保宝龙科技(01861) - 2024 - 中期业绩

Interim Results Announcement Company Information and Report Overview PRECIOUS DRAGON TECHNOLOGY HOLDINGS LIMITED announced its unaudited condensed consolidated financial results for the six months ended June 30, 2024, which were reviewed by Ernst & Young and the Audit Committee - Company Name: PRECIOUS DRAGON TECHNOLOGY HOLDINGS LIMITED (保寶龍科技控股有限公司)[1] - Reporting Period: Six months ended June 30, 2024[1] - Report Nature: Unaudited condensed consolidated financial results, reviewed by Ernst & Young and the Company's Audit Committee[1] Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Profit or Loss Statement Overview For the six months ended June 30, 2024, revenue increased by 3.0% to HK$274,248 thousand and gross profit rose by 5.4% to HK$90,446 thousand, but profit for the period decreased by 10.2% to HK$23,978 thousand due to a significant increase in selling and distribution expenses Interim Condensed Consolidated Statement of Profit or Loss Key Data | Indicator | 2024 (HK$ thousand) | 2023 (HK$ thousand) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 274,248 | 266,237 | 3.0% | | Cost of sales | (183,802) | (180,462) | 1.9% | | Gross profit | 90,446 | 85,775 | 5.4% | | Other income and gains | 8,816 | 2,235 | 294.5% | | Selling and distribution expenses | (23,464) | (16,804) | 39.6% | | Administrative expenses | (23,051) | (24,454) | -5.7% | | Research and development expenses | (10,772) | (9,720) | 10.8% | | Profit before tax | 33,918 | 34,689 | -2.2% | | Income tax expense | (9,940) | (7,981) | 24.5% | | Profit for the period | 23,978 | 26,708 | -10.2% | | Total comprehensive income for the period | 23,811 | 16,710 | 42.5% | - Other income and gains significantly increased by 294.5%, primarily due to higher government grants, service income, and interest income[2][25] - Selling and distribution expenses substantially increased by 39.6%, mainly driven by increased advertising and promotion costs to enhance the e-commerce platform[2][26] Earnings Per Share For the six months ended June 30, 2024, basic and diluted earnings per share attributable to owners of the parent were both 10.3 HK cents, a decrease from 11.4 HK cents in the prior year Earnings Per Share | Indicator | 2024 (HK cents) | 2023 (HK cents) | | :--- | :--- | :--- | | Basic earnings per share | 10.3 | 11.4 | | Diluted earnings per share | 10.3 | 11.4 | - Basic earnings per share are calculated based on the weighted average number of 233,917,250 ordinary shares outstanding during the period[16] Interim Condensed Consolidated Statement of Financial Position Assets As of June 30, 2024, total non-current assets slightly decreased, while total current assets increased, primarily driven by a significant rise in trade and bills receivables Assets Overview | Indicator | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Total non-current assets | 267,038 | 278,822 | | Total current assets | 222,432 | 205,942 | | Trade and bills receivables | 59,660 | 35,602 | | Cash and cash equivalents | 112,768 | 107,730 | - Trade and bills receivables increased from HK$35,602 thousand at the end of 2023 to HK$59,660 thousand in mid-2024[4][17] Liabilities and Equity As of June 30, 2024, total current liabilities and total non-current liabilities both decreased, while equity attributable to owners of the parent increased, leading to growth in net assets and total equity Liabilities and Equity Overview | Indicator | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Total current liabilities | 109,212 | 121,921 | | Total non-current liabilities | 48,519 | 54,915 | | Net assets | 331,739 | 307,928 | | Total equity | 331,739 | 307,928 | - Trade and bills payables decreased from HK$53,803 thousand at the end of 2023 to HK$46,345 thousand in mid-2024[4][18] Notes to the Interim Condensed Consolidated Financial Information Basis of Preparation and Changes in Accounting Policies The interim condensed consolidated financial information is prepared in accordance with IAS 34 and incorporates newly adopted revised IFRSs, which have no material impact on the Group's financial position or performance - Financial information is prepared in accordance with International Accounting Standard 34 Interim Financial Reporting[7] - Newly adopted revised IFRSs, including IAS 16 (Amendments), IAS 1 (Amendments), and IAS 7 & IFRS 7 (Amendments), have no impact on the Group's financial position or performance[8][9][10] Revenue Analysis Current period revenue primarily stems from product sales, with automotive beauty and maintenance products contributing the most, while Mainland China remains the main market, Japan shows significant contribution, and personal care product sales increased Revenue by Product Type | Product Type | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Automotive beauty and maintenance products | 209,847 | 208,788 | | Personal care products | 64,401 | 57,449 | | Total | 274,248 | 266,237 | Revenue by Geographical Market | Geographical Market | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Mainland China | 222,671 | 219,954 | | Japan | 31,087 | 29,631 | | Other Asia Pacific countries/regions | 7,700 | 7,911 | | Middle East | 4,040 | 2,988 | | Americas | 6,328 | 4,178 | | Other regions | 2,422 | 1,575 | | Total | 274,248 | 266,237 | - All revenue is recognized when goods are transferred at a point in time[11][12] Components of Profit Before Tax Profit before tax is primarily influenced by cost of inventories sold, depreciation, R&D expenses, employee benefit expenses, and net exchange losses, with employee benefit expenses and net exchange losses significantly increasing this period Key Deductions/Additions to Profit Before Tax | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 183,802 | 180,462 | | Depreciation of property, plant and equipment | 12,381 | 11,763 | | Research and development costs | 10,772 | 9,720 | | Employee benefit expenses | 25,241 | 22,102 | | Net exchange losses | 5,993 | 920 | | Impairment losses on financial assets / (reversal of impairment losses) | 698 | (221) | - Employee benefit expenses, including wages, salaries, and pension scheme contributions, increased from HK$22,102 thousand in 2023 to HK$25,241 thousand in 2024[13] - Net exchange losses significantly increased from HK$920 thousand in 2023 to HK$5,993 thousand in 2024[13] Income Tax Expense Current period income tax expense was HK$9,940 thousand, an increase from the prior year, with Hong Kong profits tax rate at 16.5% and a two-tiered rate of 8.25% for eligible subsidiaries Income Tax Expense Components | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Current - Mainland China current period expense | 9,898 | 9,189 | | Underprovision / (overprovision) in prior years | 153 | (1,618) | | Deferred | (111) | 410 | | Total | 9,940 | 7,981 | - Hong Kong profits tax rate remains at 16.5%, with eligible subsidiaries subject to an 8.25% two-tiered profits tax rate on the first HK$2,000,000 of assessable profits[14] Dividends The Board of Directors proposed an interim dividend of 1.42 HK cents per share for the six months ended June 30, 2024, lower than 1.72 HK cents per share in the prior year Proposed Interim Dividend | Item | 2024 (HK$ thousand) | 2023 (HK$ thousand) | | :--- | :--- | :--- | | Dividend per ordinary share | 1.42 HK cents | 1.72 HK cents | | Total dividend | 3,322 | 4,023 | Earnings Per Share Calculation Basic earnings per share are calculated based on profit attributable to owners of the parent and the weighted average number of ordinary shares outstanding, with no adjustment for diluted earnings per share due to the anti-dilutive effect of share options - Profit attributable to owners of the parent used for calculating basic and diluted earnings per share was HK$23,978 thousand (2023: HK$26,733 thousand)[16] - The weighted average number of ordinary shares outstanding was 233,917,250 shares, consistent with the prior year[16] - No adjustment was made to diluted earnings per share due to the anti-dilutive effect of unexercised share options[16] Trade and Bills Receivables As of June 30, 2024, total trade and bills receivables significantly increased to HK$59,660 thousand, with the highest proportion of amounts aged within 30 days Ageing Analysis of Trade and Bills Receivables | Ageing | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 29,666 | 17,031 | | 31 to 60 days | 20,858 | 10,451 | | 61 to 90 days | 7,295 | 5,940 | | Over 90 days | 1,841 | 2,180 | | Total | 59,660 | 35,602 | Trade and Bills Payables As of June 30, 2024, total trade and bills payables decreased to HK$46,345 thousand, with amounts aged within 30 days still representing the largest proportion Ageing Analysis of Trade and Bills Payables | Ageing | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 22,217 | 25,399 | | 31 to 60 days | 13,216 | 9,815 | | 61 to 90 days | 8,092 | 8,612 | | Over 90 days | 2,820 | 9,977 | | Total | 46,345 | 53,803 | Management Discussion and Analysis Business Review and Outlook The Group focuses on manufacturing and selling automotive beauty and maintenance products and personal care products, expanding its OBM business through distribution networks and online platforms, while continuously investing in OBM development, brand awareness, and adapting to global economic uncertainties and domestic market opportunities Business Overview The company manufactures aerosol automotive beauty and maintenance products, including cleaning, care, paints, coatings, seasonal products, and air fresheners, also engaging in personal care and household products, operating through contract manufacturing services (CMS) and original brand manufacturing (OBM) - Primary business: Manufacturing of automotive beauty and maintenance products (aerosol and non-aerosol), including cleaning, care, paints, coatings, specialty products, and air fresheners[19] - Expanded business: Design, development, manufacturing, and sales of personal care products (e.g., facial cleansers, sunscreens, deodorants) and household products[19] - Sales models: Contract Manufacturing Services (CMS) and Original Brand Manufacturing (OBM)[19] - OBM sales channels: Distributor networks and online platforms like Tmall and JD.com, with proprietary brands including Botny and ATM[19] - Strategic focus: Continuous allocation of resources to develop OBM business, increased brand awareness activities, and significant growth in online market sales[19] - New product line: Launch of the Baobaolong series of automotive beauty and maintenance products under the Botny brand to reposition the corporate image and expand the customer base[19] Operating Environment and Outlook The global economy faces high uncertainty, but China's economy grew steadily in the first half; the company monitors industry developments, strengthens its own brand promotion, and enhances market competitiveness through diversified strategies, customer management, exhibition participation, and new product launches, while addressing challenges and opportunities from aerosol product safety regulations and rising consumer environmental awareness - Global economy faces uncertainties such as trade protectionism, international conflicts, and raw material price fluctuations[20] - China's economy grew steadily in the first half, with good industrial production, external demand, and service sector demand, though recovery remains fragile[20] - Chinese government implements aerosol product safety and environmental regulations, and increasing consumer environmental awareness presents both opportunities and challenges[20] - Company strategy: Continuously adjust diversified strategies and customer management approaches, actively participate in exhibitions, launch new products, strengthen proprietary brand promotion, enhance customer relationships, and expand into new markets[20] - OBM business outlook: Cautiously optimistic about the domestic market, OBM business, and personal care product industry, with continued development through eco-friendly formulations, cost control, and brand image enhancement[20] Financial Review Current period turnover increased by 3.0%, driven by China's economic recovery and overseas sales growth; gross profit rose, but a significant increase in selling and distribution expenses led to a decrease in profit for the period, while administrative expenses and finance costs decreased due to cost control measures Turnover For the six months ended June 30, 2024, the Group's turnover was approximately HK$274.2 million, a 3.0% year-on-year increase, with slight growth from Mainland China customers and significant growth from overseas customers, mainly due to the depreciation of RMB enhancing product competitiveness Turnover Overview | Region | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Total Turnover | 274.2 | 266.2 | 3.0% | | Revenue from China customers | 222.7 | 220.0 | 1.2% | | Revenue from overseas customers | 51.6 | 46.3 | 11.4% | - China sales growth primarily due to steady economic recovery in China and effective OBM product sales strategies[21] - Overseas sales growth primarily due to the depreciation of RMB against the US dollar, enhancing product competitiveness[22] Cost of Sales Cost of sales was approximately HK$183.8 million, a 1.9% year-on-year increase, accounting for about 67.0% of turnover, primarily due to increased product sales volume and changes in product mix sales methods Cost of Sales | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Cost of sales | 183.8 | 180.5 | 1.9% | | Percentage of turnover | 67.0% | 67.8% | -0.8pp | Gross Profit and Gross Margin Gross profit was approximately HK$90.4 million, a 5.4% year-on-year increase, primarily driven by enhanced bargaining power with suppliers and a strategic focus on selling high-margin products Gross Profit | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | | Gross profit | 90.4 | 85.8 | 5.4% | - Gross profit increase primarily due to enhanced bargaining power with suppliers and a strategic focus on selling high-margin products[24] Other Income and Gains Other income and gains significantly increased by 294.5% to HK$8.8 million, primarily driven by substantial growth in government grants, service income, and interest income Other Income and Gains | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Other income and gains | 8.8 | 2.2 | 294.5% | - Government grants increased by approximately HK$2.7 million, service income by approximately HK$2.5 million, and interest income by approximately HK$0.6 million[25] Selling and Distribution Expenses Selling and distribution expenses significantly increased by 39.6% to HK$23.5 million, primarily due to increased advertising and promotion costs aimed at enhancing the e-commerce platform Selling and Distribution Expenses | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Selling and distribution expenses | 23.5 | 16.8 | 39.6% | | Advertising and promotion costs | 9.5 | 3.2 | 196.9% | - Advertising and promotion costs increased by approximately HK$9.5 million to enhance the e-commerce platform[26] Administrative Expenses Administrative expenses decreased by 5.7% to HK$23.1 million, primarily due to the company's implementation of stringent cost control measures Administrative Expenses | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Administrative expenses | 23.1 | 24.5 | -5.7% | Finance Costs Finance costs significantly decreased by 31.5% to HK$1.0 million, primarily due to a reduction in the average outstanding balance of bank loans Finance Costs | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Finance costs | 1.0 | 1.4 | -31.5% | Profit for the Period Net profit attributable to owners of the parent was approximately HK$24.0 million, a 10.3% year-on-year decrease, influenced by improved gross margin, high-margin product strategy, increased selling and distribution expenses, and stringent cost control measures Net Profit Attributable to Owners of the Parent | Indicator | 2024 (HK$ million) | 2023 (HK$ million) | Year-on-year Change (%) | | :--- | :--- | :--- | :--- | | Net profit attributable to owners of the parent | 24.0 | 26.7 | -10.3% | - Net profit decrease is primarily due to the combined impact of improved gross margin, high-margin product strategy, a significant increase in selling and distribution expenses, and stringent cost control measures[29] Treasury Policy and Liquidity The Group aims to maintain sufficient cash and cash equivalents to meet short-term financing needs and prudently manage borrowing costs; as of June 30, 2024, net current assets and current ratio improved, while bank borrowings and gearing ratio decreased Treasury Policy The Group's treasury policy aims to effectively control treasury operations and reduce borrowing costs, focusing on maintaining sufficient cash and cash equivalents and considering diverse financing sources to ensure efficient utilization of financial resources - Treasury policy objectives: Effectively control treasury operations and reduce borrowing costs[30] - Strategy: Maintain sufficient cash and cash equivalents, consider diverse financing sources, and ensure efficient utilization of financial resources[30] Liquidity and Capital Resources As of June 30, 2024, the Group's net current assets increased to HK$113.2 million, and the current ratio improved to 2.0; cash and cash equivalents (including pledged bank deposits) totaled HK$114.8 million, denominated in various currencies including RMB, USD, and JPY Liquidity Overview | Indicator | June 30, 2024 (HK$ million) | December 31, 2023 (HK$ million) | | :--- | :--- | :--- | | Net current assets | 113.2 | 84.0 | | Cash and cash equivalents (incl. pledged) | 114.8 | 119.7 | | Current ratio | 2.0 | 1.7 | - Cash and cash equivalents are primarily denominated in Renminbi, US dollars, Japanese Yen, Thai Baht, Hong Kong dollars, and Indian Rupees[30] Borrowings and Pledged Assets As of June 30, 2024, bank borrowings decreased to HK$28.2 million, secured by property, plant and equipment and leasehold land, with HK$173.3 million in unutilized banking facilities available Borrowings and Unutilized Facilities | Indicator | June 30, 2024 (HK$ million) | December 31, 2023 (HK$ million) | | :--- | :--- | :--- | | Bank borrowings | 28.2 | 35.3 | | Unutilized banking facilities available | 173.3 | 351.4 | - Bank borrowings are secured by property, plant and equipment and leasehold land, maturing between 2024 and 2027[31] Gearing Ratio As of June 30, 2024, the gearing ratio (calculated as total debt divided by equity attributable to owners of the Company) decreased to 5.1%, an improvement from 8.0% at the end of 2023 Gearing Ratio | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Gearing ratio | 5.1% | 8.0% | Capital Structure As of June 30, 2024, the total number of issued shares of the Company remained at 233,917,250, consistent with the end of 2023 Total Number of Issued Shares | Date | Total Number of Issued Shares | | :--- | :--- | | June 30, 2024 | 233,917,250 shares | | December 31, 2023 | 233,917,250 shares | Foreign Exchange and Currency Risk The Group faces foreign exchange risk from currency mismatch between USD-denominated revenue and RMB-denominated production costs, as well as exchange rate fluctuation risk due to time lag between invoicing and settlement for export sales; no foreign currency forward contracts were entered into during the period - Approximately 18.8% of revenue is denominated in USD, while over 90% of production costs are settled in RMB, creating a currency mismatch[34] - Export sales are subject to foreign exchange risk due to the time lag between invoicing and final settlement by customers[34] - No foreign currency forward contracts were entered into for the six months ended June 30, 2024[34] Employees and Remuneration Policy As of June 30, 2024, the Group's employee headcount increased to 468, with staff costs (excluding pension contributions) of approximately HK$23.3 million; remuneration policy is based on market terms, individual performance, and experience, with year-end bonuses and share options to attract and retain talent Employees and Staff Costs | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Number of employees | 468 | 459 | | Staff costs (excl. pension) | HK$23.3 million | HK$20.2 million | - Remuneration policy: Determined by reference to market terms, individual employee performance, qualifications, and experience[35] - Incentive mechanisms: Year-end bonuses for outstanding performers and grant of share options to attract and retain qualified employees[35] Significant Matters During the reporting period, the Group had no material investments, acquisitions, or disposals, nor any new future plans for material investments or capital assets; capital commitments primarily related to plant and machinery, with no significant changes in contingent liabilities or dealings in listed securities Material Investments As of June 30, 2024, the Group had no material investments - As of June 30, 2024, the Group had no material investments[36] Material Acquisitions and Disposals For the six months ended June 30, 2024, the Group had no acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group had no acquisitions or disposals of subsidiaries, associates, or joint ventures[37] Future Plans for Material Investments or Capital Assets Except as disclosed in the prospectus, as of June 30, 2024, the Group had no other approved plans for material investments or capital assets - Except as disclosed in the prospectus, the Group had no other approved plans for material investments or capital assets[38] Capital Commitments As of June 30, 2024, the Group's capital commitments primarily related to plant and machinery, amounting to approximately HK$1.3 million, a significant decrease from HK$6.0 million at the end of 2023 Capital Commitments | Item | June 30, 2024 (HK$ million) | December 31, 2023 (HK$ million) | | :--- | :--- | :--- | | Commitments for plant and machinery | 1.3 | 6.0 | Contingent Liabilities As of June 30, 2024, the Group had no material contingent liabilities - As of June 30, 2024, the Group had no material contingent liabilities[39] Dealings in Listed Securities For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[39] Events After Reporting Period No significant events occurred after June 30, 2024, and up to the date of this report - No significant events occurred after the reporting period and up to the date of this report[39] Other Information Board Committees The Company has an Audit Committee, Remuneration Committee, and Nomination Committee, all comprising a majority of independent non-executive directors, ensuring independent and effective corporate governance, and fulfilling their respective duties including financial statement review, remuneration policy recommendations, and board composition assessment Audit Committee The Audit Committee, composed of three independent non-executive directors, advises on and monitors the appointment of external auditors, financial statement review, financial reporting procedures, and risk management/internal control systems, having reviewed accounting principles, policies, and financial statements for the period - Composition: Three independent non-executive directors, Mr. Poon Tak Ching (Chairman), Mr. Li Yiu Pui, and Mr. Pang Cheung Wai[40] - Responsibilities: Advise on and monitor the appointment of external auditors, review of financial statements, financial reporting procedures, risk management, and internal control systems[40] - Reviewed the Group's accounting principles, practices, financial statements, and related materials for the period[40] Remuneration Committee The Remuneration Committee, comprising one executive director and three independent non-executive directors, is responsible for recommending remuneration policies and structures for directors and senior management, and approving the remuneration packages of individual executive directors - Composition: Four members, including one executive director Ms. Gao Xiumei and three independent non-executive directors Mr. Pang Cheung Wai (Chairman), Mr. Li Yiu Pui, and Mr. Poon Tak Ching[41] - Responsibilities: Recommend remuneration policies and structures for directors and senior management, and approve remuneration packages for individual executive directors[41] Nomination Committee The Nomination Committee, consisting of one executive director and three independent non-executive directors, reviews board composition, formulates director nomination and appointment procedures, assesses the independence of independent non-executive directors, and develops succession plans for executive directors and senior executives - Composition: Four members, including one executive director Ms. Gao Xiumei and three independent non-executive directors Mr. Li Yiu Pui (Chairman), Mr. Poon Tak Ching, and Mr. Pang Cheung Wai[42] - Responsibilities: Review board composition, formulate procedures for director nomination and appointment, assess the independence of independent non-executive directors, and develop succession plans for executive directors and senior executives[42] Corporate Governance The Company generally complied with the Corporate Governance Code during the reporting period, despite the Chairman and Chief Executive Officer positions being held by the same person, an arrangement the Board believes facilitates unified leadership and efficient decision-making with sufficient checks and balances; the Company maintained a sufficient public float, and directors' securities transactions complied with the standard code Compliance with Corporate Governance Code The Company complied with the Corporate Governance Code during the reporting period, except for the Chairman and Chief Executive Officer positions being held by Ms. Gao Xiumei, which does not comply with Code Provision C.2.1; the Board believes this arrangement facilitates unified leadership, efficient decision-making, and execution, with sufficient checks and balances from three independent non-executive directors - Compliance status: The Company has complied with the Corporate Governance Code, except for the Chairman and Chief Executive Officer positions being held by the same person[43] - Exception: Ms. Gao Xiumei holds both Chairman and Chief Executive Officer positions, not complying with Code Provision C.2.1[43] - Board's explanation: This arrangement facilitates unified leadership, efficient decision-making, and execution, with sufficient checks and balances provided by the three independent non-executive directors[43] Sufficiency of Public Float For the six months ended June 30, 2024, and up to the date of this report, the Company has maintained a sufficient public float of not less than 25% of its total issued shares as required by the Listing Rules - The Company has maintained a sufficient public float of not less than 25% of its total issued shares as required by the Listing Rules[44] Standard Code for Securities Transactions by Directors The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions, and all directors confirmed compliance with this code during the reporting period - The Company has adopted the Standard Code as set out in Appendix C3 of the Listing Rules as its code of conduct for directors' securities transactions[45] - All directors confirmed compliance with the required standards set out in the Standard Code during the reporting period[45] Dividend Distribution The Board of Directors has resolved to declare an interim dividend of 1.42 HK cents per share for the six months ended June 30, 2024, to be paid on or about October 29, 2024 Interim Dividend | Item | 2024 (HK cents/share) | 2023 (HK cents/share) | | :--- | :--- | :--- | | Proposed interim dividend | 1.42 | 1.72 | - The dividend will be paid on or about October 29, 2024, to shareholders whose names appear on the Company's register of members on September 10, 2024[46] Closure of Register of Members To be eligible for the interim dividend, the Company's register of members will be closed from September 5, 2024, to September 10, 2024, with all share transfer documents required to be lodged by 4:30 p.m. on September 4, 2024 - Dates for closure of register of members: September 5, 2024, to September 10, 2024 (both days inclusive)[47] - Deadline for lodging share transfer documents: 4:30 p.m. on September 4, 2024[47] Publication of Results This interim results announcement has been published on the HKEX website and the Company's website, and the interim report will be dispatched to shareholders and published on relevant websites in due course - The interim results announcement has been published on the HKEX website (www.hkex.com.hk) and the Company's website (http://www.botny.com)[48](index=48&type=chunk) - The interim report will be dispatched to the Company's shareholders and published on the HKEX and Company websites in due course[48] Board of Directors As of the date of this announcement, the Board of Directors comprises four executive directors and three independent non-executive directors - Executive Directors: Ms. Gao Xiumei, Ms. Lian Xinli, Mr. Lian Xinglong, and Mr. Yang Xiaoye[49] - Independent Non-executive Directors: Mr. Li Yiu Pui, Mr. Poon Tak Ching, and Mr. Pang Cheung Wai[49]