Financial Performance - For the six months ended June 30, 2023, the company's revenue was approximately HKD 1,601,552,000, an increase of HKD 173,060,000 or 12.1% compared to HKD 1,428,492,000 for the same period in 2022[2] - The gross profit for the same period was approximately HKD 867,319,000, representing an increase of HKD 171,985,000 or 24.7%, with a gross margin of 54.2% compared to 48.7% in the previous year[2] - EBITDA for the six months ended June 30, 2023, was approximately HKD 369,754,000, an increase of HKD 153,825,000 or 71.2% from HKD 215,929,000 in the same period of 2022[2] - The net profit for the period was approximately HKD 210,276,000, an increase of HKD 109,833,000 or 109.3% compared to HKD 100,443,000 for the same period in 2022[2] - Profit before tax increased to HKD 274,958, a significant rise of 102.5% from HKD 135,395 in the previous year[7] - Total comprehensive income for the period was HKD 198,189, recovering from a loss of HKD 16,659 in the same period last year[8] - The company reported a profit attributable to equity holders of HKD 211,201,000 for the six months ended June 30, 2023, compared to HKD 99,851,000 for the same period in 2022, representing a significant increase of 111.1%[25] - The total tax expense for the period was HKD 64,682,000, significantly higher than HKD 34,952,000 in the previous year[23] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.06 per share for the six months ended June 30, 2023, up from HKD 0.037 for the same period in 2022[2] - The interim dividend declared for the six months ended June 30, 2023, is HKD 0.06 per share, up from HKD 0.037 per share in the same period last year, reflecting a 62.2% increase[28] - The company repurchased a total of 2,048,000 shares at a total cost of approximately HKD 5,523,000 (before expenses) during the six months ended June 30, 2023[93] - The repurchase of shares was executed under the authorization received at the annual general meetings held on May 24, 2022, and May 30, 2023, aimed at enhancing the net asset value per share and earnings per share for shareholders[93] Market and Operational Insights - The company is experiencing a steady and continuous increase in demand for its products, primarily driven by global digitalization trends, which are accelerating consolidation in the dental industry[1] - The number of digital solution cases produced in mainland China increased to approximately 373,985, a rise of 50.9% compared to 247,887 cases in the same period of 2022, driven by continued adoption of intraoral scanners by customers[5] - The company continues to focus on expanding its product offerings and market presence, particularly in the dental equipment sector[12] - The company aims to fully leverage future opportunities to further strengthen its fundamentals[1] - The company aims to establish a new business unit in Vietnam to serve mid to large dental clinic chains in the North American market[52] - The company continues to focus on digitalization trends in the dental industry to capture market share and enhance customer experience[50] Assets and Liabilities - Non-current assets as of June 30, 2023, totaled HKD 2,289,553, slightly up from HKD 2,273,309 at the end of 2022[9] - Current assets increased to HKD 1,408,230 from HKD 1,265,746 at the end of 2022, driven by higher trade receivables[9] - The company reported a net asset value of HKD 2,484,207, an increase from HKD 2,333,533 at the end of 2022[10] - The company's property, plant, and equipment value increased to HKD 656,109,000 as of June 30, 2023, from HKD 651,079,000 at the end of 2022, indicating a slight growth[29] - Goodwill increased to HKD 1,147,444,000 as of June 30, 2023, compared to HKD 1,132,420,000 at the end of 2022, showing a growth of 1.3%[30] - Trade receivables rose to HKD 615,708,000 as of June 30, 2023, from HKD 565,828,000 at the end of 2022, marking an increase of 8.8%[32] - Trade payables decreased to HKD 69,342,000 as of June 30, 2023, from HKD 75,598,000 at the end of 2022, reflecting a decline of 8.2%[34] - The company reported bank borrowings of HKD 647,404,000 as of June 30, 2023, compared to HKD 630,180,000 at the end of 2022, indicating an increase of 2.9%[36] Costs and Expenses - Selling and distribution expenses increased by about 6.0% to approximately HKD 201,369,000, accounting for about 12.6% of total group revenue[63] - Administrative expenses rose by approximately 3.6% to about HKD 376,054,000, representing about 23.5% of total group revenue[64] - The company’s financing costs rose to HKD 20,783, compared to HKD 8,895 in the previous year, indicating increased borrowing costs[7] - Financing costs increased by approximately 133.6% to about HKD 20,783,000, accounting for about 1.3% of total group revenue[66] Employee and Governance - The total employee cost for the six months ended June 30, 2023, was approximately HKD 725,358,000, compared to HKD 703,475,000 for the same period in 2022[88] - As of June 30, 2023, the company employed a total of 6,860 staff, an increase from 6,830 as of December 31, 2022[87] - The company has complied with the corporate governance code as per the Listing Rules during the six months ended June 30, 2023[95] - The audit committee, consisting of independent non-executive directors, reviewed the interim results for the six months ended June 30, 2023[96] Risks and Future Outlook - The company faces various business risks, including global economic fluctuations and geopolitical risks, which may adversely affect its financial condition and operating performance[80] - The company is optimistic about the long-term prospects in the Greater China market, driven by government procurement measures and digitalization trends[54] - The company aims to strengthen its global leadership position through strategic collaborations, acquisitions, and partnerships to expand its product offerings and distribution networks[58]

Financial Performance - For the year ended December 31, 2022, the revenue was approximately HKD 2,830 million, a decrease of about 4.2% compared to HKD 2,955 million in 2021[13] - The gross profit margin for the year ended December 31, 2022, was approximately 48.9%, down from 52.5% in 2021, with gross profit decreasing by about 10.8% to HKD 1,383 million[13] - EBITDA for the year ended December 31, 2022, was approximately HKD 463 million, a decrease of 26.0% from HKD 626 million in 2021[13] - Net profit for the year ended December 31, 2022, was approximately HKD 221 million, a decrease of about 38.8% compared to HKD 360 million in 2021[13] - Basic earnings per share for the year ended December 31, 2022, were HKD 0.231, down approximately 38.7% from HKD 0.377 in 2021[13] - For the six months ended December 31, 2022, the company reported revenue of HKD 1,401,596,000, a decrease of 1.9% compared to HKD 1,428,492,000 for the same period in 2021[14] - The gross profit for the same period was HKD 687,972,000, reflecting a decline of 1.1% from HKD 695,334,000, with a gross margin of 49.1%[14] - EBITDA increased by 14.6% to HKD 247,422,000, with an EBITDA margin of 17.7%, up from 15.1% in the previous period[14] - Net profit for the six months ended December 31, 2022, was HKD 120,106,000, a significant increase of 19.6% from HKD 100,443,000[14] Market Performance - The European market contributed 41.7% to the total revenue, making it the largest market for the company in terms of revenue[8] - Sales in Europe for the year were HKD 1,180,604,000, down 10.3%, while North America reported sales of HKD 709,317,000, a slight decrease of 1.3%[16] - The Greater China market recorded revenue of approximately HKD 666,659,000 for the year ended December 31, 2022, a decrease of about HKD 32,587,000 compared to the previous year, accounting for approximately 23.6% of total revenue[32] - The decline in the Greater China market revenue was partly due to a 4.1% depreciation of the Renminbi against the Hong Kong Dollar[32] - The overall sales in Europe increased by 4.9% in original currency terms, driven by higher consumer spending on dental specialty treatments and the adoption of intraoral scanners, which saw a sales growth of 13.6%[29] Strategic Initiatives - The company plans to further invest in production facilities in Dongguan and Vietnam to enhance its production capabilities and R&D levels[8] - The company aims to leverage new production facilities in Vietnam to establish a new business unit specifically serving mid-to-large dental clinic chains in the U.S. market[31] - The company is optimistic about the mainland China market's prospects, especially with recent government procurement measures aimed at price regulation and transparency[8] - The company plans to enhance its product offerings in the Greater China region, including expanding mid-range products and transparent aligners[32] - The company has positioned itself as a pioneer in providing comprehensive digital solutions in the dental industry, ready to capitalize on the accelerating digitalization trend[29] Expenses and Costs - Selling and distribution expenses increased by approximately 4.3% to about HKD 374,987,000, representing 13.3% of total revenue, compared to 12.2% in the previous year[39] - Administrative expenses rose by approximately 0.7% to about HKD 702,228,000, accounting for 24.8% of total revenue, up from 23.6% in the previous year[40] - Financing costs increased by approximately 13.9% to about HKD 26,270,000, representing 0.9% of total revenue, compared to 0.8% in the previous year[42] Cash Flow and Capital Expenditure - Net cash generated from operating activities decreased to approximately HKD 258,276,000 in 2022 from HKD 525,144,000 in 2021, primarily due to a decrease in net profit and an increase in income tax paid by approximately HKD 54,261,000[50] - The company's cash and cash equivalents as of December 31, 2022, were approximately HKD 444,377,000, down from HKD 633,157,000 in 2021[49] - Total capital expenditure for the year was approximately HKD 185,367,000, mainly for upgrading production facilities, with an additional investment of approximately HKD 47,259,000 in cutting-edge technology machinery[53] Shareholder Information - The board proposed a final dividend of HKD 0.044 per share for the year ended December 31, 2022, consistent with the previous year[13] - The group reported a mid-term dividend of HKD 0.037 per ordinary share for the six months ended June 30, 2022, compared to HKD 0.075 and a special dividend of HKD 0.050 for the same period in 2021[91] - As of December 31, 2022, the company's distributable reserves were approximately HKD 516.2 million, an increase from approximately HKD 494.0 million in 2021[96] Corporate Governance - The board consists of 10 members, including 6 executive directors and 4 independent non-executive directors[69] - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with the standards set out in the listing rules[141] - The independent non-executive directors confirmed that the related party transactions were conducted on normal commercial terms and were fair and reasonable to shareholders[131] - The company has adhered to all applicable principles and code provisions of the corporate governance code during the reporting year[139] Risk Management - The company has developed and adopted clear risk management procedures and guidelines to identify, assess, and manage significant risks[165] - An external professional service company has been appointed to review the risk management and internal control systems annually[165] - The audit committee reported no significant internal control deficiencies following the review of the risk management system[165] Research and Development - The company invested approximately HKD 40,096,000 in research and development costs, representing about 3.1% of total revenue, up from 2.8% in 2021[53] - New product development initiatives are underway, focusing on innovative dental equipment expected to launch in Q3 2023[83] Employee Information - The group employed a total of 6,830 full-time employees as of December 31, 2022, an increase from 6,596 in 2021[67] - The total employee costs (excluding directors and senior management) amounted to approximately HKD 1,359,158,000 for the year ended December 31, 2022, compared to HKD 1,322,111,000 in 2021[67]

Financial Data and Key Metrics Changes - The company will present the overall operational performance for the year 2022 and future outlook [1] Business Line Data and Key Metrics Changes - No specific data or metrics related to business lines were provided in the document [1] Market Data and Key Metrics Changes - No specific market data or metrics were provided in the document [1] Company Strategy and Development Direction and Industry Competition - The management will discuss the company's future outlook and strategic direction during the call [1] Management Comments on Operating Environment and Future Prospects - The management will provide insights on the operating environment and future prospects during the call [1] Other Important Information - The call will include an interactive Q&A session following the management's presentation [1] Q&A Session All Questions and Answers - No specific questions or answers were provided in the document [1]

Financial Performance - For the year ended December 31, 2022, the company's revenue was approximately HKD 2,830 million, a decrease of about 4.2% compared to HKD 2,955 million in 2021[2] - The gross profit margin for the year ended December 31, 2022, was approximately 48.9%, down from 52.5% in 2021, with gross profit decreasing by about 10.8% to HKD 1,383 million[2] - EBITDA for the year ended December 31, 2022, was approximately HKD 463 million, a decrease of about 26.0% from HKD 626 million in 2021[2] - The net profit for the year ended December 31, 2022, was approximately HKD 221 million, down about 38.8% from HKD 360 million in 2021[2] - Total revenue for 2022 was HKD 2,830,088 thousand, a decrease of 4.2% from HKD 2,955,172 thousand in 2021[22] - The group's profit before tax for 2022 was HKD 220,458,000, a decrease of 38.8% from HKD 360,825,000 in 2021[35] - Net profit attributable to the company's owners decreased by approximately 38.9% from HKD 360,825,000 for the year ended December 31, 2021, to HKD 220,458,000 for the year ended December 31, 2022[73] - EBITDA for the year ended December 31, 2022, was HKD 463,351,000, down from HKD 626,393,000 for the year ended December 31, 2021, representing a decrease of approximately 26%[77] - Adjusted EBITDA for the year ended December 31, 2022, was HKD 464,795,000, compared to HKD 628,686,000 for the year ended December 31, 2021, with an adjusted EBITDA margin of 16.4% down from 21.3%[77] Revenue Breakdown - Revenue from Europe for the year ended December 31, 2022, was HKD 1,180 million, a decrease of 10.3% from HKD 1,255 million in 2021[6] - Revenue from North America was HKD 709 million, a slight decrease of 1.3% from HKD 719 million in 2021[6] - Revenue from the European market in 2022 was HKD 1,180,604 thousand, a decrease of 5.9% compared to HKD 1,254,596 thousand in 2021[23] - The fixed dental equipment segment generated revenue of HKD 1,803,466 thousand in 2022, down from HKD 1,935,951 thousand in 2021, a decrease of 6.8%[22] - Fixed dental materials generated revenue of about 1,803,466,000 HKD in 2022, down approximately 132,485,000 HKD from 2021, representing 69.0% of total revenue[47] - Removable dental materials recorded revenue of 535,091,000 HKD, a slight decrease of 2,323,000 HKD from the previous year, accounting for 20.5% of total revenue[48] - Other dental materials, including orthodontic devices and sports mouthguards, achieved revenue of 273,660,000 HKD, down 11,423,000 HKD from 2021, making up 10.5% of total revenue[49] - The Greater China market recorded revenue of approximately HKD 666,659,000 for the year ended December 31, 2022, a decrease of about HKD 32,587,000 compared to the previous year, accounting for approximately 23.6% of total revenue[60] - The Australian market generated revenue of approximately HKD 235,811,000 for the year ended December 31, 2022, a decrease of about HKD 14,528,000, representing approximately 8.3% of total revenue[62] - Other markets, including India, Japan, Malaysia, Taiwan, and Singapore, recorded revenue of approximately HKD 37,697,000, an increase of about HKD 5,482,000, accounting for approximately 1.3% of total revenue[63] Dividends and Shareholder Returns - The company maintained a final dividend of HKD 0.044 per share for the year ended December 31, 2022, consistent with the previous year[2] - The interim dividend per share for 2022 was HKD 0.037, significantly lower than HKD 0.075 in 2021, a reduction of 50.7%[33] - The board proposed a final dividend of HKD 0.044 per ordinary share for the year ended December 31, 2022, consistent with the final dividend of HKD 0.044 in 2021[99] - As of December 31, 2022, the company repurchased a total of 1,950,000 ordinary shares at a total cost of approximately HKD 3,595,000, which was executed to enhance the net asset value and earnings per share for shareholders[101][102] Assets and Liabilities - Non-current assets increased to HKD 2,273,309 thousand in 2022 from HKD 2,261,980 thousand in 2021, reflecting a growth of 0.5%[11] - Current assets decreased to HKD 1,265,746 thousand in 2022 from HKD 1,395,399 thousand in 2021, a decline of 9.3%[11] - Total liabilities decreased from HKD 668,285 thousand in 2021 to HKD 529,383 thousand in 2022, representing a reduction of 20.9%[11] - The company's equity attributable to owners decreased to HKD 2,333,533 thousand in 2022 from HKD 2,358,660 thousand in 2021, a decrease of 1.1%[12] - Cash and cash equivalents decreased significantly from HKD 633,157 thousand in 2021 to HKD 444,377 thousand in 2022, a drop of 29.8%[11] - Trade receivables increased to HKD 565,828 thousand in 2022 from HKD 528,976 thousand in 2021, an increase of 7.0%[11] - The company's interest-bearing bank borrowings increased to HKD 545,274 thousand in 2022 from HKD 499,660 thousand in 2021, an increase of 9.1%[12] - Inventory increased to HKD 157,244 thousand in 2022 from HKD 142,488 thousand in 2021, a rise of 10.3%[11] - The total non-current liabilities increased to HKD 676,139 thousand in 2022 from HKD 630,434 thousand in 2021, an increase of 7.2%[12] - The company's total assets less current liabilities increased to HKD 3,009,672 thousand in 2022 from HKD 2,989,094 thousand in 2021, an increase of 0.7%[11] Operational Insights - The number of digital solution cases produced in mainland China increased to approximately 549,736, an increase of 82.5% compared to 301,212 cases in 2021, driven by more customers adopting intraoral scanners[3] - The company is focused on further investment in digital-driven dental solutions to enhance market share and customer experience[1] - The company aims to evolve into a comprehensive dental ecosystem, expanding educational and product services, including partnerships with intraoral scanner companies[1] - The company has positioned itself as a pioneer in providing comprehensive digital solutions, ready to capitalize on the digitalization trend in the dental industry[55] - The company aims to leverage its new production facility in Vietnam to establish a business unit specifically serving mid-to-large dental clinic chains in the U.S. market[57] Cost and Expenses - The cost of goods sold was HKD 1,446,782,000 in 2022, compared to HKD 1,404,521,000 in 2021, representing an increase of 3.0%[28] - Sales and distribution expenses increased by approximately 4.3% to about HKD 374,987,000, accounting for approximately 13.3% of total revenue[69] - Administrative expenses rose by approximately 0.7% to about HKD 702,228,000, representing approximately 24.8% of total revenue[70] - The total financing costs rose to HKD 26,270,000 in 2022 from HKD 23,061,000 in 2021, marking an increase of 9.6%[30] Research and Development - Research and development costs increased to HKD 40,096,000 in 2022 from HKD 36,506,000 in 2021, reflecting a growth of 4.3%[28] - The company invested approximately HKD 47,259,000 in acquiring cutting-edge technology machinery and incurred research and development costs of approximately HKD 40,096,000, totaling about 3.1% of the company's revenue[82] Corporate Governance and Compliance - The company complied with the corporate governance code as per the listing rules for the year ended December 31, 2022[103] - The audit committee reviewed the group's financial statements for the year ended December 31, 2022, including accounting principles and practices adopted[104] - The company's auditor confirmed that the figures in the preliminary announcement for the year ended December 31, 2022, are consistent with the draft financial statements[105] - The annual results announcement will be published on the Hong Kong Stock Exchange and the company's website[106]

Financial Performance - For the six months ended June 30, 2022, the revenue was approximately HKD 1,428,492,000, a decrease of about HKD 52,733,000 or 3.6% compared to HKD 1,481,225,000 for the same period in 2021[7]. - The gross profit margin for the same period was approximately 48.7%, down from 52.7% in the previous year, with gross profit decreasing by about HKD 84,906,000 or 10.9% to HKD 695,334,000[7]. - EBITDA for the six months ended June 30, 2022, was approximately HKD 215,929,000, a decrease of about HKD 159,266,000 or 42.4% compared to HKD 375,195,000 in the same period of 2021[7]. - The net profit for the same period was approximately HKD 100,443,000, down by about HKD 139,562,000 or 58.1% from HKD 240,005,000 in the previous year[7]. - The basic earnings per share for the six months ended June 30, 2022, was 10.44 HK cents, compared to 25.06 HK cents for the same period in 2021[9]. - The group’s profit before tax for the six months ended June 30, 2022, was HKD 99,851,000, a decrease of 58.4% compared to HKD 240,037,000 for the same period in 2021[126]. Dividends - The board declared an interim dividend of 3.7 HK cents per share for the six months ended June 30, 2022, down from 7.5 HK cents and a special dividend of 5.0 HK cents in the previous year[9]. - The company declared an interim dividend of HKD 0.037 per ordinary share for the six months ended June 30, 2022, compared to HKD 0.075 and a special dividend of HKD 0.050 for the same period in 2021[72]. - The company declared a dividend of HKD 42,105,000 for the period, compared to HKD 66,986,000 in the previous year[107]. Market Performance - The fixed dental prosthetics segment generated revenue of approximately HKD 924,056,000, accounting for 70.5% of total group revenue, a decrease of HKD 57,964,000 compared to the same period in 2021[18]. - The removable dental prosthetics segment recorded revenue of approximately HKD 262,289,000, representing 20.0% of total group revenue, an increase of HKD 2,663,000 compared to the same period in 2021[19]. - The other dental equipment segment generated revenue of approximately HKD 124,752,000, accounting for 9.5% of total group revenue, a decrease of HKD 16,147,000 compared to the same period in 2021[20]. - Revenue from the European market was approximately HKD 616,430,000, a decrease of HKD 25,760,000 compared to the same period in 2021, accounting for 43.2% of total group revenue[29]. - Revenue from the North American market contributed approximately HKD 291,478,000, an increase from HKD 286,072,000 in the same period in 2021[30]. - The Greater China market generated revenue of approximately HKD 319,239,000, a decrease of about HKD 12,638,000 or 3.8% compared to the same period in 2021[32]. Operational Challenges - The company experienced significant impacts from COVID-19, including temporary shutdowns of major production facilities in Shenzhen and Dongguan during the first quarter of 2022[9]. - The gross profit margin decreased by approximately 4.0 percentage points compared to the same period in 2021, primarily due to lower capacity utilization during the production suspension in mainland China[39]. - The group faces various business risks, including global economic fluctuations and potential impacts from the COVID-19 pandemic on operational performance[64]. Strategic Initiatives - The company continues to invest in strategic projects, including establishing a production facility in Vietnam and expanding its clear aligner business[9]. - The group aims to leverage the digitalization trend in the dental industry, having established itself as a pioneer in providing comprehensive digital solutions[29]. - The group aims to strengthen its position as a leading dental equipment supplier through acquisitions, natural growth, and new product introductions, including its own clear aligners[37]. Financial Position - Cash flow from operating activities was HKD 56,923,000, significantly lower than HKD 246,840,000 for the same period in 2021[53]. - The company’s cash and cash equivalents balance as of June 30, 2022, was approximately HKD 384,534,000, down from HKD 633,157,000 at the end of 2021[52]. - The group's capital expenditure for the review period was approximately HKD 101,211,000, primarily for expanding production facilities, including a factory in Dongguan, China, costing about HKD 58,000,000[57]. - As of June 30, 2022, the group's bank borrowings were approximately HKD 592,316,000, down from HKD 673,062,000 as of December 31, 2021[57]. - The group's debt ratio was approximately 23% as of June 30, 2022, compared to 18% as of December 31, 2021, indicating a stable financial position[57]. Employee and Management - The total employee cost, including salaries for directors and senior management, was approximately HKD 703,475,000, an increase from HKD 644,434,000 for the same period in 2021[75]. - The company employed a total of 6,835 full-time employees as of June 30, 2022, up from 6,596 as of December 31, 2021[75]. - Total remuneration paid to key management personnel for the six months ended June 30, 2022, was HKD 25,522,000, an increase from HKD 22,257,000 in the same period of 2021[163]. Acquisitions and Investments - The acquisition of APEX DIGITAL DENTAL SDN BHD was completed on January 1, 2022, for an initial total purchase price of approximately 2,073,000 MYR, with potential adjustments based on performance[148]. - APEX DIGITAL contributed revenue of 3,923,000 HKD and a profit of 1,098,000 HKD to the group for the six months ended June 30, 2022[151]. - The company made an investment of HKD 817,000 in acquiring a subsidiary during the period[107]. Risk Management - The company closely monitors foreign exchange risks, particularly with currencies such as RMB, EUR, AUD, and USD, to maintain acceptable risk levels[68]. - The company has a broad customer base for trade receivables, which mitigates the concentration of credit risk[69]. - The company maintains a strict monitoring process for overdue receivables, with senior management regularly reviewing outstanding balances[133].

Financial Performance - The group's revenue for the year ended December 31, 2021, was approximately HKD 2,955,172,000, an increase of 34.9% compared to HKD 2,190,208,000 in 2020[14] - The gross profit margin for the year was approximately 52.5%, up from 49.8% in 2020, with gross profit increasing by 42.3% to approximately HKD 1,550,651,000[14] - EBITDA for the year was approximately HKD 626,393,000, representing a 41.5% increase from HKD 442,551,000 in 2020[14] - Net profit for the year was approximately HKD 360,375,000, a significant increase of 234.7% compared to HKD 107,659,000 in 2020[14] - The company's revenue for the year ended December 31, 2021, was HKD 2,955,172,000, representing a 34.9% increase compared to 2020 and a 23.2% increase compared to 2019[16] - Gross profit for the same period was HKD 1,550,651,000, with a gross margin of 52.5%, up from 49.8% in 2020[16] - Net profit surged to HKD 360,375,000, a 234.7% increase from 2020, resulting in a net profit margin of 12.2%[16] - The profit attributable to owners for the year ended December 31, 2021, was approximately HKD 360,825,000, an increase of about 234.8% compared to HKD 107,763,000 for the same period in 2020[46] - The EBITDA for the year ended December 31, 2021, was HKD 626,393,000, compared to HKD 442,551,000 for 2020, reflecting a significant increase[49] - The adjusted EBITDA for the year ended December 31, 2021, was HKD 628,686,000, with an adjusted EBITDA margin of 21.3%, up from 20.4% in 2020[49] Market Performance - Revenue growth in key markets for 2021 included Europe at 36.9%, North America at 25.8%, Greater China at 42.9%, and Australia at 30.0%[14] - The fixed dental prosthetics segment generated revenue of HKD 1,935,951,000, accounting for 70.2% of total revenue, despite a slight decrease from 72.6% in 2020[20] - The removable dental prosthetics segment reported revenue of HKD 537,414,000, which is a 24.9% increase from 2020[21] - Other dental equipment revenue reached HKD 285,083,000, marking a significant increase of 69.3% compared to the previous year[22] - Revenue from the European market was HKD 1,254,596,000, reflecting a 4.0% currency change compared to 2020, while North America contributed HKD 718,776,000[17] - The Greater China market achieved revenue of approximately HKD 699,246,000 in 2021, an increase of about HKD 210,012,000 compared to 2020, making up about 23.7% of total revenue[32] - The sales of intraoral scanners in Europe increased by 106% during the reporting period, driven by rising consumer spending on dental specialty treatments[29] - The North American market's revenue growth of approximately 25.8% in 2021 was attributed to the economic recovery and increased demand for dental products[30] Strategic Initiatives - The company plans to strengthen its global position through strategic partnerships, acquisitions, and joint ventures to expand its distribution and sales network[10] - The company plans to continue expanding its sales and distribution network across Europe, North America, Greater China, Australia, and other regions to maintain its leading position in the dental industry[26] - The company plans to expand its product offerings in the Greater China market, including mid-range products and dental implants[32] - The company is actively seeking global opportunities for market expansion beyond its existing production bases[67] - The company is considering strategic acquisitions to enhance its product offerings, with a target of acquiring at least one company by the end of 2022[76] Financial Management - Selling and distribution expenses rose by approximately 43.0% to HKD 359,466,000, accounting for about 12.2% of total revenue[39] - Administrative expenses increased by approximately 25.5% to HKD 697,311,000, representing about 23.6% of total revenue[40] - Financing costs decreased by approximately 31.6% to HKD 23,061,000, accounting for about 0.8% of total revenue[43] - The company recorded a significant increase in other operating expenses, rising approximately 3,288.1% to HKD 19,075,000, primarily due to foreign exchange losses[42] - The company reported a net cash outflow from financing activities of approximately HKD 452,117,000 for the year ended December 31, 2021, primarily due to bank loan repayments and dividend payments[54] - The cash and cash equivalents balance as of December 31, 2021, was approximately HKD 633,157,000[51] - The company's distributable reserves amounted to approximately HKD 494,007,000, an increase from HKD 416,626,000 in 2020[96] - The company's share premium account was approximately HKD 489,094,000 as of December 31, 2021, down from HKD 566,614,000 in 2020[96] Employee and Management - As of December 31, 2021, the company employed a total of 6,596 full-time employees, an increase from 5,838 in 2020, with 4,777 in production roles[71] - The total employee cost for the year ended December 31, 2021, was approximately HKD 1,322,111,000, up from HKD 1,005,405,000 in 2020[71] - The management team emphasizes the importance of sustainability initiatives, planning to reduce carbon emissions by 30% by 2025[79] - The management team is committed to competitive compensation packages to retain employees, including salaries, discretionary bonuses, and benefits[71] Governance and Compliance - The board of directors consists of 11 members, including 7 executive directors and 4 independent non-executive directors[72] - The company has established a remuneration committee to formulate salary policies based on the qualifications, positions, and seniority of directors and senior management[104] - The company has established three committees: Audit Committee, Compensation Committee, and Nomination Committee, to oversee specific aspects of its affairs[152] - The Audit Committee's responsibilities include reviewing financial controls, risk management, and the effectiveness of internal controls[153] - The company has implemented control procedures to strictly prohibit unauthorized access to and use of insider information[166] Risk Management - The group faces various business risks and uncertainties that may significantly impact its financial condition and operating performance[64] - The group has engaged legal and financial advisors for due diligence on significant acquisitions to mitigate associated risks[66] - The company continues to monitor foreign exchange risks closely, particularly with currencies such as RMB, EUR, AUD, and USD[69] - The board is responsible for evaluating and determining the nature and extent of risks associated with achieving the company's strategic objectives[164] Future Outlook - The company provided a positive outlook for 2022, projecting a revenue growth of 10% to 12%[77] - New product launches are expected to contribute an additional 5% to revenue in the upcoming fiscal year[78] - The company has outlined a positive outlook for the next fiscal year, projecting a revenue growth of 10-15% driven by new product launches and market expansion strategies[82] - Future guidance includes maintaining a strong focus on customer satisfaction, with a target of achieving a Net Promoter Score (NPS) of over 70 by the end of 2022[84]

Financial Performance - For the six months ended June 30, 2021, the revenue was approximately HKD 1,481,225,000, an increase of about HKD 584,002,000 or 65.1% compared to the same period in 2020[6]. - The net profit for the same period was approximately HKD 240,005,000, a significant increase from a net loss of HKD 139,502,000 in 2020[6]. - Gross profit for the six months ended June 30, 2021, was approximately HKD 780,240,000, an increase of about 88.5% compared to the same period in 2020, with a gross margin of 52.7%[34]. - The company reported a profit attributable to ordinary equity holders of HKD 240,037,000 for the six months ended June 30, 2021, compared to a loss of HKD 139,354,000 for the same period in 2020[137]. - The total comprehensive income for the period was HKD 214,050,000, reflecting a significant recovery from the previous year's loss[107]. Revenue Growth by Region - Revenue from the European market grew by 66.9%, North America by 50.5%, Greater China by 74.5% (with mainland China growing by 113.2%), and Australia by 71.2%[8]. - Revenue from the European market was approximately HKD 596,970,000, an increase of about HKD 233,271,000 compared to the six months ended June 30, 2020, accounting for 43.4% of total group revenue[24]. - The North American market generated revenue of approximately HKD 358,795, with a natural growth rate of 49.3% compared to the previous year[22]. - The Greater China market recorded revenue of approximately HKD 304,613,000 for the six months ended June 30, 2021, an increase of about HKD 130,171,000 compared to the same period in 2020[28]. - The revenue from the Australian market for the six months ended June 30, 2021, was approximately HKD 116,271,000, an increase of about HKD 42,314,000 compared to the same period in 2020[29]. Operational Efficiency - EBITDA for the six months ended June 30, 2021, was approximately HKD 375,195,000, an increase of about HKD 267,704,000 or 249.0% compared to the previous year[6]. - The EBITDA margin for the six months ended June 30, 2021, was 25.3%, compared to 12.0% in 2020, reflecting a significant improvement in operational efficiency[8]. - The profit from core operations was approximately HKD 240,005,000, a dramatic increase of 1,553.2% compared to HKD 14,518,000 in the same period of 2020[8]. - Cash generated from operating activities for the six months ended June 30, 2021, was approximately HKD 246,840,000, significantly up from HKD 77,313,000 in the previous year[50]. - Operating cash flow for the period was HKD 267,890,000, a substantial increase from HKD 74,701,000 in the prior year, reflecting improved operational efficiency[111]. Dividends and Shareholder Returns - The company declared a special dividend of HKD 0.05 per share and an interim dividend of HKD 0.075 per share for the six months ended June 30, 2021[6]. - The interim dividend declared was HKD 71,968,000, with a special dividend of HKD 47,979,000, marking a significant increase from no dividends declared in the same period of 2020[139]. - The company repurchased 3,286,000 shares at a total cost of approximately HKD 7,896,000 during the six months ended June 30, 2021[91]. Cost Management - Sales and distribution expenses increased by approximately 60.9% to HKD 160,002,000, accounting for about 10.8% of total revenue, compared to 11.1% in the same period of 2020[35]. - Administrative expenses rose by approximately 15.2% to HKD 318,024,000, representing 21.5% of total revenue, down from 30.8% in the previous year, due to increased labor costs and reduced government subsidies[36]. - The company incurred financing costs of HKD 11,584,000, down from HKD 19,814,000 in the previous year, reflecting improved financial management[101]. Investment and Expansion - The company has committed to invest no less than RMB 246,000,000 (approximately HKD 295,645,000) for land acquisition and factory construction in Dongguan[60]. - The group completed the acquisition of Swift Dental Laboratory for AUD 800,000 and contingent consideration of AUD 500,000, enhancing its presence in the Australian market[63]. - The company plans to expand its product offerings in Greater China, including mid-range products and a digital dental platform in Hong Kong[28]. Employee and Labor Costs - As of June 30, 2021, the company employed a total of 6,277 full-time employees, an increase from 5,838 employees as of December 31, 2020[76]. - The total employee cost for the six months ended June 30, 2021, was approximately HKD 644,434,000, compared to HKD 467,513,000 for the same period in 2020[76]. - The total short-term employee benefits for the six months ended June 30, 2021, amounted to HKD 21,243,000, an increase of 38.3% compared to HKD 15,380,000 for the same period in 2020[174]. Financial Position and Assets - As of June 30, 2021, total assets less current liabilities amounted to HKD 3,042,493,000, a decrease from HKD 3,063,835,000 as of December 31, 2020, representing a decline of approximately 0.7%[105]. - The company's net assets increased to HKD 2,395,653,000 from HKD 2,256,517,000, marking an increase of approximately 6.2%[105]. - Trade receivables rose to HKD 553,091,000, up from HKD 473,105,000, indicating a growth of about 16.9%[30]. - Cash and cash equivalents decreased to HKD 648,350,000 from HKD 697,827,000, a decline of approximately 7.1%[30]. Risk Management - The group faces various business risks, including the impact of the global COVID-19 pandemic on its financial performance and operational results[65]. - The company continuously monitors foreign exchange risks, particularly with currencies such as RMB, Euro, AUD, and USD, to maintain acceptable risk levels[69]. - The company has established a new production facility in Vietnam to reduce reliance on existing facilities in Shenzhen and Dongguan, China, which poses a risk of operational disruption[67].

Financial Performance - In 2020, the company achieved a revenue growth of 7% in the second half compared to the same period in 2019, driven by strong performance in the European and Australian markets, which saw sales increases of 13.3% and 21.2% respectively[5]. - The company's EBITDA and profit from core operations in the second half of 2020 increased by 69.8% and 179.0% respectively compared to the same period in 2019[5]. - The total revenue for the group for the year ended December 31, 2020, was HKD 2,100,225,000, a decrease from HKD 2,346,248,000 in 2019[20]. - The group reported a net loss of approximately HKD 98,413,000 in North America for the year ended December 31, 2020, compared to a profit of HKD 638,000 in 2019, primarily due to a one-time non-cash goodwill impairment of HKD 150,132,000[25]. - Net profit for the year was approximately HKD 107,659,000, a decrease of about 32.9% from HKD 160,445,000 in the previous year, primarily due to the aforementioned impairment loss[46]. - The company reported a significant goodwill impairment of HKD 150,132 in 2020, which was not present in 2019[195]. - The company’s revenue for 2020 was HKD 2,190,208, a decrease of 8.7% compared to HKD 2,399,548 in 2019[195]. - Gross profit for 2020 was HKD 1,089,988, down from HKD 1,152,931 in 2019, reflecting a decline of 5.5%[195]. - The net profit for the year was HKD 107,659, a decrease of 33.0% from HKD 160,445 in 2019[197]. Market Performance - The European market contributed 41.9% of total revenue in 2020, up from 39.9% in 2019, solidifying its position as the largest market for the company[6]. - The North American market, despite challenges from COVID-19, contributed an adjusted EBITDA of HKD 46.6 million, indicating strong performance under difficult conditions[6]. - The company reported a strong rebound in the mainland China market, with sales growth of approximately 7.2% in Q4 2020 compared to the same period in 2019[6]. - The group experienced a net loss of approximately HKD 98,413,000 in North America for the year ended December 31, 2020, compared to a profit of HKD 638,000 in 2019, primarily due to a one-time non-cash goodwill impairment of HKD 150,132,000[25]. - The Greater China market experienced a sales increase of approximately 7.2% in Q4 2020 compared to Q4 2019, indicating a strong recovery despite the pandemic[29]. Cost Management - The company implemented significant cost control measures during the pandemic, including recruitment freezes and voluntary unpaid leave, which helped reduce operating costs substantially[27]. - Selling and distribution expenses decreased by approximately 14.6% to about HKD 251,410,000, representing 11.5% of the group's revenue, down from 12.3% the previous year[40]. - Administrative expenses decreased by approximately 9.7% to about HKD 555,817,000, accounting for 25.4% of revenue, compared to 25.7% the previous year[41]. - The group has initiated cost-cutting measures in response to the adverse impacts of the COVID-19 pandemic, including salary reductions and deferred marketing expenses[66]. Strategic Initiatives - The company plans to expand its global presence through acquisitions, joint ventures, and partnerships to enhance its product distribution and sales network[6]. - The group aims to capitalize on the accelerated digitalization trend in the dental industry, having established itself as a pioneer in providing comprehensive digital solutions[23]. - The company plans to expand its product offerings in Greater China, including mid-range products and digital dental platforms, to strengthen its market position[29]. - The company is expanding its market presence in Southeast Asia, with plans to open E new locations by the end of the fiscal year[89]. - A strategic acquisition was completed, allowing the company to integrate F technology, which is anticipated to improve operational efficiency and product offerings[90]. Financial Position - The company’s cash and cash equivalents as of December 31, 2020, amounted to approximately HKD 697,827,000, primarily denominated in HKD, RMB, USD, EUR, and AUD[53]. - The company’s bank borrowings increased to approximately HKD 860,743,000 as of December 31, 2020, compared to HKD 802,348,000 as of December 31, 2019[60]. - The debt ratio as of December 31, 2020, was approximately 22%, down from 30% in 2019, indicating a stronger financial position[61]. - The company has committed to invest at least RMB 246 million (approximately HKD 292.29 million) in land acquisition and factory construction in Dongguan[63]. - The company’s total assets, liabilities, and non-controlling interests for the past five fiscal years are summarized in the annual report on page 153[104]. Governance and Compliance - The board of directors consisted of 11 members, including 7 executive directors and 4 independent non-executive directors as of December 31, 2020[76]. - The company has established three committees: audit committee, remuneration committee, and nomination committee to oversee specific aspects of its affairs[160]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[154]. - The company has complied with all applicable principles and code provisions of the corporate governance code during the reporting year[148]. - The company has established arrangements for employees to confidentially raise potential issues regarding financial reporting and internal controls[172]. Employee Relations - As of December 31, 2020, the group employed a total of 5,838 full-time employees, a decrease from 6,139 in 2019[74]. - The total employee cost for the year ended December 31, 2020, was approximately HKD 1,005,405,000, down from HKD 1,164,830,000 in 2019, reflecting a reduction of about 13.7%[74]. - The group maintained stable relationships with employees, with no significant strikes or labor disputes affecting business activities during the year[74]. - The company has a competitive compensation policy to retain employees, including salaries, discretionary bonuses, and contributions to benefit plans[74]. Research and Development - The company has been focusing on research, design, and development in denture-related production technologies, leveraging over 30 years of experience in the field[78]. - Research and development expenses increased by H%, reflecting the company's commitment to innovation and product enhancement[91]. Shareholder Engagement - The company reported a proposed final dividend of HKD 0.07 per share for the year ended December 31, 2020, compared to HKD 0.022 in 2019, reflecting a significant increase[102]. - The board will review the dividend policy based on financial performance, shareholder equity, and capital requirements, among other factors[183]. - The company maintains ongoing communication with shareholders, particularly through annual general meetings[182].

Revenue Performance - For the six months ended June 30, 2020, Modern Dental Group reported total revenue of approximately HKD 859,890,000, a decrease of about 26.5% compared to HKD 1,171,146,000 for the same period in 2019[20]. - Total revenue for the group was approximately HKD 897,223,000, a decrease of about 24.7% compared to HKD 1,191,378,000 for the six months ended June 30, 2019, mainly due to reduced sales orders affected by COVID-19 and currency depreciation[31]. - Revenue from the European market was approximately HKD 363,699,000, a decrease of about HKD 100,559,000 compared to the six months ended June 30, 2019, accounting for 42.9% of total group revenue[22]. - The North American market revenue decreased by 33.0% to HKD 240,286,000 from HKD 358,651,000 in the previous year[20]. - The Greater China market recorded revenue of approximately HKD 174,442,000, a decrease of about HKD 67,143,000 compared to the six months ended June 30, 2019, accounting for 21.2% of total group revenue[27]. Segment Performance - The fixed dental materials segment generated revenue of approximately HKD 626,175,000, accounting for about 72.8% of total revenue, down from 71.7% in the previous year[11]. - The removable dental materials segment recorded revenue of approximately HKD 162,602,000, representing 18.9% of total revenue, down from 19.1% in the previous year[12]. - Revenue from other dental materials was approximately HKD 71,113,000, accounting for 8.3% of total revenue, down from 9.2% in the previous year[13]. Market Impact - The company experienced a natural growth rate decline of 23.9% in the Greater China market, with revenue of HKD 174,442,000 compared to HKD 241,585,000 in 2019[20]. - The North American operations experienced a significant decline from mid-March to late May 2020 due to COVID-19, leading to a one-time non-cash impairment loss of approximately HKD 150,132,000[25]. - The European market saw a recovery in sales in June 2020 compared to June 2019, driven by deferred sales orders accumulated during the lockdown[22]. Financial Performance - The company reported a decrease in sales orders due to COVID-19, with the Euro depreciating by 3.6% against the HKD during the six months ended June 30, 2020[22]. - Gross profit for the six months ended June 30, 2020, was approximately HKD 414,023,000, a decrease of about 27.4% compared to HKD 570,023,000 for the same period in 2019, with a gross margin of 46.1%[33]. - The company's profit turned into a loss of approximately HKD 139,502,000 for the six months ended June 30, 2020, compared to a profit of approximately HKD 86,960,000 for the same period in 2019, primarily due to a one-time non-cash impairment loss of goodwill in North America of approximately HKD 150,132,000 and a 24.7% decrease in sales orders due to the COVID-19 pandemic[41]. - The adjusted EBITDA for the six months ended June 30, 2020, was HKD 111,379,000, down from HKD 195,859,000 in the same period of 2019, reflecting a decrease in the adjusted EBITDA margin from 16.4% to 12.4%[45]. Cost Management - The company has implemented significant cost control measures, including hiring freezes and voluntary unpaid leave, to manage the impact of COVID-19[25]. - Sales and distribution expenses decreased by about 25.0% to approximately HKD 99,468,000, consistent with the reduction in sales[34]. - Administrative expenses decreased by about 11.0% to approximately HKD 275,973,000, accounting for about 30.8% of total revenue[35]. Cash Flow and Financing - Net cash flow from operating activities for the six months ended June 30, 2020, was approximately HKD 77,313,000, a decrease from HKD 109,360,000 for the same period in 2019, primarily due to the impact of the COVID-19 pandemic[46]. - The company recorded a net cash outflow of approximately HKD 23,647,000 from investing activities, mainly for upgrading computer-aided manufacturing equipment[47]. - The company had bank loans of approximately HKD 823,300,000 as of June 30, 2020, compared to approximately HKD 802,348,000 as of December 31, 2019[47]. Shareholder Information - The company has not declared an interim dividend for the six months ending June 30, 2020, compared to 3.1 HK cents for the same period in 2019[61]. - The company aims to enhance shareholder value through share repurchase programs authorized by shareholders[82]. - The total number of shares that can be issued under the share option plan is capped at 100,000,000 shares, representing 10.4% of the company's issued share capital as of the mid-term report date[66]. Employee and Management - As of June 30, 2020, the company had a total of 5,541 full-time employees, a decrease from 6,139 employees as of December 31, 2019[62]. - The company maintains a competitive compensation package to retain employees, including salaries, discretionary bonuses, and benefits contributions[62]. - The total remuneration for key management personnel increased from HKD 15,717,000 to HKD 16,321,000, representing a growth of about 3.8%[176]. Goodwill and Impairment - A one-time non-cash impairment loss of approximately HKD 150,132,000 was recorded for goodwill related to North American cash-generating units due to the ongoing impact of COVID-19[36]. - The group's goodwill carrying amount as of June 30, 2020, was HKD 1,152,982,000, down from HKD 1,310,846,000 as of December 31, 2019[114]. - The company incurred a significant goodwill impairment of HKD 150,132,000 during the period, which was not present in the previous year[102]. Future Outlook - The company aims to enhance its educational platform and expand its product offerings in the Greater China region to support long-term growth[27]. - The group expects stable long-term demand for dentures due to the increasing global population and aging demographics, despite short-term challenges posed by COVID-19[31]. - The company has strategically started establishing a production facility in Vietnam to mitigate potential risks from ongoing trade tensions[25].

Financial Performance - Modern Dental Group achieved record revenue of approximately $300 million for the year ended December 31, 2019, marking a significant milestone for the company[7]. - Total revenue for the year ended December 31, 2019, was HKD 2,399,548,000, an increase of about 3.6% from HKD 2,315,467,000 in the previous year[32]. - Gross profit for the year ended December 31, 2019, was approximately HKD 1,152,931,000, an increase of about 6.8% compared to the previous year[33]. - Net profit for the year increased by approximately 92.7% from HKD 83,240,000 in 2018 to HKD 160,445,000 in 2019, driven by strategic product promotion and improved gross margins[41]. - Profit attributable to owners of the company rose by approximately 89.2% from HKD 85,391,000 in 2018 to HKD 161,557,000 in 2019, reflecting the same strategic improvements[42]. - Adjusted EBITDA for 2019 was HKD 394,797,000, up from HKD 277,009,000 in 2018, with an adjusted EBITDA margin of 16.5% compared to 12.0% in the previous year[45]. - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion for the fiscal year 2019, representing a growth of 15% compared to the previous year[73]. - The company reported a net profit margin of 25% for 2019, reflecting effective cost management and operational efficiency[80]. Revenue Breakdown - The fixed dental materials segment generated revenue of approximately HKD 1,682,419,000, accounting for 71.7% of total revenue, a slight decrease from 72.5% in the previous year[17]. - The removable dental materials segment reported revenue of approximately HKD 460,099,000, representing 19.6% of total revenue, with a growth of approximately HKD 8,795,000 compared to the previous year[18]. - Other dental materials, including orthodontic products, generated revenue of approximately HKD 203,730,000, which is an increase of approximately HKD 24,602,000, accounting for 8.7% of total revenue[18]. - Revenue from the European market was approximately HKD 919,271,000, representing a year-on-year increase of HKD 7,099,000[26]. - Revenue from the North American market contributed approximately HKD 560,122,000, up from HKD 500,601,000 in 2018[27]. - The Greater China market recorded revenue of HKD 512,299,000, a significant increase of 14.2% year-on-year[23]. - The Australian market revenue was HKD 198,762,000, reflecting a decrease of 7.0% due to currency fluctuations[23]. Strategic Initiatives - The company plans to expand its distribution network and sales through strategic acquisitions and partnerships to strengthen its global market position[8]. - Modern Dental Group is focusing on enhancing service quality by establishing new customer centers and expanding its presence in second- and third-tier cities in mainland China[8]. - The company aims to introduce new products, particularly in the orthodontic category, while maintaining cost-effectiveness and prudent expense control[8]. - The company is actively seeking acquisition or strategic cooperation opportunities in the Greater China region to expand its market presence[29]. - The company plans to enhance its product offerings and local services in Europe to attract new customers and stimulate growth[26]. - The company is exploring potential mergers and acquisitions to enhance its service offerings and market share, with a focus on strategic partnerships in the dental technology sector[78]. Market Outlook - The board anticipates stable global demand for dental prosthetics, driven by population growth and aging demographics, despite potential short-term economic challenges in 2020[59]. - The COVID-19 pandemic is expected to have at least a short-term negative impact on the global economic environment, potentially affecting the group's revenue and profit in the first half of 2020[60]. - The company has outlined its future outlook, projecting a revenue growth of 10% for the next fiscal year, aiming to reach HKD 1.32 billion[80]. Operational Efficiency - Selling and distribution expenses increased to approximately HKD 294,352,000, up about 7.0% from HKD 275,142,000, accounting for approximately 12.3% of total revenue[36]. - Administrative expenses decreased to approximately HKD 615,725,000, down about 2.4% from HKD 630,558,000, accounting for approximately 25.7% of total revenue[37]. - Financing costs decreased by approximately 26.4% from HKD 51,516,000 in 2018 to HKD 37,902,000 in 2019, representing 1.6% of the group's revenue compared to 2.2% in the previous year[39]. - The company has established a risk management and internal control system to manage significant risks associated with achieving its business objectives[154]. Corporate Governance - The board consists of 11 directors, including 7 executive directors and 4 independent non-executive directors[137]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee to oversee specific aspects of the company's affairs[144]. - The independent non-executive directors confirmed that the ongoing related party transactions were conducted in the ordinary course of business and on normal commercial terms[125]. - The company has complied with all applicable principles and code provisions of the corporate governance code, except for one provision[135]. Shareholder Engagement - The company aims to enhance shareholder value by increasing net asset value per share and earnings per share through share repurchases[118]. - The company declared dividends totaling HKD 44,085,000 for the year, compared to HKD 40,000,000 in 2018, representing a 10.2% increase[187]. - The company has a shareholder communication policy to ensure that shareholder opinions and concerns are properly addressed[159]. Research and Development - Investment in research and development has increased by 25%, focusing on innovative dental technologies and materials to enhance product offerings[76]. - The management team emphasizes a commitment to sustainability, with plans to reduce operational carbon footprint by 20% by 2025[75]. Employee and Operational Metrics - As of December 31, 2019, the company employed a total of 6,139 full-time employees, including 4,552 production staff, 521 general management staff, and 361 customer service staff[68]. - The company has a diversified customer base, reducing the concentration of credit risk, as it only transacts with reputable third parties[67].