Corporate Governance - The company appointed Ms. Elizabeth Law as an Independent Non-Executive Director effective April 1, 2023, for a term of two years[5]. - The Remuneration Committee held three meetings during the fiscal year ending March 31, 2024, with a participation rate of 100%[15]. - The Audit Committee, consisting of all four Independent Non-Executive Directors, held two meetings with a participation rate of 100%[28]. - The Nomination Committee assessed the independence of Independent Non-Executive Directors, confirming their compliance with the independence criteria set out in Listing Rule 3.13[17]. - The company encourages all directors to participate in continuous professional development courses to enhance their skills and knowledge[10]. - The company has adopted a nomination policy outlining the conditions and processes for nominating and appointing directors[32]. - The Nomination Committee will consider various factors, including skills, knowledge, and experience relevant to the company's business when evaluating candidates[24]. - The company ensures timely delivery of board documents to all directors to facilitate informed decision-making[13]. - The company’s governance policies and practices are regularly reviewed to ensure compliance with legal and regulatory requirements[43]. - The company maintains a high level of attendance at board meetings, reflecting strong commitment from its directors[20]. - The Company Secretary, Mr. Poon Kwok Ching, has been appointed since April 1, 2019, ensuring Board procedures are followed and activities are conducted efficiently[44]. - All Directors confirmed compliance with the Model Code for Securities Transactions for the year ended March 31, 2024[46]. - The Company Secretary is responsible for ensuring compliance with legislative, regulatory, and corporate governance developments[68]. Risk Management - The Group's risk management framework includes the Board, Audit Committee, and Senior Management, with annual reviews of effectiveness covering financial, operational, and ESG performance[53]. - The Audit Committee reviewed the interim and annual results for the year ended March 31, 2024, ensuring compliance with generally accepted accounting practices in Hong Kong[64]. - The Group has established a Risk Management Policy to identify, evaluate, and manage significant risks, including ESG risks, with annual assessments conducted by Senior Management[77]. - Significant internal control deficiencies are reported to the Audit Committee and the Board for timely remediation[55]. - The Board considers the Group's risk management and internal control systems effective and adequate during the year[56]. - The Group has engaged an independent professional advisor for ongoing monitoring of risk management and internal control systems[55]. Financial Performance - The Group's working capital surplus as of March 31, 2024, was approximately HK$235 million, unchanged from the previous year[109]. - The Group maintained a net cash position with cash and cash equivalents of approximately HK$149 million as of March 31, 2024, compared to HK$150 million in 2023[109]. - The gearing ratio improved to 11% as of March 31, 2024, down from 14% in the previous year, with total borrowings of approximately HK$69 million[109]. - The Group's consolidated financial statements were audited by PwC, with audit fees amounting to approximately HK$3,045,000 and non-audit services fees of approximately HK$341,000[100]. - The Directors recommended a final dividend of HK1.5 cents per share for the year ended March 31, 2024, resulting in a total dividend of HK2.5 cents per share for the financial year[91]. - The group recorded a profit of approximately HKD 17 million, compared to a profit of approximately HKD 5 million in the same period last year[134]. - The group has maintained its core profit level due to easing inflationary pressures, a decline in major raw material prices, and effective cost optimization measures[158]. - Interest expenses for the year were approximately HK$4 million, down from HK$6 million the previous year, indicating improved financial management[179]. Operational Performance - The ASEAN region experienced a decline in sales but managed to achieve a turnaround from loss during the reporting period[104]. - The Guangzhou plant continued to record profits, while the Shaoguan plant turned around from a loss, and the Suzhou plant experienced a slight decline but remained profitable[104]. - The Group's operations in Southeast Asia faced challenges due to slow global economic recovery but successfully turned profitable[94]. - The overall business revenue from the South China plants decreased, but profitability was achieved through effective cost-saving measures and intelligent initiatives[144]. - The Group's operations in the Southern China region are expected to be affected by weak global market sentiment for books and greeting cards due to various uncertainties[146]. - The Group's operations in Eastern China experienced a slight decrease in revenue due to the slowdown in economic growth and shrinking consumption, with increased industry competition impacting marginal profits[169][174]. - The Southeast Asia operation recorded a decline in revenue but managed to turn losses into profits through effective material control measures and strategic investments in electronics and pharmaceuticals[177]. Strategic Initiatives - The Group's strategic focus includes enhancing customer service quality and investing in new markets and businesses, particularly in electronics and pharmaceuticals[105]. - The group is actively promoting the construction of an AI-driven operational network and integrating the entire value chain to enhance operational efficiency and risk management[144]. - The Group is committed to green, energy-saving, and low-carbon innovation while expanding into new markets and businesses[138]. - The Group's frontline business team actively engaged in domestic and international exhibitions to explore long-term business opportunities in Europe, the United States, and Southeast Asia[145]. - The Group's new product series, including the Habi Rabbit STEAM education series, was launched, and efforts to expand sales channels in mainland China and Southeast Asia were emphasized[148]. - The Group is actively exploring new markets in biotechnology, pharmaceuticals, and game cards to diversify its production capacity and identify future growth opportunities[174][175]. Awards and Recognition - The Group pledged to donate 4% of profits beyond the 8% profit range for charitable purposes, enhancing its commitment to ESG development[145]. - The Group was awarded the "Greater Bay Area Power Brand Award 2022–2023" and the "Most Promising Enterprise Award" at the 2023 Global Economic Influence Awards Ceremony[145]. - The Group has received awards for its contributions to the Greater Bay Area and recognition as a company with significant development potential, enhancing its reputation in the market[170]. Innovation and Technology - A new Heidelberg eight-colour UV printing machine was acquired to enhance printing quality and innovation, alongside the establishment of a fully automated intelligent production line for children's books[172]. - The Shaoguan plant launched a fully automated production line for children's books, improving efficiency and reducing labor intensity[200]. - Automation projects, including smart glue machines and robotic feeding systems, effectively saved labor costs and created unique competitive advantages[200]. - The Group's artificial intelligence initiatives include smart typesetting, automated logistics, and smart production scheduling to enhance operational efficiency and risk management[167]. - The management team implemented lean production management, significantly enhancing operational efficiency and profitability in South China[200].

[Financial Statements](index=1&type=section&id=Financial%20Statements) [Consolidated Statement of Profit or Loss](index=1&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For the year ended March 31, 2024, group revenue declined 9.6% to HKD 835 million, but effective cost control led to a 4.2% gross profit increase, an 87.7% surge in operating profit to HKD 26.31 million, and a 221.8% rise in profit for the year to HKD 16.99 million, boosting basic EPS from 1.26 to 3.45 HK cents Key Consolidated Statement of Profit or Loss Metrics (For the Year Ended March 31) | Metric | 2024 (HKD '000) | 2023 (HKD '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 834,749 | 923,236 | -9.6% | | Gross Profit | 171,207 | 164,363 | +4.2% | | Operating Profit | 26,309 | 14,018 | +87.7% | | Profit Before Tax | 25,071 | 9,623 | +160.5% | | Profit for the Year | 16,992 | 5,280 | +221.8% | | Profit Attributable to Owners of the Company | 17,422 | 6,478 | +169.0% | | Basic Earnings Per Share (HK cents) | 3.45 | 1.26 | +173.8% | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Despite a profit of HKD 16.99 million for the year, a HKD 29.71 million exchange difference loss resulted in a total comprehensive loss of HKD 12.81 million, which narrowed from HKD 20.25 million in the prior year Consolidated Comprehensive Income/(Loss) (For the Year Ended March 31) | Metric | 2024 (HKD '000) | 2023 (HKD '000) | | :--- | :--- | :--- | | Profit for the Year | 16,992 | 5,280 | | Other Comprehensive Loss (primarily exchange differences) | (29,801) | (25,534) | | **Total Comprehensive Loss for the Year** | **(12,809)** | **(20,254)** | [Consolidated Statement of Financial Position](index=4&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2024, the group's total assets were HKD 891.44 million and total liabilities were HKD 266.35 million, both decreasing year-on-year, while total equity slightly declined to HKD 625.09 million, maintaining a net cash position Consolidated Statement of Financial Position Summary (As of March 31) | Metric | 2024 (HKD '000) | 2023 (HKD '000) | | :--- | :--- | :--- | | Non-current Assets | 400,030 | 419,738 | | Current Assets | 491,409 | 533,754 | | **Total Assets** | **891,439** | **953,492** | | Current Liabilities | 256,783 | 298,852 | | Non-current Liabilities | 9,571 | 10,504 | | **Total Liabilities** | **266,354** | **309,356** | | **Total Equity** | **625,085** | **644,136** | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) [General Information and Basis of Preparation](index=5&type=section&id=2.%20Basis%20of%20Preparation) The group primarily engages in printing and manufacturing packaging materials, labels, and paper products, with financial statements prepared under HKFRS; new accounting standard amendments adopted this year had no significant impact on financial position - The group's principal business involves printing and manufacturing packaging materials, labels, and paper products, including eco-friendly paper products[8](index=8&type=chunk) - The group first applied several newly revised accounting standards for the financial year beginning April 1, 2023, with no significant expected impact on current or future periods[12](index=12&type=chunk) [Revenue and Segment Information](index=8&type=section&id=3.%20Revenue%20and%20Segment%20Information) Group revenue primarily stems from packaging materials, labels, and paper products sales, with South China contributing the most revenue and East China achieving the highest operating profit; notably, both South China and Southeast Asia segments successfully turned profitable this year Segment Performance Summary (For the Year Ended March 31, 2024) | Segment | Revenue from External Customers (HKD '000) | Profit/(Loss) for the Year (HKD '000) | 2023 Corresponding Period Profit/(Loss) (HKD '000) | | :--- | :--- | :--- | :--- | | South China | 567,983 | (5,999) | (4,574) | | East China | 122,453 | 14,397 | 20,031 | | Southeast Asia | 144,313 | 8,594 | (10,177) | | **Total** | **834,749** | **16,992** | **5,280** | - Despite South China segment revenue decreasing from HKD 615 million to HKD 568 million, its operating profit significantly increased from HKD 38 thousand to HKD 2.682 million; Southeast Asia segment revenue also fell from HKD 163 million to HKD 144 million, but successfully turned profitable from a HKD 9.98 million loss to an HKD 8.52 million profit[21](index=21&type=chunk)[23](index=23&type=chunk) [Dividends](index=14&type=section&id=9.%20Dividends) The Board recommends a final dividend of 1.5 HK cents per share, bringing the full-year dividend to 2.5 HK cents per share, including the 1 HK cent interim dividend, representing a 150% increase from last year's 1 HK cent Annual Dividend Details | Dividend Type | FY2024 (Per Share) | FY2023 (Per Share) | | :--- | :--- | :--- | | Interim Dividend | 1.0 HK cents | 1.0 HK cents | | Proposed Final Dividend | 1.5 HK cents | Zero | | **Full-Year Dividend** | **2.5 HK cents** | **1.0 HK cents** | [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) [Performance Review](index=16&type=section&id=Performance) Despite a 9.6% revenue decline due to global economic uncertainty, the group maintained core profit and significantly grew annual profit through cost optimization, falling raw material prices, and RMB depreciation gains, with key factories exceeding expectations and Shaoguan and Southeast Asia operations turning profitable - Revenue decreased by **9.6%** to approximately **HKD 835 million**, but profit for the year increased from approximately **HKD 5 million** last year to approximately **HKD 17 million**[39](index=39&type=chunk) - Key drivers for profit growth include falling prices of major raw materials, effective implementation of cost optimization measures, and exchange gains from RMB depreciation[40](index=40&type=chunk) - Performance across factories exceeded expectations: Guangzhou factory remained profitable, Shaoguan factory turned profitable, Suzhou factory recorded profit despite a slight business decline, and the Southeast Asia region also turned profitable despite a sales decrease[40](index=40&type=chunk) [Business Overview and Outlook](index=17&type=section&id=Business%20Overview%20and%20Outlook) Facing global economic slowdown and geopolitical risks, the group adopted a prudent strategy, enhancing core competitiveness through AI-driven operations, advanced equipment investment, new business expansion (food, pharmaceutical packaging), and strengthened ESG practices, with regional strategies tailored to market dynamics [South China Operations](index=19&type=section&id=South%20China%20Operations) South China operations enhanced efficiency through targeted investments, including a new Heidelberg eight-color UV printing machine, a food-safe packaging workshop, and an automated children's book production line in Shaoguan, significantly reducing labor costs, while also establishing a printing cultural education base and promoting the 'TEAM GREEN®' eco-friendly brand - Shaoguan factory made significant investments, including acquiring a new Heidelberg eight-color UV printing machine, constructing a new food-safe packaging workshop, and establishing a fully automated smart production line for children's books to enhance automation[50](index=50&type=chunk) - The eco-friendly brand 'TEAM GREEN®' actively expanded its market presence, participating in multiple exhibitions and broadening its online and offline sales channels[52](index=52&type=chunk) [East China Operations](index=20&type=section&id=East%20China%20Operations) To counter domestic market contraction, East China operations diversified into biotechnology, pharmaceuticals, and game cards, while innovating new materials and technologies, collaborating with CAS on automation, and implementing ESG initiatives like a zeolite rotor system and solar photovoltaic power generation at the Suzhou factory - To counter domestic sales contraction, business expanded into new areas such as biotechnology, pharmaceuticals, and game cards[53](index=53&type=chunk) - ESG initiatives: The Suzhou factory's invested zeolite rotor collection system and solar photovoltaic power generation system were put into operation by year-end, increasing clean energy usage[54](index=54&type=chunk) [Southeast Asia Operations](index=21&type=section&id=Southeast%20Asia%20Operations) Despite a revenue decline due to global economic slowdown, Southeast Asia operations successfully turned profitable by leveraging global industrial transfer trends, accelerating capacity expansion with a new Penang plant to serve North Malaysia clients, and reducing production costs through enhanced lean operations and supply chain management - Despite a decline in revenue, the business successfully turned profitable[55](index=55&type=chunk) - To address geopolitical and supply chain changes, the group established a new plant in Penang, intensifying efforts to expand into the electronics and pharmaceutical business markets[55](index=55&type=chunk) [Liquidity and Financial Resources](index=22&type=section&id=Liquidity%20and%20Financial%20Resources) The group maintains a robust financial position with approximately HKD 218 million in cash and bank balances as of March 31, 2024, and a net cash status, with the debt-to-equity ratio decreasing from 14% to 11%, indicating lower financial leverage Financial Position Metrics (As of March 31) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Cash and Bank Balances (HKD) | Approx. HKD 218 million | - | | Working Capital Surplus (HKD) | Approx. HKD 235 million | Approx. HKD 235 million | | Net Cash Position (HKD) | Approx. HKD 149 million | Approx. HKD 150 million | | Debt-to-Equity Ratio | 11% | 14% | [Future Outlook](index=24&type=section&id=Future%20Outlook) Management remains cautious about future economic prospects, citing IMF reports of slow global expansion, and will continue to implement cost-saving and revenue-generating measures, including enhanced automation, innovation, business diversification, and investments in human capital and green energy, to navigate geoeconomic fragmentation and create long-term shareholder value - Citing the International Monetary Fund (IMF) report, global economic growth is projected to remain at **3.4%** for 2024 and 2025, indicating a historically low expansion rate[65](index=65&type=chunk) - Group strategy: The group will continue to actively adopt measures to increase revenue and reduce costs, enhance automation, drive innovation and diversified business development, and continuously invest in human capital, digitalization, and green energy[65](index=65&type=chunk) [Corporate Governance and Other Information](index=24&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Share Repurchases](index=26&type=section&id=Purchase%20or%20Redemption%20of%20Shares) During the year ended March 31, 2024, the company repurchased 6,002,000 ordinary shares on the Stock Exchange for approximately HKD 1.22 million, all of which were cancelled, with the Board believing this action enhances earnings per share and net asset value per share Annual Share Repurchase Details | Date | Number of Shares Repurchased | Purchase Price Per Share (HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | | July-October 2023 | 6,002,000 | 0.193 - 0.207 | 1,215,986 | [Code on Corporate Governance Practices](index=27&type=section&id=Compliance%20with%20Code%20on%20Corporate%20Governance%20Practices) The company largely complied with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are combined under Mr. Lam Kwong Yu, an arrangement the Board believes enhances strategic development and execution, with the board composition ensuring power balance - There is a deviation from Code Provision C.2.1, where the roles of Chairman and Chief Executive Officer are not segregated, both held by Mr. Lam Kwong Yu[75](index=75&type=chunk) - The Board believes this arrangement allows the company to develop long-term business strategies more effectively and efficiently, and the Board's structure is sufficient to ensure a balance of power[75](index=75&type=chunk)

Financial Performance - The Group reported a profit of approximately HK$7 million for the six months ended 30th September 2023, down 22% from HK$9 million in the same period last year[2]. - Revenue for the period was approximately HK$460 million, representing a 15% decrease compared to the same period last year[2]. - Operating profit decreased to HK$11,919,000, down 33.9% from HK$18,009,000 in the previous year[120]. - Profit for the period was HK$6,647,000, a decline of 25.5% compared to HK$8,918,000 in the prior year[120]. - Basic earnings per share for the period was 1.36 HK cents, down from 1.73 HK cents in the same period last year[120]. - Total comprehensive loss for the period amounted to HK$19,863,000, compared to a loss of HK$42,754,000 in the previous year[123]. - The company reported a decrease in currency translation differences, which amounted to a loss of HK$26,347,000, down from HK$51,409,000 in the previous year[123]. - The Group's cash and bank balances and short-term bank deposits amounted to approximately HK$238 million as of September 30, 2023[39]. - Interest expense decreased to approximately HK$2 million from HK$3 million in the same period of 2022[40]. - Working capital surplus increased to approximately HK$244 million as of September 30, 2023, compared to HK$232 million in the previous year[41]. Operational Highlights - The Group's operations in China performed better than expected, with the Guangzhou plant remaining profitable, the Shaoguan plant turning losses into profits, and the Suzhou plant recording a slight decline but still achieving profitability[4]. - The Eastern China operation experienced a slight decrease in performance due to economic slowdown and increased competition, while the Southeast Asia operation recorded profits despite a decline in sales[15]. - The Group anticipates weak market demand for products and services in the second half of the year, posing significant challenges to operations[10]. - The Group is enhancing operational efficiency through the development of an artificial intelligence operation network and integrating the value chain, achieving interim results despite challenging conditions[14]. - The Group is committed to green and low-carbon development, actively promoting sustainable practices within its operations[19]. - The Shaoguan plant acquired a new Heidelberg eight-colour UV printing machine and established a new food-safe packaging workshop, enhancing service quality and diversifying business development[24]. - A fully automatic intelligent production line for children's books was established at the Shaoguan plant, significantly reducing labor costs and increasing production efficiency[25]. - The Group is increasing investment in the pharmaceutical business and enhancing lean operation standards to reduce production and management costs[33]. Market and Industry Context - The International Monetary Fund (IMF) projected global growth rate to decline from 3.5% in 2022 to 3.0% in 2023 and 2.9% in 2024[34]. - Headline inflation is expected to fall from 9.2% in 2022 to 5.9% in 2023 and 4.8% in 2024[34]. - The Group's Southern China operations maintained profitability despite a decline in global book market demand, attributed to high inflation and interest rates in Europe and the US[22]. Shareholder Information - As of September 30, 2023, Mr. Lam Kwong Yu holds 202,962,677 shares, representing 40.06% of the total shareholding[55]. - Ms. Yeung Chui has beneficial ownership of 79,916,000 shares and an additional 1,012,901 shares through Dayspring Enterprises Limited, totaling 80,928,901 shares or 15.97%[55][57]. - Mr. Poon Kwok Ching holds 118,000 shares, accounting for 0.02% of the total shareholding[55]. - The Company has adopted a new share option scheme since August 18, 2022, allowing for the issuance of up to 51,463,528 shares, which is approximately 10% of the issued share capital[60][68]. - The maximum number of shares that can be issued upon exercise of options under the 2022 Share Option Scheme must not exceed 30% of the shares in issue at any time[69]. - No share options were granted under the 2022 Share Option Scheme during the six months ended September 30, 2023[79]. Financial Position - Total assets decreased from HK$953,492,000 as of March 31, 2023, to HK$913,594,000 as of September 30, 2023, representing a decline of approximately 4.2%[127]. - Total equity attributable to owners of the Company decreased from HK$643,374,000 as of March 31, 2023, to HK$623,738,000 as of September 30, 2023, a decrease of about 3.1%[129]. - Current liabilities decreased from HK$298,852,000 as of March 31, 2023, to HK$280,332,000 as of September 30, 2023, a reduction of about 6.2%[129]. - Trade receivables increased from HK$172,865,000 as of March 31, 2023, to HK$205,742,000 as of September 30, 2023, an increase of approximately 19.0%[127]. - Cash and cash equivalents slightly decreased from HK$243,019,000 as of March 31, 2023, to HK$237,992,000 as of September 30, 2023, a decrease of about 2.1%[127]. - The Company’s reserves decreased from HK$592,710,000 as of March 31, 2023, to HK$573,074,000 as of September 30, 2023, a decline of approximately 3.3%[129]. Employee and Training - Approximately 2,500 employees are currently employed, with ongoing training and development programs in place[49]. - Employee costs decreased to HK$147,552,000 from HK$160,542,000, a reduction of 8.1%[171]. Capital Expenditure - Capital expenditure for the period was HK$15,070,000, compared to HK$25,076,000 in the previous year, indicating a decrease of 40%[165]. - Additions to property, plant, and equipment amounted to HK$13,785,000, down from HK$30,814,000 in the previous year, a decrease of 55.2%[165]. Risk Management - The Group's financial risk management includes market risk, credit risk, liquidity risk, and price risk[148]. - There have been no significant changes in the risk management policies since the year-end[148]. - The carrying amounts of the Group's financial assets approximate their fair values due to short-term maturities[148].

Financial Performance - For the year ended March 31, 2023, the Group's revenue decreased by 12% to approximately HK$923 million, with a profit of approximately HK$5 million compared to HK$357 million last year[17]. - Operating profit for the year was HK$14,018,000, a significant decline from HK$367,421,000 in the previous year[100]. - The profit attributable to owners of the company was HK$6,478,000, compared to HK$357,473,000 in 2022, indicating a substantial drop[100]. - The company declared dividends of HK$5,096,000, down from HK$57,765,000 in the previous year[100]. - The Group's cash and bank balances and short-term bank deposits amounted to approximately HK$252 million as of March 31, 2023, with a working capital surplus of approximately HK$235 million[62][63]. - Interest expenses decreased to approximately HK$6 million from HK$18 million in the previous year, indicating improved cost management[62][66]. - The Group's gearing ratio improved to 14% as of March 31, 2023, down from 22% in the previous year, reflecting a stronger financial position[63]. - The total equity attributable to owners of the company was HK$643,374,000, a decrease from HK$670,645,000 in the previous year[101]. Operational Challenges - The global political and economic situation remains complex, affecting consumer demand and leading to a more conservative business model among customers[19]. - The unfavorable macro environment has impacted the purchasing power and consumption desire of end consumers[19]. - The overall economic growth is expected to remain low, with significant challenges in market demand for printing services due to geopolitical tensions and economic slowdown, particularly in developed economies[37]. - The eastern China operation recorded a slight decrease in performance due to COVID-19 lockdowns and economic growth slowdown, but overall add-on value improved through effective cost control[41]. - The overall consumer sentiment in developed economies remains weak, affecting the business growth of the Southern China operation[50]. Cost Optimization and Efficiency - Excluding the disposal of Starlite Printers (Shenzhen) Co., Ltd last year, the core profit level improved due to effective cost optimization measures and exchange gains from the depreciation of Renminbi[18]. - The Group implemented several cost optimization measures during the reporting period[18]. - The Group completed resource integration for its Southern China plants, reducing procurement, production, logistics, and inventory costs, thereby enhancing competitiveness and market share[51]. - The management team is focusing on lean operations and simplifying production processes to enhance overall operational standards and reduce costs[61][64]. Sustainability Initiatives - The Group is actively promoting a green production system and has established solar photovoltaic power generation systems in Shaoguan and Suzhou plants to align with national dual-carbon policies[43]. - The Group aims to integrate sustainability initiatives with its energy conservation and emission reduction concepts, establishing a benchmark for green manufacturing[43]. - The Group is committed to carbon emission management and has initiated various environmental protection measures[90]. - The company is focusing on environmental sustainability by implementing initiatives such as using biodegradable materials like bamboo in product designs[94]. - The establishment of ESG working groups across subsidiaries aims to enhance the company's commitment to environmental, social, and governance standards[96]. Market and Product Development - The performance of the three plants in China was better than expected, with the Guangzhou plant recording a profit and the Shaoguan plant significantly narrowing its losses[19]. - The Suzhou plant improved its profitability despite disruptions from Shanghai's lockdown measures and a decline in sales at the beginning of the year[19]. - The Group's frontline business team is engaging in international exhibitions to explore new business opportunities following the lifting of pandemic restrictions[43]. - The Group plans to strengthen business development in mainland China and Southeast Asia, expanding sales channels through online media and physical stores[53]. - TEAM GREEN® brand sales increased with the resumption of retail activities, and new product series were launched, including the JIGZLE wood animals series[53]. Awards and Recognition - The global limited-edition OPERA GIRL of TEAM GREEN® won multiple awards at the 33rd Hong Kong Print Awards, including the Gold Award for Creative Products[53]. - The Guangzhou plant received the Science and Technology SME Certificate, and the Shaoguan plant built a solar photovoltaic power generation system, optimizing energy consumption and reducing costs[51]. Corporate Governance and Management - The Group's Chairman received the Outstanding Contribution Leader Award for contributions to the Guangdong-Hong Kong-Macao Greater Bay Area[47]. - The Audit Committee consists of all four Independent Non-Executive Directors and has reviewed the financial statements for the year ended March 31, 2023[198]. - The Remuneration Committee is responsible for recommending the remuneration policy for all Directors and senior management[199]. - The Nomination Committee regularly reviews the structure and composition of the Board and makes recommendations for any proposed changes[200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 倚賴該等內容而引致的任何損失承擔任何責任。 Website : http://www.hkstarlite.com 截至二零二三年三月三十一日止年度之全年業績公佈 董事會謹公佈星光集團有限公司（「本公司」）及各附屬公司(統稱「本集團」) 截至二零二三年三月三十一日止年度之綜合業績及去年同期比較數字如下： 綜合收益表 截至二零二三年三月三十一日止年度 附註 二零二三年 二零二二年 千港元 千港元 收入 3 923,236 1,048,700 ...

Financial Performance - The Group reported a profit of approximately HK$9 million for the six months ended 30th September 2022, a significant decrease from approximately HK$418 million in the same period last year[3]. - Revenue for the period was about HK$542 million, representing a 3% decline compared to the same period last year[3]. - Excluding the net gain of approximately HK$483 million from the disposal of Starlite Printers (Shenzhen) Co., Ltd last year, the Group's performance improved substantially during the period[4]. - Profit for the period attributable to the owners of the Company was HK$8,918,000, a sharp decline from HK$417,715,000 in the prior year[123]. - Basic and diluted earnings per share were both HK$1.73, down from HK$79.54 in the same period last year[119]. - Gross profit for the period was HK$88,877,000, significantly up from HK$42,289,000 in the previous year, indicating a substantial improvement in profitability[119]. - The Company declared dividends of HK$5,146,000, a significant drop from HK$57,765,000 in the previous year[119]. - For the six months ended September 30, 2022, the company reported a comprehensive loss of HK$42,754,000 compared to a comprehensive income of HK$421,696,000 for the same period in 2021[135]. Operational Highlights - The Guangzhou and Shaoguan plants recorded profits, while the Suzhou plant achieved a turnaround from loss to profit despite challenges from lockdown measures[5]. - The eastern China operation experienced a decline due to lockdown measures and economic slowdown, while the Southeast Asia operation remained stable but faced disruptions[19]. - Southern China operation maintained profitability for the six months ended September 30, 2022, despite challenges such as high inflation and economic recession impacting market demand[21]. - Eastern China operation experienced a revenue decline but turned a profit due to exchange gains from Renminbi depreciation, with increased revenue from greeting cards as individual consumer markets in Europe and the US recovered[31]. - The Group's innovative environmentally friendly brand TEAM GREEN® saw increased sales in the first half of the year, driven by the resumption of retail activities and new product launches[28]. Strategic Initiatives - The Group is actively promoting upgrades and transformation of its internal management systems and supply chain reform to enhance operational efficiency and risk management capabilities[15]. - The Group's strategic direction includes expanding in emerging markets and optimizing organizational structure to maintain market competitiveness[8]. - The Group plans to strengthen business development in mainland China and Southeast Asia markets, expanding sales channels through online and offline platforms[28]. - The Group is actively preparing to implement a dual-cycle strategy and develop the new economy post-pandemic through diversified cooperation with well-known publishing houses[25]. Financial Position - The Group's cash and bank balances and short-term bank deposits amounted to approximately HK$253 million as of September 30, 2022[40]. - Working capital surplus was approximately HK$232 million as of September 30, 2022, compared to HK$317 million a year earlier[43]. - The Group maintained a net cash position as of September 30, 2022, and 2021, and will continue to adopt prudent policies for financial health[43]. - Total assets as of September 30, 2022, amounted to HK$961,689,000, down from HK$1,039,476,000 as of March 31, 2022[126]. - Total equity attributable to the owners of the Company decreased to HK$626,725,000 from HK$670,645,000[128]. - Cash and cash equivalents were HK$252,961,000, a decrease from HK$285,422,000 as of March 31, 2022[126]. Shareholder Information - An interim dividend of HK1 cent per share has been recommended for the six months ended 30th September 2022[10]. - As of September 30, 2022, Mr. Lam Kwong Yu holds 202,962,677 shares, representing 39.44% of the total shareholding[54]. - Ms. Yeung Chui has a beneficial interest of 79,916,000 shares and an additional 1,012,901 shares held by Dayspring Enterprises Limited, totaling 80,928,901 shares or 15.73%[54]. - The total number of shares available for issue under the 2022 Share Option Scheme is 51,463,528 shares, which is approximately 10% of the issued share capital[62]. - The maximum number of shares that may be issued upon exercise of all outstanding options must not exceed 30% of the shares in issue[63]. Governance and Compliance - The Audit Committee reviewed the unaudited interim financial information for the six months ended 30th September 2022[78]. - The Remuneration Committee is responsible for recommending the remuneration policy for all Directors and senior management[80]. - The Nomination Committee regularly reviews the structure, size, and composition of the Board[82]. - The company has complied with the Corporate Governance Code throughout the six months ended September 30, 2022, except for certain deviations[97]. - All directors confirmed compliance with the Model Code for Securities Transactions by Directors for the six months ended September 30, 2022[111]. Market Conditions - The International Monetary Fund (IMF) projected global economic growth to slow down to 2.7% in 2023, with a 25% probability of falling below 2%[35]. - The Group's activities expose it to various financial risks, including market risk, credit risk, liquidity risk, and price risk[144]. - There have been no changes in the risk management department or policies since the year-end[144].

Financial Performance - For the year ended March 31, 2022, the Group's revenue decreased by 1% to approximately HK$1,049 million[12] - The Group recorded a profit of approximately HK$357 million, compared to a loss of approximately HK$99 million last year[12] - The improvement in performance was mainly due to the disposal of Starlite Printers (Shenzhen) Co., Ltd, resulting in a net gain of approximately HK$483 million[13] - Overall revenue from southern China operations declined, but profit was still recorded through measures to increase income and reduce expenditure[33] - The eastern China operations experienced a marginal profit decrease due to soaring paper prices and increased outsourcing and labor expenses, yet still saw growth for the year[36] - The Southeast Asia operation's revenues increased, and losses narrowed despite multiple production halts due to pandemic volatility[36] - The southern China operation remained profitable, with a recovery in customer orders for children's books and board games despite weakened global retail demand due to COVID-19[38] - The eastern China operation turned from loss to profit, benefiting from improved consumer sentiment in Europe and the U.S., leading to increased revenue from greeting card products[45] - Operating profit for the same period was HK$367,421,000, a significant recovery from an operating loss of HK$98,713,000 in 2021[94] - Profit attributable to the owners of the Company for the year was HK$357,473,000, compared to a loss of HK$98,525,000 in the previous year[94] - Basic earnings per share attributable to the owners of the Company increased to 68.10 HK cents, recovering from a loss of 18.76 HK cents in 2021[94] Operational Challenges - The appreciation of Renminbi by approximately 4% and rising costs in commodities, logistics, and labor have negatively impacted overall performance[13] - The Guangzhou and Shaoguan plants suffered losses, while the Suzhou plant recorded an increase in sales and a turnaround from loss to profit[15] - The macro environment fluctuated sharply in the second half of the year due to geopolitical instability and inflation reaching the highest level in over 40 years in the US and Europe[15] - The Group's operational difficulties increased due to disruptions in the global supply chain and rising operating costs[15] - The Group's performance was affected by the ongoing COVID-19 pandemic and the emergence of the Omicron variant[15] Strategic Initiatives - The Group aims to continue building long-term partnerships with customers across various industries[5] - The Group established long-term strategic partnerships with international customers to maintain market competitiveness[23] - The Group is actively promoting upgrades to its internal management system and supply chain reform to enhance operating efficiency and risk management[32] - The Group's management is actively implementing operational upgrades to improve flexibility and diversify manufacturing capabilities for long-term growth[46] - The Group's strategic vision focuses on sustainable management and resource integration to enhance its leading position in the industry[42] - The Group is actively exploring opportunities to develop its own products and brand, moving away from traditional OEM business models[91] Financial Position - As of March 31, 2022, the Group's cash and bank balances and short-term bank deposits amounted to approximately HK$286 million[55] - The Group achieved a working capital surplus of approximately HK$238 million as of March 31, 2022, compared to HK$84 million as of March 31, 2021[57] - The Group's net cash position as of March 31, 2022, was approximately HK$137 million, improving from a net debt position of HK$116 million in the previous year[57] - The Group's gearing ratio decreased to 22% as of March 31, 2022, down from 111% in the previous year[57] - Interest expenses for the Group amounted to approximately HK$18 million during the year, compared to HK$11 million recorded last year[56] - The Group's non-current assets amounted to HK$434,716,000, an increase from HK$426,780,000 in the previous year[96] - Current assets as of March 31, 2022, were HK$604,760,000, compared to HK$592,722,000 as of March 31, 2021[96] - The Group's net current assets increased to HK$238,190,000 in 2022 from HK$84,077,000 in 2021, reflecting a significant improvement[96] - Total equity as of March 31, 2022, was HK$670,645,000, up from HK$353,219,000 in the previous year[96] Shareholder Information - The Group did not recommend a final dividend for the year ended March 31, 2022, but paid an interim dividend of HK1 cent and a special dividend of HK10 cents per share for the six months ended September 30, 2021[25] - The Group's retained profit available for distribution to shareholders as of March 31, 2022, was approximately HK$401,844,000[116] - During the year, the Company repurchased 6,500,000 ordinary shares for a total consideration of HK$2,078,350[123] - The directors believe that the share repurchases will enhance earnings per share and increase net asset value per share attributable to shareholders[128] - The Company plans to propose a new share option scheme at the special general meeting on August 18, 2022, to reward eligible participants for their contributions[180] Environmental and Social Governance - The Group has established an ESG management team to oversee environmental and social governance initiatives, with an ESG report to be published alongside the 2022 annual report[78] - The Group has received a "Certificate of Participation in Green Financing Solutions" from HSBC, recognizing its contributions to green transformation and sustainable development[81] - The management is focusing on digital transformation and green manufacturing to create long-term sustainable value for shareholders[81] - The Group made charitable contributions of approximately HK$285,000 during the year, compared to HK$119,000 in 2021[131] - The Group has engaged in various charitable activities, including financial support for disaster relief and educational initiatives in Hong Kong and China[76]

S T A R L I T E HOLDINGS LIMITED 星 光 集 團 有 限 公 司 (Incorporated in Bermuda with limited liability) (於 百 轉 速 註 冊 戊 立 之 有 限 公 司 ) STOCK CODE 股份代號: 403 INTERIM REPORT FOR THE SIX MONTHS ENDED 30TH SEPTEMBER, 2021 中期業績報告 截至二零二一年九月三十日止六個月 STARLITE HOLDINGS LIMITED • INTERIM REPORT 2021 星光集團有限公司 ‧ 二零二一年中期業績報告 RESULTS 業績 The Group posted a profit of approximately HK$418 million for the six months ended 30th September, 2021, compared to loss of approximately HK$70 million in the same period last year. The Group reco ...

Financial Performance - For the year ended March 31, 2021, the Group's revenue decreased by 7% to approximately HK$1,057 million, compared to the previous year's profit of approximately HK$8 million, resulting in a loss of approximately HK$99 million[11][12]. - The decline in performance was primarily due to the COVID-19 pandemic, which shrank global packaging market demand, negatively impacting various operating units[12][13]. - The appreciation of Renminbi by approximately 8% and recorded exchange losses, along with soaring prices of major commodities and shipping costs, affected profit levels[12][13]. - The operating loss for the year was HK$98,713,000, compared to an operating profit of HK$27,056,000 in the previous year[92]. - The loss attributable to the owners of the company for the year was HK$98,525,000, a significant decline from a profit of HK$8,499,000 in 2020[92]. - Basic loss per share attributable to the owners of the company was HK(18.76) cents, compared to earnings of HK1.62 cents per share in the previous year[92]. Operational Developments - Approximately HK$90 million in severance payments and related expenditures were incurred due to the transfer of operations from the Shenzhen plant to the Shaoguan plant[12][13]. - The performance of the four plants in the PRC varied, with the Shenzhen plant turning profitable excluding one-off expenses, while the Suzhou plant recorded losses due to higher raw material costs[14][15]. - The Group plans to invest over US$14 million to expand factory operations, developing 89,600 square meters of the Shaoguan site within one year[16]. - The Group actively promoted lean manufacturing and business process optimization to effectively control operating costs during the adverse period[32]. - The Guangzhou plant was in the process of integrating its internal operations, which temporarily affected operating costs and profitability[32]. - The eastern China operation experienced rapid growth in the second half of the year, although it incurred losses due to additional outsourcing expenses related to labor shortages[33]. - The Group's business rebounded significantly in the second half of the year, offsetting part of the negative impact of the pandemic and operational difficulties[31]. Market and Customer Focus - The Group focused on expanding and optimizing its customer structure by exploring emerging and domestic markets[20]. - The Group capitalized on the gradual market recovery in the second half of the year to accelerate the rollout of new production capacity[20]. - The southern China operation remained stable, with a focus on flexible deployment and value chain integration despite a weakened global retail market due to COVID-19[41]. - The eastern China operation rebounded strongly in the second half of the year, with a slight increase in revenue driven by product innovation and market development in the Yangtze River Delta Economic Circle[47]. - The Group's innovative brand TEAM GREEN® faced a decline in sales due to a sluggish retail market, but new product series and brand promotions were actively developed[44]. Investments and Innovations - The Group introduced a new KBA 10-colour UV offset press to enhance production capacity and support the printing and innovation industries in eastern China[48]. - The Shaoguan plant commenced operations of a new smart logistics facility, contributing to the Group's expansion in the Guangdong-Hong Kong-Macao Greater Bay Area[39]. - The Group's investment in smart manufacturing included the introduction of advanced Heidelberg and Manroland six-colour offset presses to prepare for post-pandemic economic conditions[43]. Financial Position and Capital Management - The Group's cash and bank balances and short-term bank deposits amounted to approximately HK$275 million as of March 31, 2021[54]. - The Group's interest expense for the year was approximately HK$11 million, an increase from approximately HK$8 million recorded last year[55]. - As of March 31, 2021, the Group had a working capital surplus of approximately HK$84 million, down from approximately HK$125 million as of March 31, 2020[56]. - The Group's net gearing ratio as of March 31, 2021 was 33%, compared to a net cash position in 2020[56]. - The Group's gearing ratio as of March 31, 2021 was 111%, up from 29% in 2020[56]. - Certain assets with an aggregate book carrying value of approximately HK$53 million were pledged to secure banking facilities as of March 31, 2021[60]. Corporate Governance and Compliance - The Group has established compliance procedures to ensure adherence to applicable laws and regulations, with regular reviews conducted[101]. - The Company has complied with the Corporate Governance Code, except for certain deviations mentioned in the report[195]. - The Company has adopted the Model Code for Securities Transactions by Directors and all Directors confirmed compliance for the year ended March 31, 2021[197]. - The Company is committed to maintaining high standards of corporate governance to protect the interests of shareholders and stakeholders[194]. Social Responsibility and Community Engagement - The Group has committed to social responsibility by participating in social welfare and environmental protection activities[67]. - The Group has allocated significant resources to energy conservation and environmental protection, as well as providing training opportunities for young people[68]. - The Group provided financial and other support to various organizations, including the Scout Association of Hong Kong and the Hong Kong Seagulls Scholarship Scheme[70]. - The Group made charitable contributions of approximately HK$119,000 in the year, down from HK$242,000 in 2020, representing a decrease of 50.8%[119]. Shareholder Information - The Group's retained profit available for distribution to shareholders was approximately HK$101,558,000 as of 31st March 2021[110]. - No interim dividend was paid for the six months ended 30th September 2020, and no final dividend is recommended for the year ended 31st March 2021[110]. - The Company’s retained profit available for distribution was approximately HK$27,698,000 as of 31st March 2021[118].

S T A R L I T E HOLDINGS LIMITED 星 光 集 團 有 限 公 司 (Incorporated in Bermuda with limited liability) (於 百 轉 速 註 冊 戊 立 之 有 限 公 司 ) STOCK CODE 股份代號: 403 INTERIM REPORT FOR THE SIX MONTHS ENDED 30TH SEPTEMBER, 2020 中期業績報告 截至二零二零年九月三十日止六個月 STARLITE HOLDINGS LIMITED • INTERIM REPORT 2020 星光集團有限公司 ‧ 二零二零年中期業績報告 RESULTS 業績 The Group posted a loss of approximately HK$70 million for the six months ended 30th September 2020, compared to profit of approximately HK$16 million in the same period last year. The Group record ...