2022 中期報告 Golden Power Group Holdings Limited 金力集團控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號 : 3919 Golden Power Group Holdings Limited 金力集團控股有限公司 (Incorporated in the Cayman Islands with limited liability) Stock Code : 3919 2022 Interim Report 財務摘要 1 金力集團控股有限公司•中期報告2022 • 截至二零二二年六月三十日止六個月，本集團錄得未經審核收益約 164.10百萬港元（截至二零二一年六月三十日止六個月：約177.68百 萬港元），較二零二一年同期減少約7.64%。 • 截至二零二二年六月三十日止六個月，本公司權益持有人應佔未經審 核虧損約6.55百萬港元，而截至二零二一年六月三十日止六個月則為 本公司權益持有人應佔未經審核溢利約1.65百萬港元。本期間虧損是 由於人民幣（「人民幣」）兌港元貶值，導致本集團於本期間錄得匯兌虧 損及已變現對沖虧損，因為本集團的呈報貨幣為港元，而本集團有一 ...

Financial Performance - For the six months ended June 30, 2021, Golden Power Group Holdings Limited recorded unaudited revenue of approximately HKD 177.68 million, an increase of about 19.76% compared to HKD 148.36 million for the same period in 2020[3]. - The unaudited profit attributable to equity holders for the six months ended June 30, 2021, was approximately HKD 1.65 million, a decrease of about 60.34% from HKD 4.16 million for the same period in 2020[3]. - Basic earnings per share for the six months ended June 30, 2021, was HKD 0.62, down from HKD 1.66 for the same period in 2020[5]. - The gross profit for the six months ended June 30, 2021, was HKD 34.48 million, compared to HKD 39.46 million for the same period in 2020, indicating a decrease of 12.6%[21]. - The net profit for the period was HKD 1.65 million, down from HKD 4.16 million in the same period last year, reflecting a decline of 60.4%[21]. - The total income tax expense for the six months ended June 30, 2021, was HKD 469,000, down from HKD 1,552,000 in 2020, indicating a decrease of approximately 69.8%[25]. - Sales expenses decreased by 19.22% to approximately HKD 7.69 million, down from HKD 9.52 million in the corresponding period of 2020[43]. Assets and Liabilities - Total assets less current liabilities as of June 30, 2021, amounted to HKD 358.84 million, an increase from HKD 319.44 million as of December 31, 2020[7]. - Cash and cash equivalents at the end of the period were HKD 21.08 million, up from HKD 16.71 million at the end of the same period in 2020[9]. - The company’s non-current assets increased to HKD 453.47 million as of June 30, 2021, from HKD 421.05 million as of December 31, 2020[7]. - The company’s total equity increased to HKD 310.69 million as of June 30, 2021, from HKD 272.09 million as of December 31, 2020[7]. - The company reported a net cash outflow from operating activities of HKD 3.61 million for the six months ended June 30, 2021, compared to a net inflow of HKD 14.53 million for the same period in 2020[9]. - The company's total borrowings as of June 30, 2021, were approximately HKD 201.75 million, an increase from HKD 187.72 million as of December 31, 2020[45]. - The debt ratio was approximately 0.51 as of June 30, 2021, compared to 0.52 as of December 31, 2020[45]. Market Performance - The revenue from the Chinese market increased significantly to HKD 63.18 million, up 49.7% from HKD 42.22 million in the previous year[23]. - The company recorded a significant increase in revenue from cylindrical batteries, which rose by approximately HKD 33.17 million or 36.13% due to increased sales in China, Hong Kong, North America, and Europe[37]. Corporate Actions - The company did not declare an interim dividend for the six months ended June 30, 2021, consistent with the previous year[3]. - The company completed a rights issue on June 9, 2021, raising approximately HKD 39.60 million before expenses by issuing 120,000,000 shares, which accounted for about 33.33% of the enlarged issued share capital[35]. - The net proceeds from the rights issue amounted to approximately HKD 35.50 million after deducting related expenses, with HKD 15.0 million allocated for repaying bank loans[64]. Investments and Expenditures - The company acquired property, plant, and machinery for approximately HKD 34.58 million during the six months ended June 30, 2021, compared to HKD 14.63 million in the same period of 2020, representing an increase of approximately 136.5%[28]. - The company has committed capital expenditures of approximately HKD 32.04 million for the acquisition of auxiliary and other machinery to produce mercury-free, cadmium-free, and lead-free alkaline cylindrical and button batteries[46]. - The company plans to invest more resources into new product categories, including hearing aid batteries and marketing disposable batteries[40]. Governance and Compliance - The audit committee, composed entirely of independent non-executive directors, has reviewed the financial results and found them compliant with applicable accounting standards[85]. - The company confirms compliance with corporate governance codes during the reporting period[81]. Employee and Operational Information - The total employee cost, including directors' remuneration, was approximately HKD 24.80 million for the period, compared to HKD 23.37 million for the same period last year[57]. - As of June 30, 2021, the group had 518 employees, a decrease from 541 employees as of June 30, 2020[57]. Risks and Future Outlook - The group faced significant risks including potential operational disruptions due to public health events and fluctuations in currency exchange rates affecting financial performance[59]. - The company is evaluating the impact of new accounting standards on its performance and financial position[16]. - The company continues to explore investment strategies to enhance cash flow as needed[18]. Shareholding Structure - The company holds a total of 183,600,000 shares, representing approximately 51.00% ownership by Chairman and Executive Director Zhu Jingdian[69]. - Zhu Jingdian is the beneficial owner of 50,000 shares in Golden Villa Ltd., which represents 100% ownership[71]. - Golden Villa Ltd. holds 140,000,000 shares, accounting for 38.89% of the total shares[73]. - Triumph Treasure Holdings Limited owns 43,600,000 shares, which is 12.11% of the total shares[73]. - Zhu Jingdian's spouse, Ms. Wu Yuling, is deemed to have an interest in 183,600,000 shares, equivalent to 51.00% ownership[75]. Other Information - No significant events occurred after the reporting period up to the report date[76]. - The company did not purchase, sell, or redeem any of its listed securities during the period[77]. - The company has adopted a share option scheme, but no options have been granted or exercised since its adoption[78]. - The group reported no significant contingent liabilities as of June 30, 2021, consistent with the previous year[52].

Financial Performance - The company's revenue for the fiscal year ended December 31, 2020, slightly increased by approximately 0.39% to about HKD 315.42 million from approximately HKD 314.20 million in the previous year[8]. - Profit attributable to shareholders for the year was approximately HKD 12.34 million, representing an increase of about 67.21% compared to HKD 7.38 million in the previous year[8]. - Earnings per share rose to HKD 5.14, up from HKD 3.08 in the previous year[8]. - Revenue from cylindrical batteries decreased by approximately HKD 15.84 million to about HKD 201.35 million, representing a decline of about 7.29% due to reduced demand outside Europe, China, and Asia[18]. - Revenue from micro button batteries increased by approximately HKD 14.60 million to about HKD 107.18 million, reflecting a growth of about 15.77% driven mainly by demand from Europe, Australia, and China[19]. - Revenue from rechargeable batteries and other related products rose by approximately HKD 2.45 million to about HKD 6.89 million, marking an increase of about 55.18%[19]. - The company's net profit attributable to shareholders was approximately HKD 12.34 million, an increase of about 67.21% from the previous year's profit of approximately HKD 7.38 million[28]. - Gross profit for the year was approximately HKD 80.82 million, an increase of about 8.91% from approximately HKD 74.21 million in the previous year[23]. - The gross margin improved from approximately 23.62% in the previous year to about 25.62% this year, an increase of about 2.00%[33]. - Financing costs decreased by approximately 36.83% to about HKD 3.79 million from approximately HKD 6.00 million in the previous year, primarily due to the restructuring of bank financing[25]. Operational Developments - The company has expanded its product range to include hearing aid batteries and medical device batteries, enhancing competitiveness and targeting high-end healthcare product customers[7]. - A new automated production line for mercury-free, cadmium-free, and lead-free alkaline cylindrical batteries began production in Q3 2020, aimed at improving production efficiency and product quality[7][14]. - The company plans to continue investing in production facilities and automation to enhance cost-effectiveness and productivity[10]. - The restructuring of the Dongguan subsidiary was completed in 2020 to achieve cost control over sales expenses, expected to enhance overall efficiency and cost savings[10]. - The company will simplify its corporate structure in China to maintain competitiveness amid rising production costs[15]. - In 2021, the company plans to continue investing in production facilities and upgrading production lines to enhance capacity and efficiency, with a new automated production line for hearing aid batteries starting production in Q3 2020[57]. Market and Product Strategy - The company is developing its own brand products for IoT devices and expanding into the global IoT battery market through partnerships with major retailers and e-commerce platforms[14]. - The company is developing batteries for the IoT market under its own brand "Jinli" and other private label brands, aiming to expand its global market share through partnerships with major global retailers and e-commerce platforms[57]. Governance and Compliance - The company complied with all relevant laws and regulations in Hong Kong and China during the reporting period[52]. - The company has adopted the corporate governance code as per Appendix 14 of the listing rules and has complied with all applicable provisions during the year[53]. - The company has a strong governance structure with independent non-executive directors providing oversight and independent opinions[67]. - The finance director has extensive experience in internal control systems and accounting functions, ensuring robust financial management[73]. - The management team has significant industry experience, with key members having over 25 years in their respective fields[70]. - The company has a dedicated compliance officer to ensure adherence to regulatory requirements[75]. - The board consists of seven members, including four executive directors and three independent non-executive directors[83]. - The company has adopted a board diversity policy to enhance its competitive advantage and ensure a balanced mix of skills and experiences among board members[82]. - The board held four meetings during the year, with all directors attending all meetings, demonstrating strong governance and engagement[90]. Risk Management - The company faced risks related to public health events, customer relationships, and fluctuations in currency values[47]. - The risk management policy aims to ensure sustainable and stable business growth while providing a proactive approach to identifying, assessing, and addressing business-related risks[119]. - The board is responsible for evaluating the effectiveness of the group's risk management and internal control systems annually, ensuring reasonable assurance against significant misstatements or losses[118]. Environmental, Social, and Governance (ESG) Performance - The report covers the company's environmental, social, and governance (ESG) performance for the period from January 1 to December 31, 2020[133]. - The company adheres to local laws and regulations regarding environmental, labor, and anti-corruption practices[132]. - The company continues to invest resources to meet the ongoing demand for environmentally friendly battery products[132]. - The company has established a sustainability committee to enhance its sustainable development framework, focusing on critical issues identified through stakeholder feedback[139]. - The importance matrix ranks hazardous waste management, wastewater management, and air quality control as the top three environmental issues for the company[146]. - The group has received prestigious qualifications for its battery manufacturing technology, including recognition as a high-tech enterprise by the Guangdong Provincial Department of Science and Technology[148]. - The group has launched specialized battery products for healthcare applications, catering to the growing demand for medical devices[160]. - The company emphasizes the importance of ESG performance, noting that 2020 was a challenging year but also presented opportunities for growth in ESG awareness and practices[136]. Employee Relations - The company has a total of 525 employees as of December 31, 2020, down from 532 in 2019[48]. - The company emphasizes employee feedback and regularly organizes activities to strengthen relationships within the workplace[176]. - Various training programs are provided to enhance employee skills, focusing on quality control, technical operations, occupational health and safety, and environmental protection[185]. - The company achieved a zero fatality rate and zero work-related injuries during the reporting period[180]. Sustainability Initiatives - The group has implemented a rigorous supplier evaluation process that includes environmental performance assessments and compliance with safety standards[154]. - The group has developed environmentally friendly batteries, including the "Source. Nature" series, which are free from harmful substances like mercury and cadmium[159]. - The group has introduced a new child-resistant packaging for button lithium batteries, anticipating increased demand for safety in packaging[162]. - The group has installed exhaust filters at its Jiangmen production base to remove air pollutants such as nitrogen dioxide and particulate matter[194].

2020 中 期 報 告 Golden Power Group Holdings Limited 金力集團控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號 : 3919 Golden Power Group Holdings Limited 金力集團控股有限公司 (Incorporated in the Cayman Islands with limited liability) Stock Code : 3919 INTERIM REPORT 2020 財務摘要 1 中期報告 2020 • 截至二零二零年六月三十日止六個月，本集團錄得未經審核收益約 148.36百萬港元（截至二零一九年六月三十日止六個月：約156.41百 萬港元），較二零一九年同期減少約5.15%。 • 截至二零二零年六月三十日止六個月，本公司權益持有人應佔未經審 核溢利約4.16百萬港元，而截至二零一九年六月三十日止六個月則為 未經審核溢利約2.78百萬港元，即較二零一九年同期增加溢利約 49.64%。 • 截至二零二零年六月三十日止六個月的每股基本盈利為1.73港仙（截 至二零一九年六月三十日止六個月：每股基本盈利1.16港仙） ...

Financial Performance - The revenue for the fiscal year ended December 31, 2019, decreased by approximately 2.88% to about HKD 314.20 million from approximately HKD 323.53 million in the previous year[10]. - The profit attributable to shareholders for the year was approximately HKD 7.38 million, an increase of about 19.03% compared to HKD 6.20 million in the previous year[10]. - Earnings per share increased to HKD 3.08 from HKD 2.58 in the previous year[10]. - The company's revenue for the year was approximately HKD 314.20 million, a slight decrease of about 2.88% from the previous year's revenue of approximately HKD 323.53 million, primarily due to reduced demand in China for cylindrical batteries[22]. - Revenue from cylindrical batteries decreased by approximately HKD 5.77 million to about HKD 217.19 million, representing a decline of about 2.59%[20]. - Revenue from micro button batteries decreased by approximately HKD 5.22 million to about HKD 92.58 million, a decrease of about 5.34%[21]. - Revenue from rechargeable batteries and other related products increased by approximately HKD 1.67 million to about HKD 4.44 million, an increase of approximately 60.29%, mainly driven by demand from Europe and North America[21]. - Gross profit for the year was approximately HKD 74.21 million, an increase of about 13.82% from the previous year's gross profit of approximately HKD 65.20 million[25]. - The company's net profit attributable to shareholders was approximately HKD 7.38 million, an increase of about 19.03% from the previous year's net profit of approximately HKD 6.20 million[30]. - The gross profit margin increased from approximately 20.15% to about 23.62%, an increase of about 3.47% due to reduced production costs[36]. Production and Investment - A new automated production line for producing mercury-free, cadmium-free, and lead-free alkaline cylindrical batteries began production in the first quarter of 2019[9]. - The company plans to continue investing in production facilities and upgrading production lines to enhance capacity and efficiency in 2020[16]. - Capital expenditure for a new automated production line and auxiliary machinery was approximately HKD 6.54 million, aimed at producing mercury-free, cadmium-free, and lead-free alkaline cylindrical batteries, button cells, and hearing aid batteries[42]. - The company has invested in advanced automation technologies to improve production efficiency and reduce human error in battery manufacturing[163]. - The company has implemented a shrink film packaging machine to automate the packaging process, reducing manual labor risks associated with repetitive tasks[182]. Market Strategy and Expansion - The company expanded its product range to include hearing aid batteries, which are designed to attract high-end healthcare product customers[9]. - The company aims to expand its retail market presence globally through partnerships with major global chains and e-commerce platforms[16]. - The company is expanding into the global retail market with products under its own brand "Jinli" and other private label businesses[65]. - The company will restructure its subsidiaries in China to maintain competitiveness amid rising production costs[17]. Corporate Governance - The company has a diversified board policy to enhance competitive advantage and ensure effective leadership and independent decision-making[90]. - The board has adopted the corporate governance code and has complied with all applicable provisions during the year[88]. - The company emphasizes the importance of good corporate governance elements in its management structure and internal control procedures[87]. - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a diverse skill set and experience[92]. - The company has established three board committees to oversee specific aspects of the group's affairs, enhancing governance and accountability[104]. - The company has implemented a director nomination procedure to ensure a diverse and qualified board[116]. - The company adopted a dividend policy on October 25, 2018, which outlines principles for declaring and distributing profits to shareholders, considering factors such as financial performance, cash flow, and future operations[119]. Sustainability and Environmental Responsibility - The company has launched a series of environmentally friendly batteries that are mercury-free, cadmium-free, and lead-free[138]. - The company has prioritized three major environmental issues: hazardous waste management, wastewater management, and air quality control[152]. - The company has established a sustainable development committee to enhance its sustainability framework[146]. - The company has received multiple prestigious qualifications for its battery manufacturing technology, including recognition from Guangdong Province's Science and Technology Department[154]. - The company has successfully passed the Nordic Ecolabel certification for its battery products, demonstrating its commitment to environmentally responsible operations[189]. - Greenhouse gas emissions decreased to 4,967 tons of CO2 equivalent in 2019 from 5,913 tons in 2018, reflecting a reduction of approximately 16%[197]. - The company has invested in hardware facilities to promote energy-saving measures, including the installation of variable speed drives and the replacement of traditional lighting with energy-efficient LED lights[197]. Employee Relations and Management - Employee costs, including director salaries, were approximately HKD 50.63 million, an increase of about 2.80% from HKD 49.25 million in 2018[53]. - The total employee count is 532, with an overall turnover rate of 13% during the reporting period[173]. - The workforce is composed of 55% female and 45% male employees, with the majority (71%) classified as junior staff[174][176]. - The company emphasizes employee feedback and has established various communication channels to foster a harmonious workplace environment[178]. - The average training hours for male employees were 15.3 hours, while female employees received an average of 12.4 hours of training[186]. Risk Management - The company anticipates that trade tensions and currency fluctuations will continue to create market uncertainties[12]. - The group faced risks including the lack of long-term sales contracts with major customers, which could adversely affect business and financial performance[48]. - The board is responsible for the internal control system and risk management procedures, which have been regularly reviewed and deemed effective during the year[126].

Financial Performance - For the six months ended June 30, 2019, the group recorded unaudited revenue of approximately HKD 156.41 million, an increase of about 1.41% compared to HKD 154.24 million for the same period in 2018[5]. - The profit attributable to equity holders for the six months ended June 30, 2019, was approximately HKD 2.78 million, a significant increase of approximately 137.27% from a loss of HKD 7.46 million in the same period of 2018[5]. - The basic earnings per share for the six months ended June 30, 2019, was 1.16 HK cents, compared to a loss of 3.11 HK cents for the same period in 2018[9]. - The group reported a gross profit of HKD 35.82 million for the six months ended June 30, 2019, compared to HKD 24.90 million in the same period of 2018, reflecting a strong improvement in profitability[7]. - Total revenue for the six months ended June 30, 2019, was HKD 156,410,000, a slight increase of 1.4% compared to HKD 154,243,000 for the same period in 2018[29]. - The gross profit for the same period was approximately HKD 35.82 million, representing an increase of about 43.86% from HKD 24.90 million in 2018[46]. - The company reported a profit of HKD 2,775,000 for the six months ended June 30, 2019, compared to a loss of HKD 7,464,000 in the same period of 2018, indicating a significant turnaround[38]. Cash Flow and Assets - Operating cash flow for the six months ended June 30, 2019, was HKD 7.65 million, a turnaround from a cash outflow of HKD 4.80 million in the same period of 2018[12]. - The group’s total assets less current liabilities as of June 30, 2019, amounted to HKD 308.84 million, an increase from HKD 298.84 million as of December 31, 2018[11]. - The group’s cash and bank balances increased to HKD 23.80 million as of June 30, 2019, compared to HKD 19.10 million at the beginning of the period[12]. - The company’s cash and cash equivalents as of June 30, 2019, were approximately HKD 23.80 million, an increase from HKD 19.11 million as of December 31, 2018[55]. Equity and Liabilities - The group’s total equity as of June 30, 2019, was HKD 251.70 million, slightly up from HKD 250.89 million as of December 31, 2018[11]. - The company reported a net current liability of HKD 80.09 million as of June 30, 2019[27]. - The company's bank borrowings as of June 30, 2019, amounted to approximately HKD 193.18 million, an increase from HKD 169.83 million as of December 31, 2018[54]. - The debt ratio of the company was approximately 0.54 as of June 30, 2019, compared to 0.53 as of December 31, 2018[54]. Dividends and Expenses - The group did not declare an interim dividend for the six months ended June 30, 2019, consistent with the previous year[5]. - The sales and distribution expenses decreased by 13.62% to approximately HKD 7.61 million, down from HKD 8.81 million in the same period last year[52]. - The company incurred financing costs of HKD 3,072,000 for the six months ended June 30, 2019, compared to HKD 997,000 in the same period of 2018, representing a 208.5% increase[32]. - Capital expenditures for property, plant, and equipment amounted to approximately HKD 21.78 million for the six months ended June 30, 2019, down from HKD 25.20 million in the same period of 2018[39]. Market and Product Development - The company has developed a series of non-hazardous batteries under the "Source. Nature" brand, complying with EU and China regulations[18]. - The company operates in two main segments: disposable batteries and rechargeable batteries, with disposable batteries further divided into cylindrical and button cell batteries[17]. - The company plans to invest more resources into new product categories, including hearing aid batteries, and to promote disposable batteries in the healthcare equipment market[48]. - Revenue from the Hong Kong market increased to HKD 38,148,000 in 2019 from HKD 30,903,000 in 2018, marking a growth of 23.0%[31]. Employee and Governance - As of June 30, 2019, the group had a total of 572 employees, an increase from 523 employees on June 30, 2018[65]. - Employee costs, including director remuneration, were approximately HKD 25.52 million for the period, compared to HKD 24.11 million for the six months ended June 30, 2018[65]. - The audit committee, consisting of independent non-executive directors, ensures adequate financial controls and compliance with regulations[87]. - The financial results have not been audited but reviewed by the audit committee, confirming compliance with applicable accounting standards[87]. Risks and Compliance - The group faced foreign currency risks primarily due to business activities denominated in RMB, with most transactions, assets, and liabilities valued in RMB and HKD[69]. - The group’s earnings are influenced by customer purchasing patterns, and inaccuracies in sales forecasts may adversely affect business performance[68]. - The company has adhered to the corporate governance code principles and ensured high-quality board and transparency[84].

Financial Performance - The revenue for the fiscal year ended December 31, 2018, increased by approximately 6.35% to about HKD 323.53 million from approximately HKD 304.21 million in the previous fiscal year[10]. - The profit attributable to shareholders for the fiscal year was approximately HKD 6.20 million, a decrease of about 73.44% compared to HKD 23.32 million in the previous year[10]. - The company's gross profit for the year was approximately HKD 65.20 million, a decrease of about 18.55% from HKD 80.05 million in the previous year[23]. - Financing costs increased by 47.30% to approximately HKD 3.55 million, up from HKD 2.41 million in the previous year, primarily due to increased bank financing[25]. - The company's net profit attributable to shareholders was approximately HKD 6.20 million, a decrease of about 73.44% from HKD 23.32 million in the previous year[28]. - The company reported a significant increase in sales expenses by 16.98% to approximately HKD 16.87 million, driven by higher distribution and marketing costs[24]. - Gross margin decreased from 26.31% in 2017 to 20.15% in 2018, a reduction of 6.16% due to increased production costs including raw materials, labor, and indirect production expenses[34]. - Net profit margin fell by 5.76% to 1.91% in 2018 from 7.67% in 2017, primarily due to rising sales costs, selling expenses, general and administrative expenses, and financing costs[35]. - The debt-to-equity ratio increased from 0.32 in 2017 to 0.80 in 2018, an increase of 0.48, mainly due to increased bank loans during the year[36]. - Total equity as of December 31, 2018, was approximately HKD 250.89 million, compared to approximately HKD 245.70 million in 2017[38]. Market and Product Development - The company aims to expand its market share in the healthcare equipment market, targeting new revenue sources for better shareholder returns[15]. - The company has seen a slight increase in revenue from its mercury-free micro button battery business since the implementation of new EU directives[12]. - Revenue from cylindrical batteries increased by approximately HKD 24.36 million to about HKD 222.96 million, representing a growth of about 12.26%[18]. - Revenue from micro button batteries decreased by approximately HKD 2.47 million to about HKD 97.80 million, a decline of about 2.46%[19]. - Revenue from rechargeable batteries and other related products fell by approximately HKD 2.58 million to about HKD 2.77 million, a significant decrease of about 48.14%[19]. - The company plans to invest in production facilities and upgrade production lines to enhance capacity and efficiency, with a new automated production line for hearing aid batteries expected to start commercial production in Q3 2019[67]. - The company aims to expand into the global retail market with its own brand "Jinli" and targets entry into the healthcare equipment market in 2019 to generate new revenue streams[67]. - The company has launched a new series of environmentally friendly batteries, "Source.Nature," which are mercury-free, cadmium-free, and lead-free, responding to increasing market demand for non-toxic batteries[142]. - The upcoming hearing aid batteries are expected to generate new revenue streams for the company, contributing to community welfare by supporting products beneficial for the elderly or disabled individuals[142]. - The company is developing hearing aid batteries to meet the growing demand due to an aging population, with production lines currently being tested and expected to launch in 2019[160]. Corporate Governance - The company has complied with all applicable corporate governance code provisions during the year, reflecting its commitment to shareholder accountability[88]. - The independent non-executive directors represent more than one-third of the board, ensuring sufficient independent elements to protect shareholder interests[93]. - The board consists of seven members, including four executive directors and three independent non-executive directors, ensuring a diverse skill set and experience[93]. - The company has adopted a board diversity policy to enhance its competitive advantage and ensure a balanced combination of skills and expertise among directors[90]. - The board has a clear separation of roles between the chairman and the CEO, enhancing governance and decision-making processes[93]. - The company has implemented a comprehensive internal control system and accounting functions to ensure effective oversight[83]. - The company is committed to maintaining good corporate governance principles to safeguard shareholder rights and interests[87]. - The board of directors is responsible for corporate governance functions due to the absence of a corporate governance committee[101]. - The audit committee's terms of reference were revised to align with the latest corporate governance code[111]. - The audit committee reviewed the annual consolidated financial statements and confirmed compliance with applicable accounting standards and listing rules[107]. Environmental and Social Responsibility - The company has allocated resources to enhance operational and resource efficiency through the establishment of internal environmental and social policies[142]. - The company’s operations comply with local environmental, labor, and anti-corruption laws and regulations during the reporting period[142]. - The group has implemented energy-saving measures, including installing variable frequency drives, which are expected to save 43% of electricity for one manufacturing unit[194]. - The group has established real-time wastewater monitoring facilities at the Jiangmen factory, capable of processing two tons of wastewater daily[199]. - The group has maintained stable water usage efficiency despite an increase in total water consumption[196]. - The group emphasizes effective hazardous waste management policies to minimize environmental impact and ensure resource utilization[200]. - The group has engaged third-party environmental consultants to audit and report on its environmental performance[192]. - The group has invested in energy-saving and low-pollution materials to comply with local environmental regulations[192]. - The group has set up waste classification and recycling facilities on-site to reduce waste generation and optimize resource utilization[200]. - The company has launched the "Source. Nature" product series, aiming to provide high-performance, durable, safe, and environmentally friendly products, contributing to an increase in market share[160]. Employee Management and Development - The total employee count as of December 31, 2018, was 560, an increase from 512 in 2017, representing a growth of 9.36%[54]. - Employee costs for the year amounted to approximately HKD 49.25 million, up 13.72% from HKD 43.31 million in 2017[54]. - The average training hours for male employees is 20.0 hours, while female employees receive an average of 16.7 hours[177]. - Management-level employees receive an average of 22.2 training hours, while junior staff receive 21.3 hours[177]. - The company recorded zero fatalities and two work-related injury cases resulting in seven lost workdays during the reporting period[179]. - The workforce composition includes 54% female employees (305) and 46% male employees (255) as of 2018[183]. - Employees aged 31-50 years make up 55% (308) of the workforce, while those aged 18-30 years account for 15% (84)[183]. - The company has implemented safety training, including first aid and hazardous materials handling, to enhance employee safety knowledge[179]. - The company has a policy against discrimination and provides equal opportunities regardless of gender, religion, race, disability, or age[183]. - The company has established a communication channel for employees to express concerns and provide feedback through suggestion boxes[184]. Management and Leadership - The company has been led by Ms. Zhu Shuqing, who has over 31 years of experience in the disposable battery industry, since April 1, 2013[70]. - Mr. Deng Zhiqian has been the General Manager since April 1, 2013, overseeing production facilities in Dongguan and Jiangmen[71]. - The company has a strong management team with extensive experience in manufacturing, marketing, and finance, including Mr. Zhu Haohua, who is responsible for strategic sales and marketing plans[74]. - The company has been focusing on global procurement strategies to meet production needs, led by Ms. Zhu Shuwen, the Deputy General Manager since 2005[80]. - The company has been expanding its human resources and administrative management under Ms. Huang Yanshan, who has been the General Manager since 2018[80]. - The company has a commitment to quality control and production management in its Jiangmen facility, overseen by Mr. Liang Tao, the General Manager[79]. - The company has been actively developing new marketing opportunities and strategies to enhance its market presence[74]. - The company has established a research and development team to coordinate product development and design to meet market demands, conducting benchmarking tests against other battery products[168]. Shareholder Communication - The company maintains a commitment to high levels of transparency to strengthen investor relations, providing timely disclosures of corporate information[137]. - The company has established an open and effective investor communication policy, ensuring relevant business updates are shared with investors[137]. - The company’s annual general meeting provides a platform for communication between shareholders and the board, with the next meeting scheduled for May 16, 2019[132]. - The company has a structured process for shareholders to propose director nominations, which is available on its website[135]. - The company adopted a dividend policy on October 25, 2018, which considers factors such as financial performance, cash flow, distributable reserves, and future operations when declaring dividends[122].