Financial Performance - Revenue for the first quarter of 2021 reached HKD 139,533,000, a 77% increase compared to HKD 78,811,000 in the same period of 2020[7] - Gross profit for the first quarter of 2021 was HKD 47,542,000, representing a 92% increase from HKD 24,715,000 in the first quarter of 2020[7] - Profit attributable to owners for the first quarter of 2021 was HKD 18,035,000, up 201% from HKD 5,978,000 in the same quarter of 2020[7] - Basic and diluted earnings per share for the first quarter of 2021 were HKD 1.64, compared to HKD 0.54 in the first quarter of 2020[7] - Total comprehensive income for the first quarter of 2021 amounted to HKD 18,012,000, compared to HKD 5,942,000 in the same period of 2020[7] - Other income for the three months ended March 31, 2021, was HKD 220,000, compared to HKD 168,000 in the same period of 2020[26] - Net profit for the period ended March 31, 2021, was approximately HKD 18.0 million, an increase of about HKD 12.0 million or 200.0% compared to the same period in 2020[47] Expenses - Selling and distribution expenses increased to HKD 7,388,000 from HKD 3,881,000 year-over-year[7] - Administrative expenses rose to HKD 16,704,000 compared to HKD 10,618,000 in the previous year[7] - Financing costs for the first quarter of 2021 were HKD 1,168,000, up from HKD 823,000 in the same quarter of 2020[7] - Sales and distribution expenses for the three months ended March 31, 2021, were approximately HKD 7.4 million, an increase of about HKD 3.5 million or 89.7% compared to the same period in 2020[44] - Administrative expenses for the three months ended March 31, 2021, were approximately HKD 16.7 million, an increase of about HKD 6.1 million or 57.5% compared to the same period in 2020[45] - Financing costs for the three months ended March 31, 2021, were approximately HKD 1.2 million, an increase of about HKD 377,000 or 45.8% compared to the same period in 2020[46] Market Performance - Total revenue for the three months ended March 31, 2021, was HKD 139,533,000, a significant increase of 77% compared to HKD 78,811,000 for the same period in 2020[17] - Sales of scented candles reached HKD 91,936,000, up 121% from HKD 41,565,000 in the previous year[17] - Revenue from the US market was HKD 132,085,000, representing an increase of 85% from HKD 71,391,000 in the same quarter of 2020[25] - Sales of daily-use candles increased by approximately HKD 11.7 million or 61.6% compared to the same period in 2020[39] - Sales of scented candles increased by approximately HKD 50.4 million or 121.2% compared to the same period in 2020, reflecting a growing preference in the U.S. market for scented and colored candles[37] Corporate Governance - The company has complied with the corporate governance code as per GEM listing rules as of March 31, 2021[72] - The audit committee has been established in accordance with GEM Listing Rules and consists of three independent non-executive directors[73] - The audit committee reviewed the unaudited consolidated performance for the three months ended March 31, 2021, and confirmed compliance with applicable accounting standards and legal requirements[73] Future Outlook and Operations - The company continues to focus on expanding its market presence and enhancing product offerings in the candle manufacturing sector[13] - The company has established long-term relationships with clients, supported by an experienced management team, which is expected to lead to future business opportunities and growth[39] - The company has effectively managed the supply of raw materials and implemented COVID-19 preventive measures to ensure smooth production during the pandemic[40] - Construction of a new factory in Vietnam is approximately 7.2% complete as of March 31, 2021, with expected completion by August 10, 2021[48] Shareholder Information - Major shareholders hold approximately 58.5% of the issued shares through controlled corporations[54] - AVW holds a beneficial ownership of 643,500,000 shares, representing 58.5% of the total shares[61] - Huayi Si Enterprise Limited holds 181,500,000 shares, accounting for 16.5% of the total shares[61] - The stock option plan adopted on June 23, 2018, allows for a maximum issuance of shares not exceeding 30% of the total issued shares[64] - The maximum number of shares that can be issued upon the exercise of stock options is capped at 110,000,000 shares, equivalent to 10% of the total issued shares as of the report date[65] - No directors or major shareholders held any interests in businesses that directly or indirectly compete with the group as of March 31, 2021[68] Taxation and Compliance - The estimated taxable profit for the company in Hong Kong is subject to a two-tier profit tax rate system, with the first HKD 2 million taxed at 8.25% and the remainder at 16.5%[29] - The company confirmed that the adoption of new Hong Kong Financial Reporting Standards will not have a significant impact on the financial statements presented[16] - The company is currently evaluating the impact of new or revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective[15] Other Information - The company did not declare an interim dividend for the three months ended March 31, 2021[51] - The company has no significant investments, acquisitions, or disposals during the three months ended March 31, 2021[49] - There were no significant events affecting the company after the reporting period[50] - Other losses for the three months ended March 31, 2021, were approximately HKD 773,000, a decrease of about HKD 1.3 million or 61.9% compared to the same period in 2020[43]

Financial Performance - For the year ended December 31, 2020, the group's revenue was approximately HKD 555.9 million, with a net profit of approximately HKD 90.5 million[13]. - The company's revenue for the year ended December 31, 2020, was approximately HKD 555.9 million, an increase of about HKD 248.4 million or 80.8% compared to 2019[19]. - Gross profit for the same period was approximately HKD 206.6 million, representing an increase of about HKD 115.4 million or 126.5% year-on-year[20]. - The net profit for the year ended December 31, 2020, was approximately HKD 90.5 million, an increase of about HKD 65.8 million or 266.4% compared to 2019[30]. - Total assets as of December 31, 2020, were approximately HKD 353.7 million, an increase from approximately HKD 230.2 million in 2019[32]. - The company's total borrowings as of December 31, 2020, were approximately HKD 29.7 million, down from HKD 47.0 million in 2019[32]. - The current ratio improved to approximately 2.4 times as of December 31, 2020, compared to 2.0 times in 2019, primarily due to increased cash and cash equivalents[32]. - Other income for the year was approximately HKD 2.9 million, an increase of about HKD 2.1 million or 274.9% compared to 2019, mainly due to miscellaneous income increases[25]. - As of December 31, 2020, the total distributable reserves available for equity shareholders amounted to approximately HKD 21.6 million[159]. Sales and Market Growth - The sales volume of scented candles increased by approximately HKD 190.1 million or 127.1% compared to the same period in 2019, reflecting a growing preference in the US market for scented and colored candles[16]. - Sales from aroma diffusers also saw significant growth, increasing by approximately HKD 57.2 million or 131.5% compared to the previous year[17]. - The market for mid-to-high-end candle products is expected to increase as the economies of the US and other developed countries continue to recover[15]. - The group primarily manufactures and sells daily candles, scented candles, decorative candles, and other products, with major customers being department store operators and procurement agents in the US and UK[15]. - The top five customers accounted for approximately 82.0% of the group's revenue for the year ended December 31, 2020, up from 63.2% in 2019[166]. - The largest customer represented about 60.4% of total sales, compared to 29.0% in 2019[167]. Corporate Governance - The board of directors emphasizes the importance of maintaining high standards of corporate governance, having complied with all applicable code provisions of the corporate governance code during the year ended December 31, 2020[65]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, with independent non-executive directors accounting for at least one-third of the board at all times during the relevant period[67]. - The company has established a nomination committee to regularly review the structure, size, and composition of the board, and to identify qualified candidates for board membership[76]. - The company has adopted a diversity policy for the board, considering factors such as gender, age, cultural and educational background, and professional experience in the appointment of directors[76]. - The company has a legal liability insurance plan for directors and senior officers, which is reviewed at least annually to ensure adequate protection against potential liabilities[74]. - The company has complied with the GEM listing rules regarding the appointment of independent non-executive directors, with at least one possessing appropriate accounting qualifications[70]. - The board is responsible for leading and controlling the company, aiming to maximize long-term shareholder value while balancing the interests of shareholders[66]. - The company allows directors to seek independent professional advice at the company's expense when necessary[75]. - The board's composition has remained unchanged during the relevant period, ensuring a balanced mix of skills and experience[69]. Employee and Operational Insights - The group employed approximately 1,830 employees as of December 31, 2020, an increase from about 1,050 employees in 2019[45]. - The executive directors have over 20 years of experience in candle manufacturing, contributing to the company's strategic planning and operational oversight[125][126]. - The company has a financial director with over 10 years of experience in auditing, accounting, and financial management[140]. Future Outlook and Strategy - The management remains optimistic about future growth and plans to invest more resources in product development and marketing strategies[49]. - The company has entered into contracts with sales representatives to capture the rapid growth in candle products, particularly in the US market[17]. - The group has completed the acquisition of new land for production facilities, with construction of a new factory expected to be completed by August 10, 2021, although this timeline may be extended[46][57]. Environmental and Social Responsibility - The group is committed to enhancing environmental protection and minimizing operational impacts on the environment[169]. - The group made donations totaling HKD 147,000 during the year, significantly up from HKD 11,000 in 2019[165]. - The group has complied with all relevant laws and regulations, with no significant violations reported for the year ended December 31, 2020[171]. Financial Management and Investments - The company has no significant investment or capital asset plans as of December 31, 2020, beyond those disclosed in the prospectus and annual report[41]. - The group has paid approximately HKD 10.6 million for the acquisition of new production equipment and plans to purchase the remaining machinery in 2021[57][58]. - The group has repaid approximately HKD 6.9 million of bank loans as part of its financial strategy[60]. - The net proceeds from the listing amounted to approximately HKD 44.5 million, which is lower than the estimated net proceeds of approximately HKD 50.5 million[53]. - As of December 31, 2020, the group had utilized approximately HKD 22.0 million of the net proceeds, leaving approximately HKD 22.5 million unutilized[55]. Shareholder Communication - The board has established a shareholder communication policy to maintain ongoing dialogue with shareholders and investors, ensuring timely access to all publicly available information[116]. - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting within two months of submission[118]. - Shareholders can send inquiries to the board in writing or via email to obtain information about the company[119].

Financial Performance - Revenue for the three months ended September 30, 2020, was HKD 176.8 million, an increase from HKD 112.9 million for the same period in 2019, representing a growth of 56.5%[5] - Gross profit for the three months ended September 30, 2020, was HKD 67.2 million, compared to HKD 34.1 million in the same period of 2019, reflecting a gross margin improvement[5] - Profit attributable to owners of the company for the three months ended September 30, 2020, was HKD 38.5 million, significantly up from HKD 11.7 million in the prior year, marking a growth of 228.5%[5] - The company reported a basic and diluted earnings per share of HKD 3.50 for the three months ended September 30, 2020, compared to HKD 1.07 for the same period in 2019[5] - For the nine months ended September 30, 2020, total revenue reached HKD 325.1 million, an increase of 53.0% from HKD 212.6 million in the same period of 2019[5] - The company’s total comprehensive income for the three months ended September 30, 2020, was HKD 38.5 million, compared to HKD 11.7 million in the same period of 2019[5] - Total revenue for the nine months ended September 30, 2020, was HKD 325,107,000, a 53% increase compared to HKD 212,552,000 for the same period in 2019[12] - Net profit for the nine months ended September 30, 2020, was approximately HKD 50.9 million, an increase of about HKD 41.1 million or 419.4% compared to HKD 9.8 million in the same period of 2019[51] - Gross profit for the nine months ended September 30, 2020, was approximately HKD 116.1 million, an increase of about HKD 56.3 million or 94.1% compared to HKD 59.8 million in the same period of 2019[43] - Gross margin increased to approximately 35.7% for the nine months ended September 30, 2020, compared to 28.1% in the same period of 2019, driven by higher sales and margins of scented candles and other candle products[43] Market Performance - Revenue from the US market reached HKD 288,972,000 for the nine months ended September 30, 2020, up 83% from HKD 157,857,000 in the same period of 2019[20] - Revenue from the UK market decreased to HKD 30,654,000 for the nine months ended September 30, 2020, down 30% from HKD 44,120,000 in the same period of 2019[20] - Candle product sales accounted for HKD 176,800,000 in the third quarter of 2020, compared to HKD 112,873,000 in the same quarter of 2019, representing a 57% increase[12] - Sales of scented candles increased by approximately HKD 89.7 million or 90.2% compared to the same period in 2019, reflecting a growing preference in the US market for scented and colored candles[37] Expenses and Costs - Administrative expenses for the three months ended September 30, 2020, were HKD 11.6 million, slightly down from HKD 11.7 million in the same period of 2019[5] - Selling and distribution expenses for the nine months ended September 30, 2020, were approximately HKD 18.3 million, an increase of about HKD 2.9 million or 18.8% compared to HKD 15.4 million in the same period of 2019[45] - Administrative expenses for the nine months ended September 30, 2020, were approximately HKD 32.0 million, an increase of about HKD 2.0 million or 6.67% compared to HKD 30.0 million in the same period of 2019[46] - Total financing costs for the nine months ended September 30, 2020, were HKD 2,526,000, an increase from HKD 1,993,000 in the same period of 2019[25] - Financing costs for the nine months ended September 30, 2020, were approximately HKD 2.5 million, an increase of about HKD 0.5 million or 25.0% compared to HKD 2.0 million in the same period of 2019[48] - The increase in financing costs was primarily due to the use of more bank borrowings to support revenue growth[49] Corporate Strategy and Governance - The company plans to continue expanding its market presence and developing new products to enhance revenue streams[8] - The company is focused on maintaining a strong financial position while exploring potential mergers and acquisitions to drive growth[8] - The company has established long-term relationships with customers, which is expected to lead to further business opportunities and growth[41] - The company is closely monitoring the impact of COVID-19 on its operations and financial condition, confirming no significant adverse changes as of the report date[41] - The company has engaged sales representatives since 2018 to capture the rapid growth in candle products, particularly in the US market[37] - The company’s management team is experienced in the industry, which enhances confidence in securing further growth opportunities[41] - The company has adopted a share option scheme since June 23, 2018, allowing for the issuance of shares up to 30% of the total issued shares upon exercise of options[65] - The maximum number of shares that can be issued under the share option scheme is capped at 110,000,000 shares, equivalent to 10% of the total issued shares as of the report date[66] - The company is committed to high levels of corporate governance to protect shareholder interests and enhance corporate value[72] - The audit committee's main responsibilities include reviewing financial reporting procedures and monitoring internal control systems[73] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[74] Compliance and Reporting - The company has adopted new accounting standards which did not have a significant impact on the financial statements for the period[9] - The company expects to continue evaluating the impact of new or revised Hong Kong Financial Reporting Standards on its financial statements[11] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the nine months ended September 30, 2020, ensuring compliance with applicable accounting standards and regulations[73] - The company has adhered to the corporate governance code as outlined in the GEM Listing Rules[72] - The company has not identified any violations of the trading standards as of September 30, 2020[71] - The company has not disclosed the transaction price allocated to unsatisfied performance obligations as permitted under HKFRS 15[15] - No purchase, sale, or redemption of the company's listed securities has occurred since the listing[72] - No interim dividend was declared for the nine months ended September 30, 2020[54] - The company did not declare or recommend any dividends for the nine months ended September 30, 2020, and 2019[33] - As of September 30, 2020, AVW holds 643,500,000 shares, representing 58.5% of the total issued shares[60] - Huayi Si Enterprise Limited and its controlled entities collectively hold 181,500,000 shares, accounting for 16.5% of the total issued shares[60]

Financial Performance - Total revenue for the six months ended June 30, 2020, was HKD 148.3 million, an increase from HKD 99.7 million in the same period of 2019, representing a growth of 48.7%[12] - Gross profit for the same period was HKD 48.9 million, compared to HKD 25.8 million in 2019, indicating a gross margin improvement from 25.9% to 32.9%[12] - The net profit attributable to the owners of the company for the six months ended June 30, 2020, was HKD 12.3 million, a significant recovery from a loss of HKD 1.9 million in the prior year[12] - Basic earnings per share for the period was HKD 1.12, compared to a loss per share of HKD 0.18 in the same period of 2019[12] - The company reported a total comprehensive income of HKD 12.4 million for the six months ended June 30, 2020, compared to a loss of HKD 2.1 million in the same period of 2019[12] - The company’s total comprehensive income for the period was HKD 12,365 million, compared to HKD 12,345 million in the previous year, indicating a slight increase[18] - The group generated a net profit of approximately HKD 12.3 million for the six months ended June 30, 2020, an increase of about HKD 14.2 million or 747.4% compared to a net loss of HKD 1.9 million in 2019[80] Assets and Liabilities - Total assets as of June 30, 2020, amounted to HKD 251.2 million, an increase from HKD 230.2 million as of December 31, 2019[14] - Current assets increased to HKD 199.5 million from HKD 177.3 million, reflecting a growth of 12.5%[14] - The company’s non-current assets totaled HKD 51.7 million, slightly down from HKD 52.9 million at the end of 2019[14] - Current liabilities increased to HKD 98.8 million from HKD 89.5 million, reflecting a rise of 10.5%[14] - Total liabilities increased to HKD 105,065 million as of June 30, 2020, compared to HKD 96,452 million at the end of 2019, representing a growth of approximately 8.4%[15] - Net asset value rose to HKD 146,153 million as of June 30, 2020, up from HKD 133,788 million at the end of 2019, indicating an increase of about 9.3%[15] Cash Flow - Net cash generated from operating activities was HKD 7,405 million for the six months ended June 30, 2020, a significant improvement from a net cash outflow of HKD 13,929 million in the same period of 2019[20] - The company reported a net cash outflow from investing activities of HKD 1,738 million for the six months ended June 30, 2020, compared to HKD 7,362 million in the prior year, showing a reduction of approximately 76.4%[20] - Financing activities generated a net cash inflow of HKD 988 million for the six months ended June 30, 2020, down from HKD 3,534 million in the same period of 2019[20] Revenue Breakdown - Sales of scented candles significantly increased to HKD 78,166,000 for the six months ended June 30, 2020, compared to HKD 45,625,000 in the same period of 2019, representing a growth of 71.1%[27] - Revenue from the United States market reached HKD 135,164,000 for the six months ended June 30, 2020, up 60.1% from HKD 84,392,000 in the same period of 2019[35] - Sales of other products, primarily scented diffusers, increased by approximately HKD 20.3 million or 173.2% compared to the same period in 2019[71] Expenses - The total employee benefits expenses (excluding directors' remuneration) increased to HKD 19,457,000 for the six months ended June 30, 2020, up from HKD 17,784,000 in the same period of 2019, reflecting a rise of approximately 9.4%[44] - Sales and distribution expenses for the six months ended June 30, 2020, were approximately HKD 10.5 million, an increase of about HKD 2.2 million or 26.5% compared to HKD 8.3 million in 2019[76] - Administrative expenses for the same period were approximately HKD 20.4 million, an increase of about HKD 2.2 million or 12.1% compared to HKD 18.2 million in 2019[77] - Financing costs for the six months ended June 30, 2020, totaled HKD 1,451,000, an increase from HKD 1,238,000 in the same period of 2019[40] Shareholder Information - The company’s major shareholders include Mr. Wong Wai Kit and Mr. Wong Man Kit, each holding 58.5% of the issued shares through AVW International Limited[108] - As of June 30, 2020, AVW holds 643,500,000 shares, representing 58.5% of the total issued shares[111] - Huayi Si Enterprises Limited and its controlled entities collectively hold 181,500,000 shares, accounting for 16.5% of the total issued shares[111] Corporate Governance - An audit committee has been established, consisting of three independent non-executive directors, to oversee financial reporting and internal control systems[125] - The audit committee reviewed the unaudited consolidated results for the six months ended June 30, 2020, ensuring compliance with applicable accounting standards and regulations[125] - The board of directors includes both executive and independent non-executive members, ensuring a diverse governance structure[127]

Financial Performance - Revenue for the three months ended March 31, 2020, was HKD 78,811,000, an increase of 53.5% compared to HKD 51,352,000 for the same period in 2019[10] - Gross profit for the same period was HKD 24,715,000, representing a gross margin of 31.4%, up from HKD 13,318,000 in 2019[10] - Profit before tax was HKD 7,415,000, compared to a loss of HKD 402,000 in the previous year, indicating a significant turnaround[10] - Net profit attributable to owners of the company was HKD 5,978,000, compared to a loss of HKD 480,000 in the same quarter of 2019[10] - Basic and diluted earnings per share for the quarter were HKD 0.54, a recovery from a loss of HKD 0.04 per share in the prior year[10] - Total comprehensive income for the period was HKD 5,942,000, compared to a loss of HKD 543,000 in the same quarter of 2019[10] - The group generated a net profit of approximately HKD 6.0 million for the three months ended March 31, 2020, an increase of about HKD 6.5 million or 1,300% compared to a net loss of HKD 0.5 million in the same period of 2019[60] Revenue Breakdown - Total revenue for the three months ended March 31, 2020, was HKD 78,811,000, a 53.4% increase from HKD 51,352,000 for the same period in 2019[22] - Sales of scented candles reached HKD 41,565,000, up 37.4% from HKD 30,245,000 in the previous year[22] - Revenue from the United States was HKD 71,391,000, representing a 58.1% increase from HKD 45,180,000 in 2019[31] - Sales of scented candles increased by approximately HKD 11.3 million or 37.4% compared to the same period in 2019, reflecting a growing preference in the U.S. market for scented and colored candles[49] Expenses and Costs - Administrative expenses increased to HKD 10,618,000 from HKD 9,218,000, reflecting higher operational costs[10] - Financing costs rose to HKD 823,000 from HKD 585,000, indicating increased borrowing costs[10] - Total employee costs amounted to HKD 12.3 million for the three months ended March 31, 2020, compared to HKD 10.0 million in 2019, representing an increase of approximately 22.8%[48] - Selling and distribution expenses were approximately HKD 3.9 million, a decrease of about HKD 0.3 million or 7.1% compared to HKD 4.2 million in 2019[56] - Administrative expenses for the three months ended March 31, 2020, were approximately HKD 10.6 million, an increase of about HKD 1.4 million or 15.2% compared to HKD 9.2 million in the same period of 2019[57] - Financing costs for the three months ended March 31, 2020, were approximately HKD 823,000, an increase of about HKD 238,000 or 40.7% compared to HKD 585,000 in the same period of 2019[59] Other Income and Gains - The company reported other income of HKD 168,000, slightly down from HKD 177,000 in the previous year[10] - The company reported a net foreign exchange gain of HKD 175,000 for the three months ended March 31, 2020, compared to a gain of HKD 90,000 in the same period last year[34] - Bank interest income decreased to HKD 66,000 from HKD 161,000 year-on-year[33] - Other income for the period was approximately HKD 168,000, a decrease of about HKD 9,000 or 5.1% from HKD 177,000 in 2019, primarily due to reduced interest income from short-term bank deposits[55] Corporate Governance and Compliance - The company has complied with the corporate governance code as per GEM listing rules, ensuring high standards to protect shareholder interests[85] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the three months ending March 31, 2020, confirming compliance with applicable accounting standards[86] - The company is committed to enhancing corporate governance to increase shareholder value and protect their interests[85] Future Outlook and Strategy - The company continues to focus on expanding its candle product manufacturing and sales, with plans for market expansion in the upcoming quarters[14] - The management is closely monitoring the impact of COVID-19 on the business, confirming no significant adverse changes in financial or trade conditions as of the report date[51] - The company has established long-term relationships with customers and is confident in capturing further business opportunities and growth[51] Shareholder Information - Major shareholders included AVW International Limited, holding 643,500,000 shares, representing approximately 58.5% of the issued shares[72] - The board did not declare an interim dividend for the three months ended March 31, 2020[63] - The company has adopted a share option scheme on June 23, 2018, allowing for a maximum of 110,000,000 shares to be issued upon exercise of options, which represents 10% of the total shares issued as of the report date[77] - The share option scheme is effective for a period of 10 years, expiring on June 23, 2028, unless terminated earlier by the shareholders[76] Miscellaneous - There were no significant investments, acquisitions, or disposals of subsidiaries or capital assets during the three months ended March 31, 2020[61] - As of March 31, 2020, the company had no significant events occurring after the reporting period that would have a material impact on the group[62] - The company has not identified any violations of the trading standards by its directors for the three months ending March 31, 2020[82] - There were no significant contracts in which directors or their close associates had a material beneficial interest during the three months ended March 31, 2020[70] - As of March 31, 2020, there were no directors or major shareholders holding any interests in businesses that directly or indirectly compete with the company[80] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the reporting period[84] - The company has not disclosed any interests or short positions in shares or related securities that require disclosure under the Securities and Futures Ordinance as of March 31, 2020[75]

Financial Performance - The group's revenue for the year ended December 31, 2019, was approximately HKD 307.5 million, with a net profit of about HKD 24.7 million[17]. - For the year ended December 31, 2019, the revenue was approximately HKD 307.5 million, an increase of about HKD 92.1 million or 42.8% compared to 2018[23]. - The cost of sales for the same period was approximately HKD 216.3 million, an increase of about HKD 49.5 million or 29.7% compared to 2018[24]. - Gross profit for the year ended December 31, 2019, was approximately HKD 91.2 million, an increase of about HKD 42.6 million or 87.7% compared to 2018[25]. - The gross profit margin increased to approximately 29.7% for the year ended December 31, 2019, compared to 22.6% in 2018, primarily due to increased sales of scented candles[28]. - Net profit for the year ended December 31, 2019, was approximately HKD 24.7 million, an increase of about HKD 19.9 million or 414.6% compared to 2018[38]. - Administrative expenses for the year ended December 31, 2019, were approximately HKD 39.6 million, an increase of about HKD 7.3 million or 22.6% compared to 2018[31]. - The total assets as of December 31, 2019, were approximately HKD 230.2 million, an increase from approximately HKD 166.1 million in 2018[40]. - The total borrowings as of December 31, 2019, were approximately HKD 47.0 million, an increase from approximately HKD 33.4 million in 2018[40]. - The company did not recommend any dividend payment for the year ended December 31, 2019[39]. Market and Product Development - The sales of scented candles increased by approximately HKD 43.4 million or 40.9% compared to the same period in 2018, reflecting a growing preference in the US market for scented and colored candles[20]. - The group primarily manufactures and sells daily candles, scented candles, decorative candles, and other products such as aroma diffusers, mainly serving department store operators and procurement agents in the US and UK[19]. - The market for mid-to-high-end scented candles is expected to grow as the economies of the US and other developed countries continue to recover[19]. - The group is focused on expanding its product offerings in response to the increasing demand for aromatic and decorative candles[19]. - The group provides various services to customers, including product design, raw material selection, sample candle provision, and laboratory testing for product quality improvement[19]. Corporate Governance - The board of directors emphasizes the importance of maintaining high corporate governance standards to meet increasing regulatory requirements and shareholder expectations[71]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced composition[73]. - The company has complied with the GEM Listing Rules regarding the appointment of independent non-executive directors throughout the reporting period[76]. - The nomination committee was established on June 23, 2018, to regularly review the board's structure and assess the independence of non-executive directors[81]. - The company has implemented a diversity policy for the board, considering factors such as gender, age, and professional experience in director appointments[81]. - The board is responsible for leading and controlling the company, aiming to maximize long-term shareholder value while balancing shareholder interests[72]. - The company has a legal liability insurance plan for directors, reviewed annually to ensure adequate protection against potential liabilities[79]. - The independent non-executive directors have confirmed their independence and will notify the exchange of any changes affecting their independence[76]. - The company has adopted a nomination policy outlining the criteria and procedures for appointing and reappointing directors[83]. - The board delegates daily operational responsibilities to the management team while retaining oversight of major investments and governance practices[79]. Risk Management and Internal Controls - The company has implemented a robust internal control and risk management system, deemed effective by the board[119]. - The external auditor's fees for audit and non-audit services were disclosed, ensuring transparency in financial reporting[109]. - The company has engaged external consultants for an independent internal control review, enhancing governance practices[118]. - The company has no immediate need for an internal audit function, reflecting confidence in existing controls[118]. Employee and Operational Insights - As of December 31, 2019, the group employed approximately 1,050 employees, an increase from about 830 employees in 2018[52]. - The executive directors, including Mr. Huang Weijie and Mr. Huang Wenzhe, have over 20 years of experience in candle manufacturing and are responsible for the company's strategic planning and operational oversight[130][131]. - The non-executive director, Ms. Wang Fang, provides financial advice to the board and has a background in accounting and finance[132]. - The independent non-executive director, Mr. Chen Changda, has extensive experience in tax advisory and has served in various capacities within the tax bureau for over 32 years[135]. Shareholder Communication and Rights - The company has established a shareholder communication policy to maintain ongoing dialogue with shareholders and investors, ensuring timely access to all publicly available information[122]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting within two months of the request[124]. - Shareholders can send inquiries to the board in writing or via email to obtain information about the company[125]. - The company encourages shareholders to actively participate in its affairs and provides resources for them to stay informed through its website[122]. Future Outlook and Strategic Plans - The group aims to enhance its market presence and social influence following its successful listing on the GEM of the Hong Kong Stock Exchange on July 19, 2018[18]. - The group remains optimistic about future growth and plans to implement proactive marketing strategies and invest more resources in product development[55]. - The company faces various risks and uncertainties, which are discussed in detail in the annual report[152]. - The company’s financial position and operational performance are regularly reviewed to ensure sustainable growth and shareholder value[156].

Financial Performance - Total revenue for the nine months ended September 30, 2019, was HKD 212,552,000, an increase of 36% compared to HKD 155,958,000 for the same period in 2018[5] - Gross profit for the nine months ended September 30, 2019, was HKD 59,807,000, representing a gross margin of approximately 28.1%, compared to HKD 34,142,000 and a gross margin of 21.9% in 2018[5] - The net profit for the nine months ended September 30, 2019, was HKD 9,764,000, a significant increase of 159% from HKD 3,763,000 in the same period of 2018[7] - Basic earnings per share for the nine months ended September 30, 2019, was HKD 0.89, compared to HKD 0.34 for the same period in 2018, reflecting a growth of 161%[7] - The company reported a total comprehensive income of HKD 9,554,000 for the nine months ended September 30, 2019, compared to HKD 3,497,000 in 2018, indicating a growth of 173%[7] - Revenue for the nine months ended September 30, 2019, was approximately HKD 212.6 million, an increase of about HKD 56.6 million or 36.3% compared to HKD 156.0 million for the same period in 2018[71] - Gross profit for the nine months ended September 30, 2019, was approximately HKD 59.8 million, an increase of about HKD 25.7 million or 75.4% compared to HKD 34.1 million for the same period in 2018[74] - Net profit for the nine months ended September 30, 2019, was approximately HKD 9.8 million, an increase of about HKD 6.0 million or 157.9% compared to HKD 3.8 million for the same period in 2018[82] Expenses - Sales and distribution expenses for the nine months ended September 30, 2019, increased to HKD 15,397,000 from HKD 4,461,000 in 2018, reflecting a rise of 246%[5] - Administrative expenses for the nine months ended September 30, 2019, were HKD 29,921,000, compared to HKD 22,422,000 in 2018, marking an increase of 33%[5] - The financing costs for the nine months ended September 30, 2019, totaled HKD 1,993,000, compared to HKD 1,439,000 for the same period in 2018[52] - The company’s total depreciation expense for the nine months ended September 30, 2019, was HKD 2,030,000, compared to HKD 1,727,000 for the same period in 2018, reflecting an increase of 17.5%[59] - The deferred tax expense for the nine months ended September 30, 2019, was HKD 3,508,000, compared to HKD 1,487,000 for the same period in 2018, showing a significant increase of 136.0%[7] Market Performance - Revenue from the US market was HKD 157,857,000 for the nine months ended September 30, 2019, representing a 57.1% increase from HKD 100,493,000 in the same period of 2018[47] - The revenue from the UK market was HKD 44,120,000 for the nine months ended September 30, 2019, an increase of 22.3% from HKD 36,068,000 in the same period of 2018[47] - The sales of scented candles reached HKD 99,528,000 for the nine months ended September 30, 2019, up 28.6% from HKD 77,424,000 in the same period of 2018[38] - The sales volume of scented candles increased by approximately HKD 22.1 million or 28.6% compared to the same period in 2018, indicating a growing preference in the U.S. market for scented and colored candles[69] - The company’s total revenue from the sale of candles is expected to benefit from the increasing demand for high-end scented candles in developed markets[69] Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15 during the nine months ended September 30, 2019[115] - An audit committee has been established in accordance with GEM Listing Rules and consists of three independent non-executive directors, responsible for overseeing financial reporting and internal control systems[117] - The company has confirmed compliance with the prescribed trading standards for directors as per GEM Listing Rules during the nine months ended September 30, 2019[113] - The compliance advisor, Tian Cai Capital International Limited, has no interests related to the company that require disclosure under GEM Listing Rules[112] - The company is committed to high levels of corporate governance to protect shareholder interests and enhance corporate value[115] Shareholder Information - AVW International Limited holds 643,500,000 shares, representing 58.5% of the total issued shares[97] - Huayi Si Enterprises Limited and its controlled entities collectively hold 181,500,000 shares, accounting for 16.5% of the total issued shares[97] - The company has not made any arrangements for directors to acquire shares or debentures of the company or its subsidiaries as of September 30, 2019[93] - No directors or their close associates had a significant beneficial interest in any contracts that are material to the group's business during the nine months ended September 30, 2019[94] - The company’s average weighted number of ordinary shares for the calculation of basic earnings per share remained at 1,100,000,000 for both periods under review[64] Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[13] - The company continues to monitor market conditions for potential expansion and acquisition opportunities[96] - The company has established long-term stable relationships with customers and is confident in obtaining further business opportunities and growth[70] Accounting Policies - The functional currency of the group is USD, while the consolidated financial statements are presented in HKD, as deemed more beneficial for users of the financial statements[14] - The group has adopted new Hong Kong Financial Reporting Standards, including HKFRS 16 on leases, which may lead to changes in measurement, presentation, and disclosure[17][18] - The group will not reassess contracts identified as leases prior to the initial application date of HKFRS 16, maintaining consistency in accounting treatment[19][30] - Right-of-use assets are recognized at the lease commencement date and measured at cost less accumulated depreciation and impairment losses[21] - Lease liabilities are recognized at the present value of lease payments not yet paid at the lease commencement date[27] - The group will remeasure lease liabilities when there are changes in lease terms or assessments of purchase options[30] - The cost of right-of-use assets includes initial direct costs and estimated costs for dismantling and restoring the asset location[22] - The group will apply the modified retrospective approach for the initial application of HKFRS 16, recognizing cumulative effects in retained earnings without restating comparative information[18] - The group’s accounting policies remain consistent with those used in the previous financial year, except for the adoption of new standards[17] - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and relevant regulations[14]

Financial Performance - Total revenue for the six months ended June 30, 2019, was HKD 99,679,000, an increase from HKD 87,853,000 for the same period in 2018, representing a growth of 13.5%[14] - Gross profit for the same period was HKD 25,756,000, compared to HKD 17,626,000 in 2018, reflecting a significant increase of 46.2%[14] - The company reported a net loss attributable to owners of HKD 1,953,000 for the six months ended June 30, 2019, compared to a profit of HKD 1,002,000 in 2018, indicating a shift in performance[17] - Basic loss per share for the six months was HKD (0.18), compared to earnings of HKD 0.12 per share in the previous year[17] - The total comprehensive loss for the period was HKD 2,134,000, compared to a comprehensive income of HKD 1,150,000 in the same period last year[17] Expenses - Selling and distribution expenses increased to HKD 8,338,000 for the six months ended June 30, 2019, from HKD 2,460,000 in 2018, marking a rise of 238.5%[14] - Administrative expenses rose to HKD 18,234,000 for the six months ended June 30, 2019, compared to HKD 14,242,000 in 2018, an increase of 28.0%[14] - The company incurred financing costs of HKD 1,238 million for the six months ended June 30, 2019, compared to HKD 952 million for the same period in 2018, representing a 30% increase[74] - The company reported a total employee cost of HKD 22,477 million for the six months ended June 30, 2019, up from HKD 19,114 million in the same period of 2018, indicating a 17% increase[80] Assets and Liabilities - Non-current assets increased to HKD 48,464 million as of June 30, 2019, compared to HKD 42,760 million as of December 31, 2018, representing a growth of 13.3%[19] - Current assets totaled HKD 129,985 million, up from HKD 123,332 million, reflecting a 5.4% increase year-over-year[19] - Total liabilities increased to HKD 63,878 million as of June 30, 2019, compared to HKD 50,467 million as of December 31, 2018, marking a significant rise of 26.6%[19] - The company's cash and cash equivalents decreased to HKD 37,188 million from HKD 54,945 million, a decline of 32.5%[30] - Current liabilities rose to HKD 63,878 million, an increase of 26.6% from HKD 50,467 million in the previous year[19] Cash Flow - The net cash used in operating activities was HKD (13,929) million for the six months ended June 30, 2019, compared to HKD (8,992) million for the same period in 2018, indicating a decline in cash flow[28] - Financing activities generated a net cash inflow of HKD 3,534 million, down from HKD 5,340 million in the previous year[30] - The company reported a net cash outflow from investing activities of HKD (7,362) million for the six months ended June 30, 2019, compared to a cash inflow of HKD 1,992 million in the same period of 2018[28] Market Performance - Revenue from the US market for the six months ended June 30, 2019, was HKD 84,392,000, a significant increase from HKD 60,864,000 in the same period of 2018, representing a growth of about 38.7%[67] - The company operates primarily in the US and UK markets, with external customer revenue from the UK market decreasing to HKD 8,180,000 for the six months ended June 30, 2019, down from HKD 13,724,000 in the same period of 2018[67] Corporate Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the six months ended June 30, 2019, ensuring compliance with applicable accounting standards and regulations[188] - The company is committed to high levels of corporate governance to protect shareholder interests and enhance corporate value, having complied with the corporate governance code as of June 30, 2019[185] Shareholder Information - As of June 30, 2019, AVW International Limited holds 643,500,000 shares, representing 58.5% of the total issued shares[168] - Huayi Si Enterprise Limited and its controlled entities collectively hold 181,500,000 shares, accounting for 16.5% of the total issued shares[168] - The company has adopted a share option scheme on June 23, 2018, allowing for the issuance of up to 30% of the total issued shares as options[176] Future Plans - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming periods[3]

Financial Performance - Total revenue for the first quarter of 2019 was HKD 51,352,000, representing a 28% increase from HKD 40,139,000 in the same period of 2018[5] - Gross profit for the first quarter was HKD 13,318,000, compared to HKD 6,824,000 in the previous year, indicating a significant improvement[5] - The company reported a loss of HKD 480,000 for the quarter, a reduction from a loss of HKD 2,125,000 in Q1 2018, reflecting better operational efficiency[5] - The basic loss per share improved to HKD 0.04 from HKD 0.26 year-over-year[5] - Total comprehensive expenses for the quarter amounted to HKD 543,000, down from HKD 2,233,000 in the same quarter of the previous year[5] - The cost of sales increased to HKD 38,034,000, up from HKD 33,315,000, indicating rising production costs[5] - Administrative expenses for the quarter were HKD 9,218,000, compared to HKD 6,553,000 in the prior year, showing an increase in operational costs[5] - Sales of scented candles reached HKD 30,245,000, up 69.9% from HKD 17,801,000 in the previous year[25] - The company reported a decrease in sales of everyday candles to HKD 12,869,000, down 14.7% from HKD 15,085,000 in the prior year[25] - The revenue from the United States and the United Kingdom markets combined was HKD 45,180,000, compared to HKD 25,122,000 in the same period last year, representing an increase of 79.9%[32] - For the three months ended March 31, 2019, the company reported a loss attributable to owners of the company of HKD (480) thousand, compared to a loss of HKD (2,125) thousand for the same period in 2018, representing a significant improvement[45] - The company’s total employee costs for the three months ended March 31, 2019, amounted to HKD 11,377 thousand, an increase from HKD 8,790 thousand in the same period of 2018, reflecting a rise in salaries and bonuses[43] - The company incurred financing costs of HKD 585 thousand for the three months ended March 31, 2019, compared to HKD 448 thousand in the same period of 2018, showing an increase in borrowing costs[37] - The net exchange gain for the three months ended March 31, 2019, was HKD 90 thousand, compared to a loss of HKD (23) thousand in the same period of 2018, indicating improved currency management[35] - The company’s total depreciation expense for the three months ended March 31, 2019, was HKD 657 thousand, slightly up from HKD 627 thousand in the same period of 2018[43] - The company’s interest income from bank deposits for the three months ended March 31, 2019, was HKD 161 thousand, compared to HKD 30 thousand in the same period of 2018, indicating improved cash management[34] - The company’s deferred tax expense for the three months ended March 31, 2019, was HKD (78) thousand, compared to a credit of HKD 20 thousand in the same period of 2018, reflecting changes in tax regulations[39] - Revenue for the three months ended March 31, 2019, was approximately HKD 51.3 million, an increase of about HKD 11.2 million or 27.9% compared to HKD 40.1 million for the same period in 2018[54] - Gross profit for the same period was approximately HKD 13.3 million, an increase of about HKD 6.5 million or 95.6% compared to HKD 6.8 million in 2018[55] - Gross margin increased to approximately 25.9% for the three months ended March 31, 2019, compared to 17.0% for the same period in 2018[55] - Other income for the three months ended March 31, 2019, was approximately HKD 177,000, an increase of about HKD 147,000 or 490% compared to HKD 30,000 in 2018[58] - Sales and distribution expenses for the same period were approximately HKD 4.2 million, an increase of about HKD 2.9 million or 223.1% compared to HKD 1.3 million in 2018[59] - Administrative expenses for the three months ended March 31, 2019, were approximately HKD 9.2 million, an increase of about HKD 2.6 million or 39.4% compared to HKD 6.6 million in 2018[60] - Net loss for the three months ended March 31, 2019, was approximately HKD 0.5 million, a decrease of about HKD 1.6 million or 76.2% compared to a net loss of HKD 2.1 million in 2018[65] Strategic Initiatives and Market Position - The company has not reported any new product launches or technological advancements during this quarter[5] - There are no indications of market expansion or acquisitions mentioned in the current report[5] - The company continues to focus on its core business of manufacturing and selling candle products, with no new strategic initiatives disclosed[13] - The company did not engage in any significant investments, acquisitions, or disposals during the reporting period[66] - The company has established long-term relationships with customers and is confident in obtaining further business opportunities and growth[53] - The company has not disclosed any significant new strategies or market expansions in the provided documents[87] Shareholder Information - As of March 31, 2019, AVW holds a beneficial interest of 643,500,000 shares, representing 58.5% of the total issued shares[82] - Huayi Si Enterprises Limited and its controlled entities collectively hold 181,500,000 shares, accounting for 16.5% of the total issued shares[82] - The company adopted a share option scheme on June 23, 2018, allowing for the issuance of shares up to 30% of the total issued shares upon exercise of options[90] - The maximum number of shares that can be issued under the share option scheme is capped at 110,000,000 shares, equivalent to 10% of the total issued shares as of the report date[91] - The exercise price for each share option will be determined by the board, with a minimum set at the higher of the closing price on the date of grant or the average closing price over the preceding five trading days[93] - The share option scheme is effective for a period of 10 years, expiring on June 23, 2028[91] - No directors or major shareholders have any interests in businesses that directly or indirectly compete with the group's operations as of March 31, 2019[94] Compliance and Governance - The company did not declare or propose any dividends for the three months ended March 31, 2019, and 2018[44] - The company did not declare an interim dividend for the three months ended March 31, 2019[68] - The company has adopted the GEM Listing Rules regarding the trading standards for directors, confirming compliance for the three months ending March 31, 2019[96] - No shares of the company were purchased, sold, or redeemed by the company or its subsidiaries during the reporting period[99] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated results for the three months ending March 31, 2019, ensuring compliance with applicable accounting standards and GEM Listing Rules[101] - No significant contracts were established by directors or their close associates that would have a substantial impact on the group's business as of March 31, 2019[78] - There were no interests or short positions disclosed by any individuals or corporations, excluding directors and key executives, as of March 31, 2019[89]

Financial Performance - For the year ended December 31, 2018, the group's revenue was approximately HKD 215.4 million, with a gross profit of about HKD 4.8 million[12]. - Revenue for the year ended December 31, 2018, was approximately HKD 215.4 million, an increase of about HKD 52.9 million or 32.6% compared to 2017[19]. - Cost of sales for the same period was approximately HKD 166.8 million, an increase of about HKD 45.4 million or 37.4% year-on-year[20]. - Gross profit was approximately HKD 48.6 million, an increase of about HKD 7.5 million or 18.2% compared to the previous year[21]. - Gross margin decreased from approximately 25.3% in 2017 to about 22.6% in 2018 due to increased sales of lower-margin products[24]. - Other income increased to approximately HKD 0.9 million, a rise of about 200% from HKD 0.3 million in 2017[25]. - Net profit for the year was approximately HKD 4.8 million, an increase of about HKD 15.9 million compared to a net loss of HKD 11.1 million in 2017[32]. - Total assets as of December 31, 2018, were approximately HKD 166.1 million, up from HKD 105.4 million in 2017[34]. - The current ratio improved to approximately 2.4 times as of December 31, 2018, compared to 1.2 times in 2017[34]. Market and Sales - The sales volume of scented candles increased nearly twofold compared to 2017, driven by new customers contributing approximately HKD 36.0 million, accounting for about 34% of the 2018 scented candle sales[17]. - The expected import value of candle products from Vietnam to the US and UK is projected to reach approximately USD 195.6 million and USD 15.6 million, respectively[14]. - The market trend shows a growing preference for scented and colored candles, driven by the economic recovery in developed countries[15]. - A US market consulting company has been engaged to enhance sales through its network and assist in identifying recent developments among competitors in the US market[17]. - The group has established long-term relationships with customers and is confident in capturing further business opportunities and growth due to its experienced management team[18]. Corporate Governance - The board of directors emphasizes the importance of maintaining high corporate governance standards to meet regulatory requirements and shareholder expectations[67]. - The company has adopted the corporate governance code as per GEM listing rules since its listing date, ensuring compliance throughout the reporting period[72]. - The board is responsible for leading and controlling the company, aiming to maximize long-term shareholder value while balancing interests[68]. - The company has purchased liability insurance for directors and senior management to protect against potential legal risks[75]. - The company conducts regular reviews of its corporate governance practices to enhance standards and adapt to evolving regulatory requirements[67]. Board Structure and Committees - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring independent oversight[69]. - The Nomination Committee consists of three independent non-executive directors, including Mr. Chan Cheung Tat, Mr. Yu Pui Hang, and Mr. Ho Chi Wai, with Mr. Ho serving as the chairman[85]. - The Remuneration Committee was established on June 23, 2018, to review and recommend overall remuneration policies for directors and senior management, ensuring no director determines their own remuneration[90]. - The Audit Committee held five meetings during the relevant period, focusing on appointing external auditors and reviewing financial statements for the year ended December 31, 2018[95]. - The company evaluates candidates for the board based on criteria such as diversity, experience, and independence, ensuring a comprehensive assessment process[84]. Risk Management - The group has identified several risks, including raw material price fluctuations and reliance on key management personnel, which could negatively impact operations and profitability[49]. - The board reviewed the effectiveness of the internal control and risk management systems, concluding that they are effective and do not show significant deficiencies[119]. - The company has engaged external consultants to conduct an independent internal control review for the year ended December 31, 2018[118]. Employee Relations - The company emphasizes the importance of employee relations and provides good benefits and ongoing professional training to maintain strong customer relationships[180]. - As of December 31, 2018, the group employed approximately 830 employees, an increase from about 760 employees in 2017[47]. Shareholder Communication - The board has established a shareholder communication policy to ensure timely access to public information, including financial reports[122]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within two months of submission[124]. - Shareholders can send inquiries to the board in writing or via email to obtain information about the company[125]. Financial Commitments and Utilization - The net proceeds from the IPO amounted to approximately HKD 44.5 million, which was lower than the expected net proceeds of about HKD 50.5 million[51]. - The group planned to allocate approximately HKD 6.2 million for upgrading existing production equipment, but no funds were utilized for this purpose by December 31, 2018[57]. - The group has repaid approximately HKD 2.9 million in bank loans in Hong Kong and Vietnam, along with HKD 4.0 million in overdrafts[62]. - The group allocated about HKD 2.0 million for the installation of an enterprise resource planning system, with only HKD 0.1 million spent by December 31, 2018[61]. Donations and Community Engagement - The group made donations amounting to HKD 63,000 during the year, an increase from HKD 7,000 in 2017[171]. - The company has a community talks and services working group member as part of its governance structure[139].