Financial Performance - For the six months ended June 30, 2022, the group recorded revenue of approximately HKD 48,372,000, a decrease of about 25.2% compared to HKD 64,668,000 for the same period in 2021[7]. - Gross profit for the same period was approximately HKD 14,126,000, down 19.8% from HKD 17,611,000 in the previous year[7]. - The group reported a net profit of approximately HKD 2,416,000 for the six months ended June 30, 2022, compared to HKD 6,190,000 for the same period in 2021[7]. - The total comprehensive income for the period was a loss of HKD 4,681,000, compared to a gain of HKD 8,461,000 in the previous year[10]. - Basic and diluted earnings per share for the six months ended June 30, 2022, were HKD 0.50, down from HKD 1.29 in the same period of 2021[10]. - The company reported a total comprehensive income of HKD 2,416 thousand for the six months ended June 30, 2022, down from HKD 6,190 thousand for the same period in 2021, indicating a decline of about 61%[14]. - The company's profit attributable to owners decreased from HKD 6,190,000 for the six months ended June 30, 2021, to approximately HKD 2,416,000 for the six months ended June 30, 2022[72]. Revenue and Sales - The decline in revenue was primarily due to a significant reduction in procurement orders from major customers in East and North China, caused by COVID-19 restrictions[7]. - Revenue from functional knitted fabrics sales was HKD 39,556,000 for the six months ended June 30, 2022, down 18.4% from HKD 48,499,000 in the same period of 2021[26]. - Total revenue for the six months ended June 30, 2022, was HKD 42,097,000, a decrease of 16.3% compared to HKD 50,348,000 for the same period in 2021[26]. - The company's revenue decreased by approximately HKD 16,296,000 or 25.2% from HKD 64,668,000 for the six months ended June 30, 2021, to HKD 48,372,000 for the six months ended June 30, 2022, primarily due to a significant drop in sales orders from major customers caused by the COVID-19 Omicron variant outbreak[65]. Costs and Expenses - The cost of inventory recognized as an expense was HKD 26,842,000 for the six months ended June 30, 2022, compared to HKD 37,379,000 for the same period in 2021, reflecting a decrease of 28.2%[36]. - Selling and distribution expenses increased by approximately HKD 389,000 or 21.0% from HKD 1,848,000 to HKD 2,237,000, mainly due to salary increases and higher sales and marketing service fees[67]. - Administrative and other expenses decreased by approximately HKD 303,000 or 3.2% from HKD 9,492,000 to HKD 9,189,000, primarily due to reduced depreciation and miscellaneous expenses[69]. - Employee costs, excluding directors' remuneration, amounted to HKD 7,083,000 for the six months ended June 30, 2022, compared to HKD 5,712,000 for the same period in 2021, reflecting an increase of 24.0%[36]. - Employee costs for the six months ended June 30, 2022, totaled approximately HKD 9,326,000, compared to HKD 7,920,000 for the same period in 2021, representing an increase of about 17.6%[85]. Assets and Liabilities - As of June 30, 2022, total assets decreased to HKD 183,192 thousand from HKD 209,347 thousand as of December 31, 2021, representing a decline of approximately 12.5%[12]. - Net current assets as of June 30, 2022, were HKD 117,315 thousand, slightly down from HKD 119,062 thousand as of December 31, 2021, indicating a decrease of about 1.5%[12]. - Cash and cash equivalents decreased to HKD 24,931 thousand as of June 30, 2022, from HKD 26,680 thousand as of June 30, 2021, representing a decline of approximately 6.5%[18]. - The company's non-current assets totaled HKD 29,826 thousand as of June 30, 2022, down from HKD 33,043 thousand as of December 31, 2021, reflecting a decrease of about 9.5%[12]. - Trade receivables increased to HKD 90,955,000 as of June 30, 2022, compared to HKD 65,324,000 as of December 31, 2021, reflecting a growth of 38.5%[41]. - Trade payables rose to HKD 5,301,000 as of June 30, 2022, compared to HKD 3,654,000 as of December 31, 2021, marking an increase of 45.0%[44]. - The company reported total bank borrowings of HKD 18,933,000 as of June 30, 2022, down from HKD 42,808,000 as of December 31, 2021, representing a decrease of 55.7%[48]. Corporate Governance and Compliance - The board of directors did not recommend the payment of a dividend for the six months ended June 30, 2022[8]. - The company did not declare any dividends for the six months ended June 30, 2022, nor for the same period in 2021[49]. - The audit committee, consisting of three independent non-executive directors, reviewed the group's unaudited interim financial information for the six months ended June 30, 2022[98]. - The company adheres to high standards of corporate governance and has complied with all applicable provisions of the corporate governance code as of the report date[102]. - The major shareholder, Cosmic Bliss, holds 360,000,000 shares, representing a 75.00% equity interest in the company[93]. Future Outlook - The company expects higher revenue and operating profit in the second half of the year due to seasonal demand for functional knitted fabrics[58]. - The company continues to monitor the COVID-19 situation closely and plans to respond to market recovery trends as conditions improve[61].

Financial Performance - For the three months ended March 31, 2022, the group recorded revenue of approximately HKD 6,275,000, a significant decrease of about 56.2% compared to HKD 14,320,000 for the same period in 2021[7] - Gross profit for the same period was approximately HKD 650,000, down 86.1% from HKD 4,681,000 in the previous year, resulting in a gross margin decline from 32.7% to 10.4%[7] - The group reported a net loss of HKD 4,475,000 for the three months ended March 31, 2022, compared to a profit of HKD 920,000 for the same period in 2021[7] - Total comprehensive loss for the period amounted to HKD 3,938,000, compared to a gain of HKD 229,000 in the same period last year[12] - The company reported a loss of HKD 3,226,000 for the three months ended March 31, 2022, compared to a profit of HKD 3,004,000 for the same period in 2021[33] Revenue and Sales - Revenue for the three months ended March 31, 2022, was HKD 6,275,000, a decrease of 56.2% compared to HKD 14,320,000 for the same period in 2021[24] - Sales of functional knitted fabrics amounted to HKD 2,738,000, down 78.3% from HKD 12,591,000 in the previous year[24] - Sales of functional knitted fabrics dropped to HKD 2,738,000 from HKD 12,591,000, reflecting a significant decline due to reduced orders from major clients[51] Expenses and Costs - Research and development expenses for the period were HKD 846,000, a decrease of 33.1% from HKD 1,265,000 in the previous year[33] - Selling and distribution expenses increased by approximately 35.0% to HKD 867,000 from HKD 642,000, primarily due to higher marketing consultant fees and increased personnel costs[54] - Administrative and other expenses increased by approximately HKD 1,182,000 or 36.8% to about HKD 4,394,000 for the three months ended March 31, 2022, compared to HKD 3,212,000 for the same period in 2021[55] - The total employee costs for the three months ended March 31, 2022, were approximately HKD 4,094,000, compared to HKD 3,869,000 for the same period in 2021[64] Dividends and Shareholder Returns - The board does not recommend the payment of a dividend for the three months ended March 31, 2022, consistent with the previous year[8] - The company did not declare or propose any dividends for the three months ended March 31, 2022[38] - No dividends were recommended for the three months ended March 31, 2022, consistent with the same period in 2021[58] Market Conditions and Challenges - The decline in revenue was primarily attributed to the outbreak of the highly transmissible Omicron variant of COVID-19 in China, which led to significant reductions in procurement orders from major clients in East and North China[7] - The group continues to face challenges due to ongoing COVID-19 restrictions impacting client operations and procurement orders[7] - The company faced significant uncertainty in the Chinese market due to the COVID-19 Omicron variant, leading to conservative purchasing orders from clients[47] Corporate Governance and Compliance - The board of directors did not establish any arrangements that would allow directors to profit from purchasing shares or debt securities of the company or any other entity during the reporting period[70] - The unaudited consolidated financial data for the three months ended March 31, 2022, has been reviewed and approved by the board on May 14, 2022, confirming compliance with applicable accounting standards and GEM listing rules[77] - The company has confirmed that all directors have complied with the code of conduct regarding securities transactions for the three months ended March 31, 2022[78] - The company is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions during the review period[80] Financial Position and Liabilities - The company’s total liabilities increased, impacting its financial position, although specific figures were not disclosed in the summary[19] - Personal guarantees for bank borrowings increased to approximately HKD 49,322,000 as of March 31, 2022, compared to HKD 33,128,000 in the previous year[42] - The company had no significant investments or capital asset plans as of March 31, 2022[60] - There were no significant acquisitions or disposals of subsidiaries or associates during the three months ended March 31, 2022[61] - The company did not hold any significant investments as of March 31, 2022[62] - There were no significant capital commitments or contingent liabilities as of March 31, 2022[63] Research and Development Focus - The company continues to focus on expanding its market presence in functional knitted fabrics and apparel despite the recent decline in revenue[19] - The company plans to invest more resources in the research and development of functional knitted fabrics and dyeing methods to enhance its market position[48] Staffing and Employment - The company employed 69 staff as of March 31, 2022, down from 74 staff as of March 31, 2021[64]

Financial Performance - Revenue for 2021 was HKD 122.786 million, a slight increase of 1.0% from HKD 120.683 million in 2020[10] - Gross profit for 2021 was HKD 34.692 million, representing a gross margin of 28.3%[10] - The company reported a net loss of HKD 32.503 million for 2021, compared to a profit of HKD 6.111 million in 2020[10] - The company's revenue for the fiscal year 2021 increased by HKD 2,103,000 or 1.7% to HKD 122,786,000 compared to HKD 120,683,000 in fiscal year 2020[24] - The gross profit margin improved from 23.6% in fiscal year 2020 to 28.3% in fiscal year 2021, with gross profit rising by HKD 6,214,000 or 21.8% to HKD 34,692,000[25] - The company recorded a net loss of HKD 32,503,000 in fiscal year 2021, a significant decline from a profit of HKD 6,111,000 in fiscal year 2020, primarily due to a one-time bad debt provision of approximately HKD 46,300,000[20] - Other income increased by HKD 1,378,000 or 57.1% to HKD 3,793,000 in fiscal year 2021, mainly due to increased rental income from machinery[26] Cash Flow and Assets - Operating cash flow for 2021 was HKD 30.775 million, a significant recovery from a cash outflow of HKD 28.751 million in 2020[11] - Total assets decreased to HKD 209.347 million in 2021 from HKD 219.789 million in 2020[11] - The company’s net cash and cash equivalents increased to HKD 89.740 million at year-end 2021, up from HKD 38.134 million at the beginning of the year[11] - Non-current assets remained stable at HKD 33.043 million in 2021, compared to HKD 33.974 million in 2020[11] - Cash and cash equivalents as of December 31, 2021, were HKD 89,740,000, up from HKD 38,134,000 as of December 31, 2020[37] Liabilities and Financing - The total liabilities decreased to HKD 57.767 million in 2021 from HKD 40.979 million in 2020[11] - Financing costs increased by 186% from HKD 616,000 in the fiscal year 2020 to HKD 1,762,000 in 2021, attributed to higher bank borrowings[32] - The group’s total bank borrowings increased to HKD 42,808,000 as of December 31, 2021, from HKD 21,387,000 in the previous year[37] - The group’s debt-to-equity ratio as of December 31, 2021, was 28.2%, compared to 12.4% at the end of 2020[37] Strategic Plans and Market Position - The company plans to focus on market expansion and new product development in the upcoming year[12] - The company plans to enhance its market position in China by increasing product variety and strengthening marketing efforts to expand into different market segments[21] - The management is optimistic about the recovery of product demand in 2022 and will continue to invest in R&D for functional knitted fabrics[21] - The company aims to recruit talent to support future growth and deliver better long-term returns to shareholders[21] - The company aims to strengthen its position in the research and development of new functional fabrics while expanding into different markets and increasing promotion and sales efforts to attract new customers[160] Employee and Operational Efficiency - As of December 31, 2021, the group had 69 employees, down from 79 in 2020, with total employee costs amounting to HKD 17,740,000 for the fiscal year 2021, compared to HKD 17,189,000 in 2020[54] - The group has established a performance review system for employees, conducting formal evaluations at least once a year[187] - The group has no significant disputes with employees, suppliers, customers, or other stakeholders as of December 31, 2021[172] - Administrative and other expenses decreased by HKD 1,521,000 or 7.7% to HKD 18,241,000 in fiscal year 2021, mainly due to reduced administrative staff costs[30] Corporate Governance - The board of directors emphasized the commitment to high standards of corporate governance and compliance with applicable regulations[80] - The board consists of 2 executive directors, 1 non-executive director, and 3 independent non-executive directors, ensuring a balance of skills and experience[91] - The board ensures that the interests of all shareholders are fully considered in decision-making processes[94] - The audit committee is responsible for independent oversight of the group's financial reporting and internal control systems[109] - The company has established four committees: audit committee, remuneration committee, nomination committee, and corporate governance committee to oversee various aspects of the company[108] Risk Management - The board is responsible for maintaining an effective risk management and internal control system, which is reviewed annually to ensure its effectiveness[131] - The risk management framework includes identifying, assessing, and managing significant risks, with a structured approach to risk monitoring and reporting to the board[136] - The audit committee regularly reviews the group's performance and risk management systems, with no significant issues identified in the annual review for the year ended December 31, 2021[140] Shareholder Communication and Dividends - The company emphasizes effective communication with shareholders to strengthen investor relations and deepen understanding of its business and strategies[151] - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2021, consistent with the previous year[163] - The company has adopted a dividend policy since January 1, 2019, which considers factors such as cash levels, retained earnings, and projected financial performance when declaring dividends[152] - The company will hold its 2022 Annual General Meeting on May 27, 2022, to enhance communication with shareholders[142]

Financial Performance - For the nine months ended September 30, 2021, the group recorded revenue of approximately HKD 101,924,000, an increase of about 14.7% compared to HKD 88,868,000 for the same period in 2020[15]. - Gross profit for the same period was approximately HKD 32,835,000, representing a 24.9% increase from HKD 26,285,000 in the previous year[15]. - The gross profit margin improved to 32.2% for the nine months ended September 30, 2021, up from 29.6% in the same period of 2020[15]. - The company reported a net loss of HKD 27,028,000 for the nine months ended September 30, 2021, compared to a net profit of HKD 7,517,000 for the same period in 2020[15]. - The net loss was primarily due to a provision for impairment of trade receivables amounting to approximately HKD 46,100,000[15]. - Total comprehensive loss for the nine months ended September 30, 2021, was HKD 24,300,000, compared to a total comprehensive income of HKD 10,815,000 in the same period of 2020[18]. - For the three months ended September 30, 2021, the company's revenue was approximately HKD 37,256,000, a decrease of about 20.3% compared to HKD 46,782,000 for the same period in 2020[61]. - For the nine months ended September 30, 2021, the company's revenue increased by approximately HKD 13,056,000 or 14.7% to about HKD 101,924,000, compared to HKD 88,868,000 for the same period in 2020[61]. Loss Attributable to Owners - The company reported a loss attributable to owners of HKD (32,761) thousand for the three months ended September 30, 2021, compared to a profit of HKD 6,290 thousand in the same period of 2020[20]. - For the nine months ended September 30, 2021, the company reported a loss attributable to owners of HKD (24,300) thousand, compared to a profit of HKD 7,517 thousand in the same period of 2020[20]. - Total comprehensive loss attributable to owners was HKD (32,761) thousand for the three months ended September 30, 2021, down from HKD 12,492 thousand in the same period of 2020[20]. Revenue Sources - Revenue from customer contracts for the three months ended September 30, 2021, was HKD 37,256 thousand, a decrease from HKD 46,782 thousand in the same period of 2020[33]. - Revenue from functional knitted fabrics sales was HKD 36,966 thousand for the three months ended September 30, 2021, compared to HKD 43,677 thousand in the same period of 2020[33]. - Major customer A contributed HKD 12,193 thousand in revenue for the three months ended September 30, 2021, compared to HKD 11,369 thousand in the same period of 2020[36]. - Major customer B contributed HKD 6,010 thousand in revenue for the three months ended September 30, 2021, down from HKD 21,842 thousand in the same period of 2020[36]. Expenses and Costs - Employee costs (excluding directors' remuneration) for the three months ended September 30, 2021, amounted to HKD 4,864,000, an increase of 70.4% from HKD 2,855,000 in the same period of 2020[42]. - Research and development expenses for the three months ended September 30, 2021, were HKD 2,365,000, a decrease of 32.5% from HKD 3,510,000 in the same period of 2020[42]. - The company incurred finance costs of HKD 502,000 for the three months ended September 30, 2021, compared to HKD 231,000 for the same period in 2020, representing a 117.3% increase[37]. - The sales and distribution expenses increased by approximately HKD 845,000 or 33.0% to about HKD 3,409,000 for the nine months ended September 30, 2021, mainly due to increased promotional and exhibition expenses[63]. - Administrative and other expenses decreased by approximately HKD 3,095,000 or 20.1% to about HKD 12,292,000 for the nine months ended September 30, 2021[65]. Dividends and Shareholder Information - No dividends were declared for the nine months ended September 30, 2021, consistent with the previous year[16]. - The company did not declare any dividends for the period, consistent with the previous year[46]. - The major shareholder, Mr. Huang, indirectly holds 75% of the company's issued share capital as of the report date[77]. - As of September 30, 2021, the major shareholder Cosmic Bliss Investments Limited holds 360,000,000 shares, representing 75% of the company's equity[83]. Corporate Governance - The company has established an audit committee in compliance with GEM Listing Rules, which has reviewed the unaudited consolidated financial information for the period[87]. - All directors have confirmed compliance with the established code of conduct regarding securities trading during the reporting period[88]. - The company has adhered to all applicable provisions of the corporate governance code during the reporting period and up to the report date[91]. - The executive directors as of the report date include Mr. Huang Jixiong and Mr. Xi Bin, with non-executive and independent non-executive directors also listed[92]. Market Conditions and Future Plans - The company continues to monitor market conditions and adjust strategies accordingly to navigate the ongoing economic recovery in China[15]. - The company plans to continue investing in the research and development of functional knitted fabrics and dyeing methods to enhance market competitiveness[58].

Financial Performance - For the six months ended June 30, 2021, the group recorded revenue of approximately HKD 64,668,000, representing an increase of about 53.7% compared to HKD 42,086,000 for the same period in 2020[17] - Gross profit for the same period was approximately HKD 17,611,000, up 31.7% from HKD 13,367,000 in the prior year[17] - The group achieved a net profit of approximately HKD 6,190,000, significantly higher than HKD 1,227,000 for the same period in 2020[17] - Basic and diluted earnings per share for the six months ended June 30, 2021, were HKD 1.29, compared to HKD 0.26 for the same period in 2020[19] - The total comprehensive income for the period was approximately HKD 8,461,000, compared to a loss of HKD 1,677,000 in the prior year[19] - Revenue from customer contracts for functional knitted fabrics sales was HKD 48,499,000 for the six months ended June 30, 2021, compared to HKD 29,341,000 for the same period in 2020, representing a growth of 65.3%[36] - The total revenue for the six months ended June 30, 2021, was HKD 64,668,000, an increase from HKD 42,086,000 in the same period of 2020, reflecting a growth of 54.0%[36] - The company reported a net profit attributable to shareholders of HKD 6,190,000 for the six months ended June 30, 2021, compared to HKD 1,227,000 for the same period in 2020, indicating a significant increase of 404.5%[49] Cost and Profitability - The gross profit margin decreased to 27.2% from 31.8% due to rising raw material costs and competitive pricing strategies[17] - The financing costs for the six months ended June 30, 2021, totaled HKD 775,000, compared to HKD 139,000 for the same period in 2020, showing a rise of 468.3%[40] - Research and development expenses for the six months ended June 30, 2021, were HKD 2,548,000, up from HKD 2,109,000 in the same period of 2020, marking an increase of 20.9%[46] Assets and Liabilities - As of June 30, 2021, the company's total assets amounted to HKD 226,470 thousand, an increase from HKD 185,815 thousand as of December 31, 2020, representing a growth of approximately 21.9%[21] - The company's net current assets stood at HKD 154,923 thousand, compared to HKD 146,483 thousand in the previous period, reflecting an increase of about 5.5%[21] - The total equity of the company reached HKD 187,271 thousand, up from HKD 178,810 thousand at the end of 2020, indicating a growth of approximately 4.1%[21] - The company's cash and cash equivalents decreased to HKD 26,680 thousand at the end of the period, down from HKD 42,827 thousand at the end of the previous period, representing a decline of about 37.7%[27] - The company's retained earnings increased to HKD 121,715 thousand as of June 30, 2021, compared to HKD 110,770 thousand at the end of the previous period, reflecting a growth of approximately 9.0%[23] - The company’s bank borrowings rose significantly to HKD 47,062 thousand from HKD 21,387 thousand, marking an increase of approximately 120.5%[21] - Trade receivables as of June 30, 2021, amounted to HKD 90,291, an increase from HKD 75,419 as of December 31, 2020, representing a growth of 19.7%[54] - Trade payables increased significantly to HKD 11,782 as of June 30, 2021, from HKD 4,640 as of December 31, 2020, marking a rise of 153.5%[57] Dividends and Shareholder Returns - The board of directors did not recommend the payment of a dividend for the six months ended June 30, 2021, consistent with the previous year[17] - The company did not declare an interim dividend for the six months ended June 30, 2021, compared to a dividend of HKD 4,800,000 for the same period in 2020[64] Future Outlook and Strategy - The company expects higher revenue and operating profit in the second half of the year due to seasonal demand for functional knitted fabrics[74] - The company plans to continue investing in the research and development of functional knitted fabrics and dyeing methods to enhance market competitiveness[78] - The company will focus on improving product variety and strengthening marketing efforts to enhance its market position in China[78] Corporate Governance and Compliance - The audit committee reviewed the unaudited interim consolidated financial information for the six months ending June 30, 2021, and found it compliant with applicable accounting standards and GEM listing rules[119] - The company has adhered to all applicable provisions of the corporate governance code during the reporting period[123] - The company has maintained high standards of corporate governance and business practices throughout the reporting period[123] - No directors or major shareholders have interests in any business that competes directly or indirectly with the company as of June 30, 2021[118] Management and Personnel - Key management personnel compensation for the six months ended June 30, 2021, was HKD 1,728,000, a decrease from HKD 1,888,000 in the same period of 2020[72] - The total employee costs for the six months ended June 30, 2021, were approximately HKD 7,920,000, down from HKD 9,181,000 for the same period in 2020[100] - The group has recruited five R&D technical personnel to support product variety improvement strategies[106] Shareholding Structure - As of June 30, 2021, the chairman, Mr. Huang, indirectly owned 75% of the company's issued share capital[104] - As of June 30, 2021, Cosmic Bliss holds 360,000,000 shares, representing a 75.00% beneficial ownership in the company[115]

Financial Performance - For the three months ended March 31, 2021, the group recorded revenue of approximately HKD 14,320,000, a significant increase of about 47.6% compared to HKD 9,705,000 for the same period in 2020[14] - Gross profit for the same period was approximately HKD 4,681,000, representing a substantial increase of 147.5% from HKD 1,891,000 in the prior year[14] - The group reported a net profit of HKD 920,000 for the three months ended March 31, 2021, compared to a net loss of HKD 4,376,000 for the same period in 2020[14] - Total comprehensive income for the period was HKD 229,000, compared to a total comprehensive loss of HKD 6,470,000 in the same period last year[18] - Basic and diluted earnings per share for the period were HKD 0.19, compared to a loss per share of HKD 0.91 in the prior year[18] Revenue Sources - Functional knitted fabric sales contributed HKD 12,591,000, significantly up from HKD 3,160,000 year-on-year, marking a 298.4% increase[30] - The increase in revenue was attributed to the steady economic recovery in China following the COVID-19 pandemic[14] - Major customers contributing over 10% of total revenue included Customer A at HKD 5,070,000 and Customer B at HKD 5,061,000, both showing significant increases from the previous year[33] Expenses and Costs - Other income for the period was recorded at HKD 573,000, while selling and distribution expenses were HKD 642,000[16] - The company reported a financing cost of HKD 312,000 for the three months ended March 31, 2021, compared to HKD 23,000 in the same period of 2020[34] - Research and development expenses for the period were HKD 1,265,000, compared to HKD 935,000 in the same period of 2020[54] - Sales and distribution expenses decreased by approximately HKD 457,000 or 41.6% to HKD 642,000 for the three months ended March 31, 2021, primarily due to delayed discretionary bonuses and reduced marketing, travel, and business entertainment expenses[61] - Administrative and other expenses decreased by approximately HKD 2,654,000 or 45.2% to HKD 3,212,000 for the three months ended March 31, 2021, mainly due to reduced employee salaries and lower professional fees[62] - Employee costs totaled approximately HKD 3,869,000 for the three months ended March 31, 2021, down from HKD 5,290,000 for the same period in 2020[71] Dividends and Shareholder Information - The board of directors did not recommend the payment of a dividend for the three months ended March 31, 2021, consistent with the previous year[14] - The company did not declare or propose any dividends for the periods ended March 31, 2021, and 2020[43] - The company’s major shareholder, Mr. Huang, indirectly owned 75% of the issued share capital as of March 31, 2021[74] - As of March 31, 2021, Cosmic Bliss holds 360,000,000 shares, representing a 75.00% equity interest in the company[83] Corporate Governance and Compliance - The audit committee has reviewed the unaudited consolidated financial information for the three months ended March 31, 2021, and confirmed compliance with applicable accounting standards and GEM listing rules[88] - The company has adhered to all applicable provisions of the corporate governance code during the review period[91] - The company has not established any arrangements that would allow directors to profit from purchasing shares or securities of the company or any other entity during the reporting period[85] Taxation and Legal Matters - Income tax expense for the period was HKD 168,000, with a current tax of HKD 163,000 attributed to the Chinese corporate income tax[36] - The company has a tax rate of 25% for its Chinese subsidiaries, with some qualifying for reduced rates due to tax incentives[37] - Guangdong Zhaotian Textile failed to meet the net profit covenant for the fiscal year 2020, resulting in a breach of the loan agreement with China Construction Bank[78] Operational Overview - The company operates primarily in the functional knitted fabric and apparel sales sector, with all revenue, expenses, and performance metrics attributed to this single operating segment[32] - The company plans to continue investing in the research and development of functional knitted fabrics and dyeing methods to enhance its market position in China[55] - The company has implemented strict cost control measures in response to the market recovery from the impacts of COVID-19[54] - The company has adopted new accounting standards effective from January 1, 2021, with no significant impact on financial performance reported[28] - The company is classified as an investment holding company, with its subsidiaries primarily engaged in the sale of functional knitted fabrics and apparel[25] Other Information - The company’s registered office is located in the Cayman Islands, with its main operational address in Hong Kong[24] - The group had no significant investments or capital asset plans other than those disclosed in the prospectus dated April 30, 2018[67] - There were no significant acquisitions or disposals of subsidiaries or associates during the three months ended March 31, 2021[68] - The group had no significant contingent liabilities or capital commitments as of March 31, 2021[70] - There were no repurchases of listed securities by the company or its subsidiaries during the reporting period[90]

ST International Holdings Company Limited 智紡國際控股有限公司 (於開曼群島註冊成立的有限公司) (股份代號：8521) 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位乃為相比其他在聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市的市場。有 意投資者應了解投資於該等公司的潛在風險，並應經過審慎周詳考慮後方作出投資決定。 由於GEM上市公司通常為中小型公司，在GEM買賣的證券可能會較於主板買賣的證券承受較大的市場波 動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表任何聲 明，並明確表示，概不對因本報告全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔 任何責任。 本報告的資料乃遵照聯交所的GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關智紡國際控股 有限公司（「本公司」，連同其附屬公司統稱為「本集團」）的資料；本公司董事（「董事」）願就本報告的資料 共同及個別地承擔全部責任。 各董事在作出一切合理查詢後，確認就其所知及所信，本報告所 ...

Financial Performance - For the nine months ended September 30, 2020, the group recorded revenue of approximately HKD 88,868,000, a decrease of about 32.2% compared to HKD 131,010,000 for the same period in 2019[15]. - Gross profit for the nine months ended September 30, 2020, was approximately HKD 26,285,000, down 47.0% from HKD 49,567,000 in the previous year[15]. - The group reported a net profit of HKD 7,517,000 for the nine months ended September 30, 2020, compared to HKD 30,209,000 for the same period in 2019[15]. - The group achieved a net profit of approximately HKD 6,290,000 for the three months ended September 30, 2020, an improvement from a net loss of HKD 4,376,000 for the three months ended March 31, 2020[16]. - The total comprehensive income for the nine months ended September 30, 2020, was HKD 10,815,000, compared to HKD 25,320,000 for the same period in 2019[18]. - The company's profit attributable to owners for the three months ended September 30, 2020, was HKD 6,290,000, a decrease of 60% compared to HKD 15,682,000 for the same period in 2019[20]. - The total comprehensive income attributable to owners for the nine months ended September 30, 2020, was HKD 10,815,000, compared to HKD 25,320,000 for the same period in 2019, reflecting a decline of 57%[20]. - The profit attributable to owners for the nine months ended September 30, 2020, was HKD 7,517,000, a decrease of 75% from HKD 30,209,000 for the same period in 2019[20]. - The company reported a net profit of HKD 6,290,000 for the three months ended September 30, 2020, compared to HKD 15,682,000 in the same period of 2019, reflecting a decrease of 60%[49]. Revenue and Sales - Revenue from functional knitted fabrics sales reached HKD 43,677,000 for the three months ended September 30, 2020, an increase of 10% compared to HKD 39,736,000 in the same period of 2019[35]. - Total revenue for the nine months ended September 30, 2020, was HKD 88,868,000, down 32% from HKD 131,010,000 in the same period of 2019[35]. - Customer A contributed HKD 11,369,000 to total revenue for the three months ended September 30, 2020, a decrease of 19% from HKD 13,996,000 in the same period of 2019[39]. - Customer B contributed HKD 21,842,000 for the nine months ended September 30, 2020, with no contribution in the same period of 2019[39]. Expenses and Costs - Sales and distribution expenses decreased by approximately HKD 1,207,000 or 32.0% to approximately HKD 2,564,000 for the nine months ended September 30, 2020, due to reduced marketing activities amid COVID-19[65]. - Administrative and other expenses increased by approximately HKD 1,933,000 or 14.4% to approximately HKD 15,387,000 for the nine months ended September 30, 2020, primarily due to bank loan application fees and training expenses[66]. - Financing costs related to bank borrowings and lease liabilities amounted to HKD 220,000 for the three months ended September 30, 2020, compared to HKD 31,000 in the same period of 2019[40]. - The total employee costs for the nine months ended September 30, 2020, were approximately HKD 12,981,000, compared to HKD 13,760,000 for the same period in 2019[75]. Dividends and Reserves - The board does not recommend the payment of dividends for the nine months ended September 30, 2020[16]. - The company did not declare any dividends for the nine months ended September 30, 2020, consistent with the same period in 2019[50]. - The company did not transfer any amount to statutory reserves as the reserve balance had reached 50% of the registered capital, and some entities were in accumulated loss[24]. - The company has not established any arrangements that would allow directors to profit from purchasing shares or debt securities of the company or any other entity[80]. Research and Development - The company plans to continue investing more resources in the research and development of functional knitted fabrics and dyeing methods despite the challenges posed by COVID-19[59]. - R&D expenses for the three months ended September 30, 2020, were HKD 3,510,000, significantly higher than HKD 746,000 in the same period of 2019[46]. Market Conditions and Future Outlook - The group continues to seek new customers and procurement orders to recover from the impacts of COVID-19[16]. - The company experienced a significant decline in sales orders due to the impact of COVID-19, which led to operational suspensions and an overall economic downturn[58]. Corporate Governance and Compliance - The audit committee reviewed the unaudited consolidated financial information for the nine months ended September 30, 2020, and found it compliant with applicable accounting standards and regulations[86]. - The company has adhered to all applicable corporate governance code provisions during the reporting period[90]. - The compliance advisor, First Shanghai Financial Ltd., confirmed no interests held by them or their affiliates in the company as of September 30, 2020[91]. Employee Information - As of September 30, 2020, the group had 77 employees, a decrease from 80 employees as of September 30, 2019[75]. Shareholding and Directors - Mr. Huang holds a 75.00% equity interest in the company through Cosmic Bliss Investments Limited, which owns 360,000,000 shares[77]. - The executive directors of the company include Mr. Huang Jixiong and Mr. Xi Bin, with non-executive and independent directors also listed[92]. Other Financial Information - The company recognized a foreign exchange difference of HKD (4,889,000) related to the translation of overseas business performance into the reporting currency[22]. - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2020, which did not have a significant impact on the financial performance[31]. - The company has chosen to early adopt a practical expedient related to COVID-19 rent concessions, recognizing the rent reductions as variable lease payments in the profit and loss statement[32]. - As of September 30, 2020, the group had no significant acquisitions or disposals of subsidiaries or associates during the nine months[72]. - The group did not hold any significant investments as of September 30, 2020[73]. - As of September 30, 2020, the group had no significant capital commitments or contingent liabilities[74].

Financial Performance - For the six months ended June 30, 2020, the group recorded revenue of approximately HKD 42,086,000, a decrease of about 50.7% compared to HKD 85,312,000 for the same period in 2019[9]. - Gross profit for the same period was approximately HKD 13,367,000, down about 54.8% from HKD 29,573,000 in 2019[9]. - The group reported a net profit of approximately HKD 5,603,000 for the three months ended June 30, 2020, compared to a loss of HKD 4,376,000 for the three months ended March 31, 2020[9]. - The group’s total comprehensive income for the six months ended June 30, 2020, was a loss of HKD 1,677,000, compared to a total comprehensive income of HKD 13,669,000 for the same period in 2019[12]. - Basic and diluted earnings per share for the six months ended June 30, 2020, were HKD 0.26, down from HKD 3.03 in 2019[12]. - The group reported a net profit attributable to owners of the company of HKD 1,227,000 for the six months ended June 30, 2020, compared to HKD 14,527,000 for the same period in 2019, indicating a decline of 91.6%[42]. Dividend and Shareholder Information - The board does not recommend the payment of a dividend for the six months ended June 30, 2020[10]. - The company did not declare an interim dividend for the six months ended June 30, 2020, compared to no dividend declared for the same period in 2019[59]. - The company had a total of 480,000 shares outstanding for both the six months ended June 30, 2020, and 2019, with no potential dilutive shares[44]. Impact of COVID-19 - The group experienced a significant reduction in procurement orders from customers due to the COVID-19 pandemic and related government measures[9]. - The overall economic environment remained weak, impacting the group’s operations and customer business activities[9]. - Selling and distribution expenses decreased by approximately 32.2% from HKD 2,687,000 to HKD 1,823,000 due to operational disruptions caused by COVID-19[78]. - The company recorded a rental reduction of HKD 21,000 for the office in Dongguan due to COVID-19 measures[48]. Assets and Liabilities - As of June 30, 2020, the company's non-current assets totaled HKD 25,665,000, compared to HKD 6,682,000 as of December 31, 2019, indicating a significant increase[14]. - The company's current assets included inventories of HKD 28,774,000 and trade and bills receivables of HKD 37,679,000, showing a slight decrease from HKD 30,717,000 and HKD 39,305,000 respectively in the previous period[14]. - The total equity as of June 30, 2020, was HKD 160,827,000, down from HKD 167,304,000 at the end of 2019, representing a decrease of approximately 3.5%[14]. - The company’s total liabilities increased to HKD 61,649,000 from HKD 15,555,000, primarily due to an increase in trade payables and other payables[14]. - Trade receivables as of June 30, 2020, were HKD 46,684,000, an increase from HKD 34,325,000 as of December 31, 2019[50]. - The company reported trade payables of HKD 9,544,000 as of June 30, 2020, significantly up from HKD 1,590,000 as of December 31, 2019[53]. Cash Flow and Financing - The net cash and cash equivalents decreased to HKD 42,827,000 from HKD 55,155,000, reflecting a reduction of approximately 22.4%[20]. - The company reported a net cash outflow from operating activities of HKD 26,983,000, an improvement from HKD 34,254,000 in the same period last year[20]. - Financing activities generated a net cash inflow of HKD 15,313,000, compared to HKD 1,972,000 in the previous period, indicating a substantial increase in financing[20]. - The company incurred a bank loan of approximately HKD 19,706,000 as of June 30, 2020, compared to no bank loans as of December 31, 2019[84]. - The company's cash and cash equivalents were approximately HKD 42,827,000 as of June 30, 2020, down from HKD 55,155,000 as of December 31, 2019[84]. Research and Development - The group recognized a total of HKD 1,174,000 in R&D expenses for the three months ended June 30, 2020, compared to HKD 373,000 for the same period in 2019, reflecting a significant increase[39]. - The company plans to continue investing more resources in the research and development of functional knitted fabrics and dyeing methods despite the challenges posed by COVID-19[73]. - The group has allocated HKD 12.9 million for increasing R&D resources, which has been fully utilized as of June 30, 2020[104]. Corporate Governance and Compliance - The audit committee, established on April 23, 2018, reviewed the unaudited interim consolidated financial information for the six months ended June 30, 2020, and found it compliant with applicable accounting standards and regulations[115]. - The company has adhered to all applicable provisions of the corporate governance code during the reporting period[119]. Market Presence and Future Plans - The company plans to continue its focus on expanding its market presence and enhancing its product offerings in the upcoming periods[21]. - The group has participated in trade shows and industry exhibitions to promote its market presence[97]. - The group is developing a new enterprise resource planning system to enhance its IT infrastructure[100].

Financial Performance - For the three months ended March 31, 2020, the group recorded revenue of approximately HKD 9,705,000, a decrease of about 57.7% compared to HKD 22,933,000 for the same period in 2019[14] - Gross profit for the same period was approximately HKD 1,891,000, down 74.2% from HKD 7,321,000 in the previous year[14] - The group reported a net loss of HKD 4,376,000 for the three months ended March 31, 2020, compared to a net profit of HKD 1,446,000 for the same period in 2019[14] - The total revenue for the period was HKD 9,705,000, representing a decline of 57.6% from HKD 22,933,000 in the same quarter of 2019[32] - The company reported a loss of HKD 4,376,000 for the period, compared to a loss of HKD 2,094,000 in the previous year[20] - The basic and diluted loss per share for the period was HKD (0.91), compared to earnings of HKD 0.30 per share in the previous year[18] - The loss attributable to owners of the company for the three months ended March 31, 2020, was approximately HKD 4,376,000, compared to a profit of approximately HKD 1,446,000 for the same period in 2019[67] Revenue Breakdown - For the three months ended March 31, 2020, the revenue from functional knitted fabric sales was HKD 3,160,000, a decrease of 84.2% compared to HKD 19,985,000 for the same period in 2019[32] - The revenue from apparel sales was HKD 2,011,000, down 31.8% from HKD 2,948,000 in the previous year[32] - The group's revenue decreased by approximately 57.7% from HKD 22,933,000 for the three months ended March 31, 2019, to HKD 9,705,000 for the three months ended March 31, 2020, primarily due to a significant drop in sales of functional knitted fabrics caused by the COVID-19 pandemic[61] Expenses and Costs - The gross profit margin decreased due to ongoing research and development costs and other indirect costs, alongside the decline in revenue[14] - Selling and distribution expenses were HKD 1,099,000, slightly down from HKD 1,360,000 in the previous year[16] - Administrative and other expenses increased to HKD 5,866,000 from HKD 4,393,000 in the same period last year[16] - Selling and distribution expenses decreased by approximately 19.2% from HKD 1,360,000 to HKD 1,099,000, mainly due to reduced marketing, travel, and business entertainment expenses[64] - Administrative and other expenses increased by approximately 33.5% from HKD 4,393,000 to HKD 5,866,000, primarily due to discretionary bonuses approved and paid to all employees in the first quarter of 2020[65] - Employee costs, excluding directors' remuneration, increased to HKD 4,349,000 from HKD 2,802,000 year-on-year, representing a rise of approximately 55%[42] - The cost of inventory recognized as an expense decreased significantly to HKD 5,707,000 from HKD 14,663,000, a reduction of about 61%[42] Dividends and Reserves - The board of directors does not recommend the payment of a dividend for the three months ended March 31, 2020[14] - The company did not declare or propose any dividends for the three months ended March 31, 2020, consistent with the previous year[47] - The company did not transfer any profits to the statutory reserve as the reserve balance had reached 50% of the registered capital and some entities were in cumulative loss[22] Impact of COVID-19 - The decline in revenue was primarily due to the outbreak of COVID-19 and various preventive measures implemented by the Chinese government, which led to the suspension of operations[14] - The COVID-19 pandemic significantly impacted the company's operations, leading to a decline in customer procurement orders during the reporting period[57] Corporate Governance - The company has complied with all applicable corporate governance codes during the review period[90] - The audit committee was established on April 23, 2018, and reviewed the unaudited financial data for the three months ending March 31, 2020[86] - The company confirmed that all directors adhered to the established code of conduct for securities trading during the reporting period[87] Other Information - The company has a single operating segment focused on the sale of functional knitted fabrics and apparel, primarily in China[34] - Major customers contributing over 10% of total revenue included Customer A with HKD 1,712,000 and Customer B1 with HKD 1,461,000[35] - The company has not made any provisions for Hong Kong profits tax due to the absence of taxable profits for the three months ended March 31, 2020[39] - The effective tax rate for subsidiaries in China was 25%, with one subsidiary qualifying for a reduced rate of 15% as a high-tech enterprise[39] - The company plans to enhance its market position in China by improving product variety and strengthening marketing efforts[58] - The group had no significant investments or capital asset plans beyond those disclosed in the prospectus dated April 30, 2018[70] - There were no significant acquisitions or disposals of subsidiaries or associates during the three months ended March 31, 2020[71] - The group had no significant capital commitments or contingent liabilities as of March 31, 2020[73] - The number of employees decreased from 83 as of March 31, 2019, to 74 as of March 31, 2020, with total employee costs amounting to approximately HKD 5,606,000 for the three months ended March 31, 2020[74] - Cosmic Bliss holds 75.00% equity in the company with 360,000,000 shares[82] - No directors or major shareholders have interests in any competing businesses as of March 31, 2020[85] - There were no repurchases of listed securities by the company or its subsidiaries during the three months ending March 31, 2020[89] - The compliance advisor, First Shanghai, has no interests in the group that require disclosure as of March 31, 2020[91]