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].

Financial Performance - For the six months ended June 30, 2021, the company recorded revenue of approximately HKD 649.0 million, an increase of about 15.2% compared to HKD 563.5 million for the same period in 2020[7]. - Gross profit for the same period rose approximately 8.7% to about HKD 136.0 million, while the gross profit margin decreased by about 1.2% to approximately 21.0%[8]. - Other income increased by approximately 218.8% to about HKD 5.1 million, compared to HKD 1.6 million for the same period in 2020[9]. - Profit attributable to owners of the company increased by approximately 1.0% to about HKD 40.9 million, compared to HKD 40.5 million for the same period in 2020[13]. - The net profit for the period was HKD 48,771,000, compared to HKD 47,393,000 in the previous year, indicating a year-on-year increase of 2.9%[76]. - The company reported a total comprehensive income of HKD 49,266,000 for the period, compared to HKD 46,356,000 in the previous year, reflecting a growth of 4.4%[76]. Expenses and Costs - Distribution expenses rose approximately 26.9% to about HKD 24.5 million, primarily due to the expansion of the sales team and increased transportation costs[10]. - Administrative expenses increased by approximately 15.1% to about HKD 59.6 million, as the impact of COVID-19 on expenses began to normalize[12]. - The cost of goods sold for the six months ended June 30, 2021, was HKD 513,018,000, compared to HKD 438,336,000 for the same period in 2020, reflecting an increase of 17.0%[123]. Cash Flow and Financial Position - The group recorded a cash outflow from operating activities of approximately HKD 7.5 million for the six months ended June 30, 2021, compared to an inflow of approximately HKD 12.4 million for the same period in 2020[27]. - The group’s cash and bank balances were approximately HKD 302.3 million as of June 30, 2021, down from approximately HKD 373.9 million as of December 31, 2020[26]. - The group’s total assets as of June 30, 2021, were HKD 742,630,000, a decrease from HKD 795,081,000 as of December 31, 2020[79]. - The company’s total equity as of June 30, 2021, was HKD 661,508,000, reflecting a decrease from HKD 740,840,000 at the end of 2020[90]. - The group’s liabilities totaled HKD 182,868,000 as of June 30, 2021, down from HKD 217,100,000 as of December 31, 2020[104]. Strategic Initiatives - The company continues to develop patentable new product designs and enhance user experience through innovation[14]. - The company aims to diversify and expand its customer base by providing tailored services to increase sales orders from existing customers and attract new ones[14]. - The group plans to expand its product portfolio by including new categories such as baby and children’s products, pet accessories, and coffee accessories, which is expected to enhance supply chain capabilities[15]. - The group aims to strengthen its design capabilities and penetrate potential markets through strategic partnerships in the second half of the fiscal year[19]. Acquisitions and Investments - The group completed the acquisition of Golden Well Ventures Limited for HKD 138.0 million on July 19, 2021, which will provide stable rental income and strengthen the revenue base[24]. - The group intends to utilize the newly acquired non-residential property for its own use after the current lease expires, which will further stabilize its income stream[24]. - The group’s net cash used in investing activities was approximately HKD 18.8 million for the six months ended June 30, 2021, compared to HKD 8.2 million for the same period in 2020[27]. Shareholder Information - The interim dividend declared is HKD 0.04 per share, with a payout ratio of approximately 68.5% for the six months ended June 30, 2021[48]. - The company suspended shareholder registration procedures from September 24, 2021, to September 28, 2021, to determine the entitlement to the interim dividend[49]. - As of June 30, 2021, the company had a public float of at least 25% of its issued share capital[55]. Employee and Management - The group’s employee count increased to 193 as of June 30, 2021, from 178 as of June 30, 2020, with total employee costs amounting to approximately HKD 34.5 million for the six months ended June 30, 2021[20]. - The total remuneration for key management personnel was HKD 3,250,000 for the six months ended June 30, 2021, compared to HKD 3,057,000 for the same period in 2020, reflecting an increase of approximately 6.3%[178]. - The group’s management personnel received a discretionary bonus of HKD 169,000 for the first half of 2021, compared to no bonus in the same period of 2020[178]. Market and Economic Outlook - The company remains cautiously optimistic about global economic growth despite ongoing uncertainties related to COVID-19[14]. - The group primarily faces foreign exchange risks related to USD and RMB, which may impact financial performance[32].

2020 品牌營鎖及創 倉存管理 策略支援 物流 ammonmon 暫缓/繼續 質量管理 全方位監控 King's Flair International (Holdings) Limited 科勁國際(控股)有限公司 於開更新台採用成立的有限公司 股份代號：6822 2 公司資料 3 主席報告 124 財務摘要 目 錄 6 董事及高級管理層履歷 9 管理層討論及分析 15 企業管治報告 25 董事會報告 38 獨立核數師報告 42 綜合全面收益表 43 綜合財務狀況表 45 綜合權益變動表 46 綜合現金流量表 48 財務報表附註 頁次 �� !! 公司資料 | --- | --- | |-------------------------------------------------|--------------------------------------| | 董事會 | 股份過戶登記總處 | | | Codan Trust Company (Cayman) Limited | | 執行董事 | Cricket Square | | 黃少華博士 （主席兼行政總裁） | Hutchins Drive ...

Financial Performance - For the six months ended June 30, 2020, the group's revenue was approximately HKD 563.5 million, a decrease of about 28.2% compared to HKD 784.6 million for the same period in 2019[7] - Gross profit for the same period decreased by approximately 18.9% to about HKD 125.1 million, while the gross profit margin increased by approximately 2.5% to about 22.2%[8] - Profit attributable to owners of the company decreased by approximately 29.6% to about HKD 40.5 million, reflecting the adverse impact of COVID-19 on the group's performance[14] - The net profit for the period was HKD 47,393,000, representing a decline of 27.6% compared to HKD 65,422,000 in the previous year[73] - Total comprehensive income for the period was HKD 46,356,000, a decrease of 29.2% from HKD 65,470,000 in 2019[73] Revenue Breakdown - Revenue from the sale of kitchen and household products was HKD 513,509,000, down 29.3% from HKD 725,930,000 year-on-year[107] - Revenue from the sale of raw materials was HKD 49,966,000, a decline of 14.8% compared to HKD 58,646,000 in the previous year[107] - The group reported external customer revenue of HKD 563,475,000 for the six months ended June 30, 2020, a decrease of 28.2% from HKD 784,576,000 in the same period of 2019[107] Expenses and Cost Management - Other income decreased by approximately 79.7% to about HKD 1.6 million, primarily due to significant interest income reduction and unrealized fair value losses on financial assets[9] - Distribution expenses decreased by approximately 20.2% to about HKD 19.3 million, attributed to a reduction in sales orders leading to lower transportation and marketing costs[10] - Administrative expenses decreased by approximately 15.9% to about HKD 51.8 million, due to cost control measures implemented by the group[13] - The group has taken measures to maintain a streamlined cost structure to mitigate the impact of COVID-19 on profitability[14] Cash Flow and Financial Position - As of June 30, 2020, the group had a cash and bank balance of approximately HKD 502.5 million, an increase from HKD 471.5 million as of December 31, 2019[27] - The group recorded a positive cash inflow from operating activities of HKD 12.4 million for the six months ended June 30, 2020, a significant decrease from HKD 153.9 million for the same period in 2019[28] - The net cash generated from operating activities for the six months ended June 30, 2020, was HKD 12,353,000, a significant decrease of 92% compared to HKD 153,869,000 in the same period of 2019[85] - The net cash used in investing activities was HKD (8,203,000), compared to HKD (4,795,000) in the previous year, indicating increased investment outflows[85] Strategic Initiatives - The group plans to enhance its design capabilities and has established strategic partnerships with design institutions in Australia and the USA to drive new product designs[15] - The company aims to expand its customer base and increase sales orders by providing customized services to clients[15] - The group plans to continue expanding its retail contributions and product categories in the Chinese market, driven by rising demand for quality products among middle-class consumers[19] - The group aims to enhance its e-commerce platform and marketing activities to capture opportunities in the maternal and infant market in China[19] Shareholder Information - The interim dividend declared was HKD 0.04 per share, down from HKD 0.055 per share in the same period last year, with a payout ratio of approximately 69.0%[47] - As of June 30, 2020, Dr. Huang Shaohua holds a total of 525,000,000 shares in the company, representing 75% of the company's shares[53] - The company maintains a public float of at least 25% of its issued share capital as of the report date[52] Assets and Liabilities - The company's total assets decreased to HKD 918,587,000 from HKD 949,161,000, a decline of 3.2%[75] - The group’s liabilities totaled HKD 408,324,000 as of June 30, 2020, an increase from HKD 305,171,000 as of December 31, 2019[98] - The net asset value decreased to HKD 605,196,000 from HKD 740,840,000, a decrease of 18.3%[78] Market Conditions and Future Outlook - The overall impact of COVID-19 on future financial performance will depend on its development and effects on economic conditions, which the group will closely monitor[15] - The group is actively seeking reliable suppliers for raw materials to diversify business risks and increase revenue sources[19]

Financial Performance - Total revenue for the year ended December 31, 2019, decreased by 1.7% to approximately HKD 1,540.4 million, compared to HKD 1,566.9 million for the year ended December 31, 2018[9]. - Profit attributable to owners for the year ended December 31, 2019, was approximately HKD 124.9 million, an increase of about 5.8% from HKD 118.0 million for the year ended December 31, 2018[11]. - For the year ended December 31, 2019, the company recorded stable revenue of approximately HKD 1,540.4 million, a slight decrease of about 1.7% compared to HKD 1,566.9 million in 2018[48]. - Gross profit increased by approximately 9.8% to about HKD 312.5 million, with a gross margin rise of about 2.1% to approximately 20.3%[49]. - Net profit for the year was approximately HKD 138.3 million, representing an increase of about 4.9% from approximately HKD 131.9 million in 2018[145]. - Cash and bank balances as of December 31, 2019, were approximately HKD 471.5 million, up from HKD 421.4 million in 2018[60]. - The debt-to-equity ratio decreased to 9.2% from 27.9% in the previous year, primarily due to repayment of bank borrowings[61]. - The asset-liability ratio decreased from approximately 27.9% in 2018 to about 9.2% in 2019, a reduction of 18.7%[146]. Strategic Initiatives - The company plans to strengthen its product design capabilities by establishing strategic partnerships with design institutions in the US and Australia in 2020[12]. - The company aims to enhance its supply chain production capacity and expand its wholesale and retail network in Asia to drive long-term business growth[12]. - The company continues to focus on diversifying its product portfolio beyond kitchenware to include other household product segments, such as baby and children's accessories, pet accessories, and coffee accessories[13]. - The company plans to enhance its design and engineering capabilities to pursue a diversification strategy, aiming to increase sales orders from existing customers and attract new clients for sustainable revenue growth[16]. - The company intends to recruit more talent and expand its workforce to meet specific project needs, alongside investing in human resources training and software/hardware updates[17]. - The company will enhance its e-commerce platform and marketing activities to penetrate the maternal and infant market in China[45]. - The company will continue to seek reliable suppliers globally for its raw materials trading business to diversify revenue sources and benefit from economies of scale[45]. Operational Developments - The company has successfully launched its proprietary brand and patented infant products in markets such as China, Japan, and Denmark since 2018, indicating optimism for new product lines[13]. - The company has increased investments in branding and marketing activities to enhance its brand image and market share[9]. - The company expanded its design and R&D team to 18 members in 2019, up from 16 members in 2018, focusing on market research, data analysis, and product design[39]. - The engineering team consists of 11 engineers, providing innovative material concepts and cost-effective solutions to streamline the production process[39]. - The company has established agreements to purchase four independent production lines, expected to enhance the capacity of existing product components and explore new product types[44]. - The company has invested in upgrading its internal IT infrastructure and systems to support operational data analysis, market and sales data analysis, and inventory monitoring and forecasting[16]. Governance and Compliance - The board consists of two executive directors and three independent non-executive directors, ensuring a balance of power and authority[76]. - The board has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee to oversee various aspects of the company[76]. - The company has adopted the Corporate Governance Code and has complied with its provisions, except for the separation of roles between the Chairman and CEO[74]. - The company emphasizes board diversity as a key element for sustainable and balanced development, considering factors such as gender, age, and professional experience[111]. - The company’s governance policies and practices are regularly reviewed to ensure compliance with legal and regulatory requirements[105]. - The company aims to minimize risks through effective risk management policies and standards[104]. Shareholder Engagement - Shareholders are encouraged to participate in annual general meetings and can submit inquiries or suggestions directly to the board[124][125]. - The company aims to provide equal opportunities for all shareholders to exercise their rights and actively participate in the company's affairs[124]. - The board can convene a special general meeting at the request of shareholders holding at least 10% of the paid-up capital[128]. - The proposed dividends are subject to approval at the annual general meeting scheduled for May 29, 2020[161]. Social Responsibility - Charitable donations for the year totaled HKD 7,429,000, a significant increase from HKD 1,876,000 in 2018[176]. - The group has implemented an environmental policy aimed at reducing energy consumption and promoting recycling initiatives[148].