Environmental Management and Sustainability - In 2022, the Group's pollutant gas emissions were reported, with waste generated per HKD one million revenue being a key metric[8]. - The Group aims to reduce total waste emissions by 10% per unit of output value within the next three years[9]. - The Group has collaborated with a UK university since 2017 to explore the feasibility of transforming sawdust waste into usable materials, achieving partial success in trials[9]. - The Group has implemented an environmental management system in compliance with ISO14001, focusing on recycling hazardous and non-hazardous wastes[9]. - The Group actively promotes energy-saving measures in its industrial production processes, continuously upgrading to more efficient equipment[11]. - The Group is committed to monitoring and reducing greenhouse gas emissions in line with international standards and local guidelines[15]. - The Group has adopted eco-friendly practices in office design, maximizing natural light and reducing waste during renovations[9]. - The Group's Board is responsible for overseeing the strategies and performance of environmental, social, and governance (ESG) initiatives, which are essential for long-term corporate success[66]. - The establishment of an ESG Committee has been made to formulate development strategies and monitor related risks, ensuring compliance with regulatory requirements[68]. - The Group's commitment to sustainable development includes efforts towards environmental protection and achieving ecological balance[64]. Employee Welfare and Management - The Group strictly complies with local labor standards and has implemented a Personnel Management System to ensure a healthy working environment for employees[16]. - The Group offers various welfare incentives, including pension plans and medical insurance, to attract and retain talent[19]. - Total number of staff decreased from 1,597 in 2021 to 1,565 in 2022, a reduction of approximately 2%[22]. - Employee turnover rate increased from 27.0% in 2021 to 30.3% in 2022 for Mainland China, indicating a rise in staff attrition[22]. - The Group maintained a very low rate of work-related injuries, with lost days due to work-related injuries increasing to 417.5 days in 2022 from 332.5 days in 2021[24]. - The Group's commitment to employee health included regular health check-ups and various medical insurance schemes[24]. - Hengdeli aims to create a harmonious corporate culture that promotes mutual benefits for employees and the enterprise, focusing on career development and working conditions[64]. Financial Performance and Reporting - The Company's 2022 financial report provides a fair view of its financial position as of December 31, 2022, despite significant impacts from the pandemic[31]. - There was a significant increase in net cash flow from operating activities during the reporting period, indicating strong growth in the Company's internal operations[31]. - The company reported a loss of RMB 88,139,000 for the year 2022, compared to a profit of RMB 20,210,000 in 2021, indicating a significant decline in performance[94]. - Total comprehensive income for the year was RMB (36,037,000), an improvement from RMB (118,709,000) in the previous year, suggesting a reduction in losses[94]. - Non-current liabilities decreased from RMB 39,487,000 in 2021 to RMB 31,464,000 in 2022, reflecting a reduction in long-term financial obligations[98]. - The company's net assets stood at RMB 3,219,834,000 in 2022, down from RMB 3,272,463,000 in 2021, indicating a slight decrease in overall equity[98]. - The company experienced a foreign exchange loss of RMB 195,425,000 on equity investments at fair value through other comprehensive income[94]. - The company reported a decrease in deposits with banks of RMB 25,821,000 in 2022, contrasting with an increase of RMB 53,958,000 in 2021[103]. - The company reported a loss for the year of RMB 80,022,000, which is a decrease from the previous year's loss of RMB 88,139,000, reflecting a 9% improvement[101]. Corporate Governance and Compliance - The Group has established a nomination committee to oversee the appointment of Directors and succession planning[5]. - The audit committee is responsible for reviewing accounting principles and practices, ensuring compliance with financial reporting standards[29]. - The Company is committed to compliance with laws and regulations regarding bribery, fraud, and money laundering, with no significant violations reported during the year[41]. - The Group maintained effective communication with investors and shareholders, primarily through telephone conferences due to the COVID-19 pandemic, enhancing their understanding of the Group's strategies and operations[59]. - The Group's communication policy with shareholders was deemed effective, facilitating timely and in-depth understanding of the Group's performance and strategies[59]. - The Group's policies for investments in debt and equity securities involve recognition on the date of commitment to purchase or sell, with initial measurement at fair value plus transaction costs[170]. - The Group's financial statements are prepared on a historical cost basis, except for certain assets stated at fair value as per accounting policies[156]. - The Group's financial reporting is in compliance with HKFRSs, ensuring consistency in accounting policies across subsidiaries and associates[171]. Risk Management and Credit Losses - The Group recognizes expected credit losses (ECLs) for financial assets measured at amortized cost, including cash and cash equivalents, and trade and other receivables[191]. - ECLs are measured as the present value of expected cash shortfalls, which is the difference between cash flows due to the Group and expected cash flows[192]. - The Group assesses whether a financial asset is credit-impaired at each reporting date, indicating detrimental impacts on estimated future cash flows[194]. - The Group's loss allowance for debt securities measured at FVOCI is recognized in other comprehensive income and accumulated in the fair value reserve[194]. - The Group's credit losses are assessed using reasonable and supportable information available without undue cost or effort, including past events and forecasts of future economic conditions[192]. Board Diversity and Composition - The Group has adopted policies on board diversity, considering various factors including gender, age, and professional experience[45]. - The nomination committee will discuss and develop measurable objectives for board diversity from time to time[45]. - The nomination committee is responsible for identifying suitable and competent candidates for Board members[45]. - The Board appointed Ms. Qian Weiqing as an independent non-executive Director on 21 March 2023, thereby increasing the diversity of the Board[45].

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告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。 HENGDELI HOLDINGS LIMITED 亨 得 利 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：3389） （1） 截至二零二二年十二月三十一日止年度之全年業績公告； （2） 委任獨立非執行董事； 及 （3） 建議修訂組織章程大綱及細則 財務概要 截至十二月三十一日止年度 二零二二年 二零二一年 同比變動 （經重列） 人民幣千元 人民幣千元 % 持續經營業務： 收入 1,039,286 877,994 18.4 毛利 123,593 137,915 -10.4 來自持續經營業務的年度（虧損）╱溢利 (34,670) 49,286 -170.3 ...

Revenue Performance - For the six months ended 30 June 2022, the Group recorded revenue of RMB 559,018,000, representing a year-on-year increase of 24.0% compared to RMB 450,749,000 in the same period of 2021[3]. - The high-end consuming accessories business generated revenue of RMB 279,769,000, a year-on-year increase of 32.7% from RMB 210,787,000 in the first half of 2021[5]. - International commodity trading revenue was RMB 248,396,000, reflecting a year-on-year increase of 41.6% from RMB 175,444,000 in the same period last year[7]. - For the six months ended June 30, 2022, the Group recorded revenue of RMB 559,018,000, a year-on-year increase of 24.0% compared to RMB 450,749,000 for the same period in 2021[21][23]. - High-end consuming accessories revenue was RMB 279,769,000, representing a year-on-year increase of 32.7% from RMB 210,787,000[21][23]. - Commodity trading revenue increased by 41.6% to RMB 248,396,000, up from RMB 175,444,000 in the previous year[21][23]. - Revenue from shop design and decoration services increased to RMB 102,194,000 in H1 2022, up 29.0% from RMB 79,288,000 in H1 2021[157]. - Revenue from external customers in Mainland China was RMB 528,413,000 in H1 2022, compared to RMB 387,560,000 in H1 2021, an increase of 36.3%[157]. Financial Losses - The Group recorded a loss of RMB 27,912,000 for the period, compared to a loss of RMB 21,885,000 in the first half of 2021, marking an increase in loss of 27.5%[3]. - Loss attributable to shareholders amounted to RMB 22,929,000, up 35.1% from RMB 16,975,000 in the same period of 2021[3]. - Loss from operations was RMB 75,090,000, compared to a loss of RMB 20,656,000 in the previous year, indicating a significant decline in operational performance[111]. - The company reported a loss for the period of RMB 22,925,000, which reflects ongoing challenges in the market[136]. - Basic loss per share was RMB 22,929,000 for the six months ended June 30, 2022, compared to RMB 16,975,000 in 2021, representing an increase in loss attributable to equity shareholders[187]. Profitability and Margins - The gross profit margin decreased to 5.4%, down 310 basis points from 8.5% in the previous year[3]. - The Group's gross profit for the period was approximately RMB 30,296,000, a decrease of 21.2% from RMB 38,466,000 in the prior year, with a gross profit margin of 5.4%[28][29]. - Total gross profit for reportable segments decreased to RMB 30,296,000 in H1 2022 from RMB 38,466,000 in H1 2021, reflecting a decline of approximately 21%[171]. Cash and Liquidity - The Group's cash and cash equivalents amounted to RMB 1,047,027,000, an increase from RMB 934,813,000 at the end of 2021[31][33]. - Cash and cash equivalents increased to RMB 1,021,392,000, up from RMB 661,017,000 at the end of 2021, reflecting improved liquidity[119]. - The net cash generated from operating activities was RMB 54,533,000, a significant improvement from a net cash used of RMB 14,663,000 in the prior year[141]. - The company experienced a net cash inflow from investing activities of RMB 266,379,000, compared to RMB 130,865,000 in the same period of 2021[143]. Business Strategy and Development - The Group plans to continue expanding its international shipping business and adapt to market demands to enhance service standards in both Mainland China and international markets[12]. - The Group aims to diversify its business by including high-end consuming accessories in other lifestyle products such as jewelry, cosmetics, and mobile phones[14]. - The Group's strategy includes adjusting its business model and exploring new development directions in response to market trends[12]. - The Group plans to adapt to market changes and strengthen industrial management along with technical R&D in the second half of the year[44]. - The Group intends to expand its international shipping business closely related to international trade, striving to become a stronger participant in the international shipping supply chain[62][64]. Shareholder Information - As of June 30, 2022, the issued share capital of the Company was 4,404,018,959 shares as of June 30, 2022, compared to 4,464,806,959 shares as of December 31, 2021[40]. - Mr. Zhang Yuping holds 1,597,556,501 shares, representing 36.27% of the issued share capital of the Company[70]. - The Swatch Group (Hong Kong) Limited held 437,800,000 shares, accounting for 9.94% of the issued share capital[1]. - The company did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[2]. Market Conditions and Economic Outlook - The Chinese economy is expected to continue recovering within a reasonable range despite facing greater downward pressure and uncertainties due to political unrest and pandemic fluctuations[58][60]. - The Group's future outlook remains cautious due to the ongoing global economic uncertainties and the fluctuating pandemic situation in Mainland China[58][60]. - The Group aims to leverage the stable economic development environment in Mainland China to pursue steady growth and explore new development directions in the second half of the year[59][61]. Corporate Governance and Compliance - The company has maintained compliance with the Corporate Governance Code during the review period, ensuring transparency and safeguarding shareholder interests[95]. - The audit committee has reviewed the effectiveness of the internal control systems, confirming they are effective and adequate[97]. - The company adopted a code for securities transactions by directors, ensuring compliance with the required standards[99]. Employee and Operational Metrics - As of June 30, 2022, the Group employed 1,618 staff, an increase from 1,497 in the previous year, with total employee costs amounting to RMB 102.8 million, up from RMB 90.1 million[53]. - The Group's international shipping business achieved rapid growth, focusing on global maritime transportation of dry bulk cargo, contributing positively to the Group's development[51].

Financial Performance - For the year ended December 31, 2021, the Group recorded revenue of RMB992,962,000, a year-on-year decrease of 18.6% from RMB1,219,856,000 in 2020[6]. - The high-end consuming accessories business generated revenue of RMB550,933,000, representing a year-on-year increase of 28.7% compared to RMB428,048,000 in 2020[6]. - International commodity trading revenue surged to RMB327,061,000, marking a year-on-year increase of 185.3% from RMB114,641,000 in 2020[6]. - Watch retail and trading sales decreased to RMB114,968,000, reflecting a year-on-year decline of 83.0% from RMB677,167,000 in 2020[6]. - The Group achieved a net profit of RMB20,210,000, a significant recovery from a loss of RMB386,524,000 in 2020[6]. - The Group's gross profit amounted to approximately RMB113,867,000, representing a year-on-year increase of 176.8%[37]. - Gross profit margin was approximately 11.5%, representing a year-on-year increase of 24 percentage points[37]. - Profit attributable to equity shareholders amounted to RMB26,282,000, representing a year-on-year increase of 106.9%[37]. - The Group's financial report for 2021 reflects a fair view of the company's financial position as of December 31, 2021[149]. Business Strategy and Focus - The Group's business focus during the year was on high-end consumer accessories manufacturing and international commodity trading[44]. - The Group will focus on manufacturing high-end accessories for renowned watches and deepen cooperation with brands and international counterparts[22]. - The Group aims to expand its business into high-end lifestyle products such as jewellery, cosmetics, and mobile phones, as well as enhance commercial space beautification services[22]. - The Group's strategy includes exploring new profit models and achieving breakthroughs in corporate development[22]. - The Group plans to adapt to market changes by strengthening industrial management and prioritizing quality and innovation for growth[22]. - The Group aims to establish a solid foundation for future growth through prudent commodity trading activities in 2022[23]. Market Conditions and Risks - The ongoing COVID-19 pandemic continues to create uncertainty in the global economy, increasing downward pressure on China's economy[9]. - The fundamentals for long-term economic improvement in Mainland China remain unchanged, with a trend for medium-to-high economic growth expected to continue[9]. - The Group's operations are subject to various risks, including strategy risk, commodity risk, and operation risk, which could impact financial performance and business direction[26]. - The reliance on brand suppliers poses a commodity risk, and the Group maintains good relationships with multiple suppliers to mitigate this risk[26]. - The Group will closely monitor international market conditions, price trends, and customer demands to reduce potential adverse impacts on operating results[26]. Corporate Governance - The Company has maintained high-standard corporate governance practices to ensure transparency and safeguard long-term development[128]. - The Board comprises three executive directors, one non-executive director, and three independent non-executive directors, ensuring independence and objectivity in decision-making[131]. - The independent non-executive directors possess expertise in accounting, economics, law, computing control, and business administration, representing shareholder interests effectively[131]. - The Company has established both remuneration and nomination committees in compliance with the Listing Rules, ensuring proper governance and oversight[153][156]. - The Company emphasizes the importance of candidates being able to dedicate sufficient time to fulfill their duties as Directors[157]. Human Resources and Employee Relations - The Group had a total of 1,597 employees as of December 31, 2021, an increase from 1,460 employees in 2020, reflecting a growth of approximately 9.4%[86]. - The Group offers a competitive remuneration package and various incentives, including pension plans and housing allowances, to enhance employee satisfaction[88]. - The remuneration for Directors and employees is determined based on their experience, responsibilities, workload, and years of service[71]. - The Group's human resource assurance system fosters a harmonious work environment among employees from diverse backgrounds[89]. - The Company emphasizes ongoing training for employees, covering management, sales skills, and service awareness to enhance overall capabilities[86]. Environmental, Social, and Governance (ESG) Initiatives - The Group's Board oversees environmental, social, and governance (ESG) strategies and performance, which are essential for long-term success[176]. - An ESG Committee has been established to formulate development strategies and monitor related risks[176]. - The Group focuses on providing quality and safe products, ensuring mutual benefits for customers, employees, and society[177]. - Hengdeli emphasizes the importance of corporate governance and risk management in its operations[189]. - The Group has committed to environmental protection and community contributions through various social activities[191]. Shareholder Relations and Communication - The Company has maintained close communications with shareholders, analysts, and fund managers through various channels, including one-on-one meetings, roadshows, and press conferences, to enhance transparency and provide timely information[169]. - The Company believes in the importance of effective communication with investors to enhance their understanding of the sales of exquisite watches and the Group's development strategy[169]. - The Company will continue to maintain a close relationship with its investors to enhance their understanding and confidence in the Group[169].

Revenue Performance - For the six months ended June 30, 2021, the Group recorded revenue of RMB450,749,000, a year-on-year decrease of 30.8% from RMB651,831,000 in the same period of 2020[3]. - The high-end consuming accessories business generated revenue of RMB210,787,000, which is similar to RMB208,502,000 in the same period last year[6]. - Watch retail and trading sales amounted to RMB64,518,000, representing a significant year-on-year decrease of 83.9% from RMB399,959,000[8]. - Commodity trading recorded revenue of RMB175,444,000, marking a substantial year-on-year increase of 304.5% from RMB43,370,000[8]. - For the six months ended June 30, 2021, the group's revenue was RMB 450,749,000, a decrease of 30.8% compared to RMB 651,831,000 for the same period in 2020[19]. - High-end consuming accessories revenue was RMB 210,787,000, accounting for 46.8% of total revenue, showing a slight increase from RMB 208,502,000 in 2020[21]. - Watches retail and trading business revenue dropped significantly to RMB 64,518,000, a decline of 83.9% from RMB 399,959,000 in the previous year[19]. - Commodity trading revenue surged to RMB 175,444,000, representing a 304.5% increase from RMB 43,370,000 in 2020[19]. Financial Performance - The Group reported a loss of RMB21,885,000 for the period, a significant improvement compared to a loss of RMB71,317,000 in the same period of 2020, representing a 69.3% reduction in loss[3]. - Loss attributable to shareholders was RMB16,975,000, down 76.1% from RMB70,961,000 in the same period last year[3]. - Gross profit for the period was approximately RMB 38,466,000, down 53.0% year-on-year, with a gross profit margin of 8.5%, a decrease of 400 basis points from 12.5%[25]. - The company reported a loss for the period of RMB 21,885,000, compared to a loss of RMB 71,317,000 in the prior year, indicating an improvement[141]. - Basic loss per share for the period was RMB 0.004, compared to RMB 0.015 in the same period of 2020[141]. - Total comprehensive income for the period was RMB (67,214,000), a decline from RMB 53,105,000 in the previous year, primarily due to exchange differences and other comprehensive income adjustments[145]. Assets and Liabilities - As of June 30, 2021, total equity was RMB 3,322,492,000, down from RMB 3,439,810,000 at the end of 2020[27]. - The group maintained a net debt to equity ratio of zero, with total debt increasing to RMB 74,931,000 from RMB 29,918,000 at the end of 2020[32]. - Cash and cash equivalents were RMB 1,134,615,000, a decrease from RMB 1,241,863,000 at the end of 2020[27]. - As of June 30, 2021, the Group's current assets amounted to approximately RMB2,266,979,000, a decrease from RMB2,459,838,000 as of December 31, 2020[38]. - The Group's current liabilities increased to approximately RMB165,041,000 as of June 30, 2021, compared to RMB137,312,000 as of December 31, 2020[40]. - The company’s inventories were reported at RMB 623,316,000, down from RMB 653,106,000 in the previous year, indicating a decrease in stock levels[169]. - Trade and other receivables decreased to RMB 492,097,000 from RMB 535,487,000, suggesting tighter credit management or reduced sales[170]. Strategic Plans and Market Outlook - The Group plans to focus on expanding the development in manufacturing high-end accessories for renowned watches and enhancing integrated services for commercial space in Mainland China and international markets[13]. - The Group will explore new profit models and diversify into manufacturing high-end product accessories in other lifestyle products such as jewelry, cosmetics, and mobile phones[13]. - The overall economic situation remains unpredictable, but the Group expects steady economic development in Mainland China[12]. - The Group will continue to adapt to market changes and strive for new breakthroughs in corporate development[13]. - The Group plans to seek opportunities for industry integration and strengthen its leadership through technical R&D and innovation in the second half of the year[51]. - The Group will expand its commercial space beautification services to include living space beautification services, aiming to build momentum for future development[66]. - The Group continues to enhance the standard of its integrated services for commercial space in both Mainland China and international markets[66]. Corporate Governance and Shareholder Information - The Company has established an audit committee comprising three independent non-executive directors to enhance financial oversight[128]. - The Company has adopted a code for securities transactions by directors that meets the standards required by the Model Code[129]. - The Board has reviewed the effectiveness of the internal control systems and considers them to be effective and adequate[125]. - Mr. Zhang Yuping holds a total of 1,597,556,501 shares, representing 35.78% of the issued share capital as of June 30, 2021[74]. - Best Growth International Limited, controlled by Mr. Zhang, holds 1,505,832,901 shares, which is 33.73% of the issued share capital[80]. - The Swatch Group (Hong Kong) Limited holds 437,800,000 shares, accounting for 9.81% of the issued share capital[82]. - The total number of issued shares of the Company as of June 30, 2021, is 4,464,806,959[75]. - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2021[84]. Environmental and Social Responsibility - The Group emphasizes environmental protection, ensuring all branches comply with national quality standards and regulations[62]. - The Group actively participates in public welfare activities, contributing to education, healthcare, and sports through donations[65].

Financial Performance - For the year ended December 31, 2020, the Group recorded revenue of approximately RMB1,219,856,000, a year-on-year decrease of 49.5% from RMB2,417,181,000 in 2019[11] - Retail sales amounted to approximately RMB677,167,000, representing a year-on-year decrease of 59.6% from RMB1,678,209,000 in 2019[11] - Revenue from the industrial group and others was approximately RMB542,689,000, down 26.6% from RMB738,972,000 in 2019[11] - The Group recorded a loss of approximately RMB386,524,000 for the year, with a loss attributable to equity shareholders of approximately RMB383,076,000[11] - The Group's gross loss for the year was approximately RMB148,223,000, a decrease of 138.0% compared to the previous year[90] - The gross loss margin was approximately 12.2%, a decrease of 28 percentage points from the previous year's gross profit margin of 16.2%[90] - The Group recorded an unaudited loss attributable to equity shareholders of approximately RMB 71 million, mainly due to the decrease in revenue from the retail business of renowned watches[35] - The total reserves and accumulated profits of the Company as of December 31, 2020, were approximately RMB 3,344,357,000, down from RMB 3,872,278,000 in 2019, indicating a decline of 13.6%[114] Business Operations - The Group decided to wind up the operation of its renowned watch business due to heavy losses and challenging market conditions[13] - The Group has ceased the operation of its renowned watch retail business to focus resources on more favorable prospects[40] - The luxury watch retail sales of the group dropped by 59.6% year-on-year, leading to the closure of all retail operations, including two stores and four pop-up counters[43] - The Group aims to expand the production of high-end accessories for renowned watches and diversify into other high-end lifestyle products in 2021[74] - The Group plans to implement limited diversification by integrating high-end product accessory manufacturing into other lifestyle products like jewelry, cosmetics, and mobile phones[47] - The Group's retail network primarily covers Hong Kong, Macau, Taiwan, and Malaysia, with various store formats including "Elegant" and "Hengdeli"/"Watchshoppe"[28] Market Conditions - The COVID-19 pandemic has highlighted operational difficulties, but the Group has taken measures to ensure staff safety and resumed production effectively[14] - Retail sales in Hong Kong experienced a substantial decline, representing a year-on-year decrease of 65.7%[34] - The overall economic indicators in Mainland China have shown positive signals, indicating resilience after the pandemic[49] - The Group believes that the long-term positive fundamentals of China's economy remain unchanged, with potential for medium-to-high economic growth continuing[20] - The Group aims to seek new business opportunities while ensuring stable and sustainable development of its overall business[20] Corporate Governance and Values - The Group's core values include respect, commitment, cooperation, and innovation, which support its corporate governance and social responsibilities[15] - The Group is committed to quality and innovation as key drivers for growth in the future[47] - The Group's corporate governance practices are aligned with its commitment to environmental, social, and governance (ESG) standards[200] - The Company emphasizes high standards of corporate governance, with a dedicated report spanning pages 39 to 52 of the annual report[200] Financial Position - Total equity as of December 31, 2020, was approximately RMB3,439,810,000, down from RMB3,981,587,000 in 2019, indicating a decrease of about 13.6%[94] - Current assets amounted to approximately RMB2,459,838,000 as of December 31, 2020, a decrease from RMB3,441,497,000 in 2019, representing a decline of approximately 28.4%[100] - Cash and cash equivalents were approximately RMB1,241,863,000, down from RMB1,713,284,000 in 2019, reflecting a decrease of about 27.5%[100] - The net debt to equity ratio of the Group was zero as of December 31, 2020, consistent with the previous year, indicating no reliance on debt financing[94] - The Group's current liabilities decreased to approximately RMB137,312,000 from RMB510,949,000 in 2019, a reduction of about 73.1%[109] Shareholder Information - The total issued share capital of the Company remained unchanged at 4,662,666,959 shares as of December 31, 2020[130] - The Company's distributable reserves increased to approximately RMB 1,426,459,000 in 2020, up from RMB 1,338,806,000 in 2019, representing a growth of 6.5%[123] - The Board does not recommend the payment of any final dividend for the year ended December 31, 2020, consistent with the previous year[125] - As of December 31, 2020, Mr. Zhang Yuping held a total of 1,597,556,501 shares, representing 34.26% of the issued share capital of the Company[176] - Best Growth International Limited, wholly owned by Mr. Zhang Yuping, held 1,505,832,901 shares of the Company as of December 31, 2020, accounting for 32.30% of the issued shares[184] Employee and Environmental Initiatives - As of December 31, 2020, the Group had a total of 1,460 employees, a decrease from 1,831 employees in 2019[200] - Environmental protection is a top priority for the Company, which has implemented various measures for energy conservation and environmental management[200] - The Company has achieved significant results in promoting harmonious development in economic, social, and ecological benefits through its environmental initiatives[200]

Financial Performance - For the six months ended 30 June 2020, the Group recorded revenue of RMB651,831,000, a year-on-year decrease of 52.1% compared to RMB1,361,170,000 in the same period of 2019[6]. - Retail sales amounted to RMB399,959,000, representing a year-on-year decrease of 58.7% from RMB968,743,000 in the prior year[6]. - The Group recorded a loss of RMB71,317,000 for the period, compared to a profit of RMB33,414,000 in the same period of 2019, marking a significant decline[6]. - Loss attributable to equity shareholders amounted to RMB70,961,000, a stark contrast to the profit of RMB29,925,000 recorded in the previous year[6]. - The gross profit margin decreased to 12.5%, down 600 basis points from 18.5% in the prior year[3]. - The Group's gross profit was approximately RMB81,777,000, a decrease of 67.6% year-on-year, with a gross profit margin of approximately 12.5%, down 600bps from 18.5%[27]. - For the six months ended June 30, 2020, the total comprehensive income was RMB 46,024,000, which includes a profit of RMB 29,925,000[178]. - The basic and diluted loss per share for the period was RMB (0.015), compared to earnings of RMB 0.006 per share in the previous year[154]. Retail Operations - As of 30 June 2020, the Group operated a total of 67 retail outlets in Hong Kong, Macau, Taiwan, and Malaysia[10]. - The Group closed five retail outlets in Hong Kong and Macau during the review period to mitigate losses[58]. - As of June 30, 2020, the Group operated a total of 16 retail outlets in Hong Kong and Macau, facing extremely tough conditions[59]. - The retail business in Taiwan consists of 45 outlets, primarily selling mid-end and mid-to-high-end watch brands[61]. - The Group operated 6 stores in Malaysia, focusing on mid-end and mid-to-high-end branded watches[62]. - Sales in Taiwan and Malaysia have severely declined or been halted due to the pandemic and economic downturn, with no expected breakthroughs in the second half of the year[63]. - The ongoing geopolitical unrest and the impact of the coronavirus pandemic continue to pose significant challenges to the Group's retail operations[58]. Business Strategy and Future Plans - The Group plans to adjust its business structure and explore new development models to achieve sustainable revenue growth in the future[13]. - The Group aims to expand production of accessories for mid-to-high-end products to ensure stable revenue streams[13]. - The Group will implement a limited diversification process in its industrial production to seek broader development paths[13]. - The Group aims to explore new development models and deepen cooperation with brand partners and international peers[14]. - The Group plans to focus on expanding the production of mid-to-high-end products such as watches and jewelry to ensure stable and sustainable income[14]. - The Group will diversify its industrial production into cosmetics and electronics, seeking new development paths for breakthroughs[89]. - The Group is adapting its business structure through staff layoffs and continuous shop closures to ensure survival[58]. Financial Position and Liquidity - As of June 30, 2020, the Group maintained total equity of RMB4,030,764,000, an increase from RMB3,981,587,000 at the end of 2019[30]. - The net debt to equity ratio of the Group was zero, indicating a solid financial foundation for future business expansion[30]. - The Group's cash and cash equivalents and deposits with banks amounted to RMB1,377,862,000 as of June 30, 2020, down from RMB1,713,284,000 at the end of 2019[30]. - The Group's total liabilities amounted to RMB 140,907,000, a decrease from RMB 216,617,000 as of December 31, 2019, indicating a significant reduction in liabilities[33]. - Current liabilities totaled approximately RMB 311,118,000 as of June 30, 2020, down from RMB 510,949,000 as of December 31, 2019, with bank loans decreasing from RMB 142,094,000 to RMB 63,830,000[38]. - The company reported a significant increase in other investments, rising to RMB 517,330,000 from RMB 400,184,000, indicating strategic investment activities[160]. - The cash and cash equivalents stood at RMB 1,186,946,000, showing a slight increase from RMB 1,165,169,000, suggesting stable cash flow management[160]. Shareholder Information - As of June 30, 2020, Mr. Zhang Yuping holds 1,597,556,501 shares, representing 34.26% of the issued share capital of the Company[93]. - The total number of issued shares of the Company as of June 30, 2020, is 4,662,666,959[96]. - The Company did not declare an interim dividend for the six months ended June 30, 2020, compared to RMB 3.8 cents per share for the same period in 2019[106]. - No awarded shares were granted during the review period, while 30,000,000 shares were granted in the same period of 2019[113]. Corporate Governance and Compliance - The Company has maintained compliance with the Corporate Governance Code, except for a deviation regarding the separation of the roles of chairman and CEO[137][138]. - The audit committee has reviewed the effectiveness of the internal control systems, which are considered effective and adequate[140]. - The Company has established an audit committee comprising three independent non-executive directors to oversee financial reporting and internal controls[141][143]. Environmental and Social Responsibility - The Group is committed to environmental protection, ensuring all pollutant emissions meet national standards[83]. - The Group maintains a strong commitment to environmental protection, ensuring compliance with national standards for pollution discharge during the review period[86]. - The Group actively participates in social welfare activities, contributing to education, healthcare, and sports through various donations[86].

Retail Operations - As of December 31, 2019, the Group operated a total of 77 retail outlets across Hong Kong, Macau, Taiwan, and Malaysia, with overall sales decreasing by 19.9% compared to the previous year[23] - The retail network includes 21 stores in Hong Kong and 56 in Taiwan/Malaysia, with a focus on high-end and mid-to-high-end brands[50] - The Group operated a total of 20 retail outlets in Hong Kong as of December 31, 2019, including 7 multi-brand Elegant shops and 13 single-brand boutiques[65] - Sales of renowned watches in Hong Kong decreased by 23.0% compared to the same period last year due to adverse political and economic conditions[66] - The Group maintained a stable sales performance in Taiwan with 50 retail outlets, but no significant increase in sales was observed[74] - In Malaysia, the sales of renowned-brand watches showed good momentum in the first half of the year, but profits declined in the second half due to adverse political situations[76] Business Strategy and Development - The Group adopted an aggressive strategy focusing on standardization, automation, and continuous improvement of service standards, while establishing new high-standard production bases to expand production scale[24] - The Group aims to deepen cooperation with brands to facilitate business expansion and increase profits, enhancing its overall strength as a powerful engine for future development[24] - The Group aims to expand the production of watch accessories to ensure stable and sustainable income[34] - The Group plans to deepen cooperation with brand suppliers and international peers to explore new development models[34] - The Group's strategy includes introducing mid-to-high-end brands to adapt to changing consumer preferences in Hong Kong[55] - The Group is committed to optimizing its brand portfolio to stabilize overall sales performance[53] - The Group's new industrial production bases will support a limited diversification process to seek broader development opportunities[34] - The Group aims to leverage its core competitiveness and seek new business opportunities to ensure healthy and steady progress[33] - The Group plans to explore limited diversification to expand its business model beyond watch accessories[90] Financial Performance - For the year ended December 31, 2019, the Group recorded revenue of RMB 2,417,181,000, representing a year-on-year decrease of 10.0%[116] - Retail sales amounted to RMB 1,678,209,000, reflecting a year-on-year decrease of 19.9%[116] - Revenue from the industrial group and others increased to RMB 738,972,000, a year-on-year increase of 24.5%[116] - The Group's gross profit for 2019 was approximately RMB 390,504,000, a decrease of 15.4% year-on-year, with a gross profit margin of 16.2%, down 100bps from 2018[128] - The economic environment and increased inventory provisions were key factors contributing to the decline in retail revenue and gross profit margin[128] - The Group recorded a loss of approximately RMB324,117,000 for the year, compared to a profit of RMB79,249,000 in 2018[133] - Loss attributable to equity shareholders amounted to approximately RMB332,520,000, while profit for 2018 was RMB68,746,000[133] - As of December 31, 2019, total equity was RMB3,981,587,000, down from RMB4,447,689,000 in 2018[133] - Current assets amounted to approximately RMB3,441,497,000, a decrease from RMB3,904,184,000 in 2018, with inventories at RMB1,309,758,000[141] - Current liabilities increased to approximately RMB510,949,000 from RMB387,409,000 in 2018, with bank loans rising to RMB142,094,000[147] - The total reserves and accumulated profits of the Company as of December 31, 2019, were RMB 3,872,278,000, down from RMB 4,347,114,000 in 2018[152] Market Conditions and Challenges - The global political turmoil and economic slowdown have significantly impacted the Group's operations, particularly in Hong Kong, which faces unprecedented pressure[26] - Despite challenges, the Group believes in the stable fundamentals of China's economic development and the potential for continued high-speed growth driven by domestic demand[33] - The geopolitical turmoil and trade frictions have significantly impacted the Group's performance, particularly in Hong Kong[117] - The COVID-19 outbreak has posed a significant threat to the global economy, impacting various industries including retail in Hong Kong[155] - The geopolitical unrest and economic pressures in Hong Kong have created unprecedented challenges for business operations[72] Corporate Governance and Values - The Group's core values of "respect, commitment, cooperation, and innovation" have established a solid foundation for corporate governance and social responsibility[25] - The Group has complied with all relevant laws and regulations affecting its business operations during the year[114] - The Group is committed to enhancing employee training and improving frontline service levels to adapt to the challenging market environment[67] - The Group actively allocated more resources to marketing and strengthened cooperation with international brands for promotional activities[67] Shareholder and Director Information - The Company did not engage in any significant acquisitions or disposals during the year under review[149] - The Board does not recommend the payment of any final dividend for the year ended December 31, 2019, compared to RMB 1.2 cents per share in 2018[157] - The Company granted 30,000,000 awarded shares to employees, with a reference closing price of HKD0.405 on the grant date of April 24, 2019[163] - The total number of awarded shares includes 10,000,000 shares to independent third parties and 20,000,000 shares to connected persons, including 12,000,000 shares to Mr. Zhang Yuping[165] - The Company has entered into service contracts with executive and non-executive Directors for a term of three years, with no contracts that cannot be terminated without compensation within one year[181] - The remuneration policies for Directors and employees are based on experience, responsibilities, workload, and years of service[188]

Financial Performance - For the six months ended June 30, 2019, the Group recorded revenue of RMB1,361,170,000, representing a year-on-year increase of 1.3% compared to RMB1,344,045,000 in the same period of 2018[4]. - Retail sales amounted to RMB968,743,000, reflecting a year-on-year decrease of 9.6% from RMB1,072,162,000 in the previous year[7]. - The industrial group and others recorded revenue of RMB392,427,000, representing a year-on-year increase of 44.3% from RMB271,883,000 in the same period of 2018[7]. - The Group's net profit for the period was RMB33,414,000, showing a slight year-on-year decrease of 1.9% from RMB34,054,000[7]. - Gross profit for the period was approximately RMB252,333,000, a year-on-year increase of 16.5%, with a gross profit margin of 18.5%, up 240bps from the previous year[31]. - Profit attributable to equity shareholders was RMB29,925,000, down 2.9% year-on-year[31]. - The Group's revenue increased by 8.9% year-on-year, while net profit rose by 36.6% during the review period[88]. Dividends and Share Capital - A special interim dividend of RMB3.8 cents per ordinary share was declared[4]. - The total number of issued shares of the Company as of June 30, 2019, was 4,662,666,959[108]. - The Board declared a special interim dividend of RMB3.8 cents for the six months ended 30 June 2019, compared to nil for the same period in 2018[119]. - The special interim dividend will be distributed on or before 13 September 2019 to shareholders on the register as of 5 September 2019[119]. Retail Operations - As of June 30, 2019, the Group operated a total of 71 retail outlets in Hong Kong, Macau, Taiwan, and Malaysia, with overall sales remaining stable[10]. - The Group's retail business in Taiwan focused on mid-end and mid-to-high-end watch brands, operating 51 retail outlets[68]. - The Group plans to expand its retail outlets in prime commercial districts in Hong Kong in the second half of the year to increase market share[66]. - Sales performance in Malaysia improved, demonstrating a promising prospect amid a relatively stable environment[56]. - Sales in Taiwan showed a year-on-year increase in both sales amount and sales volume, with a growing number of VIP customers[73]. Financial Position and Assets - The Group maintained total equity of RMB4,447,031,000 as of June 30, 2019, slightly down from RMB4,447,689,000 at the end of 2018[31]. - Net current assets were RMB3,291,212,000, a decrease from RMB3,516,775,000 at the end of 2018[31]. - Cash and cash equivalents totaled RMB1,944,838,000, down from RMB2,189,214,000 at the end of 2018[31]. - Current assets as of June 30, 2019, totaled approximately RMB3,703,860,000, a decrease from RMB3,904,184,000 as of December 31, 2018[1]. - Non-current assets increased to RMB1,296,022,000 from RMB1,015,845,000, marking an increase of approximately 27.6%[182]. Strategic Initiatives - The Group plans to engage in more in-depth cooperation with brand suppliers and international peers, focusing on new industrial production bases for diversification[18]. - The Group aims to leverage its core competitiveness to identify new opportunities and ensure steady growth despite the challenging economic environment[15]. - The Group's strategy includes expanding production scale and deepening cooperation with brands to maintain growth momentum[25]. - The Group aims to strengthen industrial management and technical R&D while exploring business diversification to enhance its product pipeline[87]. Market Conditions - Sales of renowned branded watches in Hong Kong decreased by 13.5% compared to the same period last year, reflecting a challenging economic environment[62]. - Overall sales of renowned branded watches for the Group experienced a year-on-year decrease of 9.6%[56]. - The construction of the Guangdong-Hong Kong-Macau Greater Bay Area is expected to support the stability of the operating environment and economic progress in Hong Kong and Macau[15]. - The Group believes that the long-term fundamentals of the Chinese economy remain unchanged, with medium to high-speed growth expected to continue[100]. Corporate Governance - The audit committee has reviewed the effectiveness of the internal control system, confirming its adequacy and effectiveness[157]. - The Company has established an audit committee comprising three independent non-executive directors to oversee financial reporting and internal controls[158]. - The Board has ensured compliance with the Corporate Governance Code, maintaining a high standard of corporate governance[155].

Financial Performance - As of December 31, 2018, the Group recorded revenue of RMB2,687,248,000, representing a year-on-year increase of 10.2%[34] - Retail sales amounted to RMB2,093,852,000, reflecting a year-on-year increase of 7.7%[34] - The industrial group and others recorded revenue of RMB593,396,000, representing a year-on-year increase of 19.7%[34] - The Group achieved a profit for the year of RMB79,249,000, a significant turnaround from a loss of RMB165,080,000 in 2017, marking a year-on-year increase of 148.0%[34] - Profit attributable to equity shareholders amounted to RMB68,746,000, compared to a loss of RMB236,382,000 in 2017, representing a year-on-year increase of 129.1%[34] - The Group's total sales for the year ended December 31, 2018, reached RMB 2,687,248,000, an increase of 10.2% compared to RMB 2,439,022,000 in 2017[36] - Retail sales amounted to RMB 2,093,852,000, reflecting a year-on-year growth of 7.7% from RMB 1,943,307,000 in 2017[36] - The industrial group's sales increased by 19.7% to RMB 593,396,000, up from RMB 495,715,000 in the previous year[36] - The Group reported a net profit of RMB 79,249,000, a significant turnaround from a loss of RMB 165,080,000 in 2017, marking a 148.0% increase[36] - Shareholders' profit attributable to the Group was RMB 68,746,000, compared to a loss of RMB 236,382,000 in 2017, representing a growth of 129.1%[36] Retail Operations - The Group maintained a retail network of 67 outlets across Hong Kong, Macau, Taiwan, and Malaysia, selling watches from over 50 internationally renowned brands[10] - The Group operated a total of 13 retail outlets in Hong Kong, including 5 multi-brand "Elegant" shops and 8 single-brand boutiques[83] - New stores opened in Hong Kong included a high-end MB&F boutique and Bulgari and Panerai boutiques, contributing to sales growth[83] - The Group opened a "Hengdeli" watch store in Macau, with stable sales and plans for further market expansion[92] - As of December 31, 2018, the Group operated a total of 48 retail outlets in Taiwan, primarily located in major districts such as Taipei, Taichung, Kaohsiung, Hsinchu, and Chiayi[96] - Sales in Taiwan remained stable during the year, with no significant changes compared to the previous year, and the sales target continues to focus on local customers[99] Strategic Initiatives - The Group's strategy focuses on steady and healthy growth while seeking sustainable development to create greater value for shareholders[31] - The Group aims to maintain stable and healthy growth while seeking sustainable development in 2019, focusing on deeper cooperation with brand suppliers and international peers[49] - The Group is actively adjusting its brand portfolio, introducing mid-to-high-end brands to adapt to changing consumer preferences in Hong Kong[73] - The Group's strategic approach will be regularly reviewed to ensure adaptability to changing market conditions[124] - The Group aims to strengthen industry management and technical R&D, focusing on quality and driving growth through innovation[119] Market Conditions - The overall retail market in Hong Kong showed prosperity in the first half of 2018, driven by favorable economic factors[33] - The Group faced increased market uncertainty and downward pressure in the second half of 2018 due to changing international situations[33] - Retail sales in Hong Kong increased by 6.8% year-on-year, despite market uncertainties in the second half of the year[84] - The international political and economic situation remains unstable, but the Group aims to leverage opportunities for growth in the Guangdong-Hong Kong-Macau Greater Bay Area[91] Financial Position - As of December 31, 2018, the Group had total equity of RMB4,447,689,000 and net current assets of RMB3,516,775,000, with cash and cash equivalents of RMB2,189,214,000[166] - The total debt amounted to RMB143,752,000, with a net debt to equity ratio of approximately zero, indicating a solid foundation for further business expansion[167] - Current assets totaled approximately RMB3,904,184,000, including inventories of RMB1,403,251,000 and trade and other receivables of RMB311,719,000[177] - The revenue breakdown showed that Hong Kong contributed 70.6%, Taiwan/Malaysia 7.3%, and the industrial group and others 22.1%[157] - The Group maintained good relationships with multiple banks to manage liquidity and financing requirements[179] Risk Management - The Group recognizes various risks, including operational, financial, and market risks, which may impact its performance and outlook[138][140] - The Group is committed to monitoring cash flow and maintaining adequate capital to manage liquidity risk effectively[138] - The Group did not face significant foreign exchange risk due to proper handling of currency fluctuations during the review year[180] - The Company has a prudent treasury policy for financial and cash management[179] Corporate Governance - The Group's core values include respect, commitment, cooperation, and innovation, which underpin its corporate governance and social responsibility efforts[41] - The Group recognizes customer relationship as its core competitiveness, committing to advanced technology, efficient management, and considerate services[102] - The Group emphasizes the importance of attracting and retaining skilled personnel to achieve its business goals[139]