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]

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$729,393,000, a decrease of 27.3% from HK$1,004,945,000 in the same period of 2019[19] - Profit attributable to owners of the Company was HK$41,357,000, down 63.7% from HK$114,123,000 year-on-year[19] - Basic earnings per share decreased to 5.0 HK cents from 13.7 HK cents, representing a decline of 63.5%[19] - Proposed interim dividend per share is 2.0 HK cents, down from 5.0 HK cents in the previous year, a reduction of 60%[19] - Gross profit margin decreased to 22.3% from 27.5%, indicating a decline of 5.2 percentage points[19] - Net profit margin fell to 5.7% from 11.4%, a decrease of 5.7 percentage points[19] - Return on equity decreased to 3.7% from 10.7%, a drop of 7 percentage points[19] - For the first half of 2020, the Group's revenue was HK$729.4 million, a decrease of 27.4% compared to HK$1,004.9 million in the same period last year[26] - Gross profit for the Group was HK$162.5 million, representing a decrease of 41.2% from HK$276.4 million in the first half of 2019, with a gross profit margin of 22.3%, down 5.2 percentage points year-on-year[32] - The profit attributable to owners of the Company was HK$41.4 million, a year-on-year decrease of 63.8% from HK$114.1 million in the first half of 2019[36] - The net profit margin for the period was 5.7%, down 5.7 percentage points from 11.4% in the first half of 2019[36] Segment Performance - The mobile phones and wearable devices segment generated revenue of HK$212.9 million, a decline of 11.7% compared to HK$241.2 million in the first half of 2019[32] - The medical and health care segment saw a slight increase in revenue to HK$140.8 million, up 3.3% from HK$136.3 million in the same period last year[32] - The automobiles segment experienced a significant decline, with revenue dropping 20.7% to HK$162.8 million from HK$205.3 million in the first half of 2019[32] - Revenue from the mold fabrication segment was approximately HK$271.6 million, a decrease of 17.7% year-on-year, accounting for 37.2% of the Group's total revenue[39] - Revenue from the plastic components manufacturing segment was approximately HK$457.8 million, down 32.2% year-on-year, representing 62.8% of total revenue[47] - Revenue from the commercial telecommunications equipment segment decreased by 75.2% due to stagnating market demand and changes in supply chain strategies, but new product development is expected to launch soon[53] - Revenue from the medical and health care segment increased by 3.3% year-on-year, indicating stable market demand and resilience against economic cycles[55] Cost Management and Future Outlook - The Group implemented a 20% salary reduction for all executive directors and senior management effective from April 1, 2020, as part of cost-saving measures[32] - The Group anticipates substantial improvement in profit margins in the second half of the year due to increasing customer orders and improved production capacity utilization[32] - The Group's revenue is expected to be higher in the second half of the year, with 43% of revenue accumulated in the first half of 2019 and 57% in the second half[88] - The management expects the market conditions to remain volatile in the second half of 2020, but believes the worst has passed in the first half[141] - The Group plans to focus on business development in China, particularly targeting leaders in the consumer electronics industry[142] - The Group will continue to diversify its customer base and geographical presence to mitigate risks[142] Financial Position - Current ratio improved to 173.8% from 170.1%, indicating a slight increase in liquidity[19] - Gearing ratio increased to 27.5% from 20.3%, reflecting a rise in financial leverage[19] - Net current assets increased to HK$640,682,000 from HK$619,628,000, showing a growth in current assets[19] - The Group's net gearing ratio was zero as of June 30, 2020, with net cash of HK$502.6 million[9] - As of June 30, 2020, the Group maintained net cash of HK$502.6 million, up from HK$318.9 million on June 30, 2019, allowing flexibility to manage uncertainties in the macro environment[37] - Total cash and bank balances increased to approximately HK$813.4 million as of June 30, 2020, compared to HK$735.1 million as of December 31, 2019[90] - Total equity decreased to approximately HK$1,129.4 million as of June 30, 2020, down from HK$1,191.5 million as of December 31, 2019[91] - The gearing ratio increased to approximately 27.5% as of June 30, 2020, compared to 20.3% as of December 31, 2019, due to increased bank borrowings[91] Operational Efficiency - Trade receivables turnover days increased to about 64 days, and inventory turnover days rose to approximately 137 days due to order delivery delays caused by the epidemic[37] - Inventory turnover days increased to 137 days, up by 46 days compared to the same period last year, mainly due to order delivery delays caused by the epidemic[103] - Trade payable turnover days increased to 81 days, an increase of 7 days compared to the same period last year, also due to production suspensions caused by the epidemic[105] Shareholding Structure - As of June 30, 2020, Mr. Li Pui Leung holds 425,054,000 shares, representing 51.01% of the company's shareholding[150] - Eastern Mix Company Limited owns 335,654,000 shares, accounting for 40.28% of the company's issued share capital[160] - Lead Smart Development Limited holds 89,400,000 shares, which is 10.73% of the company's issued share capital[160] - Cheer Union Development Ltd. has 55,620,000 shares, representing 6.67% of the company's shareholding[160] - Normal Times International Limited owns 53,640,000 shares, accounting for 6.44% of the company's issued share capital[160] - Value Partners Group Limited has an interest in 65,302,000 shares, representing 7.84% of the company's shareholding[160] - FIL Limited and its affiliates collectively hold 45,332,000 shares, which is 5.44% of the company's issued share capital[160] - FMR LLC has an interest in 49,415,526 shares, representing 5.93% of the company's shareholding[160] - As of June 30, 2020, no other directors or executives had interests in shares or debentures of the company[154] Corporate Governance - The Company complied with all code provisions of the Corporate Governance Code during the six months ended 30 June 2020[167] - All directors confirmed compliance with the Model Code regarding securities transactions throughout the six months ended 30 June 2020[173] - The Company established written guidelines for relevant employees regarding securities dealings, with no incidents of noncompliance noted during the six months ended 30 June 2020[177] Share Option and Award Schemes - The Share Option Scheme was adopted on 29 November 2013 to provide incentives for eligible participants contributing to the Group's long-term growth[179] - As of June 30, 2020, the opening balance of share awards under the Share Award Scheme was 1,154,000 shares, with an acquisition of 1,778,000 shares by the trustee, resulting in a total balance of 2,932,000 shares[186] - No outstanding share options for the subscription of new shares were held by any parties during the six months ended June 30, 2020[181] - The company adopted a Share Award Scheme on February 25, 2019, to recognize contributions from personnel and provide incentives for retention[183] - All share awards as of June 30, 2020, were held by the trustee, and no share awards had been granted to any grantees[186] - The total number of shares acquired by the trustee under the Share Award Scheme during the reporting period was 1,778,000 shares[186] Audit and Compliance - The Audit Committee reviewed the unaudited interim financial information for the six months ended June 30, 2020, focusing on risk management, internal controls, and financial reporting matters[190] - The interim financial information was prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and was found to be in compliance[199] Market and Product Development - The company has not reported any new product or technology developments in the interim report[182] - There were no indications of market expansion or mergers and acquisitions mentioned in the interim report[182] - The company did not provide specific future outlook or performance guidance in the interim report[182]

Financial Performance - Revenue for 2019 was HK$2,310,842,000, a slight increase of 0.5% from HK$2,298,609,000 in 2018[11] - Profit attributable to owners of the Company decreased to HK$301,803,000, down 13.8% from HK$350,185,000 in 2018[11] - Basic earnings per share fell to HK$0.36, compared to HK$0.42 in the previous year[11] - Proposed final dividend per share decreased to HK$0.09 from HK$0.14 in 2018[11] - Gross profit margin declined to 28.9% from 31.5% in 2018[11] - Net profit margin also decreased to 13.1% from 15.2% in the previous year[11] - Return on equity dropped to 25.3% from 32.6% in 2018[11] - For the year ended December 31, 2019, total revenue amounted to HK$2,310.8 million, representing a year-on-year increase of 0.5% compared to HK$2,298.6 million in 2018[29] - Profit attributable to the owners of the Company was HK$301.8 million, down 13.8% from HK$350.2 million in 2018[29] - Gross profit decreased by 7.9% to HK$667.5 million, with a gross profit margin dropping by 2.6 percentage points to 28.9%[59] - Net profit attributable to owners decreased by 13.8% to HK$301.8 million, with a net profit margin reduction of 2.1 percentage points to 13.1%[61] Market Strategy and Development - The company plans to invest more resources in the development of the domestic market in 2020[26] - The Group aims to expand its high-end customer base and develop product applications in emerging industries[26] - The Group plans to invest more resources in the domestic market development in 2020, anticipating a quicker recovery in China compared to overseas regions[40] - The Group is actively expanding its domestic market to mitigate the impacts of the trade war and rising labor costs[78] - The Group aims to actively seek cooperation with more high-tech consumer electronics and medical product brands to diversify its customer base and stabilize risks[168] Operational Challenges - The COVID-19 epidemic is expected to negatively impact the Group's business, leading to delays in new product launches and development projects[37] - The Group plans to postpone the construction of an overseas plastic injection plant in Vietnam due to the epidemic[37] - The outbreak of COVID-19 has negatively impacted order sales volume from European and American customers, affecting the Group's operations[167] - The Group expects the epidemic to continue affecting global consumer demand, leading to postponed product releases and project developments by many consumer electronics brands[167] Financial Position and Ratios - The decrease in gearing ratio to 20.3% from 31.8% was attributed to reduced operating loans and increased equity due to recorded profits[11] - The Group's financial position remained sound, with a commitment to distribute no less than 30% of profits as dividends to shareholders[29] - The Group's net current assets as of December 31, 2019, were approximately HK$619.6 million, down from HK$766.5 million as of December 31, 2018[114] - Total cash and bank balances as of December 31, 2019, were approximately HK$735.1 million, a decrease from HK$875.3 million as of December 31, 2018[114] - The current ratio as of December 31, 2019, was approximately 170.1%, a decrease of 24.9 percentage points from 195.0% as of December 31, 2018[130] - The gearing ratio as of December 31, 2019, was approximately 20.3%, down from 31.8% as of December 31, 2018, mainly due to a decrease in operating loans[115] Revenue Segmentation - Revenue from the mold fabrication segment decreased by 14.7% to HK$590.8 million, accounting for approximately 25.6% of total revenue[64] - Revenue from the plastic components manufacturing segment increased by 7.1% to HK$1,720.0 million, representing approximately 74.4% of total revenue[71] - The smart home segment revenue grew by 40.0% due to new product launches by a major customer[72] - The mobile phones and wearable devices segment achieved a year-on-year growth of 23.6% in revenue[73] Management and Governance - Mr. Li Pui Leung has over 36 years of experience in plastic mold fabrication and injection molding, contributing to the overall management and strategic planning of the Group[182] - The Group's management team includes experienced professionals with significant industry backgrounds, ensuring effective governance and operational efficiency[186] - The management team is committed to maintaining high standards of corporate governance and financial transparency[191] - Mr. Zhang Fanghua has been appointed as the Executive Director and CFO since November 27, 2013, with approximately 32 years of experience in auditing, accounting, and corporate finance[194] Future Outlook - The Group anticipates that the global epidemic situation will remain difficult to control in the short term, leading to fluctuations and challenges in the macro-economy for 2020[171] - The Board of Directors has decided to temporarily set aside plans for building overseas factories and adopt a more prudent approach to all capital expenditures to maintain financial stability[171] - The Group will enhance its competitiveness and maintain business and financial stability while cautiously coping with the volatile economic environment[172] - The Chinese government has introduced several monetary and fiscal easing measures to stimulate domestic demand, which the Group will leverage to expand its consumer product market[166]

Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 1,004,945,000, a decrease of 2.5% from HKD 1,025,665,000 in 2018[12] - Profit attributable to owners of the Company was HKD 114,123,000, down 18.7% from HKD 140,432,000 in the previous year[12] - Basic earnings per share decreased to HKD 13.7 cents from HKD 16.9 cents, reflecting a decline of 18.9%[12] - Proposed interim dividend per share is HKD 5.0 cents, down from HKD 6.0 cents in 2018[12] - Gross profit margin decreased to 27.5% from 31.5% year-on-year[12] - Net profit margin declined to 11.4% from 13.7% in the previous year[12] - Return on equity fell to 10.7% from 14.7%[12] - Gross profit for the Group was HK$276.4 million, representing a decrease of 14.5% from HK$323.4 million in the first half of 2018, with a gross profit margin dropping to 27.5%[26] - Profit attributable to owners of the Company was HK$114.1 million, down 18.7% from HK$140.4 million in the first half of 2018, with a net profit margin of 11.4%[28] - Revenue for the first half of 2019 was approximately HK$1,004.9 million, representing a decrease of approximately HK$20.8 million or 2.0% compared to HK$1,025.7 million for the same period in 2018[47] - Gross profit for the first half of 2019 was approximately HK$276.4 million, a decrease of approximately HK$47.0 million or 14.5% compared to HK$323.4 million for the same period in 2018, with a gross profit margin of 27.5%, down 4.0 percentage points from 31.5%[49] - Operating profit decreased to HK$137,030, representing a decline of 14.2% from HK$159,594 in the prior period[190] - Total comprehensive income was HKD 111,893,000, which includes a profit for the period of HKD 114,123,000[193] Assets and Liabilities - Total assets increased to HK$2,491,369 as of June 30, 2019, up from HK$2,163,489 at the end of 2018, reflecting a growth of 15.1%[188] - Total equity decreased slightly to HK$1,070,695 from HK$1,075,458 at the end of 2018, a decline of 0.4%[188] - Non-current liabilities rose significantly to HK$578,394, compared to HK$280,735 at the end of 2018, an increase of 106.5%[188] - Current liabilities totaled HK$842,280, up from HK$807,296 at the end of 2018, indicating a rise of 4.3%[188] - As of June 30, 2019, the Group had net current assets of approximately HK$810.1 million, an increase from HK$766.5 million as of 31 December 2018[76] Dividends and Shareholder Information - The Board declared an interim dividend of HK5.0 cents per share for the six months ended June 30, 2019, totaling HK$41,663,000[163] - The interim dividend is expected to be paid on September 27, 2019, to shareholders registered by September 13, 2019[163] - As of June 30, 2019, Mr. Li Pui Leung holds 422,056,000 shares, representing approximately 50.65% of the company's shareholding[145] - Eastern Mix Company Limited and Lead Smart Development Limited collectively hold 422,056,000 shares, accounting for 50.65% of the total shares[147] Operational Metrics - The Group's trade receivable turnover days remained stable at around 55 days, maintaining net cash of HK$318.9 million as of June 30, 2019[32] - Orders on hand as of June 30, 2019, amounted to HK$979.3 million, an increase of 6.0% compared to HK$923.8 million as of June 30, 2018[32] - The Group's order backlog as of June 30, 2019, was HK$979.3 million, a year-on-year increase of 6.0% from HK$923.8 million[35] - The utilization rate of plastic products machines decreased by 20.0 percentage points year-on-year to 48.6% in the first half of 2019[42] Expenses and Costs - Selling expenses for the first half of 2019 were approximately HK$35.8 million, a decrease of 9.2% from HK$39.4 million in the first half of 2018, accounting for 3.6% of sales[58] - Administrative expenses for the first half of 2019 were approximately HK$117.6 million, down 2.7% from HK$120.9 million in the same period of 2018, representing 11.7% of sales[64] - Net finance cost for the first half of 2019 was approximately HK$0.1 million, a significant decrease from net finance income of approximately HK$4.2 million in the same period of 2018[65] - Income tax expense for the first half of 2019 was approximately HK$22.8 million, with an effective tax rate of 16.7%, up from 14.3% in the same period of 2018[66] Future Outlook and Strategic Plans - The Group expects a significant increase in production capacity utilization in the second half of 2019, which will improve the gross profit margin[54] - The Group expects stable orders and business for the second half of 2019, supported by new product releases from certain brand customers[131] - The Group is actively pursuing international expansion and domestic market development, including establishing a domestic e-cigarette customer base and seeking injection molding plant resources in Southeast Asia[132] - The Group plans to invest in capacity expansion and suitable investment projects primarily funded by internal resources, as outlined in the "Future Plans and Use of Proceeds" section of the Prospectus[120] Employee and Corporate Governance - As of June 30, 2019, the Group had 4,278 full-time employees, an increase of 20% from 3,564 employees as of December 31, 2018[121] - The company complied with all code provisions of the Corporate Governance Code during the reporting period[170] - The Audit Committee reviewed the accounting policies and practices and discussed risk management and internal controls[181] Miscellaneous - The company did not purchase, sell, or redeem any listed securities during the six months ended June 30, 2019[169] - The company established written guidelines for relevant employees regarding securities transactions, with no noted incidents of noncompliance[177] - The company has emergency arrangements in place regarding property lease risks, including formal agreements for backup facilities[140]