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]