Financial Performance - For the three months ended March 31, 2021, the group recorded unaudited revenue of approximately RMB 16.3 million, an increase of about 68.0% compared to RMB 9.7 million for the same period in 2020[4] - The group reported an unaudited loss of approximately RMB 0.2 million for the three months ended March 31, 2021, a significant improvement from an unaudited loss of RMB 2.3 million for the same period in 2020[4] - Basic loss per share for the three months ended March 31, 2021, was RMB 0.02, compared to RMB 0.28 for the same period in 2020[4] - Gross profit for the three months ended March 31, 2021, was RMB 5.65 million, compared to RMB 2.59 million for the same period in 2020[8] - The total comprehensive loss for the period attributable to owners of the company was RMB 0.19 million for the three months ended March 31, 2021, compared to RMB 2.28 million for the same period in 2020[8] - Revenue from clothing manufacturers contributed RMB 11,209,000, up from RMB 8,366,000 in the previous year, representing a growth of 33.5%[20] - Revenue from printed products and woven labels increased by approximately 82.7% and 292.5% respectively, primarily due to higher sales volumes[49] - The group's cost of sales increased by approximately 50.6% or about RMB 3.6 million compared to the same period in 2020[51] - The gross profit margin improved from approximately 26.7% for the three months ended March 31, 2020, to approximately 34.6% for the same period in 2021[51] Expenses and Dividends - The group incurred distribution and selling expenses of RMB 0.78 million for the three months ended March 31, 2021[8] - Administrative expenses for the three months ended March 31, 2021, were RMB 4.72 million, slightly lower than RMB 4.98 million for the same period in 2020[8] - The board of directors decided not to declare an interim dividend for the three months ended March 31, 2021, consistent with the decision for the same period in 2020[4] - Other income and gains decreased to approximately RMB 0.1 million from RMB 1.1 million in the previous year, mainly due to the absence of government unemployment subsidies[52] - Administrative expenses decreased from approximately RMB 5.0 million to RMB 4.7 million, reflecting cost control measures[54] Equity and Assets - The group's total equity as of March 31, 2021, was RMB 57.97 million, a decrease from RMB 66.61 million as of January 1, 2020[10] - The company operates primarily in China, with most of its non-current assets and capital expenditures located in or used for China[39] Business Operations and Strategy - The group is primarily engaged in providing label solutions and manufacturing and supplying garment accessories in China[16] - The company continues to serve a large number of clothing brand companies and designated procurement companies in China[48] - The group plans to utilize approximately RMB 8.0 million of unutilized net proceeds to expand into the domestic garment trading business, aiming to diversify revenue sources[63] - The group has identified potential customers in China and is seeking to expand sales and improve profitability through new business opportunities[49] Governance and Compliance - The company has adopted a code of conduct for directors' securities trading, complying with GEM Listing Rules sections 5.48 to 5.67, with no known violations reported as of March 31, 2021[89] - The company has adhered to the corporate governance code and principles since its listing on July 21, 2017, ensuring high standards of governance and shareholder protection[90] - The audit committee, established on June 24, 2017, consists of three independent non-executive directors and has reviewed the unaudited consolidated financial statements for the three months ending March 31, 2021, confirming compliance with applicable accounting standards[94] - The company has maintained compliance with the corporate governance code in all material aspects as of March 31, 2021[90] - There are no known competitive interests held by the company's controlling shareholders or their close associates that could conflict with the group's business as of March 31, 2021[93] Shareholder Information - The major shareholder, Mr. Lin, holds 600 million shares, representing 70.6% of the company[78] - Neo Concept, a controlled entity of Mr. Lin, also holds 600 million shares, equating to 70.6% of the company[83] Future Plans and Investments - The planned use of proceeds includes enhancing production facilities and digital printing technology with an allocation of HKD 7.9 million, of which HKD 2.5 million has been utilized[67] - The company aims to strengthen its capabilities in RFID technology application with a budget of HKD 3.0 million, with HKD 0.5 million already spent[67] - A total of HKD 33 million is allocated for general working capital, with HKD 3.3 million already utilized[67] - The company plans to develop its internet and information technology business with an allocation of HKD 3.0 million, fully utilized as of March 31, 2021[67] - The company has a total of HKD 37.6 million planned for various initiatives, with HKD 18.6 million already utilized and HKD 19.0 million remaining[67] - The company has plans to expand its sales and marketing department with an allocation of HKD 3.0 million, of which HKD 1.5 million has been utilized[67] Impact of External Factors - The impact of COVID-19 continues to create uncertainty in the global macroeconomic environment, which may affect the group's financial performance[57]

Financial Performance - The company recorded revenue of approximately RMB 606 million for the year 2020, a decrease of about 20.4% compared to the previous year[8]. - Gross profit for the year 2020 was approximately RMB 138 million, representing a decline of about 36.4% year-on-year[8]. - The group's revenue for the year ended December 31, 2020, was approximately RMB 60.6 million, a decrease of about 20.4% compared to RMB 76.1 million for the year ended December 31, 2019[16]. - The group's gross profit decreased from approximately RMB 21.7 million in 2019 to about RMB 13.8 million in 2020, representing a decline of approximately 36.4%[23]. - The gross margin fell from approximately 28.5% in 2019 to about 22.7% in 2020 due to a 20.4% decrease in revenue and a 14.1% decrease in cost of sales[24]. - The group recorded a loss attributable to owners of approximately RMB 14.1 million for the year ended December 31, 2020, compared to a loss of RMB 5.1 million for the year ended December 31, 2019[31]. - Other income for the year ended December 31, 2020, was approximately RMB 2.5 million, primarily from government subsidies of RMB 1.2 million and gains from the sale of a subsidiary of RMB 1.5 million[25]. - The total assets of the group as of December 31, 2020, were approximately RMB 73.6 million, a slight decrease from RMB 74.4 million in 2019[32]. - The group maintained sufficient working capital with bank balances and cash of approximately RMB 31.4 million as of December 31, 2020, down from RMB 41.4 million in 2019[32]. - The company reported a total employee cost of approximately RMB 25.1 million for the year ended December 31, 2020, a slight decrease from RMB 25.6 million in 2019[55]. - The company did not declare any dividends for the year ended December 31, 2020, consistent with the previous year[45]. Strategic Plans and Market Conditions - The company plans to continue implementing cost control measures and expanding its customer base and product portfolio to mitigate market challenges[9]. - Future market conditions for the apparel accessories sector are expected to remain challenging, but the company aims to capture market opportunities for sustainable business growth[9]. - The company will maintain its focus on integrated label solutions, production management, and customer service growth to strengthen its competitive position and market share[9]. - The group plans to invest more resources in marketing within China to attract potential customers and expand its customer base to both domestic and foreign apparel brands[22]. - The group aims to continue exploring new business opportunities to broaden its revenue sources, including selling apparel products through various channels[22]. - The company has faced challenges due to the COVID-19 pandemic and US-China trade tensions, impacting the garment industry and demand for heat transfer products[71]. - The company plans to continue monitoring the impact of the COVID-19 pandemic on its financial performance and operations[71]. Capital and Investments - The company completed a placement of 50 million new shares at a price of HKD 0.113 per share, raising a total of approximately HKD 5.65 million[40]. - As of December 31, 2020, the company had no significant capital commitments or contingent liabilities[46][54]. - The net proceeds from the IPO amount to approximately HKD 37.6 million (equivalent to about RMB 32.7 million) after deducting related expenses[72]. - As of December 31, 2020, the company has utilized HKD 18.3 million of the net proceeds, leaving a remaining balance of HKD 19.3 million[77]. - The company plans to allocate HKD 8.0 million of the remaining proceeds to develop its garment trading business, which is expected to diversify revenue sources[73]. - The company has allocated HKD 5.3 million for upgrading its information technology systems, with HKD 2.7 million already utilized as of December 31, 2020[77]. - The company has committed HKD 3.0 million to strengthen its capabilities in applying RFID technology to its products, with HKD 0.5 million already spent[77]. - The company aims to enhance its production facilities and digital printing technology with an allocation of HKD 7.9 million, of which HKD 2.5 million has been utilized[77]. Corporate Governance - The management team emphasized the importance of maintaining strong corporate governance practices to ensure long-term success and shareholder value[124]. - The board of directors is committed to monitoring management performance and aligning it with the company's strategic goals[127]. - The board consists of six members, including one non-executive director, two executive directors, and three independent non-executive directors[132]. - All three independent non-executive directors confirmed their independence, ensuring compliance with GEM listing rules[133]. - The company has adopted a board diversity policy to enhance governance and maintain competitive advantage[137]. - The board aims to increase the proportion of female directors and ensure a balanced gender composition[138]. - Four board meetings were held during the year, with all directors attending 100% of the meetings[143]. - The company has established a code of conduct for directors' securities trading, confirming full compliance for the year ended December 31, 2020[144]. - Continuous professional development for directors is emphasized to maintain effective internal controls and governance[149]. - The company maintains training records for all directors and provides ongoing updates and professional development as needed[151]. Audit and Remuneration Committees - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2020, ensuring compliance with accounting standards and GEM listing rules[158]. - The audit committee held four meetings during the year, with all members attending all sessions[165]. - The remuneration committee conducted one meeting during the year to review and recommend compensation for individual executive directors and senior management[170]. - The audit committee's responsibilities include monitoring the independence of external auditors and reviewing the effectiveness of the internal control system[158]. - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, to assist the board in fulfilling its duties[154]. - The audit committee consists of three independent non-executive directors, ensuring a majority of independent members[154]. - The remuneration committee is responsible for reviewing the company's remuneration policies and ensuring transparency in compensation procedures[170]. - The audit committee discussed the effectiveness of the internal control system, including financial, operational, and compliance monitoring[165]. - The company has provided sufficient resources and support to all committees to fulfill their responsibilities[153]. - The audit committee has reported that it has properly performed its duties and responsibilities during the year[160]. - The remuneration for directors is determined based on their respective service contracts or appointment letters, as recommended by the remuneration committee[171]. - The nomination committee held one meeting this year to review the board's structure, number, and composition, and to assess the independence of non-executive directors[176]. Audit Fees and Training - For the year ended December 31, 2020, the statutory audit service fees paid to external auditors amounted to HKD 738,000, an increase from HKD 700,000 in 2019[196]. - The company secretary completed no less than 15 hours of relevant professional training during the year ended December 31, 2020[197].

Financial Performance - For the nine months ended September 30, 2020, the group recorded unaudited revenue of approximately RMB 425 million, a decrease of about 27.2% compared to RMB 584 million for the same period in 2019[4]. - The unaudited loss for the nine months ended September 30, 2020, was approximately RMB 94 million, compared to an unaudited loss of RMB 18 million for the same period in 2019[4]. - Basic loss per share for the nine months ended September 30, 2020, was RMB 1.07, compared to RMB 0.23 for the same period in 2019[4]. - For the three months ended September 30, 2020, the group reported revenue of RMB 17.18 million, a slight decrease from RMB 18.31 million for the same period in 2019[6]. - Gross profit for the nine months ended September 30, 2020, was RMB 82.1 million, down from RMB 182.79 million for the same period in 2019[6]. - The group incurred a pre-tax loss of RMB 94.22 million for the nine months ended September 30, 2020, compared to a pre-tax loss of RMB 18.18 million for the same period in 2019[6]. - The group reported total comprehensive loss of RMB 94.22 million for the nine months ended September 30, 2020, compared to RMB 18.18 million for the same period in 2019[6]. - The company's revenue for the nine months ended September 30, 2020, was approximately RMB 42.5 million, down from approximately RMB 58.4 million in the same period of 2019, representing a decline of about 27.1%[51]. - The decline in revenue was primarily due to the COVID-19 pandemic disrupting economic and production activities in China, as well as trade protectionism and ongoing trade disputes between China and the United States[51]. - The company reported a loss attributable to owners of the company of RMB (8,910) thousand for the nine months ended September 30, 2020, compared to a loss of RMB (1,818) thousand in the same period of 2019[41]. Dividend and Shareholder Information - The board of directors resolved not to declare an interim dividend for the nine months ended September 30, 2020, consistent with the previous year[4]. - The company did not declare an interim dividend for the nine months ended September 30, 2020, compared to no dividend declared in the same period of 2019[40]. - The weighted average number of shares for calculating basic loss per share was 831,780,822 for the nine months ended September 30, 2020, compared to 800,000,000 in 2019[41]. - The company has a significant shareholder, Neo Concept, holding 600 million shares, representing 70.6% of the company's equity[85]. - The placement shares represented 6.25% of the company's issued share capital prior to the placement and approximately 5.88% after the placement[80]. Operational Changes and Business Development - The company has established a new subsidiary, Guangzhou Bancheng Cloud, to enter the information technology sector, with a capital restructuring agreement signed on September 22, 2020[14]. - The company completed a capital restructuring and investment agreement on September 27, 2020, involving Guangzhou Banchengyun, which is no longer a subsidiary of the company[44]. - Following the investment agreement, Guangzhou Banchengyun became an associate company of the group, and its financial results will no longer be consolidated[44]. - The registered capital of Guangzhou Banchengyun will increase to approximately RMB 2.83 million after the capital restructuring[42]. - The company is exploring new business opportunities to broaden its revenue sources, including selling apparel products through various channels[63]. - The company plans to expand its market presence through strategic partnerships and investments in technology development[14]. - The company plans to allocate more resources to attract potential customers in China and expand its customer base to both domestic and foreign apparel brands to increase sales and profitability[63]. Expenses and Cost Management - Administrative expenses for the nine months ended September 30, 2020, were RMB 169.4 million, compared to RMB 160.92 million for the same period in 2019[6]. - The company's administrative expenses and financing costs for the nine months ended September 30, 2020, were RMB 16,940,000, compared to RMB 16,092,000 for the same period in 2019[28]. - Distribution and selling expenses decreased from approximately RMB 3.7 million for the nine months ended September 30, 2019, to about RMB 3.1 million for the same period in 2020, despite a decline in revenue[57]. - Administrative expenses increased from approximately RMB 16.1 million to about RMB 16.9 million, primarily due to administrative costs associated with the information technology business[58]. 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 reported as of September 30, 2020[96]. - The company has adhered to the corporate governance code and has maintained high standards in governance practices, ensuring shareholder interests are protected and business growth is accelerated[96]. - No directors have significant interests in any contracts of major significance to the group during the nine months ending September 30, 2020[97]. - There are no known competitive interests held by controlling shareholders or directors that could conflict with the company's business as of September 30, 2020[98]. - The audit committee, established on June 24, 2017, consists of three independent non-executive directors and has reviewed the unaudited financial statements for the nine months ending September 30, 2020[101]. - The financial information in the report has not been audited but has been reviewed by the audit committee, ensuring compliance with applicable accounting standards and GEM Listing Rules[101]. Future Investments and Funding - The company has allocated HKD 79 million for enhancing production facilities and digital printing technology, with an expected completion date in December 2021[75]. - The company is investing HKD 53 million to upgrade its information technology systems, expected to be completed by December 2022[75]. - The company is focusing on the development of RFID technology applications, with an investment of HKD 3 million planned for December 2021[75]. - The company has plans to expand its sales and marketing department with an investment of HKD 3 million, expected to be completed by December 2021[75]. - As of September 30, 2020, the net proceeds from the placement amounted to approximately HKD 5.41 million, which will be used for the operational funding of the subsidiary Guangzhou Bancheng Cloud[80]. - The total amount raised from the placement was HKD 5.65 million, with a net amount of HKD 5.41 million after deducting expenses[80]. - The company plans to utilize the net proceeds for business expansion in the information technology sector, specifically for Guangzhou Bancheng Cloud's operational funding by December 2021[81].

Reach New Holdings Limited 新達控股有限公司 Stock Code: 8471 (Incorporated in the Cayman Islands with limited liability) Interim Report 2020 Reach New Holdings Limited 新達控股有限公司 股份代號: 8471 (於開曼群島註冊成立的有限公司) 中期報告 2020 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報告的內容概不負責 · 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報告的全部或任 何部分內容所產生或因依頼該等內容而引致的任何損失承擔任何責任。 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處後 方作出投資決定。 由於GEM上市公司一般為中小型公司,在GEM貫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勳風險,同時亦無法保證在GEM買賣的證券會有 高流通量的市場。 本极告乃遵照 ...

Financial Performance - For the three months ended March 31, 2020, the group recorded unaudited revenue of approximately RMB 9.7 million, a decrease of about 50.3% compared to RMB 19.5 million for the same period in 2019[4] - The unaudited loss for the three months ended March 31, 2020, was approximately RMB 2.3 million, compared to an unaudited loss of RMB 2.0 million for the same period in 2019[4] - Basic loss per share for the three months ended March 31, 2020, was RMB 0.28, compared to RMB 0.25 for the same period in 2019[4] - Gross profit for the three months ended March 31, 2020, was RMB 2.586 million, down from RMB 5.643 million in the same period of 2019[6] - The company's gross profit margin decreased from approximately 29.0% for the three months ended March 31, 2019, to approximately 26.7% for the same period in 2020[41] - The company recorded an unaudited loss of approximately RMB 22 million for the three months ended March 31, 2020, compared to an unaudited loss of RMB 2.0 million for the same period in 2019[45] Dividend and Equity - The board of directors decided not to declare an interim dividend for the three months ended March 31, 2020, consistent with the decision for the same period in 2019[4] - The total equity attributable to the owners of the company as of March 31, 2020, was RMB 64.339 million, down from RMB 71.759 million as of January 1, 2019[9] - The company did not declare an interim dividend for the three months ended March 31, 2020, compared to no dividend declared in the same period of 2019[28] Expenses - Distribution and selling expenses for the three months ended March 31, 2020, were RMB 0.854 million, compared to RMB 1.133 million for the same period in 2019[6] - Administrative expenses for the three months ended March 31, 2020, were RMB 4.975 million, down from RMB 6.608 million in the same period of 2019[6] - The company's selling expenses decreased from approximately RMB 1.1 million for the three months ended March 31, 2019, to approximately RMB 0.9 million for the same period in 2020[43] - The company's administrative expenses decreased from approximately RMB 6.6 million for the three months ended March 31, 2019, to approximately RMB 5.0 million for the same period in 2020, due to cost-cutting measures[44] Revenue Breakdown - Revenue for the three months ended March 31, 2020, was RMB 9,677,000, a decrease of 50.3% compared to RMB 19,467,000 for the same period in 2019[17] - The revenue breakdown by product type included sales of printed materials at RMB 3,467,000, down from RMB 8,191,000 in 2019, representing a decline of 57.6%[17] - The company’s revenue from clothing manufacturers was RMB 8,366,000, down from RMB 15,947,000 in the previous year, indicating a decline of 47.5%[18] - Major customer contributions included Customer A, which generated RMB 1,168,000 in revenue, down 64.4% from RMB 3,284,000 in the previous year[21] Business Operations - The company primarily engages in label solutions and garment accessories manufacturing and supply in China[13] - The company operates primarily in China, with most non-current assets and capital expenditures located in or used for operations in China[20] - The company is subject to a corporate income tax rate of 25% in China for the three months ended March 31, 2020[26] - The company has not generated taxable profits in Hong Kong, thus no provision for Hong Kong profits tax was made[26] Future Plans and Investments - The company plans to invest more resources to explore potential customers in China and seek new business opportunities to enhance revenue sources[38] - The company plans to issue up to 50,000,000 new shares to expand its capital base[48] - The company aims to diversify its revenue sources through the development of garment trading and internet technology businesses[57] - The company plans to reallocate HKD 8 million for developing garment trading business and HKD 3 million for internet and information technology business by December 31, 2021[57] Governance and Compliance - The company has adopted a code of conduct for directors' securities transactions, complying with GEM listing rules[67] - The company has adhered to the corporate governance code as per GEM listing rules, maintaining high standards of governance and accountability[68] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial statements for the three months ended March 31, 2020, ensuring compliance with applicable accounting standards[74] - There were no significant contracts entered into by the directors that hold substantial interests affecting the group's business during the three months ended March 31, 2020[69] - The company has no knowledge of any competing businesses held by its controlling shareholders or their close associates as of March 31, 2020[70] Shareholder Information - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the reporting period[65] - The executive directors as of the report date include Mr. Lin Qi Yuan and Mr. Lin Qi Chang, with independent non-executive directors being Mr. Mei Yi He, Ms. Su Chen Wei Xiang, and Mr. He Xu Xi[75] Proceeds Utilization - The net proceeds from the listing amount to approximately HKD 37.6 million, with actual usage as of March 31, 2020, being HKD 12.9 million[53] - Upgrading production facilities and digital printing technology accounted for HKD 17.0 million of the planned usage, with only HKD 1.8 million utilized by March 31, 2020[53] - The development of RFID technology for the group's products was allocated HKD 3.0 million, with HKD 0.5 million utilized[53] - The upgrade of IT systems had a planned allocation of HKD 53 million, with only HKD 2.2 million utilized by March 31, 2020[53] - The delay in the utilization of proceeds is attributed to the purchase of second-hand printing machines at a significant discount and delays in the expansion of heat transfer production facilities due to trade tensions and the pandemic[54] - As of March 31, 2020, the remaining unutilized balance of the net proceeds was approximately HKD 15.2 million[54] Market Outlook - The company anticipates a gradual recovery in the Chinese apparel industry for the remainder of 2020 following the impact of the COVID-19 pandemic[37]

Financial Performance - The company recorded revenue of approximately RMB 761 million for the year ended December 31, 2019, representing a slight decrease of about 23.1% compared to the previous year[10] - Gross profit for the year was approximately RMB 217 million, a decrease of about 26.1% year-on-year[10] - The group's revenue for the year ended December 31, 2019, was approximately RMB 76.1 million, a decrease of about 23.1% compared to approximately RMB 98.9 million for the year ended December 31, 2018[17] - The group's gross profit margin decreased from approximately 29.6% for the year ended December 31, 2018, to approximately 28.5% for the year ended December 31, 2019, due to a revenue decline of 23.1% and a sales cost reduction of 21.8%[23] - The group recorded a loss of approximately RMB 5.1 million for the year ended December 31, 2019, compared to a loss of approximately RMB 2.8 million for the year ended December 31, 2018[29] - Total assets as of December 31, 2019, were approximately RMB 74.4 million, down from RMB 82.4 million in 2018, with total liabilities and shareholders' equity at RMB 7.8 million and RMB 66.6 million, respectively[30] - The group maintained sufficient working capital with bank balances and cash of approximately RMB 41.4 million as of December 31, 2019, compared to RMB 41.7 million in 2018[30] Strategic Plans and Market Outlook - The company plans to continue implementing cost control measures and expanding its customer base and product portfolio to mitigate market challenges[11] - Future years are expected to remain challenging for the apparel accessories industry, but the company aims to capture market opportunities for sustainable business growth[12] - The company will maintain growth in comprehensive labeling solutions, production management, and customer service to strengthen overall competitiveness and market share[11] - The group plans to invest more resources in exploring potential customers in China and overseas to expand sales and enhance profitability[22] Operational Efficiency - The group’s administrative expenses decreased from approximately RMB 26.5 million in 2018 to approximately RMB 21.0 million in 2019 due to cost-cutting measures[27] - The group’s distribution and selling expenses increased from approximately RMB 5.0 million in 2018 to approximately RMB 5.3 million in 2019, reflecting continued investment in sales and marketing despite revenue decline[25] - The company plans to upgrade production facilities and digital printing technology as part of its implementation plan[62] - The company aims to develop the capability to apply RFID technology to its products[63] - The company has expanded its sales and marketing department according to its implementation plan[66] Corporate Governance - The board consists of six members, including one non-executive director, two executive directors, and three independent non-executive directors, ensuring a strong independent element for independent judgment[96] - The company has complied with the corporate governance code applicable provisions as of December 31, 2019, enhancing accountability and transparency to protect shareholder interests[90] - The company’s independent non-executive directors have confirmed their independence, meeting the requirements of the GEM Listing Rules[97] - The management team has extensive experience, with the financial director accumulating over 11 years in audit, accounting, and financial management[86] - The company is committed to maintaining sound corporate governance standards to support long-term success and sustainable development[90] - The board's main responsibilities include formulating overall strategies and monitoring management performance[92] - The company has established a remuneration committee and an audit committee to oversee financial reporting and compliance[83] Risk Management - The company faced several risks, including the lack of long-term contracts with customers, rising raw material prices, and intense competition in the garment accessories industry[49] - The company has implemented a three-tier risk management approach to identify, assess, and mitigate risks, with business units as the first line of defense[150] - The management is responsible for establishing and reviewing the internal control system, which is fundamental to the risk management framework[149] - The company emphasizes the importance of good risk management for long-term business development and has developed a risk management and monitoring framework[149] Environmental Responsibility - The company is committed to maintaining high environmental standards and has complied with applicable laws regarding air and greenhouse gas emissions, as well as waste generation[166] - The company has achieved FSC certification for its products, ensuring compliance with production and sales regulatory chain requirements[166] - Energy consumption in the company's facilities is a major source of greenhouse gas emissions, prompting the implementation of various energy-saving measures in 2019[167] - The company has encouraged digital printing to reduce resource usage, including water and electricity, as part of its energy efficiency management initiatives[167] - Employee awareness regarding greenhouse gas emissions and energy conservation has improved due to the company's initiatives[168] Employee Management - The total number of employees as of December 31, 2019, was 254, with a gender distribution of 58.3% female (148) and 41.7% male (106)[181] - Employee turnover rate for 2019 was 22.4%, with 57 employees leaving the company[185] - Average training hours per employee increased from 3.27 hours in 2018 to 3.89 hours in 2019[190] - The percentage of trained female employees rose from 82.2% in 2018 to 84.5% in 2019, while male trained employees increased from 84.4% to 86.8%[190] - The company adheres to local labor laws and regulations, ensuring competitive compensation and benefits for employees[178] Financial Management - The net proceeds from the listing amounted to approximately HKD 37.6 million, with actual usage lower than planned due to the need for more time to identify suitable machinery[69] - As of December 31, 2019, the actual usage of the net proceeds was HKD 12.7 million, leaving a balance of HKD 24.9 million[69] - The planned usage for enhancing production facilities and digital printing technology was HKD 17.0 million, with only HKD 1.8 million utilized[69] - The development of RFID technology applications was budgeted at HKD 3.0 million, with HKD 0.5 million spent[69] - The company has not identified any non-compliance with the standards of conduct for securities trading by directors during the year[102] Shareholder Engagement - The annual general meeting for shareholders is scheduled for May 4, 2020[100] - The annual general meeting will be held on May 4, 2020, providing a platform for shareholders to communicate directly with the board regarding the group's performance and future development[154]

Financial Performance - For the nine months ended September 30, 2019, the group recorded unaudited revenue of approximately RMB 584 million, a decrease of about 23.3% compared to RMB 761 million for the same period in 2018[5]. - The group reported an unaudited loss of approximately RMB 1.8 million for the nine months ended September 30, 2019, compared to an unaudited profit of RMB 0.5 million for the same period in 2018[5]. - Basic loss per share for the nine months ended September 30, 2019, was RMB 0.23, compared to basic earnings of RMB 0.06 for the same period in 2018[5]. - Revenue for the three months ended September 30, 2019, was RMB 18.314 million, down from RMB 25.938 million for the same period in 2018[9]. - Gross profit for the nine months ended September 30, 2019, was RMB 18.279 million, compared to RMB 23.473 million for the same period in 2018[9]. - The group’s loss before tax for the nine months ended September 30, 2019, was RMB 861, compared to a profit of RMB 2,054 for the same period in 2018[9]. - Revenue from customer contracts for the nine months ended September 30, 2019, was RMB 58,449,000, a decrease of 23.2% compared to RMB 76,085,000 for the same period in 2018[53]. - Sales of printed products amounted to RMB 23,655,000, down 28.7% from RMB 33,156,000 in the previous year[53]. - Revenue from garment manufacturers was RMB 44,964,000, a decline of 23.6% from RMB 58,909,000 in 2018[57]. - Major customer A contributed RMB 12,068,000 to total sales, down 23.0% from RMB 15,841,000 in the previous year[60]. - For the nine months ended September 30, 2019, the company's revenue was approximately RMB 58.4 million, a decrease of 23.3% compared to RMB 76.1 million for the same period in 2018[73]. - The gross profit for the nine months ended September 30, 2019, was approximately RMB 18.3 million, down about 22.1% from RMB 23.5 million in the same period of 2018, resulting in a gross margin increase from 30.9% to 31.3%[76]. Dividends and Shareholder Information - The board of directors resolved not to declare an interim dividend for the nine months ended September 30, 2019, consistent with the previous year[5]. - The company did not declare an interim dividend for the nine months ended September 30, 2019, consistent with the same period in 2018[67]. - The major shareholder, Mr. Lin, holds 600 million shares, representing 75% of the company's equity[93]. Administrative and Operating Expenses - The group incurred administrative expenses of RMB 16.092 million for the nine months ended September 30, 2019, down from RMB 18.886 million for the same period in 2018[9]. - Distribution and selling expenses decreased slightly to approximately RMB 3.7 million for the nine months ended September 30, 2019, from RMB 3.8 million in the same period of 2018[77]. - Administrative expenses were reduced to approximately RMB 16.1 million for the nine months ended September 30, 2019, from RMB 18.9 million in the same period of 2018, due to cost-cutting measures[78]. New Business Initiatives - The group established a wholly-owned subsidiary named RN Crypto (BVI) Company Limited, aimed at collaborating with partners in the blockchain business[18]. - The company plans to explore new business opportunities, including selling waist products through different channels and providing blockchain services[75]. - The company will focus more resources on exploring potential customers in China and overseas apparel brands to expand sales and improve profitability[75]. Financial Reporting Standards - The group prepared the unaudited consolidated financial statements for the nine months ended September 30, 2019, in accordance with Hong Kong Financial Reporting Standards[19]. - The financial statements were presented in Renminbi, which is the functional currency of the company[19]. - The application of new Hong Kong Financial Reporting Standards did not have a significant impact on the financial position and performance of the group for the current and prior periods[29]. - The group adopted HKFRS 16 on leases, which replaced HKAS 17 and related interpretations[30]. - The company has not made adjustments under the new Hong Kong Financial Reporting Standards 16 for leases that end within 12 months from the initial application date[51]. - The company has chosen not to recognize right-of-use assets and lease liabilities for leases that end within 12 months from the initial application date[51]. Capital Expenditure and Investments - The net proceeds from the listing, after deducting related expenses, were approximately HKD 37.6 million (equivalent to about RMB 32.7 million)[86]. - The total planned amount for upgrading production facilities and digital printing technology is HKD 37.6 million, with actual usage at HKD 12.4 million, leaving a balance of HKD 25.2 million[88]. - The company has allocated HKD 17.0 million for upgrading printing technology, with HKD 1.8 million utilized so far, resulting in a remaining balance of HKD 15.2 million[88]. - HKD 3.0 million has been earmarked for developing RFID technology capabilities, with no funds used yet, leaving a full balance of HKD 25 million[88]. - The company plans to enhance heat transfer production facilities with a budget of HKD 6.0 million, of which HKD 4.1 million has been spent, leaving HKD 1.9 million remaining[88]. - An investment of HKD 5.3 million is designated for upgrading IT systems, with HKD 2.1 million utilized, resulting in a remaining balance of HKD 3.2 million[88]. - The sales and marketing department expansion has a budget of HKD 3.0 million, with HKD 0.8 million spent, leaving HKD 2.2 million available[88]. - General working capital has an allocation of HKD 3.3 million, with HKD 3.1 million used, leaving a balance of HKD 0.2 million[88]. - The actual usage of funds is lower than planned due to the time taken to identify suitable machinery for digital printing and RFID technology[89]. - The company aims to continue its production line upgrades and development in the future based on market conditions[89]. Audit and Compliance - The Audit Committee was established on June 24, 2017, and consists of three independent non-executive directors[128]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2019, and confirmed compliance with applicable accounting standards and GEM listing rules[128]. - The company appointed Tongren Financing Limited as a compliance advisor on March 7, 2017, with no interests in the company's equity[125].

Financial Performance - For the six months ended June 30, 2019, the group recorded unaudited revenue of approximately RMB 40.1 million, a decrease of about 20.0% compared to RMB 50.1 million for the same period in 2018[5]. - The group reported an unaudited loss of approximately RMB 1.7 million for the six months ended June 30, 2019, compared to an unaudited loss of RMB 0.4 million for the same period in 2018[5]. - Basic loss per share for the six months ended June 30, 2019, was RMB 0.21, compared to RMB 0.05 for the same period in 2018[5]. - Gross profit for the six months ended June 30, 2019, was RMB 12.6 million, down from RMB 15.9 million for the same period in 2018, reflecting a decrease in gross margin[10]. - The group incurred a total comprehensive loss of RMB 1.7 million for the six months ended June 30, 2019[22]. - For the six months ended June 30, 2019, the company reported a loss attributable to owners of the company of RMB 1,657,000 (compared to a loss of RMB 384,000 for the same period in 2018)[90]. - The gross profit for the same period was approximately RMB 12.6 million, down about 21.3% from RMB 15.9 million in the previous year, resulting in a slight decrease in gross margin from 31.8% to 31.4%[132]. Dividend and Equity - The board of directors resolved not to declare an interim dividend for the six months ended June 30, 2019, consistent with the previous year[5]. - The group’s total equity as of June 30, 2019, was RMB 70.1 million, a decrease from RMB 71.8 million as of December 31, 2018[19]. - The group did not declare an interim dividend for the six months ended June 30, 2019, compared to no dividend declared for the same period in 2018[89]. Assets and Liabilities - Total assets less current liabilities as of June 30, 2019, were RMB 70.1 million, compared to RMB 71.8 million as of December 31, 2018[18]. - Non-current assets as of June 30, 2019, amounted to RMB 17.7 million, down from RMB 20.2 million as of December 31, 2018[14]. - Current assets as of June 30, 2019, were RMB 62.9 million, slightly up from RMB 62.2 million as of December 31, 2018[14]. - As of June 30, 2019, the group's net current assets were approximately RMB 52.5 million, an increase from RMB 51.6 million as of December 31, 2018[139]. - The current ratio as of June 30, 2019, was approximately 6.0, compared to 5.9 as of December 31, 2018[139]. - The group had no outstanding loans or borrowings as of June 30, 2019, resulting in a debt-to-asset ratio of zero[140]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2019, was RMB 808,000, compared to a net cash used of RMB 1,402,000 in the same period of 2018, indicating a significant improvement[26]. - The net cash used in investing activities was RMB 808,000, a decrease from RMB 1,863,000 in the previous year, reflecting reduced capital expenditures[26]. - The net increase in cash and cash equivalents was RMB 1,616,000, compared to a decrease of RMB 3,265,000 in the same period last year, showing a positive cash flow trend[26]. - The cash and cash equivalents at the end of the period amounted to RMB 43,294,000, up from RMB 41,373,000 at the end of the previous year[26]. - The initial cash and cash equivalents were RMB 41,723,000, down from RMB 44,638,000 in the previous year, indicating a decrease in available cash at the start of the period[26]. - The company reported a foreign exchange impact of RMB (45,000) on cash and cash equivalents, which reflects currency fluctuations during the period[26]. Revenue Breakdown - Revenue from product type one for the six months ended June 30, 2019, was RMB 40,136,000, a decrease of 20.2% compared to RMB 50,147,000 for the same period in 2018[69]. - Revenue from the clothing manufacturing segment was RMB 31,143,000 for the six months ended June 30, 2019, down from RMB 37,859,000 in 2018, representing a decline of 17.7%[74]. - Major customer A contributed RMB 8,516,000 to total sales for the six months ended June 30, 2019, compared to RMB 11,288,000 in 2018, reflecting a decrease of 24.5%[77]. - The company reported a total revenue of RMB 40,136,000 for the six months ended June 30, 2019, which includes various product sales[68]. Expenses - The total employee costs, including directors' remuneration, amounted to RMB 13,211,000 for the six months ended June 30, 2019, compared to RMB 17,843,000 in 2018[85]. - Distribution and selling expenses decreased from approximately RMB 2.5 million in the previous year to about RMB 2.3 million, despite a decline in revenue[133]. - Administrative expenses were reduced from approximately RMB 13.2 million to about RMB 11.4 million due to cost-cutting measures implemented during the period[134]. - The company incurred a tax expense of RMB 680,000 for the six months ended June 30, 2019, down from RMB 935,000 in the same period of 2018[82]. - Total employee benefit expenses for the six months ended June 30, 2019, were approximately RMB 13.2 million, down from RMB 17.8 million for the same period in 2018[155]. Corporate Governance - The company maintains high standards of corporate governance, adhering to the GEM Listing Rules and ensuring shareholder interests are protected[187]. - The Audit Committee was established on June 24, 2017, consisting of three independent non-executive directors, with responsibilities including reviewing financial statements and overseeing the financial reporting system[194]. - The Audit Committee has reviewed the interim report, including unaudited interim financial information, and confirmed compliance with applicable accounting standards and GEM Listing Rules[194]. Future Plans and Market Outlook - The company plans to invest more resources in exploring potential customers in China and overseas apparel brands to expand sales and improve profitability[131]. - The group anticipates stable growth in the apparel accessories market despite intense price competition and rising labor and material costs[158]. Compliance and Reporting - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[31]. - The application of new accounting standards did not have a significant impact on the financial performance or disclosures for the current and prior periods[42]. - The company has applied the new Hong Kong Financial Reporting Standard 16, which has impacted the accounting policies related to lease liabilities and right-of-use assets[66]. - The company has chosen not to recognize right-of-use assets and lease liabilities for leases that end within 12 months from the initial application date of January 1, 2019[67]. Employee Information - The group employed 277 full-time employees as of June 30, 2019, a decrease from 336 employees as of June 30, 2018[155].

Financial Performance - For the three months ended March 31, 2019, the group recorded unaudited revenue of approximately RMB 19.5 million, a decrease of about 9.7% compared to RMB 21.6 million for the same period in 2018[5] - The group reported an unaudited loss of approximately RMB 2.0 million for the three months ended March 31, 2019, compared to an unaudited loss of RMB 1.2 million for the same period in 2018[5] - Basic loss per share for the three months ended March 31, 2019, was RMB 0.25, compared to RMB 0.14 for the same period in 2018[5] - Gross profit for the three months ended March 31, 2019, was RMB 5.6 million, down from RMB 6.9 million for the same period in 2018[9] - The group's gross profit decreased by approximately 18.8% to about RMB 5.6 million for the three months ended March 31, 2019, down from approximately RMB 6.9 million in the same period of 2018[42] - The gross profit margin fell from approximately 32.1% for the three months ended March 31, 2018, to about 29.0% for the same period in 2019[42] - Revenue from the clothing manufacturing sector contributed RMB 15,947,000, accounting for approximately 81.9% of total revenue[26] - The company’s revenue from printed products was RMB 8,191,000, a decrease of 13.7% from RMB 9,496,000 in the previous year[26] Expenses - Selling and distribution expenses for the three months ended March 31, 2019, were RMB 1.1 million, slightly reduced from RMB 1.2 million in the same period of 2018[9] - Administrative expenses increased to RMB 6.6 million for the three months ended March 31, 2019, compared to RMB 6.5 million for the same period in 2018[9] - Distribution and selling expenses were approximately RMB 1.1 million for the three months ended March 31, 2019, slightly down from RMB 1.2 million in the same period of 2018[43] - Administrative expenses increased slightly to approximately RMB 6.6 million for the three months ended March 31, 2019, from about RMB 6.5 million in the same period of 2018[44] Dividend - The board of directors resolved not to declare an interim dividend for the three months ended March 31, 2019, consistent with the same period in 2018[5] - The company did not declare an interim dividend for the three months ended March 31, 2019, compared to no dividend declared for the same period in 2018[32] - No interim dividend was declared for the three months ended March 31, 2019, consistent with the same period in 2018[51] Equity and Ownership - The total equity as of March 31, 2019, was RMB 69.7 million, down from RMB 74.5 million as of January 1, 2018[13] - As of March 31, 2019, Neo Concept holds 600,000,000 shares, representing a 75% ownership stake in the company[65] - The company did not purchase, sell, or redeem any shares during the three-month period ending March 31, 2019[67] Compliance and Governance - The financial statements for the three months ended March 31, 2019, were prepared in accordance with Hong Kong Financial Reporting Standards[18] - The company applies new and revised Hong Kong Financial Reporting Standards, which may lead to potential changes in asset classification[24] - The company has complied with the corporate governance code in all material aspects during the three-month period ending March 31, 2019[72] - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ending March 31, 2019, and found them to comply with applicable accounting standards[77] Operations - The group primarily engages in label solutions and garment accessories manufacturing and supply in China[18] - The company continues to serve a large number of clothing brand companies and designated procurement companies in China[38] - The company’s operations are primarily located in China, with most non-current assets and capital expenditures also in China[28] - The company is focused on providing label solutions and one-stop garment accessory manufacturing services[38] Future Plans - The net proceeds from the listing, after deducting related expenses, were approximately HKD 37.6 million[52] - The actual use of proceeds was lower than planned mainly due to the time required to identify suitable machinery for digital printing technology and RFID technology[57] - The group plans to invest in upgrading production facilities and developing digital printing technology, with a budget of HKD 17.0 million allocated for this purpose[53]