Lam Soon Hong Kong : 2020/21 Interim Report

2020/21

The Board of Directors (the "Board") of Lam Soon (Hong Kong) Limited (the "Company") is pleased to present the unaudited consolidated interim results of the Company and its subsidiaries (collectively the "Group") for the six months ended 31 December 2020.

یන€࠰ಥϞࠢʮ̡€˜͉ʮ̡™໨ԫึ€˜໨ԫ ึ™್ؚ౤я͉ʮ̡ʿՉڝ᙮ʮ̡€Υ၈˜͉ණ ྠ™࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜ ʘ͊຾ᄲࣨၝΥʕಂุᐶf

OVERVIEW

฿ࠅ

In the six months ended 31 December 2020, despite the pressing challenges posed by the persistent COVID-19 pandemic and geopolitical tensions that intensified macroeconomic volatility, the Group had successfully achieved a revenue growth of 7% and a 27% increase in net profit over the same corresponding period last year.

࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜ಂ ගdኋ၍2019ڿًषݭष€˜COVID-19™ܵᚃ ٙޥઋ੭Ըəᘌࢡٙܿ኷˸ʿၡੵٙήᇝ݁ط ҅ැ˿҃ᝈ຾᏶ٙਗᐗ̋ᄌdШ͉ණྠʥϓ̌ ༺Ց7%ٙϗɝᄣڗdॱл༰̘ϋΝಂᄣڗə 27%f

The Group's agility enabled it to effectively adapt to the new normal, as it continued to focus on executing its key strategies - enhancing product and channel mix, driving new products, increasing distribution while judiciously optimising advertising & promotion spending and operating costs. Sales momentum was re-gained. Rising costs of material due to a significant increase in edible oils prices and higher material cost for Home Care products were mitigated by favourable bran and wheat prices, resulting in the overall Group profit margin improving by 1 percentage point.

͟׵͉ණྠᘱᚃਖ਼ء׵ੂБՉ˴ࠅഄଫdу ᄣ੶ପۜʿಬ༸ଡ଼Υeක೯อପۜʿᄣ̋ʱ ቖdΝࣛᄲฐήᎴʷᄿѓʿ܁ෂ˕̈˸ʿ຾ᐄ ϓ͉dΪϾኯᔟՉᜳݺ׌੻˸ϞࣖήቇᏐอ੬ ࿒dԨࠠܽቖਯᄣڗැ᎘fϞлٙ௥ኅʿʃ௥ ᄆࣸᇠ༆ə͟׵࠮͜ذᄆࣸɽషɪပ˸ʿ࢕֢ ᚐଣପۜٙҿࣘϓ͉ᄣ̋הኬߧٙҿࣘϓ͉ɪ ပd੽ϾԴ͉ණྠٙ዆᜗лᆗଟ౤৷ə1ࡈϵ ʱᓃf

The Group remains committed to strengthen its growth fundamentals. Our specialty fats facility in Jintan, China commenced construction work in September 2020. However, due to the COVID-19 pandemic and weather disruptions, the project encountered a slight delay and is currently expected to be operational by the end of FY2020/21.

͉ණྠʥߧɢ׵̋੶ՉᄣڗਿᓾfҢࡁίʕ ਷ږእٙत၇ذইᅀ׵ɚཧɚཧϋɘ˜ක֐ ܔிʈ೻f್Ͼd༈ධͦΪCOVID-19ޥઋʿ ెΕ˂ंϾଫމַႬdͦۃཫࠇਗ਼׵ɚཧɚ ཧŊɚɓৌ݁ϋܓഐҼۃҳɝ༶Ъf

SUMMARY OF FINANCIAL RESULTS

ৌਕุᐶ฿ࠅ

The Group's revenue growth of 7% was supported by the impact of a stronger RMB and higher bran selling prices. Gross profit margin improved by 1 percentage point to 24% despite the sharp increase in edible oil cost, countered by favourable bran prices, as well as efforts to improve net sales pricing with lower discounts and better product mix. As a result of the revenue growth, improved profit margin along with tightened operating costs and government subsidies, the net profit attributable to shareholders during this period increased healthily by 27% to HK$238 million.

͉ණྠٙϗɝᄣڗ7%dϤɗաՑɛ͏࿆ʺ࠽ ̋ɪ௥ኅਯᄆɪပٙᅂᚤה˕ܵfኋ၍࠮͜ ذϓ͉ɽషɪʺdШлλٙ௥ኅᄆࣸ˸ʿߧɢ ౤৷ଋቖਯᄆࣸeಯˇұϔԨҷഛପۜଡ଼Υd ˸ߧˣлଟʥ౤৷1ࡈϵʱᓃЇ24%f͟׵ϗ ɝᄣڗeлᆗଟ౤৷d̋ɪ຾ᐄϓ͉ϗၡʿ݁ ִ໾൨Ꮝпɨdಂʫٰ؇ᏐЦॱлᖢ਄ήᄣ̋ 27%Їಥ࿆238,000,000ʩf

As at 31 December 2020, the Group's cash balance increased by 7% to HK$1,631 million. To diversify its cash holdings into other quality liquid assets, the Group invested HK$29 million in fixed income government bonds in Mainland China which gave higher returns. With a strong cash position, the Group is well positioned to make capital investments, acquisitions and/or enter into joint ventures to strengthen its supply chain and to support geographic and business expansions, should good opportunities arise.

׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚d͉ණྠٙତږ ഐቱᄣ̋7%Їಥ࿆1,631,000,000ʩfމԴՉ ܵϞତږʱ౳ЇՉ˼Ꮄሯݴਗ༟ପd͉ණྠί ʕ਷ɽ௔ҳ༟ಥ࿆29,000,000ʩ֛ٙࢹִ݁ව Վd༈ഃවՎ੭Ըəһ৷ٙΫజfኯᔟ੶਄ٙ ତږًرd͉ණྠϞঐɢቇࣛආБ༟͉ҳ༟e ϗᒅʿŊאϓͭΥᐄΆุd˸̋੶ՉԶᏐᗡԨ ˕ܵήਜʿุਕᓒੵf

DIVIDENDS

ٰࢹ

The Board had declared an interim dividend of HK$0.15 per share totalling approximately HK$37 million for the six months ended 31 December 2020 (six months ended 31 December 2019: HK$0.14 per share totalling approximately HK$34 million), which will be payable on Tuesday, 23 March 2021 to the shareholders whose names appear on the register of members of the Company on Wednesday, 10 March 2021.

໨ԫึ܁ݼ࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚ ˟ʬࡈ˜ʘʕಂٰࢹӊٰಥ࿆ 0.15 ʩdΥ΍ ߒಥ࿆37,000,000ʩ€࿚Їɚཧɓɘϋɤɚ˜ ɧɤɓ˚˟ʬࡈ˜jӊٰಥ࿆0.14ʩdΥ΍ߒ ಥ࿆34,000,000ʩfʕಂٰࢹਗ਼׵ɚཧɚɓ ϋɧ˜ɚɤɧ˚݋ಂɚ˕˹ʚ׵ɚཧɚɓϋɧ ˜ɤ˚݋ಂɧΤΐ͉ʮٰ̡؇Τ̅ʘٰ؇f

BUSINESS REVIEW

ุਕΫᚥ

Food Segment

࠮ۜʱ௅

Food segment's revenue increased by 6% to HK$2,626 million and its operating profit increased by 27% to HK$274 million. This growth was driven by the Group's focused efforts in selective growing segments and to improve product mix, over and above the contribution of favourable bran prices and RMB appreciation.

࠮ۜʱ௅ϗɝᄣ̋ 6% Їಥ࿆ 2,626,000,000 ʩdʿՉ຾ᐄ๐лᄣ̋ 27% Їಥ࿆ 274,000,000ʩfᄣڗٙਗɢԸІ׵͉ණྠਖ਼ ء׵त፯ٙᄣڗʱ௅ቖਯ˸ʿҷഛପۜଡ଼Υd лλٙ௥ኅᄆࣸʿɛ͏࿆ʺ࠽ה੭ਗf

ุਕΫᚥ€ᚃ

Food Segment (continued)

࠮ۜʱ௅€ᚃ

Our Flour business continues to execute its long-term strategic plans to transform itself from an ingredient supplier to a solution provider against the backdrop of changing consumer behaviours and channel dynamics under the "new norm" resulting from the COVID-19 pandemic. The domestic market environment remains challenging, amid the slow-down in catering businesses caused by strict social distancing measures and weakened household income. The baking market saw a slow pick-up in the second half of 2020 but was still far from a full recovery. During this period, we launched the premium Golden Statue Japanese and Golden Statue French Flours and continued to drive sales of our signature Royal Sakura. Increased interactive online communication with customers via live streaming and WeChat in response to the implementation of movement controls and travel restrictions enabled us to continue with our commitment to support customer demands, and promote loyalty and partnerships.

Ңࡁٙᙢ४ุਕᘱᚃྼ݄Չڗಂഄଫࠇྌdί COVID-19ޥઋପ͛ٙ˜อ੬࿒™ኬߧऊ൬٫Б މʿಬ༸ਗ࿒ʔᓙᜊʷٙߠ౻ɨd੽ࡡࣘԶᏐ ਠᔷۨމ༆Ӕ˙ࣩʘԶᏐਠf͟׵ᘌࣸٙڭܵ ٟʹ൷ᕎણ݄˸ʿ࢕ࢬϗɝɨࠥኬߧ᎛භุਕ ׳ᇠd਷ʫ̹ఙᐑྤʥ್̂တܿ኷f׵ɚཧɚ ཧϋɨ̒ϋञೈ̹ఙ஼ӉҷഛdШ൷ᕎҁΌూ ೤֠ԊʘཀϘf׵͉ಂගdҢࡁપ̈௟ॴ˜ږ ྅೐™˚͉ʿ˜ږ྅೐™ج਷ᙢ४dԨᘱᚃપਗ Ңࡁם೐˜ᙶެ™ᙢ४ٙቖਯfҢࡁΪᏐ຅҅ੂ Бݴਗ၍છʿ̈БࠢՓણ݄Ͼᄣ̋ீཀٜᅧʿ ฆڦၾ܄˒ආБίᇞʝਗʹݴdவԴҢࡁঐ੄ ᘱᚃᄵБ˕ܵ܄˒ცӋٙוፕdԨڮආ׀༐ܓ ʿྫМᗫڷf

Our Edible Oil business faced challenges of escalating material cost and severe pressure on price. To mitigate the impact of cost increase, Knife traded up to a new premium offer and had a major brand uplift. Our Knife TV advertisement plus 360-degree campaign which kicked off in December 2020 differentiated our product by focusing on the "Rich in aroma yet not greasy" proposition and leveraging on TV celebrity endorsements. This had positioned us to capture the crucial Chinese New Year season momentum as the springboard to the next phase of our growth.

Ңࡁٙ࠮͜ذุਕࠦᑗҿࣘϓ͉ʔᓙɪပʿᄆ ࣸᏀɢ̶ٙɽܿ኷fމಯჀϓ͉ᄣ̋ٙᅂᚤd ˜ɠ☯™౤ʺอ৷၌ӻΐdԨආБəࠠɽۜ೐ʺ ॴfҢࡁ׵ɚཧɚཧϋɤɚ˜ৎආБ˜ɠ☯™ཥ ൖᄿѓৣ˸Ό˙З܁ෂݺਗdஷཀ߉̈˜ࠅ࠰ ʔࠅጰ™ٙርᓃdԨл͜ཥൖΤɛ܁ෂԴҢࡁ ٙପۜһމ߉̈fҢࡁᔟϤҴИ݆ືٙ˴ࠅ֙ ື׌ැ᎘dϓމҢࡁɨɓචݬᄣڗٙ༪ؐf

The Group also began distribution of Manuka Health honey products in China. In this initial phase, focus was on the setting up of a distribution network particularly on an e-commerce platform and the development a premium brand positioning.

͉ණྠ͵ක֐ίʕ਷ʱቖ௥ጅ̔਄ੰ໶႓ପ ۜfίϤڋ֐චݬdҢࡁਖ਼ء׵ܔͭʱቖၣഖ €ˈՉ݊ཥɿਠਕ̨̻˸ʿ೯࢝Ꮄሯۜ೐֛ Зf

ุਕΫᚥ€ᚃ

Home Care Segment

࢕֢ᚐଣʱ௅

Home Care segment's revenue increased by 14% to HK$425 million with a 25% increase in operating profit to HK$51 million.

࢕֢ᚐଣʱ௅ϗɝᄣ̋ 14% Їಥ࿆ 425,000,000ʩdϾ຾ᐄ๐лᄣ̋25%Їಥ࿆ 51,000,000ʩf

Our Home Care business experienced a healthy growth, fueled by the increased hygiene awareness to combat the spread of COVID-19 as well as the economic recovery in China. Riding on heightened demand for cleaning products, we drove sales growth in laundry capsules and launched new fragrances in our dishwashing products, while strengthening our distribution channels to focus on e-commerce and modern trade. At the same time, we embarked on the modernisation of our AXE brand image through a cross-over cooperation with B.Duck.

Ңࡁٙ࢕֢ᚐଣุਕ՟੻ᖢ਄ٙᄣڗdϞ፠׵ މ༿ՓCOVID-19ᓒ౳dɛࡁٙሊ͛จᗆϞה ౤ʺ˸ʿʕ਷຾᏶ూ೤fኯᔟ࿁૶ᆎۜٙ͜ც ӋᄣڗdҢࡁપਗəݹВमٙቖਯᄣڗdԨމ ມဿݹᆎၚପۜપ̈อ࠰բdΝࣛ̋੶əҢࡁ ٙʱቖಬ༸˸ਖ਼ء׵ཥɿਠਕʿତ˾൱׸fΝ ࣛdஷཀၾB.Duckٙ༨ޢΥЪdҢࡁഹ˓ආ Бə˜״᎘೐™ۜ೐Җ൥ٙତ˾ʷf

OUTLOOK

࢝ૐ

Looking ahead, the economic outlook both globally and domestically remains clouded with uncertainty and volatility. The pressure of the lingering COVID-19 pandemic on the overall economy remains and continues to change the dynamics in consumer behaviour, business segments and channels. However, at the time of this interim report, there appears to be light at the end of this tunnel with encouraging news of vaccines and of many countries having begun rolling out vaccinations in stages. Nevertheless, the on-going upsurge of edible oil prices continues to pose uncertainty and will be closely monitored. The Group will continue to persevere through this unprecedented turmoil with agility, vigilance and discipline. We had adapted and continued to strengthen our fundamentals. As such while we remain cautious, we are also optimistic and well positioned to ride on any recovery momentum swiftly and decisively.

࢝ૐ͊ԸdΌଢʿ਷ʫٙ຾᏶ۃ౻ʥ್̂တʔ ᆽ֛׌ʿਗᐗfCOVID-19ޥઋܵᚃ࿁዆ࡈ຾ ᏶ٙᏀɢʥ್πίdԨᘱᚃҷᜊऊ൬٫Бމe ุਕʱ௅ʿಬ༸ٙਗ࿒೯࢝f್Ͼd׵͉ʕ ಂజѓʘࣛdவᎆ༸း᎘Ч˷̈ତəᏣΈdԷ ν˿ɛོႀٙޥߴอၲdԨ˲஢ε਷࢕ʊක֐ ʱචݬટ၇ޥߴfኋ၍νϤd࠮͜ذᄆࣸܵᚃ ৷ပᘱᚃ੭Ըʔᆽ֛׌dҢࡁਗ਼੗ʲवจϞᗫ ઋر೯࢝f͉ණྠਗ਼ᘱᚃࣛՍڭܵᙆઑʿᜳݺ ׌dԨᘌςߏܛd਺ܵʔ኶࣎ཀவۃה͊Ϟٙ ਗᐗfҢࡁʊቇᏐԨᘱᚃቩոҢࡁٙਿᓾfΪ ϤdҢࡁڭܵᄲฐ࿒ܓٙΝࣛd͵મ՟ᆀᝈٙ ࿒ܓd˸ʿҢࡁϞঐɢԘ஺Ͼ؈ᓙήҪ౥΂О ూ೤ැ᎘f

FINANCIAL REVIEW

ৌਕΫᚥ

Liquidity and Financial Resources

ݴਗ༟ږʿৌ݁༟๕

At 31 December 2020, the Group had a cash balance of HK$1,631 million (30 June 2020: HK$1,530 million). This was mainly attributable to the net cash generated from operating activities. About 72% of the balance was denominated in Renminbi, 23% in Hong Kong dollars and 5% in United States dollars. In addition, the Group invested HK$29 million (30 June 2020: Nil) in fixed income government bond in Mainland China as at 31 December 2020.

׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚d͉ණྠତږഐ ቱމಥ࿆ 1,631,000,000 ʩ€ɚཧɚཧϋʬ˜ ɧɤ˚jಥ࿆ 1,530,000,000 ʩfவ˴ࠅ݊ ա౉׵຾ᐄݺਗה੻ତږଋᕘf຅ʕߒ 72% ٙ༟ږ݊ɛ͏࿆d 23% ݊ಥ࿆˸ʿ 5% ݊ߕ ʩfϤ̮d׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚d͉ ණྠίʕ਷ɽ௔ҳ༟֛ٙࢹִ݁වՎމಥ࿆ 29,000,000ʩ€ɚཧɚཧϋʬ˜ɧɤ˚jೌf

Banking facilities available to Group companies and not yet drawn as at 31 December 2020 amounted to HK$607 million (30 June 2020: HK$611 million).

The Group centralises all the financing and treasury activities at the corporate level. There are internal controls over the application of financial and hedging instruments which can only be employed to manage and mitigate the commodity price risk and currency risk for trade purposes.

̙Զ͉ණྠԴ͜ʘ͊౤՟ʘვБፄ༟׵ɚཧ ɚཧϋɤɚ˜ɧɤɓ˚މಥ࿆607,000,000ʩ €ɚཧɚཧϋʬ˜ɧɤ˚jಥ࿆ 611,000,000 ʩf ͉ණྠ׵ᐼ௅ණʕஈଣהϞፄ༟ʿৌږݺਗf ږፄʿ࿁әʈՈٙᏐ͜աՑʫ௅஝၍dස̙͜ ׵ஈଣʿಯჀၾ൱׸޴ᗫٙਠۜᄆࣸࠬᎈձ஬ ࿆ࠬᎈf

At 31 December 2020, the inventory turnover days were 60 days (30 June 2020: 62 days). The trade receivable turnover days improved to 19 days (30 June 2020: 21 days).

In view of the strong liquidity and financial position, management believes the Group will have sufficient resources to fund its daily operations and capital expenditure commitments.

׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚dπ஬մᔷಂމ 60˚€ɚཧɚཧϋʬ˜ɧɤ˚j62˚f൱׸ ᏐϗಛධմᔷಂҷഛЇ19˚€ ɚ ཧ ɚ ཧ ϋ ʬ ˜ ɧɤ˚j21˚f ᛡ׵͉ණྠ੶਄ٙݴਗˢଟʿৌਕًرd၍ଣ ᄴ޴ڦ͉ණྠϞ̂ԑ༟๕Ꮠ˹˚੬ᐄ༶ʿ༟͉ ක˕וዄධͦf

FINANCIAL REVIEW (continued)

ৌਕΫᚥ€ᚃ

Foreign Currency Exposure

̮ිࠬᎈ

The Group has operations in Mainland China, Hong Kong and Macau. Local costs and revenue are primarily denominated in Renminbi, Hong Kong dollars, and Macau Patacas.

͉ණྠίʕ਷ɽ௔e࠰ಥʿዦژѩϞุਕf຅ ήϓ͉ʿϗɝ˴ࠅ˸ɛ͏࿆eಥ࿆ʿዦژ࿆֛ ᄆf

The Group is exposed to currency risk primarily through sales and purchases, which give rise to receivables, payables and cash balances that are denominated in a foreign currency, i.e. a currency other than the functional currency of the operations to which the transactions relate. The Group monitors its exposure by considering factors including, but not limited to, exchange rate movement of the relevant foreign currencies as well as the Group's cash flow requirements to ensure that its foreign exchange exposure is kept at an acceptable level.

͉ණྠࠦ࿁ٙ஬࿆ࠬᎈd˴ࠅԸІΪ൯ርϾପ ͛ʘᏐϗಛධeᏐ˹ಛධʿତږഐቱd༈ഃධ ͦɗ̮࿆ܲdуʹ׸הऒʿุਕʘ̌ঐ஬࿆˸ ̮ʘ஬࿆ࠇ࠽f͉ණྠϽᅇٙΪ९ܼ̍€Шʔ ࠢ׵Ϟᗫ̮࿆ිଟٙԐැʿ͉ණྠٙତږݴ ඎٙცࠅ္̘࿀Չًرd˸ᆽڭՉࠦ࿁̮ٙි ࠬᎈڭܵί̙ટաٙ˥̻f

Capital Expenditure

༟͉ක˕

During the six months ended 31 December 2020, the Group invested a total sum of HK$54 million (2019: HK$47 million) on construction of new plant and new production lines in China and acquisition of other plant equipment.

࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜d͉ ණྠίʕ਷ܔணอᅀגʿอ͛ପᇞd˸ʿᒅ൯ Չ˼ᅀגண௪΍ҳɝಥ࿆54,000,000ʩ€ɚཧ ɓɘϋjಥ࿆47,000,000ʩf

Details of the capital expenditure commitments are set out in note 13(a) to the interim financial report.

Ϟᗫ༟͉ක˕וዄධͦ༉ઋ̊༱׵ʕಂৌਕజ ѓٙڝൗ13(a)ʫf

HUMAN RESOURCES

ɛɢ༟๕

As at 31 December 2020, there were 1,702 employees in the Group. Annual increment and year-end performance bonus mechanisms were incorporated in the Group's remuneration policy to retain, reward and motivate individuals for their contributions to the Group. In addition, the Company also operates a share option scheme for granting of options to eligible employees.

׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚d͉ණྠኹϞ྇ ࡰ1,702ɛf͉ණྠᑚཇ݁ഄʫணϞϋܓᑚཇ ჈ᄣʿϋ୞ڌତᆤᎸዚՓdᔟϤ࣐वɛʑeᆤ ሧʿዧᎸࡰʈ࿁͉ණྠהЪ্ٙᘠfϤ̮d͉ ʮ̡͵ணٰͭ΅Ⴉᒅᛆࠇྌd˸બٰ̈΅Ⴉᒅ ᛆʚΥ༟ࣸʘ྇ࡰf

The notes on pages 13 to 28 form part of this interim financial report. Details of dividends payable to equity shareholders of the Company attributable to the profit for the period are set out in note 6.

ΐ׵ୋ13 Ї 28ࠫʘ΢ධڝൗމ͉ʕಂৌਕజ ѓʘɓ௅΅fᏐ˹ʚ͉ʮٰ̡؇ᏐЦಂග๐л ٰࢹʘ༉ઋ༱ΐ׵ڝൗ6f

Profit for the period

͉ಂ๐л

Other comprehensive income for the period (net of nil tax and reclassification adjustments)

͉ಂՉ˼Όࠦϗू€ϔৰཧ೼ධʿ ࠠอʱᗳሜ዆ܝ

Item that may be reclassified subsequently to profit or loss:

Exchange differences on translation of financial statements of subsidiaries outside Hong Kong

Չܝ̙ࠠอʱᗳЇฦूሪʘධͦj

౬ၑ࠰ಥ˸̮ڝ᙮ʮ̡ৌਕజڌ הପ͛ʘිгࢨᕘ

Other comprehensive income for the period ͉ಂՉ˼Όࠦϗू

Total comprehensive income for the period ͉ಂΌࠦϗूᐼᕘ

The notes on pages 13 to 28 form part of this interim financial report.

ΐ׵ୋ13 Ї 28ࠫʘ΢ධڝൗމ͉ʕಂৌਕజ ѓʘɓ௅΅f

The notes on pages 13 to 28 form part of this interim financial report.

ΐ׵ୋ13 Ї 28ࠫʘ΢ධڝൗމ͉ʕಂৌਕజ ѓʘɓ௅΅f

Final dividend paid in respect of prior year

At 1 July 2020

Profit for the periodExchange differences on translation ౬ၑ࠰ಥ˸̮ڝ᙮ʮ̡

of financial statements of subsidiaries outside Hong KongTotal comprehensive income for the period

Purchase of ordinary shares of the Company for share option scheme

Transfer from revenue reserve to surplus reserve

Final dividend paid in respect of prior year

At 31 December 2020

At 1 July 2019

Profit for the periodExchange differences on translation ౬ၑ࠰ಥ˸̮ڝ᙮ʮ̡

of financial statements of subsidiaries outside Hong KongTotal comprehensive income for the period

Exercise of share options Equity settled share-based transactions

Purchase of ordinary shares of the Company for share option scheme

Transfer from revenue reserve to surplus reserve

At 31 December 2019

׵ɚཧɚཧϋɖ˜ɓ˚

͉ಂ๐л

ৌਕజڌהପ͛ʘ ිгࢨᕘ

͉ಂΌࠦϗूᐼᕘ

ఱٰ΅Ⴉᒅᛆࠇྌᒅ൯ ͉ʮ̡ʘ౷ஷٰ ͟ϗूᎷ௪ᔷᅡЇޮቱᎷ௪ ఱֻϋܓʊ˹͋ಂٰࢹ

׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚

׵ɚཧɓɘϋɖ˜ɓ˚

͉ಂ๐л

ৌਕజڌהପ͛ʘ ිгࢨᕘ

͉ಂΌࠦϗूᐼᕘ

БԴʘٰ΅Ⴉᒅᛆ ܲᛆूഐၑʘ˸ٰ΅މ ਿᓾʹ׸ ఱٰ΅Ⴉᒅᛆࠇྌᒅ൯ ͉ʮ̡ʘ౷ஷٰ ͟ϗूᎷ௪ᔷᅡЇޮቱᎷ௪ ఱֻϋܓʊ˹͋ಂٰࢹ

׵ɚཧɓɘϋɤɚ˜ɧɤɓ˚

Note ڝൗ

11(a)

11(a)

6(b)

6(b)

HK$'000 ಥ࿆ɷʩ

672,777

672,777

Share capital

ٰ͉

- - -

-

- - -

-

-

Surplus reserves

HK$'000 ಥ࿆ɷʩ

ޮቱᎷ௪

162,896

156,399

6,497

6,497

ESOP reserveExchange reserveRevenue reserve

Total

Б݁ɛࡰ ٰ΅Ⴉᒅᛆ ˙ࣩᎷ௪

ිгᎷ௪

ϗूᎷ௪

Υࠇ

HK$'000 ಥ࿆ɷʩ

HK$'000 ಥ࿆ɷʩ

HK$'000 ಥ࿆ɷʩ

HK$'000 ಥ࿆ɷʩ

HK$'000 ಥ࿆ɷʩ

(52,978)

1,072

(33,504)

1,580,064

2,323,830

-

-

-

-

187,325

187,325

-

-

-

(27,256)

-

(27,256)

- - -

-

-

(27,256)

187,325

160,069

4,417

(478)

-

(1,611)

2,328

-

78

-

-

78

-

(4,431)

-

-

-

(4,431)

-

-

- - -

(6,497)

-

-

-

-

(71,077)

(71,077)

(14)

(400)

(79,185)

(73,102)

(52,992)

672

(60,760)

1,688,204

2,410,797

The notes on pages 13 to 28 form part of this interim financial report.

ΐ׵ୋ13 Ї 28ࠫʘ΢ධڝൗމ͉ʕಂৌਕజ ѓʘɓ௅΅f

The notes on pages 13 to 28 form part of this interim financial report.

ΐ׵ୋ13 Ї 28ࠫʘ΢ධڝൗމ͉ʕಂৌਕజ ѓʘɓ௅΅f

• 1. Basis of preparation

  • 1. ᇜႡਿ๟

• This interim financial report has been prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, including compliance with Hong Kong Accounting Standard ("HKAS") 34, Interim financial reporting, issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA").

  • ͉ʕಂৌਕజѓɗܲ๫࠰ಥᑌΥʹ׸הϞࠢʮ̡ᗇ Վɪឈ஝ۆʘቇ͜מᚣૢ˖஝֛ʿ࠰ಥึࠇࢪʮึ €˜࠰ಥึࠇࢪʮึ™ה཯̺ʘ࠰ಥึࠇ๟ۆ€˜࠰ಥ ึࠇ๟ۆ™ୋɧɤ̬໮˜ʕಂৌਕజѓ™ʘ஝֛Ͼᇜ Ⴁf

• The interim financial report has been prepared in accordance with the same accounting policies adopted in the 2019/20 annual financial statements, except for the accounting policy changes that are expected to be reflected in the 2020/21 annual financial statements. Details of any changes in accounting policies are set out in note 2.

  ৰཫಂ׵ɚཧɚཧŊɚɓϋܓৌਕజڌˀ݈ٙึࠇ ݁ഄᜊਗ̮d͉ʕಂৌਕజѓɗ࣬ኽɚཧɓɘŊɚ ཧϋʘΌϋৌਕజڌהમॶʘ޴Νึࠇ݁ഄϾᇜ Ⴁf΂Оึࠇ݁ഄʘᜊਗ༉ઋ༱׵ڝൗ2f

  This interim financial report contains condensed consolidated financial statements and selected explanatory notes. The notes include an explanation of events and transactions that are significant to an understanding of the changes in financial position and performance of the Group since the 2019/20 annual financial statements. The condensed consolidated interim financial statements and notes thereon do not include all of the information required for a full set of financial statements prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs").

  ͉ʕಂৌਕజѓ༱Ϟᔊ׼ၝΥৌਕజڌʿ຾፯֛ ʘᙕࠑڝൗfڝൗ༱ϞϞп׵ə༆͉ණྠІɚཧ ɓɘŊɚཧϋܓৌਕజڌ˸Ըʘৌਕًرʿุᐶᜊ ਗٙ޴ᗫࠠࠅԫ΁ʿʹ׸ʘᙕᙑfᔊ׼ၝΥʕಂ ৌਕజڌʿՉڝൗԨʔܼ̍࣬ኽ࠰ಥৌਕజѓ๟ۆ €˜࠰ಥৌਕజѓ๟ۆ™הᇜႡҁ዆ৌਕజڌהცٙ Ό௅༟ࣘf

  The interim financial report is unaudited. The financial information relating to the financial year ended 30 June 2020 that is included in the interim financial report as comparative information does not constitute the Company's statutory annual consolidated financial statements for that financial year but is derived from those financial statements. Further information relating to these statutory financial statements disclosed in accordance with section 436 of the Hong Kong Companies Ordinance (Cap. 622) is as follows:

  ͉ʕಂৌਕజѓɗ͊຾ᄲࣨf͉ʕಂৌਕజѓʕ༱ ϞϞᗫ࿚Їɚཧɚཧϋʬ˜ɧɤ˚˟ৌ݁ϋܓٙৌ ਕ༟ࣘ€уˢ༰༟ࣘԨʔ࿴ϓ͉ʮ̡׵༈ৌ݁ϋܓ ٙج֛ϋܓၝΥৌਕజڌdઓɗ࿜፽І༈ഃৌਕజ ڌfϞᗫϤഃج֛ৌਕజڌʘආɓӉ༟ࣘ඲ܲ๫࠰ ಥʮ̡ૢԷ€ୋ622௝ୋ436ૢמᚣνɨj

  The Company has delivered the financial statements for the year ended 30 June 2020 to the Registrar of Companies as required by section 662(3) of, and Part 3 of Schedule 6 to, the Companies Ordinance.

  ͉ʮ̡ʊܲʮ̡ૢԷୋ662(3)ૢʿୋ3௅ڝڌ6ʘ஝ ֛dΣ࠰ಥʮ̡ൗ̅ஈ჈ʹ࿚Їɚཧɚཧϋʬ˜ ɧɤ˚˟ϋܓʘৌਕజڌf

  The Company's auditor has reported on those financial statements. The auditor's report was unqualified; did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying its report; and did not contain a statement under section 406(2), 407(2) or (3) of the Companies Ordinance.

  ͉ʮ̡ʘࣨᅰࢪʊఱ༈ഃৌਕజڌ೯ڌజѓf༈జ ѓԨೌڭवจԈiԨೌ༱Ϟࣨᅰࢪ׵̈Ոೌڭवจ Ԉٙઋرɨd౤ሗءจ΂Оˏࠑʘ੶ሜԫධi͵ʔ ༱Ϟ࣬ኽʮ̡ૢԷୋ406(2)אୋ407(2) א (3)ૢЪ̈ ٙ௓ࠑf

• 2. Changes in accounting policies

  • 2. ึࠇ݁ഄٙᜊਗ

• The HKICPA has issued a number of amendments to HKFRSs that are first effective for the current accounting period of the Group. None of these developments have had a material effect on how the Group's results and financial position for the current or prior periods have been prepared or presented.

  • ࠰ಥึࠇࢪʮึ཯бəεධ׵͉ණྠ຅ۃึࠇಂග

    ڋ֐͛ࣖٙ࠰ಥৌਕజѓ๟ۆࡌࠈ͉d༈ഃ೯࢝฿

    ೌ࿁͉ණྠ͉ಂගאཀֻಂගʘุᐶʿৌਕًرᇜ

    Ⴁאяΐ˙όிϓࠠɽᅂᚤf

  The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.

͉ණྠԨ͊׵͉ึࠇಂගᏐ֠͊͛ࣖ͜ʘ΂Оอࠈ ๟ۆא༕ᙑf

Food:manufacture and distribution of a wide range of food products including flour, edible oils and specialty fats, and trading and distribution of health products.

࠮ۜj

Ⴁிʿʱቖɓӻΐ࠮ۜପۜdܼ̍ᙢ ४d࠮͜ذʿत၇ذইd˸ʿ൱׸ʿ ʱቖ਄ੰପۜf

Home Care: manufacture and distribution of household and institutional cleaning products.

࢕֢ᚐଣj Ⴁிʿʱቖ࢕͜ʿʈุ͜௄ʘ૶ᆎ͜ ۜf

(a)Disaggregation of revenue

(a)

ϗɝྌʱ

Disaggregation of revenue from contracts with customers by major products or service lines and geographical location of customers is as follows:

Revenue from contracts with customers within the scope of HKFRS 15

Disaggregated by major products or service lines - Sales of goods

ܲ˴ࠅପۜא؂ਕʿ܄˒הίήਜʘ๕І܄ ˒ΥΝٙϗɝྌʱνɨj

࠰ಥৌਕజѓ๟ۆୋɤʞ໮ᇍఖ ʫʘ๕І܄˒ΥΝٙϗɝ ܲ˴ࠅପۜא؂ਕྌʱ Ñ̈ਯਠۜ

Six months ended 31 December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

Revenue from other sources Rental income

Չ˼ϗɝԸ๕ ॡږϗɝ

Disaggregated by geographical location of customers - Hong Kong and Macau - Mainland China

ܲ܄˒הίήਜྌʱ

Ñ࠰ಥʿዦژ Ñʕ਷ɽ௔

Disaggregation of revenue from contracts with customers by the timing of revenue recognition is disclosed in note 3(b).

ܲϗɝᆽႩࣛගྌʱʘ๕І܄˒ΥΝٙϗɝ ׵ڝൗ3(b)ʕמᚣf

Revenue and segment reporting (continued)

ϗɝʿʱ௅జѓ€ᚃ

(b)Information about profit or loss, assets and liabilities

(b)

ฦूሪe༟ପʿࠋවٙ༟ࣘ

Disaggregation of revenue from contracts with customers by timing of revenue recognition as well as information regarding the Group's reportable segments as provided to the Group's most senior executive management is set out below:

ܲϗɝᆽႩࣛගྌʱʘ๕І܄˒ΥΝٙϗ ɝd˸ʿϞᗫ౤Զʚ͉ණྠ௰৷ᄴБ݁၍ଣ ɛࡰʘ͉ණྠ̙яజʱ௅༟ࣘ༱ΐνɨj

Six months ended 31 December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

• 3. Revenue and segment reporting (continued)

  ϗɝʿʱ௅జѓ€ᚃ

  (c)Reconciliations of reportable segment profit or loss

  Reportable segment profit from operations Unallocated exchange gains/(losses) Unallocated head office and corporate expenses Finance costs

  (c)

  ̙яజʱ௅ʘฦूሪٙ࿁ሪ

  ̙яజʱ௅ʘ຾ᐄ๐л ͊ʱৣʘිгϗूŊ€ᑦฦ ͊ʱৣʘᐼʮ̡ʿΆุ൬͜ ፄ༟ϓ͉

  Six months ended 31 December

  ࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

  Consolidated profit before taxation

  ၝΥৰ೼ۃ๐л

• 4. Profit before taxation

  4.

  ৰ೼ۃ๐л

  Profit before taxation is arrived at after charging/(crediting):

Finance costs

Interest on lease liabilities

ፄ༟ϓ͉ ॡ༣ࠋවʘлࢹ

ৰ೼ۃ๐лʊϔৰŊ€ࠇɝɨΐ΢ධj

Six months ended 31 December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2019 ɚཧɓɘϋ

(Unaudited)

€͊຾ᄲࣨ

HK$'000 ಥ࿆ɷʩ

118

Salaries, wages and other benefits Share-based payment expenses Contribution to defined contribution retirement plans (note (i))

Staff costs

Depreciation and amortisation

Leasehold land and property, plant and equipment Intangible assets

ᔖʈϓ͉ ʈ༟eᑚږʿՉ˼၅л ٰᛆ˕˹൬͜ ֛ᕘԶಛৗ;ࠇྌʘ

Զಛ€ڝൗ(i)

ұᔚʿᛅቖ ॡ༣ɺήʿيุeᅀגʿண௪ ೌҖ༟ପ

197,036 78 14,404

211,518

30,190 31,480

2,599 2,317

33,797

• (i) During the six months ended 31 December 2020, social security contributions amounted to HK$13,873,000 were exempted in Mainland China following the government introduced temporary waiver from the payment of social security contributions.

  • (i) ࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜d ʕ਷ִ݁࿁ٟึڭᎈ൬͜ʘᖮ൬౤Զᅲࣛе ּdϤഃ൬͜ಥ࿆13,873,000ʩʊᐏ੻ᒀеf

• (ii) During the six months ended 31 December 2020, government grants primarily represented one-off government subsidies granted due to COVID-19 pandemic of HK$9,029,000 under the Employment Support Scheme of Hong Kong.

  • (ii) ࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜d ִ݁໾൨˴ࠅܸ݊͟׵ 2019 ڿًषݭष €˜ COVID-19 ™ޥઋϾᐏબٙɓϣ׌ִ݁༟ пdՉʕܼ̍ಥ࿆9,029,000ʩԸІ࠰ಥ˜ڭ ఱุ™ࠇྌf

• (iii) During the six months ended 31 December 2019, expenditure relating to the plant relocation project of HK$10,260,000 which mainly included fixed asset write-off of the old plant of HK$8,325,000 had been incurred. A corresponding amount of government compensation was then credited to the consolidated statement of profit or loss.

  • (iii) ࿚Їɚཧɓɘϋɤɚ˜ɧɤɓ˚˟ʬࡈ ˜dΪᅀגยቋධͦϾପ͛ٙ൬͜މಥ࿆ 10,260,000ʩd˴ࠅܼ̍ᔚᅀגո֛༟ପʘ ءቖމಥ࿆8,325,000ʩf޴ᗫږᕘʘִ݁໾ ൨ʊࠇɝၝΥฦूڌf

• (iv) The Group entered into various foreign exchange forward contracts to manage its foreign currency risk exposures during the period.

• (iv) ͉ණྠ׵ಂʫࠈͭə߰ʍ̮࿆ჃಂΥΝd˸ ၍ଣהࠦ࿁̮ٙිࠬᎈf

Taxation

೼ධ

Taxation in the consolidated statement of profit or loss represents:Current tax - Hong Kong Profits Tax Current tax - Outside Hong Kong Deferred taxation

͉ಂ೼ධÑ࠰ಥл੻೼ ͉ಂ೼ධÑ࠰ಥ˸̮ ჈ַ೼ධ

׵ၝΥฦूڌʘ೼ධމj

Six months ended 31 December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

The provision for Hong Kong Profits Tax is calculated by applying the estimated annual effective tax rate of 16.5% (2019: 16.5%) to the respective estimated assessable profits of companies within the Group operating in Hong Kong for the six months ended 31 December 2020.

࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜ί࠰ಥᐄ ༶ٙණྠʮ̡ʘ࠰ಥл੻೼ᅡ௪dɗ࣬ኽಂʫПࠇ ʘᏐሙ೼๐лܲПࠇΌϋྼყ೼ଟ16.5%€ɚཧɓɘ ϋj16.5%ࠇၑf

Taxation for subsidiaries operating in Mainland China and Macau is similarly calculated using the estimated annual effective rates of taxation that are expected to be applicable in the respective regions.

׵ʕ਷ɽ௔ձዦژ຾ᐄʘڝ᙮ʮ̡ʘ೼ධɗܲቇ͜ ׵Չהίٙ޴ᗫήਜʘПࠇΌϋྼყ೼ଟࠇၑf

All entities engaged in the primary processing of agricultural products in Mainland China are exempted from PRC corporate income tax ("CIT"). As a result, the profits from flour mill operations are exempted from CIT for the six months ended 31 December 2020 and 2019.

Other subsidiaries operating in Mainland China are subject to CIT tax rates of 25% (2019: 25%).

הϞίʕ਷ɽ௔຾ᐄ༵ପۜڋ̋ʈʘΆุѩᐏᒀе ʕ਷Άุה੻೼€˜Άุה੻೼™fΪϤd׵࿚Їɚ ཧɚཧϋʿɚཧɓɘϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜ಂ ග຾ᐄᙢ४ᅀהᒃ՟ʘ๐л̙ᐏᒀеʕ਷ɽ௔ʘΆ ุה੻೼f ׵ʕ਷ɽ௔຾ᐄʘՉ˼ڝ᙮ʮ̡dಂʫΆุה੻೼ ೼ଟމ25%€ɚཧɓɘϋj25%f

In addition, the Group is subject to withholding tax at the applicable rate of 5% on distribution of profits generated after 31 December 2007 from the foreign investment enterprises established in Mainland China. Deferred tax liabilities have been provided for in this regard based on the dividends distributable by its subsidiaries established in Mainland China in respect of profits generated after 31 December 2007.

Ϥ̮d͉ණྠ඲ఱίʕ਷ɽ௔ண̮ͭٙ༟Άุ׵ɚ ཧཧɖϋɤɚ˜ɧɤɓ˚ܝהପ͛ٙ๐лЪ̈ʘʱ ݼdܲቇ͜೼ଟ5%ᖮॶཫϔ೼fఱϤ˙ࠦdʊ࣬ ኽίʕ਷ɽ௔ண̮ͭٙ༟Άุ׵ɚཧཧɖϋɤɚ˜ ɧɤɓ˚ܝପ͛ʘ๐л̙ʱݼʘٰࢹࠇ౤჈ַ೼ධ ࠋවf

Dividends

ٰࢹ

(a)Dividends payable to equity shareholders of the Company (excluding the amount paid to shares held by the Group under the ESOP reserve) attributable to the interim period

Interim dividend declared and paid after the interim period of HK$0.15 (2019: HK$0.14) per ordinary share

(a)

ಂʫᏐ˹͉ʮٰ̡؇ٰࢹ€ϔৰʊ˹ʚ͉ණྠ ׵Б݁ɛࡰٰ΅Ⴉᒅᛆ˙ࣩᎷ௪ɨܵϞʘٰ ΅ٙږᕘ

ʕಂٰࢹ܁ݼʿ׵ಂܝʊ˹ ӊٰ౷ஷٰಥ࿆0.15ʩ €ɚཧɓɘϋjಥ࿆0.14ʩ

Six months ended 31 December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2019 ɚཧɓɘϋ

(Unaudited)

€͊຾ᄲࣨ

HK$'000 ಥ࿆ɷʩ

33,227

(b)

Final dividend in respect of the previous financial year, approved and paid during the following interim period, of HK$0.31

(2019: HK$0.30) per ordinary share

ಂʫᐏҭʿʊ˹ٙϞᗫ ۃɓࡈৌ݁ϋܓ͋ಂٰࢹd ӊٰ౷ஷٰಥ࿆0.31ʩ €ɚཧɓɘϋjಥ࿆0.30ʩ

(Unaudited)

€͊຾ᄲࣨ

HK$'000 ಥ࿆ɷʩ

71,077

Earnings per share

ӊٰޮл

(a)Basic earnings per share

(a)

ӊٰਿ͉ޮл

The calculation of basic earnings per share is based on the profit for the period of HK$238,233,000 (2019: HK$187,325,000) and the weighted average number of 236,734,000 (2019: 237,073,000) ordinary shares in issue during the interim period.

Issued ordinary shares at beginning of period

ಂڋʊ೯Б౷ஷٰ

ӊٰਿ͉ޮлɗ࣬ኽ͉ಂ๐лಥ࿆ 238,233,000 ʩ€ ɚ ཧ ɓ ɘ ϋ j ಥ ࿆ 187,325,000 ʩʿ׵͉ಂʫʊ೯Б౷ஷٰ ʘ̋ᛆ̻ѩᅰ 236,734,000 €ɚཧɓɘϋj 237,073,000ٰ౷ஷٰࠇၑf

Six months ended 31 December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

Effect of shares purchased in prior years Effect of shares purchased in current period

ֻϋܓΫᒅʘ౷ஷٰٙᅂᚤ ಂʫΫᒅʘ౷ஷٰٙᅂᚤ

Effect of shares options exercised in prior years Effect of share options exercised in current period

ֻϋܓБԴʘٰ΅Ⴉᒅᛆٙᅂᚤ ಂʫБԴʘٰ΅Ⴉᒅᛆٙᅂᚤ

Weighted average number of ordinary shares at end of period

ಂ͋౷ஷٰ̋ᛆ̻ѩᅰ

Earnings per share (continued)

ӊٰޮл€ᚃ

• (b) Diluted earnings per share

  (b)

  ӊٰᛅᑛޮл

  The calculation of diluted earnings per share is based on the profit for the period of HK$238,233,000 (2019: HK$187,325,000) and the weighted average number of ordinary shares of 236,734,000 (2019: 237,411,000) after adjusting the effect of deemed issue of shares under the Company's share option scheme, calculated as follows:

  Weighted average number of ordinary shares at end of period

  Effect of deemed issue of shares under the

  Company's share option scheme

  ӊٰᛅᑛޮлɗ࣬ኽ͉ಂ๐лಥ࿆ 238,233,000 ʩ€ ɚ ཧ ɓ ɘ ϋ j ಥ ࿆ 187,325,000 ʩʿ౷ஷٰٙ̋ᛆ̻ѩٰᅰ 236,734,000€ɚཧɓɘϋj237,411,000ٰ ʊఱ৿ணΪ࣬ኽ͉ʮ̡ʘٰ΅Ⴉᒅᛆࠇྌ೯ Б౷ஷٰٰ΅ٙᅂᚤЪ̈ሜ዆ࠇၑj

  ಂ͋౷ஷٰ̋ᛆ̻ѩᅰ ৿ணΪ࣬ኽ͉ʮ̡ʘٰ΅Ⴉᒅᛆ ࠇྌ೯Б౷ஷٰٰ΅ٙᅂᚤ

  Six months ended 31 December

  ࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

  2019 ɚཧɓɘϋ

  (Unaudited)

  €͊຾ᄲࣨ '000 ɷ

  237,073

  338

  Weighted average number of ordinary shares

  (diluted) at end of period

  ಂ͋౷ஷٰ€ᛅᑛ̋ᛆ̻ѩᅰ

  237,411

  8.

  For the six months ended 31 December 2020, the diluted	ಂʫԨೌ֠͊೯Бʘᆑίᛅᑛ౷ஷٰdΪϤ
  earnings per share equalled the basic earnings per share as	࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜ʘ
  there were no dilutive potential ordinary shares outstanding	ӊٰᛅᑛޮл޴ഃ׵ӊٰਿ͉ޮлf
  during the period.
  Leasehold land and property, plant and equipment	8.	ॡ༣ɺήʿيุeᅀגʿண௪

• (a) Right-of-use assets

  • (a) Դ͜ᛆ༟ପ

• During the six months ended 31 December 2020, the Group entered into a number of lease agreements for use of offices and equipment, and therefore recognised the additions to right-of-use assets of HK$4,250,000 (2019: HK$4,748,000).

  • ࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜d ͉ණྠఱԴ͜፬ʮ܃ʿண௪ࠈͭᅰධॡ༣՘ ᙄdΪϤᆽႩԴ͜ᛆ༟ପᄣ̋ಥ࿆4,250,000ʩ €ɚཧɓɘϋjಥ࿆4,748,000ʩf

• (b) Acquisitions and disposals of owned assets

  • (b) ᒅ൯ʿ̈ਯІϞ༟ପ

• During the six months ended 31 December 2020, the Group acquired items of property, plant and equipment with a cost of HK$68,486,000 (2019: HK$46,345,000). Items of property, plant and equipment with a net book value of HK$2,032,000 (2019: HK$8,492,000) were disposed of during the six months ended 31 December 2020.

• ࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ ˜d͉ණྠᒅɝيุeᅀגʿண௪ٙᐼϓ ͉މಥ࿆ 68,486,000 ʩ€ɚཧɓɘϋjಥ࿆ 46,345,000 ʩf࿚Їɚཧɚཧϋɤɚ˜ ɧɤɓ˚˟ʬࡈ˜d஗̈ਯʘيุeᅀגʿ ண௪ධͦሪࠦଋ࠽މಥ࿆2,032,000ʩ€ɚཧ ɓɘϋjಥ࿆8,492,000ʩf

At 30 June 2020 ׵ɚཧɚཧϋ ʬ˜ɧɤ˚

(Audited)

€຾ᄲࣨ

Note ڝൗ

HK$'000 ಥ࿆ɷʩ

Within 3 months 3 to 6 months Over 6 months

ɧࡈ˜ʫ ɧЇʬࡈ˜ ʬࡈ˜˸ɪ

331,993 307,465

5,970 2,398

2,571 296

Trade receivables, net of loss allowance

Derivative financial instruments: - Foreign exchange forward contracts

ϔৰᑦฦᅡ௪ʘ൱׸Ꮠϗሪಛ ࠃ͛ږፄʈՈj Ñ̮࿆ჃಂΥΝ

Other receivables, deposits and prepayments Չ˼Ꮠϗಛeܲږʿཫ˹ಛධ

Credits are offered to customers following financial assessments and established payment records where applicable. Credit limits are set for all customers and these are exceeded only with the approval of senior company officers. Customers considered to be with credit risk are traded on a cash basis. General credit terms are payment within 30 to 60 days following the sales took place. Regular review and follow up actions are carried out on overdue amounts to minimise the Group's exposure to credit risk. Collaterals over properties are obtained from certain customers.

12(a)

310,159

584 36,473

347,216

܄˒ڦ൲ɗ׵ආБৌਕ൙Пܝʿਿ׵ʊܔͭٙ˹ಛ া፽€νቇ͜Ͼᔾ֛fהϞ܄˒ѩணϞڦ൲ࠢᕘd ˲ίʮ̡৷ॴɛࡰҭࡘܝ˙̙൴̈Ϟᗫࠢᕘf߰Ⴉ މ܄˒Ϟڦ൲ࠬᎈdۆ˸ତږආБʹ׸fɓছڦ൲ ׵ቖਯ೯͛ܝ30Ї60˚ʫՑಂfމəኋඎಯˇڦ൲ ࠬᎈd͉ණྠ֛ಂᏨীགྷಂ͊˹ږᕘԨમ՟༧ආБ ਗf͉ණྠึ੽߰ʍ܄˒՟੻يุתץf

At 30 June 2020 ׵ɚཧɚཧϋ ʬ˜ɧɤ˚

(Audited)

€຾ᄲࣨ

Note ڝൗ

HK$'000 ಥ࿆ɷʩ

Within 3 months More than 3 months

ɧࡈ˜ʫ ɧࡈ˜˸ɪ

378,433 306,865

6,129 6,529

Other payables and accruals Deferred income

Trade payables

Deposits received

Derivative financial instruments: - Foreign exchange forward contracts

൱׸Ꮠ˹ಛධ ʊϗܲږ Չ˼Ꮠ˹ಛʿᏐࠇ൬͜ ჈ַϗɝ ࠃ͛ږፄʈՈj Ñ̮࿆ჃಂΥΝ

384,562 313,394

9,590 10,259

287,677 311,554

4,912 4,472

12(a)

114

639,793

Share capital

ٰ͉

(a)Issued share capital

Ordinary shares, issued and fully paid

ʊ೯Бʿʊᖮԑ౷ஷٰ

(a)

ʊ೯Бٰ͉

At 30 June 2020 ׵ɚཧɚཧϋʬ˜ɧɤ˚

(Audited)

€຾ᄲࣨ

Number of shares ٰ΅ᅰඎ

During the period, the Group purchased its own ordinary shares on The Stock Exchange of Hong Kong Limited for the purpose of satisfying the exercise of share options to be granted under the Group's share option scheme as follows:

ಂʫdމတԑਗ਼Ըબʚٰ΅Ⴉᒅᛆ̙஗БԴ ٙૢ΁d͉ණྠٰܲ΅ႩᒅᛆࠇྌᒅɝՉί ࠰ಥᑌΥʹ׸הϞࠢʮ̡ન೐ٙ౷ஷٰνɨj

For the six months ended 31 December 2020 (Unaudited):

࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜€͊ ຾ᄲࣨj

Month/year

ϋŊ˜΅

November 2020

August 2020

September 2020

October 2020

December 2020

ɚཧɚཧϋɞ˜ ɚཧɚཧϋɘ˜ ɚཧɚཧϋɤ˜ ɚཧɚཧϋɤɓ˜ ɚཧɚཧϋɤɚ˜

For the six months ended 31 December 2019 (Unaudited):

࿚Їɚཧɓɘϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜€͊ ຾ᄲࣨj

Month/yearSeptember 2019

October 2019

November 2019

December 2019

ϋŊ˜΅

ɚཧɓɘϋɘ˜ ɚཧɓɘϋɤ˜ ɚཧɓɘϋɤɓ˜ ɚཧɓɘϋɤɚ˜

Number of shares purchased

ᒅɝٰ΅ᅰඎ '000 ɷ

Highest price paid per share ʊᖮ˹ӊٰ௰৷ᄆࣸ

HK$ ಥ࿆ʩ

130 13.68

75 13.80

47 14.40

71 14.60

323

Share capital (continued)

ٰ͉€ᚃ

• (a) Issued share capital (continued)

  • (a) ʊ೯Бٰ͉€ᚃ

• The considerations of the purchased shares for the six months ended 31 December 2020 of HK$9,530,000 (2019: HK$4,431,000) were charged to ESOP reserve.

  The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company's residual assets.

  • ࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜ᒅ

    ɝٰ΅ٙᄆ࠽މಥ࿆9,530,000ʩ€ɚཧɓɘ

    ϋjಥ࿆4,431,000ʩԨʊίБ݁ɛࡰٰ΅

    Ⴉᒅᛆ˙ࣩᎷ௪ϔৰf

    ౷ஷٰʘܵϞɛ̙ϗ՟ʔࣛ܁ݼʘٰࢹdԨ

    ̙׵͉ʮ̡ʘɽึɪఱӊٰٰ΅ԮϞɓୃҳ

    ୃᛆfఱ͉ʮ̡ʘ௵ቱ༟ପϾԊdהϞ౷ஷ

    ٰԮϞΝഃᛆлf

    As at 31 December 2020, there were 6,620,000 (30 June 2020: 5,864,000) ordinary shares acquired and held by the Group under the ESOP reserve for the purpose of satisfying the exercise of share options to be granted to eligible employees.

    ׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚dމတԑਗ਼Ը બʚΥ༟ࣸࡰʈٰ΅Ⴉᒅᛆ̙஗БԴٙૢ ΁d͉ණྠ׵Б݁ɛࡰٰ΅Ⴉᒅᛆ˙ࣩᎷ௪ ʕܵϞ౷ஷٰ6,620,000ٰ€ɚཧɚཧϋʬ˜ ɧɤ˚j5,864,000ٰf

• (b) Equity settled share-based transactions

  • (b) ܲᛆूഐၑʘ˸ٰ΅މਿᓾʹ׸

• The Company has a share option scheme for eligible employees of the Group. Movement of the share options outstanding during the period are as follows:

• ͉ʮ̡މ͉ණྠΥ༟ࣸࡰʈணٰͭ΅Ⴉᒅᛆ

  ˙ࣩfಂʫd֠͊БԴʘٰ΅Ⴉᒅᛆᜊਗઋ

  رνɨj

Six months ended 31 December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

Ⴉᒅᛆᅰͦ ̋ᛆ̻ѩБԴᄆ

Number of options

HK$ ಥ࿆ʩ

Ⴉᒅᛆᅰͦ '000 ɷ

Outstanding at the beginning of the period

Exercised during the period

׵ಂڋ֠͊஗БԴ

׵ಂʫ஗БԴ

4.79 4.62

1,035 (504)

Outstanding at the end of the period

׵ಂ͋֠͊஗БԴ

4.95

531

Fair value measurement of financial instruments

ږፄʈՈٙʮ̻ᄆ࠽ࠇඎ

(a)Financial assets and liabilities measured at fair value

(a)

˸ʮ̻ᄆ࠽ࠇඎʘږፄ༟ପʿࠋව

• - Level 1 valuations: Fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date.

  • Ñ ୋɓॴйП࠽jසԴ͜ୋɓॴй ፩ɝᅰኽ€уࠇඎ˚ಂ຅˚޴Ν ༟ପʿࠋවݺᚔ̹ఙɪٙ͊຾ሜ ዆జᄆࠇඎٙʮ̻ᄆ࠽f

• - Level 2 valuations: Fair value measured using Level 2 inputs i.e. observable inputs which fail to meet Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for which market data are not available.

  • Ñ ୋɚॴйП࠽jԴ͜ୋɚॴй ፩ɝᅰኽ€уʔୌΥୋɓॴйᅺ ๟̙ٙᝈ࿀ᅰኽࠇඎٙʮ̻ᄆ ࠽d˲ʔึԴࠠ͜ɽʔ̙ᝈ࿀፩ ɝᅰኽfʔ̙ᝈ࿀፩ɝᅰኽމ͊ ঐ՟੻̹ఙᅰኽٙ፩ɝᅰኽf

• - Level 3 valuations: Fair value measured using significant unobservable inputs.

• Ñ ୋɧॴйП࠽jԴࠠ͜ɽʔ̙ᝈ ࿀፩ɝᅰኽࠇඎٙʮ̻ᄆ࠽f

Fair value measurement of financial instruments (continued)

ږፄʈՈٙʮ̻ᄆ࠽ࠇඎ€ᚃ

(a)Financial assets and liabilities measured at fair value (continued)

(a)

˸ʮ̻ᄆ࠽ࠇඎʘږፄ༟ପʿࠋව€ᚃ

• (i) Fair value hierarchy (continued)

  (i)

  ʮ̻ᄆ࠽ॴй€ᚃ

  Recurring fair value measurements

  ຾੬׌ʮ̻ᄆ࠽ࠇඎ

  Assets

  Other non-current assets: - Club membership

  ༟ପ Չ˼ڢݴਗ༟ପj Ñึᘬ

  Derivative financial instruments: ࠃ͛ږፄʈՈj

  - Foreign exchange forward contracts

  Ñ̮࿆ჃಂΥΝ

  Liability

  ࠋව

  Derivative financial instruments: ࠃ͛ږፄʈՈj

  - Foreign exchange forward contracts

  Ñ̮࿆ჃಂΥΝ

  During the six months ended 31 December 2020, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3 (2019: Nil). The Group's policy is to recognise transfers between levels of fair value hierarchy as at the end of the reporting period in which they occur.

  ࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬ ࡈ˜dୋɓॴйၾୋɚॴйʘගӚϞ ᔷ୅dɰӚϞᔷɝאᔷ̈ୋɧॴй€ɚ ཧɓɘϋjೌf͉ණྠ݁ഄމ׵ॴй ᔷ୅೯͛ʘజѓಂ୞˚ᆽႩʮ̻ᄆ࠽ ॴйᔷ୅f

• (ii) Valuation techniques and input used in Level 2 fair value measurements

  (ii)

  મ͜׵ୋɚॴйʮ̻ᄆ࠽ࠇඎٙП࠽ Ҧஔʿ፩ɝᅰኽ

  The fair value of club membership in Level 2 is

  determined using market comparison approach by

  reference to quoted prices in an active market of

  financial assets similar to the instrument being valued,

  adjusted for factors unique to the instrument being

  valued.

  The fair value of foreign exchange forward contracts

  in Level 2 is determined based on quotes from market

  makers or alternative participants supported by

  observable inputs including spot and forward exchange

  rates.

ΐЪୋɚॴйʘึᘬʘʮ̻ᄆ࠽݊ਞ ϽձʈՈ޴ڐʘږፄ༟ପ̹ܲఙˢ༰ جίݺᚔ̹ఙʘ̹ఙజᄆdΎ˸Ϟᗫ ʈՈʘዹϞΪ९ʚ˸ሜ዆f

ΐЪୋɚॴйʘ̮࿆ჃಂΥΝʘʮ̻ ᄆ࠽݊˸୿࢕אՉ˼̹ఙਞၾ٫˸̙ ᝈ࿀፩ɝᅰኽה˕ܵٙజᄆԸᔾ֛d Չʕܼ̍уಂʿჃಂිଟf

• 12. Fair value measurement of financial instruments (continued)

  • 12. ږፄʈՈٙʮ̻ᄆ࠽ࠇඎ€ᚃ

    (b)Fair value of financial assets and liabilities carried at other than fair value

    (b)

    ڢ˸ʮ̻ᄆ࠽ΐሪٙږፄ༟ପʿࠋවʘʮ̻ ᄆ࠽

    The carrying amounts of the Group's financial instruments carried at cost or amortised cost are not materially different from their fair values as at 31 December 2020 and 30 June 2020.

    ׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚ʿɚཧɚཧϋ ʬ˜ɧɤ˚d͉ණྠܲϓ͉אᛅቖϓ͉ΐሪ ʘږፄʈՈٙሪࠦᄆ࠽ၾʮ̻ᄆ࠽Ԩೌࠠɽ ࢨମf

• 13. Commitments

  • 13. וዄ

    • (a) Capital commitments outstanding at the end of the reporting period not provided for in the interim financial report:

  • (a)

  ͉ණྠ׵జѓಂ୞˚Ϟ˸ɨ༟͉וዄ͊ίʕ ಂৌਕజڌʕЪ̈ᅡ௪j

  Capital expenditure authorised and contracted for

  ʊબᛆԨʊࠈߒʘ༟͉ක˕

  Capital expenditure authorised but not contracted for ʊબᛆШ͊ࠈߒʘ༟͉ක˕

  • (b) At 31 December 2020, the Group had several non-cancellable purchase orders for raw materials with its suppliers with an amount of HK$677,664,000 (30 June 2020: HK$754,566,000).

  (b)

  ׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚d͉ණྠၾՉ ԶᏐਠࠈͭᅰੵʔ̙՟ऊٙࡡҿࣘમᒅࠈ ఊdږᕘމಥ࿆677,664,000ʩ€ɚཧɚཧϋ ʬ˜ɧɤ˚jಥ࿆754,566,000ʩf

• 14. Related party transactions

  14.

  Ϟᗫஹɛɻʘʹ׸

  The Group had the following material transactions with its related parties during the period:

Nature of transactions

Management fee expenses to fellow subsidiaries

ʹ׸׌ሯ ၍ଣ൬˕̈ʚΝӻڝ᙮ʮ̡

͉ණྠ׵ಂʫϞ˸ɨࠠɽٙϞᗫஹɛɻʘʹ׸j

Six months ended 31 December

࿚Їɤɚ˜ɧɤɓ˚˟ʬࡈ˜

2019 ɚཧɓɘϋ

(Unaudited)

€͊຾ᄲࣨ

HK$'000 ಥ࿆ɷʩ

7,471

Purchase of goods from a fellow subsidiary

ΣΝӻڝ᙮ʮ̡મᒅ஬ಛ

8,945

REVIEW BY BOARD AUDIT AND RISK MANAGEMENT COMMITTEE

໨ԫึᄲࣨʿࠬᎈ၍ଣ։ࡰึʘᄲቡ

The unaudited interim results for the six months ended 31 December 2020 have been reviewed by the Board Audit and Risk Management Committee of the Company. The information in these interim results does not constitute statutory accounts.

࿚Їɚཧɚཧϋɤɚ˜ɧɤɓ˚˟ʬࡈ˜ʘ͊ ຾ᄲࣨʕಂุᐶd຾ʊ͉͟ʮ̡ʘ໨ԫึᄲࣨ ʿࠬᎈ၍ଣ։ࡰึЪ̈ᄲቡf༈ഃʕಂุᐶʘ ༟ࣘԨʔ࿴ϓج֛ሪͦf

DIRECTORS' INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES

໨ԫ׵ٰ΅e޴ᗫٰ΅ʿවՎʘᛆू

As at 31 December 2020, the directors of the Company have the following interests or short positions in the shares, underlying shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of the Securities and Futures Ordinance ("SFO")) as recorded in the register required to be kept 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") set out in Appendix 10 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the "Listing Rules"):

׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚d͉ʮ̡΢໨ԫ ׵͉ʮ̡אՉ΂О޴ᑌجྠ€່֛ԈᗇՎʿಂ ஬ૢԷ€˜ᗇՎʿಂ஬ૢԷ™ୋXV௅ኹϞ඲࣬ ኽᗇՎʿಂ஬ૢԷୋ352ૢ஝֛Ͼணʘ೮াΤ ̅ʕה༱ʘٰ΅אϞᗫٰ͉ʕʘ૱ࡑٰ΅e޴ ᗫٰ΅ʿවՎʘᛆूʿ࣬ኽ࠰ಥᑌΥʹ׸הɪ ̹஝ۆ€˜ɪ̹஝ۆ™ʘɪ̹ʮ̡໨ԫආБᗇՎ ʹ׸ٙᅺ๟ςۆ€˜ᅺ๟ςۆ™ڝ፽10ה༱඲ ٝึ͉ʮ̡ʿ࠰ಥᑌΥʹ׸הϞࠢʮ̡€˜ᑌʹ ה™ʘᛆूνɨj

Number of shares/ underlying shares held

Name of director ໨ԫ֑Τ

Nature of interest ᛆू׌ሯ

ܵϞٰ΅Ŋ ޴ᗫٰ΅ᅰͦ

Approximate percentage of total number of ordinary shares of the Company in issueTotal ᐼࠇ

Ц͉ʮ̡ʊ೯Б ౷ஷٰᐼᅰʘ฿ ߒϵ΅ˢ

KWEK Leng Hai ெ˿ऎ

Personal ࡈɛ

2,300,000

2,300,000 0.95%

TANG Hong Cheong ቎ဏ׹

Personal ࡈɛ

700,000

700,000 0.29%

WHANG Sun Tze රɪࡪ

Personal ࡈɛ

27,523,743

Corporate ʮ̡

• 19,326 Note ڝൗ

27,543,069 11.32%LO Kai Yiu, Anthony ᖯ઼ᘴ

Personal ࡈɛ

200,000

200,000 0.08%

HUANG Lester Garson 䔔ྗॱ

Family ࢕ૄ

150,000

150,000 0.06%

DIRECTORS' INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES

(continued)

(A) The Company (continued)

Long positions in shares/underlying shares (continued)

Note:

The interests disclosed represent the corporate interests of Dr. WHANG Sun Tze in 18,457 ordinary shares and 869 ordinary shares in the Company held by SGR Investment Company, Limited ("SGR") and T.C. Whang & Company (Private) Limited ("T.C. & Co.") respectively. Dr. WHANG Sun Tze holds 95.41% and 59.52% interests in SGR and T.C. & Co. respectively.

(B)Associated Corporations

໨ԫ׵ٰ΅e޴ᗫٰ΅ʿවՎʘᛆू €ᚃ

• (A) ͉ʮ̡€ᚃ

  ٰ΅Ŋ޴ᗫٰ΅ʘλࡑ€ᚃ

  ڝൗj

  המᚣʘᛆू˾ڌරɪࡪ௹ɻீཀSGR Investment

  Company, Limited€˜ SGR ™ʿ T.C. Whang &

  Company (Private) Limited€˜ T.C. & Co.™ʱйܵ

  Ϟ͉ʮ̡ 18,457 ٰ౷ஷٰʿ 869 ٰ౷ஷٰʘʮ̡

  ᛆूfරɪࡪ௹ɻί SGR ʿ T.C. & Co.ʱйܵϞ

  95.41%ʿ59.52%ʘٰ΅ᛆूf

• (B) ޴ᑌجྠ

(i)Long positions in shares/underlying shares

(i)

ٰ΅Ŋ޴ᗫٰ΅ʘλࡑ

Number of shares/ underlying shares held

Name of associated corporation ޴ᑌجྠΤ၈

Name of director ໨ԫ֑Τ

Nature of interest ᛆू׌ሯ

ܵϞٰ΅Ŋ

Note

޴ᗫٰ΅ᅰͦ ڝൗ

Approximate percentage of total number of ordinary shares of associated corporation in issueTotal ᐼࠇ

Ц޴ᑌجྠʊ ೯Б౷ஷٰᐼᅰ ʘ฿ߒϵ΅ˢ

Hong Leong Company

(Malaysia) BerhadKWEK Leng Hai ெ˿ऎ

Personal ࡈɛ

420,500

420,500 2.61%

Guoco Group Limited

("GGL")

਷खණྠϞࠢʮ̡ €˜਷खණྠ™

KWEK Leng Hai ெ˿ऎ

TANG Hong Cheong ቎ဏ׹

Personal ࡈɛ

3,800,775

3,800,775 1.16%

Personal ࡈɛ

130,000

130,000 0.04%

(i)Long positions in shares/underlying shares (continued)

(i)

ٰ΅Ŋ޴ᗫٰ΅ʘλࡑ€ᚃ

Number of shares/ underlying shares held

Name of associated corporation ޴ᑌجྠΤ၈

Name of director ໨ԫ֑Τ

GuocoLand Limited

("GLL")

਷खגήପϞࠢʮ̡ €˜਷खגήପ™

Hong Leong Bank

Berhad

Hong Leong Financial

Group BerhadKWEK Leng Hai ெ˿ऎ

TANG Hong Cheong ቎ဏ׹

WHANG Sun Tze රɪࡪ

KWEK Leng Hai ெ˿ऎ

WHANG Sun Tze රɪࡪ

KWEK Leng Hai ெ˿ऎ

TANG Hong Cheong ቎ဏ׹

WHANG Sun Tze රɪࡪ

Nature of interest ᛆू׌ሯ

ܵϞٰ΅Ŋ ޴ᗫٰ΅ᅰͦ

Personal ࡈɛ

35,290,914

Personal 585,000 ࡈɛ

Family 66,600 ࢕ૄ

Personal ࡈɛ

5,510,000

Family ࢕ૄ

129,000

Personal ࡈɛ

2,526,000

Personal 174,146 ࡈɛ

Family 534,092 ࢕ૄ

Approximate percentage of total number of ordinary shares of associated corporation in issue

Ц޴ᑌجྠʊ

(i)Long positions in shares/underlying shares (continued)

(i)

ٰ΅Ŋ޴ᗫٰ΅ʘλࡑ€ᚃ

Number of shares/ underlying shares held

Name of associated corporation ޴ᑌجྠΤ၈

Name of director ໨ԫ֑Τ

Hong Leong Industries

Berhad

GuocoLand (Malaysia)

Berhad

Hume Industries

(Malaysia) Sdn BhdKWEK Leng Hai ெ˿ऎ

TANG Hong Cheong ቎ဏ׹

WHANG Sun Tze රɪࡪ

KWEK Leng Hai ெ˿ऎ

TANG Hong Cheong ቎ဏ׹

WHANG Sun Tze රɪࡪ

Nature of interest ᛆू׌ሯ

ܵϞٰ΅Ŋ ޴ᗫٰ΅ᅰͦ

Personal 190,000 ࡈɛ

Personal 300,000 ࡈɛ

Family 15,000 ࢕ૄ

Family 105,600 ࢕ૄ

Personal 226,800 ࡈɛ

Personal 195,000 ࡈɛ

Family 12,667 ࢕ૄ

Approximate percentage of total number of ordinary shares of associated corporation in issue

Ц޴ᑌجྠʊ

(i)Long positions in shares/underlying shares (continued)

(i)

ٰ΅Ŋ޴ᗫٰ΅ʘλࡑ€ᚃ

Number of shares/ underlying shares held

Name of associated corporation ޴ᑌجྠΤ၈

Name of director ໨ԫ֑Τ

GL LimitedMalaysian Pacific

Industries Berhad

The Rank Group PlcKWEK Leng Hai ெ˿ऎ

TANG Hong Cheong ቎ဏ׹

KWEK Leng Hai ெ˿ऎ

KWEK Leng Hai ெ˿ऎ

TANG Hong Cheong ቎ဏ׹

Nature of interest ᛆू׌ሯ

Approximate percentage of total number of ordinary shares of associated corporation in issue

Ц޴ᑌجྠʊ

Personal ࡈɛ

Personal ࡈɛ

Personal ࡈɛ

Personal ࡈɛ

Personal ࡈɛ

ܵϞٰ΅Ŋ ޴ᗫٰ΅ᅰͦ

2,500,000

1,026,209

300,000

200,000

71,250

(i)Long positions in shares/underlying shares (continued)

(i)

ٰ΅Ŋ޴ᗫٰ΅ʘλࡑ€ᚃ

Number of shares/ underlying shares held

Name of associated corporation ޴ᑌجྠΤ၈

Name of director ໨ԫ֑Τ

Hume Cement Industries

Berhad (formerly

known as "Hume

Industries Berhad")

("HCIB")

Hume Cement Industries

Berhad€ۃ၈˜Hume

Industries Berhad™ €˜HCIB™

Southern Steel Berhad

("SSB")

KWEK Leng Hai ெ˿ऎ

TANG Hong Cheong ቎ဏ׹

TANG Hong Cheong ቎ဏ׹

Nature of interest ᛆू׌ሯ

ܵϞٰ΅Ŋ ޴ᗫٰ΅ᅰͦ

Personal ࡈɛ

310,771

Personal 3,776,670 ࡈɛ

Family 26,199 ࢕ૄ

Personal 71,000 ࡈɛ

Approximate percentage of total number of ordinary shares of associated corporation in issue

Ц޴ᑌجྠʊ

(ii)Long positions in debentures

(ii)

වՎʘλࡑ

Name of associated corporation ޴ᑌجྠΤ၈

Name of director ໨ԫ֑Τ

Nature of interest ᛆू׌ሯ

Amount of debenturesheld

Note

වᛆᗇٙᅰᕘ ڝൗ

Total ᐼࠇ

MYR

MYR

৵ԸГԭʩ

৵ԸГԭʩ

HCIB

KWEK Leng Hai ெ˿ऎ

Personal ࡈɛ

73,900 (b) 73,900

TANG Hong Cheong ቎ဏ׹

Personal ࡈɛ

930,000 (b)

Family ࢕ૄ

7,000 937,000

Notes:

ڝൗj

• (a) The total interests of 585,000 shares/underlying shares

  comprised 345,000 ordinary shares of GLL and an

  outstanding option in respect of 240,000 underlying

  shares of GLL pursuant to an executive option scheme

  of a Hong Leong Group company.

  • (a) 585,000ٰٰ΅Ŋ޴ᗫٰ΅ʘᛆूᐼᕘ ܼ̍345,000ٰ਷खגήପ౷ஷٰʿ࣬ ኽÑᔮඤණྠʮ̡Б݁ɛࡰٰ΅Ⴉᒅ ᛆࠇྌהબʚ240,000ٰ਷खגήପ޴ ᗫٰ΅ʘ֠͊БԴٙႩᒅᛆf

• (b) Interests in 5-year 5% redeemable convertible unsecured loan stocks ("RCULS") issued by HCIB. The RCULS are convertible into ordinary shares of HCIB at the conversion price of MYR0.7 RCULS for 1 HCIB share.

  • (b) HCIB ೯Бٙ 5 ϋಂ 5 ᩶ࢹ̙ᛙΫ̙౬ ٰೌዄڭවᛆٰ€˜RCULS™ٙлࢹf RCULS̙ܲӊٰ0.7৵ԸГԭʩٙᔷ౬ ᄆᔷ౬މ1ٰHCIBٙ౷ஷٰf

• (c) The total interests of 310,771 shares/underlying shares comprised 205,200 ordinary shares of HCIB and a derivative interest of 105,571 underlying shares of HCIB through the conversion right under the RCULS.

  • (c) 310,771 ٰٰ΅Ŋ޴ᗫٰ΅ʘᛆूᐼ ᕘܼ̍ 205,200 ٰ HCIB ౷ஷٰʿீཀ RCULS ɨٙ౬ٰᛆᐏ੻ٙ 105,571 ٰ HCIB޴ᗫٰ΅ʘࠃ͛ᛆूf

• (d) The personal interests of 3,776,670 shares/underlying shares comprised 2,448,100 ordinary shares of HCIB and a derivative interest of 1,328,570 underlying shares of HCIB through the conversion right under the RCULS. The family interests of 26,199 shares/underlying shares comprised 16,200 ordinary shares of HCIB and a derivate interest of 9,999 underlying shares of HCIB through the conversion right under the RCULS.

• (d) 3,776,670 ٰٰ΅Ŋ޴ᗫٰ΅ʘࡈɛ ᛆूᐼᕘܼ̍ 2,448,100 ٰ HCIB ౷ஷ ٰʿீཀ RCULS ɨٙ౬ٰᛆᐏ੻ٙ 1,328,570 ٰ HCIB ޴ᗫٰ΅ʘࠃ͛ᛆ ूf26,199 ٰٰ΅Ŋ޴ᗫٰ΅ʘ࢕ૄ ᛆूᐼᕘܼ̍16,200ٰHCIB౷ஷٰʿ ீཀRCULSɨٙ౬ٰᛆᐏ੻ٙ9,999ٰ HCIB޴ᗫٰ΅ʘࠃ͛ᛆूf

DIRECTORS' INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES

(continued)

(B) Associated Corporations (continued)

໨ԫ׵ٰ΅e޴ᗫٰ΅ʿවՎʘᛆू €ᚃ

(B) ޴ᑌجྠ €ᚃ

Save as disclosed herein, none of the directors of the Company had any interests or short positions in any shares, underlying shares and debentures of the Company or any of its 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.

ৰ͉˖המᚣ٫̮d฿ೌ΂О͉ʮ̡໨ ԫ׵͉ʮ̡אՉ΂О޴ᑌجྠ€࣬ኽᗇՎ ʿಂ஬ૢԷୋXV௅ʘ່֛ኹϞ඲࣬ኽᗇ Վʿಂ஬ૢԷୋ352ૢ஝֛Ͼணʘ೮াΤ ̅ʕה༱ʘٰ΅אϞᗫٰ͉ʕʘ૱ࡑٰ ΅e޴ᗫٰ΅ʿවՎʿ࣬ኽᅺ๟ςۆ඲ ٝึ͉ʮ̡ʿᑌʹהʘᛆूf

SHARE OPTIONS

ٰ΅Ⴉᒅᛆ

Executive Share Option Scheme 2013 (the "ESOS 2013")

2013Б݁ɛࡰٰ΅Ⴉᒅᛆࠇྌ€˜2013 ٰ΅Ⴉᒅᛆࠇྌ™

As at 1 July 2020, there were no outstanding options pursuant to the ESOS 2013.

During the period, no share options were granted, vested, exercised, lapsed or cancelled under the ESOS 2013. Accordingly, there were no outstanding options at 31 December 2020.

׵ɚཧɚཧϋɖ˜ɓ˚d࣬ኽ2013ٰ΅Ⴉᒅ ᛆࠇྌdԨೌ֠͊БԴʘႩᒅᛆf ׵ಂʫdί2013ٰ΅ႩᒅᛆࠇྌɨԨೌՉ˼ ႩᒅᛆᐏᆽႩબ̈eᓥ᙮eБԴḛࣖא՟ ऊfΪϤd׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚dԨ ೌ֠͊БԴʘႩᒅᛆf

SUBSTANTIAL SHAREHOLDERS' INTERESTS

˴ࠅٰ؇ʘٰܵᛆू

As at 31 December 2020, the following shareholders (other than directors of the Company whose interests or short positions in the shares and underlying shares of the Company as disclosed above) had interests or short positions in the shares and underlying shares of the Company as recorded in the register required to be kept by the Company pursuant to Section 336 of the SFO:

׵ɚཧɚཧϋɤɚ˜ɧɤɓ˚d࣬ኽᗇՎʿಂ ஬ૢԷୋ336ૢ஝֛Ͼணʘ೮াΤ̅ʕה༱d ɨΐٰ؇€ৰɪ˖הࠑ͉ʮ̡໨ԫהܵϞ͉ʮ ̡ʘٰ΅אϞᗫٰ͉ʕʘ૱ࡑٰ΅ʿ޴ᗫٰ΅ ʘᛆूܵϞ͉ʮٰ̡΅אϞᗫٰ͉ʕʘ૱ࡑ ٰ΅ʿ޴ᗫٰ΅ʘᛆूj

QUEK Leng Chan ெ˿ᐆ

Hong Leong Company (Malaysia) Berhad ("HLCM")

HL Holdings Sdn Bhd ("HLH")

Hong Leong Investment Holdings Pte Limited ("HLIH")

Davos Investment Holdings Private Limited ("Davos")

KWEK Leng Kee

Note:

ڝൗj

The interests comprised (i) 140,008,659 ordinary shares in the Company held by GuoLine International Limited ("GIL"); (ii) 6,423,000 ordinary shares in the Company held by Richly Choice Development (PTC) Limited, a wholly-owned subsidiary of the Company; and (iii) 9,325,000 underlying shares of the Company of other unlisted derivatives held by Oceanease Limited.

༈ᛆूܼ̍(i) GuoLine International Limited€˜GIL™ܵϞ ׵͉ʮ̡140,008,659ٰ౷ஷٰʘᛆूi(ii)͉ʮ̡ʘΌ༟ ڝ᙮ʮ̡Richly Choice Development (PTC) LimitedܵϞ ׵͉ʮ̡ 6,423,000 ٰ౷ஷٰʘᛆूiʿ(iii) Oceanease LimitedீཀՉ˼ڢɪ̹ࠃ͛ʈՈܵϞ͉ʮ̡9,325,000ٰ ޴ᗫٰ΅ʘᛆूf

GIL was a wholly-owned subsidiary of GuoLine Capital Assets Limited ("GCA") which in turn was a wholly-owned subsidiary of HLCM. Oceanease Limited was a wholly-owned subsidiary of GuocoEquity Assets Limited which in turn was a wholly-owned subsidiary of Guoco Group Limited ("GGL"). GGL was 71.88% owned by GuoLine Overseas Limited ("GOL") which in turn was a wholly-owned subsidiary of GCA. By virtue of Section 316(2) of the SFO, HLCM was 49.11% owned by Mr. QUEK Leng Chan as to 2.43% under his personal name, 46.68% via HLH which was wholly-owned by him. HLIH held 34.49% interest in HLCM. Mr. KWEK Leng Kee held 41.92% interest in Davos which in turn held 33.59% interest in HLIH.

GIL މ GuoLine Capital Assets Limited€˜ GCA ™ʘΌ༟ ڝ᙮ʮ̡dܝ٫މ HLCM ʘΌ༟ڝ᙮ʮ̡fOceanease Limitedމ਷खٰ͉༟ପϞࠢʮ̡ʘΌ༟ڝ᙮ʮ̡dܝ٫ މ਷खණྠϞࠢʮ̡€˜਷खණྠ™ʘΌ༟ڝ᙮ʮ̡f਷ख ණྠʘ71.88%ᛆू͟GuoLine Overseas Limited€˜GOL™ ኹϞfGOLމGCAʘΌ༟ڝ᙮ʮ̡f࣬ኽᗇՎʿಂ஬ૢԷ ୋ316(2)ૢ஝֛dHLCMʘ49.11%ᛆूމெ˿ᐆ΋͛˸ӷ ɛΤ່ܵϞ2.43%d຾˼Ό༟ኹϞʘHLHܵϞ46.68%f HLIHܵϞHLCM 34.49%ʘᛆूfKWEK Leng Kee΋͛ܵ ϞDavos 41.92%ʘٰᛆϾDavosۆܵϞHLIH33.59%ʘٰ ᛆf

SUBSTANTIAL SHAREHOLDERS' INTERESTS (continued)

˴ࠅٰ؇ʘٰܵᛆू€ᚃ

All the interests disclosed under this section were long positions in the ordinary shares of the Company.

Save as disclosed herein, no other person (other than directors of the Company) has an interest or a short position in the shares and underlying shares as recorded in the register required to be kept by the Company pursuant to Section 336 of the SFO.

Ϥ௅΅מᚣʘהϞᛆूޫމܵϞ͉ʮ̡λࡑ౷ ஷٰٰ΅f ৰ͉˖המᚣ٫̮d࣬ኽᗇՎʿಂ஬ૢԷୋ 336ૢ஝֛Ͼணʘ೮া̅הা፽dԨೌՉ˼ɛ ɻ€͉ʮ̡໨ԫৰ̮ܵϞ͉ʮٰ̡΅אϞᗫٰ ͉ʕʘ૱ࡑٰ΅ʿ޴ᗫٰ΅ʘᛆूf

CORPORATE GOVERNANCE

Άุ၍ط

Corporate Governance Code

Άุ၍ط੬஝ςۆ

The Board of the Company has adopted a Code of Corporate Governance Practices (the "CGP Code"), which is based on the Corporate Governance Code set out in Appendix 14 (the "HKEx Code") to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

͉ʮ̡໨ԫึʊમॶɓࢁ˸࠰ಥᑌΥʹ׸הϞ ࠢʮ̡ᗇՎɪ̹஝ۆڝ፽14 €˜ಥʹהςۆ™ ʘࡡۆމ͉ʘΆุ၍ط੬஝ςۆ€˜Άุ၍طς ۆ™f

During the period, the Company has complied with the HKEx Code, save that non-executive directors are not appointed for a specific term. However, they are subject to retirement by rotation and re-election at the annual general meetings of the Company pursuant to the articles of association of the Company and the CGP Code. As such, the Company considers that such provisions are sufficient to meet the intent of the relevant provisions of the HKEx Code.

׵ಂʫd͉ʮ̡ɓٜୌΥಥʹהςۆdઓڢੂ Б໨ԫԨೌत֛΂ಂdШ־ഃ඲࣬ኽ͉ʮ̡ʘ ଡ଼ᔌ௝೻୚ۆʿΆุ၍طςۆ஝֛׵͉ʮٰ̡ ؇඄ϋ੬ึɪቃ࠽ѓৗʿᑐ፯ஹ΂fΪϤd͉ ʮ̡Ⴉމ༈ഃૢ˖ԑ˸ୌΥಥʹהςۆϞᗫૢ ˖ʘၚग़f

Model Code for Securities Transactions by Directors

໨ԫආБᗇՎʹ׸ʘᅺ๟ςۆ

The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules (the "Model Code") as the code of conduct regarding directors' securities transactions.

͉ʮ̡ʊમॶɪ̹஝ۆڝ፽ 10 ה༱ʘɪ̹೯ Бɛ໨ԫආБᗇՎʹ׸ٙᅺ๟ςۆ€˜ᅺ๟ς ۆ™dЪމ໨ԫආБᗇՎʹ׸ʘ዁ςςۆf

All directors of the Company, following specific enquiry by the Company, have confirmed that they have complied with the required standard set out in the Model Code throughout the period.

຾͉ʮ̡ΣהϞ໨ԫЪ̈ʘՈ᜗ፔ༔d־ഃᆽ ֛׵ಂʫɓٜ፭ςᅺ๟ςۆ஝֛ʘᅺ๟f

• 1. Mr. TAN Lim Heng, a non-executive director ("NED") of the Company, retired after the conclusion of the annual general meeting held on 11 November 2020.

  • 1. ௓؍ጳ΋͛׵ɚཧɚཧϋɤɓ˜ɤɓ˚ ᑘБʘٰ؇඄ϋ੬ึഐҼܝdৗ΂͉ʮ ̡ڢੂБ໨ԫ€˜ڢੂ໨™f

• 2. Mr. TANG Hong Cheong ("Mr. TANG"), a NED of the

• Company, retired with effect from 1 January 2021.

  • 2. ቎ဏ׹΋͛€˜቎΋͛™׵ɚཧɚɓϋɓ ˜ɓ˚ৎৗ΂͉ʮ̡ڢੂ໨f

• Mr. TANG has also retired from his position as the President & CEO of Guoco Group Limited ("GGL") and ceased to be executive director ("ED") of GGL, a company listed on the Stock Exchange of Hong Kong Limited, with effect from 1 January 2021.

  • ቎΋͛ʊ׵ɚཧɚɓϋɓ˜ɓ˚ৎৗ΂

    ɓගί࠰ಥᑌΥʹ׸הϞࠢʮ̡ɪ̹ٙ

    ਷खණྠϞࠢʮ̡€˜਷खණྠ™ʘᐼ൒

    ࡒБ݁ᐼ൒dԨʔΎዄ΂਷खණྠʘੂ

    Б໨ԫ€˜ੂБ໨ԫ™f

• 3. Mr. CHEW Seong Aun ("Mr. CHEW") has been appointed as NED of the Company with effect from 1 January 2021.

  • 3. մୂτ΋͛€˜մ΋͛™ʊ׵ɚཧɚɓϋ ɓ˜ɓ˚ৎᐏ։΂މ͉ʮ̡ڢੂ໨f

  Mr. CHEW has also been appointed as ED of GGL with

  effect from 19 November 2020.

մ΋͛ʊ׵ɚཧɚཧϋɤɓ˜ɤɘ˚ᐏ ։΂މ਷खණྠʘੂБ໨ԫf

PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SHARES

ᒅ൯ëਯאᛙΫ͉ʮ̡ʘɪ̹ᗇՎ

During the period, a wholly-owned subsidiary of the Company, as the trustee for a trust set up for the purpose of acquiring shares of the Company to satisfy the exercise of options which may be granted pursuant to the Executive Share Option Scheme adopted on 23 April 2013, purchased 756,000 shares of the Company on The Stock Exchange of Hong Kong Limited at a total consideration of HK$9,530,000.

׵ಂʫd͉ʮ̡ʘΌ༟ڝ᙮ʮ̡€Ъމɓධڦ ৄʘաৄɛd༈ڦৄɗމϗᒅ͉ʮ̡ʘٰ΅Ͼ ணͭdᘬ˸ᄵБ࣬ኽ͉ʮ̡׵ɚཧɓɧϋ̬˜ ɚɤɧ˚મॶʘБ݁ɛࡰٰ΅Ⴉᒅᛆࠇྌ̙ঐ બ̈ʘٰ΅ႩᒅᛆʘБԴί࠰ಥᑌΥʹ׸ה Ϟࠢʮ̡ᒅ൯756,000ٰ͉ʮٰ̡΅dᐼ˾ᄆ މಥ࿆9,530,000ʩf

Save as disclosed above, during the period, the Company did not redeem any of its listed shares. Neither did the Company nor any of its subsidiaries purchase or sell any of the Company's listed shares.

ৰɪ˖המᚣ̮d͉ʮ̡׵ಂʫ฿ೌᛙΫՉ΂ Оɪ̹ᗇՎdϾ͉ʮ̡אՉ˼΂Оڝ᙮ʮ̡ѩ ೌᒅ൯א̈ਯ΂О͉ʮ̡ʘɪ̹ᗇՎf

CLOSURE OF REGISTER OF MEMBERS

ᅲ৾፬ଣٰ΅ཀ˒೮া˓ᚃ

The register of members of the Company will be closed on Wednesday, 10 March 2021, on such date no transfer of shares will be registered. In order to qualify for the interim dividend, all share transfer documents accompanied by the relevant share certificates, must be lodged with the Company's Share Registrar and Transfer Office - Computershare Hong Kong Investor Services Limited at Rooms 1712-1716, 17/F, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong for registration not later than 4:30 p.m. on Tuesday, 9 March 2021.

͉ʮ̡ਗ਼׵ɚཧɚɓϋɧ˜ɤ˚݋ಂɧᅲ৾፬ ଣٰ΅ཀ˒೮া˓ᚃfν૧Υୌ༟ࣸᐏݼʕಂ ٰࢹdהϞٰ΅ཀ˒˖΁ஹΝϞᗫʘٰୃ̀඲ ׵ɚཧɚɓϋɧ˜ɘ˚݋ಂɚɨʹ̬ࣛɧɤʱ ۃ৔༺͉ʮ̡ʘٰ΅ཀ˒೮াஈķ࠰ಥʕ̯ᗇ Վ೮াϞࠢʮ̡dήѧމ࠰ಥᝄ˺ެΧɽ༸؇ 183໮Υձʕː17ᅽ1712Ї1716܃f

APPRECIATION

ߧᑽ

I would like to thank our management team and employees for their hard work and resilience amid a global slowdown and challenging business climate, and our Board of Directors for their counsel and unwavering support.

͉ɛহːชᑽ၍ଣྠඟʿ྇ࡰ׵Όଢ຾᏶׳ᇠ ʿุਕंࡉܿ኷ʕٙрɢʿ਺ܵd͵ชᑽ໨ԫ ึה౤ԶٙจԈʿɓ஫ٙ˕ܵf

My appreciation also goes to our customers, bankers, shareholders and all other stakeholders for their support and trust in us.

͉ɛ͵ชᑽ͉ණྠٙ܄˒eֻԸვБeٰ؇ʿ הϞՉ˼ܵ΅٫࿁Ңࡁٙ˕ܵʿڦ΂f

By Order of the Board

KWEK Leng Hai

Chairman

ו໨ԫึն ˴ࢩ ெ˿ऎ

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