Ngai Hing Hong : INTERIM REPORT 2020/2021

March 15, 2021 at 02:22 pm IST

CONTENTS

ͦ፽

Condensed Consolidated Income Statement 2-3 ᔊ׼ၝΥϗूڌ

Condensed Consolidated Statement of Comprehensive Income 4 ᔊ׼ၝΥΥԻϗूڌ

Condensed Consolidated Balance Sheet 5-7 ᔊ׼ၝΥ༟ପࠋවڌ

Condensed Consolidated Statement of Changes in Equity 8-9 ᔊ׼ၝΥᛆूᜊਗڌ

Condensed Consolidated Statement of Cash Flows 10 ᔊ׼ၝΥତږݴඎڌ

Notes to the Condensed Consolidated Interim Financial Information 11-38 ᔊ׼ၝΥʕಂৌਕ༟ࣘڝൗ

Interim and Special Dividends 39 ʕಂʿतйٰࢹ

Closure of Register of Members 39 ᅲ৾፬ଣٰ΅ཀ˒೮া˓ᚃ

Management Discussion and Analysis 39-42 ၍ଣᄴীሞʿʱؓ

Liquidity and Financial Resources 43 ݴਗ༟ږʿৌਕ༟๕

Foreign Exchange Risk 43 ̮ිࠬᎈ

Employee Information 44 ྇ࡰ༟ࣘ

Purchase, Sale and Redemption of the Company's Listed Securities 44 ᒅ൯ëਯʿᛙΫ͉ʮ̡ʘɪ̹ᗇՎ

Share Options 44 ᒅٰᛆ

Directors' and Chief Executives' Interests and Short Positions 45-48 in the Shares, Underlying Shares and Debentures of the

Company or any Associated Corporation ໨ԫʿ௰৷Б݁ɛࡰ׵͉ʮ̡אՉ΂О޴ᑌجྠٰ΅e ޴ᗫٰ΅ʿවՎʘᛆूʿ૱ࡑ

Substantial Shareholders' Interests and Short Positions in the Shares and 48

Underlying Shares of the Company ˴ࠅٰ؇׵͉ʮٰ̡΅ʿ޴ᗫٰ΅ʘᛆूʿ૱ࡑ

Compliance with the Model Code for Securities Transactions by Directors 49 ፭ς໨ԫආБᗇՎʹ׸ʘᅺ๟ςۆ

Corporate Governance Practice 49-50

Άุ၍ط੬஝

Nomination Committee 50 ౤Τ։ࡰึ

Audit Committee 51 ᄲࣨ։ࡰึ

Remuneration Committee 51 ᑚཇ։ࡰึ

Corporate Governance Committee 52

Άุ၍ط։ࡰึ

The Board of Directors (the "Board") of Ngai Hing Hong Company Limited (the "Company") presents the unaudited condensed consolidated interim financial information of the Company and its subsidiaries (the "Group") for the six months ended 31st December 2020 as follows:

ᆇጳБϞࠢʮ̡€˜͉ʮ̡™ʘ໨ԫึ€˜໨ԫ ึ™܁бd͉ʮ̡ʿՉڝ᙮ʮ̡€˜͉ණྠ™࿚ Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜ʘ͊຾ ᄲࣨᔊ׼ၝΥʕಂৌਕ༟ࣘνɨj

CONDENSED CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED 31ST DECEMBER 2020

Other (losses)/gains, net Distribution costs Administrative expensesIncome tax expense

Profit for the period

ᔊ׼ၝΥϗूڌ

࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜

Unaudited ͊຾ᄲࣨ

Six months ended 31st December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2020	2019
Note	HK$'000	HK$'000
ڝൗ	ɷಥʩ	ɷಥʩ

Revenue from contracts with customers Cost of sales ܄˒Υߒʘϗɝ ቖਯϓ͉ 6	951,987 (801,112)	906,580 (801,817)
Gross profit Rental income Other (losses)/gains, net Distribution costs Administrative expenses ˣл ॡږϗɝ Չ˼€ᑦฦŊϗूÑଋᕘ ʱቖϓ͉ 7 Б݁˕̈	150,875 3,676 (1,249) (40,272) (57,571)	104,763 3,986 568 (37,864) (54,906)
Operating profit ຾ᐄ๐л 8	55,459	16,547
Finance income Finance costs ৌਕϗू 9 ৌਕ൬͜ 9	441 (4,195)	469 (9,659)
Finance costs, net ৌਕ൬͜Ñଋᕘ	(3,754)	(9,190)
Profit before income tax Income tax expense ৰ೼ۃ๐л ೼ධ˕̈ 10	51,705 (11,103)	7,357 (4,478)
Profit for the period ͉ಂ๐л	40,602	2,879

CONDENSED CONSOLIDATED INCOME STATEMENT (Continued)

FOR THE SIX MONTHS ENDED 31ST DECEMBER 2020

ᔊ׼ၝΥϗूڌ€ᚃ

࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜

Unaudited ͊຾ᄲࣨ

Six months ended 31st December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2020	2019
Note	HK$'000	HK$'000
ڝൗ	ɷಥʩ	ɷಥʩ

Attributable to: Equity holders of the Company Non-controlling interests ˸ɨɛɻᏐЦj ʮٰ̡؇ ڢછՓᛆू	37,114 3,488	587 2,292
40,602	2,879
Earnings per share for profit attributable to the equity holders of the Company during the period (expressed in HK cent per share) - Basic ͉ಂʮٰ̡؇ᏐЦ ๐лʘӊٰޮл €˸ӊٰಥ̀ࠇ Ñਿ͉ 12	10.05	0.16
- Diluted Ñᛅᑛ 12	10.05	0.16

The above condensed consolidated income statement should be read in conjunction with the accompanying notes.

ɪࠑᔊ׼ၝΥϗूڌᏐၾᎇڝڝൗɓԻቡᛘf

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED 31ST DECEMBER 2020

ᔊ׼ၝΥΥԻϗूڌ

࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜

Unaudited ͊຾ᄲࣨ

Six months ended 31st December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2020	2019
HK$'000	HK$'000
ɷಥʩ	ɷಥʩ
Profit for the period	͉ಂ๐л	40,602	2,879
Other comprehensive income/(loss):	Չ˼ၝΥϗूŊ€ᑦฦj
Item that may be reclassified subsequently to	ಂܝ̙஗ࠠอʱᗳЇ
income statement:	ϗूڌʘධͦj
Currency translation differences	ිгࢨᕘ	43,745	(7,873)
Other comprehensive income/(loss) for the period	͉ಂՉ˼ၝΥϗूŊ€ᑦฦ	43,745	(7,873)
Total comprehensive income/(loss) for the period	͉ಂၝΥϗूŊ€ᑦฦᐼᕘ	84,347	(4,994)
Total comprehensive income/(loss) attributable to:	ၝΥϗूŊ€ᑦฦᐼᕘᓥ᙮׵j
Equity holders of the Company	ʮٰ̡؇	79,862	(7,174)
Non-controlling interests	ڢછՓᛆू	4,485	2,180
84,347	(4,994)

The above condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

ɪࠑᔊ׼ၝΥΥԻϗूڌᏐၾᎇڝڝൗɓԻቡ ᛘf

CONDENSED CONSOLIDATED BALANCE SHEET	ᔊ׼ၝΥ༟ପࠋවڌ
AS AT 31ST DECEMBER 2020	׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚
Unaudited	Audited
͊຾ᄲࣨ	຾ᄲࣨ
31st December	30th June
2020	2020
׵ɚཧɚཧϋ	׵ɚཧɚཧϋ
ɤɚ˜ɧɤɓ˚	ʬ˜ɧɤ˚

HK$'000 ɷಥʩ

Note ڝൗ

HK$'000 ɷಥʩ

ASSETS Non-current assets

Property, plant and equipment Right-of-use assets

Investment properties

Financial assets at fair value through other comprehensive income Deferred income tax assets Prepayments

༟ପ ڢݴਗ༟ପ يุeᅀגʿண௪ Դ͜ᛆ༟ପ ҳ༟يุ ܲʮʪᄆ࠽ࠇɝՉ˼Όࠦϗू ٙৌਕ༟ପ ჈ַ೼ධ༟ପ ཫ˹ಛ

13 13 13

Current assets

Inventories

Trade and bills receivables

Other receivables, prepayments and deposits Income tax recoverable

Restricted bank deposits Cash and bank balances

ݴਗ༟ପ π஬ ൱׸ᏐϗಛʿᏐϗୃኽ Չ˼Ꮠϗಛeཫ˹ಛʿܲږ ̙ϗΫ೼ධ աࠢՓٙვБπಛ ତږʿვБഐቱ

Total assets

༟ପᐼᕘ

Ngai Hing Hong Company Limited
毅興行有限公司
CONDENSED CONSOLIDATED BALANCE SHEET (Continued)	ᔊ׼ၝΥ༟ପࠋවڌ€ᚃ
AS AT 31ST DECEMBER 2020	׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚
Unaudited	Audited
͊຾ᄲࣨ	຾ᄲࣨ
31st December	30th June
2020	2020
׵ɚཧɚཧϋ	׵ɚཧɚཧϋ
ɤɚ˜ɧɤɓ˚	ʬ˜ɧɤ˚

Note	HK$'000	HK$'000
ڝൗ	ɷಥʩ	ɷಥʩ

EQUITY

Capital and reserves attributable to the Company's equity holders Share capital

Share premium Other reserves Retained earnings

ᛆू ʮٰ̡؇ ᏐЦٰ͉ʿᎷ௪ ٰ͉ ٰ͉๐ᄆ Չ˼Ꮇ௪ ڭव๐л

36,920 62,466 62,865 382,933

36,920 62,466 20,117 345,819

Non-controlling interests

ڢછՓᛆू

545,184 25,972

465,322 25,199

Total equity

ᛆूᐼᕘ

571,156

490,521

CONDENSED CONSOLIDATED BALANCE SHEET (Continued)

AS AT 31ST DECEMBER 2020

ᔊ׼ၝΥ༟ପࠋවڌ€ᚃ ׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚

Unaudited ͊຾ᄲࣨ

31st December 2020 ׵ɚཧɚཧϋ ɤɚ˜ɧɤɓ˚

Audited ຾ᄲࣨ

30th June 2020 ׵ɚཧɚཧϋ ʬ˜ɧɤ˚

Note	HK$'000	HK$'000
ڝൗ	ɷಥʩ	ɷಥʩ

Reinstatement provision Lease liabilitiesBorrowings

Derivative financial instruments Income tax payable

LIABILITIES Non-current liabilities Deferred income tax liabilities Reinstatement provision Lease liabilities ࠋව ڢݴਗࠋව ჈ַ೼ධࠋව ࡌూϓ͉ᅡ௪ ॡ༣ࠋව	5,418 884 1,523	6,559 884 3,216
7,825	10,659
Current liabilities ݴਗࠋව Trade payables Other payables and accruals Lease liabilities ൱׸Ꮠ˹ಛ 15 Չ˼Ꮠ˹ಛʿཫ౤൬͜ ॡ༣ࠋව Borrowings Derivative financial instruments Income tax payable ࠾൲ 16 ࠃ͛ږፄʈՈ Ꮠ˹೼ධ	76,118 45,976 3,944 321,762 386 10,623	87,257 27,656 3,803 365,377 1,246 8,320
458,809	493,659
Total liabilities ࠋවᐼᕘ	466,634	504,318
Total equity and liabilities ᛆूʿࠋවᐼᕘ	1,037,790	994,839
Net current assets ଋݴਗ༟ପ	263,572	191,759
Total assets less current liabilities ༟ପᐼᕘಯݴਗࠋව	578,981	501,180

The above condensed consolidated balance sheet should be read in conjunction with the accompanying notes.

ɪࠑᔊ׼ၝΥ༟ପࠋවڌᏐၾᎇڝڝൗɓԻቡ ᛘf

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED 31ST DECEMBER 2020

ᔊ׼ၝΥᛆूᜊਗڌ

࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜

Unaudited ͊຾ᄲࣨ

Attributable to equity holders of the Company ʮٰ̡؇ᏐЦ௅ʱ

Other reserves

Չ˼Ꮇ௪

Share capital ٰ͉

Financial assets at fair value through other comprehensive income reserve ܲʮʪᄆ࠽

Share premium ٰ͉๐ᄆ

Capital reserve ༟͉Ꮇ௪

Revaluation reserve

ࠇɝՉ˼ Όࠦϗूٙ

ࠠПᎷ௪ ৌਕ༟ପᎷ௪

Exchange fluctuation reserve ිг تਗᎷ௪

Retained earnings ڭव๐л

Non-controlling interests ڢછՓᛆू

HK$'000 ɷಥʩ

Total ᐼᕘ

HK$'000 ɷಥʩ

The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

ɪࠑᔊ׼ၝΥᛆूᜊਗڌᏐၾᎇڝڝൗɓԻቡ ᛘf

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN

EQUITY (Continued)

FOR THE SIX MONTHS ENDED 31ST DECEMBER 2020

ᔊ׼ၝΥᛆूᜊਗڌ€ᚃ

࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜

Unaudited ͊຾ᄲࣨ

Attributable to equity holders of the Company ʮٰ̡؇ᏐЦ௅ʱ

Other reserves

Չ˼Ꮇ௪

Share capital ٰ͉

Financial assets at fair value through other comprehensive income reserve ܲʮʪᄆ࠽

Share premium ٰ͉๐ᄆ

Capital reserve ༟͉Ꮇ௪

Revaluation reserve

ࠇɝՉ˼ Όࠦϗूٙ

ࠠПᎷ௪ ৌਕ༟ପᎷ௪

Exchange fluctuation reserve ිг تਗᎷ௪

Retained earnings ڭव๐л

Non-controlling interests ڢછՓᛆू

Total ᐼᕘ

HK$'000 ɷಥʩ

At 1st July 2019

׵ɚཧɓɘϋɖ˜ɓ˚

36,920

62,466

(3,119)

1,077

9,640

29,704

352,031

23,874 512,593

Comprehensive income Profit for the period

Other comprehensive income Currency translation differences

ၝΥϗू ͉ಂ๐л Չ˼ၝΥϗू ිгࢨᕘ

{

587

2,292 2,879

{

(7,761)

{

(112) (7,873)

Total comprehensive income

ၝΥϗूᐼᕘ

{

(7,761)

587

2,180

(4,994)

Transactions with owners

ၾהϞ٫ʘʹ׸

Dividends paid to non-controlling interests ˕˹ʚڢછՓᛆूʘٰࢹ

{

(3,188)

Total transactions with owners

ၾהϞ٫ʘʹ׸ᐼᕘ

{

(3,188)

(3,188)At 31st December 2019

׵ɚཧɓɘϋɤɚ˜ɧɤɓ˚

36,920

62,466

(3,119)

1,077

9,640

21,943

352,618

22,866

504,411

The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

ɪࠑᔊ׼ၝΥᛆूᜊਗڌᏐၾᎇڝڝൗɓԻቡ ᛘf

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED 31ST DECEMBER 2020

ᔊ׼ၝΥତږݴඎڌ

࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜

Unaudited ͊຾ᄲࣨ

Six months ended 31st December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2020	2019
HK$'000	HK$'000
ɷಥʩ	ɷಥʩ
Cash flows from operating activities	຾ᐄุਕʘତږݴ
Cash generated from operations	຾ᐄุਕהପ͛ʘତږ	92,682	80,137
Hong Kong profits tax paid	ʊᖮ࠰ಥл੻೼	(1,941)	{
Mainland China income tax paid	ʊᖮʕ਷ʫήה੻೼	(6,890)	(2,431)
Interest received	ʊϗлࢹ	441	469
Net cash generated from operating activities	຾ᐄุਕהପ͛ʘଋତږ	84,292	78,175
Cash flows from investing activities	ҳ༟ุਕʘତږݴ
Purchase of property, plant and equipment	ᒅ൯يุeᅀגʿண௪	(6,289)	(1,807)
Proceeds from disposal of property, plant and equipment	̈ਯيุeᅀגʿண௪ה੻ಛ	{	122
Prepayments for property, plant and equipment	يุeᅀגʿண௪
and renovation costs	ၾༀࡌཫ˹ಛ	(1,490)	(3,135)
Net cash used in investing activities	ҳ༟ุਕהԴ͜ʘଋତږ	(7,779)	(4,820)
Cash flows from financing activities	ፄ༟ุਕʘତږݴ
Proceeds from bank loans	อᄣვБ൲ಛ	26,998	60,146
Repayment of bank loans	ᎵᒔვБ൲ಛ	(62,572)	(112,821)
(Decrease)/increase in trust receipt loans	ڦৄϗኽ൲ಛ€ಯˇŊᄣ̋	(11,856)	42,342
Repayment of lease liabilities	ॡ༣ࠋවʘᒔಛ	(1,834)	(2,025)
Dividends paid to non-controlling interests	˕˹ʚڢછՓᛆूʘٰࢹ	(3,712)	(3,188)
Interest paid	࠾൲лࢹ	(4,054)	(9,664)
Net cash used in financing activities	ፄ༟ุਕהԴ͜ʘଋତږ	(57,030)	(25,210)
Net increase in cash and cash equivalents	ତږʿତږഃᕘʘଋᕘᄣ̋	19,483	48,145
Cash and cash equivalents at 1st July	׵ɖ˜ɓ˚ʘତږʿତږഃᕘ	126,094	93,601
Effect of foreign exchange rate changes	̮࿆䁩ଟᜊਗᅂᚤ	10,062	(2,129)
Cash and cash equivalents at 31st December	׵ɤɚ˜ɧɤɓ˚ʘତږʿ
ତږഃᕘ	155,639	139,617

The above condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.

ɪࠑᔊ׼ၝΥତږݴඎڌᏐၾᎇڝڝൗɓԻቡ ᛘf

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION

1 GENERAL INFORMATION
Ngai Hing Hong Company Limited (the "Company") and its subsidiaries (together the "Group") are principally engaged in the manufacturing and trading of plastic materials, pigments, colorants, compounded plastic resins and engineering plastic products.
- 1 ɓছ༟ࣘ
  ᆇጳБϞࠢʮ̡€˜͉ʮ̡™ʿՉڝ᙮ʮ
  ̡€୕၈˜͉ණྠ™˴ࠅ੽ԫ෧ᇭࡡࣘe
  Ѝ४e䋠Ѝኒe૿ࣘʿʈ೻෧ࣘʘႡி
  ʿ൯ርf
The Company is a limited liability company incorporated in Bermuda. The address of its registered office is Clarendon House, 2 Church Street, Hamilton HM11, Bermuda.
The Company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited.
- ͉ʮ̡݊׵ϵᅉ༺ൗ̅ʘɓගϞࠢப
  ΂ʮ̡fʮ̡ൗ̅ήѧމ Clarendon
  House, 2 Church Street, Hamilton HM11,
  Bermuda.
  ͉ʮ̡ʘٰୃ׵࠰ಥᑌΥʹ׸הϞࠢʮ
  ̡ʘ˴وɪ̹f
  This condensed consolidated interim financial information is presented in Hong Kong dollars, unless otherwise stated, and has been approved for issue by the Board of Directors on 25th February 2021.
2 BASIS OF PREPARATION
This condensed consolidated interim financial information for the six months ended 31st December 2020 has been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting". This condensed consolidated interim financial information does not included all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual financial statements for the year ended 30th June 2020, which have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs").

ৰڢʊ̤̮ΐ׼d͉ᔊ׼ၝΥʕಂৌਕ
༟ࣘɗ˸ಥ࿆ΐͪf͉ᔊ׼ၝΥʕಂৌ
ਕ༟ࣘʊ׵ɚཧɚɓϋɚ˜ɚɤʞ˚஗
໨ԫ҅ҭࡘf
2 ᇜႡਿ๟
࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ ˜ٙᔊ׼ၝΥʕಂৌਕ༟ࣘʊ࣬ኽ࠰ಥ ึࠇ๟ۆୋ 34 ໮˜ʕಂৌਕజѓ™ᇜႡf ͉ᔊ׼ၝΥʕಂৌਕ༟ࣘԨʔܼ̍הϞ ɓছც׵ϋܓৌਕజڌ̍ўʘڝൗ၇ ᗳfΪϤdᔊ׼ၝΥʕಂৌਕ༟ࣘᏐၾ ࿚Їɚཧɚཧϋʬ˜ɧɤ˚˟ϋܓٙϋ ܓৌਕజڌɓԻቡᛘd༈ৌਕజڌʊ࣬ ኽ࠰ಥৌਕజѓ๟ۆᇜႡf

ACCOUNTING POLICIES	ึࠇ݁ഄ
Except as described below, the accounting policies applied are consistent with	ৰɨ˖הࠑ٫̮dהમ͜ʘึࠇ݁ഄၾ
those of the annual financial statements for the year ended 30th June 2020, as	࿚Їɚཧɚཧϋʬ˜ɧɤ˚˟ϋܓٙϋ
described in those annual financial statements.	ܓৌਕజڌהમٙ͜ึࠇ݁ഄ€ν༈ഃϋ
ܓৌਕజڌהࠑɓߧf
Taxes on income in the interim periods are accrued using the tax rate that would	͉ʕಂಂගٙה੻೼ܲ๫ཫಂϋܓᐼޮ
be applicable to expected total annual earnings.	лቇٙ͜೼ଟଢ଼ࠇf

3.1

New and amended standards adopted by the Group	͉ණྠהમॶอࠈʿ຾ࡌࠈ๟ۆ
A number of new or amended standards became applicable for the current	߰ʍอࠈא຾ࡌࠈ๟ۆቇ͜׵͉జ
reporting period and the Group had to change its accounting policies	ѓಂd͉ණྠ඲ఱમॶ˸ɨ๟ۆһ
and make retrospective adjustments as a result of adopting the following	ҷՉึࠇ݁ഄʿЪ̈৛๑ሜ዆j
standards:

3.1

Amendments to HKFRS 9, HKAS 39 and HKFRS 7 ࿁࠰ಥৌਕజѓ๟ۆୋ 9 ໮e ࠰ಥึࠇ๟ۆୋ 39 ໮ʿ ࠰ಥৌਕజѓ๟ۆୋ 7 ໮ٙࡌࠈ

Hedge Accounting (Amendments)

࿁әึࠇஈଣ€ࡌࠈ͉

Amendments to HKAS 1 and HKAS 8 ࿁࠰ಥึࠇ๟ۆୋ 1 ໮ʿ࠰ಥึࠇ ๟ۆୋ 8 ໮ٙࡌࠈ

Definition of Material (Amendments)

ࠠɽ່֛ٙ€ࡌࠈ͉

Amendments to HKFRS 3 ࿁࠰ಥৌਕజѓ๟ۆୋ3໮ٙࡌࠈ

Definition of a Business (Amendments)

ุਕ່֛ٙ€ࡌࠈ͉

Conceptual Framework for Financial Reporting 2018 ɚཧɓɞϋৌਕజѓٙ฿ׂ࣪ݖ

Revised Conceptual Framework for Financial Reporting һอৌਕజѓٙ฿ׂ࣪ݖ

Amendments to HKFRS 16 ࿁࠰ಥৌਕజѓ๟ۆୋ16໮ٙࡌࠈ

12 Interim Report 中期報告 20 / 21

COVID-19 Related Rent Concessions 2019อۨڿًषݭޥઋ޴ᗫॡږಯᜫ

ACCOUNTING POLICIES (Continued)

3.2 Impact of standards issued but not yet applied by the Group

ึࠇ݁ഄ€ᚃ

3.2

ʊ཯бШ͉ණྠ͊મॶٙ๟ۆʘᅂ ᚤ

The following new and amended HKFRSs have been issued, but are not effective for the Group's accounting period beginning on 1st July 2020 and have not been early adopted:

ɨΐอࠈʿ຾ࡌࠈʘ࠰ಥৌਕజѓ ๟ۆʊ཯бdઓ֠͊׵͉ණྠ׵ɚ ཧɚཧϋɖ˜ɓ˚ක֐ʘึࠇಂග ͛ࣖʿԨೌ౤Ϙમॶu

Amendments to HKFRS 3, HKAS 16 and HKAS 37	Narrow-scope amendments2
࿁࠰ಥৌਕజѓ๟ۆୋ3໮e࠰ಥึࠇ๟ۆୋ16໮ʿ	ʃᇍఖࡌࠈ2
࠰ಥึࠇ๟ۆୋ37໮ٙࡌࠈ
Amendments to HKAS 39, HKFRS 4, HKFRS 7,	Interest Rate Benchmark Reform - Phase 21
HKFRS 9 and HKFRS 16
࿁࠰ಥึࠇ๟ۆୋ39໮e࠰ಥৌਕజѓ๟ۆୋ4໮e	лଟਿ๟ҷࠧÑୋɚචݬ1
࠰ಥৌਕజѓ๟ۆୋ7໮e࠰ಥৌਕజѓ๟ۆୋ9໮ʿ
࠰ಥৌਕజѓ๟ۆୋ16໮ٙࡌࠈ
Amendments to HKAS 1	Classification of Liabilities as Current or Non-current3
࿁࠰ಥึࠇ๟ۆୋ1໮ٙࡌࠈ	ਗ਼ࠋවʱᗳމݴਗאڢݴਗ3
Amendments to HKFRS 10 and HKAS 28	Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture4
࿁࠰ಥৌਕజѓ๟ۆୋ10໮ʿึࠇ๟ۆୋ28໮ٙࡌࠈ	ҳ༟٫ၾՉᑌᐄʮ̡אΥ༟ʮ̡ʘගٙ༟ପ̈ਯאء༟4
Annual improvements to HKFRSs 2018-2020 cycle	Amendments to HKFRS 1, HKFRS 9, HKFRS 16 and HKAS 412
࠰ಥৌਕజѓ๟ۆɚཧɓɞϋЇ	࿁࠰ಥৌਕజѓ๟ۆୋ1໮e࠰ಥৌਕజѓ๟ۆୋ9໮e
ɚཧɚཧϋ඄ಂʘϋܓҷආ	࠰ಥৌਕజѓ๟ۆୋ16໮ʿ࠰ಥึࠇ๟ۆୋ41໮ٙࡌࠈ2
HKFRS 17	Insurance Contracts3
࠰ಥৌਕజѓ๟ۆୋ17໮	ڭᎈΥΝ3

(1)	Effective for annual periods beginning on or after 1st January 2021	(1)	Іɚཧɚɓϋɓ˜ɓ˚ৎٙϋజಂග͛ࣖ
(2)	Effective for annual periods beginning on or after 1st January 2022	(2)	Іɚཧɚɚϋɓ˜ɓ˚ৎٙϋజಂග͛ࣖ
(3)	Effective for annual periods beginning on or after 1st January 2023	(3)	Іɚཧɚɧϋɓ˜ɓ˚ৎٙϋజಂග͛ࣖ
(4)	To be determined	(4)	ʥ͊ᆽ֛

4 ESTIMATES AND JUDGEMENTS
The preparation of interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.
- 4 Пࠇʿкᓙ ᇜႡʕಂৌਕ༟ࣘࠅӋ၍ଣᄴ࿁ᅂᚤึ ࠇ݁ഄٙᏐ͜ձהజѓ༟ପձࠋව˸ʿ ϗ˕ٙᅰᕘЪ̈кᓙeПࠇձ৿ணfྼ ყഐ؈אึၾϤഃПࠇʔΝf
In preparing this condensed consolidated interim financial information, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual financial statements for the year ended 30th June 2020.
5 FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
5.1 Financial risk factors
- ίᇜႡϤഃᔊ׼ၝΥʕಂৌਕ༟ࣘࣛd
  ၍ଣᄴᏐ͉͜ණྠึࠇ݁ഄࣛЪ̈ٙࠠ
  ɽкᓙձПࠇʔᆽ֛׌ٙᗫᒟԸ๕dၾ
  ࿚Їɚཧɚཧϋʬ˜ɧɤ˚˟ϋܓৌਕ
  జڌהᏐٙ͜޴Νf
- 5 ৌਕࠬᎈ၍ଣʿږፄʈՈ
5.1
ৌਕࠬᎈΪ९
The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, cash flow and fair value interest rate risk and price risk), credit risk and liquidity risk.
The condensed consolidated interim financial information does not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 30th June 2020.
͉ණྠٙݺਗוաഹε၇ٙৌਕࠬ ᎈj̹ఙࠬᎈ€ܼ̍ිଟࠬᎈeତ ږݴඎʿʮʪᄆ࠽лଟࠬᎈʿᄆࣸ ࠬᎈeڦࠬ͜ᎈʿݴਗ׌ࠬᎈf ᔊ׼ၝΥʕಂৌਕ༟ࣘԨܼ͊̍ϋ ܓৌਕజڌ஝֛ٙהϞৌਕࠬᎈ၍ ଣ༟ৃձמᚣdϤʕಂৌਕ༟ࣘᏐ ၾ͉ණྠ࿚Їɚཧɚཧϋʬ˜ɧɤ ˚˟ϋܓٙϋܓৌਕజڌɓԻቡ ᛘf
There have been no changes in the risk management department since year end or in any risk management policies since the year end.
14 Interim Report 中期報告 20 / 21

Іϋֵ˸Ըࠬᎈ၍ଣ௅אࠬᎈ၍ଣ ݁ഄԨೌ΂Оᜊਗf

FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Continued)

5.2 Liquidity risk

ৌਕࠬᎈ၍ଣʿږፄʈՈ€ᚃ

5.2 ݴਗ׌ࠬᎈ
Compared to year end, there have been no material changes to the policies and practices for the Group's liquidity and funding risk management as described in the annual financial statements for the year ended 30th June 2020.
͉ණྠٙݴਗ׌ʿ༟ږࠬᎈ၍ଣၾ
࿚Їɚཧɚཧϋʬ˜ɧɤ˚ʘϋܓ
ৌਕజڌהמᚣʘ݁ഄʿྼ݄Ԩೌ
ࠠɽᜊਗf
5.3
Fair value estimation
5.3 ʮʪᄆ࠽Пࠇ
According to HKFRS 7 "Financial Instruments: Disclosures", financial instruments measured in the condensed consolidated balance sheet at fair value are required to disclose the fair value measurements by level of the following fair value measurement hierarchy:
- • Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
࣬ኽ࠰ಥৌਕజѓ๟ۆୋ 7 ໮˜ږ
ፄʈՈjמᚣ™dϞᗫږፄʈՈί
ᔊ׼ၝΥ༟ପࠋවڌٙʮʪᄆ࠽ࠇ
ඎცܲɨΐʮʪᄆ࠽ࠇඎݖ࿴מ
ᚣj
- h ޴Ν༟ପאࠋවίݺᚔ̹ఙ ٙజᄆ€͊຾ሜ዆€ୋ 1 ᄴ
  - • Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2)
- h ৰəୋ 1 ᄴהܼ̍ٙజᄆ ̮d༈༟ପձࠋව̙ٙᝈ࿀ ٙՉ˼፩ɝd̙މٜટ€у Էνᄆࣸאගટ€у๕Іᄆ ࣸ€ୋ 2 ᄴ
  - • Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3)
- h ༟ପձࠋවԨڢԱኽ̙ᝈ࿀ ̹ఙᅰኽٙ፩ɝ€уڢ̙ᝈ ࿀፩ɝ€ୋ 3 ᄴ

There were no transfers of financial assets between categories during the	͉ಂගʫʱᗳʘගԨೌৌਕ༟ପٙ
period. There were no other charges in valuation technique during the	ࠠɽᔷᅡf͉ಂගʫԨೌ΂ОП࠽
period.	Ҧஔٙᜊਗf
As at 31st December 2020, the Group's financial assets and liabilities that are	׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚d͉
measured at fair value are categorised as level 3 financial instruments. The	ණྠ˸ʮʪᄆ࠽ࠇඎٙৌਕ༟ପ
following table presents the changes in level 3 instruments for the period	ձࠋවʊΌ௅ʱᗳЪୋ 3 ᄴږፄʈ
ended 31st December 2020.	Ոf˸ɨމ׵࿚Їɚཧɚཧϋɤɚ
˜ɧɤɓ˚˟ಂගʫୋ 3 ᄴږፄʈ
Ոٙᜊਗڌf

5 FINANCIAL RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Continued)

5.3 Fair value estimation (Continued)

ৌਕࠬᎈ၍ଣʿږፄʈՈ€ᚃ

5.3

ʮʪᄆ࠽Пࠇ€ᚃ

Financial assets at fair value through other comprehensive income ܲʮʪᄆ࠽ ࠇɝՉ˼Όࠦ ϗूٙৌਕ༟ପ

Derivative financial instruments ࠃ͛ږፄʈՈ

Total ᐼᕘ

HK$'000 ɷಥʩ

At 1st July 2020 Settlements

׵ɚཧɚཧϋɖ˜ɓ˚ ഐၑ

Gains recognised in income statement ׵ϗूڌᆽႩϗू

1,863

(1,246) 617

{ {

(98) (98)

958 958

At 31st December 2020

׵ɚཧɚཧϋ ɤɚ˜ɧɤɓ˚

1,863

(386)

1,477

The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The Group performed the valuation of the financial assets at fair value through other comprehensive income by the use of discounted cash flow model based on the market conditions existed at balance sheet date and business forecast provided by management. Specific valuation technique used to value the derivative financial instruments includes using forward exchange rates at the balance sheet date to discount back to the present value. The key unobservable data includes the interbank forward exchange rate and the volatility of forward exchange rate. Changes in subjective input assumptions can materially affect the fair value estimate. There is no change in valuation technique during the period.

16 Interim Report 中期報告 20 / 21

ӚϞίݺᚔ̹ఙ൯ርٙږፄʈՈٙ ʮʪᄆ࠽л͜П࠽Ҧஔᔾ֛f͉ණ ྠ˴ࠅ࣬ኽӊࡈజѓಂ͋຅̹ࣛٙ ఙઋرʿ၍ଣᄴ౤ԶʘุਕཫПЪ ̈৿ணd͜൨ତତږݴඎʱؓجࠇ ၑܲʮʪᄆ࠽ࠇɝՉ˼Όࠦϗूٙ ৌਕ༟ପʘᄆ࠽f͜˸П࠽ࠃ͛ږ ፄʈՈٙत֛П࠽Ҧஔܼ̍л͜༟ ପࠋවڌ˚ಂٙჃಂිଟᔾ֛dϾ ה੻ᄆ࠽ұၑЇତ࠽fᗫᒟʔ̙ᝈ ࿀৿ணܼ̍ვБගჃಂිଟʿჃಂ ිଟʘتਗ׌fϤഃ˴ᝈ৿ணٙᜊ ਗਗ਼ࠠɽᅂᚤʮʪᄆ࠽Пၑf͉ಂ ගʫԨೌ΂ОП࠽Ҧஔٙᜊਗf

REVENUE FROM CONTRACTS WITH CUSTOMERS AND SEGMENT INFORMATION

܄˒Υߒʘϗɝʿʱ௅༟ࣘ

Unaudited ͊຾ᄲࣨ

Six months ended 31st December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2020 HK$'000 ɷಥʩ

2019 HK$'000 ɷಥʩ

Revenue from contracts with customers

Sales of goods

܄˒Υߒʘϗɝ ቖਯ஬ۜ

The Group is principally engaged in the manufacturing and trading of plastic	͉ණྠʘ˴ࠅุਕމ෧ᇭࡡࣘeЍ४e
materials, pigments, colorants, compounded plastic resins and engineering plastic	䋠Ѝኒe૿ࣘձʈ೻෧ࣘʘႡிʿ൯ርf
products.
The Group derived revenue from the sales of goods at a point in time.	͉ණྠ׵ݔɓࣛගᓃ፽੻ԸІቖਯ஬ۜ
ٙϗɝf
The chief operating decision-maker ("CODM") has been identified as the	࠯ࢩ຾ᐄӔഄ٫஗Ⴉ֛މ͉ʮ̡ʘੂБ
Executive Directors of the Company. Management has determined the operating	໨ԫf࠯ࢩ຾ᐄӔഄ٫ᄲൖ͉ණྠٙʫ
segments based on the reports reviewed by the CODM that are used to assess	௅జѓ˸൙Пڌତձʱৣ༟๕f၍ଣᄴ
performance and allocate resources. The CODM considers the business from the	ʊӔ֛࣬ኽϤഃజѓᔾ֛຾ᐄʱ௅f࠯
operations nature and the type of products perspective, including the trading of	ࢩ຾ᐄӔഄ٫੽຾ᐄ׌ሯʿପۜԉܓϽ
plastic materials ("Trading"), manufacturing and sale of colorants, pigments and	ᅇุਕd຅ʕܼ̍෧ᇭࡡࣘʘ൯ር€˜൱
compounded plastic resins ("Colorants"), manufacturing and sale of engineering	׸™i䋠ЍኒeЍ४ʿ૿ࣘʘႡிʿ൯
plastic products ("Engineering plastic") and other corporate and business activities	ር€˜䋠Ѝኒ™eʈ೻෧ࣘʘႡிʿ൯ር
("Others").	€˜ʈ೻෧ࣘ™ʿՉ˼Άุʿุਕݺਗ
€˜Չ˼™f

6 REVENUE FROM CONTRACTS WITH CUSTOMERS AND SEGMENT INFORMATION (Continued)
܄˒Υߒʘϗɝʿʱ௅༟ࣘ€ᚃ
Each of the Group's operating segments represents a strategic business unit that is managed by different business unit leaders. Inter-segment transactions are entered into under the normal commercial terms and conditions that would also be available to unrelated third parties. Information provided to the CODM is measured in a manner consistent with that in the condensed consolidated interim financial information.
The CODM assesses the performance of the operating segments based on a measure of revenue from contracts with customers and operating profit including corporate expneses, which is in a manner consistent with that of the condensed consolidated interim financial information.
͉ණྠӊɓ຾ᐄʱ௅˾ڌɓഄଫ׌ุਕ ఊЗdԨ͟ʔΝʘุਕఊЗ˴၍၍ଣf ʱ௅ගቖਯܲ๫ʮ̻ʹ׸ࡡۆٙ޴࿁ഃ ૢಛආБfΣ࠯ࢩ຾ᐄӔഄ٫జѓٙࠇ ඎ˙جၾᔊ׼ၝΥʕಂৌਕ༟ࣘʫ˙ج ɓߧf ࠯ࢩ຾ᐄӔഄ٫ኽ࿁܄˒Υߒʘϗɝʿ ຾ᐄ๐л€ܼ̍Άุ˕̈ٙࠇඎ൙Пᐄ ༶ʱ௅ٙڌତd˙όၾᔊ׼ၝΥʕಂৌ ਕ༟ࣘ޴ୌf
The segment information provided to the CODM for the reportable segments for the six months ended 31st December 2020 is as follows:
࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ ˜౤Զഗ࠯ࢩ຾ᐄӔഄ٫ʘ̙яΐజѓ ʱ௅༟ࣘνɨj
Unaudited ͊຾ᄲࣨ
Revenue from contracts with customers - Gross revenue - Inter-segment revenue
Revenue from external customers
Operating profit/(loss)
Finance income Finance costs
Profit/(loss) before income tax
18 Interim Report 中期報告 20 / 21

Engineering

HK$'000 ɷಥʩ

Trading ൱׸

Colorants 䋠Ѝኒ

HK$'000 ɷಥʩ

plastic	Others	Group
ʈ೻෧ࣘ	Չ˼	͉ණྠ
HK$'000	HK$'000	HK$'000
ɷಥʩ	ɷಥʩ	ɷಥʩ
122,697	{	987,372
(57)	{	(35,385)
122,640	{	951,987
17,156	(972)	55,459
47	{	441
(265)	{	(4,195)
16,938	(972)	51,705

REVENUE FROM CONTRACTS WITH CUSTOMERS AND SEGMENT INFORMATION (Continued)

The segment information provided to the CODM for the reportable segments for the six months ended 31st December 2020 is as follows: (Continued)

܄˒Υߒʘϗɝʿʱ௅༟ࣘ€ᚃ

࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ ˜౤Զഗ࠯ࢩ຾ᐄӔഄ٫ʘ̙яΐజѓ ʱ௅༟ࣘνɨj€ᚃ

Unaudited ͊຾ᄲࣨ

Trading ൱׸

Engineering

HK$'000 ɷಥʩ

Colorants 䋠Ѝኒ

HK$'000 ɷಥʩ

plastic	Others	Group
ʈ೻෧ࣘ	Չ˼	͉ණྠ
HK$'000	HK$'000	HK$'000
ɷಥʩ	ɷಥʩ	ɷಥʩ

Other information:

Additions to non-current assets

(other than financial instruments and deferred income tax assets) Depreciation of property, plant and equipment Depreciation of rights-of-use assets (Reversal of)/provision for impairment of inventories, net (Reversal of)/provision for loss allowance on trade receivables Fair value gains on derivative financial instruments

Չ˼༟ࣘj ڢݴਗ༟ପᄣ̋ €ৰږፄʈՈʿ ჈ַ೼ධ༟ପ̮ يุeᅀגʿண௪ұᔚ

Դ͜ᛆ༟ପұᔚ π஬ಯ࠽€ᅡΫŊ ๟௪Ñଋᕘ ൱׸Ꮠϗಛᑦฦ €ᅡΫŊᅡ௪ ࠃ͛ږፄʈՈʮʪᄆ࠽ ϗू

7,084

1,224

{ 8,355

327

4,302

3,836

260 8,725
39 2,366

2,847

515

{

228

2,083 16

(2,466) 896

(268)

(47) 203 { (112)

(958)

{

{ { (958)

6 REVENUE FROM CONTRACTS WITH CUSTOMERS AND SEGMENT INFORMATION (Continued)

The segment information provided to the CODM for the reportable segments as at 31st December 2020 is as follows:

܄˒Υߒʘϗɝʿʱ௅༟ࣘ€ᚃ

׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚౤Զഗ࠯ ࢩ຾ᐄӔഄ٫ʘ̙яΐజѓʱ௅༟ࣘν ɨj

Unaudited ͊຾ᄲࣨ

Trading ൱׸

Engineering

HK$'000 ɷಥʩ

Colorants 䋠Ѝኒ

HK$'000 ɷಥʩ

plastic	Others	Group
ʈ೻෧ࣘ	Չ˼	͉ණྠ
HK$'000	HK$'000	HK$'000
ɷಥʩ	ɷಥʩ	ɷಥʩ

Segment assets

ʱ௅༟ପ

392,720

341,097

163,434

140,539

1,037,790

Segment liabilities Segment borrowings

ʱ௅ࠋව ʱ௅࠾൲

(75,235) (265,128)

(37,525) (26,234)

(28,687) (3,425) (144,872)

(30,400)

{ (321,762)

(340,363)

(63,759)

(59,087)

(3,425)

(466,634)

20 Interim Report 中期報告 20 / 21

REVENUE FROM CONTRACTS WITH CUSTOMERS AND SEGMENT INFORMATION (Continued)

The segment information provided to the CODM for the reportable segments for the six months ended 31st December 2019 is as follows:

܄˒Υߒʘϗɝʿʱ௅༟ࣘ€ᚃ

࿚Їɚཧɓɘϋɤɚ˜ɧɤɓ˚˟ʬࡈ ˜౤Զഗ࠯ࢩ຾ᐄӔഄ٫ʘ̙яΐజѓ ʱ௅༟ࣘνɨj

Unaudited ͊຾ᄲࣨ

Engineering

Trading	plastic	Others	Group
൱׸	ʈ೻෧ࣘ	Չ˼	͉ණྠ
HK$'000	HK$'000	HK$'000	HK$'000
ɷಥʩ	ɷಥʩ	ɷಥʩ	ɷಥʩ
Revenue from contracts	܄˒Υߒʘϗɝ
with customers
- Gross revenue	Ñʱ௅ᐼቖਯ	646,971	101,029	{	935,627
- Inter-segment revenue	Ñʱ௅ගቖਯ	(28,326)	(633)	(88)	{	(29,047)
Revenue from external customers	̮௅܄˒ϗू	618,645	186,994	100,941	{	906,580
Operating (loss)/profit	຾ᐄ€ᑦฦŊ๐л	(10,539)	16,057	12,241	(1,212)	16,547
Finance income	ৌਕϗू	25	420	24	{	469
Finance costs	ৌਕ൬͜	(8,363)	(776)	(520)	{	(9,659)
(Loss)/profit before income tax	ৰ೼ۃ€ᑦฦŊ๐л	(18,877)	15,701	11,745	(1,212)	7,357

187,627

Colorants 䋠Ѝኒ

HK$'000 ɷಥʩ

6 REVENUE FROM CONTRACTS WITH CUSTOMERS AND SEGMENT INFORMATION (Continued)
The segment information provided to the CODM for the reportable segments for the six months ended 31st December 2019 is as follows: (Continued)
܄˒Υߒʘϗɝʿʱ௅༟ࣘ€ᚃ
࿚Їɚཧɓɘϋɤɚ˜ɧɤɓ˚˟ʬࡈ ˜౤Զഗ࠯ࢩ຾ᐄӔഄ٫ʘ̙яΐజѓ ʱ௅༟ࣘνɨj€ᚃ
Unaudited ͊຾ᄲࣨ
Engineering
Trading ൱׸
Colorants 䋠Ѝኒ
plastic ʈ೻෧ࣘ
Others
Չ˼
Group ͉ණྠ
HK$'000 ɷಥʩ
HK$'000 ɷಥʩ
HK$'000 ɷಥʩ
HK$'000 ɷಥʩ
HK$'000 ɷಥʩ
Other information:
Additions to non-current assets
(other than financial instruments and deferred income tax assets) Depreciation of property, plant and equipment
Depreciation of rights-of-use assets Provision for impairment of inventories, net Reversal of loss allowance on trade receivables
Fair value gains on derivative financial instruments
22 Interim Report 中期報告 20 / 21

Չ˼༟ࣘj ڢݴਗ༟ପᄣ̋ €ৰږፄʈՈʿ ჈ַ೼ධ༟ପ̮ يุeᅀגʿண௪ұᔚ

Դ͜ᛆ༟ପұᔚ π஬ಯ࠽๟௪Ñଋᕘ ൱׸ᏐϗಛᑦฦᅡΫ ࠃ͛ږፄʈՈʮʪᄆ࠽ ϗू

195

2,128

964

{ 3,287

373 225

4,032 1,973

3,792 105

260 8,457
39 2,342

2,784

501

{ { 3,285

{

(140) { (140)

(330)

{

{ { (330)

REVENUE FROM CONTRACTS WITH CUSTOMERS AND SEGMENT INFORMATION (Continued)

The segment information provided to the CODM for the reportable segments as at 30th June 2020 is as follows:

܄˒Υߒʘϗɝʿʱ௅༟ࣘ€ᚃ

׵ɚཧɚཧϋʬ˜ɧɤ˚౤Զഗ࠯ࢩ຾ ᐄӔഄ٫ʘ̙яΐజѓʱ௅༟ࣘνɨj

Audited ຾ᄲࣨ

Segment assets

ʱ௅༟ପ

Trading ൱׸

HK$'000 ɷಥʩ

424,868

Segment liabilities Segment borrowings

ʱ௅ࠋව (91,706)

ʱ௅࠾൲ (327,445)

Engineering

(419,151)Colorants 䋠Ѝኒ

HK$'000 ɷಥʩ

296,882

plastic	Others	Group
ʈ೻෧ࣘ	Չ˼	͉ණྠ
HK$'000	HK$'000	HK$'000
ɷಥʩ	ɷಥʩ	ɷಥʩ
132,536	140,553	994,839
(29,958)	(13,530)	(3,747)	(138,941)
(22,907)	(15,025)	{	(365,377)
(52,865)	(28,555)	(3,747)	(504,318)

The entity is domiciled in Hong Kong. The revenue from external customers from	͉ྼ᜗˸࠰ಥމਿήf࿚Їɚཧɚཧϋ
Hong Kong for the six months ended 31st December 2020 is approximately	ɤɚ˜ɧɤɓ˚˟ʬࡈ˜ԸІ࠰ಥʘ̮
HK$436,544,000 (2019: HK$383,416,000) and the total of its revenue	௅܄˒ϗूߒމ 436,544,000 ಥʩ€ɚཧ
from external customers from other locations (mainly in Mainland China) is	ɓɘϋj 383,416,000 ಥʩdϾԸІՉ
approximately HK$515,443,000 (2019: HK$523,164,000).	˼ήਜ€˴ࠅމʕ਷ʫήʘ̮௅܄˒ϗ
ूߒމ 515,443,000 ಥʩ€ɚཧɓɘϋj
523,164,000 ಥʩf

6 REVENUE FROM CONTRACTS WITH CUSTOMERS AND SEGMENT INFORMATION (Continued)
At 31st December 2020, the total of non-current assets other than financial instruments and deferred income tax assets located in Hong Kong is approximately HK$171,550,000 (30th June 2020: HK$175,586,000) and the total of these non-current assets located in other locations (mainly in Mainland China) is approximately HK$129,091,000 (30th June 2020: HK$118,131,000).
- 6 ܄˒Υߒʘϗɝʿʱ௅༟ࣘ€ᚃ
  ׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚dৰږፄ ʈՈʿ჈ַ೼ධ༟ପ̮З׵࠰ಥʘڢݴ ਗ༟ପߒމ 171,550,000 ಥʩ€׵ɚཧɚཧ ϋʬ˜ɧɤ˚j175,586,000 ಥʩdϾЗ ׵Չ˼ήਜ€˴ࠅމʕ਷ʫήʘϤഃڢ ݴਗ༟ପߒމ 129,091,000 ಥʩ€׵ɚཧɚ ཧϋʬ˜ɧɤ˚j118,131,000 ಥʩf

7 OTHER (LOSSES)/GAINS, NET

7 Չ˼€ᑦฦŊϗूÑଋᕘ

Net exchange loss

Gain on disposal of property, plant and equipment Fair value gains from derivative financial instruments Others

̮ිᑦฦ ̈ਯيุeᅀגʿண௪ϗू ࠃ͛ږፄʈՈʮʪᄆ࠽ϗू Չ˼

(3,286)

{ 958 1,079

(183) 114 330 307

(1,249)

568

24 Interim Report 中期報告 20 / 21

Unaudited ͊຾ᄲࣨ

Six months ended 31st December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2020	2019
HK$'000	HK$'000
ɷಥʩ	ɷಥʩ

8	OPERATING PROFIT	຾ᐄ๐л
Operating profit is stated after charging/(crediting) the following:	຾ᐄ๐лɗ຾ϔৰŊ€ࠇɝɨΐ΢ධܝ
ΐሪj

Unaudited ͊຾ᄲࣨ

Six months ended 31st December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2020	2019
HK$'000	HK$'000
ɷಥʩ	ɷಥʩ
Cost of inventories recognised as expenses included	ᆽႩЪක˕Ԩܼ̍׵ቖਯϓ͉ʘ
in cost of sales	̈ਯπ஬ϓ͉	755,021	754,314
Depreciation of property, plant and equipment	يุeᅀגʿண௪ұᔚ	8,725	8,457
Depreciation of rights-of-use assets	Դ͜ᛆ༟ପұᔚ	2,366	2,342
Operating lease rentals in respect of land and buildings	ɺήʿᅽρʘ຾ᐄॡ༣ॡږ	3,356	3,516
Employee benefit expenses, including	྇ࡰ၅л˕̈€ܼ̍໨ԫཇږ
Directors' emoluments	67,670	51,726
Reversal of provision for loss allowance	൱׸Ꮠϗಛᑦฦ๟௪ᅡΫ
on trade receivables, net	Ñଋᕘ	(112)	(140)
Provision for impairment of inventories, net	π஬ಯ࠽๟௪Ñଋᕘ	896	3,285
Provision for claim related to a legal case	Ϟᗫɓجܛൡதٙ͡॰ᅡ௪	3,802	{
Gain on disposal of property, plant and equipment	̈ਯيุeᅀגʿண௪ϗू	{	(114)
Fair value gains on derivative financial instruments	ࠃ͛ږፄʈՈʮʪᄆ࠽ϗू	(958)	(330)
Note:

ڝൗj ͉ಂගʫ࠰ಥतйБ݁ਜִ݁પ̈˜ڭఱุ™ࠇ ྌ౤Զʈ༟໾൨ʚ͉ණྠʘΥ༟ࣸڝ᙮ʮ̡f ִ݁໾п΍ 4,043,000 ಥʩ͜׵ϔಯ྇ࡰ၅л ˕̈dԨೌ΂О໾пڝ੭ٙ͊༺ϓૢ΁אՉ˼ א್ԫධf

During the period, the Hong Kong Special Administrative Region Government has launched the "Employment Support Scheme" (ESS) providing wage subsidies to eligible subsidiaries of the Group. Government grants amounted to HK$4,043,000 are deducted in the employee benefit expenses. There are no unfulfilled conditions or other contingencies attached to the grants.

9 FINANCE INCOME AND COSTS
ৌਕϗूʿ൬͜
Unaudited ͊຾ᄲࣨ
Six months ended 31st December
࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜
2020 HK$'000 ɷಥʩ
2019 HK$'000 ɷಥʩ
Finance income: - Interest income from bank deposits
ৌਕϗूj
Finance costs:
- - Interests on bank borrowings wholly repayable within five years
- - Interests on lease liabilities
- - Net exchange gains/(losses) on financing activities
ÑვБπಛлࢹϗɝ ৌਕ൬͜j
Ñც׵ʞϋʫΌᅰᎵᒔʘ ვБ࠾൲ʘлࢹ
Ñॡ༣ࠋවʘлࢹ
Ñፄ༟ุਕʘ̮ිϗूŊ€ᑦฦ ଋᕘ
Finance costs, net
ৌਕ൬͜Ñଋᕘ

10 INCOME TAX EXPENSE

೼ධ˕̈
Hong Kong profits tax has been provided for at the rate of 16.5% (2019: 16.5%)	࠰ಥл੻೼ɗ࣬ኽ͉ණྠ׵͉ಂගʫʘ
on the estimated assessable profit for the period. Income tax on the Group's	ПࠇᏐሙ೼๐лܲ೼ଟϵʱʘɤʬᓃʞ
subsidiaries established and operate in Mainland China has been calculated on the	€ɚཧɓɘϋjϵʱʘɤʬᓃʞࠇၑf
estimated assessable profit for the period at the rates of taxation as applicable to	ʕ਷ה੻೼ɗ࣬ኽ׵ʕ਷ʫή຾ᐄʘڝ
the relevant subsidiaries.	᙮ʮ̡׵͉ಂගʫʘПࠇᏐሙ೼๐лܲ
༈ഃڝ᙮ʮ̡הίήʘቇ͜೼ଟࠇၑᅡ
௪f

26 Interim Report 中期報告 20 / 21

INCOME TAX EXPENSE (Continued)

The amount of income tax charged to the interim consolidated income statement represents:

೼ධ˕̈€ᚃ ʕಂᔊ׼ၝΥϗूڌʘ೼ධ˕̈މj

Six months ended 31st December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2020	2019
HK$'000	HK$'000
ɷಥʩ	ɷಥʩ

Current income tax - Hong Kong profits tax - Mainland China corporate income tax

͉ಂ೼ධ

Ñ࠰ಥл੻೼ Ñʕ਷ʫήΆุה੻೼

2,097 7,967

824 3,431

Deferred income tax

჈ַ೼ධ

10,064 1,039

4,255 223

11,103

4,478

Unaudited ͊຾ᄲࣨ

Deferred income tax assets are recognised for tax losses carry forward to the extent that the realisation of the related tax benefit through the future taxable profits is probable. At 31st December 2020, the Group had unrecognised tax losses to be carried forward against future taxable income amounted to HK$313,008,000 (30th June 2020: HK$316,007,000). Aside from tax losses generated from certain subsidiaries incorporated in Mainland China amounted to HK$12,385,000 (30th June 2020: HK$11,635,000) with expiry dates from 2019 to 2023, the remaining tax losses have no expiry date. The potential deferred income tax assets in respect of these tax losses which have not been recognised amounted to approximately HK$52,699,000 (30th June 2020: HK$53,130,000).

ఱഐᔷٙ೼ਕᑦฦϾᆽႩٙ჈ַה੻೼ ༟ପසࠢ׵Ϟᗫʘ೼ਕлूϞ̙ঐீཀ ͊ԸᏐሙ೼ޮлྼତٙ௅ʱf׵ɚཧɚ ཧϋɤɚ˜ɧɤɓ˚d͉ණྠԨೌఱ̙ ഐᔷ˸תቖ͊ԸᏐሙ೼ϗूٙ೼ਕᑦฦ ߒ 313,008,000 ಥʩ€׵ɚཧɚཧϋʬ˜ ɧɤ˚j316,007,000 ಥʩᆽႩ჈ַה੻ ೼༟ପߒ 52,699,000 ಥʩ€׵ɚཧɚཧϋ ʬ˜ɧɤ˚j 53,130,000 ಥʩf׵ʕ਷ ʫήϓͭٙڝ᙮ʮ̡הପ͛͟ɚཧɓɘ ϋЇɚཧɚɧϋՑಂٙ೼ਕᑦฦߒމ 12,385,000 ಥʩ€׵ɚཧɚཧϋʬ˜ɧɤ ˚j11,635,000 ಥʩdՉቱ೼ਕᑦฦԨ ೌՑಂ˚f

11 DIVIDENDS
On 27th September 2019, the Directors resolved not to declare any final dividend for the year ended 30th June 2019.
On 27th February 2020, the Directors resolved not to declare any interim dividend for the period ended 31st December 2019.
On 29th September 2020, the Directors resolved not to declare any final dividend for the year ended 30th June 2020.
- 11 ٰࢹ
  ׵ɚཧɓɘϋɘ˜ɚɤɖ˚ᑘБʘึᙄ ɪd໨ԫᙄӔʔఱ࿚Їɚཧɓɘϋʬ˜ ɧɤ˚˟ϋܓ܁ݼ΂О͋ಂٰࢹf ׵ɚཧɚཧϋɚ˜ɚɤɖ˚ᑘБʘึᙄ ɪd໨ԫᙄӔʔఱ࿚Їɚཧɓɘϋɤɚ ˜ɧɤɓ˚˟ಂග܁ݼ΂Оʕಂٰࢹf ׵ɚཧɚཧϋɘ˜ɚɤɘ˚ᑘБʘึᙄ ɪd໨ԫᙄӔʔఱ࿚Їɚཧɚཧϋʬ˜ ɧɤ˚˟ϋܓ܁ݼ΂О͋ಂٰࢹf
  On 25th February 2021, the Directors declared an interim dividend of HK1.0 cent per share, totaling HK$3,692,000 for the six months ended 31st December 2020.
  On 25th February 2021, the Directors declared a special dividend of HK1.0 cent per share, totaling HK$3,692,000 for the six months ended 31st December 2020.
12 EARNINGS PER SHARE
The calculation of basic earnings per share is based on the profit attributable to equity holders of the Company for the period of HK$37,114,000 (2019: HK$587,000) and 369,200,000 (2019: 369,200,000) ordinary shares in issue during the period.
28 Interim Report 中期報告 20 / 21

׵ɚཧɚɓϋɚ˜ɚɤʞ˚d໨ԫ܁
бఱ࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚
˟ಂගݼ೯ʕಂٰࢹӊٰ 1.0 ಥ̀d΍
3,692,000 ಥʩf
׵ɚཧɚɓϋɚ˜ɚɤʞ˚d໨ԫ܁
бఱ࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚
˟ಂගݼ೯तйٰࢹӊٰ 1.0 ಥ̀d΍
3,692,000 ಥʩf
12 ӊٰޮл ӊٰਿ͉ޮлɗ࣬ኽ͉ಂʮٰ̡؇Ꮠ Ц๐л 37,114,000 ಥʩ€ɚཧɓɘϋj 587,000 ಥ ʩ ʿ ಂ ʫ ʊ ೯ Б ౷ ஷ ٰ 369,200,000 ٰ€ɚཧɓɘϋj369,200,000 ٰࠇၑf

12 EARNINGS PER SHARE (Continued)
Dilutive earnings per share for the period ended 31st December 2020 and 2019 equal basic earnings per share as there was no dilutive potential ordinary share as at the period ended 31st December 2020 and 2019.
- 12 ӊٰޮл€ᚃ ׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚ʿɚཧ ɓɘϋɤɚ˜ɧɤɓ˚d͉ʮ̡ԨೌՈ ᛅᑛᆑɢʘ౷ஷٰdΪϤd׵࿚Їɚཧ ɚཧϋɤɚ˜ɧɤɓ˚ʿɚཧɓɘϋ ɤɚ˜ɧɤɓ˚˟Շࡈಂගdӊٰᛅᑛ ޮл޴ഃ׵ӊٰਿ͉ޮлf
13 PROPERTY, PLANT AND EQUIPMENT, RIGHT-OF-USE ASSETS AND INVESTMENT PROPERTIES

13 يุeᅀגʿண௪eԴ͜ᛆ༟ପձ ҳ༟يุ

Unaudited ͊຾ᄲࣨ

Property, plant and

equipment	Right-of-use	Investment
يุeᅀגʿ	assets	properties
ண௪	Դ͜ᛆ༟ପ	ҳ༟يุ
HK$'000	HK$'000	HK$'000
ɷಥʩ	ɷಥʩ	ɷಥʩ
Net book value as at 1st July 2019	׵ɚཧɓɘϋɖ˜ɓ˚ʘ
ሪࠦଋᕘ	114,691	26,953	159,973
Currency translation differences	ිгࢨᕘ	(1,226)	(219)	(489)
Additions	ᄣ̋	3,287	{	{
Disposal	̈ਯ	(8)	{	{
Depreciation (Note 8)	ұᔚ€ڝൗ 8	(8,457)	(2,342)	{
Net book value as at	׵ɚཧɓɘϋɤɚ˜ɧɤɓ˚
31st December 2019	ʘሪࠦଋᕘ	108,287	24,392	159,484
Interim Report	中期報告 20 / 21

Net book value as at 1st July 2020

Currency translation differences Additions

Depreciation (Note 8)

׵ɚཧɚཧϋɖ˜ɓ˚ʘ ሪࠦଋᕘ ිгࢨᕘ ᄣ̋ ұᔚ€ڝൗ 8

105,307 6,142 8,355 (8,725)

25,167 155,292

1,414 2,398

{

(2,366)

{ {

Net book value as at

31st December 2020

׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚ ʘሪࠦଋᕘ

111,079

24,215

157,690

14 TRADE AND BILLS RECEIVABLES

൱׸ᏐϗಛʿᏐϗୃኽ

Audited
຾ᄲࣨ
30th June
2020
׵ɚཧɚཧϋ	׵ɚཧɚཧϋ
ɤɚ˜ɧɤɓ˚	ʬ˜ɧɤ˚
HK$'000	HK$'000
ɷಥʩ	ɷಥʩ

Unaudited ͊຾ᄲࣨ

31st December 2020

Trade receivables Less: loss allowance

൱׸Ꮠϗಛ ಯjᑦฦᅡ௪

253,001 (5,088)

175,944 (4,797)

Bills receivables

Ꮠϗୃኽ

247,913 28,663

171,147 24,098

276,576

195,245

At 31st December 2020, the aging analysis of trade receivables, based on invoice date, is as follows:

׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚൱׸Ꮠϗ ಛ࣬ኽ೯ୃ˚ಂʘሪᙧʱؓνɨj

Unaudited	Audited
͊຾ᄲࣨ	຾ᄲࣨ
31st December	30th June
2020	2020
׵ɚཧɚཧϋ	׵ɚཧɚཧϋ
ɤɚ˜ɧɤɓ˚	ʬ˜ɧɤ˚
HK$'000	HK$'000
ɷಥʩ	ɷಥʩ

30 Interim Report 中期報告 20 / 21

Below 90 days 91-180 days Over 180 days

90 ˚ʫ 91{180 ˚ ൴ཀ 180 ˚

242,626 5,198 5,177

42,546 109,515 23,883

253,001

175,944

14 TRADE AND BILLS RECEIVABLES (Continued)
The majority of the Group's sales are with credit terms of 30 to 90 days. The remaining amounts are on letter of credit or documents against payment.
Bill receivables are mainly with maturity period of within 180 days.
At 31st December 2020, there are bills of exchange of HK$12,845,000 (30th June 2020: HK$16,584,000) transferred to banks with recourse in exchange for cash. The transactions had been accounted for as collateralised bank advances (Note 16).
- 14 ൱׸ᏐϗಛʿᏐϗୃኽ€ᚃ ͉ණྠɽ௅΅ቖਯٙڦ൲ಂމɧɤЇ ɘɤ˚dՉቱ˸ڦً͜א˹ಛʹఊ˙ό ආБf ᏐϗୃኽʘՑಂ˚˴ࠅމɓϵɞɤ˚ʫf ׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚dԨೌ΂ Оڝ৛॰ᛆʘ൨ତୃኽᔷᜫʚ߰ʍვБ ˸౬՟ତږ 12,845,000 ಥʩ€׵ɚཧɚཧ ϋʬ˜ɧɤ˚j 16,584,000 ಥʩfϞᗫ ʹ׸ʊΐމתץʷٙვБྦಛ€ڝൗ 16f
15 TRADE PAYABLES
At 31st December 2020, the aging analysis of trade payables, based on invoice date, is as follows:

15 ൱׸Ꮠ˹ಛ ׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚൱׸Ꮠ˹ ಛ࣬ኽ೯ୃ˚ಂʘሪᙧʱؓνɨj

Unaudited ͊຾ᄲࣨ

31st December 2020 ׵ɚཧɚཧϋ ɤɚ˜ɧɤɓ˚

HK$'000 ɷಥʩ

Audited ຾ᄲࣨ

30th June 2020 ׵ɚཧɚཧϋ ʬ˜ɧɤ˚

HK$'000 ɷಥʩ

Below 90 days 91-180 days Over 180 days

90 ˚ʫ 91{180 ˚ ൴ཀ 180 ˚

75,187 221 710

85,622 1,279 356

76,118

87,257

16 BORROWINGS

࠾൲

Unaudited ͊຾ᄲࣨ

31st December 2020 ׵ɚཧɚཧϋ ɤɚ˜ɧɤɓ˚

HK$'000 ɷಥʩ

Audited ຾ᄲࣨ

30th June 2020 ׵ɚཧɚཧϋ ʬ˜ɧɤ˚

HK$'000 ɷಥʩ

Bank loans due for repayment within one year - secured

ც׵ɓϋʫᎵᒔʘვБ൲ಛ

Trust receipt loans due for repayment within one year - secured

ÑϞתץ ც׵ɓϋʫᎵᒔʘڦৄϗኽ൲ಛ

Bank advances for discounted bills (Note 14)

ÑϞתץ ვБ൨ତୃኽྦಛ€ڝൗ 14

78,060

230,857 12,845

106,080

242,713 16,584

Total borrowings

ᐼ࠾൲

321,762

365,377

Movements in borrowings are analysed as follows:

࠾൲ᜊਗʱؓνɨj

Unaudited ͊຾ᄲࣨ six months period ended 31 December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2020	2019
HK$'000	HK$'000
ɷಥʩ	ɷಥʩ

32 Interim Report 中期報告 20 / 21

Opening amount as at 1st July Currency translation differences Repayment of borrowings Drawdown of new borrowings (Decrease)/increase in trust receipt loans

׵ɖ˜ɓ˚ʘಂڋږᕘ ිгࢨᕘ Ꮅᒔ࠾൲ อ࠾൲ಛ ڦৄϗኽ൲ಛ€ಯˇŊᄣ̋

365,377

3,815

(62,572)

26,998

(11,856)

406,977

(1,774)

(112,821)

60,146

42,342

Closing amount as at 31st December

׵ɤɚ˜ɧɤɓ˚ʘಂ͋ږᕘ

321,762

394,870

BORROWINGS (Continued)

The Group has the following undrawn borrowing facilities:

࠾൲€ᚃ ͉ණྠϞ˸ɨ͊Դ͜ʘ࠾൲ᕘܓj

Floating rate - expiring beyond one year

Unaudited	Audited
͊຾ᄲࣨ	຾ᄲࣨ
31st December	30th June
2020	2020
׵ɚཧɚཧϋ	׵ɚཧɚཧϋ
ɤɚ˜ɧɤɓ˚	ʬ˜ɧɤ˚
HK$'000	HK$'000
ɷಥʩ	ɷಥʩ
ओਗлଟÑɓϋ˸ɪՑಂ	321,347	268,922

Note:

Bank borrowings of the Group are secured by certain property, plant and equipment, rights-of-use assets, investment properties and restricted cash with carrying amounts of HK$34,716,000 (30th June 2020: HK$34,992,000), HK$4,487,000 (30th June 2020: HK$4,406,000), HK$39,163,000 (30th June 2020: HK$39,163,000) and HK$38,077,000 (30th June 2020: HK$34,898,000), respectively.

ڝൗj ͉ණྠʘვБ൲ಛ˸௅ʱيุeᅀגʿண௪e Դ͜ᛆ༟ପeҳ༟يุʿաࠢՓٙვБπಛ މתץdՉሪࠦ࠽ʱйމ 34,716,000 ಥ ʩ€׵ ɚཧɚཧϋʬ˜ɧɤ˚j 34,992,000 ಥʩe 4,487,000 ಥʩ€׵ɚཧɚཧϋʬ˜ɧɤ˚j 4,406,000 ಥʩe 39,163,000 ಥʩ€׵ɚཧɚཧ ϋʬ˜ɧɤ˚j39,163,000 ಥʩʿ 38,077,000 ಥʩ€׵ɚཧɚཧϋʬ˜ɧɤ˚j 34,898,000 ಥʩf

17 SHARE CAPITAL

ٰ͉

Unaudited ͊຾ᄲࣨ

31st December 2020 ׵ɚཧɚཧϋ ɤɚ˜ɧɤɓ˚

HK$'000 ɷಥʩ

Audited ຾ᄲࣨ

30th June 2020 ׵ɚཧɚཧϋ ʬ˜ɧɤ˚

HK$'000 ɷಥʩ

Authorised: 800,000,000 (30th June 2020: 800,000,000)

جٰ֛͉j

ordinary shares of HK$0.10 each

800,000,000€׵ɚཧɚཧϋ ʬ˜ɧɤ˚j800,000,000 ӊٰࠦ࠽ 0.10 ಥʩʘ౷ஷٰ

80,000

Issued and fully paid: 369,200,000 (30th June 2020: 369,200,000)

ordinary shares of HK$0.10 each

ʊ೯Бʿᖮԑٰ͉j 369,200,000€׵ɚཧɚཧϋ ʬ˜ɧɤ˚j369,200,000 ӊٰࠦ࠽ 0.10 ಥʩʘ౷ஷٰ

36,920

18 COMMITMENTS
Capital commitments
18
וዄ ༟͉וዄ
Unaudited ͊຾ᄲࣨ
31st December 2020 ׵ɚཧɚཧϋ ɤɚ˜ɧɤɓ˚
HK$'000 ɷಥʩ
Audited ຾ᄲࣨ
30th June 2020 ׵ɚཧɚཧϋ ʬ˜ɧɤ˚
HK$'000 ɷಥʩ
Property, plant and equipment land and land use rights:
Contracted but not provided for
34 Interim Report 中期報告 20 / 21

يุeᅀגʿண௪ ၾɺήԴ͜ᛆj ʊબᛆШ͊ᖦߒ

RELATED PARTY TRANSACTIONS

The Group is controlled by Good Benefit Limited, a company incorporated in the British Virgin Islands, which owns 53.3% of the Company's shares. The remaining 46.7% of the shares were widely held. Substantially all of the shares of Good Benefit Limited are beneficially owned by certain Directors of the Company.

Details of compensation paid to key management of the Group (all being Directors of the Company) are as follows:

ᗫஹɛɻʹ׸ ͉ණྠ͟ Good Benefit Limited€ίߵ᙮ஈ ɾ໊ࢥൗ̅ϓͭʘʮ̡છՓdՉኹϞ͉ ʮ̡ϵʱʘʞɤɧᓃɧٰᛆdՉቱʘϵ ʱʘ̬ɤʬᓃɖٰᛆމᄿعܵϞfGood

Benefit Limited ྼሯɪɽ௅ʱٰᛆ͉͟ʮ ̡ʘ௅ʱ໨ԫྼूܵϞf ˕˹ʚ͉ණྠ˴ࠅ၍ଣɛࡰ€ѩމ͉ʮ̡ ʘੂБ໨ԫʘཇږ༉ઋνɨj

Six months ended 31st December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2020 HK$'000 ɷಥʩ

Unaudited ͊຾ᄲࣨ

Basic salaries, allowances and other benefits in kind Pensions - defined contribution plans

ਿ͉ᑚཇeݵ൨ʿՉ˼ྼيлू ৗ;ږÑޢ֛Զಛࠇྌ

8,893 54

6,248 54

8,947

6,302

2019 HK$'000 ɷಥʩ

19 RELATED PARTY TRANSACTIONS (Continued)
In addition to key management compensation disclosed above, the following transactions were carried out with related parties:
19
ᗫஹɛɻʹ׸€ᚃ ৰ˴ࠅ၍ଣɛࡰʘཇږ̮dၾᗫஹɛɻ ආБٙʹ׸νɨj
Six months ended 31st December
࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜
2020 HK$'000 ɷಥʩ
Unaudited ͊຾ᄲࣨ
2019 HK$'000 ɷಥʩ
Lease payment/operating lease expense to related parties:
- - Build Fair Limited (Note (i))
- - Shine Systems Plastic Material Company Limited
  (Note (ii))
- - Mr. HUI Sai Chung (Note (iii))
ʹ˹ʚᗫᑌɛɻ ʘᏐ˹ॡ༣ಛධŊ ॡ༣ॡږj Ñ౻ᑋϞࠢʮ̡€ڝൗ (i) Ñϵڥ෧ᇭࡡࣘϞࠢʮ̡ €ڝൗ (ii) Ñ஢˰ᑋ΋͛€ڝൗ (iii)
Interest expense to related parties:
- - Build Fair Limited (Note (i))
- - Shine Systems Plastic Material Company Limited
  (Note (ii))
- - Mr. HUI Sai Chung (Note (iii))
ʚᗫᑌɛɻʘлࢹ˕̈j
Ñ౻ᑋϞࠢʮ̡€ڝൗ (i) Ñϵڥ෧ᇭࡡࣘϞࠢʮ̡ €ڝൗ (ii) Ñ஢˰ᑋ΋͛€ڝൗ (iii)
Addition of right-of-use assets to related parties: - Mr. HUI Sai Chung (Note (iii))
ᗫᑌɛɻԴ͜ᛆ༟ପᄣ̋j
Ñ஢˰ᑋ΋͛€ڝൗ (iii)
36 Interim Report 中期報告 20 / 21

RELATED PARTY TRANSACTIONS (Continued)

ᗫஹɛɻʹ׸€ᚃ

Unaudited ͊຾ᄲࣨ

31st December 2020 ׵ɚཧɚཧϋ ɤɚ˜ɧɤɓ˚

HK$'000 ɷಥʩ

Lease liabilities to related parties:

ʚᗫᑌɛɻʘॡ༣ࠋවj

- Build Fair Limited (Note (i))
- Shine Systems Plastic Material Company Limited
(Note (ii))
- Mr. HUI Sai Chung (Note (iii))

Ñ౻ᑋϞࠢʮ̡€ڝൗ (i) Ñϵڥ෧ᇭࡡࣘϞࠢʮ̡ €ڝൗ (ii) Ñ஢˰ᑋ΋͛€ڝൗ (iii)

1,363

503 571

362

818 813

2,437

1,993

Audited ຾ᄲࣨ

30th June 2020 ׵ɚཧɚཧϋ ʬ˜ɧɤ˚

HK$'000 ɷಥʩ

ڝൗj
(i)	Build Fair Limited is a company wholly owned by Mr. HUI Sai Chung, a Director of the	(i)	౻ᑋϞࠢʮ̡͉͟ʮ̡໨ԫ஢˰ᑋ΋͛
Company.	Ό༟ኹϞf
(ii)	Shine Systems Plastic Material Company Limited is a company wholly owned by Mr. HUI	(ii)	ϵڥ෧ᇭࡡࣘϞࠢʮ̡͉͟ʮ̡໨ԫ஢
Kwok Kwong, a Director of the Company.	਷Έ΋͛Ό༟ኹϞf
(iii)	Mr. HUI Sai Chung is a Director of the Company.	(iii)	஢˰ᑋ΋͛މ͉ʮ̡໨ԫf

Notes:

Lease payments made to related parties are on mutually agreed basis.

˕˹ʚϞᗫஹɛɻٙᏐ˹ॡ༣ಛධ࣬ኽ ɓছਠุૢಛʿૢ΁ࠈͭf

20 EVENTS AFTER REPORTING PERIOD
During the year ended 30th June 2016, the Group received a claim from a customer in respect of the sales of alleged defective goods with claim amount approximately RMB5,000,000 (equivalent to approximately HK$5,952,000). On 7th May 2019, Wenling City People's Court of Zhejiang Province (the "Court") has made a judgement, ordering the customer to return the unused goods to the Group for a refund of the respective sales.
During the year ended 30th June 2020, the customer further lodged a claim amounted to approximately RMB5,000,000 (equivalent to approximately HK$5,952,000) in respect of originally closed claim disclosed as above. Following the hearing on 19th January 2021, the court has made its judgement on 29th January 2021, holding the Group liable to pay the customer compensation amounted to RMB3,193,000 (equivalent to approximately HK$3,802,000). As at 31st December 2020, a full provision against such compensation has been made by the Group.
The Directors intended to lodge an appeal to the Court. As at the date of this report, no further court hearing has been held.
38 Interim Report 中期報告 20 / 21

జѓಂܝԫධ ׵࿚Їɚཧɓʬϋʬ˜ɧɤ˚˟ϋ ܓd͉ණྠϗՑɓ܄˒ఱהፗٙʔΥ ࣸପۜ౤̈ߒ 5,000,000 ɛ͏࿆€ഃ࠽ߒ 5,952,000 ಥʩٙ͡॰f׵ɚཧɓɘϋ ʞ˜ɖ˚dएϪ޲๝Ꮚ̹ɛ͏ج৫€˜ج ৫™ʊЪ̈кӔԨࠅӋ༈܄˒Σ͉ණྠ ৗΫ͊Դ͜ʘପۜ˸౬՟޴ᗫቖਯʘৗ ಛf ׵࿚Їɚཧɚཧϋʬ˜ɧɤ˚˟ϋܓd ༈܄˒Ύఱɪࠑࡡʊഐࣩٙ͡॰౤̈ ߒ 5,000,000 ɛ͏࿆€ഃ࠽ߒ 5,952,000 ಥ ʩٙ͡॰f׵ɚཧɚɓϋɓ˜ɤɘ˚ ٙᄲଣܝdج৫ʊ׵ɚཧɚɓϋɓ˜ ɚɤɘ˚Ъ̈кӔd൒֛͉ණྠცఱ܄ ˒ሦᎵ˕˹΍ 3,193,000 ɛ͏࿆€ഃ࠽ߒ 3,802,000 ಥʩf׵ɚཧɚཧϋɤɚ˜ ɧɤɓ˚d͉ණྠʊఱϤሦᎵЪ̈Όᕘ ᅡ௪f ໨ԫจΣఱϤкӔ౤̈ɪൡf׵͉జѓ ˚ԨೌආБආɓӉٙᄲଣf

INTERIM AND SPECIAL DIVIDENDS

The Directors are pleased to declare an interim dividend of Hong Kong 1.0 cent per share for the six months ended 31st December 2020 to members whose names appear on the Register of Members on 26th March 2021. As a reward to the shareholders for their continuous support, having considered the business, financial and cash flow position of the Group, the Directors have also declared a special dividend of Hong Kong 1.0 cent per share for the six months ended 31st December 2020 to members whose names appear on the Register of Members on 26th March 2021. The interim dividend and the special dividend will be paid on or before 12th April 2021.

ʕಂʿतйٰࢹ ໨ԫึ್ؚ܁бݼ೯࿚Їɚཧɚཧϋɤɚ˜ ɧɤɓ˚˟ʬࡈ˜ʘʕಂٰࢹӊٰ 1.0 ಥ̀ʚ ׵ɚཧɚɓϋɧ˜ɚɤʬ˚Τΐٰ؇Τ̅ʘٰ ؇fމజഈٰ؇ɓٜ˸Ըʘ˕ܵd໨ԫึ͵׵ Ͻᅇཀ͉ණྠʘุਕeৌਕʿତږݴًرܝd ܁бఱ࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ ˜ݼ೯तйٰࢹӊٰ 1.0 ಥ̀ʚ׵ɚཧɚɓϋ ɧ˜ɚɤʬ˚Τΐٰ؇Τ̅ʘٰ؇fʕಂٰ ࢹʿतйٰࢹਗ਼׵ɚཧɚɓϋ̬˜ɤɚ˚אʘ ۃ˕˹f

CLOSURE OF REGISTER OF MEMBERS

The Register of Members of the Company will be closed from Wednesday, 24th March 2021 to Friday, 26th March 2021 (both dates inclusive) during which period no transfer of shares will be registered. In order to qualify for the interim dividend and the special dividend, all properly completed transfer forms accompanied by the relevant share certificates must be lodged with the Company's Branch Share Registrar in Hong Kong, Union Registrars Limited, Suites 3301-04, 33/F., Two Chinachem Exchange Square, 338 King's Road, North Point, Hong Kong not later than 4:00 p.m. on Tuesday, 23rd March 2021.

ᅲ৾፬ଣٰ΅ཀ˒೮া˓ᚃ ͉ʮ̡ਗ਼͟ɚཧɚɓϋɧ˜ɚɤ̬˚€݋ಂɧ Їɚཧɚɓϋɧ˜ɚɤʬ˚€݋ಂʞd࠯҈Շ ˂ܼ̍ίʫdᅲ৾፬ଣٰୃཀ˒೮া˓ᚃfމ ᆽڭԮϞʕಂٰࢹʿतйٰࢹdהϞ෬Ѽʘٰ ΅ཀ˒˖΁ஹΝϞᗫٰୃd඲׵ɚཧɚɓϋɧ ˜ɚɤɧ˚€݋ಂɚɨʹ̬͍ࣛۃ৔༺͉ʮ̡ ʘ࠰ಥٰ΅ཀ˒೮াʱஈdᑌΥᗇՎ೮াϞࠢ ʮ̡dήѧމ࠰ಥ̏ԉߵެ༸ 338 ໮ശᏔʹ׸ ᄿఙ 2 ಂ 33 ᅽ 3301-04 ܃d፬ଣ೮াf

MANAGEMENT DISCUSSION AND ANALYSIS

BUSINESS REVIEW

In the second half of 2020, the COVID-19 pandemic continued spreading across the world and disabled global economies from returning to normal. However, stabilised oil prices and increased demand for raw materials became conducive to rising plastic material prices. Furthermore, with the pandemic brought under control and with the implementation of the inner circulation policy in Mainland China, the release of demand and resumption of production and exports grew faster than expected. As domestic consumption began to heat up, Mainland China's economy posted gradual recovery. International capital inflows to Mainland China led to the Renminbi exchange rate's appreciation. Riding on the boost from related short-term favourable factors, the sales performance of the Group's customers gradually returned to normal and their orders increased. As a result, the Group's business improved steadily. For the six months ended 31st December 2020, the Group's total turnover amounted to HK$951,987,000 (2019: HK$906,580,000), 5% higher than the previous year.

၍ଣᄴীሞʿʱؓ ุਕΫᚥ ɚཧɚཧɨ̒ϋdอۨڿًषݭष (COVID-19) ޥઋΌଢܵᚃᇶַdڜᖟᐑଢ຾᏶ܨూ͍੬d ್ϾذᄆΫూ̻ᖢdࡡࣘცӋᓒɽлλ෧ᇭࡡ ࣘᄆࣸܵᚃᖂʺfϤ̮dա౉׵਷ʫޥઋաછ ʿʫృᐑ݁ഄdცӋᙑ׳ʿ͛ପձ̈ɹܨూ ஺ܓҞ׵ཫಂdʫცΌࠦΫาdʕ਷ʫή຾᏶ ஼နూᘽd਷ყ༟͉ݴɝʕ਷ʫήપਗɛ͏࿆ ිଟʺ࠽f޴ᗫ೵ಂлλΪ९ٙՐዧɨd͉ණ ྠ܄˒ٙቖઋ͵஼နΫూ͍੬dࠈఊᅰඎ޴Ꮠ ᄣ̋˿͉ණྠุਕᖢӉҷഛf࿚Їɚཧɚཧϋ ɤɚ˜ɧɤɓ˚˟ʬࡈ˜d͉ණྠʘᐼᐄุᕘ މ 951,987,000 ಥʩ€ɚཧɓɘϋj 906,580,000 ಥʩd༰̘ϋɪʺϵʱʘʞf

BUSINESS REVIEW (Continued)

MANAGEMENT DISCUSSION AND ANALYSIS (Continued)

In addition to the improved operating environment during the period, the Group effectively implemented the strategy of continuously optimising its product mix, exerting greater efforts in clearing inventory and streamlining costs. Hence, the overall gross profit spiked by 44% to HK$150,875,000 (2019: HK$104,763,000) while the gross profit margin rose by 4.3 percentage points to 15.8% compared to the level in the last cooresponding period. Profit attributable to the Company's equity holders increased by 63.2 times to HK$37,114,000 (2019: HK$587,000). Basic earnings per share were HK10.05 cents (2019: HK0.16 cents).

To reward shareholders for their unwavering support, the Board of Directors ("the "Board") recommended the payment of an interim dividend of HK1.0 cent per share (2019: Nil) and a special dividend of HK1.0 cent per share.

Despite challenges during the period, domestic consumption was fully restored, driven by the inner circulation policy. Moreover, increasing public awareness to hygiene due to the pandemic outbreak boosted surging demand for post-pandemic products, such as medical devices and air filter systems, generating more orders for the Group's plastic material trading business. Consequently, turnover grew by 5.5% to HK$652,386,000 compared to the same period last year, making it the most improved performer among three major businesses during the interim period. Apart from maintaining close ties with existing customers and continuously producing electrical appliances and traditional automobiles to bring stable orders, the Group also provided materials to the developers of smart products, household goods and high-end kitchenware to open up income sources. Rising oil prices resulted in growing demand for raw materials, thereby leading to increasing plastic material prices. Due to the Group's effective reduction and control of inventory, inventory level has improved. Gross profit margin climbed by 3.6 percentage points compared to the same period in the previous year.

၍ଣᄴীሞʿʱؓ€ᚃ ุਕΫᚥ€ᚃ ಂʫdৰə຾ᐄᐑྤҷഛd͉ණྠܵᚃᎴʷପ ۜଡ଼Υe̋ɽɢܓ૶ଣࢫπʿၚᔊϓ͉ٙഄଫ ੻֝d˿዆᜗ˣлɽషᄣ̋ϵʱʘ̬ɤ̬Ї 150,875,000 ಥʩ€ɚཧɓɘϋj 104,763,000 ಥ ʩdˣлଟ༰̘ϋΝಂᄣ̬̋ᓃɧࡈϵʱᓃЇ ϵʱʘɤʞᓃɞfʮٰ̡؇ᏐЦ๐лɽషᖂʺ ʬɤɧᓃɚ࠴Ї 37,114,000 ಥʩ€ɚཧɓɘϋj 587,000 ಥʩfӊٰਿ͉ޮлމ 10.05 ಥ ̀€ɚ ཧɓɘϋj0.16 ಥ̀f މΫ㉿ٰ؇ʘʔ኶˕ܵd໨ԫึܔᙄݼ೯ʕಂ ٰࢹӊٰ 1.0 ಥ̀€ɚཧɓɘϋjೌʿतйٰࢹ ӊٰ 1.0 ಥ̀f ᒱ್ಂʫࠦ࿁ʔˇܿ኷dШίʫృᐑ݁ഄٙપ ਗd਷ʫऊ൬ආɝΌࠦܨూචݬd̋ɪޥઋ˿ ̹͏࿁ሊ͛จᗆ˚န౤৷d੭ਗᔼᐕኜҿe٤ ंཀᓩӻ୕ഃܝޥઋପۜცӋܢᄣd޴ᗫࠈఊ ᄣ̋лλ෧ᇭࡡࣘ൱׸ุਕʘᐄุᕘ༰̘ϋΝ ಂɪʺϵʱʘʞᓃʞЇ 652,386,000 ಥʩdϤ ุਕ͵ίɧɽุਕʕಂʫڌତᐏ੻௰ᜑഹʘҷ ഛfৰəၾତϞ܄˒ڭܵၡ੗ᑌᖩdᘱᚃ͛ପ ཥኜeෂ୕ӛԓഃପۜމ͉ණྠ੭Ըᖢ֛ٙࠈ ఊ̮d͉ණྠ͵ߧɢމ౽ঐପۜe࢕֢ۜ͜ʿ ৷၌ᄼגۜ͜ක೯ਠ౤Զהცࡡࣘdᄣ̋ϗɝ ಬ༸fϤ̮dذᄆɪʺ੭ਗࡡࣘცӋᓒɽdл λ෧ᇭࡡࣘᄆࣸܵᚃᖂʺd͉ණྠϞࣖಯˇʿ છՓࢫπඎdπ஬ઋر੻˸ҷഛdˣлଟ༰̘ ϋΝಂɪʺɧᓃʬࡈϵʱᓃf

BUSINESS REVIEW (Continued)

MANAGEMENT DISCUSSION AND ANALYSIS (Continued)

During the period under review, the work-from-home mode in different countries across the world that encouraged citizens to stay home and to go out less became the new normal, thus reshaping people's way of living and driving up the continued increase in demand for general home appliances such as kitchenware. Facing changes in consumers' consumption categories and habits, the Group's export customers also changed their sales strategy and shifted to the export of high-end kitchenware, such as cooking utensils, coffee machines and ovens for baking cakes and bread, in order to explore new income streams. Meanwhile, the Group also flexibly modified its existing product portfolio to meet the huge order demand from customers. As a result, turnover of the engineering plastic product business jumped by 21.5% to HK$122,640,000. With the reduction of the Group's inventory due to rising plastic material prices, as well as the effective cost control measures, gross profit margin grew by 4.3 percentage points and profit before taxation surged by 44.2% to HK$16,938,000 when compared to the same period in the previous year. Apart from maintaining its orders from internationally-renowned brands, the Group continued to enrich its product portfolio, leverage its business advantages, focus on promoting higher-margin products, and actively approach and engage in discussions with end customers, all in a bid to explore new income streams and expand its customer base. By capitalising on its industry experience of more than 50 years and excellent reputation, the Group is set to secure more orders and broaden its existing customer portfolio.

The pandemic has caused delays in the date of completion of various property projects. These delays, coupled with short-term demand for food packaging and basic necessities gradually returning to normal level, have led to a drop in the turnover of the colorants, pigments and compounded plastic resins segment to HK$176,961,000 during the period. However, with the rise in plastic material prices, its gross profit margin increased by 4.8 percentage points, while profit before taxation was maintained at a similar level as that during the same period in the previous year. With the market undergoing consolidation in which only competent enterprises are able to survive, small enterprises, engaged in low-end manufacturing businesses with relatively lower cost control ability and lower technical standards, have been acquired and phased out. In this regard, the Group will continue implementing its proven business strategies and centralise resources in the production of high-end sanitary and electronic products. It will also raise the production capacity of its factories to secure high gross profit margin orders and maintain stable business development.

၍ଣᄴীሞʿʱؓ€ᚃ ุਕΫᚥ€ᚃ Ϋᚥಂʫdί࢕ʈЪᅼόʿ΢਷ִོ݁Ꮈ͏଺ व࢕ಯˇ̮̈ϓމอ੬࿒dࠠ෧ɛࡁٙ͛ݺᅼ όd˿ɓছ࢕ࢬཥኜνᄼՈۜ͜ഃცӋܵᚃɪ ʺfࠦ࿁ऊ൬٫ٙऊ൬ۜᗳձБމ୦࿕ٙᔷ ᜊd͉ණྠٙ̈ɹ܄˒͵ॸॸҷᜊᐄቖഄଫd ᔷᐄ̈ɹ৷၌ᄼՈۜ͜dܼ̍೎࠮͜Ոeդ ਥዚeञೈटஐጞʿᙢ̍ٙटᘟഃdరӋอ̈ ༩fၾϤΝࣛd͉ණྠ͵ᜳݺҷᜊତϞପۜଡ଼ Υ˸တԑ܄˒ᕼɽࠈఊٙცӋd੭ਗʈ೻෧ࣘ ุਕᐄุᕘ፽੻ɽషᄣڗϵʱʘɚɤɓᓃʞ Ї 122,640,000 ಥʩfΪ෧ᇭࡡࣘᄆࣸ৷Ԑᜫ ͉ණྠϞ̘ࣖπ஬d˸ʿϓ͉છՓԈࣖdˣл ଟ፽੻̬ᓃɧࡈϵʱᓃʘᄣషfৰ೼ۃޮл ༰̘ϋΝಂ፽੻ϵʱʘ̬ɤ̬ᓃɚʘᄣషЇ 16,938,000 ಥʩdุᐶڌତڥᘆf͉ණྠৰə ਗ਼ጐ฽ၪܵ਷ყٝΤۜ೐ࠈఊ̮dһீཀܵᚃ ᔮబପۜଡ଼Υdഛ͜ΆุᎴැd˸༰৷ˣлଟ ٙପۜމપᄿࠠᓃdጐ฽ၾ୞၌܄˒ટݻdක ᚠอϗɝಬ༸ʿ܄˒໊fீཀ͉ණྠགྷʞɤϋ ٙБุᔮబ຾᜕ʿᎴԄΆุਠᚑdਗ਼ن՟һε ࠈఊdᔮబତϞ܄˒ଡ଼Υf εධגήପධͦΪޥઋᗫڷપ፰ംʈd˸ʿ̹ ఙ࿁࠮ۜ̍ༀʿ̀ცۜٙ೵ᅲცӋ஼နሜ዆Ї ͍੬˥̻d˿䋠ЍኒeЍ४ʿ૿ุࣘਕ׵ಂʫ ᐄุᕘΫໝЇ 176,961,000 ಥʩf್Ͼdա౉ ෧ᇭࡡࣘᄆࣸɪʺdˣлଟᄣ̬̋ᓃɞࡈϵʱ ᓃdৰ೼ۃޮлۆၪܵ׵̘ϋΝಂ޴ߒʘ˥ ̻fᎇഹ̹ఙܵᚃӖࢮव੶ٙ዆Υତ൥dϓ͉ છՓঐɢձҦஔ˥๟޴࿁༰Эd˸ʿ੽ԫЭ၌ ႡிٙʃۨΆุաޥઋላᏘ஗ΥԻଇӖfϞԈ ʿϤd͉ණྠਗ਼ၪܵБʘϞุࣖٙਕഄଫdණ ʕᄣ̋͛ପ৷၌ሊकପۜʿཥɿପۜഃf͉ණ ྠਗ਼ܵᚃ౤ʺ΢ᅀגପঐ˸ن՟৷ˣлଟٙࠈ ఊdڭุܵਕᖢ֛೯࢝f

MANAGEMENT DISCUSSION AND ANALYSIS (Continued)

PROSPECTS

The world's economy is expected to recover with the launch of COVID-19 vaccines and the conclusion of the US presidential election. Looking ahead to the first half of 2021, Mainland China will continue focusing on the "domestic circulation" development strategy and rely on strong domestic demand to support economic recovery. Europe and the US will continue to be affected by the pandemic, making global economic growth prospects highly uncertain. If no widespread outbreak recurs going forward, the Group expects to see stable business development in the first half of 2021. The management is also cautiously optimistic in the Group's long term development.

As the post-COVID-19 new normal emerges, the Group believes kitchenware will become its growth driver in the future, particularly those which employ high-production technologies that will grab market attention. In addition to producing traditional products, the Group will draw on its corporate advantage and years of extensive industry experience to invest in resources that will advance high-end production technologies, including electric vehicles and other new energy vehicles-related products so as to further optimise its product mix.

၍ଣᄴীሞʿʱؓ€ᚃ ࢝ૐ ᎇഹޥߴ௔ᚃપ̈ʿߕ਷ɽ፯ྡྷࡾໝ֛dᐑଢ ຾᏶ϞૐΫาf࢝ૐɚཧɚɓɪ̒ϋd਷ʫਗ਼ ڭܵʫృᐑމ೯࢝˴ሜdᕼɽٙʫც̹ఙ˕ܵ ຾᏶ూᘽdШᆄߕ̹ఙʥ͊ঐԐ̈ޥઋ௕ᛣd Όଢ຾᏶ᄣڗۃ౻ʥπί৷ܓʔᆽ֛׌fνޥ ઋӚΎ̈ତɽ஝ᅼᖑ೯dཫಂɚཧɚɓɪ̒ϋ ͉ණྠʘุਕਗ਼ึᔷᒈᖢ֛೯࢝d၍ଣᄴ࿁͊ ԸڗჃ೯࢝ܵᄲฐᆀᝈ࿒ܓf ޥܝอ੬࿒ʊနϓҖd͉ණྠ޴ڦᄼՈۜ͜ਗ਼ ᘱᚃϓމ͊Ըٙᄣڗᓃd৷͛ପҦஔٙਗ਼ᐏ̹ ఙۧڡfৰəᘱᚃ͛ପෂ୕ପ̮ۜd͉ණྠਗ਼ ഛ͜ΆุᎴැʿεϋٙБุᔮబ຾᜕dҳɝ༟ ๕̋੶৷၌͛ପҦஔdܼ̍ཥਗԓʿՉ˼อঐ ๕ӛԓ޴ᗫପۜdආɓӉᎴʷପۜଡ଼Υf

Various real estate market data continued to improve at the end of last year according to the "National Real Estate Development and Sales in January to December 2020" issued by the National Bureau of Statistics. It is expected that the property market to gradually rebound in 2021, with annual growth rate estimated between 5% and 10% that will be favourable to the Group's sales of quality sanitary products.

Ϥ̮dኽ਷࢕୕ࠇ҅࡝೯ڌٙ 2020 ϋ 1-12 ˜ ΅Ό਷גήପක೯ҳ༟ձቖਯઋر'dגήପ̹ ఙ΢ධ༟ࣘ׵̘ϋϋֵѩܵᚃూᘽdཫࠇɚཧ ɚɓϋᅽ̹஼ӉΫาdΌϋᄣ஺ίϵʱʘʞЇ ɤʘගdਗ਼лλ͉ණྠ৷ሯඎٙሊकପۜٙቖ ਯf

As for cost control, the Group will continue implementing stringent cost control measures, including improving financing methods to maintain the existing low borrowing level and reducing administrative and distribution fees and production costs. It will also enhance overall administrative efficiency by sharing internal resources to achieve greater synergies and a solid financial position.

The Group was able to alleviate the pandemic's negative impact with the strong support of its management team and customers, as well as the diligence and contribution of all staff. I would like to extend to them my sincerest appreciation. As always, the Group will continue exerting relentless efforts to achieve long-term and stable growth as well as generate long-term returns for shareholders.

ϓ͉છՓ˙ࠦd͉ණྠᘱᚃᘌࣸੂБϓ͉છՓ ણ݄dܼ̍ҷഛፄ༟˙ό˸ڭܵତϞЭ࠾൲˥ ̻eࠥЭБ݁eʱቖ൬͜˸ʿ͛ପϓ͉dԨஷ ཀʫ௅༟๕ʝԮ౤ʺ዆᜗Б݁ࣖଟ˸೯౨һɽ ٙ՘Νࣖूdᜫණྠৌਕًرһމᖢ਄f ͉ණྠϓ̌ಯЭޥઋላᏘdᕎʔක၍ଣྠඟʿ ܄˒ٙ˕౪ձΌ᜗ࡰʈٙԔ௶্ᘠdҢᔫϤڌ ͪ༐ᅚٙᑽจf͉ණྠึ༐ν˸Иʔ኶рɢd ။းהঐྼତڗಂᖢ֛ᄣڗdމٰ؇੭ԸڗჃ Ϋజf

LIQUIDITY AND FINANCIAL RESOURCES

The Group generally finances its operations with internally generated cashflow and banking facilities provided by its principal bankers. As at 31st December 2020, the Group has available aggregate bank loan facilities of approximately HK$646,167,000 of which HK$324,820,000 have been utilised and were secured by corporate guarantee issued by the Group and legal charges on certain leasehold land and buildings, investment properties and machinery and equipment in Mainland China and Hong Kong owned by the Group. The Group's cash and bank balances as at 31st December 2020 amounted to approximately HK$155,639,000. The Group's gearing ratio as at 31st December 2020 was approximately 59%, based on the total bank borrowings of approximately HK$321,762,000 and the shareholders' funds of approximately HK$545,184,000.

ݴਗ༟ږʿৌਕ༟๕ ͉ණྠɓছ˸ʫ௅ݴਗତږʿ˴ࠅვБ౤ ԶვБ൲ಛЪމᐄ༶༟ږf׵ɚཧɚཧϋ ɤɚ˜ɧɤɓ˚d͉ණྠ̙ਗ͜ვБ൲ಛߒ 646,167,000 ಥʩd຾ʊਗ͜Υ΍ߒ 324,820,000 ಥʩd༈ഃ൲ಛɗ͉͟ණྠ೯̈ٙዄڭʿ͉ණ ྠኹϞʘ߰ʍʕ਷ʫήʿ࠰ಥॡ༣ɺήʿᅽ ρeҳ༟يุʿዚኜʿண௪ʘج֛תץЪዄ ڭf͉ණྠ׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚ʘ ତږʿვБഐቱߒމ 155,639,000 ಥʩf࣬ኽ ვБ൲ಛᐼᕘߒ 321,762,000 ಥʩʿٰ؇༟ږ ߒ 545,184,000 ಥʩࠇၑd͉ණྠ׵ɚཧɚཧ ϋɤɚ˜ɧɤɓ˚ʘ༟ପࠋවˢଟߒމϵʱʘ ʞɤɘf

Details of the Group's capital commitments are disclosed in Note 18 to the condensed consolidated interim financial information.

Ϟᗫ͉ණྠʘ༟͉וዄʊ̊༱׵ᔊ׼ၝΥʕಂ ৌਕ༟ࣘڝൗ 18f

FOREIGN EXCHANGE RISK

The Group's bank borrowings and cash and cash equivalents are primarily denominated in Hong Kong dollars, Renminbi and US dollars. The Group's purchases were principally denominated in US dollars. The Group closely monitors currency fluctuations and manages its exchange risk by entering into forward exchange contracts from time to time.

As at 31st December 2020, the Group had outstanding forward foreign exchange contracts mainly to purchase US dollars. The maximum notional principal amounts of these outstanding forward foreign exchange contracts at 31st December 2020 were as follows:

Sell HK dollars for US dollars

اಥʩ˸൯ɝߕʩ

̮ිࠬᎈ ͉ණྠʘვБ࠾൲ʿତږʿତږഃᕘ˴ࠅމಥ ʩeɛ͏࿆ʿߕʩf͉ණྠٙમᒅ˴ࠅ˸ߕʩ ࠇၑf͉ණྠʔࣛ੗ʲ္࿀ිଟتਗઋرʿீ ཀ࿁әჃಂ̮ිΥߒ၍ଣිଟتਗࠬᎈf ׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚d͉ණྠϞ͊ʹ ϗ̮ිჃಂΥߒ˴ࠅ˸൯ߕʩf׵ɚཧɚཧϋ ɤɚ˜ɧɤɓ˚Ϥഃ͊ʹϗ̮ිჃಂΥߒʘ௰ ৷ண֛͉ږᕘνɨj

2020 HK$'000 ɷಥʩ

EMPLOYEE INFORMATION

As at 31st December 2020, the Group employed a total of approximately 620 full-time employees. The Group's emolument policies are formulated on the performance of individual employees and are reviewed annually. The Group has an incentive scheme which is geared to the profit of the Group and the performance of its employees, as an incentive to motivate its employees to increase their contribution to the Group. The Group also provides social and medical insurance coverage, and provident fund scheme (as the case may be) to its employees depending on the location of such employees.

྇ࡰ༟ࣘ ׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚d͉ණྠϞΥ΍ ߒ 620 ΤΌᔖ྇ࡰf͉ණྠʘཇږ݁ഄɗܲࡈ й྇ࡰʘڌତϾՓࠈdԨӊϋ֛ಂᏨীf͉ණ ྠ͵މՉ྇ࡰ౤ԶɓࡈᆤᎸࠇྌd˸ོᎸࡰʈ ᄣ̋࿁ʮ̡ʘ্ᘠdઓ඲ൖ͉ණྠʘ๐лʿ྇ ࡰʘڌତϾ֛f͉ණྠʔΝήਜʘ྇ࡰ͵ᐏ౤ Զٟึʿᔼᐕڭᎈڭღ˸ʿʮጐږࠇྌf

PURCHASE, SALE AND REDEMPTION OF THE COMPANY'S LISTED SECURITIES

The Company has not redeemed any of its shares during the period. Neither the Company nor any of its subsidiaries has purchased or sold any of the Company's listed securities during the period.

ᒅ൯ëਯʿᛙΫ͉ʮ̡ʘɪ̹ᗇՎ

͉ʮ̡׵ಂʫԨೌᛙΫՉٰୃf͉ʮ̡אՉ΂ Оڝ᙮ʮ̡׵ಂʫ͵ೌᒅ൯א̈ਯ͉ʮ̡ʘɪ ̹ᗇՎf

SHARE OPTIONS

On 22nd November 2012, the Company has adopted a share option scheme (the "Scheme") and terminated the share option scheme adopted by the Company on 5th

December 2002. Under the terms of the Scheme, the Directors may, at their discretion, invite eligible participants to take up Share Options to subscribe for the shares of the Company subject to the terms and conditions stipulated therein.

No Share Options under the Scheme were granted, exercised or cancelled during the period.

ᒅٰᛆ ͉ʮ̡ʘٰ؇׵ɚཧɓɚϋɤɓ˜ɚɤɚ˚મ ॶəᒅٰᛆࠇྌ€˜ᒅٰᛆࠇྌ™dԨΝ˚՟ ऊə͉ʮ̡ʘٰ؇׵ɚཧཧɚϋɤɚ˜ʞ˚ટ ॶʘᒅٰᛆࠇྌf࣬ኽᒅٰᛆࠇྌʘૢಛʿૢ ΁d໨ԫึ̙৤ઋᒗሗΥ༟ࣸਞၾ٫ટॶ̙Ⴉ ᒅ͉ʮٰ̡΅ʘᒅٰᛆf ׵ಂʫ฿ೌ࣬ኽᒅٰᛆࠇྌબ̈eБԴא՟ऊ ΂Оᒅٰᛆf

DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS AND SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY OR ANY ASSOCIATED CORPORATION

At 31st December 2020, the interests and short positions of each Director and chief executive in the shares, underlying shares and debentures of the Company and its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance ("SFO")), as recorded in the register maintained by the Company under Section 352 of the SFO or as otherwise notified to the Company and The Stock Exchange of Hong Kong Limited (the "Stock Exchange") pursuant to the Model Code for Securities Transactions by Directors of Listed Companies (the "Model Code") contained in the Rules Governing the Listing of Securities on the Stock Exchange (the "Listing Rules") were as follows:

໨ԫʿ௰৷Б݁ɛࡰ׵͉ʮ̡אՉ΂О ޴ᑌجྠٰ΅e޴ᗫٰ΅ʿවՎʘᛆू ʿ૱ࡑ

׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚d͉ʮ̡΢໨ԫ ʿ௰৷Б݁ɛࡰ׵͉ʮ̡אՉ΂О޴ᗫجྠ€֛ ່ԈᗇՎʿಂ஬ૢԷ€˜ᗇՎಂ஬ૢԷ™ୋ XV ௅඲Σ͉ʮ̡͡జʘᛆूאʊ೮া׵࣬ኽᗇ Վಂ஬ૢԷୋ 352 ૢπໄʘΤ̅ʘٰ΅d޴ᗫ ٰ΅ʿවՎʘᛆूʿ૱ࡑdא࣬ኽ࠰ಥᑌΥʹ ׸הϞࠢʮ̡€˜ᑌʹה™ᗇՎɪ̹஝ۆ€˜ɪ̹ ஝ۆ™ʘɪ̹ʮ̡໨ԫආБᗇՎʹ׸ٙᅺ๟ς ۆ€˜ᅺ๟ςۆ™ʊΣ͉ʮ̡ʿᑌʹה͡జ٫ν ɨj

Ordinary shares of HK$0.10 each in the Company

Name of Directors

͉ʮ̡ӊٰࠦ࠽ 0.10 ಥʩʘ౷ஷٰ

Number of shares of the Company beneficially held ྼूܵϞʘ͉ʮٰ̡΅ᅰͦ

໨ԫ֑Τ

Personal interests ࡈɛᛆू

Corporate interests جྠᛆू

Family interests ࢕᙮ᛆू

Other interests

Չ˼ᛆू

Mr. HUI Sai Chung Mr. HUI Kwok Kwong Mr. HUI Yan Kuen

Mr. HUI Yan Lung Geoffrey Mr. HUI Man Wai

஢˰ᑋ΋͛ ஢਷Έ΋͛ ஢ɛᛆ΋͛ ஢ɛᎲ΋͛ ஢˖ਃ΋͛

Long Positions λࡑ Long Positions λࡑ

17,625,600 202,721,500(a)
19,850,400 198,803,500(b)

{ {

Long Positions λࡑ { { { (c)

Long Positions λࡑ { { { (d)Long Positions λࡑ

250,000 { { (e)

Ngai Hing Hong Company Limited
毅興行有限公司
DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS AND	໨ԫʿ௰৷Б݁ɛࡰ׵͉ʮ̡אՉ΂О
SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES	޴ᑌجྠٰ΅e޴ᗫٰ΅ʿවՎʘᛆू
AND DEBENTURES OF THE COMPANY OR ANY ASSOCIATED	ʿ૱ࡑ€ᚃ
CORPORATION (Continued)
Notes:	ڝൗj

(a) 196,721,500 of these shares are held by Good Benefit Limited ("Good Benefit"), a company in which Ever Win Limited ("Ever Win") holds a 45.1% interest (note (e)). In addition, 6,000,000 shares are held by Ever Win directly.
50,001 ordinary shares of one Canadian dollar each in Ever Win are held by Mr. HUI Sai Chung. Mr. HUI Sai Chung and his spouse further own 33,957 and 5 class A non-convertible redeemable preferred shares of no par value in Ever Win respectively.
(b) 196,721,500 of these shares are held by Good Benefit, a company in which Evergrow Company Limited ("Evergrow") holds a 45.1% interest (note (e)). In addition, 2,082,000 shares are held by Evergrow directly.
50,000 ordinary shares of one Canadian dollar each in Evergrow are held by Mr. HUI Kwok Kwong. Mr. HUI Kwok Kwong further owns 30,823 class A non-convertible redeemable preferred shares of no par value in Evergrow.
(c) 196,721,500 of these shares are held by Good Benefit, a company in which Ever Win holds a 45.1% interest (note (e)). In addition, 6,000,000 shares are held by Ever Win directly. 333 ordinary shares of one Canadian dollar each in Ever Win are held by Mr. HUI Yan Kuen.
- (a) ༈ഃٰ΅ʕʘ 196,721,500 ٰɗ͟ Good Benefit Limited€˜Good Benefit™ܵϞfEver Win Limited €˜Ever Win™ܵ Ϟ Good Benefit ϵʱʘ̬ɤʞ ᓃɓᛆू€ڝൗ (e)fϤ̮d6,000,000 ٰٰ΅͟
  Ever Win ٜટܵϞf
  Ever Win ӊٰࠦ࠽ 1 ̋ʩʘ౷ஷٰ΅ 50,001 ٰ
  ͟஢˰ᑋ΋͛ܵϞf஢˰ᑋ΋͛ʿՉৣਅ̤ʱ
  йኹϞ Ever Win A ॴೌࠦ࠽ʔ̙г౬̙ᛙΫᎴ
  ΋ٰ΅ 33,957 ٰʿ 5 ٰf
- (b) ༈ഃٰ΅ʕʘ 196,721,500 ٰɗ͟ Good Benefit ܵϞfEvergrow Company Limited€˜Evergrow™
  ܵϞ Good Benefit ϵʱʘ̬ɤʞᓃɓᛆू€ڝൗ
  (e) fϤ̮d 2,082,000 ٰٰ΅͟ Evergrow ٜટ
  ܵϞf
  Evergrow ӊٰࠦ࠽ 1 ̋ʩʘ౷ஷٰ΅ 50,000
  ٰ͟஢਷Έ΋͛ܵϞf஢਷Έ΋̤͛ኹϞ
  Evergrow A ॴೌࠦ࠽ʔ̙г౬̙ᛙΫᎴ΋ٰ΅
  30,823 ٰf
- (c) ༈ഃٰ΅ʕʘ 196,721,500 ٰɗ͟ Good Benefit ܵ Ϟf Ever Win ܵϞ Good Benefit ϵʱʘ ̬ɤʞᓃɓᛆू€ڝൗ (e) fϤ̮d 6,000,000 ٰٰ΅͟ Ever Win ٜટܵϞfEver Win ӊٰࠦ ࠽ 1 ̋ʩʘ౷ஷٰ΅ 333 ٰ͟஢ɛᛆ΋͛ܵϞf
(d) 196,721,500 of these shares are held by Good Benefit, a company in which Ever Win holds a 45.1% interest (note (e)). In addition, 6,000,000 shares are held by Ever Win directly. 333 ordinary shares of one Canadian dollar each in Ever Win are held by Mr. HUI Yan Lung Geoffrey.

(d) ༈ഃٰ΅ʕʘ 196,721,500 ٰɗ͟ Good Benefit ܵ Ϟf Ever Win ܵϞ Good Benefit ϵʱʘ ̬ɤʞᓃɓᛆू€ڝൗ (e) fϤ̮d 6,000,000 ٰٰ΅͟ Ever Win ٜટܵϞfEver Win ӊٰࠦ ࠽ 1 ̋ʩʘ౷ஷٰ΅ 333 ٰ͟஢ɛᎲ΋͛ܵϞf

Ngai Hing Hong Company Limited
毅興行有限公司
DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS AND	໨ԫʿ௰৷Б݁ɛࡰ׵͉ʮ̡אՉ΂О
SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES	޴ᑌجྠٰ΅e޴ᗫٰ΅ʿවՎʘᛆू
AND DEBENTURES OF THE COMPANY OR ANY ASSOCIATED	ʿ૱ࡑ€ᚃ
CORPORATION (Continued)
Notes: (Continued)	ڝൗj€ᚃ

(e)The beneficial interests of the Directors in the share capital of Good Benefit, which held 196,721,500 shares of the Company as at 31st December 2020 are as follows:

(e)

໨ԫί Good Benefi€t ׵ɚཧɚཧϋɤɚ˜ ɧɤɓ˚ܵϞ͉ʮ̡ 196,721,500 ٰٰ΅ٰ͉ ʘྼूᛆूνɨj

Number	Percentage
of shares	of holding
Name of Directors	໨ԫ֑Τ	ٰ΅ᅰͦ	ٰܵϵʱˢ
Mr. HUI Sai Chung	஢˰ᑋ΋͛	4,510	45.1%
Mr. HUI Kwok Kwong	஢਷Έ΋͛	4,510	45.1%
Mr. HUI Man Wai	஢˖ਃ΋͛	360	3.6%
Others	Չ˼	620	6.2%
10,000	100.0%

At 31st December 2020, the following Directors owned interests in non-voting deferred shares in Ngai Hing Hong Plastic Materials Limited, which are subject to an option granted to Ngai Hing (International) Company Limited to acquire the said non-voting deferred shares.

Name of Directors

໨ԫ֑Τ

׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚dɨΐ໨ԫ ኹϞᆇጳ෧ᇭࡡࣘϞࠢʮ̡ೌҳୃᛆ჈ַ ٰ΅ᛆूdϾ༈ʮ̡Ԩʊબʚ Ngai Hing

(International) Company Limited ̙ᒅ൯ɪࠑೌ ҳୃᛆ჈ַٰ΅ʘᒅٰᛆf

Mr. HUI Sai Chung Mr. HUI Kwok Kwong

஢˰ᑋ΋͛ ஢਷Έ΋͛

Number of non-voting deferred shares held

ܵϞೌҳୃᛆ჈ַٰ΅ᅰͦ

Personal interests ࡈɛᛆू

200,000 200,000

Notes:

(i) These shares are held by Ever Win.
(ii) These shares are held by Evergrow.

ڝൗj

(i) ༈ഃٰ΅͟ Ever Win ܵϞf
(ii) ༈ഃٰ΅͟ Evergrow ܵϞf

Other interests

Չ˼ᛆू

50,000 (i)

50,000 (ii)

DIRECTORS' AND CHIEF EXECUTIVES' INTERESTS AND SHORT POSITIONS IN THE SHARES, UNDERLYING SHARES AND DEBENTURES OF THE COMPANY OR ANY ASSOCIATED CORPORATION (Continued)

Save as disclosed above and other than certain nominee shares in the subsidiaries of the Company held by certain Directors of the Company in trust for the Group as at 31st December 2020, none of the Directors and chief executives have any beneficial or non-beneficial interests in the share capital of the Company and associated corporations (within the meaning of Part XV of the SFO) as recorded in the register required to be kept under Section 352 of the SFO or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code.

໨ԫʿ௰৷Б݁ɛࡰ׵͉ʮ̡אՉ΂О ޴ᑌجྠٰ΅e޴ᗫٰ΅ʿවՎʘᛆू ʿ૱ࡑ€ᚃ

ৰɪ˖המᚣʿ͉ʮ̡߰ʍ໨ԫ˸ڦৄ˙ό˾ ͉ණྠܵϞ͉ʮ̡߰ʍڝ᙮ʮ̡˾ଣɛٰ΅ ̮d׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚d࣬ኽᗇՎ ಂ஬ૢԷୋ 352 ૢ஝֛πໄʘΤ̅הা፽א࣬ ኽᅺ๟ςۆϾΣ͉ʮ̡ʿᑌʹהЪ̈ٙٝึd ΢໨ԫʿ௰৷Б݁ɛࡰ׵͉ʮ̡ʿ޴ᗫجྠ€Ո ϞᗇՎಂ஬ૢԷୋ XV ௅ٙ଄່ʘٰ͉ʕ฿ೌ ኹϞ΂О࣬ኽᗇՎಂ஬ૢԷ඲ʚמᚣʘྼूא ڢྼूᛆूf

Save as disclosed under the section headed by "Share Options" above,

ৰɪࠑ˜ᒅٰᛆ™ɓݬהΐ̮j

(a) at no time during the period was the Company, its holding company or any of its subsidiaries a party to any arrangements to enable the Directors or chief executives of the Company to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate; and
- (a) ׵͉ಂග΂Оࣛගʫd͉ʮ̡eՉછٰ ʮ̡אՉ΂Оڝ᙮ʮ̡Ԩೌਞၾࠈͭ΂ ОτરdߧԴ͉ʮ̡໨ԫא௰৷Б݁ɛ ࡰ̙ᔟᒅ൯͉ʮ̡א΂ОՉ˼جɛྠ᜗ ʘٰ΅אවՎϾᐏूiʿ
(b) none of the Directors, chief executives, their spouses or children under the age of 18 had been granted any right to subscribe for shares in or debentures of the Company, or exercised any such right.

(b) ΢໨ԫe௰৷Б݁ɛࡰeՉৣਅאɤɞ ๋˸ɨʘɿɾ฿ೌᐏબʚ̙Ⴉᒅ͉ʮ̡ ٰ΅אවՎʘᛆлdאʊБԴϤഃᛆлf

SUBSTANTIAL SHAREHOLDERS' INTERESTS AND SHORT POSITIONS IN THE SHARES AND UNDERLYING SHARES OF THE COMPANY

As at 31st December 2020, the register of substantial shareholders maintained under Section 336 of the SFO shows that the Company had not been notified of any substantial shareholders' interests and short positions, being 5% or more of the Company's issued share capital, other than those of the Directors and chief executives as disclosed above.

˴ࠅٰ؇׵͉ʮٰ̡΅ʿ޴ᗫٰ΅ʘᛆ ूʿ૱ࡑ

ৰɪ˖המᚣϞᗫ໨ԫʘᛆू̮d࣬ኽ͉ʮ̡ ܲᗇՎಂ஬ૢԷୋ 336 ૢϾπໄʘ˴ࠅٰ؇Τ ̅הᜑͪd͉ʮ̡฿ೌટᐏ΂Оɛɻ׵ɚཧɚ ཧϋɤɚ˜ɧɤɓ˚ኹϞ͉ʮ̡ʊ೯Бٰ͉ϵ ʱʘʞא˸ɪᛆूʿ૱ࡑʘஷٝf

COMPLIANCE WITH THE MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS

The Company has adopted the Model Code as set out in Appendix 10 to the Listing Rules as its own code of conduct regarding directors' securities transaction. The Company has made specific enquiry to all Directors and all Directors confirmed that they had complied with the required standard of dealings set out therein during the period.

፭ς໨ԫආБᗇՎʹ׸ʘᅺ๟ςۆ

͉ʮ̡ʊમॶɪ̹஝ۆڝ፽ 10 ה༱ʘᅺ๟ςۆ Ъމ໨ԫආБᗇՎʹ׸ʘᅺ๟ςۆf͉ʮ̡ʊ ΣהϞ໨ԫЪ̈त֛ݟ༔dϾΌ᜗໨ԫʊᆽႩ ־ഃ׵ಂʫѩϞ፭ς຅ʕהࠅӋʘ൯ርᅺ๟f

CORPORATE GOVERNANCE PRACTICE

The Company is committed to the establishment of good corporate governance practices and procedures which serve as an important element of risk management throughout the growth and expansion of the Company. The Company emphasises on maintaining and carrying out sound, solid and effective corporate governance principles and structures.

The Company has complied with all the applicable code provisions as set out in Corporate Governance Code and Corporate Governance Report to the Appendix 14 of the Listing Rules (the "CG Code") throughout the six months ended 31st December 2020, except for the deviation as mentioned below.

According to the code provision A.2.1 of the CG Code, the roles of chairman and chief executive should be separate and should not be performed by the same individual. Up to the date of this interim report, the Board has not appointed any individual to be the chief executive. The roles of the chief executive have been performed collectively by all the executive directors, including the chairman, of the Company. The Board considers that this arrangement allows contributions from all executive directors with different expertise and is beneficial to the continuity of the Company's policies and strategies. Going forward, the Board will periodically review the effectiveness of this arrangement and considers appointing an individual to chief executive when it thinks appropriate.

For the purpose of enhancing the risk management and internal control systems, the Company has engaged an external consultant to assist the Board and the audit committee of the Company (the "Audit Committee") in ongoing monitoring and in performing the internal audit functions for the Group. Deficiencies in the design and implementation of internal controls are identified and recommendations are proposed for improvement.

Significant internal control deficiencies are reported to the Audit Committee and the Board on a timely basis to ensure prompt remediation actions are taken.

Άุ၍ط੬஝ ͉ʮ̡ߧɢܔͭԄλΆุ၍ط੬஝ʿ೻ҏdί ᓒɽ͉ʮุ̡ٙਕʕd༈੬஝ʿ೻ҏމࠬᎈ၍ ଣʘࠠࠅʩ९f͉ʮ̡ഹࠠၪܵʿੂБᎴԄe ᖢ਄ʿϞࣖٙԄλΆุ၍ط੬஝ʿݖ࿴f ৰɨ˖הࠑٙ਋ᕎ̮d࿚Їɚཧɚཧϋɤɚ˜ ɧɤɓ˚˟ʬࡈ˜d͉ʮ̡ɓٜ፭ςɪ̹஝ۆ ڝ፽ 14Άุ၍طςۆ'ʿΆุ၍طజѓ'€˜ς ۆ™ה༱ΐʘהϞቇ͜ςۆૢ˖f ࣬ኽςۆૢ˖ୋ A.2.1 ૢd˴ࢩʿБ݁ᐼ൒ʘᔖ ঐᏐʱකdʔᏐ͟ɓɛΝࣛࡒ΂fٜЇ͉ʕಂ జѓ˚ಂd໨ԫึ֠͊։΂΂Оɛɻዄ΂Б݁ ᐼ൒fБ݁ᐼ൒ʘᔖபɗ͉͟ʮ̡הϞੂБ໨ ԫ€ܼ̍˴ࢩ΍Νዄ΂f໨ԫึႩމd༈τર ᜫ΢ЗኹϞʔΝਖ਼ุٙੂБ໨ԫ΍ΝӔഄd͵ ̙஫࿞ੂБ͉ʮ̡ʘ݁ഄʿഄଫd݂ୌΥ͉ණ ྠлूf࢝ૐ͊Ըd໨ԫึਗ਼֛ಂᏨী༈τર ʘϓࣖdʿϽᅇ׵ቇ຅ࣛࡉ։΂Б݁ᐼ൒f ఱ̋੶ࠬᎈ၍ଣʿʫ௅္છӻ୕d͉ʮ̡ʊ։ ໌̮ޢᚥਪࠋப՘п໨ԫึʿ͉ʮ̡ٙᄲࣨ։ ࡰึ€˜ᄲࣨ։ࡰึ™˸ܵᚃ္છʿੂБ͉ණྠ ʘʫ௅ᄲࣨ̌ঐdԨਗ਼೯ତʫ௅္છணࠇʿੂ Бʘॹ̰ʿ౤Զҷഛܔᙄfࠠɽʫ௅္છॹ̰ ਗ਼ቇࣛΣ໨ԫึʿᄲࣨ։ࡰිజ˸ᆽڭኋҞੂ Б዆ҷБਗf

CORPORATE GOVERNANCE PRACTICE (Continued)

The Board has reviewed and considered the Group's risk management and internal control systems were effective and adequate during the period. The risk management and internal control systems of the Group are designed to manage rather than eliminate the risk of failure to achieve business objectives, and can only provide reasonable and not absolute assurance against material misstatement or loss.

Άุ၍ط੬஝€ᚃ ͉ಂගʫ໨ԫึʊᏨী͉ණྠٙࠬᎈ၍ଣʿʫ ௅္છӻ୕ٙϞࣖ׌dԨႩމʊԑ੄fண͉ͭ ණྠٙࠬᎈ၍ଣʿʫ௅္છӻ୕ϙί၍ଣϾڢ ऊৰ͊ঐ༺ϓุਕͦᅺʘࠬᎈdԨ̥ΥଣϾڢ ഒ࿁ڭᗇ̙ԣᇍࠠɽ̰ྼ௓ࠑאฦ̰f

NOMINATION COMMITTEE

The Company has formulated written terms of reference for the nomination committee of the Company (the "Nomination Committee") in accordance with the requirements of the Stock Exchange. The Nomination Committee consists of all independent non-executive Directors, namely Mr. HO Wai Chi, Paul, Mr. CHING Yu Lung and Mr. YU Chi Kwong and an executive Director, Mr. HUI Sai Chung.

౤Τ։ࡰึ ͉ʮ̡࣬ኽᑌʹהʘ஝֛Ꮭ֛͉ʮ̡ٙ౤Τ։ ࡰึ€˜౤Τ։ࡰึ™ٙᔖᛆᇍఖf౤Τ։ࡰึ ͟Ό᜗ዹͭڢੂБ໨ԫ€Оਃқ΋͛e೻νᎲ ΋͛ʿЯқΈ΋͛ʿɓΤੂБ໨ԫ€஢˰ᑋ΋ ͛ଡ଼ϓf

The Nomination Committee is responsible for reviewing the structure, size and composition of the Board (including the skills, knowledge and experience) on a regular basis and make recommendations to the Board regarding any proposed changes; identifying individuals suitably qualified to become Board members and select or make recommendations to the Board on the selection of, individuals nominated for directorships; assessing the independence of independent non-executive Directors; and making recommendations to the Board on relevant matters relating to the appointment or re-appointment of Directors and succession planning for Directors. The Nomination Committee would review the Board's composition from time to time where Board diversity would be considered from a number of aspects, including but not limited to gender, age, cultural and education background, ethnicity, professional experience, skills, knowledge and length of services. The Nomination Committee meets at least once a year to assess the structure, size and composition of the Board.

౤Τ։ࡰึࠋப֛ಂᏨী໨ԫึٙݖ࿴e஝ᅼ ʿଡ଼Υ€ܼ̍Ҧஔeٝᗆʿ຾᜕dԨఱ΂О ܔᙄᜊһΣ໨ԫึ౤̈จԈiᗆйՈΥቇ༟ࣸ ϓމ໨ԫึϓࡰٙࡈɛʿఱᐏ౤Τϓމ໨ԫٙ ࡈɛЪ̈ጜ፯אΣ໨ԫึЪ̈፯኿ܔᙄi൙֛ ዹͭڢੂБ໨ԫٙዹͭ׌iʿఱϞᗫ໨ԫٙ։ ΂אΎ։΂ʿ໨ԫٙટ΂ࠇྌʘ޴ᗫԫධΣ໨ ԫึ౤Զܔᙄf౤Τ։ࡰึʔࣛᏨী໨ԫึʘ ଡ଼ϓd੽εࡈ˙ࠦϽᅇ໨ԫึϓࡰεʩʷd̍ ܼШʔࠢ׵׌йeϋᙧe˖ʷʿ઺ԃߠ౻e၇ ૄeਖ਼ุ຾᜕eҦঐeٝᗆ˸ʿ؂ਕϋಂf౤ Τ։ࡰึӊϋ௰ˇఱ໨ԫึٙݖ࿴e஝ᅼʿଡ଼ ΥᑘБɓϣึᙄf

AUDIT COMMITTEE

The Company has formulated written terms of reference for the Audit Committee in accordance with the requirements of the Stock Exchange. The Audit Committee consists of all independent non-executive Directors, namely Mr. HO Wai Chi, Paul, Mr. CHING Yu Lung and Mr. YU Chi Kwong.

ᄲࣨ։ࡰึ ͉ʮ̡࣬ኽᑌʹהʘ஝֛Ꮭ֛ᄲࣨ։ࡰึʘᔖ ᛆᇍఖfᄲࣨ։ࡰึ͟Ό᜗ዹͭڢੂБ໨ԫ€О ਃқ΋͛e೻νᎲ΋͛ʿЯқΈ΋͛ଡ଼ϓf

The principal duties of the Audit Committee are to ensure the objectivity and credibility of financial reporting and internal control procedures as well as to maintain an appropriate relationship with the external auditor of the Company. The terms of reference of the Audit Committee are aligned with the recommendations set out in "A Guide for Effective Audit Committees" issued by the Hong Kong Institute of Certified Public Accountants and Listing Rules.

ᄲࣨ։ࡰึ˴ࠅᔖபމᆽڭৌਕజѓʿʫ௅္ છ೻ҏʘ܄ᝈ׌ʿ̙ڦܓd˸ʿၾ͉ʮ̡̮໌ ٙࣨᅰࢪڭܵԄλᗫڷfᄲࣨ։ࡰึٙᔖᛆᇍ ఖၾ࠰ಥึࠇࢪʮึ཯̺ٙᄲࣨ։ࡰึϞࣖ༶ Ъܸˏ'ʿɪ̹஝ۆʫ༱ٙܔᙄ޴ୌf

The Audit Committee has reviewed with management the accounting principles and practices adopted by the Group and discussed internal controls and financial reporting matters including a review of the unaudited condensed consolidated interim financial information for the six months ended 31st December 2020 with the Directors.

ᄲࣨ։ࡰึʊ຾ၾ၍ଣᄴᄲቡ͉ණྠהમॶʘ ึࠇࡡۆʿ˙جdԨၾ໨ԫীሞϞᗫʫ௅္છ ʿৌਕිజԫ֝dܼ̍ᄲቡ࿚Їɚཧɚཧϋ ɤɚ˜ɧɤɓ˚˟ʬࡈ˜ʘ͊຾ᄲࣨᔊ׼ၝΥ ʕಂৌਕ༟ࣘf

REMUNERATION COMMITTEE

The Company has formulated written terms of reference for the remuneration committee of the Company (the "Remuneration Committee") in accordance with the requirements of the Stock Exchange. The Remuneration Committee consists of three independent non-executive Directors, namely Mr. HO Wai Chi, Paul, Mr. CHING Yu Lung and Mr. YU Chi Kwong and an executive Director, Mr. HUI Sai Chung.

The Remuneration Committee is responsible for ensuring formal and transparent procedures for developing remuneration policies and making recommendations to the Board on the remuneration packages of the individual executive Director and senior management. This includes benefits in kind, pension rights and compensation payments, including any compensation payable for loss or termination of their office or appointment. It takes into consideration on factors such as salaries paid by comparable companies, time commitment and responsibilities of Directors and senior management. The Remuneration Committee meets at least once a year to assess the performance and review the annual salaries and bonus of the senior executives.

ᑚཇ։ࡰึ ͉ʮ̡࣬ኽᑌʹהʘ஝֛Ꮭ֛͉ʮ̡ٙᑚཇ։ ࡰึ€˜ᑚཇ։ࡰึ™ʘᔖᛆᇍఖfᑚཇ։ࡰึ ͟ɧЗዹͭڢੂБ໨ԫ€Оਃқ΋͛e೻νᎲ ΋͛ʿЯқΈ΋͛ʿɓЗੂБ໨ԫ€஢˰ᑋ΋ ͛ଡ଼ϓf ᑚཇ։ࡰึࠋபᆽڭ͍όʿՈீ׼ܓʘᑚཇ݁ ഄՓࠈ೻ҏdʿΣ໨ԫึఱࡈйੂБ໨ԫʿ৷ ॴ၍ଣᄴʘᑚཇଡ଼Υ౤̈ܔᙄdவܼ̍ྼيл ूeৗ;ږᛆлʿ໾Ꮅ€຅ʕܼ̍Ϊ̰̘אʕ˟ Չᔖਕא։΂ˏߧʘ΂ОᏐ˹໾Ꮅfᑚཇ։ࡰ ึϽᅇʘΪ९ܼ̙̍ˢ༰ʮ̡ʘᑚږ˥̻e΢ ໨ԫʿ৷ॴ၍ଣɛࡰהҳɝʘࣛගʿᔖபഃf ᑚཇ։ࡰึӊϋ௰ˇᑘБɓϣึᙄ˸൙Пڌତ ʿᄲቡ৷ॴ၍ଣɛࡰӊϋʘᑚཇʿᆤږf

CORPORATE GOVERNANCE COMMITTEE

The Company has formulated written terms of reference for the corporate governance committee of the Company (the "Corporate Governance Committee") in accordance with the CG Code. The Corporate Governance Committee consists of all independent non-executive Directors, namely Mr. HO Wai Chi, Paul, Mr. CHING Yu Lung and Mr. YU Chi Kwong.

Άุ၍ط։ࡰึ ͉ʮ̡࣬ኽςۆʘ஝֛Ꮭ֛͉ʮ̡ٙΆุ၍ط ։ࡰึ€˜Άุ၍ط։ࡰึ™ٙᔖᛆᇍఖfΆุ ၍ط։ࡰึ͟Ό᜗ዹͭڢੂБ໨ԫ€Оਃқ΋ ͛e೻νᎲ΋͛ʿЯқΈ΋͛ଡ଼ϓf

The Corporate Governance Committee is responsible for developing and reviewing the policies and practices on corporate governance of the Group and making recommendations to the Board; reviewing and monitoring the training and continuous professional development of Directors and senior management; reviewing and monitoring the Group's policies and practices on compliance with legal and regulatory requirements; developing, reviewing and monitoring the code of conduct and compliance manual (if any) applicable to employees and Directors; and reviewing the Group's compliance with the CG Code and disclosure in the Corporate Governance Report of the Company. The Corporate Governance Committee meets at least once a year to review the corporate governance functions.

Άุ၍ط։ࡰึࠋப೯࢝ʿᏨী͉ණྠΆุ၍ طٙ݁ഄʿྼ݄ԨΣ໨ԫึ౤̈จԈiᏨীʿ ္࿀໨ԫʿ৷ॴ၍ଣɛࡰٙ੃৅ʿܵᚃਖ਼ุආ ࡌiᏨীʿ္࿀͉ණྠఱجܛʿ஝ۆٙΥ஝׌ ࠅӋٙ݁ഄʿྼ݄i೯࢝eᏨীʿ္࿀ቇ͜׵ ࡰʈʿ໨ԫٙБމ๟ۆʿΥ஝˓̅€νϞiʿ Ꮸী͉ණྠఱςۆٙΥ஝׌ʿ͉ʮ̡׵Άุ၍ طజѓٙמᚣfΆุ၍ط։ࡰึӊϋ௰ˇఱΆ ุ၍ط̌ঐᑘБɓϣึᙄf

On behalf of the Board HUI Sai Chung Chairman

˾ڌ໨ԫึ ˴ࢩ ஢˰ᑋ

Hong Kong,

25th February 2021

࠰ಥd ɚཧɚɓϋɚ˜ɚɤʞ˚

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NHH - Ngai Hing Hong Company Ltd. published this content on 15 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2021 08:52:03 UTC.

Delayed Hong Kong S.E. Other stock markets 01:38:22 10/05/2024 pm IST			5-day change	1st Jan Change
0.38 ^HKD	0.00%		-2.56%	+8.57%

14/03	Ngai Hing Hong Trims Fiscal H1 Loss By 46%	MT
28/02	Ngai Hing Hong Company Limited Reports Earnings Results for the Half Year Ended December 31, 2023	CI

Ngai Hing Hong Trims Fiscal H1 Loss By 46%	14/03	MT
Ngai Hing Hong Company Limited Reports Earnings Results for the Half Year Ended December 31, 2023	28/02	CI
Ngai Hing Hong Company Limited Reports Earnings Results for the Full Year Ended June 30, 2023	28/23/28	CI
Ngai Hing Hong to Swing to Loss in Fiscal Year 2023	20/23/20	MT
Ngai Hing Hong Company Limited Provides Group Earnings Guidance for the Year Ended 30 June 2023	20/23/20	CI
Ngai Hing Hong Swings to Loss in July-December 2022	28/23/28	MT
Ngai Hing Hong Company Limited Reports Earnings Results for the Half Year Ended December 31, 2022	27/23/27	CI
Ngai Hing Hong Warns of Loss in July-December 2022; Shares Rise 3%	16/23/16	MT
Ngai Hing Hong Company Limited Provides Earnings Guidance for the Six Months Ended 31St December 2022	15/23/15	CI
Ngai Hing Hong Company Limited Proposes Ordinary Final Cash Dividend for the Financial Year Ended June 30, 2022, Payable on December 09, 2022	29/22/29	CI
Ngai Hing Hong Company Limited Reports Earnings Results for the Full Year Ended June 30, 2022	29/22/29	CI
Ngai Hing Hong Warns of Lower FY22 Profit	21/22/21	MT
Ngai Hing Hong Company Limited Provides Earnings Guidance for the Year Ended 30 June 2022	21/22/21	CI
Ngai Hing Hong's Fiscal H1 Earnings Fall on Higher Expenses	25/22/25	MT
Ngai Hing Hong Company Limited Announces Ordinary Interim Dividend for the Six Months Ended December 31, 2021, Payable on 11 April 2022	24/22/24	CI
Ngai Hing Hong Company Limited Reports Earnings Results for the Half Year Ended December 31, 2021	24/22/24	CI
Ngai Hing Hong Company Limited Announces Special Final Dividend for the Financial Year Ended June 30, 2021, Payable on December 10, 2021	28/21/28	CI
Ngai Hing Hong Company Limited Reports Earnings Results for the Full Year Ended June 30, 2021	28/21/28	CI
Ngai Hing Hong : Projects Profit Turnaround for FY21	20/21/20	MT
Ngai Hing Hong Company Limited Provides Unaudited Earnings Guidance for the Year Ended June 30, 2021	17/21/17	CI
Ngai Hing Hong : Fiscal First Half Profit Rallies	26/21/26	MT
Ngai Hing Hong Company Limited Declares Interim Dividend for the Year 2021, Payable on or Before April 12, 2021	25/21/25	CI
Ngai Hing Hong Company Limited Announces Special Dividend for the Six Months Ended December 31, 2020, Payable on or Before April 12, 2021	25/21/25	CI
Ngai Hing Hong Company Limited Reports Earnings Results for the Half Year Ended December 31, 2020	25/21/25	CI
Ngai Hing Hong : Expects Higher Net Profit of About $5 Million in July-December 2020	11/21/11	MT

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