Investment Rating - The report gives an "Outperform the Market" rating for both Blue Moon Group and CATL, indicating expected performance above the market average [6][27][31]. Core Insights - The jewelry sector is transitioning from channel-driven to brand-driven, with a focus on product structure upgrades leading to improved gross margins [8][9]. - The pet consumption market is expanding, driven by an increase in pet ownership and a demand for higher quality products [21]. - CATL is expected to maintain strong performance with a projected net profit growth from 645 billion to 932 billion CNY over the next three years [31]. Summary by Sections Jewelry Sector - The jewelry industry is seeing a shift towards brand-driven strategies, enhancing product offerings and improving profitability [8][9]. - The report highlights that the retail sales of gold and silver jewelry have shown a year-on-year increase of 5.4% in early 2025, indicating a recovery in demand [10]. - Companies like Chow Tai Fook and Zhou Dasheng are focusing on high-quality expansion and product structure improvements to capture market share [11][12]. Pet Consumption - The pet food sector is recommended due to the growing consumer interest and spending on pet-related products, with leading companies expected to outperform the market [21]. - The report notes a significant increase in online sales and engagement in the pet product category, with a 71% year-on-year growth in pet-related live commerce [21]. Blue Moon Group - The company is projected to recover from losses in 2024, with expected net profits turning positive by 2025, supported by a strong brand presence in the cleaning products market [27]. - The report anticipates a revenue growth of 16% in 2024, driven by increased sales across all product categories [25]. CATL - CATL is projected to maintain its leadership in the global battery market, with a significant increase in production capacity and a strong pipeline of new products [31]. - The company is expected to achieve a net profit of 645 billion CNY in 2025, with a favorable valuation range of 337.12 to 366.43 CNY per share [31].

市场表现 [Table_QuoteInfo] 恒生指数对比 1M 2M 3M 绝对涨幅（%） -10.62 -0.44 -33.19 相对涨幅（%） -20.40 -26.33 -53.06 资料来源：海通证券研究所 收入增速修复，短期费用投放影响利润率 [Table_Summary] 投资要点： 风险提示：原材料价格上涨，新品推广不及预期，费用投放超预期。 [Table_MainInfo] 公司研究/造纸轻工/轻工制造 证券研究报告 蓝月亮集团（6993）公司研究报告 2025 年 03 月 17 日 [Table_InvestInfo] 投资评级 优于大市 首次 覆盖 股票数据 | 0[3Table_StockInfo 月 17 日收盘价 ] | 3.11 港元 | | --- | --- | | 52 周股价波动 | 1.73~4.44 港元 | | 总股本/流通港股 | 58.63 亿/58.63 亿 | | 总市值/流通市值 | 182 亿/182 亿港元 | | 相关研究 | | 主要财务数据及预测 | [Table_FinanceInfo] | 2022 | 2023 | 2024E | 202 ...

Investment Rating - The report does not explicitly state an investment rating for the company Core Insights - The company, Blue Moon Group, has experienced a significant decline in market value since its IPO, with a market cap evaporating by nearly 100 billion HKD, leaving it with a remaining market cap of 13 billion HKD [6][8] - The company's revenue for the first half of 2024 reached 3.13 billion HKD, marking a 41% year-on-year increase, the highest growth rate in its history [4] - Despite the revenue growth, the company has been heavily reliant on high marketing expenses, with a sales expense ratio of 70.3% in the first half of 2024, up from 47.6% the previous year [10][13] - The company's net profit has deteriorated significantly, with a net loss of 660 million HKD in the first half of 2024, compared to a loss of 170 million HKD in the same period last year [15] Summary by Sections Revenue and Profitability - The company reported a revenue of 3.13 billion HKD for the first half of 2024, a 41% increase year-on-year, achieving its highest growth rate [4] - The gross margin improved to 58.7%, up from 55.2% year-on-year, but the net profit margin fell to -21.2% [8][15] Marketing and Sales Strategy - The company has shifted its sales strategy towards online channels, with online sales accounting for 73% of revenue in the first half of 2024, up from 52% in 2023 [22][27] - The company has recently adopted live streaming as a sales strategy, resulting in a 57% year-on-year increase in online channel revenue to 2.3 billion HKD in the first half of 2024 [27][28] Financial Health and Cash Flow - The company has seen a decline in cash flow from operating activities, with net cash flow dropping from 1.42 billion HKD in 2021 to 560 million HKD in 2022 [32] - Despite a decrease in capital expenditures, the company has maintained a high dividend payout, distributing 2.64 billion HKD in dividends since its IPO, exceeding its net profit during the same period [37]

Financial Performance - Revenue for the first half of 2024 increased to HKD 3,131 million, up from HKD 2,223 million in the same period of 2023[8] - Gross profit for the first half of 2024 rose to HKD 1,836 million, compared to HKD 1,228 million in the first half of 2023[8] - Revenue for the six months ended June 30, 2024, increased to 3,131,155 thousand HKD, up from 2,222,727 thousand HKD in the same period in 2023, representing a 40.9% growth[64] - Gross profit rose to 1,836,435 thousand HKD in 2024, compared to 1,227,596 thousand HKD in 2023, a 49.6% increase[64] - Operating loss widened to 938,535 thousand HKD in 2024 from 431,355 thousand HKD in 2023, reflecting a 117.6% increase in losses[64] - Net loss attributable to equity holders of the company increased to 663,745 thousand HKD in 2024, up from 167,462 thousand HKD in 2023, a 296.4% rise[64] - Total comprehensive loss for the period amounted to 698,391 thousand HKD in 2024, compared to 347,042 thousand HKD in 2023, a 101.2% increase[65] Revenue Breakdown - Revenue from online sales accounted for 23.2% of total revenue in the first half of 2024, up from 5.5% in the same period of 2023[9] - Revenue from direct sales to major clients represented 4.2% of total revenue in the first half of 2024, compared to 6.1% in the first half of 2023[9] - Revenue from offline distributors accounted for 72.6% of total revenue in the first half of 2024, down from 88.4% in the same period of 2023[9] Production and Operations - The company operates four production bases in Guangzhou, Tianjin, Kunshan, and Chongqing as of June 30, 2024[10] - The Tianjin production base, established in 2011, covers the North China, Northeast China, and Northwest China regions[10] Market Position and Brand Strength - The company's laundry detergent and hand wash products have ranked first in the China Brand Power Index for 14 consecutive years (2011-2024)[7] - The company's laundry detergent has held the top market share in its category for 15 consecutive years (2009-2023)[7] - The company's hand wash products have maintained the leading market share in their category for 12 consecutive years (2012-2023)[7] - The company's laundry detergent and hand sanitizer have ranked first in the China Brand Power Index for 14 consecutive years (2011-2024)[15] - The company's laundry detergent and hand sanitizer have ranked first in market share for 15 and 12 consecutive years respectively (2009-2023 and 2012-2023)[15] - The company ranked first in cumulative sales on JD.com's self-operated brand list and laundry care merchant store list during the 618 shopping festival[15] - The company ranked first in the cumulative sales list of the laundry care industry on Douyin during the 618 shopping festival[15] Strategic Plans and Initiatives - The company plans to enrich and launch new products in its three major product categories to meet consumer demand[16] - The company aims to strengthen cooperation with major e-commerce platforms and increase its influence on emerging online sales and distribution platforms[16] - The company will continue to deepen its offline sales channels and focus on different sales points to promote sales[16] - The company plans to promote cleaning knowledge and scientific cleaning methods to improve customer experience[16] - The company will accelerate digitalization and upgrade its manufacturing network to improve operational efficiency[16] - The company is committed to maintaining a stable dividend policy to provide sustainable returns to shareholders[16] Shareholding Structure - ZED Group Limited holds 4,326,400,000 shares, representing 73.79% of the total issued shares[44] - HHLR Advisors, Ltd. holds 527,422,500 shares, representing 9.00% of the total issued shares[44] - HHLR Fund, L.P. holds 526,542,800 shares, representing 8.98% of the total issued shares[44] - HCM BM Holdings, Ltd. holds 500,000,000 shares, representing 8.53% of the total issued shares[44] - Tricor Trust (Hong Kong) Limited holds 293,742,986 shares, representing 5.01% of the total issued shares[44] - BMGH T Limited holds 293,742,986 shares, representing 5.01% of the total issued shares[44] - As of June 30, 2024, the total number of issued shares is 5,862,993,406[44] - HCM BM Holdings, Ltd. is 95.32% owned by HHLR Fund, L.P.[45] - As of June 30, 2024, there are 46,308,473 unexercised pre-IPO share options, representing approximately 0.79% of the total issued shares[49] - Under the 2021 Share Award Plan, 21,690,999 shares were awarded to 371 employees, with 9,750,314 shares already vested as of the reporting date[50] - The company has approved a 2022 Share Award Plan, granting 119,600,000 shares to three executive directors and three individuals as directors of subsidiaries, with 41,800,000 shares already vested[51] - The board has proposed an interim dividend of HK$0.04 per share for the six months ended June 30, 2024[52] - The company maintains a public float of 24.06% of its issued share capital, in compliance with the Hong Kong Stock Exchange's requirements[59] Financial Utilization and Future Plans - The company has utilized HK$1,409 million of the net proceeds from its global offering in the first half of 2024, with HK$3,721 million remaining unutilized as of June 30, 2024[62] - The company expects to fully utilize the remaining funds for business expansion, brand enhancement, and R&D by the end of 2025[63] Asset and Liability Changes - Property, plant, and equipment decreased slightly to 1,437,497 thousand HKD in 2024 from 1,455,289 thousand HKD in 2023, a 1.2% decline[66] - Inventory increased to 409,895 thousand HKD in 2024, up from 258,160 thousand HKD in 2023, a 58.8% rise[66] - Trade receivables and bills decreased to 932,003 thousand HKD in 2024 from 1,404,647 thousand HKD in 2023, a 33.6% decline[66] - Total assets decreased to 10,785,998 thousand HKD in 2024 from 12,052,641 thousand HKD in 2023, a 10.5% decline[67] - Total liabilities decreased to 1,425,476 thousand HKD in 2024 from 1,673,598 thousand HKD in 2023, a 14.8% decline[67]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 3,131,155, an increase of 41% compared to HKD 2,222,727 for the same period in 2023[2] - Gross profit for the same period was HKD 1,836,435, representing a gross margin of 58.7%, up from 55.2% in 2023[2] - The company reported a loss attributable to equity holders of HKD (663,745), compared to a loss of HKD (167,462) in the previous year[2] - The total comprehensive loss for the period was HKD (698,391), compared to HKD (347,042) in 2023[5] - Basic and diluted loss per share for the period was HKD (12.00), compared to HKD (3.01) in the same period last year[5] - The net loss attributable to equity holders for the six months ended June 30, 2024, was approximately HKD 663,745,000, compared to HKD 167,462,000 in the same period of 2023[21] - The company recorded an operating loss of approximately HKD 938.5 million for the six months ended June 30, 2024, compared to a loss of HKD 431.4 million in the previous year[44] Assets and Equity - Total assets as of June 30, 2024, were HKD 10,785,998, down from HKD 12,052,641 as of December 31, 2023[7] - Total equity attributable to equity holders was HKD 9,360,522, a decrease from HKD 10,379,043 at the end of 2023[6] - As of June 30, 2024, trade receivables and bills receivable amounted to HKD 1,050,142 thousand, down from HKD 1,580,131 thousand as of December 31, 2023[26] - The net trade receivables after loss provisions were HKD 932,003 thousand as of June 30, 2024, compared to HKD 1,404,647 thousand as of December 31, 2023[26] - The company’s total property, plant, and equipment net book value as of June 30, 2024, was HKD 1,437,497 thousand, a decrease from HKD 1,455,289 thousand at the beginning of the period[25] Revenue Breakdown - The sales revenue from clothing care products reached HKD 2,767,339,000, up from HKD 1,957,974,000, representing a 41% growth[15] - Revenue from laundry care products increased by 41.3% to HKD 2,767,339,000, while personal care products saw a 59.6% increase to HKD 191,870,000[37] - Online sales channels contributed HKD 2,271,654,000, a 56.9% increase from HKD 1,448,048,000 in the previous year, accounting for 72.6% of total revenue[38] Expenses and Costs - The cost of goods sold for the six months ended June 30, 2024, was HKD 1,131,471,000, compared to HKD 850,993,000 in the previous year, indicating a 33% increase[17] - Promotional expenses surged to HKD 1,094,646,000, a significant rise from HKD 266,048,000, reflecting a 311% increase[17] - Selling and distribution expenses surged by 107.9% to approximately HKD 2,201.4 million, primarily due to increased sales activities and new product promotions[42] - The cost of sales for the six months ended June 30, 2024, was approximately HKD 1,294.7 million, up 30.1% from HKD 995.1 million in the prior period[39] Dividends - The board recommended an interim dividend of HKD 0.04 per share[2] - The board proposed a final dividend of HKD 0.06 per share for the year ended December 31, 2023, amounting to approximately HKD 329,127,000, which was approved by shareholders[24] - The company plans to distribute an interim dividend of HKD 0.04 per share for the six months ended June 30, 2024, amounting to HKD 218,295,000[24] Government Grants and Taxation - The company received government grants totaling HKD 5,192,000, down from HKD 18,772,000 in the previous year[16] - The company has not recognized any taxable profits in Hong Kong, resulting in no provisions for Hong Kong profits tax[19] - The effective corporate income tax rate for the company’s subsidiaries in China is 15%, benefiting from preferential tax treatment until 2030[20] Corporate Governance and Compliance - The board regularly reviews and enhances corporate governance practices to ensure compliance with the Corporate Governance Code[54] - The company has maintained a public float of 24.06% of its issued share capital, in compliance with the exchange's requirements[55] - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2024[55] Strategic Focus and Future Plans - The company continues to focus on product development across all categories, particularly in laundry care, personal care, and home care, with a strong emphasis on targeted and functional new products[32] - The company aims to enhance its sales and distribution network, with a systematic expansion into counties and towns across China, and has set specific business targets for distributor coverage and brand penetration[32] - The company plans to accelerate digitalization and upgrade its manufacturing network to improve operational efficiency[34] - The company is committed to sustainable development principles, focusing on green low-carbon strategies in product development, manufacturing, and packaging processes[34] Employee and Shareholder Information - As of June 30, 2024, the company had approximately 7,459 employees, with competitive salary levels maintained[50] - A total of 21,690,999 shares were granted to 371 employees under the 2021 Share Award Scheme, with 9,750,314 shares already vested[51] - Under the 2022 Share Award Scheme, 119,600,000 shares were granted to 3 executive directors and 3 subsidiary directors, with 41,800,000 shares vested[52] IPO and Fund Utilization - The net proceeds from the IPO in December 2020 amounted to HKD 11,004 million, with specific allocations for business expansion and R&D[57] - As of June 30, 2024, approximately HKD 3,380 million was utilized for business expansion, with HKD 31 million remaining unutilized[58] - The company has no significant future plans for major investments or acquisitions beyond disclosed capital expenditures[49] - The expansion and upgrading of the group's production bases are ongoing, with unutilized funds expected to be fully utilized by the end of 2025 for business expansion, including capacity expansion plans, equipment purchases, and development of laundry services[59] - Unutilized funds aimed at enhancing brand awareness, further strengthening the sales and distribution network, and increasing product penetration are also expected to be fully utilized by the end of 2025[59] - Funds allocated for enhancing research and development capabilities are anticipated to be fully utilized by the end of 2025[59]

Financial Performance - Revenue for 2023 was HK$7,323.5 million, a decrease of 7.8% compared to HK$7,946.7 million in 2022[7] - Gross profit margin improved to 62.0% in 2023 from 57.8% in 2022[7] - Net profit attributable to equity holders was HK$325.3 million, a 46.8% decrease from HK$611.4 million in 2022[7] - Basic earnings per share decreased to HK$0.0584 in 2023 from HK$0.1092 in 2022[7] - The final dividend per share was HK$0.06 in 2023, down from HK$0.168 in 2022[7] - Revenue for 2023 decreased by 7.8% to HKD 7,323.5 million compared to HKD 7,946.7 million in 2022, with a 2.9% decline in RMB terms[24][26] - Net profit for 2023 decreased by 46.8% to HKD 325.3 million compared to 2022[25] - Gross profit decreased by approximately 1.2% from HK$4,595.4 million in 2022 to HK$4,540.4 million in 2023, while gross margin increased from 57.8% to 62.0%[30] - Operating profit declined sharply by 80.5% from HK$668.9 million in 2022 to HK$130.4 million in 2023[32] - Profit attributable to equity holders decreased by 46.8% from HK$611.4 million in 2022 to HK$325.3 million in 2023[34] - Revenue for 2023 decreased to HKD 7,323,532K from HKD 7,946,733K in 2022, a decline of 7.8%[187] - Gross profit for 2023 was HKD 4,540,420K, slightly down from HKD 4,595,441K in 2022[187] - Operating profit dropped significantly to HKD 130,435K in 2023 from HKD 668,889K in 2022[187] - Net profit for the year was HKD 325,309K, a 46.8% decrease compared to HKD 611,366K in 2022[187] - Basic earnings per share dropped to 5.84 HK cents in 2023 from 10.92 HK cents in 2022[188] - Net profit for the year 2023 was HKD 325,309 thousand[193] - Total comprehensive income for the year 2023 was HKD 231,797 thousand, including other comprehensive losses of HKD 93,512 thousand[193] - The company's total comprehensive loss for 2022 was HKD 118,520 thousand, including other comprehensive losses of HKD 729,886 thousand[195] Sales and Revenue Breakdown - Online sales accounted for 52.0% of total revenue in 2023, up from 47.3% in 2022[10] - Revenue from fabric care products was HK$6,500.7 million, representing 88.8% of total revenue in 2023[9] - Revenue from personal care products decreased to HK$447.0 million in 2023 from HK$619.0 million in 2022[9] - Revenue from home care products was HK$375.9 million in 2023, down from HK$506.3 million in 2022[9] - Online sales increased by 1.3% to HKD 3,805.2 million, accounting for 52.0% of total revenue, driven by strong performance in emerging online channels[28] - Offline distributor sales decreased by 15.3% to HKD 2,754.9 million, while direct sales to major customers dropped by 18.5% to HKD 763.4 million[28] - Sales of laundry care products decreased by 4.7% to HKD 6,500.7 million, while personal and home care products saw declines of 27.8% and 25.8%, respectively[27] - Sales revenue from goods in 2023 was HKD 7,324 million[181] Cost and Expenses - Cost of sales decreased by 17.0% to HKD 2,783.1 million, primarily due to lower raw material costs[29] - Other income and net gains decreased significantly from HK$100.1 million in 2022 to HK$36.8 million in 2023, primarily due to reduced foreign exchange losses[31] - Sales and distribution expenses increased by 22.4% from HK$2,651.0 million in 2022 to HK$3,244.1 million in 2023, driven by expanded promotional activities[32] - Financial income rose by 52.3% from HK$178.8 million in 2022 to HK$272.2 million in 2023, attributed to increased short-term deposits and higher USD deposit rates[32] - The company paid/accrued HK$4.0 million and HK$2.1 million for audit/audit-related services and non-audit services, respectively, to its independent auditor PwC for the year ended December 31, 2023[167] Cash Flow and Financial Position - Bank deposits and cash decreased by HK$370.6 million to HK$7,331.8 million in 2023, mainly due to dividend payments[35] - Capital expenditures for 2023 amounted to HK$85.3 million, primarily for expanding production capacity[35] - The company maintained a strong liquidity position with a current ratio of 6.70x as of December 31, 2023[35] - Total assets decreased to HKD 12,052,641K in 2023 from HKD 12,729,725K in 2022[189] - Cash and cash equivalents stood at HKD 4,342,528K in 2023, down from HKD 7,702,373K in 2022[189] - Trade receivables and bills decreased to HKD 1,404,647K in 2023 from HKD 2,050,546K in 2022[189] - Total equity decreased to HKD 10,379,043K in 2023 from HKD 11,072,780K in 2022[189] - Total liabilities increased slightly to HKD 1,673,598K in 2023 from HKD 1,656,945K in 2022[190] - Cash flow from operating activities for 2023 was HKD 749,316 thousand, a decrease from HKD 560,673 thousand in 2022[196] - Cash flow used in investing activities for 2023 was HKD 3,027,567 thousand, primarily due to an increase in fixed deposits of HKD 2,938,097 thousand[196] - Cash flow used in financing activities for 2023 was HKD 1,037,603 thousand, mainly due to dividend payments of HKD 936,026 thousand[196] - Cash and cash equivalents decreased by HKD 3,315,854 thousand in 2023, ending the year at HKD 4,342,528 thousand[196] - The company's total equity as of December 31, 2023, was HKD 10,379,043 thousand, compared to HKD 11,072,780 thousand at the beginning of the year[193] - The company issued ordinary shares upon the exercise of share options, resulting in an increase of HKD 3,295 thousand in equity[193] - The company allocated HKD 90,796 thousand to statutory surplus reserves[193] Market Position and Brand Strength - Blue Moon's laundry detergent has ranked first in market share for 14 consecutive years (2009-2022), and hand sanitizer for 11 consecutive years (2012-2022)[17] - Blue Moon's laundry detergent and hand sanitizer have ranked first in the China Brand Power Index for 13 consecutive years (2011-2023)[17] - Blue Moon has nearly 100 product varieties, covering various aspects of daily life[17] - Blue Moon ranked first in sales across multiple platforms during major shopping festivals like 618 and Double 11[18] - The company ranked first in sales on JD.com and Douyin during major shopping festivals, maintaining its leadership in the laundry and hand wash categories[22] ESG and Sustainability - Blue Moon has 48 products certified as "China Environmental Labeling Products," 15 as "China Water-Saving Products," 25 as "China Green Products," and 3 as "China Concentrate+"[19] - Blue Moon was rated AAA by Wind and included in the "ESG Best Practice 100," one of only 5 companies with an AAA rating[20] - The company set ESG goals covering greenhouse gas emissions, energy use, and water efficiency, with details published in the 2023 ESG report[111] - The company will continue to optimize its dividend policy and adhere to ESG principles, promoting green and low-carbon development[23] Product Development and Innovation - Blue Moon launched the "Pure Enjoy Foam Body Wash" in the second half of 2023, expanding its personal care product line[21] - The company plans to enhance its omnichannel sales network, focus on digital transformation, and introduce new products in 2024[23] Operational and Strategic Initiatives - Blue Moon optimized its offline distributor network, improving inventory management and increasing sales point coverage[21] - Blue Moon implemented a reward system to incentivize distributor sales representatives, enhancing product placement and sales[21] - Blue Moon focused on expanding its market presence in counties and townships across China, increasing offline sales coverage[21] - The company operates four production bases in Guangzhou, Tianjin, Kunshan, and Chongqing, China[12] - The company plans to enhance its omnichannel sales network, focus on digital transformation, and introduce new products in 2024[23] Corporate Governance and Board Structure - The company has adopted the "Corporate Governance Code" as its governance standard and has complied with all applicable code provisions for the year ended December 31, 2023[124] - The company has established a culture of trust, respect, and excellence, aligning with its vision and strategy to meet consumer needs and promote long-term healthy development[123] - The Board has delegated the authority and responsibility for executing business strategies and managing daily operations to the executive directors and senior management[128] - The company has implemented a "Standard Code" for directors' securities transactions, with reminders issued twice a year to ensure compliance[125] - All directors have confirmed compliance with the "Standard Code" requirements for the year ended December 31, 2023[126] - The Board has three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined terms of reference[127] - The company has purchased appropriate directors' and officers' liability insurance and will review the coverage annually[128] - Independent non-executive directors provide independent judgment on the company's development, performance, and risk management[127] - The Board regularly reviews its composition to ensure a balance of professional knowledge, skills, and experience for effective supervision[127] - The Board of Directors held a total of four meetings in 2023, in compliance with the Corporate Governance Code, with each meeting held approximately quarterly[130] - The Chairman held separate meetings with independent non-executive directors without the presence of other directors, as required by the Corporate Governance Code[130] - The Board of Directors is responsible for leading, guiding, and supervising the company's business, strategic decisions, and performance, with authority over policy matters, strategy, budgets, internal controls, risk management, and major transactions[134] - The company provides training to directors on their statutory and regulatory responsibilities as directors of a Hong Kong-listed company, including updates on significant changes to the Listing Rules and corporate governance practices[135] - All directors received continuous professional development training in 2023 through reading materials and attending briefings, lectures, meetings, courses, and seminars organized by the company or professional bodies[137] - The roles of the Chairman and CEO are clearly defined and separated to ensure independence, accountability, and a balanced distribution of power and responsibilities[140] - The Audit Committee reviewed the Group's financial reporting procedures, risk management, and internal control systems, ensuring compliance with applicable accounting standards and listing rules[141][142] - The Audit Committee held four meetings and three meetings with the external auditor during the year ended December 31, 2023[142] - The Remuneration Committee determined the remuneration policy for executive directors and assessed their performance, with no awards granted under the 2021 or 2022 Share Award Schemes[143][144] - The Remuneration Committee held one meeting during the year ended December 31, 2023[144] - The Nomination Committee reviewed the Board's structure, size, composition, and diversity, and made recommendations for changes to align with the company's strategy[145] - The Nomination Committee held one meeting during the year ended December 31, 2023[145] - The Board maintains a balance between executive and independent non-executive directors to ensure a high level of independence[146] - The company has a clear nomination and appointment process for directors, considering qualifications, skills, experience, character, integrity, independence, and diversity[147] - The Nomination Committee conducted an annual review of the mechanisms to ensure the Board receives independent views and opinions[148] - No independent non-executive director serves on the boards of more than seven listed companies or has served as an independent non-executive director of the company for more than nine years[149] - The Board of Directors consists of 4 female directors (50%) and 4 male directors, with diverse educational and professional backgrounds, aiming to maintain at least the current level of female representation and achieve gender parity over time[152] - The company's Corporate Secretary, Mr. Pan Guoliang, has completed at least 15 hours of professional training in compliance with Listing Rule 3.29 during the year ended December 31, 2023[157] Risk Management and Internal Controls - The company has established a comprehensive risk management system since 2021, involving risk identification, assessment, and management to mitigate inherent business risks[159] - The company's risk management framework includes three lines of defense: operational departments, professional departments (e.g., finance, legal), and internal audit functions[159] - The Board conducts annual reviews of the company's risk management and internal control systems, covering financial, operational, and compliance controls[160] - The company's internal audit function identifies control deficiencies and proposes improvements, with results communicated to management for corrective actions[162] - The company has implemented procedures for handling and disclosing inside information, including confidentiality protocols and communication with relevant employees[163] Shareholder and Investor Relations - The company recommended a final dividend of HK$0.06 per ordinary share for the year ended December 31, 2023, totaling HK$334.3 million[44] - The company has 5,862,993,406 issued shares as of December 31, 2023[45] - The company issued 876,500 fully paid shares during the year due to the exercise of pre-IPO share options, with a total consideration of HK$3.295 million[46] - The company's distributable reserves as of December 31, 2023, were approximately HK$11,897.6 million[47] - The company purchased property, plant, and equipment worth HK$138.4 million during the year[47] - The company's top five suppliers accounted for approximately 42.9% of total annual procurement, with the largest supplier accounting for 10.4%[47] - The company made external charitable donations of approximately HK$5.9 million for the year ended December 31, 2023[47] - The company has no borrowings as of December 31, 2023[47] - The total number of issued shares as of December 31, 2023, is 5,862,993,406 shares[54] - ZED Group Limited holds 4,446,000,000 shares, representing 75.83% of the company's total shares[54][60] - HHLR Advisors, Ltd. holds 527,422,500 shares, representing 9.00% of the company's total shares[60] - HHLR Fund, L.P. holds 526,542,800 shares, representing 8.98% of the company's total shares[60] - HCM BM Holdings Ltd. holds 500,000,000 shares, representing 8.53% of the company's total shares[60] - Pan Dong holds 4,446,000,000 shares through controlled entities, representing 75.83% of the company's total shares[54] - Luo Qiuping holds 4,446,000,000 shares through spousal interests, representing 75.83% of the company's total shares[54] - Luo Dong holds 4,800,000 shares, representing 0.08% of the company's total shares[54] - Pan Guoliang holds 1,000,000 shares directly and 3,500,000 shares through controlled entities, representing 0.02% and 0.06% of the company's total shares respectively[54] - Xiao Haishan holds 837,500 shares, representing 0.01% of the company's total shares[54] - Total issued shares as of December 31, 2023, were 5,862,993,406[61] - ZED directly holds 75.64% of the shares and indirectly holds 0.19% through VGL[61] - HCM BM Holdings, Ltd. is 95.32% owned by HHLR Fund L.P., which beneficially owns 26,542,800 shares[61] - The company has granted a total of 61,651,000 share options, representing approximately 1.05% of the total issued shares as of December 31, 2023[64][65] - Under the 2021 Share Award Scheme, 21,414,999 reward shares were granted to 366 employees[64] - The exercise price for each share option under the Pre-IPO Share Option Scheme is HK$3.76[70] - The Pre-IPO Share Option Scheme has a remaining term of 6.96 years as of December 31, 2023[71] - As of December 31, 2023, 47,676,023 shares remain available for issuance under the Pre-IPO Share Option Scheme, representing approximately 0.81% of the total shares[72] - 4,800,000 stock options granted to Ms. Luo Dong remain unexercised as of December 31, 2023, with an exercise price of HKD 3.76 per share[73] - 975,000 stock

Investment Rating - The report maintains a "Buy" rating for Blue Moon Group (6993.HK) [4][7] Core Insights - In 2023, the company achieved revenue of HKD 7.324 billion, a decrease of 7.8%, with a gross profit of HKD 4.540 billion, down 1.2%, and a net profit attributable to shareholders of HKD 325 million, down 46.8% [3] - The second half of 2023 saw revenue stabilize at HKD 5.101 billion, an increase of 0.7%, with gross profit rising to HKD 3.313 billion, up 8.0%, but net profit fell to HKD 158 million, down 65.9% [3] - The company has adjusted its EPS forecasts for 2024-2025 to HKD 0.10 and HKD 0.11 respectively, down from HKD 0.13 and HKD 0.14, and introduced a new EPS forecast of HKD 0.14 for 2026 [3] Revenue Breakdown - For the second half of 2023, revenue from the laundry cleaning segment was HKD 4.543 billion, up 4.0%, while personal cleaning and home cleaning segments saw revenues of HKD 327 million and HKD 231 million, down 15.8% and 24.2% respectively [3] - Online sales contributed HKD 2.357 billion, up 3.4%, while offline sales were HKD 2.112 billion, down 2.7% [3] Profitability Analysis - The gross margin improved to 64.9%, an increase of 4.4 percentage points, while the net profit margin decreased to 3.1%, down 6.0 percentage points [3] - Promotional expenses surged to HKD 1.024 billion, up 229.4%, with promotional expenses as a percentage of revenue increasing by 13.9 percentage points [3] Market Position and Strategy - The company remains a leader in the laundry cleaning industry, launching new products and enhancing its marketing strategies, particularly on platforms like JD.com and Douyin [3] - The report highlights a clear strategy for optimizing offline channels, aiming to regain growth through improved distribution and sales management systems [3]

Revenue and Profit Performance - Revenue for 2023 decreased to HKD 7,323,532 thousand from HKD 7,946,733 thousand in 2022, representing a decline of 7.8%[2][4] - Net profit attributable to equity holders dropped to HKD 325,309 thousand in 2023 from HKD 611,366 thousand in 2022, a decrease of 46.8%[2][4] - Operating profit declined to HKD 130,435 thousand in 2023 from HKD 668,889 thousand in 2022[4] - Revenue from clothing care products decreased to 6,500,671 thousand HKD in 2023 from 6,821,397 thousand HKD in 2022[17] - Revenue from personal care products dropped to 447,008 thousand HKD in 2023 from 619,015 thousand HKD in 2022[17] - Revenue from home care products declined to 375,853 thousand HKD in 2023 from 506,321 thousand HKD in 2022[17] - Total revenue decreased to 7,323,532 thousand HKD in 2023 from 7,946,733 thousand HKD in 2022[17] - Revenue for 2023 was HK$7,323.5 million, a decrease of 7.8% compared to HK$7,946.7 million in 2022, primarily due to the depreciation of the RMB against the HKD[33][34] - Net profit for 2023 was HK$325.3 million, a significant decrease of 46.8% compared to the previous year[33] - Gross profit decreased by approximately 1.2% from HK$4,595.4 million in 2022 to HK$4,540.4 million in 2023, while gross margin increased from 57.8% to 62.0%[39] - Operating profit declined sharply by 80.5% from HK$668.9 million in 2022 to HK$130.4 million in 2023[43] - Profit attributable to equity holders decreased by 46.8% from HK$611.4 million in 2022 to HK$325.3 million in 2023[47] Earnings Per Share and Dividends - Basic earnings per share decreased to 5.84 HK cents in 2023 from 10.92 HK cents in 2022[5] - The Board proposed a final dividend of 6.0 HK cents per share for 2023[2] - The company's basic earnings per share (EPS) for 2023 was 5.84 HK cents, a decrease from 10.92 HK cents in 2022[23] - The company's diluted earnings per share (EPS) for 2023 was 5.84 HK cents, compared to 10.87 HK cents in 2022[24] - The company proposed a final dividend of 6.0 HK cents per share for 2023, down from 16.8 HK cents per share in 2022[25] - A final dividend of 6.0 HK cents per share for the year ended December 31, 2023, has been proposed[58] - The final dividend will be paid on June 24, 2024, to shareholders registered by June 18, 2024[65] Assets and Liabilities - Total assets decreased to HKD 12,052,641 thousand in 2023 from HKD 12,729,725 thousand in 2022[6] - Cash and cash equivalents declined to HKD 4,342,528 thousand in 2023 from HKD 7,702,373 thousand in 2022[6] - Trade receivables and bills decreased to HKD 1,404,647 thousand in 2023 from HKD 2,050,546 thousand in 2022[6] - Total equity decreased to HKD 10,379,043 thousand in 2023 from HKD 11,072,780 thousand in 2022[6] - Non-current assets in Hong Kong decreased to 18,728 thousand HKD in 2023 from 21,283 thousand HKD in 2022[16] - Non-current assets in Mainland China decreased to 2,069,079 thousand HKD in 2023 from 2,236,921 thousand HKD in 2022[16] - The company's trade receivables and bills receivable decreased to 1,404,647 thousand HKD in 2023 from 2,050,546 thousand HKD in 2022[27] - The company's trade payables and bills payable increased to 578,074 thousand HKD in 2023 from 481,161 thousand HKD in 2022[30] - The company's property, plant, and equipment had a net book value of 1,455,289 thousand HKD at the end of 2023, compared to 1,487,737 thousand HKD at the beginning of the year[26] - Bank deposits and cash decreased by HK$370.6 million to HK$7,331.8 million in 2023, mainly due to dividend payments[49] - The company maintained a strong liquidity position with a current ratio of 6.70x and no borrowings as of December 31, 2023[49] Costs and Expenses - Cost of goods sold decreased to 2,465,826 thousand HKD in 2023 from 3,036,104 thousand HKD in 2022[19] - Employee benefits expenses remained stable at 1,817,757 thousand HKD in 2023 compared to 1,819,456 thousand HKD in 2022[19] - Promotion expenses increased significantly to 1,290,058 thousand HKD in 2023 from 589,607 thousand HKD in 2022[19] - Tax expenses decreased to 70,600 thousand HKD in 2023 from 226,691 thousand HKD in 2022[20] - The company's income tax expense for 2023 was primarily related to the provision for enterprise income tax for subsidiaries operating in China[21] - Cost of sales decreased by 17.0% to HK$2,783.1 million in 2023, primarily due to lower raw material costs[38] - Sales and distribution expenses increased by 22.4% from HK$2,651.0 million in 2022 to HK$3,244.1 million in 2023, driven by expanded promotional activities[41] - The effective tax rate decreased from 27.0% in 2022 to 17.8% in 2023, benefiting from increased offshore interest income[46] Sales Channels and Product Performance - Online sales channels contributed 52.0% of total revenue in 2023, up from 47.3% in 2022, driven by strong performance in emerging online platforms[37] - Offline distributor sales decreased by 15.3% in 2023, while direct sales to large customers dropped by 18.5%, mainly due to reduced sales to delayed payment customers[37] - Sales of laundry care products accounted for 88.8% of total revenue in 2023, a slight decrease from 85.8% in 2022[35] - Personal care and home care product sales declined by 27.8% and 25.8% respectively in 2023, attributed to reduced demand for disinfection products post-pandemic[35][36] - The company launched new products such as the "Jingxiang Foam Body Wash" in the second half of 2023, expanding its product portfolio[31] - The company ranked first in the laundry care category on JD.com and Douyin during major shopping festivals like "618" and "Double 11" in 2023[32] - The company optimized its offline distribution network, focusing on inventory management and expanding coverage in counties and townships across China[31] Financial and Operational Highlights - Gross profit margin improved to 62.0% in 2023, up from 57.8% in 2022[2][4] - The company's weighted average number of ordinary shares for calculating basic EPS was 5,570,307 thousand shares in 2023, down from 5,600,321 thousand shares in 2022[22] - Other income and net gains decreased significantly from HK$100.1 million in 2022 to HK$36.8 million in 2023, primarily due to reduced foreign exchange losses[40] - Financial income increased by 52.3% to HK$272.2 million in 2023, driven by higher short-term deposits and USD deposit rates[44] - Capital expenditures for 2023 amounted to HK$85.3 million, primarily for expanding production capacity[49] - The company has obtained a total of 1,169 registered trademarks, 335 patents, and 234 copyrights in China as of December 31, 2023[54] - The company had approximately 7,957 employees as of December 31, 2023, with competitive salary levels[55] - Under the 2021 Share Award Scheme, 21,414,999 shares were granted to 366 employees, with 8,621,514 shares vested as of December 31, 2023[55] - No shares were granted under the 2022 Share Award Scheme as of December 31, 2023[56] - The company plans to enhance its omnichannel sales and distribution network, focusing on increasing market penetration on major e-commerce platforms and expanding influence on emerging online platforms[57] - The company aims to accelerate digitalization and upgrade its manufacturing network to improve operational efficiency[57] - The company maintains a public float of 24.06% of its issued share capital, in compliance with the Hong Kong Stock Exchange's requirements[63] - The company's annual general meeting will be held on June 7, 2024, with the notice issued on April 26, 2024[64] - The net proceeds from the global offering amounted to HKD 11,004 million, with HKD 3,380 million remaining for business expansion and laundry services development[67][68] - HKD 1,661 million of the net proceeds is allocated for enhancing brand awareness, sales, and distribution networks, with the balance expected to be fully utilized by the end of 2025[67][68] - HKD 89 million of the net proceeds is allocated for R&D enhancement, with the balance expected to be fully utilized by the end of 2025[67][68] - The total unused net proceeds as of December 31, 2023, amounted to HKD 5,130 million[67] - The company's performance announcement and annual report are available on the HKEX and company websites[69]

Business Strategy and Operations - In the first half of 2023, Blue Moon Group Holdings Limited continued to focus on consumer-centric strategies, optimizing operations through product development, sales, distribution networks, and digital marketing[16]. - The company maintained its leadership in laundry care, with its laundry liquid and hand wash ranked first in the China Brand Power Index for 13 consecutive years from 2011 to 2023[10]. - Blue Moon Group has expanded its product portfolio, launching targeted new products such as specialized laundry liquids for underwear, antibacterial and deodorizing laundry liquids, and sports laundry liquids since 2021[16]. - The company operates four production bases in Guangzhou, Tianjin, Kunshan, and Chongqing as of June 30, 2023[11]. - Blue Moon Group is enhancing its sales and distribution channels, focusing on reaching new consumers and increasing brand exposure through systematic market expansion[16]. - The company aims to penetrate rural markets and deepen channel engagement, with a strategy to optimize its distribution network by appointing capable distributors[16]. - Blue Moon Group has set specific business targets for various regions in China, including distributor coverage, store coverage, and brand penetration metrics[16]. - The company has been actively promoting its new products and expanding its offline sales coverage through the establishment of new sample stores[16]. Financial Performance - For the six months ended June 30, 2023, the company recorded a loss attributable to equity holders of approximately HKD 167.5 million, compared to a loss of HKD 148.9 million for the same period in 2022[20]. - Revenue for the six months ended June 30, 2023, was approximately HKD 2,222.7 million, a decrease of about 22.9% from HKD 2,883.5 million for the same period in 2022[21]. - The sales of laundry care products amounted to HKD 1,957.97 million, representing 88.1% of total revenue, down 20.1% from HKD 2,451.36 million in the previous year[22]. - Gross profit for the six months ended June 30, 2023, was approximately HKD 1,227.6 million, down about 19.7% from HKD 1,529.6 million in the same period in 2022[27]. - The gross margin increased from 53.0% for the six months ended June 30, 2022, to 55.2% for the same period in 2023[27]. - The operating loss for the six months ended June 30, 2023, was approximately HKD 431.4 million, compared to an operating loss of approximately HKD 245.9 million for the same period in 2022[32]. - The company reported a basic loss attributable to equity holders of approximately HKD 167,462,000 for the six months ended June 30, 2023, compared to a loss of HKD 148,872,000 for the same period in 2022, representing an increase in loss of about 12.5%[105]. - The basic loss per share for the six months ended June 30, 2023, was HKD 3.01, compared to HKD 2.65 for the same period in 2022, indicating a decline of approximately 13.6%[105]. Cash Flow and Assets - The group reported a net cash inflow from operating activities of HKD 172,074 thousand for the six months ended June 30, 2023, compared to a net cash outflow of HKD 703,944 thousand in the same period of 2022[76]. - Total assets decreased from HKD 12,729,725 thousand as of December 31, 2022, to HKD 11,752,107 thousand as of June 30, 2023, representing a decline of approximately 7.66%[73]. - Cash and cash equivalents slightly decreased from HKD 7,702,373 thousand to HKD 7,686,907 thousand, a reduction of about 0.20%[76]. - Trade receivables dropped significantly from HKD 2,050,546 thousand to HKD 890,618 thousand, a decrease of approximately 56.6%[73]. - The company’s retained earnings decreased from HKD 1,948,227 thousand to HKD 844,724 thousand, a decline of approximately 56.6%[75]. - The net cash outflow from investing activities was HKD 67,952 thousand for the six months ended June 30, 2023, compared to HKD 156,869 thousand in the same period of 2022[76]. Shareholder Information and Governance - As of June 30, 2023, the total number of issued shares is 5,862,881,906, with ZED Group Limited holding 4,446,000,000 shares, representing 75.83% ownership[45]. - The company’s governance structure includes significant ownership concentration, with the top shareholder holding over 75%[50]. - The company has granted a total of 61,651,000 share options under the pre-IPO share option scheme, which includes three directors and several employees[53]. - The company has confirmed compliance with the corporate governance code applicable as of June 30, 2023[64]. - The company has a clear strategy for employee incentives through share options, aligning interests with shareholders[53]. Market and Product Development - The company plans to enhance its product offerings by launching new products in its three main categories and focusing on high-margin quality products[19]. - The company aims to strengthen its online sales and distribution networks while promoting new products across various channels[19]. - The company plans to continue its market expansion and product development initiatives as part of its long-term growth strategy[125]. Expenses and Liabilities - Sales and distribution expenses decreased by approximately 7.7% to about HKD 1,059.0 million for the six months ended June 30, 2023, compared to approximately HKD 1,146.8 million for the same period in 2022, mainly due to the depreciation of the RMB against the HKD[29]. - General and administrative expenses increased by approximately 7.7% to about HKD 540.7 million for the six months ended June 30, 2023, from approximately HKD 502.2 million for the same period in 2022, primarily due to increased employee costs from a larger administrative and R&D workforce[30]. - Total liabilities rose from HKD 1,656,945 thousand to HKD 1,942,622 thousand, an increase of about 17.3%[74]. - The group reported a total expense of HKD 2,594,806,000 for the six months ended June 30, 2023, down from HKD 3,002,808,000 in the previous year, representing a decrease of 13.6%[98]. Taxation and Financial Income - The group recorded a tax credit of approximately HKD 130.3 million for the six months ended June 30, 2023, compared to a tax credit of approximately HKD 19.5 million for the same period in 2022, with the effective tax rate rising from approximately 11.6% to 43.8%[35]. - Financial income increased by approximately 60.6% to about HKD 137.0 million for the six months ended June 30, 2023, from approximately HKD 85.3 million for the same period in 2022, mainly due to increased term deposits and higher interest rates on USD deposits[33].

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 2,222,727, a decrease of 22.9% compared to HKD 2,883,465 for the same period in 2022[2]. - Gross profit for the same period was HKD 1,227,596, resulting in a gross margin of 53.0%, down from HKD 1,529,617 in 2022[2][4]. - The company reported a loss attributable to equity holders of HKD 167,462 for the six months ended June 30, 2023, compared to a loss of HKD 148,872 in 2022, representing an increase in loss of 12.0%[2][5]. - Total comprehensive loss for the period was HKD 347,042, significantly higher than HKD 169,704 in the previous year[5]. - The total revenue for the six months ended June 30, 2023, was HKD 2,222,727,000, a decrease of 22.9% compared to HKD 2,883,465,000 for the same period in 2022[15]. - The revenue from clothing care products was HKD 1,957,974,000, down 20.1% from HKD 2,451,361,000 in the previous year[15]. - The net loss attributable to equity holders for the six months ended June 30, 2023, was HKD 167,462,000, compared to a loss of HKD 148,872,000 for the same period in 2022, resulting in a basic loss per share of HKD 3.01[21][22]. - Operating loss for the six months ended June 30, 2023, was HKD 431.4 million, compared to an operating loss of HKD 245.9 million for the same period in 2022[43]. - Basic and diluted loss per share for the six months ended June 30, 2023, was HKD 3.01, compared to HKD 2.65 for the same period in 2022[48]. Assets and Liabilities - Cash and cash equivalents as of June 30, 2023, were HKD 7,686,907, slightly down from HKD 7,702,373 at the end of 2022[6]. - Total assets decreased to HKD 11,752,107 as of June 30, 2023, from HKD 12,729,725 at the end of 2022[6][7]. - The company's total equity attributable to owners was HKD 9,809,485, down from HKD 11,072,780 at the end of 2022[6][7]. - Trade receivables and other receivables amounted to HKD 890,618 and HKD 324,965 respectively, compared to HKD 2,050,546 and HKD 349,006 at the end of 2022[6]. - Trade payables and notes payable as of June 30, 2023, total HKD 304,840,000, a decrease from HKD 481,161,000 as of December 31, 2022[30]. - The company had no borrowings as of June 30, 2023, maintaining a current ratio of approximately 5.24 times[48]. - As of June 30, 2023, the group had no significant contingent liabilities[50]. Inventory and Receivables - Inventory increased to HKD 348,234 as of June 30, 2023, compared to HKD 272,900 at the end of 2022, indicating a rise of 27.6%[6]. - Trade receivables and notes receivable as of June 30, 2023, amount to HKD 890,618,000, down from HKD 2,050,546,000 as of December 31, 2022[26]. - The company has a credit period of up to 60 days for major online and offline distributors, with trade receivables aging analysis showing HKD 1,046,886,000 net of loss provisions[26]. Dividends - The board has resolved not to declare an interim dividend for the six months ended June 30, 2023[2]. - The board proposed a final dividend of HKD 0.168 per share for the year ended December 31, 2022, amounting to approximately HKD 936,041,000, which was approved by shareholders[24]. - The company has not declared any interim dividend for the six months ended June 30, 2023[24]. - The board decided not to declare an interim dividend for the six months ending June 30, 2023[52]. Government Grants and Tax - The group received government grants amounting to HKD 18,772,000, down from HKD 34,569,000 in the previous year[16]. - The deferred tax credit for the six months ended June 30, 2023, was HKD 201,812,000, compared to HKD 132,819,000 in the previous year[18]. - The company recorded a tax credit of HKD 130.3 million for the six months ended June 30, 2023, compared to HKD 19.5 million in the same period of 2022, with the effective tax rate rising to 43.8%[46]. Operational Insights - The group operates a single business segment focused on the manufacturing, sales, and distribution of cleaning products, with no separate segment analysis presented[14]. - The company plans to enhance its product offerings by introducing new products in its three main categories, focusing on high-margin quality products[33]. - The company aims to strengthen its online sales channels and increase its influence on emerging online sales platforms while promoting new products[33]. - The company will continue to improve its digital infrastructure and operational processes to enhance efficiency[33]. - The company emphasizes its commitment to social responsibility and sustainable development in its product development and manufacturing processes[33]. Employee and Shareholder Information - The group employed approximately 8,758 employees as of June 30, 2023, with competitive salary levels maintained[50]. - Under the 2021 Share Award Scheme, 12,022,999 shares were granted to 347 employees, with 3,649,766 shares already vested as of June 30, 2023[50]. - No awards were granted under the 2022 Share Award Scheme, and no shares were vested, cancelled, or lapsed during the six months ending June 30, 2023[51]. Future Plans and Investments - The net proceeds from the IPO in December 2020 amounted to approximately HKD 11,004 million, with HKD 6,645 million remaining unutilized as of June 30, 2023[58]. - Funds for business expansion, including capacity expansion plans, amounted to HKD 3,415 million remaining unutilized as of June 30, 2023[59]. - The expected unutilized amount for enhancing brand awareness and increasing product penetration is HKD 3,115 million, projected to be fully utilized by the end of 2025[59]. - The expected unutilized amount for enhancing R&D capabilities is HKD 115 million, also projected to be fully utilized by the end of 2025[59]. Reporting and Governance - The mid-term performance announcement and report will be published on the Hong Kong Stock Exchange and the company's website[60]. - The board of directors includes both executive and independent non-executive members, ensuring diverse oversight[61].