香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 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） 截至二零二三年六月三十日止六個月的 中期業績公告 財務摘要 • 截至二零二三年六月三十日止六個月，本集團錄得未經審核收益約123.82百萬港 元（截至二零二二年六月三十日止六個月：約164.10百萬港元），較二零二二年同 期減少約24.55%。 • 截至二零二三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10.28 百萬港元，而截至二零二二年六月三十日止六個月則為本公司權益持有人應佔未 經審核虧損約6.55百萬港元。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，因為本集團的呈報貨幣為港元，而本集團有 一大部分資產以人民幣計值。 • 本期間毛利減少主要是由於銷售額下降所致。儘管毛利金額減少，但 ...

Financial Performance - Revenue for the fiscal year ended December 31, 2022, decreased by approximately 4.89% to about HKD 330.25 million from approximately HKD 347.22 million in the previous year[10] - The company reported a loss attributable to shareholders of approximately HKD 22.79 million, compared to a profit of approximately HKD 4.71 million in the previous year, resulting in a loss per share of HKD (6.33) compared to earnings per share of HKD 1.51 in the previous year[10] - The gross profit for the year was approximately HKD 71.54 million, down about 2.65% from HKD 73.49 million in the previous year[26] - Revenue from cylindrical batteries decreased by approximately HKD 16.71 million to about HKD 225.57 million, representing a decline of about 6.90% due to reduced demand in Europe, China, and Hong Kong[20] - Revenue from micro button batteries increased by approximately HKD 1.29 million to about HKD 99.47 million, reflecting a growth of about 1.32%[21] - Revenue from rechargeable batteries and other related products decreased by approximately HKD 1.55 million to about HKD 5.20 million, a decline of about 22.97%[21] - The company's financing costs increased by approximately 30.53% to about HKD 5.16 million due to rising interest rates[28] - The gross profit margin was maintained at a level comparable to the previous year despite pressures from foreign exchange fluctuations, rising interest rates, and increased labor costs in China[11] Strategic Initiatives - The company plans to enhance financial performance by tightening cost control, upgrading production automation, and improving production efficiency in 2023[12] - The company aims to expand its disposable battery production efficiency, anticipating steady growth in demand from OEM customers as overall market demand for disposable batteries increases[15] - The company will continue to simplify its operational structure in China to maintain competitiveness and implement restructuring of subsidiaries for cost control[15] - The board plans to enhance production capacity and efficiency while exploring new business opportunities to diversify revenue sources[16] - A new automated production line for cylindrical batteries is expected to begin trial operations in the first half of 2023, with commercial production anticipated by the end of 2023[16] Market Challenges - The ongoing military conflict between Russia and Ukraine poses potential threats to the company's revenue in the European and American markets due to inflation and rising interest rates[12] - The company expects commodity prices and logistics costs to gradually decline in 2023, with a downward trend already evident by the end of 2022[12] Governance and Management - The company has a strong leadership team with extensive experience in the disposable battery industry, with the chairman having over 47 years and the CEO over 35 years of experience[71][72] - The company has a comprehensive management structure with executives responsible for various operational aspects, including production facilities in Dongguan and Jiangmen[73][82] - The board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring a diverse governance structure[101] - The independent non-executive directors represent at least one-third of the board, complying with listing rules, which enhances shareholder protection[102] - The company has implemented mechanisms to ensure strong independence within the board, including the appointment of at least three independent non-executive directors[114] Environmental, Social, and Governance (ESG) Commitments - The company is committed to environmental, social, and governance (ESG) initiatives, with a dedicated committee overseeing these efforts[73] - The company emphasizes the production of eco-friendly batteries, specifically the "Source. Nature" series, which are free from harmful substances such as mercury, cadmium, and lead[168] - The company has established an Environmental, Social, and Governance (ESG) committee to monitor sustainability-related matters during the reporting period[175] - The ESG Committee is tasked with reviewing and recommending the company's ESG strategies, initiatives, and policies to the board, ensuring alignment with operational and regulatory risks[136] - The company received the Nordic Swan certification from the Swedish Environmental Marking Organization, recognizing its commitment to environmental management[199] Employee Relations and Diversity - Employee costs for the year amounted to approximately HKD 46.59 million, a decrease of about 12.67% from HKD 53.35 million in the previous year, with a total of 475 employees as of December 31, 2022[55] - The company maintains good relationships with employees, customers, and suppliers, and has successfully retained a number of customers for over five years, including major clients[63] - The board includes one female member, achieving gender diversity as per the company's policy[97] - The company has implemented a diversity policy for its board members, ensuring a balance of skills, experience, and perspectives[94] Risk Management - The board is responsible for overseeing the group's risk management and internal control systems, which are reviewed annually for effectiveness[149] - The group has adopted a risk management policy aimed at ensuring sustainable growth and addressing business-related risks proactively[150] Shareholder Engagement - The company maintains a high level of transparency in investor relations, providing timely disclosures through annual reports and other announcements[159] - The company has adopted a shareholder communication policy to facilitate engagement between shareholders and management, including the ability to submit questions and suggestions[163] - Shareholders have the right to request a special general meeting if they hold at least 10% of the paid-up capital, and such a meeting must be held within two months of the request[154]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 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） 截至二零二二年十二月三十一日止年度的 年度業績公告 財務摘要 • 本集團於本年度錄得收益約330.25百萬港元（二零二一年：約347.22百萬港元），較 上年度減少約4.89%。 • 本年度的本公司股東應佔虧損約為22.79百萬港元（二零二一年：股東應佔溢利約 4.71百萬港元），由盈轉虧，主要是受以下各項的綜合影響所致：(i)收益減少約 16.97百萬港元，導致毛利較上年度減少約1.95百萬港元；(ii)人民幣（「人民幣」）兌 港元貶值，導致本集團於二零二二年錄得匯兌虧損及對沖虧損；(iii)本集團持有的 投資物業權益產生公平值虧損；及(iv)本集團持有的投資物業產生的租金收入減少。 • 於本年度的每股基本虧損為(6.33)港仙（二零二 ...

Financial Performance - For the six months ended June 30, 2022, Golden Power Group Holdings Limited recorded unaudited revenue of approximately HKD 164.10 million, a decrease of about 7.64% compared to HKD 177.68 million for the same period in 2021[2] - The company reported an unaudited loss attributable to equity holders of approximately HKD 6.55 million for the six months ended June 30, 2022, compared to an unaudited profit of HKD 1.65 million for the same period in 2021[2] - The basic loss per share for the six months ended June 30, 2022, was (1.82) HKD cents, compared to a basic earnings per share of 0.62 HKD cents for the same period in 2021[3] - The total comprehensive loss attributable to equity holders for the period was HKD 8.82 million, compared to a total comprehensive income of HKD 2.93 million for the same period in 2021[6] - The company reported a loss before tax of HKD 7,674,000 for the first half of 2022, compared to a profit before tax of HKD 2,116,000 in the same period of 2021[25] - The net loss attributable to equity holders for the six months ended June 30, 2022, was HKD 6,554,000, compared to a profit of HKD 1,647,000 for the same period in 2021[32] Assets and Liabilities - As of June 30, 2022, the total assets less current liabilities amounted to HKD 344.72 million, a decrease from HKD 368.80 million as of December 31, 2021[8] - The cash and cash equivalents at the end of the period were HKD 20.29 million, down from HKD 36.63 million at the beginning of the period[10] - The net current liabilities as of June 30, 2022, were HKD 134.73 million, with unused bank financing of HKD 25.86 million available[20] - The total equity amounted to HKD 306.261 million, a decrease from HKD 315.084 million at the beginning of the year[12] - The company's debt as of June 30, 2022, was approximately HKD 218.41 million, a slight decrease from HKD 226.17 million as of December 31, 2021, with a debt ratio of approximately 0.56[51] - The group's debt-to-equity ratio was approximately 0.85 as of June 30, 2022, slightly down from 0.86 as of December 31, 2021[55] Inventory and Receivables - The group’s inventory increased to HKD 88.16 million as of June 30, 2022, compared to HKD 60.05 million as of December 31, 2021[8] - Trade receivables and bills receivable totaled HKD 58,977,000 as of June 30, 2022, compared to HKD 53,702,000 as of December 31, 2021[33] - Trade payables increased to HKD 120.39 million as of June 30, 2022, from HKD 78.58 million as of December 31, 2021, reflecting a significant rise in short-term liabilities[12] Revenue Breakdown - The company’s revenue from the Chinese market decreased to HKD 51,069,000 in 2022 from HKD 63,176,000 in 2021, representing a decline of 19.1%[24] - Revenue from cylindrical batteries decreased by approximately HKD 20.44 million, or 16.35%, primarily due to reduced sales in China and Hong Kong[40] - Revenue from micro button batteries and rechargeable batteries increased by approximately HKD 6.86 million, or 13.01%, attributed to sales growth in Australia, Europe, and North America[40] Operational Highlights - The company has developed a series of non-toxic batteries under the "Source. Nature" brand, aligning with global trends towards environmentally friendly products[15] - The company is focusing on expanding its production capacity and improving efficiency through the acquisition of new machinery and facilities[31] - The company plans to continue investing in new product categories, including hearing aid batteries, and to promote sales in the healthcare equipment market[43] Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2022, was HKD 1.65 million, compared to cash used of HKD 3.61 million in the same period of 2021[10] - The company raised approximately HKD 39.60 million through a rights issue, with a net amount of about HKD 35.50 million after expenses[70] - As of June 30, 2022, the company utilized HKD 20.0 million for repaying bank loans, HKD 11.9 million for upgrading equipment, and HKD 3.6 million for general working capital[70] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring high standards of governance and transparency[87] - The audit committee, established on May 15, 2015, consists of three independent non-executive directors, ensuring compliance with listing rules[91] - The audit committee has reviewed the financial results, confirming adherence to applicable accounting standards and legal requirements[91] Shareholder Information - The chairman, Zhu Jingdian, holds 203,400,000 shares, representing 56.5% of the company's total shares[73] - Executive director Zhu Shuqing owns 43,600,000 shares, accounting for 12.11% of the total shares[73] - The company has no knowledge of any other individuals holding significant interests in its shares as of June 30, 2022[81] Risks and Challenges - The group faced various risks, including potential impacts from public health events and fluctuations in customer purchasing patterns, which could adversely affect its business and financial performance[64]

年 報 G olden P 2021 年 報 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 ANNUAL REPORT 2021 o wer Group H oldi n gs Limited 金力集團控股有限 公 司 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 2021 Annual Report 目錄 | 2 | 公司資料 | | --- | --- | | 3 | 主席報告 | | 5 | 管理層討論及分析 | | 12 | 董事及高級管理層履歷詳情 | | 16 | 企業管治報告 | | 29 | 環境、社會及管治報告 | | 54 | 董事會報告 | | 64 | 獨立核數師報告 | | 68 | 綜合損益表 | | 69 | 綜合全面收益表 | | 70 | 綜合財務狀況表 | | 72 | ...

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].

Financial Performance - For the six months ended June 30, 2020, the group recorded unaudited revenue of approximately HKD 148.36 million, a decrease of about 5.15% compared to HKD 156.41 million for the same period in 2019[4] - The profit attributable to equity holders for the six months ended June 30, 2020, was approximately HKD 4.16 million, representing an increase of about 49.64% from HKD 2.78 million for the same period in 2019[4] - Basic earnings per share for the six months ended June 30, 2020, was 1.73 HK cents, compared to 1.16 HK cents for the same period in 2019[4] - The group reported a gross profit of HKD 39.46 million for the six months ended June 30, 2020, compared to HKD 35.82 million for the same period in 2019, indicating an increase in gross profit margin[6] - The net cash generated from operating activities for the six months ended June 30, 2020, was HKD 14.53 million, compared to HKD 7.65 million for the same period in 2019[13] - The net profit for the period was HKD 4,159,000, compared to HKD 2,775,000 for the same period in 2019, representing an increase of 50%[24] - Gross profit for the period was approximately HKD 39.46 million, representing an increase of about 10.16% from HKD 35.82 million in the same period of 2019[44] - Selling expenses increased by 25.10% to approximately HKD 9.52 million, compared to HKD 7.61 million in the corresponding period of 2019[46] Revenue Breakdown - The segment revenue for disposable batteries was HKD 91,814,000, while rechargeable batteries and other related products generated HKD 52,088,000 and HKD 4,460,000 respectively[24] - Revenue from the Hong Kong market decreased significantly from HKD 38,148,000 in 2019 to HKD 18,901,000 in 2020, a decline of 50.5%[26] - Revenue from the European market increased from HKD 17,121,000 in 2019 to HKD 34,039,000 in 2020, showing a growth of 99.5%[26] - Sales of cylindrical batteries decreased by approximately HKD 16,600,000, or 15.31%, primarily due to reduced sales in China, Australia, Hong Kong, North America, and the Middle East[39] - Revenue from micro button batteries and rechargeable batteries increased by approximately HKD 8,550,000, or 17.81%, driven by sales growth in Asia, China, and Europe[39] Assets and Liabilities - The total assets less current liabilities as of June 30, 2020, amounted to HKD 317.06 million, an increase from HKD 305.33 million as of December 31, 2019[11] - The group's net current liabilities as of June 30, 2020, were HKD 95.57 million, with unutilized bank financing amounting to HKD 18.42 million[21] - Trade receivables increased to HKD 58,390,000 as of June 30, 2020, compared to HKD 47,835,000 at the end of 2019, an increase of approximately 22.08%[36] - Trade payables rose to HKD 80,611,000 as of June 30, 2020, compared to HKD 72,532,000 at the end of 2019, an increase of approximately 11.14%[36] - As of June 30, 2020, the company's borrowings were approximately HKD 187.72 million, slightly up from HKD 187.45 million as of December 31, 2019[48] Cash and Equity - The cash and cash equivalents at the end of the period were HKD 16.71 million, a decrease from HKD 23.80 million at the end of the same period in 2019[13] - The group’s total equity as of June 30, 2020, was HKD 259.48 million, compared to HKD 254.80 million as of December 31, 2019[11] - The total equity attributable to shareholders was approximately HKD 259.48 million as of June 30, 2020, compared to HKD 254.80 million as of December 31, 2019[50] - The debt ratio was approximately 0.53 as of June 30, 2020, unchanged from December 31, 2019[48] Dividends and Shareholder Information - The group did not declare an interim dividend for the six months ended June 30, 2020, consistent with the previous year[4] - The company did not declare any interim dividends for the six months ended June 30, 2020, consistent with the previous year[34] - As of June 30, 2020, the chairman and executive director, Zhu Jingdian, holds 130,500,000 shares, representing 54.38% of the total shares[66] Risks and Challenges - The group faces significant risks from potential production halts due to government health measures, which could adversely affect operations and financial performance[58] - The group has no long-term sales contracts with major customers, which poses a risk if relationships deteriorate or if major customers significantly reduce orders[58] - The group’s earnings are denominated in RMB, HKD, and USD, with sales costs primarily in RMB, exposing it to currency fluctuation risks[62] - The group’s sales forecasts are based on historical purchasing patterns, which may lead to adverse effects if actual orders do not meet expectations[61] Corporate Governance and Compliance - The company has adopted a corporate governance code to ensure high standards of governance and transparency, with compliance confirmed by the board during the reporting period[77] - The audit committee, established on May 15, 2015, consists of three independent non-executive directors and is responsible for ensuring adequate financial monitoring and compliance with regulations[81] - The interim results have not been audited but have been reviewed by the audit committee, which believes they comply with applicable accounting standards and regulations[83] Future Plans and Developments - The company plans to invest more resources in new product categories, including hearing aid batteries and disposable batteries for healthcare equipment[42] - The company has developed a series of non-hazardous batteries under the "Source. Nature" brand, aligning with global trends towards environmentally friendly products[18] Other Information - The group has not experienced any significant financial impact from the adoption of new and revised Hong Kong Financial Reporting Standards[20] - The company continues to assess the impact of new accounting standards on its performance and financial position[20] - Total interest expenses decreased from HKD 3,072,000 in 2019 to HKD 1,132,000 in 2020, a reduction of approximately 63.16%[29] - Total tax expenses increased from HKD 587,000 in 2019 to HKD 1,552,000 in 2020, reflecting a rise of approximately 164.10%[29] - The company acquired property, plant, and equipment for approximately HKD 14,630,000 during the period, down from HKD 21,780,000 in 2019, indicating a decrease of about 32.50%[34] - The company had a total of 541 employees as of June 30, 2020, down from 572 employees in the same period of 2019[57] - As of June 30, 2020, the group had a net amount of approximately HKD 40.16 million from the IPO, which has been utilized according to the prospectus[63] - The net amount from the rights issue was approximately HKD 31 million, fully utilized by December 31, 2017, according to the rights issue prospectus[65] - No significant events occurred after the reporting period up to the date of this report[73] - The company has adopted a stock option plan approved by the sole shareholder on May 15, 2015, with no stock options granted or exercised as of the report date[75] - The company has implemented a standard code for securities trading by directors, confirming compliance by all directors during the reporting period[76]

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].