Financial Performance - Total revenue for 2022 was HKD 7,946.7 million, an increase of 4.6% from HKD 7,597.5 million in 2021[6]. - Gross profit for 2022 was HKD 4,595.4 million, with a gross margin of 57.8%, down from 58.4% in 2021[6]. - Net profit attributable to equity holders for 2022 was HKD 611.4 million, a decrease of 39.7% from HKD 1,014.4 million in 2021[6]. - Adjusted EBITDA for 2022 was HKD 1,256.2 million, compared to HKD 1,457.0 million in 2021, reflecting a decline of 13.8%[6]. - The adjusted net profit for 2022 was HKD 767.4 million, down from HKD 949.9 million in 2021, indicating a need for strategic adjustments[6]. - Operating profit decreased by approximately 41.8% from about HKD 1,149.8 million for the year ended December 31, 2021, to about HKD 668.9 million for the year ended December 31, 2022[37]. - Profit before tax decreased by approximately 34.1% from about HKD 1,271.0 million for the year ended December 31, 2021, to about HKD 838.1 million for the year ended December 31, 2022[38]. - Basic and diluted earnings per share for the year ended December 31, 2022, were approximately HKD 0.1092 and HKD 0.1087, respectively, compared to HKD 0.1749 and HKD 0.1739 for the year ended December 31, 2021[39]. - The company incurred a total comprehensive loss of HKD 118,520 for the year ended December 31, 2022, compared to a total comprehensive income of HKD 1,244,243 in 2021[198]. Sales and Distribution - Online sales accounted for 47.3% of total revenue in 2022, down from 50.1% in 2021, while offline distributors increased to 40.9% from 35.8%[8]. - In 2022, the company's revenue increased by approximately 7.7% year-on-year, driven by strong offline sales growth and continuous reform of sales and distribution channels[18]. - The company maintained a leading position in online channels and ranked first in sales of clothing care products on major e-commerce platforms during key shopping festivals like "618" and "Double 11"[15]. - The company achieved a balanced online and offline sales ratio of approximately 50:50, indicating significant reform effectiveness and a solid foundation for future growth[15]. - The sales of laundry care products increased by approximately 5.7% to about HKD 6,821.4 million, driven by high penetration in offline channels and new product launches[29]. - Online sales channels contributed approximately HKD 3,756.9 million, accounting for 47.3% of total revenue, while offline distributors contributed HKD 3,252.6 million, representing a 19.7% increase[30]. Market Position and Strategy - The company maintained its market leadership with laundry detergent and hand sanitizer, holding the top market share for 13 and 10 consecutive years respectively[13]. - The company plans to enhance digitalization and supplier management to improve efficiency amid rising raw material costs and supply chain challenges[13]. - The company plans to upgrade and restructure its product portfolio, focusing on higher-margin quality products and diversifying within three product categories in 2023[23]. - The company aims to strengthen its omnichannel distribution network and increase product penetration through enhanced collaboration with major e-commerce platforms and expansion into emerging platforms[23]. - The company is focused on expanding its distribution network in lower-tier cities, with an increasing number of distributors and retail stores[15]. - The company plans to continue innovating across products, channels, and marketing strategies to provide safer and more efficient products and services in the recovering market[16]. Sustainability and Corporate Responsibility - Over 90% of the company's products received China Environmental Label certification, with 11 products certified as water-saving and 28 as green products by the end of 2022[16]. - The company actively participated in the development of green manufacturing standards for the detergent industry, contributing to the establishment of a unified technical specification for green manufacturing[17]. - The company’s Chongqing factory was recognized as a "Water Efficiency Leader" and a "Healthy Enterprise" in Chongqing, reflecting its commitment to sustainable production practices[16]. - The company made charitable donations of approximately HKD 17.8 million during the year[60]. - The company has committed to reducing its environmental impact and has complied with all relevant laws and regulations, including the Companies Ordinance and the Listing Rules[174]. Corporate Governance - The company has adopted the Corporate Governance Code as its own governance framework and has complied with all applicable provisions for the year ended December 31, 2022[133]. - The board of directors consists of five executive directors, one non-executive director, and three independent non-executive directors, complying with the listing rules[135]. - The board held a total of four meetings during the year ended December 31, 2022, in accordance with the Corporate Governance Code[137]. - The company has obtained written confirmations of independence from all independent non-executive directors, affirming their independence[135]. - The board is responsible for maintaining an effective risk management and internal control system to protect shareholder investments and the group's assets[166]. - The company has implemented appropriate directors' and officers' liability insurance, which is reviewed annually[136]. Risk Management - The group has established a comprehensive risk management framework since 2021 to effectively manage and mitigate inherent business risks[165]. - The risk management team conducts annual risk assessments from top to bottom, prioritizing risks based on their significance[165]. - The board will review the effectiveness of the risk management and internal control systems at least annually[166]. - The internal audit function operates independently from operational management and reviews key operational, financial, compliance, and risk management controls[167]. Shareholder Relations - The company emphasizes effective communication with stakeholders, including employees, shareholders, and investors, to enhance relationships and promote long-term development[175]. - The company encourages shareholders to participate in annual general meetings to express their opinions on the group's performance and strategies[179]. - The company has a shareholder communication policy in place to ensure timely access to comprehensive information regarding its financial performance and strategic goals[181]. - The independent auditor's report confirms that the consolidated financial statements reflect the group's financial position as of December 31, 2022, in accordance with Hong Kong Financial Reporting Standards[183]. Future Outlook - The company has set a future outlook with a revenue guidance of $200 million for the next quarter, indicating a projected growth of 33%[126]. - New product development is underway, with three innovative products expected to launch in Q3 2024, targeting a market expansion of 20%[127]. - The company plans to expand its market reach into Southeast Asia, aiming for a 15% market share by 2025[127]. - The management team emphasized the importance of technology development, allocating 10% of revenue towards R&D initiatives[125].

Financial Performance - The total revenue for the year ended December 31, 2022, was HKD 7,946,733, an increase of 4.6% compared to HKD 7,597,481 in 2021[6] - The adjusted profit for the year was HKD 611,366, a decrease of 39.7% from HKD 1,014,415 in 2021[7] - The gross profit margin for 2022 was approximately 57.9%, compared to 58.4% in 2021[6] - The basic earnings per share for 2022 was HKD 0.1092, down from HKD 0.1749 in 2021[7] - The diluted earnings per share for 2022 were HKD 10.87, down from HKD 17.39 in 2021, indicating a decrease of approximately 37.7%[25] - Net profit attributable to equity holders fell by 39.7% to HKD 611.4 million, primarily due to increased costs and foreign exchange losses[54] Revenue Breakdown - Revenue from clothing care products was HKD 6,821,397 thousand in 2022, up from HKD 6,456,510 thousand in 2021, indicating a growth of 5.6%[19] - Revenue from personal care products increased to HKD 619,015 thousand in 2022 from HKD 601,814 thousand in 2021, a rise of 2.8%[19] - Revenue from home care products decreased to HKD 506,321 thousand in 2022 from HKD 539,157 thousand in 2021, a decline of 6.1%[19] Costs and Expenses - The company reported a total cost of goods sold of HKD 3,036,104 thousand in 2022, compared to HKD 2,843,712 thousand in 2021, reflecting an increase of 6.8%[21] - Employee benefits expenses rose to HKD 1,819,456 thousand in 2022 from HKD 1,555,931 thousand in 2021, marking an increase of 16.9%[21] - Operating profit decreased by 41.8% to HKD 668.9 million due to increased costs and other losses[49] Cash and Assets - The net cash and cash equivalents decreased to HKD 7,702,373 from HKD 9,233,656 in 2021, representing a decline of 16.6%[9] - The total assets decreased to HKD 12,729,725 from HKD 14,511,736 in 2021, a reduction of 12.3%[10] - The company's equity attributable to shareholders decreased to HKD 11,072,780 from HKD 12,346,422 in 2021, a decline of 10.3%[10] Dividends - The company proposed a final dividend of HKD 0.168 per share for the year[5] - The proposed final dividend for 2022 is HKD 0.168 per share, an increase from HKD 0.138 per share in 2021, representing a growth of approximately 21.7%[26] Foreign Exchange and Tax - The company reported a foreign exchange loss of HKD 156,000, compared to a foreign exchange gain of HKD 64,500 in 2021[5] - The company’s income tax expense for 2022 was HKD 226,691 thousand, a decrease from HKD 256,596 thousand in 2021, representing a decline of 11.6%[22] Shareholder Information - The company had a total of 5,862,116,906 ordinary shares issued and fully paid as of December 31, 2022, compared to 5,859,575,000 shares at the end of 2021[30] - The weighted average number of ordinary shares used to calculate basic earnings per share was 5,600,321,000 for 2022, compared to 5,800,998,000 for 2021, a reduction of about 3.5%[25] Market Position and Strategy - The company continues to focus on the design, research, development, manufacturing, and sales of personal care, home care, and laundry care products in China[11] - The company maintained its leading position in the O2O platform for home care and laundry care products, ranking first in categories on platforms like Meituan and JD[36] - The company focused on customer-centric product development, launching a series of sports laundry detergents designed to remove bacteria, odors, and stains[35] Future Plans - In 2023, the company plans to upgrade and restructure its product portfolio, focusing on higher-margin quality products and diversifying across three product categories[69] - The company aims to strengthen its omnichannel distribution network and increase product penetration through enhanced collaboration with major e-commerce platforms and expansion into emerging platforms[69] Utilization of IPO Proceeds - The net proceeds from the IPO in December 2020 amounted to HKD 11,004 million, which will continue to be utilized as per the prospectus[76] - As of December 31, 2022, approximately HKD 3,680 million remains unutilized for business expansion, including capacity expansion plans and the development of laundry services, expected to be fully utilized by the end of 2025[78]

Financial Performance - The company reported a revenue of HKD 2,883 million for the first half of 2022, compared to HKD 2,355 million in the same period of 2021, representing a growth of 22.3%[15]. - The company recorded a revenue of approximately HKD 2,883.5 million for the six months ended June 30, 2022, representing a year-on-year increase of about 22.4% compared to HKD 2,355.4 million for the same period in 2021[29]. - The total revenue for the first half of 2022 was approximately HKD 2,883.5 million, representing a 22.4% increase compared to HKD 2,355.4 million in the same period of 2021[31]. - The sales of laundry care products reached HKD 2,451.4 million, accounting for 85.0% of total revenue, with a growth of 25.2% year-on-year[31]. - The company faced a net loss of approximately HKD 148.9 million for the six months ended June 30, 2022, primarily due to foreign exchange losses from offshore RMB deposits[29]. - The company recorded a net loss attributable to equity holders of approximately HKD 148.9 million for the first half of 2022, compared to HKD 43.9 million in the same period of 2021[45]. - Operating loss for the first half of 2022 was approximately HKD 245.9 million, compared to an operating loss of HKD 97.7 million in the same period of 2021[41]. - The company reported a basic loss per share of HKD 2.65 for the period, compared to HKD 0.75 in the same period last year, highlighting increased losses on a per-share basis[78]. - The company reported a total comprehensive loss of HKD 169,704 for the period, which includes other comprehensive losses from foreign currency translation[81]. Gross Profit and Margins - Gross profit for the first half of 2022 was HKD 1,530 million, with a gross margin of 53.0%, compared to HKD 1,259 million and a gross margin of 53.5% in the first half of 2021[15]. - The gross profit for the same period was HKD 1,529,617 thousand, up 21.4% from HKD 1,259,463 thousand year-on-year[77]. - The gross profit for the first half of 2022 was approximately HKD 1,529.6 million, up 21.4% from HKD 1,259.5 million in the same period of 2021, maintaining a gross margin of 53.0%[36]. Market Position and Product Development - The company maintained its leading market share in laundry liquid and hand wash products for 13 years and 10 years respectively, according to industry statistics[13]. - The company has expanded its product portfolio to include three main categories: fabric care, personal care, and home care, enhancing its brand matrix[13]. - The company plans to continue focusing on consumer needs and technological innovation to drive product upgrades and market expansion[13]. - The company has successfully launched innovative products, including the first pump-head measuring packaging for laundry liquid in China[13]. - The company introduced four new clothing care products and one new personal care product in the first half of 2022, focusing on sportswear laundry detergent[20]. - The company aims to improve consumer experience by offering a full suite of products and services, including laundry services and a membership program[28]. - The company’s laundry detergent and hand wash ranked first in brand power index in China for 12 and 13 consecutive years, respectively[20]. Sales and Distribution Channels - Online sales channels contributed significantly to revenue, with direct sales to major clients also playing a crucial role in distribution[15]. - The company maintained its leading position in online sales, ranking first in multiple online platforms during the "618 Shopping Festival" in June 2022[26]. - The company continues to strengthen its sales and distribution channels, expanding into convenience stores and local shops across China[23]. - The company plans to expand and upgrade its product portfolio, enhance its distribution network, and strengthen partnerships with major e-commerce platforms to capture opportunities in various city tiers[27]. Financial Position and Assets - The company had cash and cash equivalents totaling approximately HKD 8,262.5 million as of June 30, 2022, a decrease of HKD 971.2 million from HKD 9,233.7 million at the end of 2021[47]. - The total assets as of June 30, 2022, were HKD 13,257,352 thousand, down from HKD 14,511,736 thousand at the end of 2021, indicating a decrease in asset value[79]. - The company’s total equity decreased to HKD 11,210,934 thousand from HKD 12,346,422 thousand, reflecting a decline in shareholder value[79]. - The company’s retained earnings as of June 30, 2022, were HKD 1,291,757, a decrease from HKD 2,213,813 at the beginning of the year[81]. - The company’s total reserves decreased to HKD 9,860,563 as of June 30, 2022, from HKD 10,074,014 at the beginning of the year[81]. Production and Capacity Expansion - The company has established multiple production bases across China, enhancing its geographical coverage in key regions[15]. - The new production facility in Chongqing commenced commercial production on July 6, 2022, with a total construction area of approximately 49,000 square meters and an annual capacity of 100,000 tons[52]. - The new production facility is expected to add up to 11 additional production lines for various cleaning products, including disinfectants and bleach[52]. - Capital expenditure for the first half of 2022 was approximately HKD 149.2 million, mainly for expanding production capacity[48]. Employee and Shareholder Information - The group has approximately 8,190 employees as of June 30, 2022, with competitive salary levels maintained[51]. - As of June 30, 2022, the total number of issued shares was 5,861,433,500, with significant shareholdings by directors, including 75.85% held by Ms. Pan Dong and Mr. Luo Qiuping[54]. - The shareholding structure indicates a concentrated ownership, with the top four shareholders holding over 90% of the total shares[60]. - The company reported a total of HKD 12,163,000 in key management personnel compensation for the six months ended June 30, 2022, slightly down from HKD 12,705,000 in the same period of 2021[133]. Compliance and Governance - The company confirmed compliance with the Corporate Governance Code during the six months ended June 30, 2022[68]. - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers and confirmed compliance by all directors for the six months ended June 30, 2022[69]. - The company’s audit committee reviewed the accounting principles and practices adopted by the group for the six months ended June 30, 2022[71]. Risks and Financial Management - The group’s activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[95]. - The group measures equity investments at fair value, with changes recognized in other comprehensive income[90]. - The group’s financial risk management policies have not changed since the end of the previous year[95].

Financial Performance - The company achieved a revenue of HKD 7,597.48 million in 2021, representing an 8.6% increase compared to HKD 6,996.35 million in 2020[22]. - The net profit for 2021 was HKD 1,014.42 million, down from HKD 1,309.41 million in 2020, indicating a decline of approximately 22.5%[22]. - The gross profit margin decreased to 58.4% in 2021 from 64.5% in 2020[12]. - The basic earnings per share (EPS) decreased to HKD 17.49 in 2021 from HKD 26.03 in 2020[12]. - Operating profit decreased by approximately 34.2% to HKD 1,149.8 million, primarily due to increased costs and reduced gross profit[46]. - The company recorded revenue of approximately HKD 7,597.5 million for the year ended December 31, 2021, representing an increase of about 8.6% compared to HKD 6,996.3 million for the year ended December 31, 2020[35]. - The company reported a total equity of HKD 12,346,422,000 as of December 31, 2021, up from HKD 11,679,421,000 at the beginning of the year[190]. - The company paid dividends amounting to HKD 2,704,284,000 in 2021, significantly higher than HKD 84,925,000 in 2020[196]. Sales and Market Performance - Online sales accounted for 50.1% of total revenue in 2021, slightly down from 53.9% in 2020, while offline distributors increased to 35.8% from 31.9%[14]. - In the second half of 2021, the company's revenue increased by 14.9% year-on-year, with offline distributor channel sales rising by 53.9%[24]. - The company ranked first in sales volume for home cleaning and clothing cleaning brands during the "618" and "Double 11" shopping festivals on major e-commerce platforms[27]. - Sales of clothing care products increased by approximately 15.4% to HKD 6,456.5 million in 2021, driven by a recovery in consumer demand post-COVID-19 and the introduction of new products[35]. - The company achieved the top market share in the clothing care category on major platforms during key shopping events, including the "618 Shopping Festival" and "Double 11 Shopping Festival" in 2021[31]. Product Development and Innovation - The company launched several new products in 2021, including antibacterial laundry liquid and automatic hand sanitizer, enhancing its home cleaning solutions[23]. - The company introduced two new clothing care products in 2021, contributing to a significant increase in revenue compared to the previous year[27]. - The company launched a new line of antibacterial laundry detergents and specialized laundry liquids in response to increased demand for clothing disinfection due to the pandemic[29]. - The company introduced a new automatic hand sanitizer dispenser and a no-rinse antibacterial hand sanitizer to meet consumer needs during the pandemic[29]. - The company has developed a total of 22 products that received the first batch of "China Green Product" certification[26]. Corporate Governance and Management - The company has a strong management team with extensive experience in technology development, strategic planning, and supply chain management[122]. - The board consists of five executive directors, one non-executive director, and three independent non-executive directors, complying with the listing rules regarding independent director requirements[134]. - The company has adopted the Corporate Governance Code and has complied with all applicable provisions for the year ended December 31, 2021[131]. - The board is committed to regularly reviewing and enhancing corporate governance practices to ensure compliance with the Corporate Governance Code[131]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[134]. Risk Management - The company has established a comprehensive risk management system since 2021 to effectively manage and mitigate inherent business risks, ensuring protection for the company, its customers, and partners[156]. - The risk management team conducts annual risk assessments from top to bottom, identifying and prioritizing significant risks based on their potential impact and likelihood[156]. - The internal audit function operates independently from the management team and reviews key operational, financial, compliance, and risk management controls[157]. Future Strategies and Investments - The company plans to enhance its sales and distribution network, particularly in rural areas of China, to improve product penetration and service to local consumers[33]. - The company aims to strengthen partnerships with major e-commerce platforms and capitalize on emerging platforms, including live-streaming e-commerce[34]. - The company will continue to innovate and diversify its product offerings to meet changing consumer demands and preferences[34]. - The company aims to enhance R&D capabilities with an allocation of HKD 220 million, of which HKD 43 million was utilized, leaving HKD 177 million unutilized[114]. Shareholder Engagement - The company encourages shareholders to participate in annual general meetings to express their opinions on performance, operations, and strategies[170]. - Shareholders have the right to request the convening of a special general meeting if they hold at least 10% of the paid-up capital[169]. - The company regularly holds investor and analyst briefings, roadshows, and press conferences to facilitate communication with investors and shareholders[167].

Financial Performance - For the six months ended June 30, 2021, the company recorded revenue of approximately HKD 2,355.4 million, a decrease of about 3.3% compared to HKD 2,435.9 million for the same period in 2020[13]. - The company reported a loss of approximately HKD 43.9 million, a decline of about 114.5% compared to a profit of HKD 302.2 million for the same period in 2020[13]. - The total revenue for the first half of 2021 was approximately HKD 2,355.4 million, a decrease of 3.3% compared to HKD 2,435.9 million in the same period of 2020[15]. - Gross profit for the first half of 2021 was approximately HKD 1,259.5 million, down 19.2% from HKD 1,558.6 million in the same period of 2020, resulting in a gross margin of 53.5%[19]. - The company recorded an operating loss of approximately HKD 97.7 million for the first half of 2021, compared to an operating profit of HKD 429.4 million in the same period of 2020[24]. - The company reported a net loss of HKD 43,937,000 for the six months ended June 30, 2021, compared to a profit of HKD 302,193,000 in the prior year[57]. - The company’s earnings per share for the period was a loss of HKD 0.75, compared to a profit of HKD 6.04 in the same period last year[57]. - The company’s income tax expense for the six months ended June 30, 2021, was HKD 16,003,000, a significant decrease from HKD 126,612,000 in the same period of 2020[79]. Revenue Sources - Online sales channels contributed to revenue growth, with significant progress made through live streaming platforms, enhancing sales performance[11]. - Revenue from clothing care products was HKD 1,958.6 million, accounting for 83.1% of total revenue, with a year-on-year increase of 16.5%[15]. - Online sales channel revenue reached HKD 1,640.2 million, representing 69.6% of total revenue, an increase of 14.6% from HKD 1,431.6 million in the previous year[17]. - Revenue from laundry care products was HKD 1,958,616,000, an increase of 16.5% compared to HKD 1,681,407,000 in the previous year[76]. Expenses and Costs - Selling and distribution expenses increased by 12.2% to approximately HKD 916.3 million, primarily due to increased promotional spending in online channels and higher transportation costs[21]. - General and administrative expenses rose by 29.8% to approximately HKD 449.4 million, mainly due to increased employee costs and the absence of government subsidies[22]. - The total expenses for the six months ended June 30, 2021, amounted to HKD 2,461,675,000, compared to HKD 2,039,805,000 in 2020, reflecting an increase of 20.7%[77]. - Employee benefit expenses increased to HKD 680,750,000 from HKD 585,688,000, marking a rise of 16.2%[77]. - The cost of raw materials consumed was HKD 933,498,000, up from HKD 818,137,000 in 2020, reflecting an increase of 14.1%[77]. Cash Flow and Assets - As of June 30, 2021, the company's cash and cash equivalents totaled approximately HKD 9,904.7 million, a decrease of about HKD 1,034.2 million from HKD 10,938.9 million as of December 31, 2020[28]. - The company's current assets net value was approximately HKD 10,778 million as of June 30, 2021, up from HKD 9,794 million as of December 31, 2020, with a current ratio of approximately 9.4 times[28]. - The company reported a net cash outflow from operating activities of HKD 71,392 thousand for the six months ended June 30, 2021, compared to a net inflow of HKD 526,908 thousand in the previous period[61]. - Total assets decreased to HKD 14,194,683 thousand from HKD 15,803,137 thousand, representing a decline of approximately 10.2% year-over-year[58]. - The company's cash and cash equivalents decreased to HKD 9,904,671 thousand from HKD 10,921,095 thousand, a reduction of about 9.3%[61]. Shareholder Information - ZED Group Limited directly holds 75.69% of shares and indirectly holds 0.19% through Van Group Limited[36]. - As of June 30, 2021, the total number of issued shares is 5,859,195,000, with ZED holding 4,446,000,000 shares, representing 75.88%[40]. - HCM BM Holdings, Ltd. holds 500,000,000 shares, accounting for 8.53% of the total shares[40]. - Gaoling Fund, L.P. holds 542,765,000 shares, representing 9.26% of the total shares[40]. - Hillhouse Capital Advisors, Ltd. holds 544,922,500 shares, which is 9.30% of the total shares[40]. - The board has decided not to declare an interim dividend for the six months ended June 30, 2021[45]. Strategic Initiatives - The company plans to optimize its distribution network by improving resource allocation and inventory management, aiming for structural optimization by Q3 2021[12]. - The company aims to strengthen partnerships with major e-commerce platforms and capitalize on emerging platforms, including live streaming and fresh e-commerce[12]. - A strategic cooperation framework agreement was signed on August 13, 2021, with COFCO Packaging Investment Co., Ltd., focusing on sustainable development and collaborative R&D until December 31, 2026[33]. Employee and Management Information - As of June 30, 2021, the company had approximately 7,212 employees, with competitive salary levels maintained[31]. - On September 17, 2021, the company granted 7,048,000 share awards to 321 employees under the share incentive plan[33]. - The total remuneration for key management personnel was 11,040 thousand HKD for the six months ended June 30, 2021, an increase from 7,259 thousand HKD in the same period of 2020[99].