Financial Performance - For the six months ended June 30, 2022, the company reported revenue of HKD 339,305 thousand, a slight increase from HKD 339,042 thousand in the same period of 2021[11]. - Gross profit for the same period was HKD 53,258 thousand, down from HKD 67,699 thousand in 2021, indicating a decrease of approximately 21.4%[11]. - The net profit attributable to the owners of the company for the six months ended June 30, 2022, was HKD 19,439 thousand, a decrease of 41.5% compared to HKD 33,330 thousand in 2021[11]. - The company reported a basic and diluted earnings per share of HKD 1.77 for the six months ended June 30, 2022, down from HKD 3.03 in the same period of 2021[11]. - The total income tax expense for the six months ended June 30, 2022, was HKD 4,459,000, down from HKD 7,047,000 in the same period of 2021, representing a reduction of approximately 37%[7]. - The company's total employee costs for the six months ended June 30, 2022, were HKD 34,623,000, down 18% from HKD 42,336,000 in the same period of 2021[56]. - The company reported a decrease in the remuneration of directors and senior management, totaling HKD 12,439,000 for the six months ended June 30, 2022, compared to HKD 16,281,000 in the same period of 2021[58]. - Net profit for the six months ended June 30, 2022, was approximately HKD 37.5 million, a decrease of approximately HKD 13.9 million or 27.0% compared to the same period in 2021[96]. Assets and Liabilities - The total assets of the company as of June 30, 2022, amounted to HKD 519,283 thousand, an increase from HKD 482,983 thousand as of December 31, 2021[14]. - Current liabilities decreased to HKD 123,959 thousand from HKD 136,186 thousand, reflecting a reduction of approximately 9.0%[14]. - The company’s total non-current assets increased to HKD 140,432 thousand from HKD 116,185 thousand, indicating a growth of approximately 20.8%[14]. - Total non-current liabilities increased to HKD 27,589 million as of June 30, 2022, compared to HKD 16,340 million as of December 31, 2021, reflecting a growth of 68.5%[16]. - The company’s total liabilities decreased slightly to HKD 151,548 million as of June 30, 2022, from HKD 152,526 million as of December 31, 2021[16]. - Total assets increased to HKD 367,735 million as of June 30, 2022, up from HKD 330,457 million as of December 31, 2021, representing an increase of 11.3%[16]. Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2022, was HKD 18,034 million, a significant increase from HKD 1,957 million for the same period in 2021[21]. - The company reported a net cash outflow from investing activities of HKD 32,992 million for the six months ended June 30, 2022, compared to HKD 18,101 million in the previous year[21]. - Financing activities generated a net cash inflow of HKD 16,232 million for the six months ended June 30, 2022, compared to HKD 4,733 million in the same period of 2021[21]. - Cash and cash equivalents increased to HKD 139,075 million as of June 30, 2022, compared to HKD 96,972 million as of June 30, 2021, marking a growth of 43.2%[21]. Market and Product Development - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[11]. - The company continues to focus on improving operational efficiency and exploring strategic partnerships to enhance market presence[11]. - The company is focused on expanding its market presence and enhancing its product offerings, although specific new products or technologies were not detailed in the report[24]. - The company aims to capture the rapid growth of candle products, particularly in the U.S. market, by collaborating with sales representatives since 2018[86]. - Sales of scented candles, the group's best-selling product, increased by approximately HKD 22.2 million or 9.7% compared to the same period in 2021[89]. Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules, ensuring high standards to protect shareholder interests[138]. - The audit committee has been established in accordance with GEM Listing Rules and consists of three independent non-executive directors[140]. - The audit committee reviewed the unaudited consolidated performance for the six months ended June 30, 2022, and confirmed compliance with applicable accounting standards and legal requirements[140]. - The report for the six months ended June 30, 2022, has been reviewed by the audit committee[141]. - The board of directors includes the executive chairman and CEO, along with three independent non-executive directors[142]. Shareholder Information - As of June 30, 2022, the major shareholders included AVW International Limited, holding 58.5% of the issued shares[121]. - As of June 30, 2022, the company had a total of 1,100,000,000 shares issued, with major shareholders holding significant stakes: Ms. Zheng Xiaochun at 16.5% and Ms. Rong Minli at 58.5%[128]. - The company has adopted a share option scheme since June 23, 2018, allowing for the issuance of options up to a maximum of 30% of the total issued shares, subject to shareholder approval[131]. - The maximum number of shares that can be issued upon the exercise of all options granted 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[132]. - No share options have been granted under the share option scheme since its adoption[133]. Operational Challenges - The company continues to face uncertainties in its operating environment due to the ongoing impact of the COVID-19 pandemic[87].

Financial Performance - The group's revenue for the year ended December 31, 2021, was approximately HKD 815.1 million, with a net profit of about HKD 106.2 million[12]. - For the year ended December 31, 2021, the group's revenue was approximately HKD 815.1 million, an increase of about HKD 259.2 million or 46.6% compared to HKD 555.9 million in the same period of 2020[23]. - The gross profit for the year ended December 31, 2021, was approximately HKD 269.9 million, an increase of about HKD 63.3 million or 30.6% from HKD 206.6 million in 2020[24]. - The net profit for the year ended December 31, 2021, was approximately HKD 106.2 million, an increase of about HKD 15.8 million or 17.5% compared to HKD 90.4 million in 2020[33]. - The gross profit margin decreased to approximately 33.1% for the year ended December 31, 2021, down from 37.2% in 2020, primarily due to a 37.0% increase in wax costs[25][26]. - The total assets as of December 31, 2021, were approximately HKD 483.0 million, an increase from HKD 353.7 million in 2020[37]. - The total borrowings as of December 31, 2021, amounted to approximately HKD 62.6 million, up from HKD 29.7 million in 2020[37]. - The current ratio as of December 31, 2021, was approximately 2.7 times, compared to 2.4 times as of December 31, 2020[37]. Sales and Market Trends - Sales of scented candles increased by approximately HKD 230.2 million or 67.8% compared to the same period in 2020, reflecting a growing preference in the US market for scented and colored candles[14]. - Sales of daily-use candles also saw growth, increasing by approximately HKD 48.3 million or 49.2% compared to the same period in 2020[15]. - The company aims to provide mid-to-high-end candle products in overseas markets, primarily targeting the US and UK markets[14]. - The company has established contracts with sales representatives since 2018 to capture the rapid growth of candle products, particularly in the US market[15]. - The company is confident in its future business development due to the increasing demand for scented candles[14]. Operational and Administrative Expenses - The group incurred selling and distribution expenses of approximately HKD 37.1 million for the year ended December 31, 2021, an increase of about HKD 8.8 million or 31.1% from HKD 28.3 million in 2020[29]. - Administrative expenses for the year ended December 31, 2021, were approximately HKD 96.6 million, an increase of about HKD 31.5 million or 48.4% from HKD 65.1 million in 2020[30]. - Financing costs for the year ended December 31, 2021, were approximately HKD 4.9 million, an increase of about HKD 0.9 million or 22.5% from HKD 4.0 million in 2020[31]. Corporate Governance - The board consists of two executive directors and three independent non-executive directors, maintaining a balanced composition[71]. - The company has adopted a diversity policy for the board, considering factors such as gender, age, cultural background, and professional experience in director appointments[79]. - The nomination committee is responsible for reviewing the structure and composition of the board and assessing the independence of independent non-executive directors[79]. - The company has established a legal liability insurance plan for directors, which is reviewed at least annually to ensure adequate protection[77]. - The board is committed to maintaining high standards of corporate governance and compliance with increasingly complex regulatory requirements[69]. - The company has complied with all applicable provisions of the corporate governance code during the relevant period[70]. Shareholder Communication and Engagement - The board has established a shareholder communication policy to ensure timely access to public information, including financial reports[127]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within two months of submission[129]. - Shareholders can send inquiries to the board in writing or via email for information regarding the company[130]. - The company encourages active participation from shareholders and investors through its website for the latest updates[127]. Risk Management and Internal Control - The board conducted a review of the effectiveness of the internal control and risk management systems for the year ended December 31, 2021, covering financial, operational, compliance procedures, and risk management functions[122]. - The company has not established an internal audit department as the board believes there is no immediate need, but will consider establishing one if necessary[122]. - The group engaged external professional consultants to conduct an independent internal control review for the year ended December 31, 2021[122]. - The board is committed to enhancing corporate governance standards and maintaining an effective internal control system to safeguard the group's assets and protect shareholder interests[123]. Environmental and Social Responsibility - The company is committed to enhancing environmental protection and minimizing its operational impact on the environment[180]. - The group made donations amounting to HKD 195,000 during the year, compared to HKD 147,000 in 2020[174]. - The company has complied with all relevant laws and regulations during the year ended December 31, 2021, with no significant violations reported[182]. Future Plans and Investments - The group plans to invest more resources in product development and implement proactive marketing strategies to address future challenges[54]. - The group completed the construction of a new production facility in Vietnam with a total construction cost of approximately VND 106.55 billion (approximately HKD 36.5 million) by December 31, 2021[51].

Financial Performance - Revenue for the nine months ended September 30, 2021, was HKD 588.6 million, an increase from HKD 325.1 million for the same period in 2020, representing an 80.9% growth[6] - Gross profit for the nine months ended September 30, 2021, was HKD 193.9 million, compared to HKD 116.1 million for the same period in 2020, reflecting a 66.8% increase[6] - Net profit attributable to owners for the nine months ended September 30, 2021, was HKD 76.3 million, up from HKD 50.9 million in the same period of 2020, marking a 50.0% increase[6] - Basic and diluted earnings per share for the nine months ended September 30, 2021, were HKD 6.93, compared to HKD 4.62 for the same period in 2020, indicating a 49.9% increase[6] - The company reported a total comprehensive income of HKD 76.2 million for the nine months ended September 30, 2021, compared to HKD 50.9 million for the same period in 2020[6] - The company experienced a significant increase in sales costs, which rose to HKD 394.6 million for the nine months ended September 30, 2021, from HKD 209.0 million in the same period of 2020[6] - Other income for the nine months ended September 30, 2021, was HKD 1.2 million, compared to HKD 1.0 million for the same period in 2020[6] - The company’s administrative expenses for the nine months ended September 30, 2021, were HKD 69.4 million, an increase from HKD 32.0 million in the same period of 2020[6] - The company incurred a tax expense of HKD 16,975 thousand for the nine months ended September 30, 2021, compared to HKD 11,031 thousand for the same period in 2020, representing a 53.1% increase[7] Revenue Breakdown - Revenue from candle products for the nine months ended September 30, 2021, was HKD 588,553,000, with significant contributions from daily candles (HKD 119,225,000) and scented candles (HKD 398,581,000)[17] - Revenue from the US market for the nine months ended September 30, 2021, reached HKD 532,484,000, up 84.4% from HKD 288,972,000 in the same period of 2020[27] - Revenue from the UK market for the nine months ended September 30, 2021, was HKD 49,023,000, an increase of 60% compared to HKD 30,654,000 in the same period of 2020[27] Costs and Expenses - The total employee costs for the nine months ended September 30, 2021, amounted to HKD 69,876 thousand, up from HKD 42,105 thousand in the same period of 2020, indicating a significant increase in workforce expenses[39] - The sales and distribution expenses increased by approximately HKD 8.5 million or 46.4% to about HKD 26.8 million, primarily due to increased freight and customs expenses[59] - Administrative expenses rose by approximately HKD 37.4 million or 116.9% to about HKD 69.4 million, mainly due to increased salaries and allowances[60] - Financing costs increased by approximately HKD 1.1 million or 44.0% to about HKD 3.6 million, attributed to higher bank borrowings[61] Market Strategy and Future Outlook - The company plans to continue expanding its market presence and investing in new product development to sustain growth[10] - The company’s management expressed confidence in future business development due to increasing consumer demand for scented candles[50] Shareholder Information - As of September 30, 2021, AVW International Limited holds 643,500,000 shares, representing 58.5% of the total issued shares[82] - Huayi Si Enterprise Limited and its controlled entities collectively hold 181,500,000 shares, accounting for 16.5% of the total issued shares[82] - The company did not declare or propose any dividends for the nine months ended September 30, 2021[46] - The company did not declare an interim dividend for the nine months ended September 30, 2021[69] Corporate Governance - The company has complied with the corporate governance code as per GEM listing rules during the nine months ending September 30, 2021[100] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the nine months ending September 30, 2021, ensuring compliance with applicable accounting standards[102] Other Information - The company has not adopted the new or revised Hong Kong Financial Reporting Standards that are expected to be effective from January 1, 2023, and believes they will not have a significant impact on the financial statements[14] - The company has not disclosed any new product developments or market expansion strategies in the provided documents[80] - There are no reported mergers or acquisitions during the nine months ending September 30, 2021[78] - The company has not indicated any future performance guidance or outlook in the provided documents[80]

Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 339,042,000, an increase from HKD 148,307,000 in the same period of 2020, representing a growth of 128.5%[8] - Gross profit for the same period was HKD 115,241,000, compared to HKD 48,878,000 in 2020, reflecting a gross margin improvement[8] - The net profit attributable to the owners of the company for the six months ended June 30, 2021, was HKD 33,330,000, up from HKD 6,367,000 in 2020, indicating a significant increase of 424.5%[8] - Basic earnings per share for the period was HKD 3.03, compared to HKD 0.58 in the previous year, marking a substantial increase[8] - The company reported a total comprehensive income of HKD 51,368 million for the six months ended June 30, 2021, compared to HKD 146,153 million for the same period in 2020, indicating a decrease of 64.9%[14] - Net profit for the six months ended June 30, 2021, was approximately HKD 51.4 million, an increase of about HKD 39.1 million or 317.9% compared to HKD 12.3 million in 2020[81] Assets and Liabilities - Total assets as of June 30, 2021, amounted to HKD 446,010,000, up from HKD 353,742,000 as of December 31, 2020, showing a growth of 26.1%[10] - Current assets increased to HKD 369,396,000 from HKD 295,751,000, representing a rise of 25%[10] - Total liabilities increased to HKD 170,382 million as of June 30, 2021, compared to HKD 129,482 million as of December 31, 2020, representing a growth of 31.5%[11] - Net assets rose to HKD 275,628 million as of June 30, 2021, up from HKD 224,260 million at the end of 2020, indicating a 22.9% increase[11] - The company’s total non-current liabilities increased to HKD 13,857 million as of June 30, 2021, up from HKD 7,282 million at the end of 2020, representing an increase of 90.5%[11] Cash Flow - Cash generated from operating activities decreased to HKD 1,957 million for the six months ended June 30, 2021, down from HKD 7,405 million in the same period of 2020, reflecting a decline of 73.6%[16] - Net cash used in investing activities amounted to HKD 18,101 million for the first half of 2021, compared to HKD 1,738 million in the prior year, showing a significant increase in investment outflows[16] - Net cash generated from financing activities was HKD 4,733 million for the six months ended June 30, 2021, compared to HKD 988 million in the same period of 2020, marking a substantial increase[16] Market and Sales - Sales of scented candles reached HKD 227,955 thousand for the six months ended June 30, 2021, compared to HKD 78,166 thousand in the same period of 2020, marking an increase of 191.5%[24] - Revenue from the United States for the six months ended June 30, 2021, was HKD 323,404 thousand, up from HKD 135,164 thousand in the same period of 2020, reflecting a growth of 139.5%[32] - The company operates primarily in the United States and the United Kingdom, with significant revenue contributions from these regions[30] Expenses - The company reported a significant reduction in administrative expenses, decreasing from HKD 34,864,000 in 2020 to HKD 17,039,000 in 2021, a reduction of 51.1%[8] - The total employee benefits expenses (excluding directors' remuneration) for the six months ended June 30, 2021, amounted to HKD 24,082,000, up from HKD 11,110,000 in the same period of 2020, indicating a rise of approximately 116%[41] - Selling and distribution expenses for the period were approximately HKD 17.0 million, an increase of about HKD 6.5 million or 61.9% compared to HKD 10.5 million in 2020[76] - Administrative expenses for the period were approximately HKD 34.9 million, an increase of about HKD 14.5 million or 71.1% compared to HKD 20.4 million in 2020[77] Corporate Governance - The company has adhered to the corporate governance code as per GEM Listing Rules, ensuring compliance and protecting shareholder interests[129] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the six months ended June 30, 2021, confirming compliance with applicable accounting standards[131] Share Capital and Dividends - The company did not declare or propose any dividends for the six months ended June 30, 2021, consistent with the previous year[44] - The company’s total issued and paid-up share capital remained at HKD 11,000,000 as of June 30, 2021, unchanged from December 31, 2020[56] Future Outlook - The company is focusing on market expansion and new product development to sustain growth in the upcoming periods[8] - Future outlook remains positive with strategic initiatives aimed at enhancing operational efficiency and increasing market share[8]

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].