Financial Performance - The company's revenue for the six months ended June 30, 2024, was HKD 1,810,902,000, an increase of 5.2% compared to HKD 1,721,370,000 for the same period in 2023[1] - Gross profit for the same period was HKD 197,873,000, representing a gross margin of approximately 10.9%[1] - The company reported a profit before tax of HKD 4,204,000, a significant improvement from a loss of HKD 13,608,000 in the previous year[2] - The net profit for the period was HKD 3,970,000, compared to a net loss of HKD 25,237,000 in the same period last year[2] - Basic earnings per share for ordinary shareholders was HKD 0.4, recovering from a loss of HKD 2.8 per share in the previous year[3] - The group experienced a net profit of HKD 3,970 for the six months ending June 30, 2024, compared to a loss of HKD 25,237 in the previous period[13] - The company reported a net profit attributable to ordinary shareholders of approximately HKD 3,800,000, a turnaround from a net loss of HKD 24,700,000 in the same period last year[41] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 3,339,779,000, down from HKD 3,780,086,000 as of December 31, 2023[5] - Current assets decreased to HKD 2,116,755,000 from HKD 2,497,861,000, indicating a reduction in liquidity[5] - The company's total liabilities decreased to HKD 1,685,000,000 from HKD 2,129,000,000, reflecting improved financial stability[6] - The group’s total liabilities were HKD 1,679,338, with segment liabilities for fabric, garment, and others being HKD 1,591,903, HKD 80,050, and HKD 3,501 respectively[12] - As of June 30, 2024, the group's net current assets amounted to approximately HKD 806.9 million, an increase from HKD 764.4 million as of December 31, 2023[42] - The group's cash and cash equivalents were approximately HKD 419 million as of June 30, 2024, down from HKD 916.1 million as of December 31, 2023[42] - Total bank borrowings were approximately HKD 922.8 million as of June 30, 2024, a decrease from HKD 1,261.5 million as of December 31, 2023[42] Revenue Segmentation - Revenue from external customers for the fabric segment reached HKD 1,477,142, while the garment segment generated HKD 333,760, totaling HKD 1,810,902 for the six months ending June 30, 2024[11] - The total segment profit for the fabric division was HKD 30,858, and for the garment division, it was HKD 212, resulting in a combined segment profit of HKD 31,267[11] - Revenue from external customers in South Korea increased to HKD 795,036, up from HKD 677,760 in the previous year, reflecting a growth of approximately 17.4%[14] - The group's revenue from external customers in Vietnam rose to HKD 62,666, compared to HKD 36,843 in the previous year, marking a significant increase of approximately 69.9%[14] - Revenue from major customers accounted for over 10% of total group revenue, with customer A contributing HKD 319,916,000 for the six months ended June 30, 2024, compared to HKD 227,247,000 for the same period in 2023, representing a growth of 40.8%[15] Expenses and Costs - The cost of sales and services for the group was HKD 1,613,029,000 for the six months ended June 30, 2024, compared to HKD 1,567,512,000 in the same period of 2023, indicating an increase of 2.9%[19] - Research and development costs significantly decreased to HKD 26,011,000 for the six months ended June 30, 2024, from HKD 57,838,000 in the same period of 2023, a reduction of 55.0%[19] - Selling and distribution expenses increased to approximately HKD 52,600,000, up from HKD 46,700,000 in the same period last year, consistent with the increase in sales volume[36] - Administrative expenses decreased to approximately HKD 138,600,000 from HKD 157,300,000 in the same period last year, due to a reduction in employee numbers following a restructuring[37] - Financing costs for the period were approximately HKD 31,800,000, down from HKD 45,900,000 in the same period last year, primarily due to a reduction in total bank borrowings[39] Corporate Governance - The company emphasizes good corporate governance as essential for effective management and enhancing shareholder value[57] - The Audit Committee consists of three independent non-executive directors responsible for reviewing financial reports and risk management[58] - The board includes both executive and independent non-executive directors, ensuring a diverse governance structure[62] Future Outlook and Strategy - The company is focusing on enhancing operational efficiency and exploring new market opportunities to drive future growth[8] - The group plans to continue investing in capacity expansion and technological advancements to better serve customers[30] - The group anticipates a cautiously optimistic outlook for the second half of 2024, despite ongoing geopolitical tensions and inflationary pressures[31] - The demand for higher-margin orders has improved profitability, although product prices remain under pressure due to intense competition and weak global demand[28] Employee and Operational Insights - The group employed 3,786 employees in China and 3,431 employees in Cambodia as of June 30, 2024[54] - The company is focusing on expanding its production capabilities in Vietnam to enhance its multi-location production solutions[32]

Financial Performance - The overall revenue for the year 2023 decreased by 12.2% to approximately HKD 3,604,400,000 compared to the previous year[21]. - The company reported a net loss attributable to ordinary shareholders of approximately HKD 132,900,000 for 2023[21]. - EBITDA for 2023 was HKD 239,379,000, down from HKD 300,078,000 in 2022[7]. - The gross profit margin for 2023 was 8.2%, a decline from 8.6% in 2022[8]. - The net profit margin for 2023 was -3.7%, compared to -1.3% in 2022[8]. - The company's overall revenue for 2023 decreased by approximately 12.2% to about HKD 3,604,400,000, with gross profit declining by about 16.7% to approximately HKD 295,200,000[29]. - The company recorded a net interest expense of approximately HKD 24,600,000 in 2023 due to significant interest rate hikes[32]. - Financing costs increased by approximately 78.6% to about HKD 104,700,000, up from HKD 58,600,000 in 2022, primarily due to higher average borrowing rates[38]. - The net loss attributable to ordinary shareholders was approximately HKD 132,900,000, compared to HKD 58,000,000 in 2022, mainly due to declining sales and gross margin[42]. - As of December 31, 2023, the net current assets were about HKD 764,400,000, down from HKD 1,472,300,000 in 2022, largely due to early repayment of HKD 1,300,000,000 in syndicated loans[43]. - The total bank borrowings amounted to approximately HKD 1,261,500,000, compared to HKD 1,462,300,000 in 2022[45]. - Capital expenditures for the year were about HKD 170,400,000, significantly up from HKD 79,200,000 in 2022, with 62.9% allocated for purchasing factories[52]. - The company reported a significant increase in impairment losses, with a net impairment loss of HKD 702 in 2023 compared to a loss of HKD 6,689 in 2022[199]. - Administrative expenses decreased slightly to HKD 294,348 in 2023 from HKD 297,615 in 2022, a reduction of 1.4%[199]. - Sales and distribution expenses were HKD 98,259 in 2023, down from HKD 107,276 in 2022, indicating a decrease of 8.4%[199]. Business Strategy and Outlook - The company has secured substantial orders for the first quarter of 2024, aligning with industry trends[22]. - The company plans to focus on establishing strategic partnerships with local manufacturers in Southeast Asia instead of building a new production base in Vietnam[19]. - The company remains cautiously optimistic about 2024, anticipating a recovery in the global economy[22]. - The company anticipates a cautious but optimistic growth outlook for 2024, with a significant increase in order volume at the beginning of the year[33]. - The company is exploring potential collaborations with manufacturers in Malaysia and other Asian regions to strengthen its global production layout[23]. - The company is actively seeking potential acquisition targets or business partners to accelerate its expansion in Southeast Asia[34]. - The company aims to enhance competitiveness by focusing on product quality, innovative materials, and production technologies[24]. Operational Changes - The company incurred a one-time severance cost of approximately HKD 17,300,000 due to the restructuring of dyeing and weaving capacity[20]. - A one-time tax payment of approximately HKD 17,400,000 was made due to past tax adjustments in mainland China[20]. - The company closed its dyeing production capacity in Nansha due to low utilization, which is expected to enhance efficiency and profitability in the long run[30]. - The company has established a strategic partnership with a manufacturer in Vietnam to quickly build production capacity, complementing existing facilities in China and Cambodia[23]. Market Conditions - The U.S. apparel import volume and value significantly decreased by 21.7% compared to the previous year, reflecting a cautious consumer sentiment[28]. - Sales from the five major regions (South Korea, Mainland China, Hong Kong, Singapore, and Taiwan) accounted for approximately 77.1% of total sales, with South Korea being the largest market at 39.7%[55]. - Fabric sales dropped by about 10.6% to approximately HKD 2,944,800,000, down from HKD 3,293,000,000 in 2022[35]. Governance and Compliance - The board of directors held four meetings and one annual general meeting during the year, with 100% attendance from all directors[71]. - The company has complied with listing rules, ensuring that independent non-executive directors constitute at least one-third of the board[73]. - The board composition consists of 62.5% executive directors and 37.5% independent non-executive directors, exceeding the requirement for at least one-third to be independent[85]. - The company has established mechanisms to ensure independent viewpoints from directors, including annual independence confirmations[84]. - The company has a policy for board member diversity, considering various factors such as gender, age, and professional experience[83]. - The independent non-executive directors received fixed fees for their roles, with no equity-based or incentive-based compensation plans to maintain objectivity and independence[89]. - The external auditor, Ernst & Young, charged approximately HKD 3,600,000 for audit services and HKD 500,000 for non-audit services during the year[95]. - The audit committee held three meetings during the year, with all members attending 100% of the meetings[96]. - The board confirmed its responsibility for preparing consolidated financial statements that fairly reflect the group's financial position and performance[92]. - The internal control system was reviewed, and no significant failures in financial, operational, or compliance monitoring were reported during the review period[98]. - The company has implemented a budget management system to better monitor business and financial performance[98]. - The board encourages independent views and opinions from non-executive directors during meetings[91]. - The board has established and maintained an effective risk management system to monitor and control various business risks, ensuring reasonable assurance against significant misstatements or losses[100]. - The board reviewed the risk management system this year and found no significant issues adversely affecting the group's financial condition or operations, deeming the system effective and sufficient[102]. - The company has adopted a dividend policy that emphasizes retaining sufficient cash reserves for operational needs and future growth, with no predetermined dividend rate[103]. - The board has revised the company's articles of association to comply with updated listing rules, allowing for electronic or hybrid shareholder meetings[104]. - The company has implemented a shareholder communication policy to ensure timely and equal access to information for shareholders and stakeholders[108]. Corporate Social Responsibility - The company donated a total of HKD 799,000 in charitable contributions during the year[146]. - The company encourages reporting of any unethical or fraudulent behavior through a whistleblowing policy, allowing confidential and anonymous reporting[111]. - The company maintains a zero-tolerance policy towards bribery and corruption, ensuring high levels of business integrity and transparency in all transactions[112]. - The board regularly reviews the company's environmental, social, and governance (ESG) strategies, considering the adequacy of resources and training related to ESG performance[113]. - The company is committed to enhancing internal sustainability governance to create value for stakeholders[113]. - The board's oversight includes regular assessments of the nature and severity of significant ESG risks since the last review[113]. Shareholder Information - The company has not made any changes to its share capital or stock options during the year[142]. - There were no purchases, redemptions, or sales of the company's listed securities by the company or its subsidiaries during the year[144]. - As of December 31, 2023, the company's distributable reserves amounted to HKD 1,047,214,000, which includes share premium and capital reserves totaling HKD 848,112,000[145]. - Sales to the top five customers accounted for 36.1% of total sales, an increase from 31.7% in 2022, with the largest customer contributing 14.4%[148]. - Purchases from the top five suppliers represented 38.5% of total purchases, down from 42.8% in 2022, with the largest supplier accounting for 10.1%[148]. - The company has confirmed that at least 25% of its total issued share capital is held by the public as of the report date[177].

Financial Performance - Revenue decreased by 12.2% to HKD 3,604,400,000 (2022: HKD 4,106,200,000) [3] - Gross profit decreased by 16.7% to HKD 295,200,000 (2022: HKD 354,300,000) [3] - Net loss attributable to ordinary shareholders was HKD 132,900,000 (2022: HKD 58,000,000) [3] - Basic and diluted loss per share was HKD 0.153 (2022: HKD 0.067) [4] - The total loss before tax for the year was HKD 124,990,000, compared to a loss of HKD 53,840,000 in the previous year, reflecting a significant increase in losses [17] - The company reported a loss of HKD 134,771,000 for the year, compared to a loss of HKD 54,714,000 in the previous year, indicating a worsening financial performance [17] - The group reported a pre-tax loss of HKD 132,908,000 for the year ended December 31, 2023, compared to a loss of HKD 57,958,000 in 2022 [35] - The group’s overall revenue decreased by approximately 12.2% to about HKD 3,604,400,000, while gross profit fell by about 16.7% to approximately HKD 295,200,000 [42] - Net loss attributable to ordinary shareholders was approximately HKD 132,900,000, an increase from HKD 58,000,000 in 2022, mainly due to declining sales and gross margin [54] Assets and Liabilities - Total assets decreased from HKD 4,371,000,000 in 2022 to HKD 3,046,000,000 in 2023 [7] - Current liabilities increased from HKD 1,152,108,000 in 2022 to HKD 1,733,466,000 in 2023 [8] - Non-current liabilities decreased from HKD 1,004,242,000 in 2022 to HKD 396,169,000 in 2023 [8] - Cash and cash equivalents decreased from HKD 1,074,555,000 in 2022 to HKD 916,088,000 in 2023 [7] - The company reported a total asset value of HKD 3,780,086,000 as of December 31, 2023, compared to HKD 4,073,999,000 in 2022, indicating a decrease of approximately 7.2% [18] - Non-current assets decreased to HKD 1,204,399,000 in 2023 from HKD 1,380,550,000 in 2022, reflecting a decline of approximately 12.7% [20] - Current assets decreased to approximately HKD 764,400,000 from HKD 1,472,300,000 in 2022, largely due to early repayment of HKD 1,300,000,000 in syndicated loans [55] - The company’s net debt to equity ratio increased to approximately 42.3% from 35.9% in 2022 [55] Revenue Breakdown - The Fabric segment generated revenue of HKD 2,944,793,000 from external customers, while the Garment segment generated HKD 659,564,000, indicating a decline of 10.6% and 18.8% respectively compared to the previous year [17] - Revenue from knitted fabric and colored yarn sales was HKD 2,944,793,000, down 10.6% from HKD 3,293,006,000 in the previous year [22] - Revenue from garment products and related processing services was HKD 659,564,000, a decline of 18.8% compared to HKD 813,162,000 in 2022 [22] - Revenue from the South Korean market was HKD 1,430,276,000, representing an increase of 5.4% from HKD 1,357,034,000 in 2022 [19] - Sales in the five major regions (Korea, Mainland China, Hong Kong, Singapore, and Taiwan) accounted for about 77.1% of total sales, with Korea being the largest market at approximately 39.7% [65] Dividends and Shareholder Returns - The company did not propose a final dividend for the year (2022: none) [3] - The company did not recommend a final dividend for the year ended December 31, 2023, consistent with the previous year [33] - The company did not recommend a final dividend for the year, consistent with 2022 [59] Operational Changes and Future Plans - The group plans to expand its production network in Southeast Asia, actively seeking potential acquisition targets or business partners [46] - The group closed its dyeing capacity in Nansha in September 2023 due to low utilization, which is expected to enhance efficiency and profitability in the long term [42] - The new garment factory in Cambodia is expected to enhance the group's production capacity and R&D capabilities [43] - The number of orders surged at the beginning of 2024, indicating a positive shift in consumer sentiment and demand [45] Financial Management and Governance - The group recorded a net interest expense of approximately HKD 24,600,000 due to significant interest rate hikes [43] - The group repaid bank loans amounting to HKD 1,300,000,000 during the year to ensure financial flexibility [43] - Financing costs increased by approximately 78.6% to about HKD 104,700,000, primarily due to higher average borrowing rates [50] - The company maintains a prudent treasury policy to mitigate financial risks related to interest and exchange rate fluctuations [69] - The audit committee has reviewed the accounting principles and practices adopted by the group for the year [78] - The company emphasizes good corporate governance practices to enhance shareholder value [76] - All directors have confirmed compliance with the standard code of conduct for securities trading during the year [77] Other Financial Metrics - Other comprehensive expenses for the year totaled HKD 259,573,000 (2022: HKD 280,911,000) [5] - Other income totaled HKD 85,666,000, an increase of 48.4% from HKD 57,740,000 in the prior year [26] - The cost of sales and services provided was HKD 3,309,180,000, down from HKD 3,751,875,000 in the previous year [28] - The average collection period for receivables improved to 53.4 days from 63.3 days in 2022, indicating a reduction in operational cycle [57] - The company has not conducted any capital raising activities during the year [70] - The company has not purchased, redeemed, or sold any of its listed securities during the year [75] - As of December 31, 2023, the company has no significant investments or contingent liabilities [66][71] - The company has no mortgaged assets as of December 31, 2023 [72]

Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately HKD 1,721,400,000, a decrease of 24.5% year-on-year[8]. - Gross profit for the same period decreased by 33.5% to approximately HKD 153,900,000[8]. - The company reported a loss attributable to ordinary shareholders of approximately HKD 24,700,000, including a one-time tax payment of approximately HKD 11,500,000 due to tax adjustments in mainland China[8]. - Basic loss per share for the period was HKD 0.028, compared to a basic earnings per share of HKD 0.034 for the same period in 2022[8]. - Total sales revenue for the period was approximately HKD 1,721,400,000, a decrease of about 24.5% compared to HKD 2,281,100,000 for the six months ended June 30, 2022[15]. - Gross profit for the period was approximately HKD 153,900,000, a decrease of about 33.5% from HKD 231,400,000 for the six months ended June 30, 2022, with a gross margin of approximately 8.9%[17]. - The net loss attributable to ordinary shareholders was approximately HKD 24,700,000, compared to a net profit of HKD 29,500,000 for the six months ended June 30, 2022[23]. - The company reported a loss before tax of HKD 13,608,000, compared to a profit of HKD 38,535,000 in the previous year[60]. - The net loss for the period was HKD 25,237,000, a significant decline from a profit of HKD 32,017,000 in the prior year[60]. - Total comprehensive expenses for the period amounted to HKD 157,211,000, an increase from HKD 122,428,000 in the previous year, primarily driven by foreign exchange differences[65]. Revenue Breakdown - The textile and garment segments contributed approximately 84.4% and 15.6% to total revenue, respectively[8]. - Total revenue for the six months ended June 30, 2023, was HKD 1,721,370,000, with external customer revenue from the fabric segment at HKD 1,452,181,000 and from the garment segment at HKD 269,189,000[77]. - Revenue from the fabric segment was HKD 1,452,181, down 23.5% from HKD 1,899,981 in the previous year, while the garment segment generated HKD 269,189, a decline of 29.3% from HKD 381,154[84]. - Major customer A contributed HKD 227,247, representing over 10% of the group's total revenue for the six months ended June 30, 2023[80]. Cash and Liquidity - Cash and cash equivalents increased by 23.5% to approximately HKD 1,327,200,000 as of June 30, 2023[11]. - The group’s cash and cash equivalents were approximately HKD 1,327,200,000 as of June 30, 2023, compared to HKD 1,074,600,000 as of December 31, 2022[25]. - The company reported a net increase in cash and cash equivalents of HKD 265,219,000 for the period, compared to HKD 18,856,000 in the previous year[67]. - The net cash flow from operating activities for the six months was HKD 62,142,000, compared to HKD 46,995,000 in the prior year, showing an improvement of about 32.1%[67]. Assets and Liabilities - As of June 30, 2023, the group's current assets were approximately HKD 1,149,400,000, down from HKD 1,472,300,000 as of December 31, 2022[25]. - Non-current assets decreased to HKD 1,280,911,000 as of June 30, 2023, down from HKD 1,449,613,000 at the end of 2022, indicating a reduction in asset value[63]. - Current liabilities increased significantly to HKD 1,850,779,000 from HKD 1,152,108,000, indicating a rise of approximately 60.7%[64]. - The company’s total liabilities increased to HKD 2,520,579,000 from HKD 2,156,350,000, indicating a rise of approximately 16.9%[64]. Financing and Investments - The company secured a green financing loan of HKD 200,000,000 for establishing an eco-friendly textile production base in Vietnam[11]. - The group plans to invest approximately HKD 22,600,000 in a strategic acquisition of land in Vietnam to expand production capabilities[14]. - The group invested approximately HKD 38,800,000 in capital expenditures during the period, with about 98.2% allocated for the purchase of factories and machinery[31]. - The group completed the acquisition of Great Garment Vietnam Company Limited for a cash consideration of VND 75,200,860,000 (approximately HKD 22,582,800), making it a wholly-owned subsidiary[35]. Corporate Governance and Risk Management - The audit committee consists of three independent non-executive directors responsible for reviewing and supervising the group's financial reporting and risk management[56]. - The company is committed to maintaining good corporate governance practices to enhance shareholder value[55]. - The group has adopted a prudent treasury policy to mitigate financial risks related to interest and exchange rate fluctuations[36]. Market Outlook - The company experienced an encouraging rebound in orders entering the third quarter, with retailers preparing for the autumn and winter seasons[12]. - The group maintains a cautious optimism for the second half of the year, focusing on operational excellence and sustainable business growth[14]. - As of July 2023, the U.S. inflation rate was 3.2%, showing signs of potential stability in the economic environment[12].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部 分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：02307） 截至二零二三年六月三十日止六個月之 中期業績公佈 錦興國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公司及 其附屬公司（統稱「本集團」）截至二零二三年六月三十日止六個月（「期間」）之未審 核簡明綜合財務業績，連同二零二二年同期之比較數字如下： 簡明綜合損益表 截至二零二三年六月三十日止六個月 截至 截至 ...

Financial Performance - The overall revenue for the year 2022 decreased by 6.5% to approximately HKD 4,106,200,000 compared to the previous year[22] - The company recorded a net loss attributable to ordinary shareholders of HKD 58,000,000 for 2022[22] - The EBITDA for 2022 was HKD 300,078,000, reflecting a decline from previous years[8] - The gross profit margin for 2022 was 8.6%, down from 12.7% in 2021[9] - The net profit margin for 2022 was -1.3%, compared to a positive margin of 1.1% in 2021[9] - Gross profit for 2022 fell by approximately 36.6% to about HKD 354,300,000, resulting in a gross margin decline from approximately 12.7% in 2021 to about 8.6% in 2022[32] - The company reported a loss attributable to ordinary shareholders of approximately HKD 58,000,000 for 2022, compared to a profit of approximately HKD 46,000,000 in 2021[32] - Garment sales increased by approximately 36.0% to about HKD 813,200,000, marking a five-year high, while fabric sales decreased by approximately 13.2% to about HKD 3,293,000,000[40] - Financing costs increased by approximately 31.4% to about HKD 58,600,000 due to rising average bank borrowing rates[42] Corporate Actions and Strategy - The company undertook a corporate restructuring in Q4 2022, incurring a one-time compensation expense of approximately HKD 15,000,000[22] - The company did not recommend a final dividend for the year 2022[22] - The company is focusing on expanding its operations in Southeast Asia, particularly through the establishment of a comprehensive textile and garment production base in Vietnam and Cambodia[23] - The company plans to implement strict supply chain management strategies to prevent overproduction and ensure timely delivery[24] - The company is committed to enhancing product quality and introducing innovative production technologies to maintain market competitiveness[27] - The company anticipates improved consumer sentiment in Western countries due to easing inflation and expected reductions in Federal Reserve tightening policies[23] - The company is adapting its product mix to cater to more mass-market orders to stabilize sales and maximize production efficiency[33] Financial Position and Assets - As of December 31, 2022, the company's current assets net value was approximately HKD 1,472,300,000, down from HKD 1,790,600,000 the previous year[48] - The company's cash and cash equivalents amounted to approximately HKD 1,074,600,000, an increase from HKD 863,400,000 in the previous year[48] - The net debt to equity ratio was approximately 35.9%, a decrease from 48.8% the previous year, indicating improved financial stability[48] - As of December 31, 2022, total bank financing amounted to approximately HKD 5,225,600,000, a decrease from HKD 5,559,800,000 in the previous year, with utilized financing at HKD 1,739,000,000 compared to HKD 2,299,600,000[50] Governance and Board Structure - The board of directors held four meetings and one annual general meeting, with all directors attending 100% of the meetings[75] - The company has complied with listing rules regarding independent non-executive directors, with three independent directors making up at least one-third of the board[78] - The chairman and CEO roles are separated, with the chairman focusing on overall strategy and the CEO managing daily operations[79] - The board consists of members with balanced skills and diverse expertise to manage and supervise the group's business[73] - The board consists of 8 members, with 2 female directors, representing 25% female and 75% male[88] - 62.5% of the board members are executive directors, while 37.5% are independent non-executive directors, exceeding the requirement of at least one-third[90] Risk Management and Compliance - The company has established an effective internal control system to safeguard shareholder investments and company assets, with no significant failures reported in financial, operational, or compliance monitoring during the review year[103] - The risk management system is deemed effective and sufficient, with no major risk management issues identified that adversely affect the company's financial position or operations[107] - The audit committee is responsible for reviewing the effectiveness of the audit process and the company's compliance with applicable codes[102] - The company has mechanisms in place to ensure independent viewpoints from directors, including annual independence confirmations[89] Employee and Stakeholder Relations - The company emphasizes maintaining strong relationships with employees, customers, and suppliers as a key factor for stable development[141] - Competitive compensation and career development opportunities are provided to employees, along with a safe and healthy working environment[142] - The company ensures quality products and carefully addresses customer needs through effective communication and diverse solutions[142] - Long-term relationships with suppliers are established to maintain a stable supply of quality materials, with regular quality control measures in place[142] Environmental, Social, and Governance (ESG) - The board regularly reviews the company's environmental, social, and governance (ESG) performance and risks[118] - The company has adopted strict environmental protection measures to comply with current environmental laws and regulations[137] - There were no violations of environmental regulations that significantly impacted the company's development and performance during the fiscal year[138] - The company has implemented a whistleblowing policy to maintain high levels of transparency and accountability[116] - A zero-tolerance policy towards bribery and corruption is enforced, ensuring business integrity and fairness[117] Shareholder Information - The company did not recommend the payment of a final dividend for the year, compared to a dividend of HKD 0.013 per share in the previous year[145] - Total distributable reserves as of December 31, 2022, amounted to HKD 1,048,359,000, which includes share premium and capital reserves totaling HKD 848,112,000[150] - The company has confirmed that at least 25% of its issued share capital is held by the public as of the report date[185]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部 分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 （於開曼群島註冊成立之有限公司） （股份代號：02307） 截至二零二二年十二月三十一日止年度之 全年業績公佈 財務摘要 • 收益減少6.5%至4,106,200,000港元（二零二一年：4,389,400,000港元） • 毛利減少36.6%至354,300,000港元（二零二一年：558,900,000港元） • 本公司普通股本持有人應佔年內虧損淨額為58,000,000港元（二零二一年： 純利46,000,000港元） ...

Financial Performance - The group's revenue for the six months ended June 30, 2022, was approximately HKD 2,281,100,000, representing a year-on-year increase of 12.0% compared to HKD 2,036,300,000 for the same period in 2021[9]. - Gross profit decreased by 22.8% to HKD 231,400,000 from HKD 299,800,000 in the same period last year[9]. - Profit attributable to ordinary shareholders was HKD 29,500,000, a decrease of 25.3% compared to HKD 39,500,000 for the same period in 2021[9]. - The basic earnings per share for the period was HKD 0.034, compared to HKD 0.046 for the same period last year[9]. - Total sales revenue reached approximately HKD 2,281,100,000, an increase of about 12.0% compared to HKD 2,036,300,000 for the six months ended June 30, 2021[16]. - Gross profit was approximately HKD 231,400,000, a decrease of about 22.8% from HKD 299,800,000 for the six months ended June 30, 2021, with a gross margin reduced to approximately 10.1% from 14.7%[18]. - The net profit for the period was HKD 32,017,000, a decrease of 18.5% from HKD 39,252,000 in the prior year[66]. - The total comprehensive income for the period was a loss of HKD 122,428,000, compared to a profit of HKD 39,252,000 in the same period last year[66]. - The group reported a pre-tax profit of HKD 29,453,000 for the six months ended June 30, 2022, down from HKD 39,519,000 for the same period in 2021, representing a decline of about 25.5%[109]. Business Segments - The textile business contributed 83.3% and the garment business contributed 16.7% to the group's total revenue[9]. - The garment business benefited from strategic expansion into Cambodia, resulting in a significant increase in the customer base, including more European clients and new U.S. retailers[12]. - The company anticipates that the garment business will be the main source of revenue for the remainder of 2022, supported by a more diversified customer portfolio[13]. - The fabric segment generated revenue of HKD 1,899,981, while the garment segment contributed HKD 381,154, indicating a significant increase in garment revenue from HKD 176,131 in the previous year[93]. Market Conditions - Inflation and tightening monetary policy in the U.S. may continue to pressure global market sentiment, potentially hindering the recovery of the textile business[13]. - The overall market sentiment in the textile and garment industry has been negatively impacted by geopolitical tensions and pandemic-related restrictions, affecting consumer demand and production costs[6][10]. - The company will closely monitor the situation in China, where government commitments to stimulate the economy may lead to a recovery in consumer demand[13]. Expenses and Cost Management - Selling and distribution expenses decreased to approximately HKD 63,000,000 from HKD 68,400,000 for the six months ended June 30, 2021, mainly due to reduced production in the fabric business[20]. - Administrative expenses decreased to approximately HKD 157,500,000 from HKD 161,200,000 for the six months ended June 30, 2021, reflecting prudent cost control strategies[21]. - The company incurred financing costs of HKD 21,336,000, an increase from HKD 19,784,000 in the previous year[64]. - Research and development costs for the six months ended June 30, 2022, were HKD 67,792, slightly up from HKD 65,983 for the same period in 2021, reflecting an increase of about 2.7%[104]. Financial Position - As of June 30, 2022, the current ratio was approximately 2.6, up from 2.1 as of December 31, 2021, indicating improved liquidity[27]. - The total bank borrowings amounted to approximately HKD 1,775,900,000 as of June 30, 2022, down from HKD 1,815,000,000 as of December 31, 2021[27]. - The group had no significant contingent liabilities as of June 30, 2022, maintaining a stable financial position[35]. - The total assets of the group as of June 30, 2022, were HKD 4,527,586, with total liabilities amounting to HKD 2,450,403, resulting in a net asset position[82]. - Total liabilities decreased from HKD 3,982,309 thousand as of December 31, 2021, to HKD 2,450,403 thousand as of June 30, 2022, indicating a reduction of approximately 38.5%[70]. - The total current liabilities decreased from HKD 1,660,926 thousand to HKD 1,131,266 thousand, a reduction of approximately 31.7%[70]. - The company’s long-term borrowings decreased from HKD 3,532,304 thousand to HKD 1,288,902 thousand, indicating a significant reduction of about 63.5%[70]. Capital Expenditure and Investments - The group invested approximately HKD 40,800,000 in capital expenditure during the period, with about 92.2% allocated for the purchase of factories and machinery[33]. - The company reported a capital expenditure of HKD 40,826 for the six months ended June 30, 2022, compared to HKD 51,159 for the same period in 2021, indicating a decrease in investment[86]. - As of June 30, 2022, the group's capital commitments for properties, plants, and equipment amounted to approximately HKD 76,000,000, an increase from HKD 40,600,000 as of December 31, 2021[33]. Shareholder Information - The company does not recommend any interim dividend for the period, consistent with the previous year[29]. - The group has established a share option scheme to incentivize eligible participants and promote growth[41]. - As of June 30, 2022, the total equity held by directors accounted for approximately 38.69% and 11.38% of the company's issued share capital, indicating significant insider ownership[46]. - Major shareholders include Exceed Standard with 38.23% and Power Strategy with 11.04% of the issued share capital[55]. Workforce and Employment - The group employed 4,533 staff in China and 2,428 in Cambodia as of June 30, 2022, reflecting a slight increase in workforce[41]. - The group reported short-term employee benefits of HKD 13,509,000 for the six months ended June 30, 2022, slightly up from HKD 13,355,000 for the year ended December 31, 2021[121].

Financial Performance - The company reported a revenue increase of 14.7% year-on-year, from approximately HKD 3,826,800,000 in 2020 to approximately HKD 4,389,400,000 in 2021[19]. - The net profit attributable to ordinary shareholders was HKD 46,000,000, reversing a net loss of HKD 37,300,000 in 2020[19]. - The EBITDA for 2021 was HKD 414,003,000, compared to HKD 344,976,000 in 2020, reflecting a significant recovery[5]. - The gross profit margin improved to 12.7% in 2021 from 11.2% in 2020[6]. - Overall revenue for 2021 increased by approximately 14.7% to about HKD 4,389,400,000, compared to approximately HKD 3,826,800,000 in 2020[30]. - Gross profit rose by approximately 30.6% to about HKD 558,900,000, with a gross margin increase from 11.2% in 2020 to 12.7% in 2021[30]. - The company reported a profit attributable to ordinary shareholders of approximately HKD 46,000,000 for 2021, compared to a loss of approximately HKD 37,300,000 in 2020[30]. - Revenue for the year ended December 31, 2021, was HKD 4,389,437, an increase of 14.7% from HKD 3,826,829 in 2020[194]. - Gross profit for the same period was HKD 558,943, representing a 30.6% increase compared to HKD 427,822 in 2020[194]. - Net profit for the year was HKD 49,096, a significant recovery from a loss of HKD 35,592 in 2020[194]. - Basic earnings per share for ordinary shareholders was HKD 5.3, compared to a loss of HKD 4.3 per share in the previous year[194]. Dividend and Shareholder Returns - The board proposed a final dividend of HKD 0.013 per share for the year[21]. - The board proposed a final dividend of HKD 0.013 per ordinary share, compared to no dividend in 2020, pending shareholder approval[48]. - The company reported a final dividend of HKD 0.013 per share for the year, compared to no dividend in the previous year[129]. Operational Challenges and Strategies - The company faced challenges due to supply chain disruptions and raw material shortages but managed to secure essential supplies[19]. - The company aims to diversify raw material supply sources to mitigate risks and ensure production continuity[34]. - The company anticipates ongoing supply chain challenges in 2022, including shortages of raw materials and shipping services[34]. - The company will continue to communicate closely with customers to manage order demands and ensure timely delivery of products[34]. - The company aims to enhance its competitive edge by providing comprehensive textile and garment production solutions[22]. Investment and Expansion Plans - The company plans to establish a comprehensive textile production base in Vietnam, aiming to start garment production in the second half of 2022[22]. - The company plans to invest in developing a new integrated textile production base in Vietnam[33]. - The group plans to accelerate the development of production facilities in Vietnam, aiming to commence garment production by the end of 2022[35]. - The group plans to build a textile production base on leased land in Vietnam, with costs to be covered by internal resources or bank loans[60]. Financial Position and Resources - The asset-to-liability ratio was 48.8% in 2021, indicating a stable financial position[6]. - The company completed a loan financing of HKD 1,300,000,000 in 2021 to enhance financial resources for future development[23]. - As of December 31, 2021, the group's current assets net value was approximately HKD 1,790,600,000, up from HKD 1,188,600,000 in 2020, mainly due to increased inventory[45]. - The group’s cash and cash equivalents were approximately HKD 863,400,000, compared to HKD 803,900,000 in 2020, with a current ratio of about 2.1 times[45]. - The total bank borrowings amounted to approximately HKD 1,815,000,000, an increase from HKD 1,544,200,000 in 2020, with a net debt to equity ratio of about 48.8%[45]. - Financing costs decreased by approximately 25.4% to about HKD 44,600,000 from HKD 59,900,000 in 2020, primarily due to reduced average bank borrowings and interest rates[39]. Governance and Compliance - The board of directors consists of eight members, including five executive directors and three independent non-executive directors[68]. - All directors confirmed compliance with the securities trading standards set forth by the Hong Kong Stock Exchange for the year ending December 31, 2021[67]. - The company confirmed compliance with listing rules, with independent non-executive directors constituting at least one-third of the board[75]. - The company’s independent non-executive directors confirmed their independence in accordance with listing rules[75]. - The company has implemented a budget management system to better monitor business and financial performance, with no significant failures in financial, operational, or compliance controls reported during the review year[91]. - The audit committee held three meetings during the year, with all members attending 100% of the meetings[90]. - The company has a risk management system in place to ensure effective monitoring and control of various operational risks[95]. - The company has adopted a shareholder communication policy to encourage active communication with shareholders[102]. Employee and Community Engagement - The company has been recognized for its contributions to the community and industry[106][111]. - The company made charitable donations totaling HKD 1,812,000 during the year[135]. - The company emphasizes maintaining strong relationships with employees, customers, and suppliers as a key factor for stable development[126]. Audit and Financial Reporting - The consolidated financial statements reflect the group's financial position as of December 31, 2021, and its performance for the year, prepared in accordance with Hong Kong Financial Reporting Standards[172]. - The audit was conducted under Hong Kong auditing standards, ensuring independence and adherence to ethical responsibilities[173]. - Key audit matters were identified based on professional judgment, which are significant to the audit of the consolidated financial statements[174]. - The company must assess its ability to continue as a going concern and disclose relevant matters if applicable[187]. - The audit report aims to provide reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[186]. - The independent auditor must comply with ethical requirements regarding independence and communicate any relationships that may affect independence[188].

Financial Performance - For the six months ended June 30, 2021, the company's revenue increased by approximately 26.5% to HKD 2,036,300,000 from HKD 1,610,000,000 in the same period last year[12]. - Gross profit rose by 110.8% to HKD 299,800,000, with a gross margin increase of 5.9 percentage points to 14.7%[12]. - The company reported a profit attributable to ordinary shareholders of HKD 39,500,000, compared to a loss of HKD 37,900,000 in the same period last year[12]. - Total sales revenue reached approximately HKD 2,036,300,000, an increase of about 26.5% compared to HKD 1,610,000,000 for the six months ended June 30, 2020[21]. - Gross profit was approximately HKD 299,800,000, representing an increase of about 110.8% from HKD 142,200,000 for the six months ended June 30, 2020, with a gross margin rising to approximately 14.7%[22]. - The company reported a net profit attributable to ordinary shareholders of approximately HKD 39,500,000, a significant recovery from a net loss of HKD 37,900,000 for the six months ended June 30, 2020[30]. - The company achieved a profit before tax of HKD 48,153,000, a turnaround from a loss of HKD 38,205,000 in the prior year[69]. - The company reported a profit of HKD 39,252,000 for the six months ended June 30, 2021, compared to a loss of HKD 38,883,000 in the same period of 2020, marking a significant turnaround[71]. - Total comprehensive income for the period was HKD 39,252,000, a recovery from a total comprehensive loss of HKD 161,125,000 in the previous year[71]. - The group reported a profit before tax of HKD 39,519,000 for the six months ended June 30, 2021, compared to a loss of HKD 37,862,000 for the same period in 2020[114]. Revenue Breakdown - The fabric business accounted for 91.4% of total revenue, while the garment business contributed 8.6%[12]. - For the six months ended June 30, 2021, total revenue from external customers was HKD 2,036,283,000, with the fabric segment contributing HKD 1,860,152,000 and the garment segment contributing HKD 176,131,000[88]. - Revenue from external customers in South Korea was HKD 753,596,000, an increase from HKD 568,511,000 in the same period last year[96]. - Revenue from knitted fabrics and related processing services was HKD 1,860,152,000, up from HKD 1,466,914,000, representing a 27% increase[103]. Expenses and Costs - Selling and distribution expenses increased to approximately HKD 68,400,000, up from HKD 45,000,000 for the six months ended June 30, 2020[25]. - Administrative expenses rose to approximately HKD 161,200,000, compared to HKD 146,800,000 for the six months ended June 30, 2020[26]. - The cost of sales and services for the six months ended June 30, 2021, was HKD 1,736,456,000, compared to HKD 1,467,812,000 in the previous year, reflecting an increase of 18.3%[110]. - Research and development costs increased to HKD 65,983,000 from HKD 62,050,000, indicating a focus on innovation[110]. Challenges and Risks - The company faced challenges in the garment segment due to factory shutdowns in Cambodia caused by COVID-19, leading to losses in that division[14]. - Ongoing geopolitical tensions between China and the U.S. may continue to affect raw material supply and pricing volatility[17]. - The company plans to actively communicate with key suppliers to maintain stable supply and mitigate the impact of raw material shortages[17]. - The company will seek alternative shipping channels to ensure timely delivery of goods to customers[17]. - Approximately 76.6% of the group's sales are denominated in USD, with the remaining sales in HKD and RMB, exposing the group to foreign exchange risks primarily related to RMB[37]. Capital Expenditures and Investments - Capital expenditures for developing a new textile production base in Vietnam have been delayed due to local lockdowns[15]. - The group invested approximately HKD 51,200,000 in capital expenditures during the period, with about 78.1% allocated for the purchase of plants and machinery[39]. - Capital expenditures for the six months ended June 30, 2021, were HKD 51,159,000, with the fabric segment accounting for HKD 38,013,000[88]. - The group had no significant contingent liabilities or major investments exceeding 5% of total assets as of June 30, 2021[41][42]. Financial Position - As of June 30, 2021, the company's current assets net value was approximately HKD 1,000,200,000, down from HKD 1,188,600,000 as of December 31, 2020[32]. - Total bank borrowings amounted to approximately HKD 1,828,400,000 as of June 30, 2021, compared to HKD 1,544,200,000 as of December 31, 2020[33]. - The company’s total assets less current liabilities amounted to HKD 2,806,369,000, down from HKD 3,091,716,000, reflecting a decline of approximately 9.2%[75]. - The company’s equity attributable to shareholders increased to HKD 2,036,839,000 from HKD 1,997,320,000, showing an increase of about 2.0%[75]. - Non-current assets decreased to HKD 1,806,140,000 as of June 30, 2021, down from HKD 1,903,145,000 at the end of 2020, reflecting a decline of approximately 5.1%[73]. - Current assets increased to HKD 3,057,489,000, up from HKD 2,800,235,000, representing a growth of about 9.2%[73]. - Current liabilities rose to HKD 2,057,260,000, compared to HKD 1,611,664,000, indicating an increase of approximately 27.6%[75]. Corporate Governance - The company has maintained good corporate governance practices throughout the reporting period[64]. - The audit committee, composed of three independent non-executive directors, oversees the financial reporting and risk management processes[65]. - The group did not engage in any equity fundraising activities during the period[45]. Workforce and Employment - The group employed 4,645 staff in China and 2,113 in Cambodia as of June 30, 2021, reflecting a stable workforce[47]. - Short-term employee benefits for key management personnel were HKD 13,355,000 for the six months ended June 30, 2021, slightly down from HKD 13,521,000 for the same period in 2020[135].