Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 91,706,000, an increase of 38.4% compared to RMB 66,323,000 for the previous year[6] - The cost of sales for the fiscal year was RMB 66,207,000, which represents a 36.3% increase from RMB 48,582,000 in the prior year[6] - Gross profit for the year was RMB 25,499,000, reflecting a 43.8% increase compared to RMB 17,741,000 from the previous year[6] - The company recorded a net loss of RMB 8,258,000 for the fiscal year, an improvement from a net loss of RMB 21,634,000 in the previous year[6] - Basic loss per share for the year was RMB 0.83, compared to RMB 2.55 in the prior year, indicating a reduction in losses per share[6] Assets and Liabilities - Total assets increased to RMB 49,472 million in 2024 from RMB 40,460 million in 2023, representing a growth of 22.4%[7] - Current liabilities rose to RMB 15,448 million in 2024 compared to RMB 11,786 million in 2023, indicating an increase of 31.3%[7] - Net current assets improved to RMB 34,024 million in 2024, up from RMB 28,674 million in 2023, reflecting a growth of 18.6%[7] - Total equity increased to RMB 34,803 million in 2024 from RMB 28,372 million in 2023, marking a rise of 22.9%[7] - Cash and cash equivalents reached RMB 21,062 million in 2024, compared to RMB 19,725 million in 2023, showing an increase of 6.8%[7] Revenue Breakdown - Revenue from sales of printed products increased to RMB 28,584,000 in 2024 from RMB 25,319,000 in 2023, representing an increase of approximately 9%[13] - Revenue from sales of woven labels rose to RMB 13,443,000 in 2024 compared to RMB 10,739,000 in 2023, marking a growth of about 25%[13] - The group’s revenue from garment manufacturers increased to RMB 50,582,000 in 2024 from RMB 41,632,000 in 2023, showing a growth of approximately 21%[13] Taxation and Compliance - The group is subject to a corporate income tax rate of 25% in China, with a preferential rate of 15% applicable to certain qualifying subsidiaries[16][17] - The group’s income tax provision for the year was RMB 252,000, compared to RMB 233,000 in the previous year, reflecting a slight increase[16] - The income tax expense for 2024 was calculated at RMB 2,002,000, reflecting a tax rate of 25% based on the pre-tax loss[18] Employee and Operational Costs - The total employee costs, including salaries and benefits, rose to RMB 24,481,000 in 2024 from RMB 19,049,000 in 2023, reflecting a 28% increase[20] - The company experienced a foreign exchange loss of RMB 53,000 in 2024, down from RMB 111,000 in 2023, suggesting improved currency management[22] - Employee costs, including director remuneration, amounted to approximately RMB 33.1 million for the year ending December 31, 2024, compared to approximately RMB 24.7 million in 2023, representing an increase of about 34.2%[54] Shareholder Information - The company did not declare or approve any dividends for the years ending December 31, 2024, and December 31, 2023[24] - Total issued and fully paid shares as of December 31, 2024, amounted to 1,020,000,000 shares[27] - The board of directors resolved not to declare any final dividend for the fiscal year ending December 31, 2024, consistent with the previous year[48] Strategic Initiatives - The group plans to continue investing more resources in marketing to attract potential customers and expand its customer base[34] - The group is exploring new business opportunities, including the production and sale of functional textile products[34] - The acquisition of 90% of Shenzhen Guansheng Tong Technology Co., Ltd. is expected to diversify the group's business scope and expand future revenue sources[32] Governance and Compliance - The company has adhered to all applicable corporate governance codes as of December 31, 2024, ensuring transparency and accountability[80] - The company has confirmed full compliance with the trading standards set out in the GEM Listing Rules as of December 31, 2024[81] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the consolidated financial statements for the year ending December 31, 2024, and found them to comply with applicable accounting standards and GEM Listing Rules[82] Future Outlook - The company aims to optimize debt and equity balance to enhance shareholder returns while ensuring ongoing operations[29] - The company plans to invest HKD 5.1 million in information technology companies or projects, with HKD 0.3 million allocated for operational funding[68] - The company aims to enhance its production capabilities and expand its market presence through strategic investments and acquisitions[71]

Financial Performance - For the fiscal year ending December 31, 2023, the company reported a revenue decrease of approximately 1.5% to RMB 66.3 million from RMB 67.3 million in the previous fiscal year[2]. - The company's gross profit declined by about 10.2% to RMB 17.7 million, down from RMB 19.7 million in the previous fiscal year[2]. - The company recorded a loss of approximately RMB 11.7 million for the fiscal year 2023, compared to a loss of RMB 6.8 million in the fiscal year 2022[2]. Impairment Loss - The impairment loss on non-financial assets amounted to RMB 9.9 million, primarily related to property, plant and equipment, intangible assets, and right-of-use assets[1]. - The impairment assessment for 2023 revealed that the recoverable amounts for property, plant and equipment, intangible assets, and right-of-use assets were all zero RMB[9]. - The carrying amounts of the aforementioned assets exceeded their recoverable amounts, resulting in an impairment loss recognized in the profit and loss for the fiscal year 2023[9]. - The carrying amounts were approximately RMB 8,522,000 for property, RMB 696,000 for plant and equipment, and RMB 719,000 for intangible assets[9]. - The impairment assessment policy is in accordance with Hong Kong Accounting Standard 36, which requires a review of asset values upon any indication of impairment[8]. - The company aims to provide additional information regarding the impairment loss for shareholders and investors[1]. Budget and Forecast - The budgeted revenue growth rate for the next five years was set at 0%, a decrease from the 1% growth rate used in the previous year's assessment[5]. - The budgeted gross margin for the fiscal year 2023 was adjusted to 26%, down from 29% in the previous fiscal year, reflecting the actual performance of the cash-generating unit[7]. Market Conditions - The company attributed the revenue decline to intense price competition, rising operating costs, and economic slowdowns in China[6]. Discount Rate - The discount rate used for the impairment assessment in 2023 was 18.15%, up from 17.5% in 2022, reflecting adjustments in the risk-free rate[4].

Financial Performance - For the six months ended June 30, 2024, the group recorded unaudited revenue of approximately RMB 39.7 million, an increase of about 16.4% compared to RMB 34.1 million for the same period in 2023[3]. - The group reported an unaudited loss of approximately RMB 6.5 million for the six months ended June 30, 2024, compared to an unaudited loss of RMB 1.3 million for the same period in 2023[3]. - Basic loss per share for the six months ended June 30, 2024, was RMB 0.7 cents, compared to RMB 0.1 cents for the same period in 2023[3]. - Gross profit for the six months ended June 30, 2024, was RMB 10.7 million, compared to RMB 10.0 million for the same period in 2023[6]. - The total revenue for the six months ended June 30, 2024, was RMB 39,709 thousand, up 16.5% from RMB 34,121 thousand in the same period of 2023[29]. - Sales of printed products reached RMB 13,910 thousand, an increase of 5.8% from RMB 13,145 thousand in 2023[29]. - Revenue from sales to garment manufacturers was RMB 24,495 thousand, up 21.1% from RMB 20,251 thousand in 2023[30]. - The company reported a loss attributable to owners of the company of RMB 6,485,000, compared to a loss of RMB 1,249,000 for the same period in 2023[43]. - The company reported an unaudited loss of approximately RMB 65 million for the current period, compared to a loss of approximately RMB 13 million for the six months ended June 30, 2023[65]. Expenses and Costs - Administrative expenses increased to RMB 15.0 million for the six months ended June 30, 2024, from RMB 9.4 million in the same period of 2023[6]. - Employee costs increased to RMB 10,320,000 for the six months ended June 30, 2024, up from RMB 6,947,000 in the same period of 2023, representing a 48% increase[37]. - The gross margin decreased by 2.2 percentage points from 29.3% to 27.1% due to a 20.3% increase in cost of sales[62]. - Administrative expenses increased significantly from approximately RMB 94 million to approximately RMB 150 million, primarily due to the expansion into functional textile products[64]. Assets and Liabilities - Total assets less current liabilities as of June 30, 2024, amounted to RMB 37.2 million, compared to RMB 28.7 million as of December 31, 2023[13]. - The company's equity totalled RMB 34.5 million as of June 30, 2024, up from RMB 28.4 million as of December 31, 2023[13]. - Inventory increased to RMB 2.6 million as of June 30, 2024, from RMB 2.2 million as of December 31, 2023[11]. - Trade receivables rose to RMB 20.3 million as of June 30, 2024, compared to RMB 12.8 million as of December 31, 2023[11]. - The total trade payables as of June 30, 2024, were RMB 8,534,000, compared to RMB 4,051,000 as of December 31, 2023, indicating a substantial increase in liabilities[48]. - Trade receivables amounted to RMB 21,769,000 as of June 30, 2024, up from RMB 14,083,000 as of December 31, 2023, reflecting a 54% increase[46]. Cash Flow - For the six months ended June 30, 2024, the net cash used in operating activities was RMB 16,424 thousand, compared to RMB 8,052 thousand for the same period in 2023, indicating a 104.5% increase in cash outflow[20]. - The net cash generated from financing activities was RMB 13,394 thousand for the six months ended June 30, 2024[20]. - The cash and cash equivalents at the end of the period were RMB 15,837 thousand, down from RMB 26,995 thousand at the end of June 2023, representing a decrease of 41.2%[20]. - The company reported a net cash decrease of RMB 3,714 thousand for the six months ended June 30, 2024, compared to a decrease of RMB 7,906 thousand in the same period of 2023[20]. Dividends - The board of directors decided not to declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[3]. - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[40]. - The company did not declare an interim dividend for the period, maintaining a focus on reinvestment[85]. Share Placements and Fundraising - The company raised a total of HKD 12.9 million through the placement of shares in January and May 2024[51]. - The company successfully placed 100,000,000 shares at a price of HKD 0.08 per share in January 2024, raising a total of HKD 8.0 million, with a net amount of approximately HKD 7.7 million after expenses[95]. - In May 2024, the company placed 70,000,000 shares at a price of HKD 0.07 per share, raising a total of HKD 4.9 million, with a net amount of approximately HKD 4.7 million after expenses[97]. - The net proceeds from the January 2024 placement are allocated for expanding the functional textile product manufacturing plant, with an expected expenditure of HKD 3.1 million by December 2024[95]. - The net proceeds from the May 2024 placement are planned for developing online sales channels for functional textile products, with an expected expenditure of HKD 3.0 million by December 2024[97]. Corporate Governance and Compliance - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM Listing Rules, with no known violations during the period[103]. - The company has adhered to the corporate governance code, maintaining high standards and focusing on a quality board composition and effective accountability systems[104]. - The audit committee, established on June 24, 2017, consists of three independent non-executive directors and has reviewed the interim report, ensuring compliance with applicable accounting standards[109]. Future Outlook and Risks - Future opportunities and challenges are expected to be influenced by the overall development of the Chinese apparel materials market and rising labor and material costs[86]. - The company faces significant risks including potential impacts from public health events, raw material price increases, and intense competition in the apparel materials industry[89]. - The company’s future plans will be aligned with the recovery pace of the garment industry[92].

Financial Performance - For the six months ended June 30, 2024, the group recorded unaudited revenue of approximately RMB 39.7 million, an increase of about 16.4% compared to RMB 34.1 million for the same period in 2023[2] - The unaudited loss for the six months ended June 30, 2024, was approximately RMB 6.5 million, compared to a loss of RMB 1.3 million for the same period in 2023[2] - Basic loss per share for the six months ended June 30, 2024, was RMB 0.7 cents, compared to RMB 0.1 cents for the same period in 2023[2] - Gross profit for the six months ended June 30, 2024, was RMB 10.7 million, compared to RMB 10.0 million for the same period in 2023[3] - The company reported a total of RMB (41,067,000) in comprehensive loss for the six months ended June 30, 2024, compared to a loss of RMB (14,197,000) for the same period in 2023, indicating a significant increase in losses[6] - The gross profit margin decreased by 2.2 percentage points from approximately 29.3% to 27.1% during the same period[33] Expenses and Liabilities - Selling and distribution expenses increased to RMB 2.5 million for the six months ended June 30, 2024, from RMB 1.9 million in the same period in 2023[3] - Administrative expenses rose significantly to RMB 15.0 million for the six months ended June 30, 2024, compared to RMB 9.4 million for the same period in 2023[3] - The net cash used in operating activities for the six months ended June 30, 2024, was RMB (16,424,000), compared to RMB (8,052,000) for the same period in 2023, indicating a decline in cash flow from operations[8] - Current liabilities increased to RMB 15.1 million as of June 30, 2024, compared to RMB 11.8 million as of June 30, 2023[4] - Total employee costs increased to RMB 13,751,000 in the first half of 2024, up from RMB 9,375,000 in the same period of 2023, reflecting a rise of approximately 46.5%[18] Assets and Equity - Total assets as of June 30, 2024, were RMB 49.9 million, an increase from RMB 40.5 million as of June 30, 2023[4] - The company's total equity increased to RMB 34,520,000 as of June 30, 2024, compared to RMB 28,372,000 as of June 30, 2023, reflecting a year-over-year increase of about 21.8%[6] - Trade receivables increased to RMB 20.3 million as of June 30, 2024, from RMB 12.8 million as of June 30, 2023[4] - As of June 30, 2024, the company's cash and cash equivalents decreased to RMB 15,837,000 as of June 30, 2024, down from RMB 26,995,000 as of June 30, 2023, showing a reduction of approximately 41.2%[8] Business Operations and Strategy - The company has expanded its business operations to include the production and trading of functional textile products in China, indicating a strategic move towards diversification[9] - The company plans to invest more resources in identifying potential customers in China and exploring opportunities with domestic and overseas apparel brands to increase sales and enhance profitability[32] - The company continues to explore new business opportunities to broaden its revenue sources, including through various channels for selling apparel-related products[32] - The company is focusing on online sales channels and development for functional textile products, with an investment of HKD 3.0 million planned[59] Corporate Governance and Compliance - The company has adopted a code of conduct for directors regarding securities trading, compliant with GEM listing rules[64] - The company has maintained the highest standards of corporate governance, adhering to all applicable rules during the reporting period[65] - The Audit Committee was established on June 24, 2017, consisting of three independent non-executive directors[69] - The main responsibilities of the Audit Committee include reviewing financial statements and providing recommendations on the appointment and removal of external auditors[69] Fundraising and Financial Management - The company raised RMB 11,819,000 through the issuance of new shares during the financing activities for the six months ended June 30, 2024[8] - The company raised a total of HKD 12.9 million through the placement of 170 million shares in January and May 2024[27] - The net proceeds from the listing amounted to approximately HKD 37.6 million (approximately RMB 32.7 million) after deducting listing-related expenses[52] - The company has stored all unutilized net proceeds in licensed banks in Hong Kong or China as of June 30, 2024[54] Risks and Challenges - The company faces significant risks including potential impacts from public health events, rising raw material costs, and intense competition in the apparel materials industry[51] - The company plans to continue cost control measures and expand its customer base and product variety in response to challenges in the Chinese apparel materials market[49]

Financial Performance - The company recorded revenue of approximately RMB 663 million for the year ending December 31, 2023, representing a decrease of about 1.5% compared to the previous year[9]. - Gross profit for the company was approximately RMB 177 million, a decline of about 10.2% year-over-year[9]. - The company experienced a net loss of approximately RMB 216 million for the year ended December 31, 2023, compared to a loss of RMB 68 million for the previous year[23]. - The gross margin declined from approximately 29.3% to about 26.7% due to an increase in direct manufacturing costs[17]. - Administrative expenses increased to approximately RMB 260 million for the year ended December 31, 2023, from RMB 233 million in the previous year, primarily due to hiring additional administrative staff[20]. - The company recorded a one-time impairment of non-financial assets amounting to RMB 99 million for the year ended December 31, 2023[21]. - Distribution and selling expenses slightly increased to approximately RMB 39 million for the year ended December 31, 2023, from RMB 38 million in the previous year[19]. - Other income and gains increased slightly to approximately RMB 9 million for the year ended December 31, 2023, from RMB 8 million in the previous year[18]. - As of December 31, 2023, the total assets of the group were approximately RMB 405 million, down from RMB 639 million in 2022[24]. - The group maintained sufficient working capital with cash and bank balances of approximately RMB 197 million as of December 31, 2023, compared to RMB 348 million in 2022[24]. - The employee cost for the year ended December 31, 2023, was approximately RMB 247 million, an increase from RMB 219 million in 2022[38]. Market Challenges - The company faced challenges in the Chinese apparel materials market due to intense price competition and rising operational costs[9]. - Trade protectionism and trade tensions between China and the United States have led to cost-cutting measures by clients[9]. - The economic growth slowdown in China has also impacted the company's performance[9]. Business Strategy and Expansion - The company plans to expand its operations in China to produce and sell functional textile products, utilizing mugwort as a primary fabric material[12]. - The company aims to diversify its business and increase revenue sources by exploring opportunities in other apparel and textile sectors[12]. - The company has identified new business opportunities in trading Chinese liquor and engaging in the catering industry[48]. Corporate Governance - The company has adhered to all applicable corporate governance code provisions as of December 31, 2023, except for a temporary deviation regarding the roles of the Chairman and CEO[66]. - The board consists of seven directors, including four executive directors and three independent non-executive directors, ensuring a strong independent element for independent judgment[69]. - The company has implemented a board diversity policy, recognizing the benefits of diverse perspectives and experiences among board members to maintain competitive advantage[72]. - The board aims to gradually increase the proportion of female directors and ensure a balanced gender composition in line with stakeholder expectations and best practices[73]. - The company has established procedures to build a diverse and skilled senior management pool to prepare for board positions[75]. - The board is responsible for reviewing and monitoring compliance with legal and regulatory requirements, as well as the company's governance policies and practices[68]. Risk Management - The company emphasizes the importance of effective risk management for long-term business development, with management responsible for implementing and evaluating the risk management framework[127]. - The company has adopted a three-tier risk management approach to identify, assess, mitigate, and handle risks[129]. - The group faces risks including potential impacts from COVID-19, raw material price increases, and labor shortages[40]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes its commitment to environmental, social, and governance (ESG) responsibilities, aligning its operations with sustainable practices[151]. - As of December 31, 2023, the company has achieved FSC certification for its mixed paper and recycled paper products, ensuring compliance with production and sales regulatory requirements[158]. - The company aims to reduce greenhouse gas emissions primarily from purchased electricity, promoting energy-saving culture and monitoring electricity usage through monthly bills[159]. - The board of directors reviews and prioritizes significant ESG-related risks annually, integrating these considerations into the company's corporate culture and daily operations[155]. - The company has obtained Oeko-Tex Standard 100 certification for its textiles, confirming compliance with human ecological standards[158]. Employee Relations and Training - The company has maintained good relationships with employees, customers, and suppliers, with no significant complaints reported as of December 31, 2023[46]. - The company has not experienced any major disputes with employees or salary payment issues, ensuring all accrued salaries were settled on time[46]. - Average training hours per employee remained consistent at 2.5 hours for both 2022 and 2023[177]. - The percentage of trained female employees increased from 73.5% in 2022 to 79.2% in 2023, while male employees rose from 74.8% to 79.0%[177]. Community Engagement - The group donated RMB 139,000 and RMB 225,000 to charitable organizations in 2023 and 2022, respectively, reflecting a commitment to community investment[187]. - The group encourages employee participation in community investment and charitable donations[187]. - The group is committed to reviewing community investment goals and directions annually[189]. Compliance and Legal Matters - The group has established a whistleblowing mechanism applicable to all employees, ensuring confidentiality and thorough investigation of reports[185]. - There were no legal cases related to corruption against the group or its employees in 2023 and 2022, indicating compliance with anti-corruption laws[183]. - The group emphasizes the importance of professional training for directors and senior management on corporate governance and anti-corruption[183].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of RMB 66,323,000, a decrease of 1.38% compared to RMB 67,251,000 for the previous year[6] - The cost of sales for the fiscal year was RMB 48,582,000, which represents an increase of 2.27% from RMB 47,502,000 in the prior year[6] - Gross profit for the year was RMB 17,741,000, down 10.15% from RMB 19,749,000 year-over-year[6] - The company incurred a net loss of RMB 21,634,000 for the fiscal year, compared to a net loss of RMB 6,750,000 in the previous year, indicating a significant increase in losses[6] - Basic loss per share for the year was RMB 5.00, compared to RMB 2.55 in the previous year, reflecting a worsening financial position[6] - The total comprehensive loss for the year ended December 31, 2023, was RMB 24,715,000, compared to RMB 21,856,000 for the previous year[19] - The basic loss per share for the year ended December 31, 2023, was calculated based on 850,000,000 shares outstanding, with no diluted loss per share reported[22] Revenue Breakdown - Revenue from the sale of printed products was 25,887,000 RMB in 2023, up from 25,319,000 RMB in 2022, indicating an increase of about 2.2%[12] - Revenue from textile products reached 11,321,000 RMB in 2023, compared to 10,739,000 RMB in 2022, reflecting a growth of approximately 5.4%[12] - The revenue from the sale of printed labels was 17,207,000 RMB in 2023, an increase from 15,763,000 RMB in 2022, marking a growth of approximately 9.1%[12] - Other revenue sources accounted for 12,836,000 RMB in 2023, down from 14,502,000 RMB in 2022, indicating a decline of about 11.5%[12] Expenses and Liabilities - Administrative expenses rose to RMB 26,041,000, up from RMB 23,281,000, indicating increased operational costs[6] - The company recognized a non-cash impairment loss of RMB 9,937,000 during the year, which was not present in the previous year[6] - Trade receivables impairment losses increased to RMB 127,000 from RMB 41,000, reflecting a deterioration in receivables management[6] - The total liabilities decreased from RMB 28,372 million in 2022 to RMB 28,372 million in 2023, indicating no change year-over-year[7] Assets and Equity - The total assets decreased from RMB 50,195 million in 2022 to RMB 28,674 million in 2023, representing a decline of approximately 42.7%[7] - The net value of current assets decreased from RMB 39,999 million in 2022 to RMB 28,674 million in 2023, a reduction of about 28.4%[7] - The company's total equity decreased from RMB 50,140 million in 2022 to RMB 28,372 million in 2023, a decline of approximately 43.3%[7] - The company's cash and cash equivalents decreased from RMB 34,812 million in 2022 to RMB 19,725 million in 2023, a decline of approximately 43.4%[7] Taxation - The group did not generate any taxable profits in Hong Kong for the year ended December 31, 2023, and thus made no provisions for Hong Kong profits tax[16] - The group is required to pay a corporate income tax rate of 25% in China for the year ended December 31, 2023, consistent with the previous year[16] - The group's tax expense for the year ended December 31, 2023, was calculated based on a pre-tax loss of RMB 21,401,000, resulting in a tax provision of RMB 5,349,000[18] Corporate Strategy and Future Plans - The company is focused on improving its financial performance and exploring new strategies for market expansion and product development[5] - The group is focused on expanding its operations in functional textile products to diversify its business and increase revenue streams[29] - The company aims to optimize its capital structure through dividend payments, issuance of new shares, or debt redemption[28] - The group plans to invest more resources in marketing within China to attract potential customers and expand its customer base[34] - The group aims to explore new business opportunities to broaden its revenue sources, including expanding into functional textile products[34] Governance and Compliance - The company is committed to maintaining good corporate governance standards to protect shareholder interests and create value[77] - The company has fully complied with the GEM listing rules regarding the trading standards for directors as of December 31, 2023[78] - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2023, and confirmed compliance with applicable accounting standards and GEM listing rules[79] Employee and Operational Insights - The employee cost for the year ended December 31, 2023, was approximately RMB 24.7 million, an increase from RMB 21.9 million in 2022[56] - The group employed a total of 232 employees as of December 31, 2023, compared to 216 employees in 2022[56] - The company has maintained a public float of at least 25% throughout the year, ensuring compliance with listing requirements[28] Environmental Responsibility - The group is committed to environmental responsibility and aims to minimize its operational impact on the environment through the adoption of green technologies[62] - The group is subject to various environmental regulations in China, including pollution prevention and waste management[62] Shareholder Communication - The annual general meeting is scheduled for May 10, 2024, providing a platform for shareholders to communicate directly with the board[85] - The company will suspend share registration procedures from May 7, 2024, to May 10, 2024, to determine eligibility for voting at the annual general meeting[87] - The annual performance announcement will be published on the company's website and the Hong Kong Stock Exchange website, with the annual report expected to be released by April 2024[90]

Financial Performance - For the nine months ended September 30, 2023, the group recorded unaudited revenue of approximately RMB 498.48 million, a decrease of about 5.7% compared to RMB 527.51 million for the same period in 2022[6]. - The group reported an unaudited loss of approximately RMB 47 million for the nine months ended September 30, 2023, compared to an unaudited loss of RMB 46 million for the same period in 2022[6]. - Basic loss per share for the nine months ended September 30, 2023, was RMB 0.55, slightly higher than RMB 0.54 for the same period in 2022[6]. - Gross profit for the nine months ended September 30, 2023, was RMB 146.21 million, down from RMB 152.77 million in the same period of 2022[7]. - The total comprehensive loss for the nine months ended September 30, 2023, was RMB 46.57 million, compared to RMB 45.90 million for the same period in 2022[7]. - The company's total equity as of September 30, 2023, was RMB 45.35 million, down from RMB 52.30 million as of September 30, 2022[9]. - The group recorded an unaudited loss of approximately RMB 47 million for the nine months ended September 30, 2023, compared to an unaudited loss of approximately RMB 46 million for the same period in 2022[30]. - The group's gross profit decreased from approximately RMB 153 million for the nine months ended September 30, 2022, to approximately RMB 146 million for the same period in 2023, representing a decline of about 4.6%[26]. Dividend and Shareholder Information - The board of directors resolved not to declare an interim dividend for the nine months ended September 30, 2023, consistent with the previous year[6]. - The company did not declare an interim dividend for the nine months ended September 30, 2023, consistent with the previous year[20]. - The major shareholder Neo Concept holds 233.4 million shares, representing 27.46% of the company's equity[42]. - Director Sha Xunyi holds 132.4 million shares, accounting for 15.58% of the company's equity[39]. - No shares were purchased, sold, or redeemed by the company or its subsidiaries in the nine months ending September 30, 2023[43]. Administrative and Operational Insights - Administrative expenses increased to RMB 168.22 million for the nine months ended September 30, 2023, compared to RMB 176.34 million for the same period in 2022[7]. - Administrative expenses decreased from approximately RMB 176 million for the nine months ended September 30, 2022, to approximately RMB 168 million for the same period in 2023[28]. - The company has not announced any new product or technology developments during this reporting period[10]. - There are no updates on market expansion or mergers and acquisitions mentioned in the report[10]. - The company continues to serve a large number of garment brand companies and manufacturers in China[23]. - The company plans to explore opportunities in other garment and textile businesses to diversify its operations and revenue sources post-pandemic[23]. Financial Compliance and Governance - The group has adopted all relevant new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, with no significant changes to accounting policies[13]. - The company has fully complied with the GEM Listing Rules regarding the conduct of securities transactions by directors[44]. - The company has adhered to the corporate governance code throughout the nine months ending September 30, 2023[45]. - No significant contracts were identified where directors had a substantial interest during the nine months ending September 30, 2023[46]. - There were no competitive interests reported by major shareholders or directors that could conflict with the company's business[47]. - The Audit Committee was established on June 24, 2017, and consists of three independent non-executive directors[50]. - The Audit Committee's main responsibilities include reviewing financial statements and providing opinions on financial reporting[50]. - The unaudited financial information for the nine months ending September 30, 2023, has been reviewed by the Audit Committee[50]. - The financial statements are deemed to comply with applicable accounting standards and GEM listing rules[50]. Future Plans and Investments - The group plans to enhance its production facilities and digital printing technology, with an allocation of approximately HKD 7.9 million[35]. - The group aims to develop its capabilities in RFID technology application, with an expected utilization of approximately HKD 3.0 million, of which HKD 0.7 million has been used[35]. - As of September 30, 2023, the company utilized HKD 0.3 million for operational funding related to the IT sector expansion[38]. - The company plans to invest HKD 5.11 million in IT-related companies or projects by December 2023[38]. Events and Updates - No significant events occurred after September 30, 2023, up to the report date[49]. - The report was issued by the Chairman and Executive Director, Lin Qiyuan, on November 6, 2023[50].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不會 對本公告的全部或任何部分內容所產生或因依賴該等內容而引致的任何 損失承擔任何責任。 Reach New Holdings Limited 新 達 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8471） 截 至 二 零 二 三 年 九 月 三 十 日 止 九 個 月 之 第 三 季 度 業 績 公 告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM乃 為 較 於 聯 交 所 上 市 之 其 他 公 司 帶 有 更 高 投 資 風 險 之 中 小 型 公 司 提 供 上 市 之 市 場。有 意 投 資 者 應 了 解 投 資 於 該 等 公 司 之 潛 在 風 險，並 應 經過審慎周詳考慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣之證券可能會承受較 於聯交所主板買賣之證券為高之市場波動風險，同時亦無法保證在GEM 買賣的證券會有高流通量的市場。 本公告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）的規定而提供 ...

Financial Performance - For the six months ended June 30, 2023, the group recorded unaudited revenue of approximately RMB 34.1 million, a decrease of about 7.3% compared to RMB 36.8 million for the same period in 2022[4]. - The unaudited loss for the six months ended June 30, 2023, was approximately RMB 1.3 million, an improvement from a loss of RMB 3.4 million for the same period in 2022[4]. - Basic loss per share for the six months ended June 30, 2023, was RMB 0.1 cents, compared to RMB 0.4 cents for the same period in 2022[4]. - The group reported a gross profit of RMB 10.0 million for the six months ended June 30, 2023, down from RMB 10.5 million for the same period in 2022[5]. - Gross profit for the six months ended June 30, 2023, was approximately RMB 10.0 million, a decrease of about 4.8% from RMB 10.5 million for the same period in 2022, resulting in a gross margin increase of 0.8 percentage points to 29.3%[46]. - The company reported a loss attributable to owners of the company of RMB (1,249,000) for the six months ended June 30, 2023, compared to a loss of RMB (3,420,000) for the same period in 2022, indicating an improvement of approximately 63.5%[29]. - Administrative expenses decreased from approximately RMB 12.4 million for the six months ended June 30, 2022, to RMB 9.4 million for the same period in 2023, a reduction of about RMB 3.0 million[48]. Assets and Liabilities - As of June 30, 2023, total non-current assets amounted to RMB 8.9 million, down from RMB 10.2 million as of December 31, 2022[6]. - Current assets as of June 30, 2023, totaled RMB 50.1 million, a decrease from RMB 53.7 million as of December 31, 2022[6]. - The net asset value as of June 30, 2023, was RMB 48.9 million, compared to RMB 50.1 million as of December 31, 2022[8]. - Total liabilities decreased to RMB 10.1 million as of June 30, 2023, from RMB 13.7 million as of December 31, 2022[6]. - The group’s cash and cash equivalents were RMB 27.0 million as of June 30, 2023, down from RMB 34.8 million as of December 31, 2022[6]. - The company’s trade payables totaled RMB 4,233,000 as of June 30, 2023, down from RMB 6,538,000 as of December 31, 2022, indicating a reduction of 35.3%[36]. - The company’s provision for trade receivables impairment was RMB 1,263,000 as of June 30, 2023, compared to RMB 1,158,000 as of December 31, 2022, showing an increase of 9.1%[32]. Cash Flow - The net cash used in operating activities for the six months ended June 30, 2023, was RMB (8,052) thousand, compared to RMB (1,973) thousand for the same period in 2022, indicating a significant increase in cash outflow[12]. - The net cash generated from investing activities was RMB 146 thousand, a significant decline from RMB 3,887 thousand in the same period of 2022[12]. - The cash and cash equivalents at the end of the period were RMB 26,995 thousand, down from RMB 29,936 thousand at the end of June 2022[12]. Dividends - The board of directors decided not to declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[4]. - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[28]. - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[65]. Employee Costs - The company incurred a total employee cost of RMB 9,375,000 for the six months ended June 30, 2023, down from RMB 11,686,000 in the same period of 2022, reflecting a decrease of 19.9%[27]. - The total employee benefits expenses for the six months ended June 30, 2023, amounted to approximately RMB 9.4 million, down from RMB 11.7 million for the same period in 2022[61]. Business Strategy and Market Outlook - The company is focused on restructuring its investment holding entities and operational subsidiaries as part of its ongoing business strategy[11]. - The group plans to invest more resources in identifying potential clients in China and exploring opportunities with both domestic and overseas apparel brands to increase sales and profitability[44]. - The company anticipates stable growth in the apparel accessories market despite challenges such as intense price competition and rising labor and material costs[66]. - The company is considering diversifying its business into other apparel and textile sectors, particularly focusing on health and lifestyle products[66]. - The company has identified several key risks, including reliance on customer demand and potential labor shortages, which could significantly impact revenue[68]. Corporate Governance - The company has adopted a code of conduct for directors' securities trading, compliant with GEM listing rules[82]. - The company has maintained compliance with all applicable corporate governance code provisions during the reporting period[83]. - The audit committee was established on June 24, 2017, to oversee financial reporting and risk management[88]. - The audit committee now consists of three members, all of whom are independent non-executive directors[90]. - The interim report has been reviewed by the audit committee and complies with applicable accounting standards and GEM listing rules[90]. Use of Proceeds - The net proceeds from the listing amounted to approximately HKD 37.6 million (equivalent to approximately RMB 32.7 million) after deducting listing-related expenses[69]. - As of June 30, 2023, the company has utilized HKD 26.5 million of the net proceeds, leaving a balance of HKD 11.1 million for future use[70]. - The company plans to enhance its production facilities and digital printing technology, with HKD 7.9 million allocated for this purpose[70]. - The company aims to develop its capabilities in applying RFID technology, with HKD 3.0 million earmarked, of which HKD 0.7 million has been utilized[70]. - The company is focusing on expanding its sales and marketing department, with HKD 3.0 million allocated, of which HKD 2.4 million has been utilized[70]. - The company has postponed the application of net proceeds for developing RFID technology and upgrading IT systems due to the impact of the pandemic on the apparel industry[71]. - As of June 30, 2023, the company utilized HKD 0.3 million for operational funding related to the IT industry expansion[74]. - The company has allocated HKD 5.11 million for investment in IT companies or projects, with the expected timeline for use by December 2023[74]. Shareholding Structure - Mr. Lin holds 433,400,000 shares, representing 50.99% of the company's equity[75]. - Neo Concept, a company fully owned by Mr. Lin, also holds 433,400,000 shares, accounting for 50.99% of the company's equity[79]. Other Information - No purchases, sales, or redemptions of the company's listed securities occurred during the six-month period ending June 30, 2023[81]. - No significant post-reporting events occurred after June 30, 2023[87].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不會 對本公告的全部或任何部分內容所產生或因依賴該等內容而引致的任何 損失承擔任何責任。 Reach New Holdings Limited 新 達 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8471） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM乃 為 較 於 聯 交 所 上 市 之 其 他 公 司 帶 有 更 高 投 資 風 險 之 中 小 型 公 司 提 供 上 市 之 市 場。有 意 投 資 者 應 了 解 投 資 於 該 等 公 司 之 潛 在 風 險，並 應 經過審慎周詳考慮後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣之證券可能會承受較 於聯交所主板買賣之證券為高之市場波動風險，同時亦無法保證在GEM 買賣的證券會有高流通量的市場。 本公告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）的規定而提供 ...