Fund Utilization - China Anchoring Energy Storage Group Limited provided supplementary information regarding the use of funds raised from the issuance of shares for the year ended December 31, 2021[1]. Reporting Updates - The supplementary announcement does not affect other information disclosed in the 2022 annual report[2]. Board of Directors - The board of directors remains unchanged as of the announcement date, with specific executive and independent directors listed[3].

Financial Performance - The company's revenue increased by 61.5% to RMB 603.9 million in 2022, compared to RMB 373.9 million in 2021[6] - Gross profit rose by 29.4% to RMB 142.6 million in 2022, up from RMB 110.2 million in 2021[6] - The net loss decreased to RMB 88.6 million in 2022, a 46.9% improvement from a net loss of RMB 166.9 million in 2021[11] - Basic and diluted loss per share was RMB 4.67 in 2022, compared to RMB 9.03 in 2021[6] - Total revenue for the year reached RMB 603.9 million, an increase of 61.5% from RMB 373.9 million in 2021[33] - Gross profit for the same period was RMB 142.630 million, up 29.5% from RMB 110.167 million in 2021[162] - Operating loss decreased to RMB 77.422 million in 2022 from RMB 118.349 million in 2021, reflecting an improvement of 34.5%[162] - The net loss attributable to equity holders from continuing operations was RMB 100.012 million, a reduction of 42.5% compared to RMB 174.391 million in 2021[163] - The total comprehensive income for the year ended December 31, 2022, was a loss of RMB 96,573,000, compared to a loss of RMB 174,354,000 in 2021, showing an improvement in overall financial performance[167] Dividend Policy - The company did not recommend a final dividend for the year, consistent with the previous year[6] - The company did not declare any interim dividends during the year and the board did not recommend any final dividends[125] - The company’s dividend policy will be determined by the board based on profitability, financial condition, and other relevant factors[79] Revenue Segmentation - The industrial products division generated a total revenue of RMB 500.9 million, accounting for 83.0% of total revenue, with a significant increase of 407.0% compared to the previous year[31] - The automotive industrial products segment contributed RMB 235.4 million, representing 39.0% of total revenue, showing a remarkable growth of 497.5% year-on-year[31] - The other industrial products segment achieved RMB 265.5 million, which is 44.0% of total revenue, reflecting a growth of 347.0% compared to the previous year[31] - The men's apparel division reported total revenue of RMB 102.6 million, which is 17.0% of total revenue, experiencing a decline of 62.7% year-on-year[31] - Revenue from the industrial products segment increased significantly to RMB 500.9 million, accounting for 83.0% of total revenue, compared to 26.4% in 2021, reflecting a growth of 407.0%[33] - Revenue from the men's apparel segment decreased to RMB 102.6 million, representing 17.0% of total revenue, a decline of 62.7% from RMB 275.1 million in 2021[33] Cost and Expenses - Cost of sales rose to RMB 461.3 million, up 74.9% from RMB 263.7 million in 2021, with the industrial products segment's cost increasing in line with revenue growth[34] - The overall gross margin decreased to 23.6% from 29.5% in 2021, primarily due to increased sales costs and price reductions to enhance customer loyalty[37] - The loss from the industrial products segment was RMB 23.5 million, a slight decrease from RMB 25.1 million in 2021, while the men's apparel segment improved its loss to RMB 123.8 million from RMB 169.8 million[38] - The company's total administrative and other operating expenses for the industrial products segment increased by 456.6% to RMB 55.1 million, accounting for 11.0% of revenue[43] - Selling and distribution expenses for the industrial products segment were RMB 23.5 million, representing 4.7% of revenue, a decrease from 5.9% in the previous year[41] Inventory and Receivables Management - Inventory turnover days improved to 34 days in 2022 from 60 days in 2021, a reduction of 26 days[7] - The average inventory turnover days decreased to 34 days in 2022 from 60 days in the previous year, improving inventory management[50] - The average trade receivables turnover days increased to 174 days in 2022, with the men's apparel segment showing a significant increase to 401 days[50] - The company offers distributors credit terms ranging from 90 to 180 days, which poses a risk of uncollectible receivables affecting financial performance[112] Strategic Initiatives - Jiangsu Heng'an acquired intellectual property and equipment for zinc bromine flow batteries for a total consideration of RMB 36 million, enhancing the company's strategic position in the energy storage sector[11] - The company established a research and production base for zinc bromine flow batteries in Jiangning, with trial production starting in November 2022[11] - The company plans to expand its energy storage business by launching a second phase development plan to increase R&D production base land and enhance production capacity for zinc-bromine flow batteries, expected to be completed by the end of 2023 or early 2024[15] - The company has diversified its industrial products business by selling automotive and motorcycle products to customers in Saudi Arabia, benefiting from high demand due to the country's strong economic recovery post-COVID-19 and high oil prices[15] - The company has acquired the intellectual property and equipment for zinc-bromine flow batteries through its subsidiary Jiangsu Heng'an Energy Technology Co., Ltd., indicating a strategic move into the energy storage market[17] Market Conditions - The automotive market in Saudi Arabia is projected to grow significantly, with a 36% growth rate estimated for the Middle East and North Africa region, and Saudi Arabia accounting for nearly 52% of vehicle sales in the Gulf Cooperation Council in 2020[20] - In 2022, approximately 626,000 vehicles were sold in Saudi Arabia, marking a 7.2% increase compared to 2021, and the highest sales figure in the past six years[20] - The demand for home improvement and renovation materials in Saudi Arabia is expected to rise due to the strong local economy and consumer willingness to renovate their residences[21] - The company believes that the demand for industrial products will remain promising in the coming years, supported by the strategic partnership agreements signed between China and Saudi Arabia[21] Corporate Governance - The board is committed to good corporate governance and has adopted the principles and code provisions of the corporate governance code as per the Hong Kong Stock Exchange[64] - The board of directors consists of four executive directors, one non-executive director, and three independent non-executive directors, with independent directors making up 37.5% of the board, ensuring compliance with listing rules[65] - The audit committee, comprising three independent non-executive directors, is responsible for overseeing financial reporting, internal controls, and risk management, having held three meetings during the year[71] - The company has appointed independent non-executive directors with appropriate accounting and financial management expertise, fulfilling the requirements of listing rules[69] - The board has authorized executive directors and senior management to implement business strategies and manage daily operations, with regular reviews of delegated responsibilities[66] - The company has made appropriate insurance arrangements for its directors and officers against legal claims[67] - The board is committed to continuous professional development, ensuring all directors are updated on regulatory developments and corporate governance practices[67] Risk Management - The company has established a risk management framework to identify and manage significant risks affecting the company's objectives[85] - The board is responsible for overseeing the effectiveness of the risk management and internal control systems[85] - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatements[86] Shareholder Engagement - The company encourages shareholders to participate in annual general meetings and to submit written suggestions to the board[91] - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting[92] - The voting at the annual general meeting is conducted on a poll basis, ensuring each share has one vote[93] Share Capital and Financing - The company issued a total of HKD 60 million (approximately RMB 512.8 million) convertible bonds at an 8% interest rate due in 2024, fully allocated for future business development and general working capital[18] - A total of 120 million new shares were issued at HKD 0.55 per share, raising approximately HKD 65.86 million (about RMB 56.29 million) for future business development and general working capital[59] - The company raised RMB 56,444,000 from share subscriptions in 2022, compared to RMB 77,657,000 in 2021, indicating a decline in capital raised through equity[168] - The company has unutilized financing of approximately RMB 148,900,000 as of December 31, 2022, from a credit facility of RMB 560,000,000[169] Compliance and Regulations - The company has confirmed compliance with the relevant provisions of the standard code for securities trading by all directors and senior management throughout the year[82] - The company has complied with all relevant laws and regulations in mainland China and Hong Kong, including labor and safety regulations, as of the report date[148] - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2022[151] Challenges and Risks - The company anticipates challenges in the men's apparel sector in China due to a weak retail environment and plans to monitor operations closely while controlling unnecessary expenses[15] - The company faces intense competition from both local and international apparel brands, impacting customer retention and profitability[108] - Changes in consumer behavior towards online shopping may hinder the company's ability to attract new distributors, as it does not currently rely on online platforms[105] - The company acknowledges the risk of relying on a limited number of customers, where the loss of any key client could adversely affect operations and financial performance[104] Employee and Development - The company emphasizes employee development and offers competitive compensation and stock option plans to attract and retain dedicated employees[118] - The company reported a total employee cost of approximately RMB 20.1 million for the year, an increase from RMB 14.8 million in 2021, with a total of 133 employees as of December 31, 2022[57]

Financial Performance - The group's revenue increased by 61.5% to RMB 603.9 million (2021: RMB 373.9 million) [2] - The group's gross profit rose by 29.4% to RMB 142.6 million (2021: RMB 110.2 million) [2] - The net loss for the group was RMB 88.6 million (2021: net loss of RMB 166.9 million) [2] - The basic and diluted loss per share was RMB 4.67 cents (2021: RMB 9.03 cents) [2] - The gross profit margin decreased to 23.6% from 29.5%, a decline of 5.9 percentage points [3] - The net loss margin improved to -14.7% from -44.7%, an increase of 30.0 percentage points [3] - The company reported a net loss of RMB 96,573,000 for 2022, compared to a loss of RMB 174,354,000 in 2021, indicating a 44.7% improvement year-over-year [7] - Basic and diluted loss per share from continuing operations was RMB (4.67) for 2022, an improvement from RMB (9.22) in 2021 [7] - The company reported a pre-tax loss of RMB 100,012 thousand for 2022, a significant improvement from a loss of RMB 178,078 thousand in 2021, representing a reduction of approximately 44% [41] - The company reported a net loss of RMB 113,557 thousand for the year ended December 31, 2022, compared to a net loss of RMB 86,960 thousand for the year ended December 31, 2021 [28][29] Revenue Breakdown - For the year ended December 31, 2022, the total revenue was RMB 603,911 thousand, with contributions from men's apparel at RMB 102,635 thousand, industrial products at RMB 500,878 thousand, and energy storage business at RMB 398 thousand [23] - The group reported a revenue of RMB 377,438 thousand for the year ended December 31, 2021, with men's apparel contributing RMB 275,026 thousand and industrial products contributing RMB 98,835 thousand [24] - Revenue from industrial products sales in 2022 reached RMB 500,878 thousand, a significant increase from RMB 98,835 thousand in 2021, reflecting a growth of approximately 406.5% [33] - Revenue from men's apparel sales decreased to RMB 91,976 thousand in 2022 from RMB 264,271 thousand in 2021, a decline of about 65.2% [33] - The new energy storage battery segment contributed RMB 0.4 million in revenue, marking a 100% increase [74] - Industrial products revenue significantly increased to RMB 500.9 million, accounting for 83.0% of total revenue, up from 26.4% in 2021 [77] - Saudi Arabia has become the main revenue source for the company, contributing approximately 83.0% of total revenue [77] Assets and Liabilities - Total assets amounted to RMB 788,655,000 in 2022, up from RMB 703,764,000 in 2021, reflecting an increase of 12.1% [8] - Current liabilities increased to RMB 786,719,000 in 2022 from RMB 593,651,000 in 2021, representing a 32.6% rise [8] - The company’s equity attributable to owners decreased to RMB 415,304,000 in 2022 from RMB 446,677,000 in 2021, a decline of 7.0% [9] - Total liabilities as of December 31, 2022, were RMB 898,296 thousand, compared to RMB 662,433 thousand as of December 31, 2021, indicating an increase of about 35.6% [26][27] - The asset-liability ratio increased to approximately 116.8% as of December 31, 2022, compared to 100.8% in 2021, primarily due to a decrease in total equity [93] - Total equity decreased by approximately RMB 18.6 million to about RMB 435.4 million, down from RMB 454.0 million in 2021, mainly due to losses incurred during the year [94] Cash Flow and Financing - The company’s cash and cash equivalents decreased to RMB 50,375,000 in 2022 from RMB 131,821,000 in 2021, a decline of 61.8% [8] - The total interest-bearing loans amounted to approximately RMB 508.5 million, up from RMB 457.7 million in 2021, with bank loans constituting RMB 411.1 million [92] - The company issued convertible bonds totaling HKD 60 million (approximately RMB 51.28 million) at an 8% interest rate, maturing in 2024, fully allocated for future business development and general working capital [60] - The net proceeds from the convertible bond issuance amounted to approximately HKD 58.32 million, with HKD 51.3 million allocated for future development and HKD 7.0 million for general working capital [112] Operational Efficiency - The inventory turnover days decreased to 34 days from 60 days [3] - The trade receivables turnover days decreased to 174 days from 186 days [3] - The average inventory turnover days improved to 34 days from 60 days in the previous year, indicating better inventory management [95] - The average trade receivables turnover days decreased to 174 days from 186 days, reflecting improved collection efforts [95] - The average trade payables turnover days increased to 123 days from 57 days, primarily due to higher turnover days in the industrial products segment [96] Corporate Governance and Structure - The board currently consists of four executive directors, one non-executive director, and three independent non-executive directors, with independent directors making up 37.5% of the board [111] - The company has complied with corporate governance codes and regulations, ensuring a balanced power structure within the board [111] - The audit committee reviewed the financial performance for the year ending December 31, 2022 [119] Strategic Initiatives - The company is implementing cost control measures and seeking new investments to achieve profitability and positive cash flow [10] - The company has expanded its business in the energy storage battery sector, acquiring intellectual property and equipment related to zinc-bromine flow batteries through its subsidiary Jiangsu Heng'an Energy Storage Technology Co., Ltd. [59] - The first phase of the zinc-bromine flow battery research and production base was completed in November 2022, and trial production has commenced [73] - The company plans to initiate the second phase of development to increase production capacity by the end of 2023 [73] - The company changed its name from "China Fordoo Holdings Limited" to "China Anchu Energy Storage Group Limited" on September 2, 2022, reflecting a strategic rebranding [114] Market Insights - The automotive market in Saudi Arabia is projected to grow at a rate of 36%, with the country accounting for nearly 52% of the Gulf Cooperation Council's vehicle sales in 2020 [62] - In 2022, approximately 626,000 vehicles were sold in the Saudi Arabian automotive market, marking a 7.2% increase compared to 2021 and the highest sales figure in six years [62] - Saudi Arabia's GDP grew by 8.7% in 2022, benefiting from high vaccination rates and strong oil demand due to the Ukraine war [65] Employee and Operational Metrics - The group has 133 employees as of December 31, 2022, with total employee costs amounting to approximately RMB 20.1 million for the year [103] - The product design and development team consisted of 6 members as of December 31, 2022, down from 14 in 2021, with an average of 10 years of experience in the fashion industry [69]

Financial Performance - The group's revenue from continuing operations increased by 152.6% to RMB 272.2 million compared to RMB 107.7 million in 2021[5] - Gross profit from continuing operations rose by 301.8% to RMB 90.6 million, up from RMB 22.6 million in 2021[5] - The net loss attributable to equity holders was RMB 3.6 million, significantly improved from a loss of RMB 63.5 million in 2021[5] - Basic and diluted loss per share was RMB 0.15, compared to RMB 3.30 in 2021[5] - The gross margin increased to 33.3% from 20.9%, while the net profit margin improved to 4.9% from -59.0%[6] - Revenue for the six months ended June 30, 2022, was RMB 272,187 thousand, a significant increase of 152% compared to RMB 107,748 thousand in 2021[43] - Gross profit for the same period was RMB 90,628 thousand, up from RMB 22,554 thousand, reflecting a gross margin improvement[43] - Operating profit turned positive at RMB 29,214 thousand, compared to an operating loss of RMB 56,644 thousand in the previous year[43] - The company reported a net profit from continuing operations of RMB 13,377 thousand, a recovery from a loss of RMB 63,538 thousand in 2021[43] - Total comprehensive income for the period was RMB 14,824 thousand, a significant turnaround from a loss of RMB 63,311 thousand in the prior year[44] Revenue Segmentation - The industrial products segment contributed significantly to revenue growth, driven by high demand from Saudi Arabian customers due to economic recovery and high oil prices[9] - Revenue from the industrial products segment contributed approximately RMB 223.6 million, accounting for about 82.2% of total revenue for the period[11] - The men's apparel segment saw a revenue decrease primarily due to the ongoing COVID-19 pandemic and economic slowdown in China, with a total revenue of RMB 48.6 million, down 54.9% from RMB 107.7 million[12] - The industrial products division became the main revenue source for the group during the period, driven by high demand from Saudi Arabian customers due to economic recovery and high oil prices[27] - The revenue from the industrial products division reached RMB 223,605,000 for the six months ended June 30, 2022, compared to RMB 107,748,000 for the same period in 2021, indicating a significant increase[69] Cost Management - Sales cost from continuing operations increased by approximately 113.1% to RMB 181.6 million from RMB 85.2 million in the previous period[16] - Selling and distribution expenses decreased by approximately 32.7% to RMB 17.0 million, accounting for about 6.2% of total revenue[18] - Administrative and other operating expenses decreased by approximately 34.2% to RMB 32.7 million, accounting for about 12.1% of total revenue[19] - Financing costs decreased by 12.3% to RMB 13.1 million due to a reduction in bank borrowings and corporate bonds[20] - The company is focusing on strict cost control and exploring business expansion opportunities to maximize long-term returns for shareholders[42] Inventory and Receivables Management - Inventory turnover days decreased to 35 days from 109 days, and trade receivables turnover days improved to 176 days from 290 days[7] - The average inventory turnover days decreased to 35 days from 109 days in the previous period, with total inventory amounting to approximately RMB 38.2 million, a reduction of about 14.9%[31] - The average trade receivables turnover days decreased to 176 days from 290 days, with trade receivables in the menswear division decreasing by approximately 24.9% to RMB 134.4 million[31] - The company recognized a credit loss provision of approximately RMB 19.2 million for trade receivables, compared to RMB 9.8 million in 2021[10] Debt and Financing - The debt-to-equity ratio increased to 103.7% from 100.8%, indicating a slight rise in leverage[8] - The total interest-bearing borrowings amounted to approximately RMB 492.1 million, an increase from RMB 457.7 million as of December 31, 2021, with bank loans at RMB 396.5 million[28] - The company issued convertible bonds totaling HKD 60 million (approximately RMB 51.3 million) with an interest rate of 8%, maturing in 2024, to support future business development and debt repayment[9] - The company has established guarantee contracts with several banks to secure a maximum credit amount of RMB 1,192,900,000, with unused financing amounting to RMB 796,190,000 as of June 30, 2022[54] Corporate Governance and Structure - The company established an audit committee consisting of three independent non-executive directors to review financial reports and risk management systems[132] - The board currently consists of four executive directors, one non-executive director, and three independent non-executive directors, with independent directors making up 37.5% of the board[136] - The company has complied with all applicable corporate governance code provisions during the reporting period[135] Strategic Initiatives - The company plans to enhance its design and product development capabilities while strengthening brand establishment strategies[9] - The company plans to complete the restructuring of its factories in Quanzhou by the end of 2022, which aims to develop a one-stop home and commercial renovation business platform[35] - The company opened 12 new stores and renovated 14 existing stores during the period to enhance brand image[24] Market and Economic Conditions - The company expects a decrease in sales and profit margins in the industrial products division in the second half of 2022 due to the impact of COVID-19 on operations and customer orders[42] - The men's clothing division generated revenue of RMB 43,351,000, a decrease from RMB 103,112,000 in the previous year, reflecting a decline in sales[69] Shareholder Information - Major shareholders include Donghai International Financial Holdings Company Limited and Huang Dongyin, each holding approximately 18.96% and 18.29% of the shares, respectively[130] - The company has a total issued share capital of 4,809,421,000 shares as of June 30, 2022, with a par value of HKD 0.0025 per share[107]

Financial Performance - The group's revenue increased by 38.4% to RMB 373.9 million in 2021, compared to RMB 270.1 million in 2020[12]. - Gross profit rose by 43.3% to RMB 110.2 million in 2021, up from RMB 76.9 million in 2020[13]. - The net loss for the group was RMB 166.9 million in 2021, a significant improvement from a net loss of RMB 552.2 million in 2020[13]. - Basic and diluted loss per share was RMB 7.37 in 2021, compared to RMB 28.71 in 2020[13]. - The gross margin improved to 29.5% in 2021, up from 28.5% in 2020, reflecting a 1.0 percentage point increase[12]. - The return on equity from continuing and discontinued operations was -37.6% in 2021, an improvement of 64.0 percentage points from -101.6% in 2020[12]. - The company recorded a loss from continuing operations of approximately RMB 166.9 million, a decrease of about RMB 385.3 million or 69.8% compared to the previous fiscal year[21]. - The company reported a net loss of RMB 178,078,000 for the year ended December 31, 2021, compared to a loss of RMB 552,229,000 in 2020, indicating a significant improvement in performance[181]. Revenue Sources - Revenue from the menswear division slightly increased from RMB 270.1 million to RMB 275.1 million, a rise of about 1.9% year-on-year[21]. - Men's trousers remained the primary revenue source, accounting for approximately 38.8% of total revenue in 2021, down from 52.6% in 2020[23]. - The business casual segment generated RMB 180.1 million, representing 48.2% of total revenue, consistent with the previous year[25]. - Revenue from online distributors increased significantly, rising from 15.6% to 21.2% of total revenue, reflecting enhanced online marketing efforts[28]. - The industrial products segment contributed RMB 98.8 million, making up 26.4% of total revenue, with a significant increase in sales costs[27]. Operational Efficiency - Inventory turnover days decreased to 60 days in 2021 from 81 days in 2020, indicating improved inventory management[12]. - Trade receivables turnover days improved to 186 days in 2021, down from 202 days in 2020[12]. - The average inventory turnover days for the year was 60 days, down from 81 days in the previous year, indicating improved efficiency[49]. - The average trade receivables turnover days increased to 216 days in the men's apparel segment, up 14 days from the previous year, reflecting challenges in collections[50]. Cost Management - Sales costs from continuing operations rose by approximately 36.5% to RMB 263.7 million, primarily due to increased raw material costs[29]. - Selling and distribution expenses decreased by approximately 23.9 percentage points to 13.5% of total revenue, totaling RMB 50.4 million[31]. - Administrative and other operating expenses accounted for approximately 27.8% of total revenue, down from the previous year, totaling RMB 103.7 million[32]. - Administrative and other operating expenses from the men's apparel segment decreased by approximately RMB 23.2 million to RMB 93.8 million, a year-on-year reduction of 9.2 percentage points[33]. - Financing costs from continuing operations decreased by approximately 16.3% to about RMB 28.7 million, down from RMB 34.3 million in 2020, primarily due to a reduction in bank loans and corporate bonds[34]. Governance and Compliance - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[66]. - The company is committed to maintaining high standards of corporate governance as per the Hong Kong Stock Exchange's guidelines[66]. - The company has appointed three independent non-executive directors, exceeding one-third of the board's total number, in compliance with listing rules[72]. - The audit committee consists of three independent non-executive directors, with the chairman possessing appropriate professional qualifications and accounting experience[74]. - The company has ensured compliance with corporate governance policies and practices, with all directors receiving necessary training and updates on regulations[69]. Risk Management - The company has established a risk management framework to identify and manage significant risks, with senior management required to assess risks annually[93]. - The board has reviewed the effectiveness of the risk management and internal control systems, concluding they are effective and adequate[93]. - The company has adopted risk management policies to provide direction for identifying, assessing, and managing major risks[93]. - The company faces risks related to fashion trends and consumer preferences, which can significantly impact its performance[113]. - The group faces risks from macroeconomic changes that could affect consumer spending on non-essential products[115]. Investment and Financing - The company secured bank borrowings amounting to RMB 398,500,000 in 2021, with an unused credit facility of approximately RMB 794,690,000 as of December 31, 2021[185]. - The company is actively seeking new investment opportunities and tightening cost controls to achieve profitability and positive cash flow[185]. - The company completed the acquisition of Good Productive Limited (GPL) for HKD 92 million on March 5, 2021, which was later sold for HKD 9.7 million on November 30, 2021, resulting in a recognized gain of approximately RMB 3.4 million[52][54]. - The company acquired intellectual property and equipment for zinc-bromine flow batteries for a total consideration of RMB 53.6 million, enhancing its energy storage business segment[21]. Shareholder Information - The board will ensure that all appointments are based on merit while maintaining a balance of skills and diversity[86]. - The company’s board members are subject to re-election every three years at the annual general meeting[84]. - The company has not established any rights for directors or their family members to purchase shares or debt securities during the year[139]. - The company has not disclosed any tax relief or exemptions available to shareholders holding its securities[133]. - The company maintained the required public float as per listing rules as of the report date[131]. Financial Reporting Standards - The group adopted new International Financial Reporting Standards (IFRS) and amendments effective from January 1, 2021, including IFRS 16 and IFRS 9, with no significant impact on financial performance[187]. - The group expects that the application of the revised IFRS and IAS will not have a significant impact on its financial condition or performance in the foreseeable future[189]. - The financial statements must fairly reflect the relevant transactions and events, and the overall presentation, structure, and content must be assessed[174]. - The auditor's conclusion is based on evidence obtained up to the date of the auditor's report, with future events potentially affecting the group's ability to continue as a going concern[174].

Financial Performance - The company's revenue increased by 11.4% to RMB 105.7 million in the first half of 2021, compared to RMB 94.9 million in the same period of 2020[11]. - Gross profit decreased by 36.3% to RMB 20.5 million, down from RMB 32.2 million in 2020[11]. - The net loss for the company was RMB 64.8 million, slightly improved from a net loss of RMB 67.1 million in 2020[11]. - Basic and diluted loss per share was RMB 3.4 cents, compared to RMB 3.5 cents in 2020[11]. - The gross margin decreased to 19.4%, a drop of 145 basis points compared to the previous year[12]. - Other income rose by 178.4% to RMB 10.1 million, primarily driven by increased brand licensing and rental income[24]. - Selling and distribution expenses increased by 120.4% to RMB 28.8 million, accounting for 27.3% of total revenue, as the company advanced advertising activities to attract customers[25]. - Administrative and other operating expenses decreased by 30.6% to RMB 59.8 million, mainly due to reduced provisions for expected credit losses and cost-saving measures[26]. - Financing costs decreased by 14.3% to RMB 15.0 million, attributed to a reduction in bank borrowings and corporate bonds[27]. - The company reported a loss before tax of RMB 72,917 thousand, compared to a loss of RMB 80,848 thousand in the previous year[53]. - Total comprehensive loss for the period was RMB 64,845 thousand, slightly improved from RMB 67,115 thousand in 2020[53]. Revenue Breakdown - For the first half of 2021, the company's total revenue reached RMB 105.6 million, an increase of 11.3% compared to RMB 94.9 million in the same period of 2020[17]. - The apparel segment accounted for 97.7% of total revenue, with men's casual wear being the largest contributor at RMB 72.4 million, representing 68.5% of total revenue[18]. - Revenue from online distributors surged by 156.3%, increasing from RMB 12.8 million to RMB 32.8 million, reflecting the company's efforts in expanding online distribution channels[19]. - Total revenue for the six months ended June 30, 2021, was RMB 105,677 thousand, an increase of 11.5% compared to RMB 94,857 thousand in 2020[53]. - The men's pants segment generated revenue of RMB 58,338,000, while men's outerwear contributed RMB 44,774,000, showing increases from RMB 52,056,000 and RMB 42,580,000 respectively in the prior year[78]. Store Operations - The company closed 40 retail stores, reducing the total to 296 stores as of June 30, 2021, down from 336 stores at the end of 2020[15]. - As of June 30, 2021, the company had 296 retail stores, a decrease of 40 stores from 336 as of December 31, 2020, due to ongoing store network consolidation strategies[30]. - 81.1% of retail stores were located in department stores or shopping centers, while 13.2% were independent stores as of June 30, 2021[31]. - The distribution network included 56 distributors and 33 secondary distributors as of June 30, 2021, an increase from 45 and a decrease from 39, respectively, as of December 31, 2020[32]. Financial Position - The liquidity ratio showed an increase in inventory turnover days to 109 days, up from 63 days in 2020[10]. - The debt-to-equity ratio increased to 96.8% as of June 30, 2021, compared to 93.9% at the end of 2020[13]. - As of June 30, 2021, the total cash and bank balances amounted to RMB 111.6 million, down from RMB 199.3 million as of December 31, 2020[37]. - The total interest-bearing borrowings were RMB 464.6 million as of June 30, 2021, a decrease from RMB 510.2 million as of December 31, 2020[38]. - The company's equity decreased by RMB 63.3 million to RMB 480.1 million as of June 30, 2021, primarily due to losses incurred in the first half of 2021[39]. - The company's net current liabilities as of June 30, 2021, were RMB 184,572,000, raising concerns about its ability to continue as a going concern[65]. - The total liabilities as of June 30, 2021, were RMB 640,818,000, a slight decrease from RMB 662,473,000 as of December 31, 2020[74]. Strategic Initiatives - The company aims to enhance its design and product development capabilities to improve customer loyalty and meet market demands[14]. - The company plans to continue focusing on online sales and expanding its market presence to recover from the impacts of the COVID-19 pandemic[20]. - The company plans to explore business expansion and diversification opportunities while maintaining strict cost control to enhance long-term returns for shareholders[36]. - The company aims to develop new product lines that attract target customers with innovative and high-quality elements to align with marketing strategies[36]. - The company is restructuring several surplus factories in Quanzhou to develop a one-stop home and commercial renovation business platform, expected to be completed by early 2022[45]. Employee and Management Information - The company had 158 employees as of June 30, 2021, down from 171 employees at the end of 2020, due to cost-saving measures[48]. - Total remuneration for key management personnel for the six months ended June 30, 2021, was RMB 1,101,000, compared to RMB 938,000 in 2020[137]. Corporate Governance - The board of directors did not recommend any dividend payment for the six months ended June 30, 2021, consistent with 2020[124]. - The board consists of four executive directors and three independent non-executive directors, with independent directors making up 43% of the board[149]. - The company has established an audit committee composed of three independent non-executive directors to review financial reporting and internal controls[146]. - All directors and senior management have confirmed compliance with the relevant requirements of the standard code throughout the reporting period[151].

Financial Performance - The group's revenue decreased by 24.8% to RMB 270.1 million in 2020, down from RMB 359.0 million in 2019[6] - Gross profit fell by 43.1% to RMB 76.9 million, compared to RMB 135.2 million in the previous year[6] - The net loss for the group increased by 81.8% to RMB 552.2 million, up from RMB 303.7 million in 2019[6] - Basic and diluted loss per share was RMB 28.71, compared to RMB 15.79 in 2019[6] - The gross profit margin decreased to 28.5% from 37.7%, a decline of 9.2 percentage points[7] - The net loss margin was -204.5%, reflecting an increase of 119.9 percentage points[7] - The company recorded a loss of approximately RMB 552.2 million in 2020, an increase in loss of about 81.8% compared to RMB 303.7 million in 2019[14] - The company reported a net loss of RMB 552,229,000 for the year, compared to a net loss of RMB 311,277,000 in 2019, indicating a worsening financial position[143] - Basic and diluted loss per share for the year was RMB 28.71, compared to RMB 16.16 in 2019, highlighting increased losses per share[143] Business Strategy and Acquisitions - The company successfully acquired Tianjin Blue High Technology Co., Ltd. for RMB 1.46 million, focusing on software development and automotive sales[10] - The acquisition of Good Productive Limited was completed on March 30, 2021, enabling the development of an online automotive sales platform[10] - The company is diversifying its business by integrating online e-commerce with offline sales services, targeting opportunities in the automotive industry[10] - The company plans to expand into the automotive sales sector to enhance shareholder value in the short term[11] - The company aims to improve operational efficiency by closing underperforming retail stores and strengthening partnerships with distributors[13] Retail Operations - The company closed 162 retail stores, reducing the total from 498 stores at the end of 2019 to 336 stores by December 31, 2020[14] - The number of retail stores decreased from 498 as of December 31, 2019, to 336 as of December 31, 2020, a net reduction of 162 stores[30] - Revenue from the North China region fell by 63.3% to RMB 43.1 million, while the East China region saw a 7.6% increase to RMB 156.6 million[19] - The company's total revenue from the East and North China regions accounted for approximately 74.0% of total revenue for the year, up from 73.3% in 2019[20] Financial Position and Liabilities - As of December 31, 2020, the total cash and bank balance of the company was approximately RMB 199.3 million, a decrease from RMB 488.1 million in 2019[36] - The company's total borrowings amounted to RMB 510.2 million as of December 31, 2020, compared to RMB 503.1 million in 2019, with a significant portion being bank loans and corporate bonds[36] - The asset-liability ratio increased to approximately 93.9% as of December 31, 2020, up from 46.0% in 2019, primarily due to a decrease in total equity[37] - The company reported a net loss of RMB (552,229) thousand for the year 2020, compared to a loss of RMB (310,921) thousand in 2019, indicating a worsening financial performance[147] Cost Management and Efficiency - Financing costs increased by 18.9% year-on-year to approximately RMB 34.3 million, primarily due to an increase in corporate bonds and average interest rates[26] - Selling and distribution expenses decreased by approximately RMB 12.6 million to about RMB 66.2 million, accounting for approximately 24.5% of total revenue, an increase of 2.6 percentage points year-on-year[24] - Administrative and other operating expenses increased by approximately RMB 2.3 million to RMB 168.8 million, accounting for about 62.5% of total revenue, an increase of 1.4 percentage points year-on-year[25] - The company is implementing measures to tighten control over costs and expenses while seeking new investments and business opportunities to achieve profitability and positive cash flow[149] Governance and Board Structure - The board consists of four executive directors and three independent non-executive directors, with independent directors making up more than one-third of the board, ensuring a balanced power structure[50] - The board of directors consists of four executive directors and three independent non-executive directors, ensuring a balanced governance structure[51] - The audit committee, comprising three independent non-executive directors, reviewed the consolidated financial statements for the year ended December 31, 2020[56] - The board is responsible for setting the overall goals and strategies of the group, as well as monitoring operational and financial performance[52] Risk Management - The company has established a risk management framework to identify, assess, and manage significant risks[71] - The risk management and internal control systems are deemed effective and sufficient by the board[72] - The company has implemented measures to manage potential conflicts of interest with controlling shareholders[76] Employee and Operational Efficiency - The total employee cost for the group in the fiscal year was approximately RMB 32.0 million, a decrease from RMB 43.5 million in 2019, with a total of 171 employees as of December 31, 2020[45] - The company continues to invest in product design and development, with a team of 37 members, averaging 10 years of experience in the fashion industry[34] - The company provides competitive compensation and training opportunities to attract and retain loyal employees[97] Compliance and Legal Matters - The company has complied with all relevant laws and regulations in both mainland China and Hong Kong, with no significant legal or administrative proceedings adversely affecting its business or financial condition[127] - The company confirmed compliance with non-competition commitments made by major shareholders, ensuring no conflicts of interest in competitive businesses[119] Financial Reporting and Audit - The financial statements have been prepared in accordance with International Financial Reporting Standards and reflect a true and fair view of the group's financial position as of December 31, 2020[132] - The audit opinion is based on sufficient and appropriate audit evidence obtained regarding the financial statements[133] - The group engaged an independent external valuer to assess the recoverable amount of cash-generating units for impairment testing[135] Inventory and Receivables Management - The average inventory turnover days increased to 81 days in 2020 from 55 days in 2019, attributed to distributors delaying orders due to concerns over the COVID-19 pandemic[38] - Trade receivables increased by approximately 19.8% year-on-year to RMB 163.1 million as of December 31, 2020, with an average collection period of 202 days, up from 165 days in 2019[38] Future Outlook - The company expects product demand to increase as the economy recovers post-COVID-19[11] - The company anticipates that the application of other new IFRS and amendments will not have a significant impact on the consolidated financial statements in the foreseeable future[157]

Financial Performance - The company's revenue decreased by 32.5% to RMB 949 million for the six months ended June 30, 2020, compared to RMB 1,405 million in the same period of 2019[8]. - Gross profit fell by 40.0% to RMB 322 million, down from RMB 536 million in the previous year[8]. - The net loss for the period was RMB 671 million, compared to a net loss of RMB 461 million in 2019[8]. - Basic and diluted loss per share was RMB 0.035, compared to RMB 0.024 in the previous year[8]. - Operating loss increased to RMB 63,384 thousand, compared to RMB 41,227 thousand in the previous year, reflecting a deterioration of 53.7%[66]. - Loss before tax was RMB 80,848 thousand, up 46.7% from RMB 55,087 thousand in 2019[66]. - The company reported a total comprehensive loss of RMB 68,494 thousand for the period, compared to RMB 56,271 thousand in 2019, an increase of 21.7%[68]. - For the six months ended June 30, 2020, the company reported a net loss of RMB 67,115 thousand, compared to a loss of RMB 55,883 thousand for the same period in 2019, representing a 20.0% increase in losses year-over-year[76]. Retail Operations - The number of retail stores decreased from 498 at the end of 2019 to 397 as of June 30, 2020, a net reduction of 101 stores[12]. - As of June 30, 2020, the company operated 397 retail stores, a net decrease of 101 stores from 498 as of December 31, 2019, due to the ongoing retail network consolidation strategy[32]. - 84.1% of the retail stores were located in department stores or shopping centers, while 9.8% were independent stores[33]. - The distribution network included 47 distributors and 61 secondary distributors as of June 30, 2020, down from 50 and 82, respectively, as of December 31, 2019[34]. Revenue Breakdown - Men's trousers remained the primary revenue source, accounting for 54.9% of total revenue in the first half of 2020, down from 74.9% in the first half of 2019[16]. - The business casual segment generated RMB 63.9 million, representing 67.3% of total revenue, a decline of 18.4% from RMB 78.3 million in the prior year[17]. - Revenue from the East China region was RMB 43.8 million, accounting for 46.2% of total revenue, down 15.0% from RMB 51.5 million in the previous year[18]. - Revenue for the six months ended June 30, 2020, was RMB 94,857 thousand, a decrease of 32.5% compared to RMB 140,463 thousand in 2019[66]. - Revenue from men's trousers was RMB 52,056, down 50.5% from RMB 105,185 in the same period of 2019[100]. - Revenue from men's outerwear increased to RMB 42,580, up 22.4% from RMB 34,703 in the same period of 2019[100]. Cost and Expenses - The cost of sales decreased by approximately 27.8% to RMB 62.7 million in the first half of 2020, compared to RMB 86.8 million in the same period of 2019[20]. - Selling and distribution expenses decreased by approximately 33.8% to RMB 13.1 million, accounting for about 13.8% of total revenue[23]. - Financing costs rose by approximately 26.0% to RMB 17.5 million, attributed to increased bank borrowings and corporate bonds[26]. - Research and development expenses decreased to RMB 2,645,000 in 2020 from RMB 4,129,000 in 2019, a reduction of 36.0%[103]. - Inventory costs significantly dropped to RMB 62,570,000 in 2020 from RMB 112,851,000 in 2019, reflecting a decrease of 44.5%[103]. Assets and Liabilities - Total assets decreased to RMB 1,068,620 thousand as of June 30, 2020, from RMB 1,092,465 thousand at the end of 2019[71]. - The total liabilities as of June 30, 2020, were RMB 675,581, a decrease from RMB 700,178 as of December 31, 2019, indicating a reduction of about 3.5%[94]. - The company's equity decreased by approximately RMB 68.5 million to about RMB 1,025.7 million as of June 30, 2020, primarily due to losses incurred in the first half of 2020[43]. - The total borrowings amounted to approximately RMB 518.3 million as of June 30, 2020, compared to RMB 503.1 million as of December 31, 2019[42]. Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2020, was RMB 36,841 thousand, a significant decline from a net cash inflow of RMB 13,870 thousand in the same period of 2019[79]. - The company raised RMB 109,500 thousand from bank and other borrowings during the six months ended June 30, 2020, compared to RMB 122,500 thousand in the same period of 2019[79]. - The company’s cash flow from financing activities showed a net cash outflow of RMB 5,298 thousand for the six months ended June 30, 2020, compared to a net cash outflow of RMB 32,041 thousand in the same period of 2019[79]. Strategic Initiatives - The company plans to enhance its design and product development capabilities while strengthening brand building strategies to meet customer demands[11]. - The company plans to continue monitoring business operations and control unnecessary expenses while developing new product lines to attract target customers[40]. - The company is exploring opportunities for business expansion and diversification, including the potential launch of an alliance service platform[40]. - The company opened 6 new stores and renovated 9 existing stores in the first half of 2020 to enhance brand image[36]. Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to review accounting principles and internal controls[178]. - The company complied with all applicable provisions of the Corporate Governance Code, except for a deviation regarding the attendance of independent non-executive directors at the annual general meeting[183]. - The board consists of three executive directors and three independent non-executive directors, with independent directors making up 50% of the board, exceeding the listing rules requirement[183].

FORDOO china fordoo holdings limited 中國虎都控股有限公司 (於開曼群島註冊成立之有限公司) 股份代號：2399 虎都 Do 2019 年報 | --- | --- | --- | --- | |-------|-------|-------|-------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 有關虎都 | | | | | 我們專注於設計、採購、生產及銷 | | | | | 虎都是中國領先的男裝企業之一。 售自有品牌的男裝產品。 | 目錄 02 公司資料 03 財務摘要 04 主席報告 06 管理層討論及分析 18 企業管治報告 28 董事及高級管理層履歷詳情 30 環境、社會及管治報告 49 董事會報告 60 獨立核數師報告 67 綜合損益及其他全面收益表 69 綜合財務狀況表 71 綜合權益變動表 72 綜合現金流量表 73 財務報表附註 146 五年概要 ...

Financial Performance - The company's revenue decreased by 51.5% to RMB 152.2 million for the six months ended June 30, 2019, compared to RMB 314.1 million in the same period of 2018[8]. - Gross profit fell by 47.0% to RMB 55.6 million, down from RMB 104.8 million year-on-year[8]. - The net loss for the period was RMB 56.0 million, a significant increase from a net loss of RMB 7.1 million in the previous year[8]. - Basic and diluted loss per share was RMB 11.6 cents, compared to RMB 1.47 cents in the same period of 2018[8]. - Revenue decreased approximately 52% from RMB 314.1 million in the first half of 2018 to RMB 152.2 million in the first half of 2019[20]. - Men's trousers remained the primary revenue source, accounting for 69.1% of total revenue in the first half of 2019, compared to 56.0% in the same period of 2018[21]. - The business casual segment generated RMB 78.3 million, representing 51.4% of total revenue in the first half of 2019, down from 37.9% in the previous year[22]. - The company reported a loss attributable to shareholders of approximately RMB 56.0 million in the first half of 2019, compared to a loss of RMB 7.1 million in the first half of 2018[34]. - The company reported a net loss of RMB 55,954,000 for the six months ended June 30, 2019, compared to a loss of RMB 7,080,000 in the same period of 2018[123]. Store Operations - The company closed 81 retail stores, reducing the total number of stores to 591 as of June 30, 2019, from 672 stores at the end of 2018[14]. - The total number of retail stores decreased from 672 at the end of 2018 to 591 by June 30, 2019, due to the ongoing store network consolidation strategy[36]. - The distribution network included 40 distributors and 91 secondary distributors as of June 30, 2019, down from 50 and 104 respectively at the end of 2018[37]. - The company opened 8 new stores and renovated 13 existing stores in the first half of 2019 to enhance brand image[38]. Financial Position - Total liabilities decreased from RMB 853 million as of December 31, 2018, to RMB 782 million as of June 30, 2019[16]. - The debt-to-equity ratio remained stable at 37.9%, slightly up from 37.5% at the end of 2018[10]. - The total equity decreased by approximately RMB 56.2 million to about RMB 1,353.5 million as of June 30, 2019, compared to RMB 1,409.7 million as of December 31, 2018[48]. - The company’s liabilities totaled RMB 782,406,000 as of June 30, 2019, down from RMB 852,642,000 at the end of 2018[114]. - The company reported a cumulative unrecognized share of losses from its joint venture of RMB (4,406,000) as of June 30, 2019, unchanged from the previous year[134]. Cash Flow and Liquidity - The net cash position as of June 30, 2019, was RMB 85.0 million, down from RMB 94.8 million as of December 31, 2018[46]. - Cash flow from operating activities for the six months ended June 30, 2019, was approximately RMB 13.9 million, a decrease from RMB 52.3 million for the same period in 2018[46]. - Cash flow from investing activities for the six months ended June 30, 2019, was approximately RMB 51.9 million, an increase from RMB 32.4 million for the same period in 2018[48]. - The company maintains a net cash position as of June 30, 2019, ensuring sufficient working capital for operations[49]. - The company reported a net cash inflow from investing activities of RMB 51,930,000, a significant improvement from a net outflow of RMB 32,405,000 in the previous year[85]. Inventory and Receivables - The average inventory turnover days increased to 78 days in the first half of 2019, compared to 46 days in the same period last year, due to a decrease in customer orders[49]. - The average trade receivables turnover days rose to 182 days, up 53 days from 129 days year-on-year, with total trade receivables decreasing by approximately 40.3% to RMB 114.8 million[49]. - The company reported inventory of RMB 38,840,000 as of June 30, 2019, compared to RMB 44,669,000 as of December 31, 2018[136]. - As of June 30, 2019, the company had trade receivables of RMB 378,603,000, with a provision for impairment of RMB 263,825,000[137]. Strategic Initiatives - The company aims to enhance its design and product development capabilities while strengthening brand building strategies to meet customer demands[13]. - The company is diversifying its business by entering the Langde Goose business and establishing online platforms and retail stores for consumer goods in China[13]. - The company is optimistic about long-term growth opportunities in the men's wear market despite challenges in the business environment[41]. - The company plans to continue investing in product design and R&D capabilities to capture fashion trends and consumer preferences[41]. - The company plans to expand its online platform and retail stores, which generated RMB 6,504,000 in revenue for the first half of 2019[119]. Expenses and Costs - Selling and distribution expenses increased by approximately RMB 3.1 million to RMB 29.0 million in the first half of 2019, accounting for about 19.0% of total revenue, a rise of 10.8 percentage points year-on-year[29]. - Administrative and other operating expenses increased by approximately RMB 7.5 million to RMB 83.4 million in the first half of 2019, representing about 53.8% of total revenue, an increase of 29.7 percentage points year-on-year[31]. - Financing costs rose by 25.8% from RMB 12.4 million in the first half of 2018 to approximately RMB 15.6 million in the first half of 2019, mainly due to rising average interest rates[32]. - The company incurred a provision for bad debts of RMB 29,808,000 for the first half of 2019, compared to RMB 889,000 in the same period of 2018[123]. Shareholder Information - The company reported no dividends declared or proposed during the period, consistent with the previous year[179]. - The issued and paid-up share capital as of June 30, 2019, was 480,900,000 shares, amounting to HKD 4,809,000[180]. - The company proposed a share split on August 28, 2019, to split each existing share with a par value of HKD 0.01 into four shares with a par value of HKD 0.0025, pending shareholder approval[194]. - As of June 30, 2019, Mr. Guo Jianxin holds 231,550,000 shares, representing 48.15% of the total issued shares[197]. - The company has not disclosed any rights granted to directors or their family members to purchase shares or debt securities during the reporting period[196].