同得仕(集团)(00518) - 2025 - 年度业绩

Performance Announcement This report presents the Group's audited annual results, including financial statements, management discussion, and other corporate governance information for the year ended March 31, 2025 Consolidated Financial Statements The Group's consolidated financial statements for the year ended March 31, 2025, show a significant increase in turnover but a narrowed loss compared to the previous year, with a slight decrease in net current assets and total equity attributable to owners Consolidated Statement of Profit or Loss This year's turnover significantly increased by 29.5%, despite a 2.2 percentage point decrease in gross profit margin, with both loss before tax and loss for the year narrowing compared to the prior period Key Data from Consolidated Statement of Profit or Loss | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Turnover | 669,450 | 516,783 | | Cost of Sales | (547,205) | (410,964) | | Gross Profit | 122,245 | 105,819 | | Loss Before Tax | (9,872) | (13,310) | | Loss for the Year | (11,070) | (13,989) | | Loss Attributable to Owners of the Company | (9,931) | (12,796) | - This year's turnover increased by 29.5% year-on-year[3] - Loss for the year narrowed to HK$11,070 thousand from HK$13,989 thousand in the prior year[3] Consolidated Statement of Profit or Loss and Other Comprehensive Income Total comprehensive expenses for the year significantly decreased, primarily due to a shift from exchange losses to gains and revaluation gains on properties Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Loss for the Year | (11,070) | (13,989) | | Exchange Differences on Translation of Foreign Operations | 446 | (2,446) | | Gain on Revaluation of Investment Properties | 4,507 | – | | Other Comprehensive Income/(Expense) for the Year | 4,953 | (2,446) | | Total Comprehensive Expense for the Year | (6,117) | (16,435) | - Total comprehensive expenses for the year significantly decreased to HK$6,117 thousand, a notable improvement from HK$16,435 thousand in the prior year[5] Consolidated Statement of Financial Position As of March 31, 2025, the Group's non-current and current assets slightly decreased, while current liabilities slightly increased, resulting in a reduction in both net current assets and total assets less current liabilities Key Data from Consolidated Statement of Financial Position | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Non-current Assets | 84,296 | 84,955 | | Current Assets | 468,428 | 472,815 | | Current Liabilities | 174,245 | 169,805 | | Net Current Assets | 294,183 | 303,010 | | Equity Attributable to Owners of the Company | 392,195 | 399,428 | | Non-controlling Interests | (14,490) | (13,351) | | Total Equity | 377,705 | 386,077 | - Net current assets decreased from HK$303,010 thousand in 2024 to HK$294,183 thousand in 2025[6] - Equity attributable to owners of the Company decreased from HK$399,428 thousand in 2024 to HK$392,195 thousand in 2025[7] Notes to the Financial Statements This section details the basis of financial statement preparation, application of new accounting standards, turnover and segment information, various expenses and tax charges, dividend policy, loss per share calculation, trade receivables and payables details, and share capital structure Basis of Preparation The Group's consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance, presented in HK dollars despite the operating currency being US dollars - Consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and Part 9 of the Hong Kong Companies Ordinance (Cap. 622)[8] - The Company's operating currency is US dollars, but for shareholders' convenience, consolidated financial statements are presented in HK dollars[8] Application of New Hong Kong Financial Reporting Standards Several amendments to Hong Kong Financial Reporting Standards were first applied this year with no significant impact on the Group's financial position or performance, while HKFRS 18, effective in the future, is expected to have extensive presentation and disclosure impacts - Several amendments to Hong Kong Financial Reporting Standards were applied this year with no material impact on financial position or performance[9] - HKFRS 18 will replace HKAS 1 and is expected to have extensive impacts on financial statement presentation and disclosure[10] Turnover and Segment Information The Group's principal business involves the manufacturing and sale of apparel products, segmented into Asia, North America, Europe, and other regions, with this year's significant turnover growth primarily driven by the Asian and North American markets - The Group's principal businesses are the manufacturing and sale of apparel products, and apparel product retail[11] - The Group is divided into three operating segments: Asia, North America, and Europe and Other Regions[11] Turnover and Segment Profit/(Loss) by Region | Region | 2025 Turnover (HK$ Thousand) | 2024 Turnover (HK$ Thousand) | 2025 Segment Profit/(Loss) (HK$ Thousand) | 2024 Segment Profit (HK$ Thousand) | | :--- | :--- | :--- | :--- | :--- | | Asia | 332,464 | 277,712 | 13,279 | 11,977 | | North America | 311,895 | 220,875 | 1,668 | 1,385 | | Europe and Other | 25,091 | 18,196 | (585) | 62 | | Consolidated | 669,450 | 516,783 | 14,362 | 13,424 | External Customer Revenue by Delivery Location | Region | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | China | 308,470 | 258,911 | | USA | 176,066 | 135,620 | | Canada | 135,829 | 85,255 | | Other | 49,085 | 36,997 | | Total | 669,450 | 516,783 | - One North American customer contributed over 10% of total sales this year, amounting to approximately HK$149 million[16] Items Deducted from Loss Before Tax and Tax Expense Total employee benefit expenses increased this year, and tax expenses rose due to higher current taxes in Hong Kong and China, despite deferred tax adjustments Items Deducted from Loss Before Tax | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Directors' Remuneration | 8,507 | 10,453 | | Other Employee Benefit Expenses | 127,469 | 116,869 | | Total Employee Benefit Expenses | 135,976 | 127,322 | | Auditor's Remuneration | 1,127 | 1,096 | | Inventories Recognised as Expense | 547,205 | 410,964 | | Depreciation of Property, Plant and Equipment | 4,266 | 6,631 | | Depreciation of Right-of-use Assets | 4,643 | 4,914 | | Net Exchange Loss | 2 | 715 | Tax Expense | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current Tax (Hong Kong) | (1,081) | (873) | | Current Tax (China) | (201) | (196) | | Over-provision in Prior Years | 108 | 227 | | Deferred Tax | (24) | 163 | | Total Tax Expense | (1,198) | (679) | - Three PRC subsidiaries qualified as small-profit enterprises this year and enjoyed preferential tax treatment[18] Dividends The Board recommends a final dividend of HK 0.5 cents per share for the year ended March 31, 2025, consistent with the previous year - The Board recommends a final dividend of HK 0.5 cents per share, consistent with 2024[19] - The proposed final dividend will be distributed on September 22, 2025[19] Loss Per Share - Basic and Diluted Basic and diluted loss per share for the year narrowed to HK 2.2 cents, compared to HK 2.8 cents in the prior year Loss Per Share - Basic and Diluted | Metric | 2025 (HK cents) | 2024 (HK cents) | | :--- | :--- | :--- | | Loss Per Share - Basic and Diluted | (2.2) | (2.8) | - Loss attributable to owners of the Company for the year was HK$9,931 thousand, compared to HK$12,796 thousand in the prior year[20] - Diluted loss per share is not presented as there are no outstanding potential ordinary shares[20] Trade and Other Receivables As of March 31, 2025, total trade and bills receivables increased, primarily concentrated in the 0-30 day aging category Aging Analysis of Trade and Bills Receivables | Aging | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0–30 days | 87,794 | 56,249 | | 31–60 days | 2,433 | 24,339 | | 61–90 days | 12,897 | 2,861 | | Over 90 days | 1,072 | 2,930 | | Total | 104,196 | 86,379 | - The carrying amount of trade and bills receivables increased from HK$86,379 thousand in 2024 to HK$104,196 thousand in 2025[21] Trade and Other Payables As of March 31, 2025, total trade and bills payables decreased, mainly due to reductions in the 0-30 day and 31-60 day aging categories Aging Analysis of Trade and Bills Payables | Aging | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0–30 days | 34,485 | 39,026 | | 31–60 days | 5,292 | 8,491 | | 61–90 days | 4,091 | 11,081 | | Over 90 days | 13,619 | 7,842 | | Total | 57,487 | 66,440 | - Total trade and bills payables decreased from HK$66,440 thousand in 2024 to HK$57,487 thousand in 2025[22] Share Capital As of March 31, 2025, the number and value of the Company's issued and fully paid ordinary shares remained unchanged Share Capital Information | Item | Quantity | Value (HK$ Thousand) | | :--- | :--- | :--- | | Issued and Fully Paid Ordinary Shares | 451,067,557 | 254,112 | Management Discussion and Analysis This section provides a detailed review of the Group's operating results and financial performance amidst macroeconomic challenges, covering turnover growth, gross profit margin decline, expense control, market sales, and retail business development, alongside future strategic outlook, capital expenditure, liquidity, and risk management policies Operating Results and Financial Review The Group achieved significant turnover growth despite macroeconomic uncertainties, but gross profit margin declined due to pricing pressure and rising costs, while distribution expenses increased, administrative expenses decreased, overall loss narrowed, and both inventory and trade receivables turnover improved Turnover Total turnover for the year reached HK$669.5 million, a 29.5% year-on-year increase, primarily driven by robust growth in international export markets, the China domestic market, and mainland China retail business Turnover Comparison | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Turnover | 669,450 | 516,783 | - Total turnover increased by 29.5% year-on-year, reaching HK$669.5 million[27] - Growth is attributed to robust sales increases in key international export markets, the China domestic market, and mainland China retail business[27] Gross Profit Margin This year's gross profit margin decreased by 2.2 percentage points to 18.3%, mainly due to pricing pressure in the manufacturing segment and rising production and procurement costs Gross Profit Margin Comparison | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Turnover | 669,450 | 516,783 | | Cost of Sales | (547,205) | (410,964) | | Gross Profit | 122,245 | 105,819 | | Gross Profit Margin (%) | 18.3% | 20.5% | - Gross profit margin decreased by 2.2 percentage points to 18.3%[28] - The primary reasons are pricing pressure in the manufacturing segment and rising production and procurement costs in an inflationary environment[28] Distribution Expenses Distribution expenses increased by 19.0% year-on-year to HK$65.8 million, primarily due to higher advertising and promotion fees and store management fees driven by online sales growth, and additional air freight costs from inefficient logistics in Vietnam Distribution Expenses Comparison | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (HK$ Thousand) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Advertising and Promotion Fees | 19,073 | 15,960 | 3,113 | 19.5% | | Freight and Handling Charges | 6,515 | 3,160 | 3,355 | 106.2% | | Store Management Fees | 14,637 | 8,824 | 5,813 | 65.9% | | Store Rental and Operating Expenses | 8,586 | 10,296 | (1,710) | (16.6%) | | Staff Costs | 12,017 | 12,069 | (52) | (0.4%) | | Other Distribution Expenses | 4,999 | 4,998 | 1 | 0.0% | | Total | 65,827 | 55,307 | 10,520 | 19.0% | - Distribution expenses increased by 19.0% year-on-year to HK$65.8 million[29] - Freight and handling charges increased by HK$3.4 million, mainly due to additional air freight costs resulting from inefficient logistics in Vietnam[30] Administrative Expenses Administrative expenses decreased by 4.4% year-on-year to HK$73.4 million, primarily benefiting from the Group's overall cost control measures implemented amidst sales growth Administrative Expenses Comparison | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (HK$ Thousand) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Auditor's Remuneration | 1,127 | 1,096 | 31 | 2.8% | | Depreciation and Amortisation | 3,411 | 5,509 | (2,098) | (38.1%) | | Entertainment and Travel Expenses | 3,362 | 2,941 | 421 | 14.3% | | Exchange Loss | 2 | 715 | (713) | (99.7%) | | Legal and Professional Fees | 2,535 | 2,976 | (441) | (14.8%) | | Staff Costs | 52,384 | 53,380 | (996) | (1.9%) | | Office Expenses | 4,232 | 3,875 | 357 | 9.2% | | Other Administrative Expenses | 6,346 | 6,306 | 40 | 0.6% | | Total | 73,399 | 76,798 | (3,399) | (4.4%) | - Administrative expenses decreased by 4.4% year-on-year to HK$73.4 million[31] - The decrease is primarily attributable to the Group's overall cost control measures implemented amidst significant sales growth[31] Finance Costs Finance costs increased to HK$3.8 million this year, primarily due to higher total turnover Finance Costs Comparison | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Finance Costs | 3,814 | 3,326 | - Finance costs increased to HK$3.8 million, mainly due to higher total turnover[33] Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) The Group's EBITDA for the year increased to HK$2.9 million, indicating improved operating efficiency EBITDA Comparison | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Loss for the Year | (11,070) | (13,989) | | Finance Costs | 3,814 | 3,326 | | Tax Expense | 1,198 | 679 | | Depreciation | 8,909 | 11,545 | | EBITDA | 2,851 | 1,561 | - EBITDA increased to HK$2.9 million, compared to HK$1.6 million in the prior year[34] Operating Loss Pre-tax operating loss for the year narrowed to HK$10.3 million, an improvement from the prior year Operating Loss Comparison | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Loss Before Tax | (9,872) | (13,310) | | Less: Increase in Fair Value of Investment Properties | 387 | 2,287 | | Operating Loss Before Tax | (10,259) | (15,597) | - Pre-tax operating loss narrowed to HK$10.3 million, compared to HK$15.6 million in the prior year[35] Loss Before Tax Loss before tax for the year was HK$9.9 million, a reduction from HK$13.3 million in the prior year - Loss before tax for the year was HK$9.9 million, a reduction from HK$13.3 million in the prior year[36] Loss Per Share Loss per share for the year narrowed to HK 2.2 cents, compared to HK 2.8 cents in the prior year - Loss per share for the year narrowed to HK 2.2 cents, compared to HK 2.8 cents in the prior year[37] Inventory Turnover Period Inventory turnover period decreased by 13 days to 58 days this year, primarily due to lower sales in the prior corresponding period Inventory Turnover Period Comparison | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Inventory Turnover Period (days) | 58 | 71 | - Inventory turnover period decreased by 13 days to 58 days[38] - The decrease is primarily due to lower sales in the prior corresponding period[39] Trade Receivables Turnover Period Trade receivables turnover period decreased by 4 days to 57 days this year Trade Receivables Turnover Period Comparison | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Trade Receivables Turnover Period (days) | 57 | 61 | - Trade receivables turnover period decreased by 4 days to 57 days[40] Other Receivables Total other receivables slightly increased, primarily driven by growth in other tax receivables Other Receivables Comparison | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (HK$ Thousand) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Deposits Paid to Suppliers | 10,793 | 10,756 | 37 | 0.3% | | Other Tax Receivables | 2,083 | 1,503 | 580 | 38.6% | | Prepayments | 1,201 | 1,512 | (311) | (20.6%) | | Rental and Utilities Deposits | 1,142 | 1,087 | 55 | 5.1% | | Other | 2,585 | 2,659 | (74) | (2.8%) | | Total | 17,804 | 17,517 | 287 | 1.6% | - Total other receivables slightly increased by 1.6% to HK$17.8 million[41] Other Payables and Contract Liabilities Total other payables and contract liabilities decreased by 13.0%, mainly due to reductions in accrued subcontracting and processing fees, franchisee deposits, and other accrued expenses, despite a significant increase in contract liabilities Other Payables and Contract Liabilities Comparison | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (HK$ Thousand) | Percentage Change | | :--- | :--- | :--- | :--- | :--- | | Accrued Subcontracting and Processing Fees | 3,076 | 8,727 | (5,651) | (64.8%) | | Franchisee Deposits | 839 | 1,130 | (291) | (25.8%) | | Other Tax Payables | 323 | 800 | (477) | (59.6%) | | Other Accrued Expenses and Receipts in Advance | 5,552 | 9,360 | (3,808) | (40.7%) | | Accrued Wages | 9,812 | 9,520 | 292 | 3.1% | | Contract Liabilities | 10,905 | 5,076 | 5,829 | 114.8% | | Other | 9,889 | 11,808 | (1,919) | (16.3%) | | Total | 40,396 | 46,421 | (6,025) | (13.0%) | - Total other payables and contract liabilities decreased by 13.0% to HK$40.4 million[42] - Contract liabilities significantly increased by 114.8% to HK$10.9 million[42] Business Review The Group demonstrated resilient operating performance amidst a volatile global environment, achieving sales growth across all business segments through customer-centric and value-focused strategies, particularly with sustained demand in North America and development in China's domestic manufacturing and retail businesses Overall Business Performance The Group achieved resilient operating performance amidst macroeconomic uncertainties through rigorous execution and strategic agility, strategically shifting its focus to Canada and other lower-risk international markets - The Group adopted proactive measures, strategically shifting its focus to Canada and other lower-risk international markets to broaden geographical coverage[43] - The Vietnam factory incurred additional air freight costs due to temporary capacity constraints and inefficient logistics, while double-digit minimum wage increases raised production costs[44] - China's domestic manufacturing services focused on Chinese brand customers, adopting agile small-batch production models and securing new business from emerging local brands[44] Asia Market Sales Asia market turnover grew by 19.7% to HK$332.5 million, accounting for 49.7% of total turnover, with mainland China being the largest contributor; the Group achieved strong online sales growth through high-quality, competitively priced apparel and digital transformation strategies - Asia market turnover grew by 19.7% to HK$332.5 million, accounting for 49.7% of the Group's total turnover[45] - Mainland China contributed HK$308.5 million, representing 92.8% of regional total sales[45] - Online sales maintained strong growth, with total retail sales increasing by 15.8% year-on-year, benefiting from e-commerce platform expansion and live streaming, social commerce interactions[46] North America Market Sales North America market sales significantly increased by 41.2% to HK$311.9 million, representing 46.6% of total turnover, with US sales up 29.8% and Canadian sales surging 59.3%, driven by rebounding consumer demand, the end of destocking cycles, and tariff expectations - Exports to North America increased by 41.2% to HK$311.9 million, representing 46.6% of the Group's total turnover[48] - US market sales amounted to HK$176.1 million, a year-on-year increase of 29.8%[48][49] - Canadian sales performed even stronger, surging by 59.3% year-on-year to HK$135.8 million[49] Europe and Other Market Sales Sales in Europe and other international markets increased by 37.9% to HK$25.1 million, demonstrating the effectiveness of the Group's geographical diversification strategy - Sales in Europe and other international markets increased by 37.9% to HK$25.1 million[50] Retail Business Despite a subdued consumer environment in mainland China, the Group's total retail sales grew by 15.8% to HK$233.6 million, primarily driven by online channels, achieving improved sales efficiency and profitability through enhanced e-commerce technology, omnichannel infrastructure, live streaming, and social commerce strategies - Total retail sales grew by 15.8% to HK$233.6 million, primarily driven by sustained growth in online channels[51] - The Group strengthened e-commerce technology and omnichannel infrastructure, leveraging live streaming and social commerce strategies to achieve multi-fold revenue growth[53] - Retail segment operating profit improved to HK$9.6 million, compared to HK$8.5 million in the prior year[53] Outlook Facing macroeconomic headwinds and trade policy uncertainties, the Group will refine its business model by enhancing core capabilities, strengthening customer relationships, and expanding beyond the US market, while also bolstering Asia Pacific and European business development and continuing to improve its digital-first retail model towards higher-margin and value-added services - The Group will strengthen its local procurement network in Vietnam and continue to focus on stringent cost control, resource optimization, and operational efficiency enhancement[54] - Internationally, the Group will strengthen business development in Asia Pacific (especially Japan and Australia) and Europe, actively participating in global trade exhibitions[55] - Domestically, the Group will continue to explore growth opportunities in the Greater China market, improve its digital-first retail model, and prioritize live streaming and social commerce development[56] - Domestic production and sales capabilities will be repositioned towards higher-margin and value-added services, such as design and vertically integrated solutions[57] Capital Expenditure Capital expenditure for the year was HK$3.1 million, primarily for routine replacement and upgrade of production facilities and leasehold improvements Capital Expenditure Comparison | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Capital Expenditure | 3,100 | 2,100 | - Capital expenditure for the year was HK$3.1 million, an increase from HK$2.1 million in the prior year[58] Liquidity and Financial Resources The Group maintained a sound financial position, with a slight decrease in cash levels and an increase in total bank borrowings, resulting in a gearing ratio of 19.6% Liquidity and Financial Resources Comparison | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Cash Level | 240,500 | 269,300 | | Pledged Bank Deposits | 104,000 | 101,100 | | Total Bank Borrowings | 74,100 | 51,400 | | Gearing Ratio | 19.6% | N/A | - As of March 31, 2025, cash levels were HK$240.5 million, including HK$104 million in pledged bank deposits[59] - Total bank borrowings increased to HK$74.1 million, with a gearing ratio of 19.6%[59] Financial Policies The Group continues to adopt a prudent policy to hedge exchange rate and interest rate risks, considering foreign exchange risk to be low and entering into forward contracts when appropriate to mitigate risks - The Group adopts a prudent policy to hedge exchange rate and interest rate risks related to its core business[62] - Revenue and costs are denominated in Renminbi, US dollars, HK dollars, Vietnamese Dong, and Euros[62] Foreign Exchange Risk The Group is primarily exposed to currency risks from US dollars, Renminbi, and Vietnamese Dong, regularly reviewing net foreign exchange exposure and entering into hedging arrangements when necessary - The Group is exposed to currency risks from US dollars, Renminbi, and Vietnamese Dong[63] - The HK dollar is pegged to the US dollar, resulting in minimal related foreign exchange risk[63] - The Group regularly reviews its net foreign exchange exposure and enters into currency hedging arrangements when necessary[63] Interest Rate Risk The Group is primarily exposed to interest rate risk from interest-bearing borrowings, regularly monitoring to ensure no excessive material interest rate fluctuation risk and considering hedging when necessary - The Group is primarily exposed to interest rate risk from interest-bearing borrowings, with floating-rate borrowings presenting cash flow interest rate risk[64] - The Group regularly monitors interest rate risk and considers hedging measures when necessary[64] Human Resources As of March 31, 2025, the Group employed approximately 1,500 staff, with total employee benefit expenses of HK$136 million for the year, and remuneration determined by market terms and individual performance - As of March 31, 2025, the Group employed approximately 1,500 staff[65] Total Employee Benefit Expenses Comparison | Metric | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total Employee Benefit Expenses | 136,000 | 127,300 | - Employee remuneration is determined by market terms, individual performance, qualifications, and experience, with year-end discretionary bonuses awarded for outstanding performance[66] Other Information This section includes the preliminary announcement statement of audited annual results, securities trading activities, Audit Committee responsibilities, compliance with corporate governance and directors' securities transaction standard code, and annual report publication information Preliminary Announcement of Audited Annual Results The financial information in this announcement is derived from the Company's statutory annual consolidated financial statements, and the auditor's report is unqualified - The financial information contained in this announcement is derived from the Company's statutory annual consolidated financial statements[67] - The auditor's report is unqualified and contains no emphasis of matter paragraphs[68] Purchase, Sale or Redemption of the Company's Listed Securities Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year - Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the year[69] Audit Committee The Audit Committee, in conjunction with management and external auditors, reviewed accounting policies, risk management, internal controls, and financial reporting matters, and also reviewed the audited consolidated financial statements for the year - The Audit Committee reviewed the accounting policies and practices adopted by the Group and discussed risk management, internal controls, and financial reporting matters[70] - The Audit Committee reviewed the Group's audited consolidated financial statements for the year[70] Corporate Governance The Company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited throughout the year - The Company has complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the year[71] Standard Code for Securities Transactions by Directors The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with the Code throughout the year - The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules as the code for Directors' securities transactions[72] - All Directors confirmed compliance with the standards set out in the Standard Code throughout the year[72] Publication of Annual Results and Annual Report This results announcement has been published on the Company's and HKEX websites, and the annual report containing all required information will be dispatched to shareholders and published on the aforementioned websites in due course - This results announcement is published on the Company's website (www.tungtex.com) and The Stock Exchange of Hong Kong Limited's website (www.hkexnews.hk)[73](index=73&type=chunk) - The annual report containing all information required by the Listing Rules will be dispatched to shareholders and published on the aforementioned websites in due course[73] Board of Directors As of the announcement date, the Company's Board of Directors comprises three executive directors and four independent non-executive directors - As of the announcement date, the Company's Executive Directors are Mr. Tung Hiu Man, Mr. Tung Chung Man, and Mr. Tung Wai Man[74] - The Independent Non-executive Directors are Mr. Cheung Chung Ki, Mr. Yuen Kei Lok, Mr. Yu Wing Sang, and Ms. Li Siu Mei[74]