天长集团2023年中期报告

CONTENTS 2Corporate Information 411171819212324Management Discussion and AnalysisOther InformationCondensed Consolidated Income StatementCondensed Consolidated Statement of Comprehensive IncomeCondensed Consolidated Statement of Financial PositionCondensed Consolidated Statement of Changes in EquityCondensed Consolidated Statement of Cash FlowsNotes to the Condensed Consolidated Financial Statements CORPORATE INFORMATION BOARD OF DIRECTORS Executive Directors Mr. Chan Tsan Lam(Chairman)Ms. Poon Po Han LisaMs. Chan Yin Yan Independent Non-Executive Directors Mr. Ng Chi WaiMr. Hung Chun LeungMr. Chan Bing Kai COMPANY SECRETARY Ms. Poon Po Han Lisa AUTHORISED REPRESENTATIVES Mr. Chan Tsan LamMs. Poon Po Han Lisa AUDIT COMMITTEE Mr. Ng Chi Wai(Chairman)Mr. Hung Chun LeungMr. Chan Bing Kai REMUNERATION COMMITTEE Mr. Chan Bing Kai(Chairman)Mr. Chan Tsan LamMr. Ng Chi Wai NOMINATION COMMITTEE Mr. Chan Tsan Lam(Chairman)Mr. Hung Chun LeungMr. Ng Chi Wai REGISTERED OFFICE Cricket SquareHutchins DriveP.O. Box 2681Grand Cayman KY1-1111Cayman Islands Cricket SquareHutchins DriveP.O. Box 2681Grand Cayman KY1-1111Cayman Islands www.hktcgroup.com WEBSITE OF THE COMPANY www.hktcgroup.com PRINCIPAL PLACE OF BUSINESS IN THE PEOPLE’SREPUBLIC OF CHINA (“PRC”) 2 2 XingDe East RoadDongjiang High New TechnologyIndustrial Park, Zhongkai Hi-Tech DistrictHuizhou City, Guangdong ProvinceChina HEADQUARTERS AND PRINCIPAL PLACE OF BUSINESS INHONG KONG 55B136 Workshop Unit 613th Floor, Block BHoi Luen Industrial Centre55 Hoi Yuen RoadKwun TongHong Kong HONG KONG SHARE REGISTRAR AND TRANSFER OFFICE 1617 Tricor Investor Services Limited17/F, Far East Finance Centre16 Harcourt RoadHong Kong CAYMAN ISLANDS PRINCIPAL SHARE REGISTRAR ANDTRANSFER OFFICE Conyers Trust Company (Cayman) LimitedCricket SquareHutchins DriveP.O. Box 2681Grand Cayman KY1-1111Cayman Islands Conyers Trust Company (Cayman) LimitedCricket SquareHutchins DriveP.O. Box 2681Grand Cayman KY1-1111Cayman Islands AUDITOR 1842 Mazars CPA LimitedCertified Public AccountantsRegistered Public Interest Entity Auditor42nd Floor, Central Plaza18 Harbour RoadWanchai, Hong Kong LEGAL ADVISER AS TO HONG KONG LAWS •896610-611 Adrian Lau & Yim LawyersUnits 610-611, 6/F, Tower 2,Lippo Centre, 89 Queensway,Admiralty, Hong Kong PRINCIPAL BANKERS Bank of China (Hong Kong) LimitedThe Hongkong and Shanghai Banking Corporation LimitedDah Sing Bank LimitedBank of Communications Co., Ltd. STOCK CODE 2182 2182 MANAGEMENT DISCUSSION AND ANALYSIS BUSINESS REVIEW CAREWE The Group operates its business through three segments, namelyintegrated plastic solutions segment, electronic cigarette (the“e-cigarettes”) products segment and medical consumable productssegment. The integrated plastic solutions segment engages in moulddesign and fabrication services as well as plastic component design andmanufacturing services. The e-cigarettes products segment engagesin the manufacturing and sales of e-cigarettes products. The Group’smedical consumable products segment engages in the manufacturingand sales of disposable face masks products under our own brand nameof “CAREWE”. The Group distributes our products within the domesticmarket and to overseas markets, including Europe, Asia and the UnitedStates (the “U.S.”). 2023202231420236142023630 During the first half of 2023, there were a series of challenges affectingthe macroeconomy and consumer confidence, including the escalation ofRussia-Ukraine war, the continuing of high inflation rate for necessities,the trend of rising interest rates and the fall of certain banks in the U.S.and Europe. In addition, as disclosed on the announcement dated 14March 2022 and 14 June 2023, the exclusivity term between the majorcustomer of e-cigarette products was removed (“Exclusivity”). Therefore,the number of sales orders for e-cigarettes products was affected. TheGroup recorded a decrease in both revenue and profit after tax duringthe six months ended 30 June 2023. 2023630400.929.8%2022630571.480.02022630119.320.0%202263020.9% During the six months ended 30 June 2023, the Group’s total revenueamounted to approximately HK$400.9 million, representing a decreaseof approximately 29.8% compared to the same period last year(30June 2022: HK$571.4 million). The Group recorded a gross profit ofapproximately HK$80.0 million(30 June 2022: HK$119.3 million)with agross profit margin of approximately 20.0%(30 June 2022: 20.9%). 202363020.6202263048.63.3320226307.84 The Group recorded a profit for the six months ended 30 June 2023attributable to equity holders of the Company of approximately HK$20.6million(30 June 2022: HK$48.6 million). Basic earnings per shareattributable to equity holders of the Company were approximately 3.33HK cents(30 June 2022: 7.84 HK cents). Integrated Plastic Solutions (i)(ii) Revenue from the integrated plastic solutions business division wasmainly derived from (i) the design and fabrication of plastic inject