FINANCIAL HIGHLIGHTS • Revenue for the Period amounted to HK$578.2 million, representing an increase of 24.2% from HK$465.7 million for the corresponding period in 2025. • Gross profit for the Period amounted to HK$135.7 million, representing an…
FINANCIAL HIGHLIGHTS
• Revenue for the Period amounted to HK$578.2 million, representing an increase of
24.2% from HK$465.7 million for the corresponding period in 2025.
• Gross profit for the Period amounted to HK$135.7 million, representing an increase
of 20.4% from HK$112.7 million for the corresponding period in 2025.
• Net profit for the Period amounted to HK$24.6 million, representing an increase
of 30.4% from HK$18.8 million for the corresponding period in 2025, primarily
attributable to the increase in revenue, as the global wig market maintained its
upward momentum underpinned by resilient consumer demand, successfully defying
the broader deceleration in global trade caused by tariff uncertainties and escalating
geopolitical tensions and the decrease in tax expenses during the Period.
• The Board has declared the payment of an interim dividend of HK$3.4 cents per
Share for the Period (30 June 2025: HK$2.0 cents per Share).
• The interim dividend payout ratio is 86.3% for the Period (2025: interim dividend
payout ratio: 67.6%).
– 2 –
INTERIM RESULTS
The board (the “Board”) of directors (the “Directors”) of Evergreen Products Group Limited
(the “Company”) hereby announces the unaudited condensed consolidated interim results of
the Company and its subsidiaries (collectively, the “Group”) for the six months ended 30 June
2026 (the “Period”) together with comparative figures for the corresponding period in 2025 as
set out below:
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
For the six months ended 30 June 2026
Six months ended 30 June
20262025
HK$’000HK$’000
Notes(unaudited)(unaudited)
Revenue3578,206465,699
Cost of sales(442,483)(352,955)
Gross profit135,723112,744
Other income2,8643,709
Other (losses) gains, net(2,659)4,546
Impairment losses recognised on trade
receivables under expected credit loss model,
net of reversal(108)–
Distribution and selling expenses(13,250)(13,897)
Administrative expenses(76,339)(64,153)
Other expenses(906)(377)
Finance costs(16,705)(17,574)
Profit before tax428,62024,998
Income tax expenses5(4,070)(6,167)
Profit for the period24,55018,831
Other comprehensive income (loss):
Item that may be reclassified subsequently to
profit or loss:
Exchange differences arising from translation of
foreign operations1,408(3,895)
Other comprehensive income (loss) for the
period1,408(3,895)
Total comprehensive income for the period25,95814,936
– 3 –
Six months ended 30 June
20262025
HK$’000HK$’000
Notes(unaudited)(unaudited)
Profit (Loss) for the period attributable to:
Owners of the Company27,21415,505
Non-controlling interests(2,664)3,326
24,55018,831
Total comprehensive income (loss)
attributable to:
Owners of the Company28,47011,775
Non-controlling interests(2,512)3,161
25,95814,936
Earnings per share attributable to owners
of the Company
– Basic and diluted (HK$)70.040.02
– 4 –
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 June 2026
30 June
2026
31 December
2025
HK$’000HK$’000
Notes(unaudited)(audited)
NON-CURRENT ASSETS
Property, plant and equipment8520,752504,926
Investment properties 15,43715,211
Financial assets at fair value through
profit or loss (“FVTPL”)45,40846,162
Non-current deposits92,72713,983
584,324580,282
CURRENT ASSETS
Inventories487,180510,805
Trade and other receivables9343,397321,254
Tax recoverable11,0859,471
Pledged bank deposits51,93859,298
Cash and cash equivalents129,25498,385
1,022,854999,213
CURRENT LIABILITIES
Trade and other payables10121,813155,514
Contract liabilities14,2686,122
Amount due to a related company9,72216,043
Amount due to a non-controlling shareholder of
a subsidiary2,4732,473
Tax payables13,09614,460
Secured bank and other borrowings11603,911551,036
Lease liabilities6,1962,356
771,479748,004
NET CURRENT ASSETS251,375251,209
TOTAL ASSETS LESS CURRENT
LIABILITIES835,699831,491
– 5 –
30 June
2026
31 December
2025
HK$’000HK$’000
Notes(unaudited)(audited)
CAPITAL AND RESERVES
Share capital48,86249,495
Reserves735,456729,821
Equity attributable to owners of the Company784,318779,316
Non-controlling interests(7,914)(5,402)
TOTAL EQUITY776,404773,914
NON-CURRENT LIABILITIES
Deferred tax liabilities8,7478,686
Secured bank and other borrowings1138,54238,961
Lease liabilities12,0069,930
59,29557,577
835,699831,491
– 6 –
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL
INFORMATION
For the six months ended 30 June 2026
- GENERAL INFORMATION AND BASIS OF PREPARATION
Evergreen Products Group Limited (the “Company”) is a public limited company incorporated in the
Cayman Islands and its shares are listed on The Stock Exchange of Hong Kong Limited (the “Stock
Exchange”). In the opinion of the directors of the Company, its immediate holding company is Evergreen
Enterprise Holdings Limited, a company which was incorporated in the British Virgin Islands (the “BVI”)
with limited liability, and its ultimate holding company is Golden Evergreen Limited (“GEL”), a company
incorporated in the BVI with limited liability. GEL is wholly owned by HSBC International Trustee
Limited, the trustee of the Felix Family Trust and CLC Family Trust (collectively, the “Trust”). The
beneficiaries and settlor of the Trust, among others, Chang Yoe Chong Felix and his family members, are
considered as the controlling shareholders of the Company.
The registered office of the Company is PO Box 472, Harbour Place, 2nd Floor, North Wing, 103 South
Church Street, George Town, Grand Cayman KY1-1106, Cayman Islands and the principal place of
business of the Company is 11th Floor, Chiap Luen Industrial Building, 30-32 Kung Yip Street, Kwai
Chung, New Territories, Hong Kong.
The Company is an investment holding company. The Company and its subsidiaries (hereinafter
collectively referred to as the “Group”) are principally engaged in the manufacturing and trading of hair
products.
The condensed consolidated interim financial information is presented in Hong Kong dollars (“HK$”),
rounded to the nearest thousand except when otherwise indicated. For the convenience of the financial
statements users, the consolidated financial statements are presented in HK$ as the Company’s shares are
listed on the Stock Exchange. The functional currency of the Company is the United States dollars (“US$”).
The condensed consolidated interim financial statements have been prepared in accordance with Hong
Kong Accounting Standard (“HKAS”) 34 “Interim Financial Reporting” as issued by the Hong Kong
Institute of Certified Public Accountants (the “HKICPA”) and the applicable disclosure requirements of
the Rules Governing the Listing of Securities on the Stock Exchange.
Preparation of the condensed consolidated interim financial information requires the directors of the
Company to make judgements, estimates and assumptions about the carrying amounts of assets and
liabilities that are not readily apparent from other sources. The estimates and associated assumptions are
based on historical experience and other factors that are considered to be relevant. Actual results may
differ from these estimates.
The condensed consolidated interim financial information includes an explanation of events and
transactions that are significant to an understanding of the changes in financial position and performance
of the Group since 31 December 2025 and therefore, do not include all of the information required for
full set of financial statements prepared in accordance with the HKFRS Accounting Standards, which
collective term includes all applicable individual Hong Kong Financial Reporting Standards, HKASs
and Interpretations issued by the HKICPA. They shall be read in conjunction with the Group’s annual
consolidated financial statements for the year ended 31 December 2025 (the “2025 Audited Financial
Statements”).
In preparing the condensed consolidated interim financial information, significant judgements made by the
directors of the Company in applying the Group’s accounting policies and the key sources of estimation
uncertainty are the same as those that applied in the 2025 Audited Financial Statements.
– 7 –
The condensed consolidated interim financial information is unaudited but has been reviewed by the
Company’s audit committee and the Company’s external auditor in accordance with Hong Kong Standard
on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent
Auditor of the Entity” as issued by the HKICPA.
2. PRINCIPAL ACCOUNTING POLICIES
The condensed consolidated interim financial information has been prepared on the historical cost basis
except for certain financial instruments and properties, which are measured at fair value or revalued
amounts, as appropriate.
The accounting policies and methods of computation used in the condensed consolidated interim financial
information for the six months ended 30 June 2026 are consistent with those followed in the preparation of
the 2025 Audited Financial Statements.
The adoption of the new/revised HKFRS Accounting Standards which are relevant to the Group and
effective for the current period does not have any significant impact on the Group’s results and financial
position for the current or prior periods and does not result in any significant change in accounting policies
of the Group.
At the date of authorisation of the condensed consolidated interim financial information, the Group has not
early adopted new/revised HKFRS Accounting Standards that have been issued but are not yet effective.
Except for HKFRS 18, the management of the Group does not anticipate that the adoption of the new/
revised HKFRS Accounting Standards in future reporting periods will have any material impact on the
financial performance and financial position of the Group.
HKFRS 18 replaces HKAS 1 Presentation of Financial Statements. HKFRS 18 retains numbers of
requirements of HKAS 1 and introduces the following new key requirements:
a. presentation of new defined subtotals in the statement of profit or loss and statement of
comprehensive income, i.e. operating profit and profit before financing and income taxes, and
classifications of income and expenses into operating, investing, financing, income taxes and
discontinued operations in the statement of profit or loss and statement of comprehensive income,
with some modifications for companies with specific business activities, e.g. banks, insurers and
investment property companies;
b. identification of management-defined performance measures (MPMs) which are defined as
subtotals of income and expenses used in public communications outside financial statements to
communicate management’s view of an aspect of the financial performance for the company as a
whole and are not listed or required by HKFRS Accounting Standards and disclosures about MPMs
in a single note to the financial statements; and
c. enhanced requirements for grouping (aggregation and disaggregation) of information in the primary
financial statements and information disclosed in the notes to the financial statements.
– 8 –
3. REVENUE AND SEGMENT INFORMATION
Information reported to the chief executive officer of the Company, being the chief operating decision
maker (“CODM”), for the purposes of resource allocation and performance assessment focuses on revenue
analysis by products including wigs, hair accessories and others, high-end human hair extensions and
Halloween products. No other discrete financial information is provided other than the profit for the period
of the Group as a whole. Accordingly, no further segment information is disclosed.
Disaggregation of revenue from contracts with customers within HKFRS 15
Disaggregation by major lines
Six months ended 30 June
20262025
HK$’000HK$’000
(unaudited)(unaudited)
Wigs, hair accessories and others518,917423,305
High-end human hair extensions36,47721,750
Halloween products22,81220,644
578,206465,699
Group revenue by location of delivery to customers
Six months ended 30 June
20262025
HK$’000HK$’000
(unaudited)(unaudited)
The United States of America (the “USA”)494,722421,506
Germany17,37110,309
The United Kingdom31,50614,746
Japan1,6392,065
The People’s Republic of China (the “PRC”)23,3788,439
Others9,5908,634
578,206465,699
All revenue is recognised at a point in time.
– 9 –
4. PROFIT BEFORE TAX
Profit before tax has been arrived at after charging (crediting) the following items:
Six months ended 30 June
20262025
HK$’000HK$’000
(unaudited)(unaudited)
Staff cost, including directors’ remuneration, salaries, wages,
allowance and other employee benefits227,231181,885
Retirement benefits scheme contributions2,2652,285
Total staff costs (charged to “Cost of sales”, “Administrative
expenses”, “Distribution and selling expenses” and “Inventories”,
as appropriate)229,496184,170
Other items:
Cost of inventories sold442,483352,955
Auditors’ remuneration1,3201,250
Depreciation (charged to “Cost of sales”, “Administrative
expenses”, “Distribution and selling expenses” and “Inventories”,
as appropriate)17,33417,288
Interest income(571)(1,205)
- INCOME TAX EXPENSES
Six months ended 30 June
20262025
HK$’000HK$’000
(unaudited)(unaudited)
The income tax expenses comprise:
Current tax:
Bangladesh4,1035,339
Other jurisdictions278
4,1305,347
Over-provision in prior years:
Other jurisdictions(60)(715)
4,0704,632
Deferred tax:
Origination and reversal of temporary differences–1,535
4,0706,167
– 10 –
6. DIVIDENDS
During the six months ended 30 June 2026, a final dividend of HK$2.7 cents per share (2025: HK$2.8
cents per share in respect of the year ended 31 December 2024) in respect of the year ended 31 December
2025 was declared and paid to the owners of the Company. The aggregate amount of the final dividend
declared and paid amounted to approximately HK$16,957,000 (2025: HK$18,107,000).
Subsequent to the end of the current interim period, the directors of the Group have determined that an
interim dividend of HK$3.4 cents per share amounting to approximately HK$21,178,000 in aggregate will
be paid to owners of the Company whose names appear on the register of members of the Company on 11
September 2026.
7. EARNINGS PER SHARE
The calculation of the basic and diluted earnings per share attributable to the owners of the Company is
based on the following data:
Six months ended 30 June
20262025
HK$’000HK$’000
(unaudited)(unaudited)
Profit attributable to owners of the Company:
Profit for the purpose of calculating basic and
diluted earnings per share27,21415,505
Six months ended 30 June
20262025
’000’000
(unaudited)(unaudited)
Number of shares:
Weighted average number of ordinary shares for the purpose of
calculating basic and diluted earnings per share630,087644,645
The weighted average number of ordinary shares for the purpose of calculating basic and diluted earnings
per share has been determined based on the effect of shares repurchased.
There were no dilutive potential ordinary shares in issue during the six months ended 30 June 2026 and
2025, and therefore, diluted earnings per share is the same as the basic earnings per share.
– 11 –
8. PROPERTY, PLANT AND EQUIPMENT
During the six months ended 30 June 2026, the Group acquired certain property, plant and equipment of
approximately HK$34,078,000 (30 June 2025: HK$16,614,000) and disposed of certain property, plant
and equipment with a carrying amount of approximately HK$432,000 (30 June 2025: HK$Nil).
During the six months ended 30 June 2026 and 2025, in the opinion of the directors of the Company,
no revaluation surplus or deficit has been recognised as the revalued amounts in relation to the Group’s
industrial buildings, offices and car parks that are carried at revalued amount because the revalued
amounts do not differ significantly from their respective estimated fair values.
During the six months ended 30 June 2026, the Group entered into new lease agreements with lease term
of 2 to 10 years (30 June 2025: entered into a new lease agreement with lease term of 2 to 5 years). The
Group is required to make fixed monthly payments during the contract period. At lease commencement
date, or effective date of lease modification, the Group recognised right-of-use assets and lease liabilities
of approximately HK$8,028,000 (30 June 2025: HK$6,200,000).
9. TRADE AND OTHER RECEIVABLES
30 June
2026
31 December
2025
HK$’000HK$’000
(unaudited)(audited)
Trade receivables from third parties269,937249,240
Less: Loss allowance(2,141)(2,033)
267,796247,207
Other receivables17,22915,737
Other tax receivables1,9211,359
Prepayments23,86924,730
Deposits paid to suppliers32,58232,221
Deposits for acquisition of property, plant and equipment1,43413,015
Property rental deposits1,293968
346,124335,237
Analysis for reporting purpose as:
Non-current assets2,72713,983
Current assets343,397321,254
346,124335,237
The Group normally allows a credit period of 30 to 90 days (31 December 2025: 30 to 90 days) to its
customers. A longer credit period may be granted to large or long-established customers with good
payment history.
– 12 –
The following is the ageing analysis of trade receivables, net of loss allowance, presented based on the
invoice date, which approximates the respective revenue recognition dates.
30 June
2026
31 December
2025
HK$’000HK$’000
(unaudited)(audited)
0 – 60 days193,112172,372
61 – 90 days45,73538,865
91 – 120 days4,78111,757
Over 120 days24,16824,213
267,796247,207
- TRADE AND OTHER PAYABLES
30 June
2026
31 December
2025
HK$’000HK$’000
(unaudited)(audited)
Trade payables59,33773,552
Accrued staff costs23,07141,781
Other employee liabilities 10,91113,622
Accruals and other payables28,49426,559
121,813155,514
The following is the ageing analysis of trade payables presented based on invoice date.
30 June
2026
31 December
2025
HK$’000HK$’000
(unaudited)(audited)
0–60 days36,91630,291
61–120 days142830
Over 120 days (Note)22,27942,431
59,33773,552
Note: During the year ended 31 December 2023, certain suppliers had initiated lawsuits against Evergreen
Products Factory (YZ) Co. Ltd (“Evergreen (YZ)”), a wholly-owned subsidiary of the Company in
the PRC to demand immediate settlement of trade payables with a carrying amount of approximately
RMB30,826,000 (equivalent to approximately HK$33,495,000) plus interest for late payment. The
People’s Court in the PRC, at second-trial instance, ruled that Evergreen (YZ) was required to pay
all outstanding trade payables and related interest for late payment, and certain right-of-use assets
and property, plant and equipment were frozen (the “2023 Judgement”).
– 13 –
At 31 December 2025, the carrying amount of trade payables and related interest for late payment
amounted to approximately RMB26,395,000 (equivalent to approximately HK$28,681,000) and
RMB3,611,000 (equivalent to approximately HK$3,923,000), respectively.
At 31 December 2025, the carrying amounts of the right-of-use assets and other property, plant and
equipment being frozen amounted to approximately RMB4,132,000 (equivalent to approximately
HK$4,381,000) and approximately RMB1,952,000 (equivalent to approximately HK$2,070,000)
respectively.
During the six months ended 30 June 2026, the People’s Court in the PRC accepted newly
discovered evidence in relation to claims brought by three suppliers (the “Three Suppliers”) and
determined that the 2023 Judgement in respect of the Three Suppliers should be subject to retrial.
Accordingly, the People’s Court in the PRC issued a retrial ruling and suspended the enforcement of
the original judgments pending the outcome of the retrial proceedings. As a result, the enforcement
actions previously commenced against certain assets of Evergreen (YZ) were suspended during the
retrial process.
The management of the Group, after consideration of the grounds set out in the retrial ruling, the
newly discovered evidence and the legal opinion obtained from the Group’s PRC legal advisor, is of
the view that the Group has valid and reasonable grounds to defend the claims brought by the Three
Suppliers and that the likelihood of an outflow of economic benefits to settle the related obligations is
remote.
Accordingly, the Group reversed the trade payables and accrued interest relating to the Three
Suppliers, and recognised other receivables for seeking the recovery of assets realised through
enforcement proceedings under 2023 Judgement in prior years, amounting to approximately
RMB11,059,000 (equivalent to approximately HK$11,926,000), RMB1,992,000 (equivalent to
approximately HK$2,220,000), and RMB2,697,000 (equivalent to approximately HK$2,908,000),
respectively, at 30 June 2026 and credited the corresponding amounts to “Cost of sales”, during the
six months ended 30 June 2026.
At 30 June 2026, the carrying amounts of trade payables and related interest for late payment were
approximately RMB15,336,000 (equivalent to approximately HK$16,755,000) and approximately
RMB2,021,000 (equivalent to approximately HK$2,151,000), respectively. The carrying amounts
of the right-of-use assets and other property, plant and equipment being frozen were approximately
RMB4,127,000 (equivalent to approximately HK$4,762,000) and approximately RMB1,855,000
(equivalent to approximately HK$2,141,000), respectively.
11. SECURED BANK AND OTHER BORROWINGS
30 June
2026
31 December
2025
HK$’000HK$’000
(unaudited)(audited)
Secured:
Bank borrowings522,166488,277
Bank borrowings under supplier financing arrangement83,55682,196
Other borrowings9,20017,560
Bank overdrafts27,5311,964
642,453589,997
– 14 –
30 June
2026
31 December
2025
HK$’000HK$’000
(unaudited)(audited)
Analysis for reporting purposes as:
Non-current38,54238,961
Current603,911551,036
642,453589,997
The Group’s bank borrowings arranged at floating rates are with average effective interest rates ranging
from 2.75% to 7.68% (31 December 2025: 3.25% to 8.20%) per annum. The bank borrowings arranged
at fixed rate bear interest rates ranging from 0.90% to 4.25% (31 December 2025: 0.90% to 4.25%) per
annum.
The other borrowings carry interest at Hong Kong Interbank Offered Rate (“HIBOR”) plus 1.5% (31
December 2025: HIBOR plus 1.5%) per annum and were secured by the Group’s bank deposits of
approximately HK$9,700,000 (31 December 2025: HK$6,700,000).
At 30 June 2026 and 31 December 2025, the Group’s banking facilities were secured by:
(a) pledge of the Group’s bank deposits of approximately HK$42,238,000 (31 December 2025:
HK$52,598,000);
(b) the Group’s land and buildings included in property, plant and equipment and the Group’s car park
located in Hong Kong included in investment properties of approximately HK$48,342,000 and
HK$1,000,000 (31 December 2025: HK$49,300,000 and HK$1,000,000), respectively;
(c) the Group’s land and buildings located in the USA and the PRC of approximately HK$27,550,000
(31 December 2025: HK$27,201,000);
(d) investment properties located in the PRC of approximately HK$4,714,000 (31 December 2025:
HK$4,881,000);
(e) negative pledge on the assets of certain subsidiaries in the PRC and Bangladesh; and
(f) certain life insurance contracts classified as financial assets at FVTPL of the Group of
approximately HK$32,762,000 (31 December 2025: HK$37,988,000).
Loan covenants
In respect of the bank and other borrowings with a carrying amount of approximately HK$176,441,000
at 30 June 2026 (31 December 2025: HK$160,101,000), in addition to certain financial and non-financial
covenants commonly found in bank lending arrangements, the Group is required to comply with the
following key financial covenants throughout the continuance of the relevant loan and/or as long as the
bank and other borrowings are outstanding:
(i) the consolidated tangible net worth at any time shall not be less than HK$700,000,000;
(ii) the consolidated bank borrowings less pledged bank deposits and bank balances and cash shall not
be more than HK$650,000,000; and
– 15 –
(iii) the ratio of the consolidated net profits before interest, taxation, depreciation and amortisation and
bank balances and cash in respect of any relevant period to the interests and principal repayment of
bank borrowings of that relevant period shall not be less than 1:1.
The management of the Group regularly monitors its compliance with these covenants. As long as the
Group remains in compliance with the covenants, the related bank borrowings are not considered as
repayable on demand.
At 31 December 2025, the management of the Group identified that certain financial ratios under certain
bank facilities were unable to be met and such potential breaches of financial covenants may cause
the relevant bank borrowings of approximately HK$65,000,000, which have already been classified as
current liabilities pursuant to the demand clause, to become immediately due and payable. Following
the identification of the potential breach of covenants, the management of the Group entered into
communication with the related banks and has applied for waivers in respect of the potential breaches of
certain financial ratios.
During the six months ended 30 June 2026, the relevant banks granted waivers in respect of the potential
covenant breaches. At 30 June 2026, the Group is in the process of negotiating with the relevant banks in
relation to bank borrowings of approximately HK$52,500,000 to revise the applicable financial covenant
requirements. Subsequent to the reporting date and up to the date of authorisation of the condensed
consolidated interim financial statements, such negotiations remain ongoing and the relevant banks have
not made any demand for immediate repayment.
– 16 –
MANAGEMENT DISCUSSION AND ANALYSIS
BUSINESS REVIEW
While global trade growth decelerated due to tariff uncertainties and escalating geopolitical
tensions, the global wig market maintained its upward momentum, underpinned by resilient
consumer demand during the Period.
Capitalizing on this industry-wide structural expansion, the Group’s customers sustained
their business growth year-on-year, demonstrating the Group’s strong agility in adapting to
evolving consumer preferences.
The revenue of the Group amounted to HK$578.2 million for the Period, representing an
increase of approximately 24.2% as compared to the corresponding period in 2025. The sales
of wigs and braid products with lower margin registered robust growth, while the sales of
human hair extension products with higher margin delivered a steady rebound. The gross
profit margin for the Period softened to 23.5% as compared with 24.2% for the corresponding
period of 2025, primarily attributable to higher labour costs incurred to fulfill the surging
sales orders. Net profit margin for the Period slightly increased to 4.3% from 4.0% in the
corresponding period of 2025, largely reflecting the growth in revenue, alongside a decline in
tax expenses.
OUTLOOK
To navigate ongoing uncertainties in global trade policies, the Group has remained committed
to its growth strategies while closely monitoring market shifts and operating conditions to
proactively mitigate potential risks to the Group.
The Group will intensify operational efficiency initiatives to enhance financial performance.
Key growth drivers include expanding our digital footprint by establishing more online stores
on major cross-border e-commerce platforms, and scaling up the core sales team to capture
both existing and untapped markets. Amid a complex trade landscape, the Board maintains
full confidence in the Group’s resilience, expecting strong order demand for our core products
toward the end of the year. Moving forward, we remain dedicated to our core business,
adapting our mid-to-long-term strategies to maximize shareholder value.
– 17 –
FINANCIAL REVIEW
During the Period, the Group’s financial results improved compared to the corresponding
period in 2025. This growth was primarily driven by a rise in revenue, as the global wig
market maintained its upward momentum underpinned by resilient consumer demand,
successfully defying the broader deceleration in global trade caused by tariff uncertainties and
escalating geopolitical tensions.
REVENUE
Revenue of the Group is mainly generated from the manufacturing and sales of its products.
Revenue represents the amount received by the Group and the receivables from the sales of
its products, net of any discounts and returns. The Group derives revenue from three principal
product segments: (i) wigs, hair accessories and others; (ii) high-end human hair extensions
(that is, human hair goods used for adding hair length and/or hair volume with an average
retail price of over US$5 per gram); and (iii) Halloween products.
During the Period, the Group’s revenue amounted to HK$578.2 million, representing
an increase of HK$112.5 million, or 24.2%, as compared to HK$465.7 million for the
corresponding period in 2025. The increase was primarily due to the fact that the market
demand of the wigs and braid products with lower margin registered robust growth while the
sales of human hair extension products with higher margin delivered a steady rebound. During
the Period, the revenue generated from hair goods made at the Bangladesh factory accounted
for 98.3% of the Group’s total revenue as compared to 99.2% for the corresponding period in
2025.
The US remained as the Group’s principal market during the Period with revenue contribution
accounting for 85.6% of the Group’s total revenue during the Period as compared to 90.5%
for the corresponding period in 2025. In terms of product segment, wigs, hair accessories and
others remained as the Group’s key product segment accounting for 89.7% of its total revenue
during the Period as compared to 90.9% for the corresponding period in 2025.
Wigs, hair accessories and others. Revenue from wigs, hair accessories and others increased
by HK$95.6 million, or 22.6%, from HK$423.3 million for the six months ended 30 June 2025
to HK$518.9 million for the Period. The increase was mainly attributable to the growth in
sales of wig and braid items.
High-end human hair extensions. Revenue from high-end human hair extensions increased by
HK$14.7 million, or 67.7%, from HK$21.8 million for the six months ended 30 June 2025 to
HK$36.5 million for the Period. The improvement was driven primarily by the progressive
recovery in customer sales demand.
– 18 –
Halloween products. Revenue from Halloween products increased by HK$2.2 million, or
10.5%, from HK$20.6 million for the six months ended 30 June 2025 to HK$22.8 million for
the Period, primarily attributable to steady sales volume from customers.
Cost of Goods Sold
The Group’s cost of goods sold increased by HK$89.5 million, or 25.4%, from HK$353.0
million for the six months ended 30 June 2025 to HK$442.5 million for the Period. The
increase was in line with the increase in revenue during the Period.
Wigs, hair accessories and others. Cost of goods sold for wigs, hair accessories and others
increased by HK$76.4 million, or 23.5%, from HK$325.8 million for the six months ended 30
June 2025 to HK$402.2 million for the Period. The increase was in line with the increase in
revenue from wigs, hair accessories and others during the Period.
High-end human hair extensions. Cost of goods sold for high-end human hair extensions
increased by HK$10.6 million, or 75.0%, from HK$14.1 million for the six months ended 30
June 2025 to HK$24.7 million for the Period. The increase was in line with the increase in
revenue from high-end human hair extensions products during the Period.
Halloween products. Cost of goods sold for Halloween products increased by HK$2.5 million,
or 19.3%, from HK$13.1 million for the six months ended 30 June 2025 to HK$15.6 million
for the Period. The increase was in line with the increase in revenue from Halloween products
during the Period.
Gross Profit
During the Period, the Group’s gross profit amounted to HK$135.7 million, representing
an increase of HK$23.0 million, or 20.4%, as compared to HK$112.7 million for the
corresponding period in 2025. The gross profit increased primarily due to a rise in revenue
for the Period, while the global wig market maintained its upward momentum underpinned
by resilient consumer demand, successfully defying the broader deceleration in global trade
caused by tariff uncertainties and escalating geopolitical tensions. During the Period, the
Group’s gross profit margin was 23.5%, representing a decrease of 0.7% from 24.2% for the
corresponding period in 2025.
Wigs, hair accessories and others. Gross profit for wigs, hair accessories and others increased
by HK$19.2 million, or 19.7%, from HK$97.5 million for the six months ended 30 June
2025 to HK$116.7 million for the Period. Gross profit margin for wigs, hair accessories and
others decreased from 23.0% for the six months ended 30 June 2025 to 22.5% for the Period,
primarily due to an increase in total production overheads for the Period.
– 19 –
High-end human hair extensions. Gross profit for high-end human hair extensions increased
by HK$4.1 million, or 54.3%, from HK$7.6 million for the six months ended 30 June 2025
to HK$11.8 million for the Period. Gross profit margin for high-end human hair extensions
decreased from 35.1% for the six months ended 30 June 2025 to 32.3% for the Period,
primarily due to an increase in total production costs of human hair extension products during
the Period.
Halloween products. Gross profit for Halloween products decreased by HK$0.4 million, or
4.6%, from HK$7.6 million for the six months ended 30 June 2025 to HK$7.2 million for
the Period. Gross profit margin for Halloween products decreased from 36.6% for the six
months ended 30 June 2025 to 31.6% for the Period, primarily due to higher products costs of
Halloween products during the Period.
Other Income
Other income decreased by HK$0.8 million, or 22.8%, from HK$3.7 million for the six
months ended 30 June 2025 to HK$2.9 million for the Period, primarily due to a decrease in
the bank interest income during the Period.
Other (Losses) Gains, net
Other (losses) gains, net decreased by HK$7.2 million, or 158.5%, from gains of HK$4.5
million for the six months ended 30 June 2025 to losses of HK$2.7 million for the Period.
The other gains and losses primarily comprised HK$0.2 million from the fair value gain on
financial assets at fair value through profit or loss and HK$4.2 million from distribution
income arising from the fair value change of an investment fund, offset by a loss of HK$6.7
million from foreign currency conversion during the Period.
Impairment Losses Recognised on Trade Receivables under Expected Credit Loss Model,
Net of Reversal
During the Period, the Group provided an impairment allowance of HK$0.1 million in respect
of trade receivables (30 June 2025: Nil).
Distribution and Selling Expenses
Distribution and selling expenses decreased by HK$0.6 million, or 4.7%, from HK$13.9
million for the six months ended 30 June 2025 to HK$13.3 million for the Period, primarily
due to a decrease in advertisement and commission expenses during the Period.
– 20 –
Administrative Expenses
Administrative expenses increased by HK$12.2 million, or 19.0%, from HK$64.2 million
for the six months ended 30 June 2025 to HK$76.3 million for the Period, primarily due to
an increase in salaries and staff benefit, business traveling and professional fees during the
Period.
Other Expenses
Other expenses increased by HK$0.5 million, or 140.3%, from HK$0.4 million for the six
months ended 30 June 2025 to HK$0.9 million for the Period, primarily due to an increase in
donations made during the Period.
Finance Costs
Finance costs decreased by HK$0.9 million, or 4.9%, from HK$17.6 million for the six
months ended 30 June 2025 to HK$16.7 million during the Period, it was mainly due to a
slowdown in interest rates.
Taxation
Income tax expenses of the Group decreased by approximately HK$2.1 million, or 34.0%,
from taxation of HK$6.2 million for the six months ended 30 June 2025 (including deferred
taxation in the amount of HK$1.5 million) to taxation of approximately HK$4.1 million
(deferred taxation in the amount of HK$Nil) for the Period.
Net Profit
The Group’s net profit for the Period was HK$24.6 million, representing an increase of
HK$5.7 million, or 30.4%, as compared to HK$18.8 million for the corresponding period in
2025, which was primarily attributable to the increase in revenue, as the global wig market
maintained its upward momentum underpinned by resilient consumer demand, successfully
defying the broader deceleration in global trade caused by tariff uncertainties and escalating
geopolitical tensions and the decrease in tax expenses during the Period.
LIQUIDITY AND FINANCIAL RESOURCES
The Group’s cash and bank balances increased by HK$30.9 million or 31.4% from HK$98.4
million as at 31 December 2025 to HK$129.3 million as at 30 June 2026. The increase in cash
and bank balances as at 30 June 2026 was primarily due to an increase in the bank borrowings
during the Period. The Group’s pledged bank deposits decreased by HK$7.4 million or 12.4%
from HK$59.3 million as at 31 December 2025 to HK$51.9 million as at 30 June 2026. The
decrease in pledged bank deposits was mainly due to the repayment of bank borrowings
during the Period.
– 21 –
The Group’s trade and other receivables increased by HK$10.9 million or 3.3% from
HK$335.2 million as at 31 December 2025 to HK$346.1 million as at 30 June 2026. The
increase was primarily due to the increase in the trade receivables resulting from the growth in
sales shipments during the Period.
Borrowings and Gearing Ratio
As at 30 June 2026, the Group’s banking facilities amounted to HK$1,023.6 million, of which
HK$256.3 million remained unutilised. As at 30 June 2026, the gearing ratio of the Group,
which is equivalent to total interest-bearing debt (including secured bank borrowings and
lease liabilities) divided by total equity, was 84.2% as compared to 77.2% as at 31 December
2025. The Group considered that it has sufficient financial resources to meet its commitments
and working capital requirements.
Capital Expenditure and Capital Commitments
During the Period, the Group spent approximately HK$34.1 million on additions to fixed
assets as compared to HK$16.6 million for the corresponding period in 2025, mainly for the
purpose of maintaining its manufacturing capabilities in Bangladesh. As at 30 June 2026, the
Group did not have any capital commitments in respect of property, plant and equipment (31
December 2025: HK$2.6 million).
Foreign Exchange Risk
The Group has sales and purchases denominated in foreign currencies, such as the United
States dollars and Renminbi, which expose the Group to foreign currency risk. The Group
mainly operates in the People’s Republic of China (“PRC”) and Bangladesh where its
operating expenses are denominated in Renminbi and Bangladeshi Taka, respectively, while
the majority of the Group’s sales are settled in United States dollars. With United States
dollars being the main foreign currency used in the operations in Bangladesh and Hong
Kong, the use of United States dollars by the Group has remained substantial during the
Period. However, the Board considers that the Group is exposed to minimal currency risk as
Hong Kong dollars are pegged to United States dollars. The Group estimated that any 1%
appreciation of Bangladeshi Taka or Renminbi is not expected to have a material impact on
the Group’s gross profit margin.
As at 30 June 2026, the Group did not have any outstanding foreign currency forward
contracts to buy United States dollars to hedge against any fluctuation in the exchange rate of
United States dollars (31 December 2025: nil).
Contingent Liabilities
As at 30 June 2026, the Group did not have any material contingent liabilities (31 December
2025: nil).
– 22 –
Pledge of Assets
As at 30 June 2026, the Group’s banking facilities were secured by:
(a) pledge of the Group’s bank deposits of approximately HK$42.2 million (31 December
2025: HK$52.6 million);
(b) the Group’s land and buildings included in property, plant and equipment and
the Group’s car park located in Hong Kong included in investment properties of
approximately HK$48.3 million and HK$1.0 million (31 December 2025: HK$49.3
million and HK$1.0 million), respectively;
(c) the Group’s land and buildings located in the USA and the PRC of approximately
HK$27.6 million (31 December 2025: HK$27.2 million);
(d) investment properties located in the PRC of approximately HK$4.7 million (31
December 2025: HK$4.9 million);
(e) negative pledge on the assets of certain subsidiaries in the PRC and Bangladesh; and
(f) certain life insurance contracts classified as financial assets at FVTPL of the Group of
approximately HK$32.8 million (2025: HK$38.0 million).
The other borrowings were secured by the Group’s bank deposits of approximately HK$9.7
million (31 December 2025: HK$6.7 million).
Employees and Remuneration Policies
As at 30 June 2026, the Group employed a total of 38,668 employees, as compared to 23,692
employees as at 30 June 2025.
Total employee expenditures during the Period amounted to HK$229.5 million as compared
to HK$184.2 million for the corresponding period in 2025. The Group’s remuneration policy
has remained unchanged since the date of the Company’s annual report for the year ended
31 December 2025. The Group operates a defined contribution retirement scheme under the
Mandatory Provident Fund Schemes Ordinance (Chapter 485 of the Laws of Hong Kong) for
all qualified employees. Employees of the Group’s factories in the PRC are members of a
state-managed retirement benefit plan operated by the government of the PRC. For employees
in Bangladesh, the Group is currently not subject to any compulsory social insurance
contribution, but they are covered by a self-managed provident fund operated by respective
subsidiaries of the Group in Bangladesh.
– 23 –
SHARE OPTION SCHEME
On 19 June 2017, a share option scheme was adopted by the Company, whereby the Board
may, at its absolute discretion and on such terms as it may think fit, grant any employee (full-
time or part-time), director, consultant or adviser of the Group, or any substantial shareholder
of the Group, or any distributor, contractor, supplier, agent, customer, business partner or
service provider of the Group, options to subscribe for the ordinary shares of the Company (the
“Shares”).
As at 30 June 2026, no option has been granted or agreed to be granted under the share option
scheme.
As at 1 January 2026 and 30 June 2026, the total number of options available for grant under
the share option scheme was 61,500,000.
SIGNIFICANT INVESTMENTS HELD, MATERIAL ACQUISITIONS AND
DISPOSALS, AND FUTURE PLANS FOR MATERIAL INVESTMENTS OR CAPITAL
ASSETS
Save as disclosed in this announcement, (i) there were no significant investments held as at
30 June 2026, nor were there any material acquisitions or disposals of subsidiaries, associates
and joint ventures during the Period; and (ii) no plans have been authorised by the Board for
any material investments or additions of capital assets as at 30 June 2026.
IMPORTANT EVENTS AFFECTING THE GROUP SINCE 30 JUNE 2026
Save as disclosed in this announcement, there were no important events affecting the Group
which occurred after 30 June 2026 and up to the date of this announcement.
INTERIM DIVIDEND
The Board has declared the payment of an interim dividend of HK$3.4 cents per Share for
the Period (30 June 2025: declared an interim dividend of HK$2.0 cents per Share), totalling
approximately HK$21.2 million based on a total of 622,892,000 Shares in issue as at the date
of this announcement.
The interim dividend payout ratio is 86.3% for the Period (2025: interim dividend payout
ratio: 67.6%).
The interim dividend will be payable on Wednesday, 23 September 2026 to the shareholders
of the Company whose names appear on the register of members of the Company on Friday,
11 September 2026.
– 24 –
CLOSURE OF REGISTER OF MEMBERS
For determining shareholders’ entitlement to the interim dividend, the register of members
of the Company will be closed from Wednesday, 9 September 2026 to Friday, 11 September
2026, both days inclusive, during which period no transfer of Shares will be registered. In
order to qualify for the interim dividend, all transfer of Shares accompanied by the relevant
share certificates must be lodged with the Company’s branch share registrar in Hong Kong,
Tricor Investor Services Limited, at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong
Kong, for registration not later than 4:30 p.m. on Tuesday, 8 September 2026.
PURCHASE, SALE OR REDEMPTION OF THE COMPANY’S LISTED SECURITIES
During the Period, the Company repurchased an aggregate of 13,290,000 Shares for an
aggregate consideration of approximately HK$6.5 million (before expenses) on the Stock
Exchange. Of these, 8,136,000 Shares were subsequently cancelled. As at 30 June 2026,
5,154,000 Shares were repurchased Shares pending cancellation and subsequently cancelled
in July 2026 and the total number of Shares in issue was 628,046,000. Details of the Shares
repurchased are as follows:
Month of
repurchase
Number of
Shares
repurchased
Highest
price paid
per share
Lowest
price paid
per share
Aggregate
consideration
paid
HK$HK$HK$ in million
January 20266,078,0000.520.523.1
May 20262,058,0000.470.461.0
June 20265,154,0000.460.4552.4
13,290,0006.5
The Directors were of the view that the above Shares repurchase would lead to an
enhancement of the net assets and/or earnings per Share and benefit the Company and the
shareholders. Save as disclosed above, neither the Company nor any of its subsidiaries
purchased, sold or redeemed any of the Company’s listed securities during the Period.
The Company did not hold or sell any treasury shares during the Period.
COMPLIANCE WITH CORPORATE GOVERNANCE CODE
The Company is committed to maintaining a high standard of corporate governance practices.
The Board believes that good corporate governance standards are essential in providing a
framework for the Group to safeguard the interests of shareholders, enhance corporate value,
formulate its business strategies and policies, and enhance its transparency and accountability.
– 25 –
The Company has adopted the principles as set out in the Corporate Governance Code (the “CG
Code”) contained in Appendix C1 to the Rules Governing the Listing of Securities on The
Stock Exchange of Hong Kong Limited (the “Listing Rules”). The Board is of the view that
the Company has complied with all the code provisions as set out in the CG Code throughout
the Period, save and except for code provision C.2.1, which states that the roles of chairman
and chief executive should be separate and should not be performed by the same individual,
details of which are set out below:
Pursuant to code provision C.2.1 of the CG Code, the responsibilities of the chairman and
the chief executive officer should be separate and should not be performed by the same
individual. However, Mr. Chang Yoe Chong Felix, an executive Director, currently performs
these two roles in the Company. Given the current scale of the Company’s operations and
management structure, the Company considers that entrusting Mr. Chang, who has been the
Company’s key leadership figure and chiefly responsible for business strategy, decisions and
operations, to perform both the functions of the chairman and chief executive officer of the
Company is appropriate. The Board believes that vesting the roles of both chairman and chief
executive officer in the same person has the benefit of ensuring consistent leadership within
the Group and enables more effective and efficient overall strategic planning for the Group.
The Board considers that the balance of power and authority for the present arrangement will
not be impaired considering the background and experience of the Directors and the number of
independent non-executive Directors on the Board and this structure will enable the Company
to make and implement decisions promptly and effectively.
COMPLIANCE WITH MODEL CODE FOR SECURITIES TRANSACTIONS BY
DIRECTORS
The Company has adopted the Model Code for Securities Transactions by Directors of Listed
Issuers as set out in Appendix C3 to the Listing Rules (the “Model Code”) as its code of
conduct regarding securities transactions by the Directors. All the Directors have confirmed,
following a specific enquiry by the Company, that they had complied with the required
standards as set out in the Model Code throughout the Period.
REVIEW OF INTERIM RESULTS BY THE AUDIT COMMITTEE
The audit committee of the Company (the “Audit Committee”) has reviewed together with
the Board and Forvis Mazars CPA Limited, the Company’s external auditor, the unaudited
condensed consolidated financial statements of the Group for the Period. The Audit
Committee is satisfied that the unaudited condensed consolidated financial statements of the
Group for the Period were prepared in accordance with the applicable accounting standards
and fairly present the Group’s financial position and results for the Period.
– 26 –
PUBLICATION OF THE INTERIM RESULTS ANNOUNCEMENT AND INTERIM
REPORT
This announcement is published on the websites of the Stock Exchange (www.hkexnews.hk)
and the Company (www.epfhk.com). The interim report of the Company for the Period
containing all the information required under the Listing Rules will be published on the
aforesaid websites of the Stock Exchange and the Company and will be despatched to the
Company’s shareholders in due course.
By Order of the Board
Evergreen Products Group Limited
Chang Yoe Chong Felix
Chairman, Chief Executive Officer and Executive Director
Hong Kong, 24 August 2026
As at the date of this announcement, the executive Directors are Mr. Chang Yoe Chong
Felix, Mr. Chan Kwok Keung, Ms. Jia Ziying, Mr. Li Yanbo and Ms. Wong So Ying; the non-
executive Director is Mr. Chan Lau Yui Kevin; and the independent non-executive Directors
are Ir. Cheung Siu Wa, Mr. Tseung Yuk Hei Kenneth and Mr. Cheng Man Tak Richard.