for 2022 was HK$541.3 million, a decrease of HK$27.9 million or 4.9% compared to 2021, with a gross margin of 23.7%, unchanged from 2021[189] Cash and Financial Position - Net cash as of 31 December 2022 was HK$924,579,000, up from HK$864,067,000 in 2021[16] - Net cash increased by 7.0% to HK$924.6 million, maintaining a strong cash position[101] - The Group's net current assets as of 31 December 2022 were HK$1,090.9 million, with total cash and bank balances of HK$1,271.6 million, including HK$1,114.5 million in cash and cash equivalents[158][169] - The Group's current ratio as of 31 December 2022 was 219.1%, a decrease of 1.6 percentage points from 2021[160][182] - The Group's total equity as of 31 December 2022 was HK$1,605.6 million, with a gearing ratio of 21.6%, compared to HK$1,621.9 million and 20.9% in 2021[134] - The Group's total equity as of 31 December 2022 was HK$1,605.6 million, with a debt-to-equity ratio of 21.6%, up from 20.9% in 2021[172] Dividends - The company proposed a final dividend of 8.6 HK cents per share, maintaining the same level as the previous year[31] - The dividend payout ratio for 2022 was 41.9%, with a total annual dividend of 11.4 HK cents per share[50] - The Board recommended a dividend payout ratio of 41.9%, with a final dividend of HK8.6 cents per share and a total dividend payout of HK11.4 cents per share for the year[67] Business Expansion and Strategy - The company expects recovery and rapid growth in 2023 as the impact of the epidemic dissipates[23] - The company has invested in new products and industries, exploring new business directions for sustainable growth[26] - The company established a production base in Vietnam to meet increasing demand and expand capacity[54] - The company is focusing on developing domestic leading enterprises to tap into the huge domestic demand market in China[54] - The company continues to seek suitable acquisition or investment targets to expand its business scope and industrial advantages[54] - The company maintains a strong focus on innovation and change, aiming to strengthen its position in the plastic injection molding industry chain[55] - The company aims to double the scale of its plastic injection molding business as part of its five-year plan set in 2020[70] - The company successfully entered the medical testing consumables and electronic atomizers industries, which have low seasonal and economic cyclical sensitivity[71] - The company has developed a product solution integrating liquid silicone and traditional plastic injection molding technology, improving product design, comfort, and functionality[71] - The company has established a production base in Vietnam and plans to expand capacity to meet increasing demand[56] - The company is focusing on developing domestic market opportunities in China and supporting Chinese brands in international markets[56] - The company is actively seeking acquisition or investment opportunities to expand its business and industry advantages[56] Segment Performance - Commercial telecommunications equipment segment revenue increased significantly by 72.1% year-on-year[111] - Electronic atomizers segment revenue grew by 27.0% year-on-year[111] - Smart home and medical & personal care segments saw steady revenue growth of 7.7% and 3.6% respectively[112] - The commercial communication equipment segment revenue increased significantly by 72.1% year-on-year, driven by successful customer business transformation and new product launches[138] - The smart home segment and medical/personal health care segment achieved stable revenue growth, with year-on-year increases of 7.7% and 3.6% respectively[195] Expenses and Other Financial Metrics - Administrative expenses for 2022 were HK$280.6 million, a 13.6% increase from 2021, accounting for 12.3% of total revenue, up 2.0 percentage points[152][154] - Sales expenses for the year ended December 31, 2022, were approximately HKD 67.0 million, a decrease of HKD 12.3 million or 15.4% compared to 2021, accounting for 2.9% of total revenue, down 0.4 percentage points from 2021[198] - Other income for 2022 decreased by HK$7.3 million (14.0%) to HK$44.6 million from HK$51.9 million in 2021, mainly due to reduced sales of scrap and surplus materials[147] - Net finance income for 2022 decreased by HK$4.7 million (26.4%) to HK$13.4 million from HK$18.1 million in 2021, primarily due to increased interest expenses[131] - Trade receivable turnover days increased to 54 days in 2022, up 4 days from 2021, due to increased sales to domestic customers with credit periods of 60 to 90 days[160][165] - Trade payable turnover days decreased to 57 days in 2022, down 5 days from 2021, due to reduced procurement and lower trade payables balance[160][181] - The company's inventory turnover days remained unchanged at 98 days compared to 2021[200]

Financial Performance - Total revenue for 2022 was HKD 2,279,321,000, a decrease of 5.2% from HKD 2,404,398,000 in 2021[7] - Net profit for 2022 was HKD 226,909,000, down 19.6% from HKD 282,383,000 in 2021[7] - Basic earnings per share for 2022 was HKD 0.27, compared to HKD 0.34 in 2021, reflecting a decline of 20.6%[4] - Gross profit for the year was HKD 541,275,000, compared to HKD 569,167,000 in 2021, reflecting a decline of 4.9%[31] - Other income for the year ended December 31, 2022, was approximately HKD 44.6 million, a decrease of 14.0% from HKD 51.9 million in 2021[80] - Profit for the year ended December 31, 2022, was approximately HKD 226.9 million, down 19.6% from HKD 282.4 million in 2021[136] Profitability Ratios - Net profit margin decreased to 10.0% in 2022 from 11.7% in 2021[7] - Return on equity (ROE) fell to 14.1% in 2022 from 17.4% in 2021[7] - The gross profit margin for the injection molding business improved by 0.6 percentage points to 22.8% compared to 22.2% in 2021[74] Assets and Liabilities - Total assets decreased to HKD 2,697,523,000 in 2022 from HKD 2,851,160,000 in 2021[22] - The group reported a total debt of HKD 1,091,928,000, down 11.2% from HKD 1,229,241,000 in the previous year[24] - The group’s total liabilities decreased by 11.2% from HKD 1,229,241,000 in 2021 to HKD 1,091,928,000 in 2022[24] - The company’s total equity and liabilities amounted to HKD 2,697,523,000, down from HKD 2,851,160,000 in 2021, reflecting a decrease of 5.4%[24] Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 1,114,456,000 in 2022 from HKD 1,027,568,000 in 2021[22] - The group maintained a strong financial position with net current assets of approximately HKD 1,090.9 million as of December 31, 2022, compared to HKD 1,163.0 million in 2021[85] - Cash and bank balances totaled approximately HKD 1,271.6 million as of December 31, 2022, up from HKD 1,203.2 million in 2021[85] - Current ratio slightly decreased to 219.1% in 2022 from 220.7% in 2021[7] Dividends - Proposed final dividend per share remains unchanged at HKD 0.086 for both 2022 and 2021[7] - The company declared a final dividend of HKD 8.6 cents per share for the year, totaling approximately HKD 71.66 million, consistent with the previous year's final dividend[55] Revenue Segments - The income from the manufacturing of injection molded components was HKD 1,673,086,000, a slight decrease from HKD 1,698,373,000 in 2021[31] - Revenue from the mold manufacturing segment was approximately HKD 606.2 million, a decline of 14.1% from HKD 706.0 million in 2021[97] - Revenue from the injection molding components manufacturing segment was approximately HKD 1,673.1 million, a slight decrease of 1.5% from HKD 1,698.4 million in 2021[99] - The mobile and wearable devices segment saw a revenue decline of 19.4%, attributed to weak demand in the personal electronics market in Europe and the US[72] - The smart home and personal care segments experienced stable growth, with revenues increasing by 7.7% and 3.6% respectively[73] - The electronic vaporizer segment's revenue grew by 27.0% year-on-year, benefiting from strong demand in the overseas market and recognition of the group's technology by international brand clients[101] Operational Efficiency - The company aims to enhance production efficiency and expects an increase in order volume and new projects as global economic recovery progresses[74] - The group is expanding its production capacity in Vietnam, with the first phase of the injection molding facility successfully launched at the end of 2021, aimed at serving electronic consumer brand clients[125] - The group is actively developing new products that integrate silicone and traditional injection molding technologies, enhancing its product offerings and competitive advantage[125] Corporate Governance - The company has adopted corporate governance policies to enhance transparency and accountability, ensuring compliance with all relevant rules and regulations[176] - The board of directors has reviewed the company's financial performance and compliance with corporate governance codes for the year ended December 31, 2022[177] - The company has implemented appropriate corporate governance measures to support its business operations and growth[176] Future Outlook - The group plans to capitalize on opportunities in the healthcare and smart home sectors, responding to China's strategy to expand domestic demand and develop new consumption models[126] - The group anticipates a moderate global economic growth in 2023, with China's reopening and policy measures boosting domestic demand[127] - The group maintains an optimistic outlook on the injection molding business, aiming for a five-year doubling of sales from 2020 levels[155] - The group will continue to seek suitable acquisition or investment targets to expand its business footprint and diversify its commercial layout[127]

Financial Performance - Revenue for the six months ended June 30, 2022, was HK$969,182,000, a decrease of 5.1% from HK$1,020,829,000 in 2021[21]. - Profit attributable to owners of the Company was HK$58,452,000, down 49.3% from HK$115,191,000 in the previous year[21]. - Basic earnings per share decreased to 7.0 HK cents, compared to 13.9 HK cents in 2021[21]. - Proposed interim dividend per share is 2.8 HK cents, down from 5.4 HK cents in the prior year[21]. - Gross profit margin decreased to 18.7%, down from 23.7% in 2021[21]. - Net profit margin fell to 6.0%, compared to 11.3% in the previous year[21]. - Return on equity decreased to 3.8%, down from 7.9% in 2021[21]. - Gross profit decreased by 25.3% to HK$180.9 million, with a gross profit margin of 18.7%, down 5.0 percentage points from 23.7% in the first half of 2021[34]. - Profit attributable to owners of the Company was HK$58.5 million, a decrease of approximately 49.3% compared to HK$115.2 million in the first half of 2021[36]. - Basic earnings per share was HK7.0 cents, down 49.6% from HK13.9 cents in the same period last year[36]. - Other income for the first half of 2022 was approximately HK$26.0 million, a decrease of approximately HK$1.2 million or 4.3% from HK$27.2 million in the same period of 2021[67]. - Selling expenses for the first half of 2022 were approximately HK$33.0 million, a decrease of approximately HK$6.2 million or 15.9% compared to HK$39.2 million in the corresponding period of 2021[72]. - Administrative expenses increased to approximately HK$129.0 million, an increase of approximately HK$5.4 million or 4.4% from HK$123.6 million in the first half of 2021[74]. - Net finance income for the first half of 2022 was approximately HK$10.7 million, an increase of approximately HK$1.3 million or 14.1% from HK$9.4 million in the same period of 2021[78]. - Total comprehensive loss for the period amounted to HK$10,994,000, contrasting with a total comprehensive income of HK$137,235,000 in the previous period[193]. - Operating profit fell to HK$54,673,000, down from HK$118,085,000, indicating a decrease of approximately 53.7%[193]. Revenue Breakdown - Revenue from the mold fabrication business decreased by 32.4%, while revenue from plastic components manufacturing increased by 10.2%[29]. - The revenue from the mold fabrication business for the first half of 2022 was approximately HK$247.2 million, a decrease of 32.4% compared to HK$365.5 million in the same period last year, accounting for 25.5% of the Group's total revenue[41][44]. - The revenue from the plastic components manufacturing business segment was approximately HK$722.0 million, representing a year-on-year increase of 10.2%, and accounted for 74.5% of the Group's total revenue[47][49]. - Revenue from the smart home segment increased by 25.3% year-on-year, driven by strong demand from leading global brand customers[53][55]. - The electronic atomizers segment saw a revenue increase of 57.4% year-on-year, supported by the booming overseas e-cigarette market[53][55]. - The Group maintained stable revenue growth in the mobile phones and wearable devices segments, with increases of 2.0% and 1.1% respectively over the same period last year[52][55]. Assets and Liabilities - Net current assets as of June 30, 2022, were HK$1,060,327,000, a decrease from HK$1,162,975,000 at the end of 2021[23]. - Total assets decreased to HK$2,631,865,000 from HK$2,851,160,000, reflecting a decline of about 7.7%[199]. - Total equity attributable to owners of the Company decreased to HK$1,535,951,000 from HK$1,621,919,000, a decrease of approximately 5.3%[199]. - Cash and cash equivalents decreased to HK$884,132,000 from HK$1,027,568,000, indicating a decline of about 13.9%[199]. - Trade and other receivables decreased to HK$350,930,000 from HK$417,060,000, reflecting a decline of approximately 15.8%[199]. Operational Efficiency - Inventory turnover days increased by 4 days to 123 days, and trade receivable turnover days increased by 7 days to 63 days due to logistics issues[40]. - The current ratio remained stable at 219.7%, slightly down from 220.7% at the end of 2021[23]. - Gearing ratio improved to 19.7%, down from 20.9% in the previous year[23]. - Trade payable turnover days decreased to 66 days, down by 10 days compared to 2021, attributed to a slowdown in global economic recovery and reduced procurement[103][110]. - The Group is implementing various cost control measures and promoting process optimization and automation to enhance operational efficiency amid macroeconomic challenges[145][146]. Future Outlook - The Group expects semiconductor shortages to alleviate in the second half of the year, which is anticipated to improve gross profit margins[65]. - The Group's revenue is expected to be higher in the second half of the year due to seasonal demand patterns, with 42% of revenue accumulated in the first half of the previous financial year[87][89]. - The Group anticipates a less volatile business environment in the second half of 2022, supporting normal growth despite global inflation pressures[133]. - The Group is optimistic about its five-year plan to double sales in the injection business through consistent resource input[133]. - The Group plans to invest in capacity expansion and investment projects to capitalize on potential business growth, primarily funded by internal resources[122]. Shareholder Information - As of June 30, 2022, Mr. Li Pui Leung holds a 53.08% interest in the Company, indicating significant insider ownership[152]. - FMR LLC holds an interest in 42,186,899 shares through subsidiaries, representing 5.06% of the company's issued shares[165]. - FIL Limited and its associated entities collectively hold 67,024,000 shares, representing 8.04% of the company's issued shares[165]. - Eastern Mix is the largest shareholder with 352,936,000 shares, accounting for 42.36% of the company[163]. - The company declared an interim dividend of HK2.8 cents per share, totaling approximately HK$23,331,000[166]. - The interim dividend is expected to be paid on September 28, 2022, to shareholders registered by the close of business on September 15, 2022[166]. Corporate Governance - The Company complied with all code provisions set out in the Corporate Governance Code during the period[174]. - The Audit Committee reviewed accounting policies, risk management, internal controls, and financial reporting matters during the Period[190]. - The Company has implemented a written guideline for employees regarding securities trading compliance[182]. - All directors confirmed compliance with the Model Code, except for a one-off non-compliance incident involving the acquisition of 100,000 shares[182]. - The Company has undergone training on directors' duties and corporate governance following the non-compliance incident[182].

Financial Performance - Revenue for 2021 was HK$2,404,398,000, representing a 18.2% increase from HK$2,033,419,000 in 2020[8] - Profit attributable to owners of the Company increased to HK$282,383,000, up 34.6% from HK$209,687,000 in the previous year[8] - Basic earnings per share rose to HK$0.34, compared to HK$0.25 in 2020, reflecting a 36% increase[8] - Proposed final dividend per share increased to 8.6 HK cents, up from 8.0 HK cents in 2020[8] - Gross profit margin decreased to 23.7% from 26.2% in the previous year[8] - Net profit margin improved to 11.7%, up from 10.3% in 2020[8] - Return on equity increased to 17.4%, compared to 15.0% in the previous year[8] - For the year ended December 31, 2021, the total revenue of TK Group amounted to HK$2,404.4 million, representing an increase of 18.2% year on year compared to HK$2,033.4 million in 2020[26]. - The profit attributable to the owners of the Company for the year was HK$282.4 million, a significant increase of 34.7% from HK$209.7 million in 2020[26]. - Gross profit increased by 6.9% to HK$569.2 million, while the gross profit margin decreased by 2.5 percentage points to 23.7%[57] - Profit attributable to owners of the Company rose by 34.7% to HK$282.4 million, with a net profit margin increase of 1.4 percentage points to 11.7%[58] Revenue Segmentation - Revenue from the plastic components manufacturing segment was approximately HK$1,698.4 million, representing a 27.4% increase from HK$1,333.2 million in 2020[70] - The mobile phones and wearable devices segment achieved a revenue increase of 11.7%, driven by strong market reception of wireless headsets and smartphone protective cases[71] - The mold fabrication segment's revenue increased by 0.8% to HK$706.0 million, accounting for approximately 29.4% of the Group's total revenue[64] - The smart home segment recorded a significant year-on-year increase of 51.1% in revenue, indicating strong growth potential for the Group[72][74]. - The medical and personal health care segment experienced a year-on-year revenue decrease of 4.6%, primarily due to semiconductor shortages affecting production orders[73][75]. - The commercial telecommunications equipment segment saw a year-on-year revenue increase of 70.5%, attributed to a shift in supplier share during customer supply chain restructuring[78][79]. Operational Challenges - Despite the recovery, challenges such as supply chain disruptions and rising raw material prices affected the gross profit margin in 2021[27]. - The orders on hand for automobile mold manufacturing were significantly reduced at the end of 2021 compared to the end of 2020 due to supply chain imbalances and chip shortages[27]. - The Group's mold fabrication segment faced challenges in 2021 due to supply chain disruptions, particularly in the automotive sector, which is expected to impact performance in 2022[155]. Strategic Initiatives - The Group plans to actively monitor trends in high-tech consumer products and expand its product customer base to ensure long-term business development[33]. - The Group aims to double the sales of the injection molding business within five years, with the first two years serving as a foundation period for this plan[39]. - The Group is actively seeking suitable acquisition or investment targets to expand its business scope, maintaining a steady pace of investment in recent years[39]. - The Group's customer diversification strategy is seen as advantageous in mitigating business risks across different economic cycles[151]. Financial Position - Current ratio improved to 220.7%, up from 182.5% in 2020, indicating better liquidity[8] - Net current assets increased to HK$1,162,975,000, compared to HK$835,259,000 in 2020[8] - The Group maintained a net cash position of HK$864.1 million, up from HK$786.9 million in 2020, allowing for flexibility in responding to macroeconomic uncertainties[59] - Total equity of the Group as of December 31, 2021, was approximately HK$1,621.9 million, compared to HK$1,394.6 million as of December 31, 2020[110] Management and Governance - Mr. Li Pui Leung, aged 62, is the chairman and one of the founders of the Group, with over 38 years of experience in plastic mold fabrication and injection molding[167]. - Mr. Yung Kin Cheung, aged 60, serves as the CEO and has over 30 years of experience in the industry, responsible for business development and daily operations since 2000[173]. - The Group's executive directors have collectively over 100 years of experience in the plastic mold industry, enhancing strategic management capabilities[174]. - The company emphasizes strong corporate governance with a well-structured board and committees, including audit and remuneration[192]. Market Outlook - The ongoing COVID-19 variants and global supply chain issues are expected to pose risks to economic recovery, but the demand for electronic products remains strong[33]. - The Group anticipates significant contributions to revenue from the smart home and electronic atomizers segments in 2022[154]. - The global market for electronic atomizers is estimated to reach US$22.7 billion by 2024, driven by increasing global demand[154].

Financial Performance - Revenue for the six months ended June 30, 2021, was HK$1,020,829,000, representing a 40% increase from HK$729,393,000 in the same period of 2020[10]. - Profit attributable to owners of the Company increased to HK$115,191,000, up 178% from HK$41,357,000 in the prior year[10]. - Basic earnings per share rose to 13.9 HK cents, compared to 5.0 HK cents in 2020, reflecting a significant improvement in profitability[10]. - Gross profit for the first half of 2021 was approximately HK$242.3 million, an increase of approximately HK$79.8 million or 49.1% from HK$162.5 million in the same period of 2020[52]. - Operating profit rose significantly to HK$118,085, compared to HK$46,651 in the prior year, marking a 153.5% increase[179]. - The total comprehensive income for the period was HK$137,235, compared to HK$16,836 in the same period of 2020[179]. Profitability Metrics - Gross profit margin improved to 23.7%, up from 22.3% in the previous year, indicating better cost management[11]. - Net profit margin increased to 11.3%, compared to 5.7% in 2020, showcasing enhanced operational efficiency[11]. - Return on equity reached 7.9%, up from 3.7% in the prior year, demonstrating effective use of shareholders' funds[11]. - The gross profit margin of the mold fabrication segment increased by 1.7 percentage points to 29.6%[37][38]. - The gross profit margin of the plastic injection business increased by 1.6 percentage points to 20.5%[47]. Liquidity and Financial Position - Current ratio improved to 204.6%, compared to 182.5% at the end of 2020, indicating stronger liquidity[12]. - Net current assets increased to HK$973,517,000, up from HK$835,259,000, reflecting a solid financial position[12]. - Total equity of the Group as of 30 June 2021 was approximately HK$1,466.2 million, compared to HK$1,394.6 million as of 31 December 2020[82]. - The current ratio as of 30 June 2021 was approximately 204.6%, an increase of 22.1 percentage points from 182.5% as of 31 December 2020[74][101]. - The Group's cash and bank balances are primarily denominated in US dollar, RMB, Euro, and HK dollar, with operating cash inflows and outflows mainly in these currencies[104][108]. Revenue Breakdown by Segment - The mobile phones and wearable devices segment generated revenue of HK$279.8 million, accounting for 27.4% of total revenue, while the automobiles segment contributed HK$245.2 million, or 24.0%[25]. - Revenue from the mold fabrication segment increased by approximately 34.6% to HK$365.5 million, accounting for approximately 35.8% of the Group's total revenue[32][35]. - Revenue from the plastic components manufacturing segment amounted to approximately HK$655.3 million, representing a year-on-year increase of 43.1% and accounting for approximately 64.2% of the Group's total revenue[39][41]. - The medical and health care segment reported revenue of HK$188.7 million, representing 18.5% of total revenue, with a year-on-year increase of 34.0%[25]. - The smart home segment recorded a significant year-on-year revenue increase of 67.4%[45]. Operational Efficiency - The Group's orders and production capacity have recovered to levels close to those in 2019, benefiting from the easing of COVID-19 restrictions[19]. - The Group expects continuous improvement in gross profit margin in the second half of 2021 due to enhanced production efficiency and stabilized raw material prices[26]. - The Group's trade receivable turnover days were 56 days, similar to the same period in 2019, and inventory turnover days were reduced to 119 days[31][34]. Shareholder Information - As of June 30, 2021, Mr. Li Pui Leung holds 52.86% of the Company's shares, amounting to 440,458,000 shares[135]. - Substantial shareholders include Jidong Limited and Anling Development Limited, holding 351,058,000 shares and 89,400,000 shares respectively, both controlled by Mr. Li Pui Leung[139]. - The total interim dividend declared is HK$44,996,000, equating to HK5.4 cents per share, expected to be paid on September 15, 2021[147]. Corporate Governance - The company has complied with all code provisions set out in the Corporate Governance Code during the period[150]. - All directors confirmed compliance with the Model Code regarding securities transactions throughout the period[156]. - The company established written guidelines for relevant employees regarding securities transactions, with no noted incidents of noncompliance[157]. Future Outlook and Strategy - The Group plans to invest in capacity expansion and investment projects to capitalize on potential business growth, primarily funded by internal resources[113]. - The management anticipates a strong global economic recovery trend in the second half of the year, despite ongoing COVID-19 threats in Asian countries[129]. - The Group will continue to develop new customers and enhance the automation level of production lines to maintain its industry leadership[129].

Financial Performance - Revenue for 2020 was HK$2,033,419,000, a decrease of 11.5% from HK$2,310,842,000 in 2019[10] - Profit attributable to owners of the Company was HK$209,687,000, down 30.6% from HK$301,803,000 in 2019[10] - Basic earnings per share decreased to HK$0.25 from HK$0.36, representing a decline of 30.6%[10] - Proposed final dividend per share is HK$0.08, down from HK$0.09 in the previous year[10] - Gross profit margin decreased to 26.2% from 28.9%, while net profit margin fell to 10.3% from 13.1%[10] - Return on equity dropped to 15.0% from 25.3%, and return on assets decreased to 8.2% from 13.0%[10] - For the year ended December 31, 2020, total revenue amounted to HK$2,033.4 million, down 12.0% from HK$2,310.8 million in 2019[28] - Profit attributable to the owners of the Company for the year was HK$209.7 million, a decrease of 30.5% compared to HK$301.8 million in 2019[28] - The gross profit of the Group decreased by 20.2% to HK$532.6 million, with a gross profit margin dropping by 2.7 percentage points to 26.2%[39] - The Group's net profit margin decreased by 2.8 percentage points to 10.3% from 13.1% in 2019[40] Liquidity and Financial Position - Net current assets increased to HK$835,259,000 from HK$619,628,000, indicating improved liquidity[11] - Current ratio improved to 182.5% from 170.1%, while quick ratio increased to 138.3% from 125.2%[11] - Gearing ratio remained stable at 20.2%, with a net gearing ratio of 0% due to net cash position[11] - The Group maintained net cash of HK$786.9 million, an increase from HK$493.2 million in 2019, allowing for flexibility in responding to macro uncertainties[41] - Total cash and bank balances increased to approximately HK$1,069.1 million in 2020 from HK$735.1 million in 2019, including cash and cash equivalents of approximately HK$920.4 million[85] - The Group's total equity as of December 31, 2020, was approximately HK$1,394.6 million, compared to HK$1,191.5 million in 2019, with a gearing ratio of approximately 20.2%[91] Operational Performance - The Group's orders were full in the second half of the year, with sales exceeding expectations and returning to the level of the same period of the previous year[28] - The recovery of sales in the second half was attributed to the Group's product and customer diversification strategy[28] - The Group's sales orders on hand at the end of 2020 were higher than at the end of 2019, indicating stable demand despite challenges faced during the year[34] - The Group resumed stable production capacity in the second half of 2020, restoring business to pre-epidemic levels[34] - The Group's order and production plans for Q1 2021 are expected to sustain the momentum from the second half of 2020, with significant improvements in production line utilization anticipated[134] Market and Industry Trends - The demand for some consumer electronics products showed a V-shaped rebound as countries adapted to the new normal[28] - The pandemic has increased consumer demand for electronic products, which is expected to drive the Group's orders in the future[34] - The global consumer electronics industry is expected to maintain growth momentum, benefiting the Group's future orders[34] - The challenges faced in 2020 included supply chain disruptions and sluggish consumer sentiment due to the pandemic[34] Strategic Initiatives - The Board has set a five-year plan to double sales of the injection molding business, focusing on maintaining relationships with existing customers and developing new ones[24] - The Group plans to establish an overseas injection molding plant in Vietnam, expected to achieve mass production in Q4 2021[35] - The Group plans to expand production in existing three domestic plants to meet the significant increase in orders for new products in 2021[35] - The Group has implemented a strict credit and trade receivables turnover policy to stabilize cash flow and financial position amid macro uncertainties[138] Corporate Governance - The company has complied with all code provisions set out in the Corporate Governance Code during the year ended December 31, 2020[183] - The Board is committed to strengthening the Group's corporate governance practices and ensuring transparency and accountability of the Company's operations[181] - The company has adopted the Model Code for Securities Transactions by Directors, confirming compliance by all directors throughout the year ended December 31, 2020[184] - The Group has a strong governance structure with independent non-executive directors serving on various committees, ensuring oversight and strategic direction[153] Management and Leadership - Mr. Cheung Fong Wa has over 30 years of experience in finance, taxation, audit, and investment, having joined the Group in July 2002[152] - The Group's management team includes members with extensive backgrounds in both finance and engineering, enhancing its operational capabilities[158] - The Group's strategic focus includes leveraging the expertise of its directors to navigate market challenges and opportunities effectively[166]