Financial Performance - Total revenue for 2023 was HKD 19,999 million, an increase from HKD 19,418 million in 2022, representing a growth of 3%[8] - Gross profit for 2023 was HKD 5,251 million, down from HKD 5,483 million in 2022, resulting in a gross margin of 26.3% compared to 28.2% in the previous year[8] - Operating profit decreased to HKD 424 million in 2023 from HKD 807 million in 2022, leading to an operating margin of 2.1% compared to 4.2%[8] - EBITDA for 2023 was HKD 1,768 million, down from HKD 2,104 million in 2022, with an EBITDA margin of 8.8% compared to 10.8%[8] - Net profit fell by 64.1% to HKD 253 million, with a net profit margin of 1.3%, down 2.3 percentage points[32] Debt and Liquidity - The net debt to EBITDA ratio increased to 1.7 times in 2023 from 1.6 times in 2022, indicating a slight increase in leverage[8] - The current ratio improved to 1.3 in 2023 from 1.1 in 2022, reflecting better short-term liquidity[8] - The company’s net debt ratio decreased by 2.5 percentage points to 26.1%[32] - The group maintained a net debt ratio of 26.1% as of December 31, 2023, down from 28.6% the previous year[46] Inventory and Receivables - The average inventory turnover period increased to 54 days in 2023 from 50 days in 2022, indicating a slower inventory movement[8] - The average accounts receivable turnover period increased to 41 days in 2023 from 40 days in 2022, suggesting a slight delay in collections[9] E-commerce and Market Strategy - The company plans to focus on expanding its e-commerce channels, which accounted for 21% of revenue in 2023, up from 10% in 2022[8] - In 2023, the group's e-commerce channel revenue recorded a natural growth of 12.6%, accounting for 46% of total revenue[22] - The group plans to deepen market penetration in e-commerce channels and continue focusing on high-quality development in 2024[16] - The company is committed to enhancing its product offerings and technology development to maintain competitive advantage in the hygiene products market[8] Product Development and Innovation - The introduction of innovative products, such as the "Comfort V Series - Cloud Feel Pants," has successfully met consumer demand for high-end products[19] - The company launched several new high-end products in the North Asia market, including the 4D Deluxe series in Hong Kong and the 4D series in South Korea[36] - Research and development investments increased by 25%, focusing on innovative product lines in the hygiene sector[55] Sustainability and ESG - The group received an ESG rating of "A" from MSCI for three consecutive years, reflecting its commitment to sustainable development[17] - The group received an "A" rating from MSCI for three consecutive years, reflecting its leadership in ESG practices, particularly in governance and waste management[25] - The company aims to achieve carbon neutrality by 2025, aligning with global sustainability trends[53] - The company has developed a five-year sustainable development roadmap covering energy management, carbon emissions, and green supply chains[137] Corporate Governance - The board of directors has committed to maintaining high corporate governance standards, adhering to all applicable regulations[72] - The company has achieved compliance with all corporate governance codes as outlined in the annual report[72] - The board includes four independent non-executive directors, enhancing critical review and control over management processes[102] Shareholder Communication - The company has established a shareholder communication policy to ensure timely and balanced access to information for shareholders and investors[129] - The board will continue to engage in dialogue with shareholders and regularly review the effectiveness of the shareholder communication policy[130] - The company encourages shareholders to appoint representatives to attend meetings and vote if they cannot attend in person[132] Future Outlook - The company projects a revenue growth of 20% for the upcoming fiscal year, driven by new product launches and market expansion strategies[54] - Future outlook includes an expansion strategy targeting a 20% market share increase in the adult incontinence product segment over the next two years[67] Risk Management - The company has a robust credit risk management policy, ensuring sales are made only to customers with good credit records[147] - The company maintains a prudent liquidity risk management strategy to ensure sufficient cash and cash equivalents are available[147] - The company’s overall risk management plan focuses on minimizing potential adverse impacts on financial performance due to market unpredictability[148] Employee Development - A total of 161,323 training hours were provided to 10,051 employees, with a workforce of 11,465 as of December 31, 2023[41] - The company emphasizes the importance of continuous professional development for all directors[94]

Financial Performance - The group's revenue achieved a natural growth of 6.9% to HKD 19,999 million[5] - Gross profit decreased by 4.2% to HKD 5,251 million, with a gross profit margin of 26.3%, down 1.9 percentage points[5] - Net profit fell by 64.1% to HKD 253 million, with a net profit margin of 1.3%, down 2.3 percentage points[10] - Basic earnings per share were HKD 0.21, down from HKD 0.587 in the previous year[11] - Total revenue for the year ended December 31, 2023, was HKD 19,999,100,319, an increase of 3.0% from HKD 19,417,559,563 in 2022[37] - Operating profit decreased by 47.4% to HKD 424 million, with an operating profit margin of 2.1%[7] - Operating profit fell significantly to HKD 424,011,450, a decline of 47.4% compared to HKD 806,516,544 in 2022[37] - Net profit attributable to equity holders was HKD 253,151,520, down 64.1% from HKD 706,039,502 in the prior year[37] - Basic and diluted earnings per share decreased to HKD 0.210 from HKD 0.587, representing a decline of 64.3%[37] Revenue Breakdown - E-commerce channel revenue grew naturally by 12.6%, accounting for 46% of total revenue[5] - The tissue business generated revenue of HKD 16,655 million, a year-on-year increase of 3.4%, with a natural growth of 7.6% excluding currency effects[13] - Personal care business revenue grew by 0.9% to HKD 3,344 million, with a natural growth rate impact of 3.7%, accounting for 17% of total group revenue[17] - Revenue from the Mainland China segment reached HKD 15,685,228,868, up from HKD 15,154,602,695, reflecting a growth of 3.5%[55] - The personal care products segment generated revenue of HKD 3,344,011,832, compared to HKD 3,314,390,014 in the previous year, indicating a slight increase of 0.9%[61] Cost and Expenses - The total cost of sales, selling, and administrative expenses for the year was HKD 19,676,524,300, an increase from HKD 18,683,339,551 in 2022, representing a rise of 5.3%[67] - Capital expenditures for non-current assets amounted to HKD 1,027,382,250, compared to HKD 1,251,247,213 in the previous year, reflecting a decrease of 17.9%[61] - Interest expenses increased significantly to HKD 149,331,326 in 2023 from HKD 87,836,706 in 2022, reflecting a rise of approximately 69.9%[69] - Net financial costs rose to HKD 136,399,340 in 2023, compared to HKD 59,600,287 in 2022, indicating an increase of about 128.5%[69] Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 1,375,581,365 from HKD 606,947,407, an increase of 126.3%[38] - Operating cash flow for the year ended December 31, 2023, was HKD 2,272,324,627, a decrease of 5.3% from HKD 2,399,371,922 in 2022[41] - Net cash generated from operating activities decreased to HKD 1,944,402,474 from HKD 2,081,190,349, reflecting a decline of 6.6%[41] - Cash flow from financing activities showed a net outflow of HKD 125,507,119, compared to a net outflow of HKD 1,339,494,139 in 2022, indicating a significant reduction in cash outflow[41] Debt and Liabilities - The net debt ratio decreased by 2.5 percentage points to 26.1%[9] - Total liabilities decreased to HKD 10,617,044,930 from HKD 12,288,358,417, a decline of 13.6%[39] - Borrowings decreased to HKD 4,074,955,423 from HKD 4,711,269,760, reflecting a reduction of 13.5%[41] - The total borrowings increased from HKD 3,888,244,226 in 2022 to HKD 4,256,190,597 in 2023, an increase of approximately 9%[90] Operational Efficiency and Strategy - The company implemented flexible pricing strategies and improved operational efficiency to mitigate inflationary pressures[4] - The company continues to focus on innovation and brand building, enhancing e-commerce channels to expand market share[4] - The group maintained a strong financial position with cash and bank balances of HKD 1,375,581,365 as of December 31, 2023, compared to HKD 606,947,407 in 2022[100] Employee and Training - The group provided 161,316 hours of training to 10,030 employees, emphasizing its commitment to employee development[25] - The group aims for zero accidents in production, with 22 loss time incidents reported in 2023, a decrease from 28 in 2022[28] Corporate Governance - The board of directors includes a mix of executive and non-executive members, ensuring diverse oversight and governance[123] - The risk management committee consists of five members, including two executive directors and three non-executive directors, with Jan Christer JOHANSSON serving as the chairman[114] - The executive committee is responsible for formulating the annual budget and major business plans, with a focus on restructuring and significant asset handling[115] Future Outlook - The group maintains confidence in growth potential despite economic uncertainties, focusing on high-end and high-margin product categories[32] - The group will continue to invest in e-commerce and new channels to strengthen its market position in mainland China[35]

Revenue Performance - Total revenue for Q3 2023 increased by 8.4% to HKD 4,741 million, with HKD 3,915 million from the tissue segment and HKD 826 million from personal care[2] - Total revenue for the nine months ended September 30, 2023, grew by 5.4% to HKD 14,810 million, with HKD 12,276 million from the tissue segment and HKD 2,534 million from personal care[3] Profitability Metrics - Gross profit for Q3 2023 rose by 8.7% to HKD 1,294 million, with a gross margin increase of 0.1 percentage points to 27.3%[2] - Gross profit for the nine months decreased by 11.0% to HKD 3,821 million, with a corresponding gross margin decline of 4.7 percentage points to 25.8%[3] - Operating profit surged by 71.6% to HKD 133 million, with an operating margin increase of 1.0 percentage points to 2.8%[2] - Operating profit for the nine months fell by 67.6% to HKD 270 million, with an operating margin contraction of 4.1 percentage points to 1.8%[3] - EBITDA for Q3 2023 improved by 16.4% to HKD 465 million, with an EBITDA margin increase of 0.7 percentage points to 9.8%[2] Exchange Loss - Total exchange loss for Q3 2023 was HKD 10.7 million, significantly improved from a loss of HKD 54.1 million in Q3 2022[2] Strategic Focus - The company continues to focus on innovation and brand building to sustain competitive advantages and drive profitable growth in key markets[2] Shareholding Information - Essity Aktiebolag (publ) holds approximately 51.59% of the company's issued share capital[3]

Financial Performance - Total revenue for the first half of 2023 reached HKD 10,070 million, representing a natural growth of 10.1% and a 4.0% increase in HKD terms [28]. - Basic earnings per share for the first half of 2023 were HKD 0.10, down from HKD 0.53 in the same period last year [10]. - The company reported a net profit of HKD 120,646,352 for the first half of 2023, compared to HKD 637,715,230 for the same period in 2022, indicating a decrease of about 81.1% [131]. - The company reported a net loss attributable to shareholders of HKD 318,484,454 compared to a loss of HKD 19,159,364 in the previous year, indicating a significant increase in losses [99]. - The company incurred a total comprehensive loss of HKD 318,484,454 for the six months ended June 30, 2023, compared to a total comprehensive loss of HKD 19,159,364 for the same period in 2022, highlighting a worsening financial position [102]. Profitability Metrics - Gross profit margin decreased to 25.1% from 32.0% in the same period last year, while net profit margin fell to 1.2% from 6.6% [10]. - Operating profit fell by 81.8% to HKD 137 million, with an operating margin decrease of 6.4 percentage points to 1.4% [33]. - Gross profit decreased by 18.5% to HKD 2,527 million, with a gross margin decline of 6.9 percentage points to 25.1% [32]. - The segment profit for the personal care products division reported a loss of HKD 23,837,267, compared to a profit of HKD 33,015,264 in the previous year, indicating a significant decline [130]. Revenue Breakdown - The tissue segment accounted for 83% of total revenue, while personal care contributed 17% [28]. - Tissue business revenue increased by 5.0% to HKD 8,361 million, with a growth of 11.5% after excluding currency effects, accounting for 83% of total revenue [36]. - Personal care business revenue decreased by 0.5% to HKD 1,708 million, but showed a growth of 3.7% at constant exchange rates, representing 17% of total revenue [38]. - Revenue from Mainland China reached HKD 7,911,383,829, up from HKD 7,526,820,217, indicating a growth of about 5.12% [127]. - Revenue from Hong Kong was HKD 612,881,559, compared to HKD 583,343,849 in the previous year, reflecting an increase of approximately 5.06% [127]. - Revenue from overseas markets decreased slightly to HKD 1,545,345,422 from HKD 1,570,211,394, a decline of about 1.58% [127]. Debt and Financial Leverage - The company’s debt ratio increased to 50.5% from 31.9% year-on-year, indicating a rise in financial leverage [10]. - The interest expense increased by 119.9% to HKD 78 million due to rising interest rates and increased term loans [33]. - Total short-term and long-term loans amounted to HKD 5,551,579,123 as of June 30, 2023, compared to HKD 3,888,244,226 on December 31, 2022 [54]. - The net debt ratio was 43.1% as of June 30, 2023, up from 28.6% on December 31, 2022 [54]. - The average effective interest rate for HKD borrowings was 4.69% as of June 30, 2023, compared to 2.03% as of December 31, 2022, indicating a significant rise in borrowing costs [151]. Cash Flow and Liquidity - Cash flow from operating activities showed a net outflow of HKD 696,745,207 for the six months ended June 30, 2023, compared to a net inflow of HKD 1,959,993,971 in the previous year, reflecting a substantial decline in operational cash generation [105]. - The company’s cash and cash equivalents increased by HKD 261,255,618 during the six months ended June 30, 2023, compared to an increase of HKD 40,167,970 in the prior year, suggesting improved liquidity management despite operational challenges [105]. - As of June 30, 2023, the company had cash and bank balances of HKD 838,118,380, an increase from HKD 606,947,407 on December 31, 2022 [54]. Investment and Innovation - The company plans to continue investing in innovation, brand building, and operational capabilities to drive sustainable profit growth in key markets [27]. - The company aims to use 100% certified wood pulp and is developing biodegradable materials for packaging [49]. - The company plans to continue investing in high-end and high-margin product categories to enhance its product portfolio [51]. - The company launched new high-end products in the incontinence care sector, enhancing market penetration and brand competitiveness [41]. - The Southeast Asia regional headquarters commenced operations, featuring the first overseas innovation and R&D center to better meet local consumer demands [44]. Employee Development - The company provided 95,417.18 hours of training to 11,066 employees during the reporting period, emphasizing its commitment to employee development [45]. Corporate Governance - The company has maintained a strong commitment to corporate governance and compliance with all relevant codes [61]. - The Audit Committee consists of four members, including three independent non-executive directors [81]. - The Remuneration Committee is responsible for determining the remuneration policy and specific compensation for senior management [82]. - The Risk Management Committee assists the board in determining the group's risk levels and reviewing identified major risks [85]. - The Strategy Development Committee is tasked with advising on the group's long-term strategy and overseeing the implementation of strategic plans [87].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部 分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Vinda International Holdings Limited 維達國際控股有限公司 （於開曼群島註冊成立的有限公司） 3331 （股份代號： ） 截至二零二三年六月三十日止六個月之 未經審核中期業績 摘要 • 儘管市場波動且面臨不確定性，集團收益保持穩健增長： • 10.1% 1 10,070 收益實現 自然增長 至 百萬港元 • 通過價格及銷量的提升，以及產品組合的優異表現，推動中國內地業務 的強勁自然增長 • 23.6% 46% 電商渠道自然增長 ，佔集團總收益 • 高端品類增長逐季提速 ...

Revenue Performance - Total revenue for the first quarter of 2023 increased by 15.5% at constant exchange rates, amounting to HKD 4,969 million, with HKD 4,071 million from the tissue segment and HKD 898 million from personal care[2] Profitability Metrics - Gross profit decreased by 17.1% to HKD 1,254 million, with a gross profit margin narrowing by 7.9 percentage points to 25.2%[2] - Operating profit fell by 85.4% to HKD 65 million, with the operating profit margin contracting by 8.5 percentage points to 1.3%[2] - EBITDA decreased by 47.2% to HKD 412 million, with an EBITDA margin of 8.3%, down by 8.8 percentage points[2] - Net profit decreased by 88.4% to HKD 40 million, with a net profit margin declining by 6.7 percentage points to 0.8%[2] Foreign Exchange Impact - The total foreign exchange loss amounted to HKD 7.7 million, compared to a gain of HKD 11.8 million in the same period last year[2]

Financial Performance - Revenue for 2022 was HKD 19,418 million, an increase from HKD 18,676 million in 2021, representing a growth of 4%[10] - Gross profit decreased to HKD 5,483 million in 2022 from HKD 6,596 million in 2021, resulting in a gross margin of 28.2%, down from 35.3%[10] - Operating profit fell to HKD 807 million in 2022, compared to HKD 2,043 million in 2021, leading to an operating margin of 4.2%[10] - EBITDA for 2022 was HKD 2,104 million, down from HKD 3,292 million in 2021, with an EBITDA margin of 10.8%[10] - Basic earnings per share decreased to HKD 0.587 in 2022 from HKD 1.365 in 2021[10] - Net profit decreased by 56.9% to HKD 706 million, with a net profit margin declining by 5.2 percentage points to 3.6%[49] Liquidity and Debt - The company maintained a current ratio of 1.1 in 2022, down from 1.3 in 2021, indicating a tighter liquidity position[10] - Net debt to EBITDA ratio increased to 1.6 in 2022 from 1.2 in 2021, reflecting higher leverage[10] - The net debt ratio as of December 31, 2022, is 28.6%, down from 30.5% the previous year[73] - The group has bank and cash balances of HKD 606.95 million, a decrease from HKD 1,025.33 million in the previous year[73] Revenue Growth Strategies - The company is focusing on optimizing its product mix and enhancing e-commerce channel integration to drive sales growth[20] - Strategies implemented include price adjustments, cost control, and supply chain upgrades to improve operational efficiency[20] - Vinda aims to solidify its market share in the hygiene products sector while maintaining its leading industry position[20] - The e-commerce segment contributed significantly to the group's revenue growth, achieving a natural growth rate of 16.7% and accounting for 44% of total revenue[35] - The group launched innovative personal care products, leading to a significant increase in sales and expanding market share in the high-end sanitary napkin segment to fourth place in mainland China[32] Market Expansion and Product Development - The establishment of a new headquarters in Malaysia aims to enhance digital transformation and expand production capacity in Southeast Asia[22] - The group is focusing on high-end strategies and product innovation to capture more market demand and improve profitability[24] - The group has opened over 300 Tena experience centers in mainland China to reach more target consumers in the incontinence care segment[32] - The company plans to continue investing in personal care business to increase sales and market share[39] - The company is considering strategic acquisitions to enhance its product portfolio, with potential targets identified in the hygiene sector[89] Sustainability and ESG Initiatives - The group received multiple ESG awards, highlighting its commitment to sustainable development and environmental responsibility[23] - The group aims to strengthen its market presence in the incontinence care business, particularly in regions with aging populations[32] - The group's energy utilization efficiency is 0.20 tons of standard coal per HKD 10,000 in sales, with a paper wastewater recycling rate of over 98%[67] - Total carbon dioxide emissions (Scope 1 and Scope 2) amount to 1.22 million tons, with an emission intensity of 0.63 tons of CO2 per HKD 10,000 in sales[67] Corporate Governance - The board has emphasized the importance of maintaining high corporate governance standards, adhering to all applicable regulations[110] - The company held five board meetings this year to ensure effective oversight and strategic decision-making[113] - The board of directors is led by Chairman Li Chaowang and CEO Li Jielin, ensuring independence and accountability in their roles[116] - The company has a total of four independent non-executive directors, with at least one-third of the board being independent[119] - The board retains decision-making authority over all significant matters, including policies, strategies, budgets, and major transactions[126] Employee Development and Diversity - The company provided 163,192 hours of training to 10,856 employees during the year, emphasizing employee development and recognition as a preferred employer[64] - The number of employees as of December 31, 2022, was 12,112, reflecting the company's commitment to workforce growth[65] - The company has established a diversity policy, achieving measurable goals such as having at least one female director and at least one-third of the board members being independent non-executive directors[142] Future Outlook - Future outlook indicates a projected revenue growth of 10% for the next fiscal year, driven by new product launches and market expansion strategies[86] - The company is investing in R&D for new technologies, with a budget allocation of $50 million for the upcoming year[87] - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[106] - The company has implemented cost-saving measures that are projected to reduce operational expenses by 5% over the next year[91]

Revenue Performance - Total revenue for Q3 2022 increased by 6.5% to HKD 4,374 million, with HKD 3,599 million from the tissue segment and HKD 775 million from personal care[2] - For the nine months ended September 30, 2022, total revenue grew by 6.6% to HKD 14,055 million, with HKD 11,562 million from the tissue segment and HKD 2,492 million from personal care[3] - Total revenue for Q3 2022 increased by 6.5% to HKD 4,374 million, with HKD 3,599 million from the tissue segment and HKD 775 million from personal care[6] - Total revenue for the nine months ended September 30, 2022, increased by 6.6% to HKD 14,055 million, with HKD 11,562 million from the tissue segment and HKD 2,492 million from personal care[7] Profitability Metrics - Gross profit decreased by 17.1% to HKD 1,191 million, with a gross margin contraction of 7.8 percentage points to 27.2%[2] - Gross profit for the nine months decreased by 11.2% to HKD 4,291 million, with a gross margin decline of 6.1 percentage points to 30.5%[3] - Operating profit fell by 78.2% to HKD 77 million, resulting in an operating margin decrease of 6.8 percentage points to 1.8%[2] - Operating profit for the nine months decreased by 46.7% to HKD 834 million, with an operating margin contraction of 6.0 percentage points to 5.9%[7] - EBITDA for the nine months decreased by 27.1% to HKD 1,817 million, with an EBITDA margin reduction of 6.0 percentage points to 12.9%[3] - EBITDA decreased by 40.1% to HKD 399 million, with the corresponding EBITDA margin dropping by 7.1 percentage points to 9.1%[6] Exchange Losses - Total exchange loss amounted to HKD 76.5 million for the nine months, compared to a loss of HKD 0.9 million in the same period last year[3] - Total exchange loss amounted to HKD 54.1 million, compared to a loss of HKD 7.5 million in Q3 2021, with HKD 51.1 million from operating activities[6] - Total exchange loss for the nine months was HKD 76.5 million, compared to a loss of HKD 0.9 million in the same period of 2021[7] Strategic Focus - The company plans to focus on brand building and innovation investment to enhance long-term competitiveness[2] - Future strategies include price adjustments, high-end strategies, and cost control to alleviate cost pressures and gradually improve profit margins[2] - The company has experienced unprecedented production cost increases and operational disruptions due to pandemic controls and exchange rate fluctuations[2]

Financial Performance - Revenue growth rate for the first half of 2022 was 6.6%, compared to 19.0% in 2021[12] - Gross profit margin decreased to 32.0% from 37.4% year-on-year[12] - Net profit margin declined to 6.6% from 10.6% in the previous year[12] - Basic earnings per share were HKD 0.53, down from HKD 0.806 in 2021[12] - Total revenue for the first half of 2022 increased by 6.6% to HKD 9,680 million, with a 6.9% growth at constant exchange rates[27] - Gross profit decreased by 8.7% to HKD 3,100 million, with a gross margin of 32.0%[27] - EBITDA dropped by 22.4% to HKD 1,418 million, with an EBITDA margin narrowing by 5.5 percentage points to 14.6%[27] - The net profit margin decreased by 4.0 percentage points to 6.6%, with net profit falling to HKD 638 million[28] - The net profit attributable to equity holders was HKD 637,715,230, compared to HKD 967,192,585 in the previous year, a decrease of around 34.1%[74] - The earnings per share (EPS) for the period was HKD 0.530, down from HKD 0.806, reflecting a decrease of about 34.1%[74] Market Position and Strategy - The company maintained a strong market share despite challenges in the operating environment[24] - New high-end products were launched in mainland China and Hong Kong, receiving positive market feedback[24] - The company implemented price adjustments and cost optimization strategies to mitigate rising material and logistics costs[24] - The group plans to continue investing in brand building, product innovation, and marketing capabilities to strengthen market position[38] - The group sees significant growth opportunities in the personal hygiene market due to rising living standards and increased awareness of personal hygiene[37] - The company launched the POWER-XTM technology product, a washable kitchen paper, which received positive market feedback[28] - The company established over 120 Vinda Health experience centers in 19 key cities in mainland China to enhance customer engagement[29] Financial Health - Current ratio decreased to 1.12 from 1.26 in the previous year[12] - Debt ratio improved to 31.9% from 42.7% year-on-year[12] - The net debt ratio as of June 30, 2022, was 23.9%, down from 30.5% as of December 31, 2021[40] - The group had cash and bank balances of HKD 1,009,290,494 as of June 30, 2022, compared to HKD 1,025,327,689 as of December 31, 2021[40] - The company reduced borrowing costs, with interest expenses decreasing by 42.3% to HKD 35 million[28] - The total liabilities decreased to HKD 10,400,598,384 from HKD 11,162,309,407, representing a decline of approximately 6.8%[72] - The company's cash and cash equivalents stood at HKD 1,009,290,494, slightly down from HKD 1,025,327,689, a decrease of about 1.8%[71] Employee Engagement and Safety - The group provided a total of 108,887 hours of training, with 10,288 participants during the reporting period[34] - As of June 30, 2022, the group employed 11,790 employees, with 99% having received training on the code of conduct[34] - The group aims for a "zero accident" goal in occupational health and safety, with 11 reported lost time incidents in the first half of 2022, none resulting in serious injuries[35] Shareholder Information - The board declared an interim dividend of HKD 0.10 per share, totaling approximately HKD 120,327,537 based on 1,203,275,373 shares outstanding as of June 30, 2022[42] - As of June 30, 2022, the total number of shares issued by the company was 1,203,275,373[48] - Li Chaowang holds a personal interest of 300,000 shares and a corporate interest of 262,841,581 shares, totaling 263,141,581 shares, representing 21.87% of the total equity[47] - Major shareholder Essity Group Holding BV holds 620,737,112 shares, representing approximately 51.59% of the issued share capital as of June 30, 2022[57] - Another significant shareholder, Fu An International Limited, owns 261,341,581 shares, accounting for approximately 21.72% of the issued share capital[57] Committees and Governance - The Audit Committee, consisting of four members, is responsible for reviewing and monitoring financial reporting procedures[60] - The Remuneration Committee is tasked with formulating the group's remuneration policy and making recommendations to the board regarding executive compensation[61] - The Nomination Committee is responsible for reviewing the board's structure and recommending suitable candidates for directorship[62] - The Risk Management Committee assists the board in determining the group's risk levels and reviewing identified major risks and mitigation measures[63] - The Executive Committee is responsible for formulating the company's annual budget and significant business plans[64] Cash Flow and Investments - The net cash flow from operating activities for the six months ended June 30, 2022, was HKD 1,959,993,971, an increase from HKD 1,013,518,611 in the previous year[78] - The company reported a net cash outflow from investing activities of HKD 562,092,534 for the six months ended June 30, 2022, compared to HKD 822,037,070 in the same period of 2021[78] - The financing activities resulted in a net cash outflow of HKD 1,357,733,467 for the six months ended June 30, 2022, compared to HKD 173,354,290 in the previous year[78] Related Party Transactions - The company engaged in significant transactions with various subsidiaries of Essity, indicating a strong intercompany relationship and reliance on related party transactions for operational activities[127] - Sales to related parties amounted to HKD 109,429,708 for the six months ended June 30, 2022, compared to HKD 108,067,844 in the same period of 2021, reflecting a slight increase of 1.26%[128] - Purchases from related parties totaled HKD 94,318,338 for the six months ended June 30, 2022, down from HKD 99,596,668 in the previous year, indicating a decrease of 5.67%[129]

Financial Performance - Total revenue increased by 2.2% to HKD 4,566 million, with HKD 3,671 million from the tissue segment and HKD 895 million from personal care[2] - Gross profit decreased by 12.9% to HKD 1,512 million, with a gross margin decline of 5.8 percentage points to 33.1%[2] - Operating profit fell by 36.5% to HKD 446 million, with an operating margin decrease of 5.9 percentage points to 9.8%[2] - EBITDA decreased by 22.7% to HKD 780 million, with an EBITDA margin of 17.1%[2] - Net profit decreased by 37.8% to HKD 344 million, with a net profit margin decline of 4.9 percentage points to 7.5%[2] - Exchange gains totaled HKD 11.8 million, up from HKD 4.8 million in the same quarter last year[2] Strategic Focus - The company aims to achieve sustainable profitable growth by focusing on brand building, product structure optimization, and efficient cost and financial management[2] - The company plans to actively respond to rising costs to further consolidate its market leadership[2] Operating Environment - The operating environment remains challenging due to ongoing COVID-19 uncertainties in China and Southeast Asia[2] Financial Reporting - The financial data presented is unaudited and may differ from the audited figures to be reported by the parent company, Essity[3] - Essity Aktiebolag (publ) holds approximately 51.59% of the issued share capital of the company[8] - Essity plans to publish its unaudited financial results for Q1 2022 on or around April 22, 2022[8] - The financial data for the three months ending March 31, 2022, has not been reviewed or audited by independent auditors, and may differ from the final audited figures[8]