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].

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 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 佈 科勁國際（控股）有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司 及其附屬公司（以下統稱「本集團」）截至二零二二年十二月三十一日止年度的 經審核綜合業績及截至二零二一年十二月三十一日止年度的比較經審核數字 如下： 綜合全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收益 5 925,663 1,301,652 銷售成本 (726,678) (1,012,137) ...

Financial Performance - For the six months ended June 30, 2022, the company's revenue decreased by approximately 27.6% to about HKD 469.6 million from approximately HKD 649.0 million for the same period in 2021[9]. - Gross profit fell by approximately 36.1% to about HKD 86.9 million, with a gross margin decline of about 2.5 percentage points to approximately 18.5%[10]. - Profit attributable to the company's owners decreased by approximately 73.8% to about HKD 10.7 million, down from HKD 40.9 million in the same period last year[15]. - The company reported a total comprehensive income of HKD 49,266,000 for the six months ended June 30, 2022[81]. - The net profit for the period was HKD 12,001,000, a significant decline of 75.5% from HKD 48,771,000 in the previous year[68]. - The company's total assets as of June 30, 2022, amounted to HKD 634,770,000, an increase from HKD 604,450,000 at the end of 2021[71]. - The company's total equity attributable to the owners of the company was HKD 647,971,000, a decrease of 6.1% from HKD 690,526,000 as of December 31, 2021[77]. - The company’s total reserves amounted to approximately HKD 589,326,000 as of June 30, 2022, compared to HKD 598,257,000 as of June 30, 2021[81]. Revenue Breakdown - For the six months ended June 30, 2022, total revenue from the sale of kitchenware and household products was HKD 437,171,000, a decrease of 25% compared to HKD 583,987,000 for the same period in 2021[97]. - Revenue from kitchenware and household products sales was HKD 437,171,000, down 25.1% from HKD 583,987,000 in the previous year[112]. - Revenue from raw materials sales was HKD 32,476,000, a decline of 50.0% compared to HKD 65,001,000 in the prior year[112]. - The segment profit from kitchenware and household products was HKD 18,185,000, down 68% from HKD 56,891,000 in the previous year[97]. - Total revenue for the six months ended June 30, 2022, was HKD 469,647,000, a decrease of 27.7% from HKD 648,988,000 in the same period of 2021[112]. Expenses and Costs - Distribution expenses decreased by approximately 18.0% to about HKD 20.1 million, attributed to a conservative promotional strategy amid uncertain market conditions[12]. - Administrative expenses slightly decreased by approximately 1.5% to about HKD 58.7 million, maintaining a relatively stable level due to strict cost control measures[14]. - The group incurred a cost of sold inventory of HKD 362,966,000, down 26.1% from HKD 491,361,000 in the previous year[117]. - Financing costs totaled HKD 650,000, slightly up from HKD 637,000 in the previous year[116]. Cash Flow and Financing - As of June 30, 2022, the company's cash and bank balances were approximately HKD 239.7 million, an increase from HKD 220.4 million as of December 31, 2021[26]. - The company recorded an operating cash outflow of approximately HKD 10.0 million for the six months ended June 30, 2022, compared to HKD 7.5 million for the same period in 2021[27]. - The net cash used in operating activities for the six months ended June 30, 2022, was HKD (10,026,000), compared to HKD (7,525,000) for the same period in 2021, indicating a decline in operational cash flow[85]. - The net cash generated from financing activities was HKD 15,131,000 for the six months ended June 30, 2022, a significant improvement compared to HKD (74,428,000) in the previous year[85]. - As of June 30, 2022, the company had total bank financing of approximately HKD 338.0 million, with a utilization rate of about 28.3%[29]. Shareholder Information - The company did not recommend an interim dividend for the six months ended June 30, 2022, compared to an interim dividend of HKD 0.04 per share for the same period in 2021[41]. - Dr. Huang Shaohua holds 525,000,000 shares, representing 75% of the company's total issued shares[46]. - First Concord Limited and City Concord Limited hold 105,000,000 shares (15%) and 420,000,000 shares (60%) respectively, both under the beneficial ownership of Dr. Huang[52]. - The company’s major shareholders include First Concord Limited and City Concord Limited, which collectively hold 525,000,000 shares, accounting for 75% of the issued share capital[52]. Operational Developments - The company plans to diversify its product portfolio to achieve sustainable development and increase market penetration, including expanding into new customer segments for household products[16]. - The ongoing impact of COVID-19 variants and geopolitical tensions is expected to create a challenging business environment, prompting the company to remain vigilant and cautious[16]. - The company aims to streamline operations and improve efficiency through workflow reorganization and office automation[16]. - The company established a production line in Tai Po to optimize the specific performance of produced nanofibers, with a specialized center expected to be completed in Q3 2022[17]. - The company received a grant of HKD 15 million from the Hong Kong SAR Government's Re-industrialization Funding Scheme for the establishment of a smart electrospinning production line for nanofiber filtration materials[17]. Compliance and Governance - The audit committee reviewed the unaudited interim financial statements for the six months ended June 30, 2022, ensuring compliance with accounting principles and practices[40]. - The company has maintained compliance with the corporate governance code, except for the provision regarding the separation of the roles of chairman and CEO[38]. - The company has no arrangements that would allow directors or senior management to benefit from purchasing shares of the company or its affiliates[49]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2022[42]. Acquisitions and Investments - The company acquired 51% equity in Kor Water, Inc. (KOR) through the conversion of a secured promissory note valued at USD 2.0 million (approximately HKD 15.6 million) as of June 30, 2022[22]. - The goodwill recognized from the acquisition of Kor Water, Inc. amounts to HKD 14,503,000, reflecting the value of the management team for future market development[164]. - The net identifiable assets and liabilities of Kor Water, Inc. at the acquisition date were provisionally valued, with total liabilities netting to HKD 15,500,000[157]. - The company incurred transaction costs of HKD 71,000 related to the acquisition, which have been expensed in the administrative expenses[165]. Inventory and Receivables - Inventory held for resale increased to HKD 34,460,000 as of June 30, 2022, from HKD 25,110,000 as of December 31, 2021, representing a 37.5% increase[131]. - Raw materials inventory rose to HKD 49,294,000 as of June 30, 2022, compared to HKD 25,130,000 as of December 31, 2021, marking a 96.1% increase[131]. - Trade receivables (net of impairment losses) amounted to HKD 191,214,000 as of June 30, 2022, down from HKD 196,838,000 as of December 31, 2021, indicating a decrease of 2.7%[132]. - The aging analysis of trade receivables showed that amounts overdue by more than 90 days decreased to HKD 12,159,000 as of June 30, 2022, from HKD 29,103,000 as of December 31, 2021, a reduction of 58.2%[135].

Financial Performance - For the year ended December 31, 2021, the total revenue of the group slightly decreased by 0.7% to approximately HKD 1,301.7 million, compared to HKD 1,311.2 million in 2020[14]. - The profit attributable to shareholders for the year was approximately HKD 94.9 million, a decrease of about 16.8% from HKD 114.1 million in 2020, primarily due to the ongoing impact of COVID-19 on the global economy and increased raw material costs[14]. - Gross profit declined by approximately 5.3% to about HKD 289.5 million, with a gross profit margin decrease of about 1.1 percentage points to approximately 22.2%[34]. - Net profit for the year decreased by approximately 19.4% to about HKD 105.7 million, down from HKD 131.1 million in 2020[133]. - The company's cash and bank balances were approximately HKD 220.4 million, down from HKD 373.9 million in 2020[49]. - The company's total borrowings, including bank overdrafts and loans, amounted to approximately HKD 59.0 million as of December 31, 2021, compared to HKD 59.5 million in 2020[49]. - The debt-to-equity ratio increased to approximately 10.5% in 2021 from 10.0% in 2020, primarily due to increased lease liabilities from new office leases[50]. - The debt-to-asset ratio increased from approximately 10.0% in 2020 to about 10.5% in 2021, an increase of 0.5 percentage points[134]. - The distributable reserves as of December 31, 2021, amounted to HKD 468,718,000, a slight decrease from HKD 472,864,000 in 2020[162]. Dividends - The company proposed a final dividend of HKD 0.06 per share, which, if approved, would result in a total dividend of HKD 0.10 per share for the year[14]. - The proposed final dividend is HKD 0.06 per share, down from HKD 0.075 in 2020, resulting in a total annual dividend of HKD 0.10 per share compared to HKD 0.115 in 2020, with a dividend yield of approximately 73.5%[150]. - The board has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders, considering factors such as financial performance and future operational needs[149]. Strategic Initiatives - The company established a strategic partnership with a UK fashion home goods company to strengthen its capabilities in designing new fashionable furniture products[10]. - The group expanded its sales and distribution network, penetrating the mainland China market and extending to Taiwan, Thailand, and Japan, enhancing its point-to-point control[11]. - The company plans to invest significant resources in establishing strategic partnerships with existing and new brand owners and sales platforms in the Chinese and Asian markets[18]. - The company aims to enhance its R&D capabilities by expanding collaborations with universities and research institutions, including establishing joint laboratories[19]. - The company plans to diversify its product portfolio by expanding into new segments such as baby and children's products, pet accessories, and coffee accessories[41]. Research and Development - The group continued to develop patented new product designs, achieving breakthroughs in product appearance and mechanical design to enhance user experience and streamline production processes[10]. - The research and development project for nanofiltration materials was completed during the year, with related R&D expenses written off[10]. - A new production line for nanofiber has been established to support raw material development and nanotechnology research, with a lease agreement for an advanced manufacturing center expected to be completed in Q3 2022[42]. - The company has received a grant of HKD 15 million from the Hong Kong government's re-industrialization funding scheme for establishing a smart electrospinning production line for nanofiber filtering materials[42]. Corporate Governance - The company is committed to maintaining high corporate governance standards, with a board comprising two executive directors and three independent non-executive directors[63]. - The board consists of two executive directors and three independent non-executive directors, ensuring a balance of power and independent oversight[65]. - The audit committee held three meetings in 2021 to review the interim results and the consolidated financial statements for the year ended December 31, 2020[83]. - The independent non-executive directors provide independent and objective opinions to safeguard the interests of shareholders and the group as a whole[76]. - The company has established appropriate insurance arrangements for its directors and senior officers against legal claims[70]. - The board has delegated authority to executive directors and senior management to implement business strategies and manage daily operations[67]. - The company has four board committees: audit, remuneration, nomination, and risk management, each with a clear written terms of reference[81]. - The company recognizes the benefits of board diversity and considers various factors such as gender, age, and professional experience in its board member composition[101]. - The company secretary is a full-time employee responsible for governance matters and serves as the secretary for multiple committees, ensuring compliance with relevant regulations[102]. Risk Management - The company has established a risk management and internal control system, which is regularly reviewed for effectiveness and adequacy, ensuring compliance with relevant laws and regulations[107]. - The audit committee and board have discussed and reviewed the results of the internal control system's effectiveness for the year ending December 31, 2021[108]. - The Risk Management Committee held two meetings to identify, assess, manage, and monitor business and compliance risks faced by the group for the year ended December 31, 2021[94]. - The company has maintained a robust and effective risk management and internal control system as of December 31, 2021[108]. Shareholder Engagement - The company encourages shareholders to participate in annual general meetings and provides at least 20 business days' notice for such meetings[113]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting, which must be held within two months of the request[117]. Miscellaneous - The company made charitable donations totaling HKD 5,821,000 during the year, compared to HKD 6,270,000 in 2020[164]. - There were no significant acquisitions or disposals of subsidiaries or associated companies during the year, aside from those disclosed in the report[163]. - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2021[161]. - The company has not made any changes to its share capital during the year[156]. - The company has a stock option plan that allows for a maximum of 10% of the issued shares to be granted as options, equating to 70,000,000 shares[191]. - The group did not engage in any related party transactions or continuing related party transactions that require disclosure under Chapter 14A of the Listing Rules for the fiscal year ended December 31, 2021[200].