万成集团股份(01451) - 2025 - 中期业绩

Key Financial Data and Ratios This section provides an overview of Main Success Group's unaudited key financial data and ratios for the six months ended June 30, 2025, showing slight revenue growth but declines in gross profit, operating profit, and profit attributable to equity holders, with no interim dividend declared for the period Key Financial Data and Ratios (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 181,244 | 178,986 | +1.26% | | Gross Profit | 45,383 | 49,467 | -8.26% | | Gross Profit Margin | 25.0% | 27.6% | -2.6 ppts | | Operating Profit | 19,837 | 24,233 | -18.14% | | Profit Attributable to Equity Holders | 15,554 | 18,967 | -18.00% | | Basic Earnings Per Share (HK Cents) | 7.75 | 9.48 | -18.30% | | Interim Dividend Per Share (HK Cents) | — | 3 | -100% | | Interim Special Dividend Per Share (HK Cents) | — | 7 | -100% | Condensed Consolidated Interim Financial Statements This section presents the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2025, including the statements of profit or loss, comprehensive income, financial position, changes in equity, and cash flows, offering a detailed overview of the Group's financial performance and condition during the period Condensed Consolidated Interim Statement of Profit or Loss For the six months ended June 30, 2025, the Group's revenue slightly increased, but gross profit, operating profit, and profit for the period all declined, primarily due to increased cost of sales and higher administrative expenses Condensed Consolidated Interim Statement of Profit or Loss Key Data (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 181,244 | 178,986 | +1.26% | | Cost of Sales | (135,861) | (129,519) | +4.90% | | Gross Profit | 45,383 | 49,467 | -8.26% | | Operating Profit | 19,837 | 24,233 | -18.14% | | Profit for the Period | 15,554 | 18,967 | -18.00% | Condensed Consolidated Interim Statement of Comprehensive Income For the six months ended June 30, 2025, the Group's total comprehensive income for the period was HK$19,301 thousand, primarily benefiting from profit for the period and a shift from a loss to a gain in currency translation differences Condensed Consolidated Interim Statement of Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Profit for the Period | 15,554 | 18,967 | -18.00% | | Currency Translation Differences | 3,747 | (2,642) | From loss to profit | | Total Comprehensive Income for the Period | 19,301 | 16,325 | +18.23% | Condensed Consolidated Interim Statement of Financial Position As of June 30, 2025, the Group's total assets and total equity both decreased, and net current assets also declined, mainly due to a significant reduction in trade and other receivables, despite an increase in cash and cash equivalents Condensed Consolidated Interim Statement of Financial Position Key Data | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 256,979 | 288,571 | -11.09% | | Total Equity | 205,986 | 224,503 | -8.25% | | Total Liabilities | 50,993 | 64,068 | -20.41% | | Cash and Cash Equivalents | 138,240 | 114,515 | +20.71% | | Trade and Other Receivables | 49,613 | 90,543 | -45.10% | | Net Current Assets | 171,414 | 188,244 | -8.94% | Condensed Consolidated Interim Statement of Changes in Equity For the six months ended June 30, 2025, the Group's total equity decreased, primarily due to significant dividend payments, despite an increase in profit for the period and share-based payments Condensed Consolidated Interim Statement of Changes in Equity Key Data (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total Equity at Beginning of Period (January 1) | 224,503 | 209,567 | | Profit for the Period | 15,554 | 18,967 | | Currency Translation Differences | 3,747 | (2,642) | | Dividends Paid | (40,440) | (12,000) | | Share-based Payments | 1,126 | 624 | | Total Equity at End of Period (June 30) | 205,986 | 214,516 | Condensed Consolidated Interim Statement of Cash Flows For the six months ended June 30, 2025, the Group's net cash from operating activities significantly increased, but net cash used in financing activities also rose substantially, resulting in a net increase in cash and cash equivalents Condensed Consolidated Interim Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net Cash From Operating Activities | 61,667 | 13,186 | | Net Cash From/(Used In) Investing Activities | 524 | (2,005) | | Net Cash Used In Financing Activities | (41,468) | (14,543) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 20,723 | (3,362) | | Cash and Cash Equivalents at June 30 | 138,240 | 122,906 | Notes to the Condensed Consolidated Interim Financial Information This section provides detailed notes to the condensed consolidated interim financial statements, covering company information, accounting policies, risk management, segment information, specific components and changes in financial accounts, as well as significant disclosures on related party transactions and share-based payments, offering essential context and details for understanding the financial statements 1 Company Information and Basis of Presentation The Company, incorporated in the Cayman Islands, primarily manufactures and sells plastic bottles and cups for infants and toddlers, along with sports water bottles, with financial information presented in HK$ Thousand and controlled by Messrs. Chung Kwok Keung and Chow Ching - The Company was incorporated in the Cayman Islands on March 9, 2017, primarily engaged in the manufacture and sale of plastic bottles and cups for infants and toddlers, and plastic and stainless steel sports water bottles[12] - The Company's controlling shareholders are Mr. Chung Kwok Keung and Mr. Chow Ching[13] - The condensed consolidated interim financial information is presented in HK$ Thousand[14] 2 Basis of Preparation and Presentation The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and applicable disclosure requirements of the Listing Rules, and should be read in conjunction with the Group's consolidated financial statements for the year ended December 31, 2024 - The financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and applicable disclosure requirements of the Listing Rules[15] - It should be read in conjunction with the Group's consolidated financial statements for the year ended December 31, 2024[15] 3 Accounting Policies The accounting policies used in preparing this interim financial information are consistent with those applied in the consolidated financial statements for the year ended December 31, 2024, and no new or revised standards adopted during this reporting period resulted in changes to accounting policies or retrospective adjustments - The accounting policies and methods of computation used in preparing this unaudited condensed consolidated interim financial information are consistent with those applied in the Group's consolidated financial statements for the year ended December 31, 2024[16] - The Group has not changed its accounting policies or made retrospective adjustments due to the adoption of certain new or revised standards[16] 4 Critical Accounting Estimates and Judgements The significant judgments made by management and the sources of estimation uncertainty in preparing this condensed consolidated interim financial information are the same as those applied in the consolidated financial statements for the year ended December 31, 2024 - The significant judgments made by management in applying the Group's accounting policies and the key sources of estimation uncertainty are the same as those applied in the consolidated financial statements for the year ended December 31, 2024[17] 5 Financial Risk Management The Group is exposed to foreign currency risk, credit risk, and liquidity risk, but its risk management policies have not changed since the year ended December 31, 2024, and the carrying amounts of financial assets and liabilities approximate their fair values - The Group's operations expose it to various financial risks: foreign currency risk, credit risk, and liquidity risk[18] - Risk management policies have not changed since the year ended December 31, 2024[19] - The carrying amounts of the Group's financial assets and liabilities approximate their fair values due to their short-term maturity[20] 6 Segment Information The Group is divided into two operating segments based on product categories: OEM business (manufacturing and selling infant plastic bottles/cups and sports water bottles, primarily for overseas markets) and own-brand product business (designing, manufacturing, and selling own-brand infant products), with OEM business being the main revenue source showing slight growth in H1 2025, while own-brand product revenue significantly declined - Management has identified two operating segments based on product categories: (i) manufacturing and selling plastic bottles and cups for infants and toddlers, and plastic and stainless steel sports water bottles for OEM business customers; and (ii) designing, manufacturing, and selling own-brand infant products[22] Segment Revenue Analysis (For the six months ended June 30) | Segment | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | OEM Business Products | 180,915 | 176,649 | +2.41% | | Own-Brand Products | 329 | 2,337 | -85.92% | | Total Revenue | 181,244 | 178,986 | +1.26% | Segment Gross Profit Analysis (For the six months ended June 30) | Segment | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | OEM Business Products | 45,281 | 48,587 | -6.80% | | Own-Brand Products | 102 | 880 | -88.41% | | Total Gross Profit | 45,383 | 49,467 | -8.26% | 7 Net Finance Income For the six months ended June 30, 2025, the Group's net finance income significantly decreased to HK$0.6 million, primarily due to lower bank interest income Net Finance Income (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest on Bills Payable | (333) | (407) | | Interest Expense on Lease Liabilities | (107) | (45) | | Bank Interest Income | 1,023 | 2,277 | | Net Finance Income | 583 | 1,825 | 8 Profit Before Tax For the six months ended June 30, 2025, the Group's profit before tax was HK$20,420 thousand, a decrease from HK$24,815 thousand in the same period of 2024, mainly influenced by factors such as cost of inventories, employee benefit expenses, and depreciation Profit Before Tax Key Deductions/(Additions) (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Cost of Inventories | 98,300 | 92,372 | | Employee Benefit Expenses | 40,253 | 37,173 | | Depreciation of Property, Plant and Equipment | 3,069 | 2,609 | | Depreciation of Right-of-Use Assets | 2,100 | 2,037 | | Adjustment for Expected Credit Loss on Trade and Other Receivables | (129) | 2,339 | | Government Grants | (83) | (84) | 9 Taxation For the six months ended June 30, 2025, the Group's tax expense was HK$4,866 thousand, a decrease from HK$5,848 thousand in the same period of 2024, primarily due to reduced provision for PRC enterprise income tax Taxation Expense (For the six months ended June 30) | Item | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Current Period—Hong Kong | 1,836 | 1,352 | | Current Period—PRC | 3,232 | 3,964 | | Underprovision in Prior Years—PRC | 103 | 82 | | Deferred—Provision for the Period | (305) | 450 | | Taxation Expense | 4,866 | 5,848 | - Hong Kong profits tax is provided at a rate of 16.5%, and PRC enterprise income tax is calculated at the prevailing PRC tax rates[27] 10 Dividends The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, whereas an interim and interim special dividend totaling 10 HK Cents was paid for the same period in 2024; however, the company declared and paid a final dividend and final special dividend totaling 20 HK Cents, amounting to HK$40 million, on March 21, 2025, which was distributed on June 26, 2025 - The Company has not paid or declared any dividends for the six months ended June 30, 2025 (2024: interim and interim special dividends of 10 HK Cents)[29] - On March 21, 2025, the Board declared a final dividend of 3 HK Cents per ordinary share and a final special dividend of 17 HK Cents per ordinary share, totaling 20 HK Cents per ordinary share, amounting to HK$40 million, which was paid on June 26, 2025[29] 11 Earnings Per Share — Basic and Diluted For the six months ended June 30, 2025, basic earnings per share was 7.75 HK Cents, a decrease from 9.48 HK Cents in the same period of 2024, and diluted earnings per share was equal to basic earnings per share as potential dilutive ordinary shares had an anti-dilutive effect Earnings Per Share (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company (HK$ Thousand) | 15,554 | 18,967 | | Weighted Average Number of Ordinary Shares in Issue (Thousand Shares) | 200,741 | 200,000 | | Basic Earnings Per Share (HK Cents) | 7.75 | 9.48 | - Diluted earnings per share is equal to basic earnings per share as the potential dilutive ordinary shares arising from the exercise of outstanding share options had an anti-dilutive effect[30] 12 Property, Plant and Equipment As of June 30, 2025, the Group's net book value of property, plant and equipment was HK$38,130 thousand, a slight decrease from HK$39,718 thousand as of December 31, 2024, primarily due to depreciation expenses Property, Plant and Equipment Net Book Value | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net Book Value | 38,130 | 39,718 | - For the period ended June 30, 2025, depreciation expense was HK$3,069 thousand, with additions of HK$485 thousand[31] 13 Trade and Other Receivables As of June 30, 2025, the Group's total trade and other receivables were HK$49,613 thousand, a significant decrease from HK$90,543 thousand as of December 31, 2024, mainly due to a reduction in trade receivables Trade and Other Receivables | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Receivables (net of loss allowance) | 46,138 | 75,417 | | Other Receivables | 3,475 | 15,126 | | Total | 49,613 | 90,543 | - The average credit period granted for trade receivables ranges from 30 to 90 days[32] Ageing Analysis of Trade Receivables (by invoice date) | Ageing | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 0 – 30 days | 20,235 | 54,507 | | 31 – 60 days | 24,473 | 19,212 | | 61 – 90 days | 1,296 | 457 | | Over 90 days | 134 | 1,241 | | Total | 46,138 | 75,417 | 14 Trade and Other Payables As of June 30, 2025, the Group's total trade and other payables were HK$27,362 thousand, a decrease from HK$34,472 thousand as of December 31, 2024, primarily due to a reduction in accrued expenses and other payables Trade and Other Payables | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Trade Payables | 4,121 | 9,468 | | Accrued Expenses and Other Payables | 21,158 | 22,682 | | Contract Liabilities | 2,083 | 2,322 | | Total | 27,362 | 34,472 | - The credit period for trade payables in the Group's business generally ranges from 30 to 90 days[36] 15 Share Capital As of June 30, 2025, the Group's issued and fully paid share capital was HK$20,220 thousand, an increase from HK$20,000 thousand as of December 31, 2024, mainly due to the issuance of 2,200,000 ordinary shares upon the exercise of share options Share Capital Movement | Indicator | Number of Shares | Amount (HK$ Thousand) | | :--- | :--- | :--- | | Issued and Fully Paid Ordinary Shares at December 31, 2024 | 200,000,000 | 20,000 | | Ordinary Shares Issued Upon Exercise of Share Options | 2,200,000 | 220 | | Issued and Fully Paid Ordinary Shares at June 30, 2025 | 202,200,000 | 20,220 | - During the period ended June 30, 2025, 2,200,000 shares of the Company were exercised under the share option scheme, for a total cash consideration of HK$1,496,000[36] 16 Contingent Liabilities As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities - As of June 30, 2025, and December 31, 2024, the Group had no significant contingent liabilities[37] 17 Related Party Transactions The Group engaged in various transactions with related parties such as Wah Fook Loi, Kwong Fai, and Peng Hui, including utilities expenses, depreciation of right-of-use assets, and interest expenses on lease liabilities, all conducted under mutually agreed terms - Key related parties include Wah Fook Loi (controlled by Mr. Chow Wai, an executive director), Kwong Fai (jointly controlled by Mr. Chung and his spouse), and Peng Hui (controlled by controlling shareholders)[38] Summary of Transactions with Related Parties (For the six months ended June 30) | Related Party | Type of Transaction | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | :--- | | Wah Fook Loi | Utilities Expenses | 760 | 599 | | Kwong Fai | Depreciation of Right-of-Use Assets | 263 | 281 | | | Interest Expense on Lease Liabilities | 20 | 3 | | Peng Hui | Management Fee Expenses | 1,034 | 1,044 | | | Depreciation of Right-of-Use Assets | 1,837 | 1,756 | | | Interest Expense on Lease Liabilities | 87 | 42 | - As of June 30, 2025, the Group leased certain properties from Kwong Fai and Peng Hui, with a total carrying amount of right-of-use assets of HK$3,917 thousand and total lease liabilities of HK$4,003 thousand[39] 18 Investment in an Associate The Group holds a 40% interest in BRH2 Plastics, LLC, which is primarily engaged in plastic product manufacturing, and for the six months ended June 30, 2025, the Group recognized no share of loss, compared to a share of loss of approximately HK$1.2 million in the same period of 2024, mainly due to amortization of intangible assets and operating losses - The Group acquired a 40% interest in BRH2 Plastics, LLC in 2021 for a total consideration of HK$23,250,000[42] - For the six months ended June 30, 2025, the share of net loss recognized in the condensed consolidated interim statement of profit or loss was nil (2024: HK$1,243 thousand)[44] - The Group ceases to recognize its share of further losses when its share of losses of an associate exceeds its investment in the associate[45] 19 Share-based Payments The Group has adopted a share option scheme and granted share options to directors, senior management, and employees in 2021 and 2024, recognizing an expense of HK$1,126 thousand for share-based payments for the six months ended June 30, 2025 - The Company has adopted a share option scheme, granting 6,000,000 share options on June 7, 2021, and 10,000,000 share options on May 27, 2024[46] - For the period ended June 30, 2025, HK$1,126 thousand (2024: HK$624 thousand) in share-based payments was recognized in the condensed consolidated interim statement of profit or loss[46] 20 Approval of Interim Financial Information The unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, was approved by the Board of Directors on August 22, 2025 - The unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, was approved by the Board of Directors on August 22, 2025[48] Management Discussion and Analysis This section details the Group's operating results, financial position, risk management, and future outlook for the six months ended June 30, 2025, highlighting macroeconomic challenges, particularly US tariff policies and competition in the Chinese market, which led to decreased profitability, though the OEM business remains the primary revenue source, with management actively pursuing strategies including deepening customer cooperation, expanding global markets, and evaluating production facility expansion Business Review For the first half of 2025, the Group's total revenue remained stable, but profitability declined, mainly due to US tariffs on Chinese imports, with OEM business revenue slightly increasing but showing a downward trend in Q2, while YouYou MaHou business sales significantly decreased year-on-year amid intense market competition Revenue Revenue Overview (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 181,244 | 178,986 | +1.26% | | OEM Business Revenue | 180,915 | 176,649 | +2.41% | | YouYou MaHou Business Revenue | 329 | 2,337 | -85.92% | - OEM business sales performance slightly improved due to increased orders from existing customers, particularly for plastic and stainless steel sports water bottles[52] - YouYou MaHou business revenue significantly decreased, mainly affected by intense local market competition (especially price wars) and a continuous decline in physical retail store sales performance[53] Gross Profit Gross Profit and Gross Profit Margin (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Gross Profit | 45,383 | 49,467 | -8.26% | | Total Gross Profit Margin | 25.0% | 27.6% | -2.6 ppts | | OEM Business Gross Profit Margin | 25.0% | 27.5% | -2.5 ppts | | YouYou MaHou Business Gross Profit Margin | 30.9% | 37.7% | -6.8 ppts | - The decline in gross profit and gross profit margin was primarily due to the impact of tariffs in the first half of 2025, which reduced the Group's product selling prices[54] Selling Expenses Selling Expenses (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Selling Expenses | 2,193 | 3,603 | -39.13% | - Selling expenses decreased mainly due to reduced employee benefit expenses, transportation expenses, and marketing and promotion expenses in the first half of 2025 for cost control[55] Administrative Expenses Administrative Expenses (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 24,213 | 22,569 | +7.29% | - Administrative expenses increased primarily due to additional employee termination compensation costs of approximately HK$2.8 million incurred in the first half of 2025, mainly resulting from a downward trend in sales orders and manufacturing demand[56] Other Income and Gains Net Other Income and Gains (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Other Income | 399 | 244 | | Net Other Gains | 461 | 694 | | Total | 860 | 938 | - Net other income and gains were similar to the prior year, primarily including exchange gains of approximately HK$0.5 million for the six months ended June 30, 2025[57] Finance Income Net Finance Income (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net Finance Income | 583 | 1,825 | - Net finance income decreased primarily due to lower bank interest income, and the Group did not purchase any financial products in the first half of 2025[58] Share of Results of an Associate Share of Results of an Associate (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Share of Results of an Associate | — | (1,243) | - No share of loss was recognized in the first half of 2025, while the loss in the same period of 2024 was mainly due to amortization of intangible assets of approximately HK$1.0 million and the share of loss from BRH2 Plastics, LLC of approximately HK$0.2 million[59] Net Profit Net Profit (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Net Profit | 15,554 | 18,967 | -18.00% | - Net profit decreased primarily due to a decline in gross profit and gross profit margin, the latter mainly caused by the impact of tariffs reducing the Group's product selling prices[60] Liquidity, Financial Resources and Capital Structure As of June 30, 2025, the Group's cash and cash equivalents increased, net cash from operating activities was robust, and the gearing ratio was zero, indicating a sound liquidity position Liquidity and Financial Resources Overview | Indicator | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 138,240 | 114,515 | | Bank Facilities | 30,000 | 30,000 | | Gearing Ratio | Zero | Zero | - For the six months ended June 30, 2025, the Group recorded net cash from operating activities of approximately HK$63.9 million, primarily driven by profit before tax of approximately HK$20.4 million[61] Capital Commitments and Capital Expenditure As of June 30, 2025, the Group had no capital commitments, and capital expenditure significantly decreased in the first half of the year, primarily for the acquisition of new machinery and equipment - As of June 30, 2025, the Group had no capital commitments[62] Capital Expenditure (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Capital Expenditure (Gross additions to property, plant and equipment) | 485 | 3,855 | -87.41% | - This capital expenditure was primarily for the acquisition of new machinery and equipment[62] Financial Policy The Group had ample cash and bank facilities during the reporting period, and management will continue to follow a prudent policy to manage cash balances and maintain robust liquidity to seize future growth opportunities - The Group has ample cash and bank facilities to conduct trade in the normal course of business[63] - Management will continue to follow a prudent policy to manage the Group's cash balances and maintain robust liquidity, ensuring the Group can seize any future growth opportunities[63] Exchange Rate Risk The Group is exposed to exchange rate risk, particularly from fluctuations in the Renminbi, but did not use derivative instruments to hedge foreign exchange risk for the six months ended June 30, 2025 - The Group's transactions are primarily denominated in US dollars, Renminbi, and Hong Kong dollars, exposing it to exchange rate risk, especially from fluctuations in the Renminbi[64] Exchange Gains (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Exchange Gains | 500 | 700 | - For the six months ended June 30, 2025, the Group did not use any derivative instruments to hedge its foreign exchange risk[64] Pledge of Assets As of June 30, 2025, the Group had not pledged any assets - As of June 30, 2025, the Group had not pledged any assets[65] Material Acquisitions, Disposals and Investments For the six months ended June 30, 2025, the Group did not undertake any material acquisitions, disposals, or investments, nor did it hold any material investments - For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals of subsidiaries, associates, or joint ventures, or investments[66] - The Group did not hold any material investments as of June 30, 2025[66] Future Plans for Material Investments or Capital Assets As of the date of this interim results announcement, the Group has no future plans for material investments or capital assets - For the six months ended June 30, 2025, and up to the date of this interim results announcement, the Group has no future plans for material investments or capital assets[67] Contingent Liabilities As of June 30, 2025, the Group had no significant contingent liabilities and was not aware of any pending or potential material legal proceedings - As of June 30, 2025, the Group had no significant contingent liabilities, nor was it aware of any pending or potential material legal proceedings involving the Group[68] Events After the Reporting Period The Company is not aware of any significant events after June 30, 2025, up to the date of this interim results announcement - The Company is not aware of any significant events after June 30, 2025, up to the date of this interim results announcement[69] Employees and Remuneration Policy As of June 30, 2025, the Group's employee headcount decreased, mainly due to reduced demand for production workers resulting from fewer sales orders, with the Group prioritizing employee development and training, determining remuneration and bonuses based on performance, experience, and market conditions, and participating in social insurance and mandatory provident fund schemes Employee Headcount (As of June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Number of Full-time Employees | 563 | 737 | - The decrease in employee headcount was primarily due to reduced demand for production workers (non-administrative staff) in the production process as the number of sales orders received in the second quarter of 2025 decreased[70] Employee Benefit Expenses (For the six months ended June 30) | Indicator | 2025 (HK$ Thousand) | 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Employee Benefit Expenses | 40,253 | 37,173 | - The Group has adopted a share option scheme as recognition for employee contributions[71] Future Outlook The Group anticipates significant challenges for both its OEM and YouYou MaHou businesses in the future, facing a complex macroeconomic environment where US tariff policies adversely affect the OEM business, while intense competition and declining birth rates in the Chinese market continue to pressure the YouYou MaHou business, prompting the Group to actively implement strategies including deepening customer cooperation, expanding global markets, and evaluating production facility expansion - Both the Group's OEM business and YouYou MaHou business are expected to continue facing significant challenges in the future, with an increasingly complex macroeconomic environment[72] - The OEM business faces severe operational pressure, primarily due to US government tariffs on products imported from China, leading to reduced customer order intentions[73] - OEM business strategies include: deepening cooperation with existing customers, engaging with potential global customers to diversify reliance on the US market, exploring ways to enhance product manufacturing capabilities, and evaluating the feasibility of expanding production facilities to other Asian regions[73] - The YouYou MaHou business faces immense pressure due to: intense local market competition (price wars), a shift in customer shopping habits from offline to online, and the historical declining trend in China's birth rate[74] - The performance of the associate, BRH2 Plastics, LLC, continues to be affected by the industry downturn[75] Standard Code for Securities Transactions by Directors The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules, and all directors have confirmed compliance with the code during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[76] - Following specific enquiries with all Directors, they have all confirmed their compliance with the required standards set out in the Model Code for the six months ended June 30, 2025[76] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities, and the Company held no treasury shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[77] - As of June 30, 2025, the Company did not hold any treasury shares[78] Interim Dividends The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, whereas an interim and interim special dividend totaling 10 HK Cents was paid for the same period in 2024 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: interim and interim special dividends of 10 HK Cents)[79] Corporate Governance Code The Company is committed to maintaining a high level of corporate governance and has adopted and complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules, with the Board continuously reviewing and monitoring corporate governance practices - The Company has adopted and complied with the code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[80] - The Board is committed to continuously reviewing and monitoring the Company's corporate governance practices to maintain a high standard of corporate governance[81] Other Information This section covers the review process of financial information, publication channels for the interim results announcement and interim report, and the date of Board approval and Board members' information Review of Financial Information The Company's Audit Committee has discussed and reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, with management and recommended it for Board approval, and independent auditor PricewaterhouseCoopers has also completed its review - The Company's Audit Committee has discussed and reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2025, with management and recommended it for Board approval[82] - Independent auditor PricewaterhouseCoopers has reviewed this financial information in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[82] Publication of Interim Results Announcement and Interim Report This interim results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited and the Company, and the interim report containing all required information will be published in due course - This interim results announcement has been published on the websites of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Company (www.mainsuccess.cn), respectively[83] - The Company's interim report for the six months ended June 30, 2025, containing all information required by the Listing Rules, will be published on the respective websites of the Stock Exchange and the Company in due course[83] Board Approval This interim results announcement was approved by the Board of Directors on August 22, 2025 - This interim results announcement was approved by the Board of Directors on August 22, 2025[84]