Financial Performance - Revenue increased by 49.0% to approximately HK$890.6 million for the six months ended 30 June 2022, compared to approximately HK$597.6 million for the same period in 2021[8]. - Gross profit rose by 75.9% to approximately HK$198.4 million, up from approximately HK$112.8 million in the prior year[8]. - Gross profit margin improved by 3.4 percentage points to 22.3%, compared to 18.9% for the six months ended 30 June 2021[8]. - Operating profit was approximately HK$39.1 million, a significant recovery from an operating loss of approximately HK$47.4 million in the same period last year[8]. - Profit attributable to owners of the Company was approximately HK$28.1 million, reversing from a loss of approximately HK$46.9 million for the six months ended 30 June 2021[8]. - Basic and diluted earnings per share for the six months ended 30 June 2022 were HK3.9 cents, compared to a loss of HK6.4 cents per share in the prior year[20]. - Total comprehensive income for the period was HK$14,226,000, a recovery from a loss of HK$44,881,000 in 2021[121]. - Net cash generated from operating activities was HK$29,860,000, a turnaround from a net cash used of HK$11,777,000 in 2021[125]. Revenue Breakdown - The hospitality supplies business generated revenue of approximately HK$654.2 million, representing 73.5% of total revenue, while the OS&E business and health care products contributed HK$70.6 million (7.9%) and HK$165.8 million (18.6%) respectively[15]. - Revenue from the hospitality supplies business increased by 46.1% to approximately HK$654.2 million for the six months ended June 30, 2022, contributing 73.5% to the Group's total revenue[43]. - Revenue from the health care and hygienic products business for the six months ended June 30, 2022, was approximately HK$165.8 million, a 114.5% increase from approximately HK$77.2 million for the same period in 2021, contributing 18.6% to the Group's total revenue[54]. - Revenue from the OS&E business was approximately HK$70.6 million, a decrease of 2.9% compared to HK$72.7 million for the same period in 2021, representing 7.9% of the Group's total revenue[46]. Dividends and Shareholder Information - An interim dividend of HK1.0 cent per share was declared for the six months ended 30 June 2022, while no interim dividend was declared for the same period in 2021[8]. - The Company has declared an interim dividend of HK$0.01 per Share for the six months ended 30 June 2022, with payment expected around 3 October 2022[109]. - As of June 30, 2022, Prosper Well International Limited held 165,166,600 shares, representing approximately 22.49% of the total issued shares of 734,262,697[79]. - The Chings Family collectively held 228,113,200 shares, which is approximately 31.07% of the entire issued share capital as of June 30, 2022[1]. Assets and Liabilities - As of June 30, 2022, the Group's cash and cash equivalents amounted to approximately HK$241.7 million, down from HK$251.2 million as of 31 December 2021[20]. - Total assets as of June 30, 2022, amounted to HK$1,669,958,000, a decrease from HK$1,738,724,000 as of December 31, 2021[116]. - Total liabilities as of June 30, 2022, were HK$563,431,000, down from HK$644,278,000 as of December 31, 2021[119]. - Current liabilities decreased to HK$538,897,000 from HK$621,704,000[119]. Cost Management and Operational Efficiency - The Group has implemented various measures to tighten cost control and focus on higher profit margin products, contributing to improved financial performance[16]. - The Group will implement prudent and flexible policies related to working capital management and cost control to strengthen financial conditions and improve profit margins[67]. - The overall performance indicates a strategic shift towards improving operational efficiency and cost management in response to market challenges[180]. Market and Business Strategy - The Group continues to focus on the health care and hygienic products market, producing high-quality products to meet increasing demand in the post-pandemic era[49]. - The Group aims to enhance research and development in health care and hygiene products to enrich product categories and improve market competitiveness[58]. - The Group plans to strengthen production capacity in Cambodia and expects to launch liquid product production lines in the second half of 2022 to meet the growing demand in Southeast Asia[57]. - The Group is actively exploring demand for OS&E in different regional markets and adding new product categories to enhance business coverage[48]. Financial Risks and Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[137]. - The Group's liquidity risk management has not changed since the year-end[145]. - The Group's finance department includes a team that performs valuations of financial assets and liabilities required for financial reporting purposes[145]. Corporate Governance - The Board has not appointed a chief executive officer, with responsibilities performed collectively by all Executive Directors, which the Board believes benefits continuity of policies and strategies[98]. - The Company complied with all provisions of the Corporate Governance Code, except for the appointment of a chief executive officer and the absence of the Chairman at the annual general meeting[98][99].

Financial Performance - Revenue increased by 6.1% to approximately HK$1,435.8 million (2020: HK$1,353.1 million) [9] - Gross profit decreased by 25.8% to approximately HK$269.6 million (2020: HK$363.5 million) [10] - Operating loss was approximately HK$92.4 million (2020: operating profit of approximately HK$102.2 million) [12] - Loss attributable to owners of the Company was approximately HK$93.5 million (2020: profit of approximately HK$79.0 million) [12] - Revenue for the year 2021 was HK$1,435,826, a decrease of 6.1% compared to 2020's revenue of HK$1,353,099 [1] - Profit for the year 2021 was a loss of HK$97,925, compared to a profit of HK$74,600 in 2020 [1] - Total assets as of December 31, 2021, were HK$1,738,724, a decrease from HK$1,803,435 in 2020 [1] - Total equity for 2021 was HK$1,094,446, down from HK$1,192,334 in 2020 [1] - The company faced challenges in 2021 due to the COVID-19 pandemic, trade tensions, and increased production costs [29] Dividends - No final dividend was recommended for the year ended December 31, 2021, and no interim dividend was declared during the six months ended June 30, 2021 [13] - The Group has suspended dividend payments for the year ended 31 December 2021, compared to a dividend of 2.5 HK cents per share in 2020, representing a 100% decrease [40] - The Board did not propose a final dividend for the year ended 31 December 2021, compared to a final dividend of HK1.5 cents per Share for the year ended 31 December 2020 [56] Revenue Breakdown - Revenue contributions from the hospitality supplies business, OS&E business, and health care and hygienic products business were approximately HK$1,088.1 million, HK$156.4 million, and HK$191.3 million, representing 75.8%, 10.9%, and 13.3% of total revenue respectively [42] - Revenue from the Group's hospitality supplies business increased by 32.5% to approximately HK$1,088.1 million for the year ended December 31, 2021, contributing 75.8% to the Group's total revenue [85] - Revenue from the Group's OS&E business was approximately HK$156.4 million for the year ended December 31, 2021, representing an increase of 38.5% compared to approximately HK$112.9 million for the year ended December 31, 2020 [99] - Revenue from the Group's health care and hygienic products business for the year ended 31 December 2021 was approximately HK$191.3 million, a decline from approximately HK$419.3 million in 2020, contributing 13.3% to the Group's total revenue [110] Profitability Metrics - Gross profit margin decreased by 8.1 percentage points to 18.8% (2020: 26.9%) [11] - The gross profit margin decreased by 8.1 percentage points to 18.8% from 26.9% in the prior year due to rising raw material prices and increased manufacturing costs [43] - Basic and diluted loss per share attributable to owners of the Company was (12.8) HK cents for the year ended 31 December 2021, compared to earnings of 10.8 HK cents in 2020, representing a decrease of 218.5% [40] - Gross profit from the hospitality supplies business rose by 13.4% to approximately HK$207.2 million for the year ended December 31, 2021, with a gross profit margin decrease of 3.3 percentage points to 19.0% [85] - Gross profit from the OS&E business increased by 24.0% to approximately HK$37.2 million for the year ended December 31, 2021, with a gross profit margin of 23.8% [99] - Gross profit from the healthcare and hygiene products business was about HKD 25.0 million, down from HKD 147.2 million year-on-year, with a gross margin decline of 22.0 percentage points to 13.1% [115] Market Conditions - Global tourism saw a mild increase in 2021, but remained below pre-pandemic levels of 2019 [29] - The prolonged COVID-19 pandemic has significantly impacted the travel, tourism, and aviation industries, leading to unsatisfactory results for the Group for the year ended December 31, 2021 [85] - The estimated domestic tourists in the PRC were 3.431 billion person-times in 2021, representing a 19% increase compared to 2020 [90] - The tourism revenue in the PRC reached RMB3.02 trillion in 2021, a 35% increase compared to 2020 [90] - The expected number of domestic tourists in China for 2022 is projected to be 3.98 billion person-times, with tourism revenue anticipated to reach RMB 3.81 trillion, reflecting year-on-year growth rates of 16% and 27%, respectively [119] Strategic Initiatives - The Group will continue to diversify its product range and strengthen research and development with new technologies in health care and hygienic products [32] - The Group aims to improve cost efficiency and productivity by utilizing existing production bases to meet market demands [36] - The Group plans to explore new business opportunities to consolidate its business performance in the coming year [36] - The Group aims to enhance competitiveness by developing its production base in Cambodia to reduce production costs and improve production efficiency [122] - The Group plans to expand its healthcare and hygiene products market by diversifying its product portfolio and enhancing sales channels to include business organizations, schools, and hospitals [119] - The Group's strategy includes a series of initiatives to achieve steady innovation and sustainable growth [122] Risks and Compliance - The Group faces risks related to reliance on direct sales customers and distributors for product sales, which may affect business and profitability [157] - Price fluctuations of raw materials may lead to increased production costs, adversely impacting profits if not managed properly [158] - Operational risks include potential defaults by customers and inadequacies in internal processes, which could negatively impact results [159] - Market risks such as currency fluctuations and interest rate volatility are inherent in the Group's business operations [160] - The Group's operations are subject to risks from compliance with laws and regulations, which may lead to significant expenditures or operational disruptions if not adhered to [169] Corporate Governance - The Group has complied with relevant laws and regulations, which significantly impact its operations, and aims to enhance governance and fulfill social responsibilities [170] - The Group maintains strong relationships with employees, customers, and suppliers, providing comprehensive benefits and ensuring quality products and services [178] - All Independent Non-Executive Directors have confirmed their independence as per Rule 3.13 of the Listing Rules [191] - The Group did not issue any shares or debentures during the year ended December 31, 2021 [182] Investments and Acquisitions - The company established a new VIE structure to comply with Cambodian laws, allowing it to control the Landholding Company and enjoy economic benefits from the land and properties [197] - A new loan agreement was signed for an interest-free loan of $2,500,000 to acquire 51% equity interests in the Landholding Company [200] - The local partner transferred 51% equity interests of the Landholding Company to Mr. CHING Tsun Wah, an Executive Director [197] - The new structured documents include various agreements such as the New Shareholders' Agreement and New Share Pledge Agreement [200]

Financial Performance - Revenue decreased by 13.7% to approximately HK$597.6 million compared to HK$692.1 million for the same period in 2020[9] - Gross profit decreased by 41.4% to approximately HK$112.8 million, down from approximately HK$192.6 million in the previous year[10] - Gross profit margin decreased by 8.9 percentage points to 18.9%, compared to 27.8% for the same period in 2020[11] - Operating loss was approximately HK$47.4 million, a decline from an operating profit of approximately HK$63.0 million in the previous year[12] - Loss attributable to owners of the Company was approximately HK$46.9 million, compared to a profit of approximately HK$47.2 million in the same period of 2020[12] - Basic loss per share attributable to owners of the Company was (6.4) HK cents, down from earnings of 6.5 HK cents in the previous year[19] - Total comprehensive loss for the period was HK$44,881, compared to a total comprehensive income of HK$32,517 in 2020[148] - The Company reported a net cash outflow from investing activities of HK$15,611, compared to HK$54,558 in 2020[176] - The company experienced a decrease in profit for the period, reporting a loss of HK$16,302,000[199] Dividend and Shareholder Information - No interim dividend was declared for the six months ended 30 June 2021, compared to HK1.0 cent per share in the same period of 2020[13] - The Board did not recommend any interim dividend for the six months ended June 30, 2021, compared to 1.0 cent per share in the same period last year[32] - The Board intends to balance maintaining sufficient capital for business growth and rewarding shareholders, with future dividend payments subject to Board discretion[139] - The Company reserves the right to change its future dividend payment plans based on various factors including earnings and financial condition[139] Business Strategy and Market Focus - The Company is focusing on improving operational efficiency and exploring new market opportunities to recover from the current financial challenges[17] - Management is committed to enhancing product offerings and investing in technology to drive future growth[17] - The Company plans to expand its market presence in the PRC and other regions to diversify revenue streams[17] - The group anticipates challenges for its hospitality supplies and OS&E businesses due to ongoing uncertainties in the global market, including macroeconomic risks and the effectiveness of vaccines against COVID-19 variants[71] - The group plans to diversify its product range and enhance research and development in health care and hygienic products, targeting expansion into business organizations, schools, and hospitals[73] - The group aims to further develop its "Pasion" brand with high-quality products and services while seeking potential cooperation and business development opportunities[73] - The company is committed to exploring new business opportunities and expanding its product portfolio to diversify daily operations and increase market share[81] Revenue Breakdown by Segment - The hospitality supplies business generated revenue of approximately HK$447.7 million, representing 74.9% of total revenue, while the OS&E and health care businesses contributed HK$72.7 million (12.2%) and HK$77.2 million (12.9%) respectively[20] - Revenue from the hospitality supplies business increased 14.5% to approximately HK$447.7 million for the six months ended 30 June 2021, contributing 74.9% to the Group's total revenue[53] - Revenue from the Group's operating supplies and equipment (OS&E) business increased 54.7% to approximately HK$72.7 million, contributing 12.2% to the Group's total revenue[56] - Revenue from health care and hygienic products was approximately HK$77.2 million, a significant decline from HK$254.2 million in the same period of 2020, contributing 12.9% to total revenue[65] Financial Position and Assets - The Group's cash and cash equivalents as of June 30, 2021, amounted to approximately HK$341.6 million, a decrease from approximately HK$393.0 million as of December 31, 2020[34] - Net assets as of June 30, 2021, were approximately HK$1,136.5 million, down from approximately HK$1,192.3 million as of December 31, 2020[35] - Total assets decreased to HK$1,656,482,000 as of 30 June 2021, down from HK$1,803,435,000 as of 31 December 2020, representing a decline of approximately 8.2%[142] - Total current assets decreased to HK$1,058,563,000 as of 30 June 2021, down from HK$1,192,680,000 as of 31 December 2020, a reduction of about 11.2%[142] - Total liabilities decreased to HK$519,962,000 as of 30 June 2021, compared to HK$611,101,000 as of 31 December 2020, indicating a decrease of approximately 15%[145] - Total equity attributable to owners of the Company was HK$1,181,174,000 as of 30 June 2021, down from HK$1,234,380,000 as of 31 December 2020, reflecting a decline of about 4.3%[145] Employee and Operational Information - The total number of employees as of June 30, 2021, was approximately 4,200, with employee benefit expenses amounting to approximately HK$164.9 million for the six months ended June 30, 2021[81] - The company aims to develop its production base in Cambodia to reduce production costs and improve efficiency, while also implementing prudent policies to strengthen financial conditions and improve profit margins[80] Financial Risks and Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[190] - The Group's finance department includes a team that performs valuations of financial assets and liabilities for reporting purposes[190] - The Group's policy is to recognize transfers into and out of fair value hierarchy levels as of the date of the event or change in circumstances[190] Shareholding and Governance - As of June 30, 2021, the total shareholding of the directors amounted to approximately 29.30% of the issued shares, with significant holdings by Mr. Ching Chi Fai and Mr. Ching Chi Keung[91] - The Company has conditionally adopted a share option scheme on 5 October 2007, with a total of 3,408,000 share options outstanding as of 30 June 2021[117] - The Group has complied with all provisions of the Corporate Governance Code during the reporting period, except for the appointment of a chief executive officer[126] - All Directors confirmed compliance with the Model Code for Directors' securities transactions for the six months ended 30 June 2021[133]

Financial Performance - Revenue decreased by 33.8% to approximately HK$1,353.1 million (2019: approximately HK$2,043.1 million) [11] - Gross profit decreased by 26.8% to approximately HK$363.5 million (2019: approximately HK$496.3 million) [11] - Operating profit is approximately HK$102.2 million (2019: approximately HK$126.4 million) [11] - Profit attributable to owners of the Company is approximately HK$79.0 million (2019: approximately HK$97.9 million) [11] - The Group recorded a total revenue of approximately HK$1,353.1 million for the year ended December 31, 2020, representing a 33.8% year-on-year decrease from approximately HK$2,043.1 million in 2019 [23] - Gross profit for the year ended December 31, 2020, was approximately HK$363.5 million, a decrease of 26.8% compared to HK$496.3 million in 2019, with a gross profit margin increase to 26.9% [27] - Profit attributable to owners of the Company for the year ended December 31, 2020, was approximately HK$79.0 million, down 19.3% from approximately HK$97.9 million in 2019 [27] - The Company’s basic earnings per share attributable to owners for 2020 was 13.5 HK cents, a decrease of 2.9% from 2019 [19] - The Company’s dividend per share for 2020 was 10.8 HK cents, down 20.0% compared to 2019 [19] Dividend Information - Proposed final dividend of HK1.5 cents per share, total dividend of HK2.5 cents per share (2019: HK4.5 cents per share) [11] - Annual dividend payout ratio decreased to 23.1% (2019: 33.3%) [11] - The proposed final dividend for the year ended 31 December 2020 is HK1.5 cents per share, down from HK3.0 cents per share for the year ended 31 December 2019, with total expected dividends of HK2.5 cents per share [51] - An interim dividend of HK1.0 cent per Share was paid, totaling approximately HK$7,343,000 on 5 October 2020 [151] - The Board recommends a final dividend of HK1.5 cents per Share for the year ended 31 December 2020, subject to Shareholders' approval [152] Business Segments - The hospitality supplies business contributed approximately HK$820.9 million, while the OS&E business and health care products contributed HK$112.9 million and HK$419.3 million, respectively, for the year ended December 31, 2020 [23] - Revenue from the hospitality supplies business was approximately HK$820.9 million, representing 60.7% of the Group's total revenue [38] - Revenue from the OS&E business was approximately HK$112.9 million, indicating a 32.9% decrease compared to HK$168.4 million in 2019, contributing 8.3% to the Group's total revenue [90] - The health care and hygienic products business recorded revenue of approximately HK$419.3 million, a significant increase from HK$131.2 million in 2019, contributing 31.0% to the Group's total revenue [103] Challenges and Future Outlook - Looking ahead, the Company anticipates continued uncertainties in 2021 due to the ongoing COVID-19 pandemic and geopolitical tensions, which may negatively impact its hospitality supplies and OS&E businesses [31] - The Group anticipates a substantial drop in revenue from the health care and hygienic products business in 2021 due to market saturation and fierce competition in disinfectant products [109] - The uncertainties in global markets, including the impact of COVID-19 and geopolitical tensions, are expected to pose challenges for the Group's business in 2021 [110] Strategic Initiatives - The Company plans to explore new business markets and enhance cost efficiencies through diversification of production bases to mitigate the negative impacts of the pandemic and geopolitical events [32] - The Group aims to enhance competitiveness by developing a production base in Cambodia to minimize production costs and improve manufacturing efficiencies [118] - The Group will focus on expanding market shares and product portfolios in different regions to maintain diversified business operations [119] Employee and Corporate Governance - The total number of employees was approximately 4,300 as of December 31, 2020, with employee benefit expenses amounting to approximately HK$341.2 million for the year [120] - The Group maintained healthy and safe workplaces for all employees, providing comprehensive benefit packages and career development opportunities [185] - The Group emphasizes corporate social responsibility (CSR) as a key agenda item, integrating environmental management into business planning and daily operations [179] Financial Position - Total assets as of December 31, 2020, were approximately HK$1,803.4 million [14] - Total equity increased to approximately HK$1,192.3 million as of December 31, 2020 [14] - Non-current liabilities increased to approximately HK$24.2 million as of December 31, 2020 [14] - The Group's net assets as at 31 December 2020 were approximately HK$1,192.3 million, compared to approximately HK$1,130.9 million as at 31 December 2019 [54] - The Group's distributable reserves amounted to approximately HK$1,019,262,000 as of December 31, 2020 [190] Risk Management - The company faces risks related to reliance on direct sales customers and distributors, which may affect future sales volumes [167][172] - Price fluctuations of raw materials pose a risk to the company's profitability if costs cannot be managed effectively [168][173] - Operational risks include potential defaults by customers and failures in internal processes, which could negatively impact results [169][174] - Market risks such as currency fluctuations and interest rate volatility are inherent in the company's business operations [170][175] - Compliance with laws and regulations is critical, as non-compliance could lead to significant fines and operational disruptions [176] Management Team - Mr. CHING Chi Fai has over 30 years of experience in the hospitality supplies industry and has been responsible for sales, marketing, and overall corporate direction since 2007 [126] - Mr. LIU Zigang oversees direct sales in the Greater China Region and Southeast Asia, with over 20 years of experience in the hospitality supplies industry [128] - Mr. CHING Tsun Wah, involved in business and product development since 2006, received the Young Industrialist Awards of Hong Kong in 2020 [129] - Mr. KEUNG Kwok Hung, the Chief Financial Officer, has over 20 years of experience in accounting and financial management, joining the Group in July 2010 [130] - Ms. CHAN Yim Ching has over 30 years of experience in the hospitality supplies industry and was an Executive Director from 2007 to 2015 [135] - Mr. HUNG Kam Hung Allan has over 30 years of senior management experience in hotel operations and investments, serving as an Independent Non-Executive Director since 2007 [136] - Mr. MA Chun Fung Horace is a seasoned accountant with extensive experience in risk and internal control, serving as an Independent Non-Executive Director since 2007 [137] - Mr. NG Bo Kwong has over 30 years of management experience across various industries, including hospitality supplies, and has been an Independent Non-Executive Director since 2013 [138] Corporate Social Responsibility - The Company has been actively involved in social responsibilities and public services in Hong Kong and China [144] - The Group is committed to sustainable development and environmental protection through scientific improvements and seeking environmental technologies [178] - The Group's environmental policies and performance details for 2020 will be published in the "Environmental, Social and Governance Report 2020" [180]

Financial Performance - Revenue decreased by 27.3% to approximately HK$692.1 million compared to HK$951.9 million for the same period in 2019[10] - Gross profit decreased by 10.3% to approximately HK$192.6 million, down from HK$214.7 million in the prior year[10] - Gross profit margin increased by 5.2 percentage points to 27.8%, compared to 22.6% for the same period in 2019[10] - Operating profit was approximately HK$63.0 million, an increase from approximately HK$51.3 million in the previous year[10] - Profit attributable to owners of the Company increased by 26.0% to approximately HK$47.2 million, up from HK$37.5 million in 2019[15] - Basic earnings per share attributable to owners of the Company increased by 25.0% to 6.5 HK cents, compared to 5.2 HK cents in the prior year[15] - Diluted earnings per share attributable to owners of the Company increased by 27.5% to 6.5 HK cents, up from 5.1 HK cents in 2019[15] - The Group's total revenue for the six months ended June 30, 2020, was approximately HK$692.1 million, a decrease of 27.3% compared to approximately HK$951.9 million in the same period last year[18] - Profit attributable to owners of the Company for the six months ended June 30, 2020, was approximately HK$47.2 million, an increase from approximately HK$37.5 million in the same period last year[21] - Basic and diluted earnings per share attributable to owners of the Company were HK6.5 cents for the six months ended June 30, 2020, compared to HK5.2 cents and HK5.1 cents in the same period last year[25] Revenue Breakdown - Revenue from hospitality supplies business was approximately HK$390.9 million, representing 56.5% of total revenue, down from 85.8% in the prior year[16] - Revenue from health care and hygienic products business increased to approximately HK$254.2 million, representing 36.7% of total revenue, up from 6.9% in the previous year[16] - Revenue from the OS&E business was approximately HK$47.0 million, representing a decrease of 32.1% compared to HK$69.2 million for the same period in 2019, contributing 6.8% to total revenue[59] - Revenue from the hotel supplies business in China and Hong Kong for the six months ended June 30, 2020, was approximately HK$106.3 million and HK$83.6 million, representing a decrease from HK$267.6 million and HK$162.4 million for the same period in 2019, with respective contributions of 27.2% and 21.4% to total hotel supplies revenue[62] - Revenue from the health care and hygienic products business surged to approximately HK$254.2 million for the six months ended June 30, 2020, compared to HK$65.5 million in the same period of 2019, contributing 36.7% to total revenue[66] Dividends - An interim dividend of 1.0 HK cent per share was declared, down from 1.5 HK cents per share in the previous year, representing a decrease of 33.3%[15] - The proposed interim dividend is HK$7,343,000, compared to HK$22,028,000 for the previous period, indicating a significant reduction[128] - The Board declared an interim dividend of HK1.0 cent per share for the six months ended June 30, 2020, down from HK1.5 cents per share in the same period last year[32] Cash and Liquidity - The Group's cash and cash equivalents as of June 30, 2020, amounted to approximately HK$369.2 million, an increase from approximately HK$348.8 million as of December 31, 2019[28] - Cash and cash equivalents at the end of the period increased to HK$369,213,000 from HK$332,611,000, marking a rise of 11%[141] - The net cash generated from operating activities was HK$35,091,000, down from HK$117,064,000, reflecting a decline of 70%[141] - The Group's liquidity risk management includes securing bank borrowings against its assets, ensuring access to funds when needed[166][170] Borrowings and Financial Position - The Group's gearing ratio increased to 11.7% as of 30 June 2020, compared to 5.9% as of 31 December 2019[46] - Borrowings as of 30 June 2020 were approximately HK$3.8 million, up from HK$1.6 million as of 31 December 2019[43] - The principal portion of borrowings due within one year increased from HK$17,511,000 as of December 31, 2019, to HK$55,839,000 as of June 30, 2020, reflecting a significant rise[176] - The Group's borrowings amounted to HK$133,269,000, with HK$129,516,000 due on demand or within one year[172] Strategic Initiatives - The Group expanded its product portfolio under the "Pasion" brand to include health care and hygienic products in response to increased demand during the COVID-19 pandemic[61] - The company is focusing on developing environmentally friendly hospitality supplies products in response to global environmental protection trends[75] - The company aims to enhance competitiveness by developing its production base in Cambodia to lower production costs and improve manufacturing efficiencies[76] - The company plans to explore new business opportunities and expand market shares in different regions while monitoring potential new business streams[77] - The company has implemented a key performance indicators assessment scheme and an annual commendation award scheme to boost individual performance and operational efficiency[82] Market Impact - The Group's total revenue for the six months ended 30 June 2020 was significantly impacted by the COVID-19 pandemic and geopolitical tensions, leading to a decline in overall business performance[49] - The COVID-19 pandemic has significantly impacted the Group's hotel supplies and operational equipment businesses, prompting an expansion in the production of health care and hygiene products, including disinfectant sprays, alcohol hand sanitizers, and three-layer disposable masks[150] Shareholder Information - As of June 30, 2020, Mr. CHING Chi Fai holds a total of 215,110,200 shares, representing approximately 29.30% of the issued shares[95] - The total number of issued shares as of June 30, 2020, is 734,262,697 shares[95] - The share options granted to directors are regarded as unlisted physically settled equity derivatives[97] - The company has conditionally adopted a share option scheme on October 5, 2007, with movements in share options reported for the six months ended June 30, 2020[108] Financial Reporting - The interim financial information is prepared in accordance with Hong Kong Accounting Standards and has not been audited, highlighting the need for caution in interpreting the results[151] - The Group's accounting policies remain consistent with those applied in the annual consolidated financial statements for the year ended December 31, 2019, with no significant changes due to new standards adopted[153][161] - The Group's interim financial results should be read in conjunction with the annual consolidated financial statements for a comprehensive understanding of its financial position[159]

Financial Performance - Revenue decreased by 0.5% to approximately HK$2,043.1 million (2018: approximately HK$2,052.7 million) [12] - Gross profit increased by 6.6% to approximately HK$496.3 million (2018: approximately HK$465.3 million) [13] - Gross profit margin increased by 1.6 percentage points to 24.3% (2018: 22.7%) [14] - Operating profit was approximately HK$126.4 million (2018: approximately HK$128.7 million) [15] - Profit attributable to owners of the Company was approximately HK$97.9 million (2018: approximately HK$100.2 million) [15] - Loss/profit for the year was approximately HK$92.1 million (2018: approximately HK$96.1 million) [19] - Basic earnings per share attributable to owners of the Company was HK13.5 cents, down from HK13.9 cents in 2018 [62] Dividends - Proposed final dividend of HK$3.0 cents per share, with a total dividend of HK$4.5 cents per share (2018: HK$7.0 cents per share) [16] - Dividend payout ratio decreased to 33.3% (2018: 50.4%) [16] - An interim dividend of HK1.5 cents per share was paid for the six months ended 30 June 2019, totaling approximately HK$11,014,000 [172] - The Board recommends a final dividend of HK3.0 cents per share for the year ended 31 December 2019, subject to shareholder approval [173] - The Board intends to balance maintaining sufficient capital for business growth and rewarding shareholders through dividends [170] - The decision to declare or pay any dividend will depend on the Group's earnings, financial condition, and other relevant factors [170] Revenue Breakdown - Revenue from the hospitality supplies business was approximately HK$1,868.4 million, a decrease of 1.3% compared to HK$1,892.9 million in 2018 [39] - Revenue from the Operating Supplies and Equipment (OS&E) business increased by 9.1% to approximately HK$168.4 million from HK$154.3 million in 2018 [40] - The revenue from the hospitality supplies business was approximately HK$1,868.4 million, representing 91.4% of the Group's total revenue [56] - Revenue from the hospitality supplies business in the PRC decreased by 2.6% to approximately HK$614.1 million for the year ended 31 December 2019, accounting for 32.9% of the segment's revenue [95] - Revenue from Hong Kong increased by 6.9% to approximately HK$300.2 million, representing 16.1% of the hospitality supplies business segment revenue [95] - Revenue from North America was approximately HK$393.0 million, a decrease of 4.4% from the previous year, accounting for 21.0% of the segment's revenue [96] Assets and Liabilities - The Group's total assets as of 31 December 2019 were HK$1,838,945,000, an increase from HK$1,705,051,000 in 2018 [20] - Total equity as of 31 December 2019 was HK$1,130,906,000, up from HK$1,090,530,000 in 2018 [20] - Current liabilities increased to HK$690,134,000 in 2019 from HK$604,182,000 in 2018 [20] - Outstanding bank borrowings as of 31 December 2019 amounted to approximately HK$33.1 million, up from HK$14.6 million in 2018 [69] - The gearing ratio as of December 31, 2019, was 5.9%, compared to 3.2% as of December 31, 2018 [76] Market and Operational Risks - The Group plans to continue exploring new markets and enhancing cost efficiencies to mitigate risks from geopolitical events [41] - The outbreak of COVID-19 is expected to impact the Group's hospitality supplies and operating supplies and equipment businesses in 2020 [47] - The Group anticipates a decline in international tourist arrivals and economic conditions in 2020, which may impact hospitality supplies and OS&E businesses [116] - The Group will continue to monitor external risks, including the ongoing China-U.S. trade war and the COVID-19 outbreak, which have severely affected the tourism and hospitality industries [116] - There is a risk that customers may cease to purchase or reduce their purchase volumes, which could adversely affect the Group's business and profitability [176] - The principal raw materials used in production may experience substantial price volatility and shortages, impacting profit margins if costs cannot be managed effectively [182] - The Group faces operational risks from defaults by customers, distributors, suppliers, and other external factors that may negatively impact operational results [185] - Market risks include currency fluctuations, interest rate volatility, credit risks, and liquidity risks, which are detailed in the financial risk management section [187] Corporate Governance and Compliance - The Company is committed to compliance with regulations and product safety through its regulatory committee [157] - Compliance with laws and regulations is critical, as failure to comply may result in significant fines or operational disruptions, adversely affecting financial condition and reputation [188] - The Group has complied with relevant laws and regulations that significantly impact its operations [190] Corporate Social Responsibility - The Group is committed to sustainable development and corporate social responsibility, focusing on environmental protection and resource management [194] - The Group emphasizes that corporate social responsibility (CSR) is integral to its business planning and daily operations, with a focus on environmental management [196] - The Group will allocate resources to research and develop new eco-friendly hospitality supplies products in response to new environmental protection laws and the rising "plastic free" trend [129] Employee and Management - The total number of employees as of December 31, 2019, was approximately 5,200, with employee benefit expenses amounting to approximately HK$481.5 million for the year [132] - Mr. Liu Zigang has over 20 years of experience in the hospitality supplies industry and has been with the company since 1995, overseeing direct sales in Greater China and Southeast Asia [140] - Mr. Cheng Junhua has extensive experience in the hospitality supplies industry and has been involved in business and product development since joining the group in 2006 [140] - Mr. Keung Kwok Hung has over 20 years of experience in accounting and financial management, serving as Chief Financial Officer since 2014 [143] - Ms. Chan Yim Ching has over 30 years of experience in the hospitality supplies industry and was an Executive Director from 2007 to 2015 [145] - Mr. Hung Kam Hung Allan has over 30 years of senior management experience in hotel operations and investments, contributing to hotel development and management [146] - Mr. Ma Chun Fung Horace is a seasoned accountant with extensive experience in risk and internal control, serving as an Independent Non-Executive Director since 2007 [147] - Ms. Chan Yick Ning oversees research and development in chemical production and has over 30 years of experience in cosmetics production and laboratory operations [154] Business Strategy - The Group continues to implement various prudent and flexible business strategies to enhance performance and capitalize on market opportunities [50] - The Group expanded production in Cambodia to mitigate the impact of the China-U.S. trade war and stabilize performance [105] - The Group is focused on improving its margins by increasing production efficiencies and adopting flexible business strategies [121] - The Group has shifted some production lines to manufacture anti-epidemic products, including alcoholic hand sanitizers and face masks, in response to increased global demand for personal hygiene products [121] - The Group plans to further expand its product lines to include more disposable infection control and personal health care products [121] Customer Relations and Quality Control - The Group maintains effective relationships with suppliers to meet customer needs efficiently, ensuring an open and fair procurement process [198] - Customer feedback is regularly analyzed to understand trends and needs, with comprehensive tests conducted to ensure quality products and services [197]

Financial Performance - Revenue increased by 1.9% to approximately HK$951.9 million for the six months ended June 30, 2019, compared to approximately HK$933.9 million for the same period in 2018[13]. - Gross profit decreased by 0.7% to approximately HK$214.7 million, down from approximately HK$216.2 million for the six months ended June 30, 2018[13]. - Gross profit margin decreased by 0.5 percentage points to 22.6% from 23.1% for the same period in 2018[14]. - Operating profit was approximately HK$51.3 million, compared to approximately HK$56.4 million for the six months ended June 30, 2018[16]. - Profit attributable to owners of the Company was approximately HK$37.5 million, down from approximately HK$46.6 million for the same period in 2018[16]. - Basic earnings per Share attributable to owners of the Company for the six months ended June 30, 2019 was HK5.2 cents, down from HK6.4 cents for the same period in 2018[24]. - The Group's gross profit decreased by 0.7% to approximately HK$214.7 million compared to approximately HK$216.2 million for the six months ended June 30, 2018[24]. - Profit attributable to owners of the Company decreased by 19.7% to approximately HK$37.5 million from approximately HK$46.6 million in the corresponding period of the prior year[22]. - The proposed interim dividend was HK$11,014,000, compared to HK$36,428,000 in the previous period, indicating a significant reduction[99]. Revenue Breakdown - Revenue from the Hong Kong market increased by 23.1% to approximately HK$162.4 million, accounting for 18.5% of the hospitality supplies business segment revenue[29]. - Revenue from the PRC market decreased by 6.1% to approximately HK$267.6 million, representing 30.4% of the hospitality supplies business segment revenue[29]. - For the six months ended June 30, 2019, revenue from the North American market was approximately HK$185.4 million, accounting for 21.1% of the hospitality supplies business segment revenue[31]. - Revenue from the European market decreased to approximately HK$116.2 million, representing 13.2% of the hospitality supplies business segment revenue[31]. - Revenue from the OS&E business increased to approximately HK$69.2 million, a 19.9% increase compared to approximately HK$57.7 million for the same period in 2018[31]. - Revenue from the PRC market increased by 7.1% to approximately HK$41.1 million, representing 59.3% of the OS&E business segment revenue[31]. - Revenue from other markets recorded approximately HK$28.1 million, accounting for 40.7% of the OS&E business segment revenue[31]. Dividends and Shareholder Returns - An interim dividend of HK$1.5 cents per share was declared, down from HK$2.0 cents per share for the six months ended June 30, 2018[16]. - The Board declared an interim dividend of HK1.5 cents per Share for the six months ended June 30, 2019, down from HK2.0 cents per Share for the same period in 2018[25]. - The decision to declare dividends will depend on the Group's earnings, financial condition, cash requirements, and other relevant factors[89]. - The Company aims to balance sufficient capital for business growth with rewarding shareholders through its dividend policy[89]. Financial Position and Assets - The consolidated net asset value increased to approximately HK$1,093.1 million as at June 30, 2019, from approximately HK$1,090.5 million as at December 31, 2018[24]. - Total assets as of June 30, 2019, were HK$1,663,981,000, a decrease from HK$1,705,051,000 as of December 31, 2018[99]. - Total liabilities decreased to HK$570,898,000 from HK$614,521,000, showing a reduction of 7.1%[99]. - Cash and cash equivalents increased to HK$332,611,000 from HK$272,478,000, representing a growth of 22.1%[99]. - The balance at June 30, 2019, showed total equity of HK$1,093,083,000, an increase from HK$1,090,530,000 at the beginning of the year[129]. Operational Challenges and Strategies - The Group's management anticipates significant challenges for its hospitality supplies and OS&E businesses in the second half of 2019 due to external risks such as the China-U.S. trade war and economic pressures in China[33]. - The Group plans to enhance its competitiveness by extending production lines in Cambodia, aiming to reduce labor costs and increase manufacturing efficiencies[33]. - The Group will focus on increasing the innovation and development of eco-friendly hospitality supplies in response to new environmental protection laws and regulations[33]. - The Group's management will explore new business opportunities to expand market shares and mitigate the impacts of the China-U.S. trade war[33]. Shareholder Information - As of June 30, 2019, Mr. CHING Chi Fai held a total of 214,110,200 shares, representing approximately 29.16% of the issued shares[62]. - Prosper Well International Limited, wholly owned by Mr. CHING Chi Fai, held 165,166,600 shares, accounting for 22.49% of the issued shares[73]. - Mr. David Michael WEBB held 94,553,000 shares, which is approximately 12.88% of the issued shares[73]. - The total number of shares held by Ms. LO Kit Ling was 214,110,200, representing 29.16% of the issued shares[73]. - Wykeham Capital Asia Value Fund held 44,570,000 shares, which is about 6.07% of the issued shares[73]. - As of June 30, 2019, no other directors had any interests or short positions in shares or debentures of the company[68]. Accounting Policies and Financial Reporting - The Group adopted HKFRS 16 Leases from January 1, 2019, which required changes in accounting policies and retrospective adjustments[136]. - The Group's accounting policies are consistent with those of the annual consolidated financial statements for the year ended December 31, 2018, except for income tax estimation and the adoption of new standards[136]. - The Group's financial information should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2018[136]. - The Group's financial risk management remains unchanged since the end of the previous year, with exposure to market risk, credit risk, and liquidity risk[160][161]. Internal Structure and Governance - The Group's internal organizational structure has been reviewed to align with strategic decisions and market dynamics[174]. - The board has restructured the internal organization to better align with market dynamics and enhance customer service quality[177]. - The company has adopted a new reporting format to reflect the current organizational structure, which includes separate disclosures for the Hospitality Supplies and OS&E businesses[177].

Financial Performance - Revenue increased by 10.1% to approximately HK$2,052.7 million (2017: approximately HK$1,863.6 million) [8] - Gross profit increased by 5.3% to approximately HK$465.3 million (2017: approximately HK$442.0 million) [9] - Gross profit margin decreased by 1.0 percentage point to 22.7% (2017: 23.7%) [10] - Operating profit was approximately HK$128.7 million (2017: approximately HK$141.7 million) [11] - Profit attributable to owners of the Company was approximately HK$100.2 million (2017: approximately HK$108.9 million) [11] - Profit for the year was approximately HK$96.1 million (2017: approximately HK$108.8 million) [15] - The company reported a decrease in profit before income tax to approximately HK$130.9 million (2017: approximately HK$143.2 million) [15] - Basic earnings per share attributable to owners of the Company for the year was HK13.9 cents, down from HK15.1 cents in 2017 [56] Dividends - Proposed final dividend of HK5.0 cents per share, with a total dividend of HK7.0 cents per share (2017: HK7.0 cents per share) [12] - Dividend payout ratio increased to 50.4% (2017: 46.4%) [12] - The total annual dividend proposed is HK7.0 cents per Share, maintaining the same level as in 2017, with a dividend payout ratio of 50.4% [37] - The Directors recommend a final dividend of HK5.0 cents per Share for the year ended December 31, 2018, subject to Shareholders' approval at the annual general meeting [156] - The final dividend will be paid on or around June 17, 2019, to Shareholders listed on the register on June 6, 2019 [156] Business Operations - The company continues to focus on market expansion and product development strategies [8] - The hospitality supplies business benefited from strong tourism momentum, contributing significantly to the Group's revenue growth [33] - The Group is focusing on eco-friendly products, gradually eliminating non-eco-friendly options and increasing investments in eco-friendly hospitality supplies [38] - The Operating Supplies and Equipment (OS&E) business will continue to explore new hotel customers and strategies to increase re-order rates among existing customers [38] - The Group's hospitality supplies products are sold primarily through direct sales to customers, mainly hotels and airline operators, or to distributors for other end-users [167] Market Performance - Revenue from the PRC hospitality supplies business increased by 19.2% to approximately HK$630.3 million, representing 33.3% of the hospitality supplies segment revenue [71] - Revenue from Hong Kong decreased by 2.4% to approximately HK$280.9 million, accounting for 14.8% of the hospitality supplies segment revenue [71] - North America market revenue was approximately HK$411.3 million, accounting for 21.7% of the hospitality supplies segment revenue [76] - The OS&E business achieved revenue growth of approximately HK$37.0 million for the year ended 31 December 2018, representing a 31.6% increase compared to HK$117.3 million in 2017, accounting for 7.5% of the Group's total revenue [82] Assets and Liabilities - Total assets as of 31 December 2018 were HK$1,705.1 million, with total equity at HK$1,090.5 million [16] - Current liabilities amounted to HK$604.2 million, while total liabilities were HK$614.5 million [16] - The Group's non-current assets were valued at HK$467.4 million as of 31 December 2018 [16] - The Group's cash and cash equivalents amounted to approximately HK$272.5 million as of 31 December 2018, down from approximately HK$367.8 million in 2017 [107] - Outstanding bank borrowings amounted to approximately HK$14.6 million as of 31 December 2018, a decrease from approximately HK$16.5 million in 2017 [108] Corporate Governance and Management - The company has a strong executive team with extensive experience in the hospitality supplies industry, with members having over 20 years of relevant experience [134][135] - The company has a robust governance structure with independent non-executive directors overseeing key committees, including audit and remuneration [141][144] - The company is committed to maintaining high standards of corporate governance and transparency in its operations [141] - The management team has a diverse educational background, including degrees in accountancy, business administration, and law, contributing to a well-rounded leadership [141] Sustainability and Corporate Social Responsibility - The Group is committed to sustainable development and corporate social responsibility, focusing on environmental protection and resource management [177] - The Group emphasizes corporate social responsibility as a key aspect of its business planning and daily operations [183] - The Group's environmental policy and performance details for 2018 will be disclosed in the upcoming Environmental, Social, and Governance report [183] Risk Management - The Group faces substantial price volatility and periodic shortages of principal raw materials, which may adversely affect profits if costs cannot be managed [166] - The Group is subject to various market risks, including currency fluctuations, interest rate volatility, credit risks, and liquidity risks [170] - Compliance with existing and future laws and regulations may incur significant expenditures and affect the Group's financial condition and reputation [171] Employee Relations - The Group provides comprehensive benefits and career development opportunities to employees, ensuring a healthy and safe workplace [180] - The total number of employees as of December 31, 2018, was approximately 3,800, with employee benefit expenses totaling approximately HK$437.9 million [118] - The Group maintains effective relationships with employees, customers, and suppliers, ensuring a healthy and safe work environment [184]