Financial Performance - The group's total revenue for the fiscal year ending December 31, 2024, reached approximately HKD 833.9 million, a significant increase compared to HKD 691.1 million in 2023[10]. - The net profit attributable to shareholders for the year was approximately HKD 21.8 million, recovering from a loss of HKD 14.8 million in the previous year[10]. - For the fiscal year ending December 31, 2024, the company reported a revenue increase of approximately 20.7%, rising from about HKD 691.1 million to approximately HKD 833.9 million[28]. - The increase in revenue was attributed to a shift in consumer spending trends towards more personalized products, resulting in increased orders from American customers[28]. - Gross profit increased by approximately 15.1% to about HKD 206.9 million, while gross margin decreased by about 1.2 percentage points to approximately 24.8%[29]. - The company reported a total comprehensive income of HKD 17,083,000 for the year, compared to a loss of HKD 15,470,000 in 2023[179]. - The company reported a net profit of HKD 21,835,000 for the year ending December 31, 2024, compared to a loss of HKD 14,829,000 in the previous year[184]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.04 per share to reward shareholders for their support[10]. - The company proposed a final dividend of HKD 0.04 per share for the year ending December 31, 2024, compared to HKD 0.02 per share in 2023[110]. - The company paid dividends of HKD 14,000,000 to shareholders, down from HKD 21,000,000 in the previous year[188]. Assets and Liabilities - Non-current assets decreased to HKD 282.7 million from HKD 290.3 million in 2023, while current assets also saw a decline to HKD 497.6 million from HKD 514.0 million[6]. - Total assets as of December 31, 2024, were HKD 780,289,000, a decrease from HKD 804,312,000 in 2023[180]. - The company's equity totalled HKD 585,026,000 as of December 31, 2024, down from HKD 604,596,000 in 2023[182]. - The debt-to-equity ratio as of December 31, 2024, was approximately 22.5%, compared to 21.0% in the previous year[42]. - The debt-to-asset ratio increased from approximately 21.0% in 2023 to about 22.5% in 2024, an increase of 1.5 percentage points[98]. Market Strategy and Expansion - The group plans to launch several new products in 2025, focusing on drinkware and storage products, and aims to integrate IoT technology into lifestyle products[14]. - The group is expanding its market presence in the Asia-Pacific region and enhancing partnerships with existing customers[14]. - The group aims to further expand its business scale in the Chinese market through collaborations with local chain stores[14]. - The company has established a supply chain system outside of China to mitigate the impact of uncertainties in U.S. tariff policies[11]. Governance and Compliance - The board consists of two executive directors and four independent non-executive directors, ensuring a balance of power and authority[48]. - The company has adopted the corporate governance code and has complied with it, except for the provision that the roles of chairman and CEO should be separated[48]. - The board has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee to oversee various aspects of the company[50]. - All directors confirmed compliance with the standard code for securities trading throughout the year[49]. - The company has established a risk management and internal control system to ensure compliance and operational effectiveness[77]. Employee and Talent Management - The total employee cost for the year ending December 31, 2024, was approximately HKD 60.8 million, compared to HKD 57.8 million for the year ending December 31, 2023, reflecting an increase of about 5.2%[145]. - The group had approximately 152 employees as of December 31, 2024, a slight decrease from 154 employees as of December 31, 2023[145]. - The company provides competitive compensation and performance rewards to retain top talent, including salary, medical insurance, and long-term service awards[105]. Risk Management - The company continues to monitor risks such as foreign currency risk, credit risk, and market uncertainties that may impact profitability[93]. - The global market and operating environment remain unstable due to high inflation, tightening monetary policies, and geopolitical tensions[27]. - The company is adopting a cautious financial strategy to navigate potential market fluctuations and geopolitical tensions[11]. Environmental and Social Responsibility - The company has established an environmental policy aimed at reducing carbon emissions and promoting recycling initiatives[100]. - Charitable donations and other contributions totaled HKD 4,110,000 for the year, up from HKD 3,498,000 in 2023[121]. Audit and Financial Reporting - The financial statements for the year ending December 31, 2024, were audited by Hong Kong Li Xin De Hao CPA Limited[158]. - The audit report provides reasonable assurance that the financial statements are free from material misstatement due to fraud or error[173]. - The board is responsible for preparing the financial statements in accordance with the Hong Kong Financial Reporting Standards and ensuring the accuracy of the financial reporting process[171].

Financial Results - King's Flair International (Holdings) Limited announced the final results for the year ending December 31, 2024, on March 24, 2025[3]. Dividend Information - The proposed final dividend will be paid to shareholders listed on the register as of June 26, 2025, instead of June 27, 2025, as previously stated[3]. Board Composition - The board of directors includes two executive directors and four independent non-executive directors[6].

Financial Performance - Total revenue for the year ended December 31, 2024, was HKD 833,909,000, representing a 20.6% increase from HKD 691,143,000 in 2023[2] - Gross profit for the same period was HKD 206,935,000, up from HKD 179,673,000, indicating a gross margin improvement[2] - The net profit attributable to the owners of the company for 2024 was HKD 20,189,000, compared to a loss of HKD 13,581,000 in 2023, marking a significant turnaround[3] - Earnings per share for 2024 was HKD 3.1, compared to a loss per share of HKD 2.1 in the previous year[3] - The company reported a total comprehensive income of HKD 17,083,000 for 2024, compared to a loss of HKD 15,470,000 in 2023[3] - The group reported a basic profit attributable to shareholders of approximately HKD 21,835,000 for the year ended December 31, 2024, compared to a loss of HKD 14,829,000 in 2023[41] - Other income turned positive at HKD 2.1 million, compared to a loss of HKD 11.9 million in 2023, mainly due to reduced investment property fair value losses[57] Assets and Liabilities - Total assets as of December 31, 2024, were HKD 608,211,000, down from HKD 630,132,000 in 2023[7] - Current liabilities decreased to HKD 325,541,000 from HKD 339,841,000 in the previous year, reflecting improved liquidity management[7] - The total liabilities for the company as of December 31, 2024, were HKD 195,263 thousand, down from HKD 199,716 thousand in 2023[25] - Trade receivables increased to HKD 201,853,000 in 2024 from HKD 137,786,000 in 2023, with a provision for impairment of HKD 3,684,000[45] - The group’s trade payables decreased to HKD 39,918,000 in 2024 from HKD 50,011,000 in 2023, indicating improved cash flow management[48] Revenue Segmentation - Sales of kitchenware and household products contributed HKD 786,580,000 to the total revenue in 2024, up from HKD 642,212,000 in 2023, representing a growth of 22.4%[30] - The segment performance for kitchen and household goods sales showed a profit of HKD 33,139 thousand in 2024, compared to a loss of HKD 3,925 thousand in 2023[24] - The company has two operating segments: kitchen and household goods sales, and raw materials trading, with no inter-segment sales reported[23] Cost Management - Distribution expenses slightly decreased to HKD 41,192,000 from HKD 42,986,000, indicating cost control efforts[2] - The group’s administrative expenses for the year ended December 31, 2024, were approximately HKD 52,153,000, compared to HKD 49,195,000 in 2023[36] - The company reported a significant reduction in research expenses, which fell to HKD 1,048,000 in 2024 from HKD 5,058,000 in 2023, a decrease of 79.3%[32] Future Outlook and Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth[2] - The company plans to launch several new products in the beverage and storage categories in 2025, integrating IoT technology to meet changing consumer demands[63] - The company aims to strengthen relationships with existing customers and actively explore new markets, particularly in the Asia-Pacific region[63] - The outlook for 2025 anticipates a cautious financial strategy to enhance operational efficiency amid global economic challenges[62] Corporate Governance - The company maintains a high level of corporate governance, with a board consisting of two executive directors and four independent non-executive directors[78] - The board believes that having one person serve as both chairman and CEO ensures consistent leadership and effective strategic planning[79] - An audit committee has been established to assist the board in reviewing financial reporting processes, internal controls, and risk management systems[81] Employee and Operational Metrics - The group's employee count as of December 31, 2024, is approximately 152, a slight decrease from 154 in 2023, with total employee costs amounting to approximately HKD 60.8 million, up from HKD 57.8 million in 2023[66] - The group’s employee benefits expenses for distribution were approximately HKD 8,689,000 in 2024, slightly up from HKD 8,635,000 in 2023[36] Financial Position and Commitments - The group's capital commitments as of December 31, 2024, are approximately HKD 2.0 million, significantly reduced from HKD 16.0 million in 2023, indicating a shift in investment strategy[74] - The group has no significant contingent liabilities as of December 31, 2024, maintaining a stable financial position[73]

Financial Performance - For the six months ended June 30, 2024, the group's revenue was approximately HKD 332.9 million, a slight decrease of about 0.4% compared to HKD 334.3 million for the same period in 2023[5]. - Gross profit increased by approximately 2.1% to about HKD 87.5 million, with a gross margin improvement of about 0.7 percentage points to approximately 26.3%[6]. - Profit attributable to owners of the company decreased by approximately 54.7% to about HKD 3.4 million, primarily due to ongoing fair value losses on investment properties and increased withholding tax on dividends declared in mainland China[12]. - The company recorded a profit before tax of HKD 7,651,000, down 17.6% from HKD 9,290,000 in the previous year[52]. - Net profit for the period was HKD 2,092,000, a significant decline of 78.3% compared to HKD 9,639,000 in the prior year[52]. - The total comprehensive income for the period was HKD (39,000), a decrease from HKD 6,976,000 in the same period last year[52]. - Basic and diluted earnings per share were both HKD 0.5, down from HKD 1.1 in the previous year[52]. Revenue Breakdown - Revenue from external customers for the six months ended June 30, 2024, was HKD 312,985,000, a slight increase from HKD 309,394,000 in the same period of 2023, representing a growth of approximately 0.5%[71]. - Revenue from the United States increased to HKD 181,110,000, up 4.3% from HKD 173,678,000 year-over-year[80]. - Revenue from Asia decreased to HKD 85,766,000, down 9.0% from HKD 94,254,000 in the previous year[80]. - Major customers contributed significantly to revenue, with Company A generating HKD 74,917,000 and Company B generating HKD 35,105,000[81]. Expenses and Costs - Other income and net gains decreased by approximately 51.7% to about HKD 3.7 million, primarily due to fair value losses on investment properties and reduced government subsidies[7]. - Distribution expenses decreased by approximately 9.3% to about HKD 19.6 million, attributed to stricter cost control measures and reduced costs in mainland China due to RMB depreciation[8]. - Financing costs rose by approximately 8.9% to about HKD 3.6 million, mainly due to increased bank borrowing rates and higher usage of short-term trade credit[11]. - The cost of goods sold for the period was HKD 233,612,000, compared to HKD 237,326,000 in the same period last year, reflecting a decrease of 1.5%[88]. - The income tax expense for the period was HKD 5,559,000, compared to a tax credit of HKD 349,000 in the same period last year[90]. Cash Flow and Financing - The group recorded a net cash outflow from financing activities of approximately HKD 26.6 million for the six months ended June 30, 2024, compared to HKD 12.1 million for the same period last year, primarily due to repayment of bank borrowings and dividends paid to non-controlling interests[22]. - The group reported cash used in operating activities of approximately HKD 24.5 million for the six months ended June 30, 2024, significantly higher than HKD 3.9 million for the same period last year, mainly due to large customer orders received near the reporting date[20]. - The financing activities resulted in a net cash outflow of HKD 26,627,000, compared to HKD 12,083,000 in the prior year, indicating increased financing costs[63]. - As of June 30, 2024, the group's cash and bank balances were approximately HKD 110.2 million, down from HKD 155.8 million as of December 31, 2023, while bank borrowings increased to approximately HKD 94.5 million from HKD 89.8 million[19]. Assets and Liabilities - Total assets as of June 30, 2024, were HKD 1,063,925,000, compared to HKD 1,144,617,000 as of December 31, 2023[55]. - The company's net asset value decreased to HKD 567,780,000 from HKD 604,596,000 at the end of 2023[58]. - The group’s total liabilities as of June 30, 2024, were HKD 195,594,000, a slight decrease from HKD 199,716,000 as of December 31, 2023, representing a reduction of approximately 2.2%[74]. - The group’s debt-to-equity ratio as of June 30, 2024, was approximately 22.4%, up from 21.0% as of December 31, 2023, and the ratio excluding lease liabilities was approximately 17.3% compared to 15.5%[23]. Employee and Management - As of June 30, 2024, the total number of employees is approximately 163, an increase from 154 as of June 30, 2023, with total employee costs amounting to approximately HKD 31.3 million compared to HKD 30.3 million for the same period last year[15]. - The total remuneration for key management personnel was HKD 3,195,000 for the six months ended June 30, 2024, compared to HKD 3,135,000 in the same period of 2023, showing a slight increase of 1.9%[121]. Share Capital and Ownership - As of June 30, 2024, the company has a total of 525,000,000 shares held by major shareholders, representing 75% of the issued share capital[37]. - First Concord Limited holds 105,000,000 shares (15%) and City Concord Limited holds 420,000,000 shares (60%) of the company[41]. - The company has sufficient public float, with at least 25% of its issued share capital held by the public[38]. - The company’s issued and fully paid share capital remained at 700,000,000 shares, with a par value of HKD 0.01 per share[109]. Research and Development - The company is expanding its product portfolio with advanced designs and eco-friendly materials to meet changing customer and market demands[13]. - Research expenses decreased significantly to HKD 108,000 in 2024 from HKD 1,018,000 in 2023, indicating a reduction of about 89.4%[77]. Market Strategy - The company aims to strengthen stakeholder relationships and explore new market opportunities to solidify its position as a global industry leader[13]. - The focus on high-margin products and new market development prepares the company to respond to market fluctuations and achieve sustainable growth[13].

Revenue and Profitability - Revenue for the six months ended June 30, 2024, was HKD 332,923, a decrease of 0.4% compared to HKD 334,287 in the same period of 2023[1] - Profit attributable to owners of the company decreased by 54.7% to HKD 3,426 from HKD 7,567 in the previous year[1] - Basic and diluted earnings per share were HKD 0.5, down from HKD 1.1 in the same period last year[4] - Total revenue from external customers for the six months ended June 30, 2024, was HKD 332,923,000, compared to HKD 334,287,000 for the same period in 2023, representing a slight decrease of 0.4%[14] - The segment performance for kitchen and household goods sales was HKD 9,582,000 for the six months ended June 30, 2024, down from HKD 12,474,000 in 2023, indicating a decline of 23.5%[14] - Other income and net profit decreased by approximately 51.7% to about HKD 3.7 million, primarily due to fair value losses on investment properties and reduced government subsidies[43] - Profit attributable to the company's owners decreased by approximately 54.7% to about HKD 3.4 million, primarily due to ongoing fair value losses on investment properties and increased tax expenses[47] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 471,634, compared to HKD 514,021 as of December 31, 2023[5] - Current liabilities decreased slightly to HKD 172,083 from HKD 174,180 at the end of 2023[6] - Non-current liabilities decreased to HKD 23,511 from HKD 25,536 at the end of 2023[6] - The company reported a net asset value of HKD 567,780 as of June 30, 2024, down from HKD 604,596 at the end of 2023[6] - The group reported a total liability of HKD 195,594,000 as of June 30, 2024, compared to HKD 199,716,000 as of December 31, 2023, showing a decrease of 2.2%[14] - The asset-liability ratio was approximately 22.4% as of June 30, 2024, compared to 21.0% as of December 31, 2023[56] Operational Performance - The company’s main business remains in the trading of kitchenware and household products, with no significant operational changes reported during the period[7] - The company continues to focus on investment holding and has maintained its primary business activities in retail, wholesale, and distribution[7] - The group has two operating segments: kitchen and household goods sales, and raw materials trading, with no inter-segment sales reported for the period[12][13] - The group did not adopt any new or revised Hong Kong Financial Reporting Standards that would have a significant impact on the financial statements during the interim period[11] Expenses and Costs - The group’s unallocated expenses for the six months ended June 30, 2024, were HKD (2,502,000), compared to HKD (3,118,000) for the same period in 2023, indicating a reduction of 19.7%[14] - Distribution expenses decreased by approximately 9.3% to about HKD 19.6 million, attributed to stricter cost control measures and reduced costs in mainland China due to RMB depreciation[44] - Employee benefits expenses totaled HKD 31,251,000, an increase from HKD 30,269,000 in the previous year[24] - The group’s research expenses decreased to HKD 108,000 in 2024 from HKD 1,018,000 in 2023, a decline of 89.4%[23] - Financing costs increased by approximately 8.9% to about HKD 3.6 million, mainly due to rising bank borrowing rates and increased use of short-term trade credit[46] Cash Flow and Financing - The group's cash and bank balances were approximately HKD 110.2 million as of June 30, 2024, down from HKD 155.8 million as of December 31, 2023[54] - Bank borrowings stood at approximately HKD 94.5 million as of June 30, 2024, compared to HKD 89.8 million as of December 31, 2023, with interest rates ranging from 3.13% to 6.48%[54] - The group recorded a cash outflow of approximately HKD 26.6 million from financing activities for the six months ended June 30, 2024, compared to HKD 12.1 million for the same period in 2023[55] - The group had bank financing available totaling approximately HKD 518.8 million as of June 30, 2024, with a utilization rate of about 18.2%[57] Investments and Future Plans - The company is preparing to contribute to growth driven by innovative technologies in the household goods sector, with plans to expand its product portfolio using advanced designs and eco-friendly materials[48] - The advanced manufacturing center's nano production line in the industrial estate has officially commenced operations, enhancing production efficiency and enabling the production of precision innovative products[48] - The company aims to strengthen its position as an industry leader by integrating advanced nano materials to enhance product functionality, durability, and performance[49] - The company is committed to building strong and long-term partnerships with stakeholders to explore new market opportunities, ensuring sustained value for shareholders[49] Employee Information - As of June 30, 2024, the total employee count was approximately 163, an increase from 154 as of June 30, 2023[50] - Total employee costs, including director remuneration, amounted to approximately HKD 31.3 million for the six months ended June 30, 2024, compared to HKD 30.3 million for the same period in 2023[50] Audit and Governance - The audit committee has reviewed the unaudited interim financial statements for the six months ending June 30, 2024, ensuring compliance with accounting principles and practices[64] - The board consists of two executive directors and four independent non-executive directors, maintaining a balance of power and authority[62] Dividends and Shareholder Returns - The group did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[28] - The company has not declared an interim dividend for the six months ending June 30, 2024, consistent with the previous period where no dividend was declared[65]

Financial Performance - For the year ended December 31, 2023, the group recorded a revenue decrease of approximately 25.3% to about HKD 691.1 million, down from approximately HKD 925.7 million in 2022[1]. - Gross profit declined by approximately 9.7% to about HKD 179.7 million, while gross margin improved by approximately 4.5 percentage points to about 26.0%[2]. - The group reported a loss attributable to owners of approximately HKD 14.8 million, a decrease of approximately 163.8% from a profit of HKD 23.2 million in 2022[19]. - The company reported a loss before tax of HKD 9,210,000 for 2023, compared to a profit of HKD 35,783,000 in the previous year[93]. - The net loss attributable to the company’s owners for 2023 was HKD 14,829,000, a significant decline from a profit of HKD 23,248,000 in 2022[99]. - The company’s financial performance has shown a downward trend over the past five years, with revenue decreasing from HKD 1,540,412,000 in 2019 to HKD 691,143,000 in 2023[93]. - The total revenue for the fiscal year 2023 decreased by approximately 25.3% to around HKD 691.1 million, compared to HKD 925.7 million in 2022[114]. Expenses and Costs - Other income and losses decreased by approximately 277.6%, resulting in a loss of about HKD 11.9 million, primarily due to significant fair value losses on investment properties[3]. - Distribution expenses decreased by approximately 4.4% to about HKD 43.0 million, attributed to reduced marketing and transportation costs[4]. - Administrative expenses increased by approximately 3.1% to about HKD 127.9 million, mainly due to provisions for impairment of trade receivables[5]. - Financing costs rose by approximately 196.2% to about HKD 7.7 million, driven by increased bank borrowing rates related to lease liabilities[6]. - Total employee costs, including director remuneration, amounted to approximately HKD 57.8 million for the year ending December 31, 2023, compared to HKD 63.1 million for the previous year[148]. Cash Flow and Assets - As of December 31, 2023, the company's cash and bank balances were approximately HKD 155.8 million, down from HKD 229.6 million in 2022[32]. - The company's bank borrowings increased to approximately HKD 89.8 million as of December 31, 2023, compared to approximately HKD 45.5 million in 2022[32]. - The asset-liability ratio increased from approximately 20.6% in 2022 to approximately 21.0% in 2023, representing an increase of 0.4 percentage points[38]. - Non-current assets amounted to HKD 290,291 million, while current assets were HKD 514,021 million[100]. - Current liabilities stood at HKD 174,180 million, resulting in a net current asset value of HKD 339,841 million[100]. - Non-current liabilities were reported at HKD 25,536 million, contributing to a total asset value of HKD 604,596 million[100]. Market and Economic Conditions - The outlook for 2024 remains challenging, with expectations of continued economic pressure due to high inflation and tightening monetary policies[20]. - The global market and operational environment remain unstable due to rising inflation rates, tightening monetary policies, and geopolitical tensions, impacting consumer behavior in North America[66]. - The North American retail market for mid-to-high priced household and drinking utensils continues to shrink, leading to reduced orders from key customers[66]. - The company faced challenges due to high inflation and interest rates, impacting consumer confidence in North America and Europe[114]. - The local market downturn significantly affected the value of the group's asset portfolio[114]. - The company noted that weak consumer sentiment led to high distributor inventory levels, tightening stock and reducing orders[114]. Corporate Governance - The board consists of two executive directors and three independent non-executive directors, ensuring a balanced governance structure[48]. - The company has adopted the corporate governance code and has complied with it, except for the separation of the roles of chairman and CEO, which are held by the same individual[46]. - The company has established four board committees: audit committee, remuneration committee, nomination committee, and risk management committee to oversee various aspects of the business[48]. - The board of directors emphasized the importance of corporate governance and diversity within the board[111]. - Independent non-executive directors provide independent and objective opinions to ensure adequate checks and balances for the benefit of shareholders and the group[79]. Strategic Initiatives - The company plans to diversify its product portfolio, with new product launches expected in 2024 and 2025, focusing on household items beyond existing kitchenware[20]. - The company aims to expand its customer reach and revenue sources by targeting new segments such as baby and children's products, pet accessories, and coffee accessories[20]. - The company is expanding its sales and distribution network in mainland China and other Asia-Pacific regions, including Taiwan, Thailand, and Japan, to increase market penetration[118]. - The company has established a specialized center for nanotechnology applications in collaboration with Hong Kong Science Park, expected to open in mid-2024[127]. - The company is deepening R&D collaborations with universities and research institutions, including the establishment of a joint laboratory with Hong Kong University of Science and Technology in 2023[127]. Risk Management - The company faces various risks including foreign currency risk, credit risk, interest rate risk, and liquidity risk, which may negatively impact its profitability[27]. - The company has established a risk management and internal control system, which was reviewed and deemed effective by the board for the year ending December 31, 2023[135]. - The board is tasked with overseeing the financial reporting process of the group, with the audit committee assisting in this responsibility[195]. - The management's assessment of expected credit losses is based on historical default rates and forward-looking information, which are subject to significant estimation uncertainty[184]. - The valuation of investment properties is identified as a key audit matter due to its significance and inherent subjectivity, requiring significant judgment[197]. Shareholder Engagement - The company aims to provide equal opportunities for all shareholders to exercise their rights and participate actively in the business[56]. - The company encourages shareholders to engage directly with the board during annual general meetings and other shareholder meetings[56]. - The company will suspend shareholder registration from May 28, 2024, to May 31, 2024, to determine the rights of shareholders to attend and vote at the annual general meeting[145]. - The proposed final dividend for the year ending December 31, 2023, is HKD 0.02 per share, down from HKD 0.03 per share in 2022, pending shareholder approval at the annual general meeting[151].

Financial Performance - Revenue for the year ended December 31, 2023, was HKD 691,143,000, a decrease of 25.3% from HKD 925,663,000 in 2022[1] - Gross profit for 2023 was HKD 179,673,000, down 9.7% from HKD 198,985,000 in the previous year[1] - The net loss for the year was HKD 13,581,000 compared to a profit of HKD 28,963,000 in 2022, indicating a significant decline in profitability[1] - The group reported a loss attributable to equity shareholders of HKD 14,829,000 in 2023, compared to a profit of HKD 23,248,000 in 2022[71] - The company experienced a loss attributable to shareholders of approximately HKD 14.8 million for the year, a decrease of about 163.8% from a profit of HKD 23.2 million in 2022, primarily due to increased other losses and financing costs[139] Assets and Liabilities - Total assets decreased to HKD 804,312,000 in 2023 from HKD 872,214,000 in 2022, reflecting a reduction of 7.8%[3] - Current assets amounted to HKD 514,021,000, down from HKD 557,131,000 in 2022, a decrease of 7.7%[3] - The company’s equity decreased to HKD 604,596,000 in 2023 from HKD 653,730,000 in 2022, a decline of 7.5%[4] - The company’s debt-to-equity ratio as of December 31, 2023, was approximately 21.0%, compared to 20.6% in 2022, and excluding lease liabilities, the ratio was about 15.5% in 2023 versus 14.9% in 2022[145] Cash Flow and Financing - Cash and bank balances decreased significantly to HKD 155,791,000 from HKD 229,623,000, a decline of 32.1%[3] - The financing costs rose to HKD 7,660,000 in 2023 from HKD 2,560,000 in 2022, an increase of 199.2%[1] - Interest expenses increased significantly to HKD (7,660,000) in 2023 from HKD (2,560,000) in 2022, reflecting a rise of 199.2%[32] - The company’s share dividend was reduced to HKD 21,000,000 in 2023 from HKD 42,000,000 in 2022, a decrease of 50%[95] Inventory and Trade Receivables - The company reported an increase in inventory to HKD 109,813,000, up 12.3% from HKD 97,722,000 in 2022[3] - Trade receivables increased to HKD 137,786,000 in 2023 from HKD 127,904,000 in 2022, marking an increase of approximately 7.3%[98] - The group’s trade receivables from three major customers accounted for 64.0% of total trade receivables as of December 31, 2023[60] Expenses and Impairments - The cost of goods sold for the year was HKD 487,329,000, down 29.7% from HKD 693,331,000 in 2022[64] - Goodwill impairment for the year 2023 was HKD (7,925,000), with no impairment recorded in 2022[32] - Research expenses decreased slightly to HKD (5,058,000) in 2023 from HKD (5,891,000) in 2022, a reduction of 14.1%[32] - Administrative expenses increased by approximately 3.1% to about HKD 127.9 million, primarily due to impairment provisions for trade receivables[109] Accounting Standards and Governance - The company has adopted the new and revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the group's performance and financial position[17] - The audit committee has reviewed the financial performance for the year ended December 31, 2023, ensuring compliance with financial reporting processes[169] - The company has maintained a high level of corporate governance and has adhered to the corporate governance code throughout the review year[167] Future Outlook and Strategy - The group anticipates ongoing challenges due to global inflation, tightening monetary policies, and geopolitical tensions affecting the operational environment[105] - The company plans to launch new product lines in 2024 and 2025, focusing on diversifying its product portfolio to enhance market penetration and revenue sources[140] - The global business outlook for 2024 remains challenging and uncertain, with inflation and tightening monetary policies continuing to pressure economic activities[157] Employee and Operational Changes - As of December 31, 2023, the group employed approximately 154 staff, a decrease from 171 in 2022, with total employee costs amounting to about HKD 57.8 million[113] - The company is committed to providing competitive compensation packages to retain talented employees, including salaries, medical insurance, and discretionary bonuses[159] - The company has relocated its production line to a new advanced manufacturing center to enhance production capacity and product functionality for its nano-fiber products[158]

Financial Position - As of June 30, 2023, the group's cash and bank balances were approximately HKD 245.3 million, an increase from HKD 229.6 million as of December 31, 2022[6]. - The group’s bank overdrafts and borrowings amounted to approximately HKD 87.0 million and HKD 42.9 million, respectively, as of June 30, 2023, compared to HKD 47.7 million and HKD 45.5 million as of December 31, 2022[6]. - As of June 30, 2023, the company had bank financing totaling approximately HKD 518.8 million, up from HKD 338.0 million as of December 31, 2022, with a utilization rate of 25.2%[25]. - As of June 30, 2023, total assets amounted to HKD 879,731,000, a slight increase from HKD 872,214,000 at the end of 2022[77]. - The company's net asset value as of June 30, 2023, was HKD 635,384,000, down from HKD 653,730,000 at the end of 2022[81]. - The total liabilities as of June 30, 2023, were HKD 243,347,000, up from HKD 218,484,000 as of December 31, 2022, indicating an increase in financial obligations[119]. Revenue and Profitability - For the six months ended June 30, 2023, total revenue was HKD 334,287,000, a decrease of 29% compared to HKD 469,647,000 for the same period in 2022[73]. - Gross profit for the same period was HKD 85,670,000, slightly down from HKD 86,903,000, resulting in a gross margin of approximately 25.7%[73]. - The net profit for the period was HKD 9,639,000, compared to HKD 10,429,000 in the previous year, reflecting a decrease of about 7.6%[73]. - Total comprehensive income for the period was HKD 6,976,000, an increase of 27.5% from HKD 5,468,000 in the prior year[73]. - The company’s operating profit before tax for the six months ended June 30, 2023, was HKD 9,290,000, compared to HKD 12,518,000 in the same period of 2022[111]. Cash Flow - The group recorded a net cash inflow from operating activities of approximately HKD 3.9 million for the six months ended June 30, 2023, compared to a cash outflow of approximately HKD 10.0 million for the same period in 2022[22]. - The group’s financing activities resulted in a net cash outflow of approximately HKD 12.1 million for the six months ended June 30, 2023, primarily due to repayment of bank borrowings and dividends paid to non-controlling interests[22]. - The total cash and cash equivalents decreased by HKD 20,618,000 during the period, resulting in an ending balance of HKD 158,279,000 as of June 30, 2023, down from HKD 222,017,000 a year earlier[93]. - The company experienced a net cash outflow from investing activities of HKD 12,441,000 for the six months ended June 30, 2023, contrasting with a net inflow of HKD 1,162,000 in the prior year[93]. Investments and Acquisitions - The group had no significant acquisitions or disposals of subsidiaries and associates during the six months ended June 30, 2023[5]. - The group incurred transaction costs of HKD 126,000 related to the acquisition of a subsidiary, which were expensed in the administrative expenses[15]. - The fair value of identifiable assets and liabilities of the acquired subsidiary KOR included intangible assets valued at HKD 10,603,000 and goodwill of HKD 12,050,000[9]. - The company completed the acquisition of Kor Water, Inc. on June 30, 2022, with the purchase price allocation and fair value assessment of identifiable assets and liabilities being finalized by December 31, 2022[55]. Shareholder and Governance - The company maintains a high level of corporate governance, with a board consisting of two executive directors and three independent non-executive directors[42]. - The company did not recommend an interim dividend for the six months ended June 30, 2023, consistent with the previous year[45]. - The company has a public float of at least 25% of its issued share capital as of the report date[48]. - The company’s major shareholder is Dr. Huang Shaohua, who holds significant control over the company through First Concord Limited and City Concord Limited[115]. Operational Performance - The company’s administrative expenses increased by HKD 1,572,000 during the reporting period[56]. - The company’s strategy is increasingly focused on high-quality, high-value business segments, resulting in a decline in low-value business revenue[170]. - The company plans to diversify its product portfolio, targeting new customer segments in household goods, with new product launches expected in 2024 and 2025[190]. - A new production line has been established in Tai Po for raw material development and nanotechnology research, with facility renovations and equipment installation expected to be completed by the end of 2023[191]. Market Conditions - The decline in revenue was primarily due to inflation and a shift in consumer purchasing habits away from mid-to-high-end priced household and drinking utensils, leading to reduced orders from North American clients[169]. - Revenue from the Americas for the six months ended June 30, 2023, was HKD 173,678,000, down from HKD 305,592,000 for the same period in 2022, showing a significant decline[130]. Employee and Management - The total employee cost was approximately HKD 30.3 million, down from HKD 34.9 million for the same period in 2022[192]. - The number of employees as of June 30, 2023, was approximately 154, a decrease from 180 as of June 30, 2022[192].

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佈的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 King’s Flair International (Holdings) Limited 科 勁 國 際（控 股）有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：6822） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 佈 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 千港元 千港元 變動 （未經審核） （未經審核） （經重列） 收益 334,287 469,647 –28.8% 毛利 85,670 86,903 –1.4% 本公司擁有人應佔溢利 7,567 9,177 –17.4% 每股基本及攤薄盈利（港仙） 1.1 1.3 ...

Financial Performance - The company's profit attributable to owners decreased by approximately 75.6% to about HKD 23.2 million for the year ended December 31, 2022, compared to HKD 94.9 million in 2021[1]. - Total revenue for the year was HKD 925.7 million, down from HKD 1.3 billion in the previous year[5]. - For the fiscal year ending December 31, 2022, the total revenue decreased by approximately 28.9% to about HKD 925.7 million, compared to HKD 1,301.7 million in 2021[27]. - The profit before tax for 2022 was HKD 35,783 million, down from HKD 127,450 million in 2021[22]. - The net profit for 2022 was HKD 28,963 million, a decline from HKD 105,747 million in 2021[22]. - The profit attributable to the owners of the company was HKD 23,248 million, compared to HKD 94,907 million in the previous year[22]. - Gross profit decreased by approximately 31.3% to about HKD 199.0 million, with a gross margin decline of about 0.7 percentage points to approximately 21.5%[62]. - The group reported a significant increase in the acquisition of a subsidiary, amounting to HKD 31,110 million in the year ended December 31, 2022[125]. - The income tax expense for the year was HKD 6,820,000, down from HKD 21,703,000 in the previous year, reflecting a significant reduction in tax liabilities[139]. - The group proposed a final dividend of HKD 0.03 per share for the year, compared to HKD 0.06 per share in 2021, indicating a 50% decrease in dividend payout[141]. Challenges and Market Conditions - The significant decline in profit was primarily due to a substantial decrease in revenue and rising raw material costs, which led to a decline in gross profit margin[15]. - The company is facing challenges due to high inflation, rising raw material and oil prices, and geopolitical tensions, which are expected to impact the global business outlook[16]. - The ongoing COVID-19 pandemic and the emergence of new variants have negatively impacted the company's OEM/ODM export business[27]. - The group acknowledged the challenging global business outlook due to high inflation and geopolitical tensions, indicating a cautious approach to financial management[169]. - The group faced potential adverse impacts from rising raw material and oil prices, emphasizing the need for vigilance in financial performance[169]. Strategic Initiatives - The company plans to diversify its product portfolio beyond kitchenware to include other household products, aiming to expand its customer base and revenue sources[17]. - The company will streamline its workforce and improve efficiency through workflow reorganization and office automation[17]. - The company emphasizes the importance of maintaining long-term relationships with customers and enhancing value-added services[12]. - The company continues to integrate existing OEM/ODM sales forecasts and orders to achieve economic benefits and directly monitor the quality of raw materials[12]. - The company is expanding its sales and distribution network, penetrating the mainland China market, and collaborating with chain stores to enhance its business presence[14]. - The company plans to continue investing in human resources training and software and hardware updates to enhance employee competitiveness[29]. - The management is committed to ensuring that strategies align with the company's long-term growth amidst various challenges[29]. - The company aims to provide professional design and engineering services to valuable clients in the US, Europe, Australia, and Japan while exploring potential new customers in other regions[49]. Financial Position and Assets - Total assets as of December 31, 2022, amounted to HKD 825,474,000, a decrease of 3.5% from HKD 799,486,000 in 2021[92]. - Total liabilities increased to HKD 218,484,000 in 2022 from HKD 154,647,000 in 2021, representing a 41.3% increase[92]. - The company’s trade receivables as of December 31, 2022, showed that 43.8% were due from three major customers[98]. - The group reported a significant increase in raw materials inventory, rising to HKD 65,429,000 in 2022 from HKD 25,130,000 in 2021, which is a 160% increase[163]. - The group’s revenue from kitchenware and household products was confirmed upon transfer of control to customers, indicating a robust sales process[127]. - The net book value of leasehold land and land use rights as of December 31, 2022, was HKD 36,820 million, reflecting a significant increase from the previous year[119]. Government Support and Grants - The group received government subsidies of approximately HKD 8,254,000 in the year ended December 31, 2022, compared to HKD 3,765,000 in 2021, with significant support from mainland China government departments[127]. - Government grants received increased to HKD 8,254,000 in 2022 from HKD 3,765,000 in 2021, a growth of 119.7%[100]. Impairment and Provisions - The group assesses whether there are any indications of impairment for assets at each reporting date, estimating the recoverable amount if such indications exist[83]. - The group recognizes provisions for liabilities that may result in an outflow of economic benefits due to past events[76].