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].

Financial Performance - The company's revenue for 2020 was HKD 6,996,348, a decrease of 0.8% from HKD 7,049,905 in 2019[10] - Gross profit for 2020 was HKD 4,513,756, resulting in a gross margin of 64.5%, compared to 64.2% in 2019[10] - Net profit attributable to equity holders was HKD 1,309,411, representing a 21.3% increase from HKD 1,079,617 in 2019[10] - Basic earnings per share increased to HKD 26.03 from HKD 21.59, reflecting a growth of 20.3%[10] - Operating profit increased by approximately 16.3% to HKD 1,746.1 million for the year ended December 31, 2020[36] - Profit before tax increased by approximately 18.6% from HKD 1,475.2 million to HKD 1,749.6 million[48] - The company reported a total comprehensive income of HKD 1,528,168 thousand for the year ended December 31, 2020, compared to HKD 1,005,296 thousand in 2019, marking an increase of 52.0%[176] Revenue Streams - Online sales channel revenue grew to HKD 3,774,453, accounting for 53.9% of total revenue, up from 47.2% in 2019[13] - The personal care product segment saw revenue increase to HKD 835,738, representing 11.9% of total revenue, compared to 5.9% in 2019[12] - Sales of laundry care products decreased by 9.4% to HKD 5,595.9 million, while personal care products and home care products saw significant increases of 99.7% and 24.5%, respectively[38] Operational Efficiency - The inventory turnover days improved from 96.8 days in 2017 to 62.2 days in 2020, indicating enhanced operational efficiency through digital transformation[25] - The average logistics cost for products sold in online self-operated stores decreased by approximately 6.3% compared to the previous year, reflecting improvements in overall logistics management[26] - The company plans to enhance its digitalization and production network to improve operational efficiency, focusing on sales, distribution, supply chain, and inventory management[34] Market Strategy - The company aims to enhance its market presence through new product development and strategic partnerships[20] - The company has expanded its high-end product offerings to capture increased consumer spending in the premium market segment[31] - The company continues to implement knowledge marketing strategies to educate consumers about household cleaning and enhance customer engagement[31] Corporate Governance - The company has adopted the Corporate Governance Code as its own governance framework since its listing date[121] - The board has confirmed compliance with the Corporate Governance Code from the listing date until December 31, 2020[121] - The board consists of five executive directors, one non-executive director, and three independent non-executive directors, meeting the requirement of having at least one-third independent directors[123] Shareholder Information - The dividend payout ratio for 2020 was 30.3%, with a final dividend of HKD 6.90 per share[10] - The company declared dividends amounting to HKD 2,336,664 thousand in 2020, compared to HKD 48,261 thousand in 2019, indicating a substantial increase[176] - The company will pay the final dividend on or around July 30, 2021, to shareholders listed on July 7, 2021[63] Social Responsibility - The company actively responded to social responsibility initiatives, donating RMB 5.3 million worth of epidemic prevention materials during the COVID-19 outbreak[27] - The company donated disinfectant products worth RMB 5.3 million to non-profit organizations in Hubei province to support healthcare workers and the public during the pandemic[32] - The group made charitable donations of approximately HKD 20.3 million in the year ended December 31, 2020, compared to HKD 16.2 million in 2019[66] Future Outlook - The company has set a future outlook with a revenue guidance of HKD 5 billion for the upcoming fiscal year, indicating a 20% growth target[110] - New product development initiatives are underway, focusing on eco-friendly cleaning products, expected to launch in Q3 2024[109] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by 2025[107] Risk Management - The board is responsible for maintaining an effective risk management and internal control system to protect shareholder investments and group assets[141] - The company has implemented a comprehensive risk management framework since 2021, focusing on risk identification, assessment, and management[142] - The board will review the risk management and internal control systems at least annually to ensure their effectiveness[143] Financial Position - As of December 31, 2020, the group's cash and cash equivalents totaled approximately HKD 10,938.9 million, an increase of approximately HKD 10,222.9 million from HKD 716.0 million[51] - Total assets rose significantly to HKD 15,803,137, an increase of 213.5% from HKD 5,040,691 in 2019[172] - The company's total equity reached HKD 11,679,421, a significant increase from HKD 2,863,079 in 2019, reflecting a growth of 308.5%[172] Audit and Compliance - The independent auditor confirmed that the consolidated financial statements reflect a true and fair view of the group's financial position as of December 31, 2020[159] - The audit committee oversees the financial reporting process of the group[165] - The audit identified key audit matters related to the expected credit loss provision for trade receivables, which involves significant judgment and subjective assumptions[163]