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之內容概不負責，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之任何損失承擔任何責任。 (股份代號: 00418) 香港，二零二四年十二月二十三日 謹此提述方正控股有限公司（「本公司」）日期為二零二四年十二月十七日之 公告，內容有關本公司董事會總裁及本公司授權代表之變更（「該公告」）。 除文義另有所指外，本公告所用詞彙與該公告所界定者具有相同涵義。 本 公 司 謹 此 補 充 ， 除 該 公 告 所 披 露 者 外 ， 並 無 任 何 其 他 須 根 據 上 市 規 則 第 13.51(2)(h)至13.51(2)(v)條的任何規定而披露的資料，亦並無有關委任張先生 為總裁及授權代表而聯交所或本公司股東要知悉的任何其他事項。 承董事會命 方 正 控 股 有 限 公司 * 主席 齊子鑫 補充公告 總裁及授權代表之變更 於本公告日期，董事會由執行董事齊子鑫先生（主席）、張建國先生（總裁）、邵 行先生、王進超先生、吳婧女士及李碩豐先生，以及獨立非執行董事陳仲戟先生、 賴雅明先生及翟志勝先生組成。 ...

陳仲戟先生 (主席) 賴雅明先生 翟志勝先生 (股份代號: 00418) 董事名單與其角色和職能 方正控股有限公司董事會（「董事會」）成員載列如下： 執行董事 齊子鑫先生 (主席) 張建國先生 (總裁) 邵行先生 王進超先生 吳婧女士 李碩豐先生 獨立非執行董事 陳仲戟先生 賴雅明先生 翟志勝先生 董事會已設立三個委員會。各董事會成員在該等委員會中所擔任的職位載列如下: 審核委員會 薪酬委員會 賴雅明先生 (主席) 齊子鑫先生 翟志勝先生 提名委員會 齊子鑫先生 (主席) 陳仲戟先生 賴雅明先生 香港，二零二四年十二月十七日 *僅供識別 ...

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之內容概不負責，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之任何損失承擔任何責任。 (股份代號: 00418) 總裁及授權代表之變更 董事會宣佈，邵行先生已辭任總裁及授權代表，自二零二四年十二月十七日起生 效。邵先生將繼續擔任執行董事。張建國先生已獲委任為總裁及授權代表以接替 邵行先生，自二零二四年十二月十七日起生效。 總裁及授權代表辭任 方正控股有限公司（「本公司」，連同其附屬公司，統稱「本集團」）董事 （「董事」） 會（「董事會」）宣佈，由於邵行先生（「邵先生」）即將達退 休年齡，希望更多時間投入個人事業，彼已辭任本公司董事會之總裁（「總 裁」），及根據香港聯合交易所有限公司（「聯交所」）證券上市規則（「上 市規則」）第3.05條，辭任授權代表（「授權代表」），自二零二四年十二月 十七日起生效。邵先生將繼續擔任本公司執行董事。 邵先生已確認，彼與董事會之間並無意見分歧，亦無其他有關彼辭任之事宜須 敦請本公司股東及聯交所垂注。 董事會謹此對邵先生在擔任總裁及授權代表期間為本公司作出的寶 ...

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之內容概不負責，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之任何損失承擔任何責任。 (股份代號: 00418) 於本公告日期，董事會由執行董事齊子鑫先生（主席）、邵行先生（總裁）、王進 超先生、張建國先生、吳婧女士及李碩豐先生，以及獨立非執行董事陳仲戟先生、 賴雅明先生及翟志勝先生組成。 本公司位於香港之股份過戶登記分處不變，而於香港進行股份過戶登記之申請 文件仍須送交香港中央證券登記有限公司，地址為香港皇后大道東183號合和中 心17樓1712–1716室。 承董事會命 方 正 控 股 有 限 公司 * 主席 齊子鑫 –1– 香港，二零二四年十二月十六日 更改百慕達股份過戶登記總處 方正控股有限公司（「本公司」）董事會宣佈，本公司位於百慕達之股份過戶 登記總處將由二零二四年十二月十六日起改為： Appleby Global Corporate Services (Bermuda) Limited Canon's Court, 22 Victoria Street, PO Box HM ...

Company Information [Company Information Overview](index=1&type=section&id=Company%20Information%20Overview) This section provides basic company information for Founder Holdings Limited, including board members, registered office, head office, share registrar, auditor, legal counsel, and listing details - Board members include Executive Directors Mr. Qi Zixin (Chairman), Mr. Shao Hang (President), Mr. Wang Jinchao, Mr. Zhang Jianguo, Ms. Wu Jing, Mr. Li Shuofeng, and Independent Non-executive Directors Mr. Chan Chung Chak, Mr. Lai Nga Ming, Mr. Zhai Zhisheng[1](index=1&type=chunk) - The Audit Committee Chairman is Mr. Chan Chung Chak, the Remuneration Committee Chairman is Mr. Lai Nga Ming, and the Nomination Committee Chairman is Mr. Qi Zixin[1](index=1&type=chunk) - The company's stock code is **00418**, with a board lot size of **2,000 shares**, listed on the Main Board of The Stock Exchange of Hong Kong Limited[1](index=1&type=chunk) Condensed Consolidated Financial Statements [Condensed Consolidated Statement of Profit or Loss](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2024, the Group's revenue slightly increased by 3.2% to HK$385,070 thousand, gross profit remained stable, but loss for the period significantly narrowed, and basic and diluted loss per share substantially decreased Key Data from Condensed Consolidated Statement of Profit or Loss (For the six months ended June 30) | Metric | 2024 (HK$ '000) | 2023 (HK$ '000) | Change (%) | | :--------- | :-------------- | :-------------- | :------- | | Revenue | 385,070 | 373,048 | +3.2% | | Cost of sales | (210,489) | (198,957) | +5.8% | | Gross profit | 174,581 | 174,091 | +0.3% | | Loss before tax | (5,245) | (27,654) | -81.0% | | Loss for the period | (4,402) | (26,887) | -83.6% | | Loss per share | (0.4) HK cents | (2.2) HK cents | -81.8% | [Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) The Group's total comprehensive loss for the six months ended June 30, 2024, significantly decreased, primarily due to the narrowed loss for the period and reduced exchange differences on translation of overseas operations Key Data from Condensed Consolidated Statement of Comprehensive Income (For the six months ended June 30) | Metric | 2024 (HK$ '000) | 2023 (HK$ '000) | Change (%) | | :--------------- | :-------------- | :-------------- | :------- | | Loss for the period | (4,402) | (26,887) | -83.6% | | Exchange differences on translation of overseas operations | (6,210) | (22,360) | -72.2% | | Total comprehensive loss for the period | (10,640) | (49,317) | -78.4% | - Fair value changes of equity investments at fair value through other comprehensive income shifted from a **loss of HK$54 thousand in 2023** to an **income of HK$140 thousand in 2024**[3](index=3&type=chunk) [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets and total equity slightly decreased, net current assets remained stable, and non-current liabilities slightly reduced Key Data from Condensed Consolidated Statement of Financial Position (As of June 30) | Metric | June 30, 2024 (HK$ '000) | December 31, 2023 (HK$ '000) | Change (%) | | :--------------- | :--------------------- | :---------------------- | :------- | | Total non-current assets | 369,661 | 378,647 | -2.4% | | Total current assets | 1,029,125 | 1,087,770 | -5.4% | | Total current liabilities | 265,246 | 320,546 | -17.2% | | Net current assets | 763,879 | 767,224 | -0.4% | | Net assets | 1,089,448 | 1,100,088 | -1.0% | | Total equity | 1,089,448 | 1,100,088 | -1.0% | - Cash and cash equivalents decreased from **HK$749,021 thousand as of December 31, 2023**, to **HK$672,902 thousand as of June 30, 2024**[4](index=4&type=chunk) - Trade and bills receivables decreased from **HK$181,898 thousand as of December 31, 2023**, to **HK$178,253 thousand as of June 30, 2024**[4](index=4&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The Group's total equity slightly decreased for the six months ended June 30, 2024, primarily due to the loss for the period and a reduction in exchange fluctuation reserve Key Data from Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Metric | June 30, 2024 (HK$ '000) | December 31, 2023 (HK$ '000) | | :--------------- | :--------------------- | :---------------------- | | Total equity | 1,089,448 | 1,100,088 | | Accumulated losses | (178,683) | (176,045) | | Exchange fluctuation reserve | (50,606) | (44,228) | - Total comprehensive loss for the period was **HK$10,640 thousand**, leading to a decrease in equity[6](index=6&type=chunk) - Revaluation reserve for land and buildings transferred to accumulated losses by **HK$3,030 thousand**, while general reserve increased by **HK$1,266 thousand**[6](index=6&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2024, the Group's net cash used in operating activities decreased, but net cash used in investing activities significantly increased, leading to an expanded net decrease in cash and cash equivalents Key Data from Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Activity | 2024 (HK$ '000) | 2023 (HK$ '000) | Change (%) | | :--------------- | :-------------- | :-------------- | :------- | | Net cash used in operating activities | (68,682) | (78,982) | -13.0% | | Net cash used in investing activities | (219,431) | (1,474) | +14786% | | Net cash used in financing activities | (1,629) | (1,675) | -2.7% | | Net decrease in cash and cash equivalents | (289,742) | (82,131) | +252.8% | | Cash and cash equivalents at end of period | 453,768 | 629,128 | -27.9% | - Cash outflow from investing activities significantly increased, primarily due to an increase of **HK$219,134 thousand** in unpledged time deposits with original maturity over three months at acquisition[9](index=9&type=chunk) - Analysis of cash and cash equivalents at period-end shows unpledged time deposits significantly increased from **HK$99,441 thousand in 2023** to **HK$600,741 thousand in 2024**[9](index=9&type=chunk) Notes to the Condensed Consolidated Interim Financial Statements [1. Basis of Preparation](index=11&type=section&id=1.%20Basis%20of%20Preparation) This condensed consolidated interim financial information is prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, presented in Hong Kong dollars - The financial information is prepared in accordance with **Hong Kong Accounting Standard 34 Interim Financial Reporting** and **Appendix D2 of the Listing Rules**[10](index=10&type=chunk) - All amounts are rounded to the nearest **thousand Hong Kong dollars**[10](index=10&type=chunk) [2. Changes in Accounting Policies and Disclosures](index=11&type=section&id=2.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) Several revised HKFRSs were adopted for the first time this period, including lease liabilities in sale and leaseback, classification of liabilities as current or non-current, and supplier finance arrangements, but these revisions had no significant impact on the Group's financial position or performance - Adopted **HKFRS 16 (Amendments)**, **HKAS 1 (Amendments)**, and **HKAS 7 and HKFRS 7 (Amendments)**, among others[11](index=11&type=chunk) - The amendments had **no impact** on the Group's financial position or performance, and liability classification remained unchanged[11](index=11&type=chunk)[12](index=12&type=chunk) [3. Revenue](index=12&type=section&id=3.%20Revenue) The Group's revenue primarily derives from contracts with customers, with sales of information products and software being the main source, all from mainland China, and revenue recognized when goods are transferred at a point in time Revenue Analysis (For the six months ended June 30) | Revenue Source | 2024 (HK$ '000) | 2023 (HK$ '000) | | :------------- | :-------------- | :-------------- | | Revenue from contracts with customers | 382,507 | 370,156 | | Rental income | 2,563 | 2,892 | | **Total Revenue** | **385,070** | **373,048** | - All revenue from contracts with customers is derived from the **sale of information products and software**, entirely from the **Mainland China market**[13](index=13&type=chunk) - Revenue is recognized when **goods are transferred at a point in time**[13](index=13&type=chunk) [4. Other Income and Gains](index=14&type=section&id=4.%20Other%20Income%20and%20Gains) The Group's other income and gains primarily include government grants and bank interest income, with the total amount slightly decreasing Other Income and Gains (For the six months ended June 30) | Item | 2024 (HK$ '000) | 2023 (HK$ '000) | | :--------------- | :-------------- | :-------------- | | Bank interest income | 5,809 | 7,071 | | Government grants | 14,077 | 13,634 | | Gain on disposal of property, plant and equipment | 49 | 12 | | Others | 1,909 | 1,634 | | **Total** | **21,844** | **22,351** | [5. Finance Costs](index=14&type=section&id=5.%20Finance%20Costs) The Group's finance costs primarily consist of interest on lease liabilities, with the amount slightly decreasing compared to the same period last year Finance Costs (For the six months ended June 30) | Item | 2024 (HK$ '000) | 2023 (HK$ '000) | | :----------- | :-------------- | :-------------- | | Interest on lease liabilities | 74 | 89 | [6. Loss Before Tax](index=15&type=section&id=6.%20Loss%20Before%20Tax) Adjustments to the Group's loss before tax include cost of inventories sold, depreciation, impairment provisions, and research and development costs, with the reversal of impairment provision for entrusted loans positively impacting the narrowed loss Adjustments to Loss Before Tax (For the six months ended June 30) | Item | 2024 (HK$ '000) | 2023 (HK$ '000) | | :------------------- | :-------------- | :-------------- | | Cost of inventories sold | 144,299 | 142,091 | | Cost of services provided | 58,144 | 55,690 | | Depreciation of property, plant and equipment | 7,145 | 8,680 | | Impairment of trade receivables | 8,664 | 4,991 | | Reversal of impairment provision for entrusted loans | (9,741) | – | | Provision for obsolete inventories | 8,046 | 1,176 | | Research and development costs | 74,264 | 77,249 | - Reversal of impairment provision for entrusted loans of **HK$9,741 thousand** had a positive impact on the loss before tax for the current period[16](index=16&type=chunk) - Research and development costs for the current period amounted to **HK$74,264 thousand**, a decrease compared to the same period last year[16](index=16&type=chunk) [7. Income Tax](index=16&type=section&id=7.%20Income%20Tax) The Group's income tax for the period is a credit, mainly from deferred tax credit, with Hong Kong profits tax rate at 16.5% and mainland China corporate income tax generally at 25%, though some subsidiaries enjoy preferential rates Income Tax Credit (For the six months ended June 30) | Item | 2024 (HK$ '000) | 2023 (HK$ '000) | | :------------- | :-------------- | :-------------- | | Current - Hong Kong | 10 | – | | Current - Mainland China | 6 | 1 | | Deferred | (859) | (768) | | **Total Tax Credit** | **(843)** | **(767)** | - Hong Kong profits tax rate is **16.5%**, with a preferential rate of **8.25%** for the first **HK$2,000,000** of assessable profits for certain qualifying entities[18](index=18&type=chunk) - China corporate income tax rate is generally **25%**, with some subsidiaries enjoying preferential rates of **5% or 15%**[19](index=19&type=chunk) [8. Loss Per Share Attributable to Owners of the Parent](index=17&type=section&id=8.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Parent) The Group's basic and diluted loss per share for the six months ended June 30, 2024, was 0.4 HK cents, a significant reduction from the prior period, with no potentially dilutive ordinary shares outstanding during the period Loss Per Share (For the six months ended June 30) | Metric | 2024 (HK cents) | 2023 (HK cents) | | :----------- | :------------ | :------------ | | Basic and diluted loss per share | (0.4) | (2.2) | - Loss per share is calculated based on the unaudited loss for the period attributable to owners of the parent and the weighted average of approximately **1,199,747,000** ordinary shares in issue[20](index=20&type=chunk) - There were **no potentially dilutive ordinary shares** in issue during the current period and the corresponding period last year[20](index=20&type=chunk) [9. Interim Dividend](index=17&type=section&id=9.%20Interim%20Dividend) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2024, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended **June 30, 2024**[20](index=20&type=chunk) [10. Trade and Bills Receivables](index=18&type=section&id=10.%20Trade%20and%20Bills%20Receivables) The Group's total trade and bills receivables slightly decreased, maintaining strict credit control with no significant credit concentration risk Trade and Bills Receivables (As of June 30) | Item | June 30, 2024 (HK$ '000) | December 31, 2023 (HK$ '000) | | :----------- | :--------------------- | :---------------------- | | Trade receivables | 206,995 | 206,346 | | Bills receivables | 17,174 | 13,081 | | Impairment | (45,916) | (37,529) | | **Total** | **178,253** | **181,898** | - Ageing analysis of trade and bills receivables shows that amounts due within **6 months** account for the highest proportion[22](index=22&type=chunk) - Receivables from New Founder Group amounted to **HK$55,000**, a significant decrease from **HK$296,000** at the end of last year[23](index=23&type=chunk) [11. Trade and Bills Payables](index=19&type=section&id=11.%20Trade%20and%20Bills%20Payables) The Group's total trade and bills payables slightly decreased, with most amounts due within 6 months Trade and Bills Payables (As of June 30) | Ageing | June 30, 2024 (HK$ '000) | December 31, 2023 (HK$ '000) | | :----------- | :--------------------- | :---------------------- | | Within 6 months | 36,420 | 44,699 | | 7 to 12 months | 13,869 | 12,601 | | 13 to 24 months | 5,279 | 2,741 | | Over 24 months | 3,542 | 3,361 | | **Total** | **59,110** | **63,402** | - Payables to New Founder Group were approximately **HK$112,000**, largely consistent with **HK$113,000** at the end of last year[24](index=24&type=chunk) [12. Contingent Liabilities](index=19&type=section&id=12.%20Contingent%20Liabilities) As of the end of the reporting period, the Group had no significant contingent liabilities - The Group had **no significant contingent liabilities** as of **June 30, 2024**, and **December 31, 2023**[25](index=25&type=chunk) [13. Related Party Transactions](index=20&type=section&id=13.%20Related%20Party%20Transactions) The Group engaged in several significant related party transactions during the period, including sales of goods to China Ping An and New Founder Group, purchases of goods from New Founder Group, and payments for rent and management fees, all conducted on agreed terms or market prices Related Party Transactions (For the six months ended June 30) | Transaction Type | 2024 (HK$ '000) | 2023 (HK$ '000) | | :----------------- | :-------------- | :-------------- | | Sales of goods to China Ping An | 456 | 96 | | Sales of goods to New Founder Group | 2,015 | 187 | | Purchases of goods from New Founder Group | 388 | 359 | | Rent paid to New Founder | 6,235 | – | | Management fees paid to New Founder Group | 2,348 | 2,602 | - The Company's directors are key management personnel of the Group, with total remuneration paid to key management personnel amounting to **HK$2,334 thousand** during the period, a decrease from the same period last year[29](index=29&type=chunk) [14. Fair Value and Fair Value Hierarchy of Financial Instruments](index=21&type=section&id=14.%20Fair%20Value%20and%20Fair%20Value%20Hierarchy%20of%20Financial%20Instruments) The Group disclosed the carrying amounts, fair values, and fair value measurement hierarchy of its financial instruments, primarily including pledged deposits, equity investments, bills receivables, and financial assets at fair value through profit or loss Carrying Amounts and Fair Values of Financial Instruments (As of June 30) | Item | June 30, 2024 Carrying Amount (HK$ '000) | June 30, 2024 Fair Value (HK$ '000) | | :------------------- | :--------------------------- | :--------------------------- | | Pledged deposits, non-current portion | 1,730 | 1,700 | | Equity investments at fair value through other comprehensive income | 560 | 560 | | Bills receivables | 17,174 | 17,174 | | Financial assets at fair value through profit or loss | 885 | 885 | | **Total** | **20,349** | **20,319** | - The fair value measurement hierarchy shows that **equity investments at fair value through other comprehensive income** and **financial assets at fair value through profit or loss** are classified as Level 1 (quoted prices in active markets), while **bills receivables** are classified as Level 2 (significant observable inputs)[32](index=32&type=chunk) - There were **no financial liabilities measured at fair value** during the current period and last year, and no transfers between Level 1 and Level 2, nor into or out of Level 3 for fair value measurements[34](index=34&type=chunk) [15. Events After the Reporting Period](index=24&type=section&id=15.%20Events%20After%20the%20Reporting%20Period) The Company received notification from the administrator of Peking University Founder Group Company Limited that its entrusted loans were further settled and repaid by approximately RMB 8.9 million (HK$9.7 million) in July 2024 - Entrusted loans from Peking University Founder Group Company Limited were further settled and repaid in **July 2024**, amounting to approximately **RMB 8.9 million (HK$9.7 million)**[37](index=37&type=chunk) - The Company will continue to closely monitor the subsequent developments and impact of this event, as well as the status of the entrusted loan receivables from Peking University Founder[37](index=37&type=chunk) [16. Approval of the Condensed Consolidated Interim Financial Information](index=24&type=section&id=16.%20Approval%20of%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) This condensed consolidated interim financial information was approved and authorized for issue by the Board of Directors on August 27, 2024 - The condensed consolidated interim financial information was approved and authorized for issue by the Board of Directors on **August 27, 2024**[38](index=38&type=chunk) Management Discussion and Analysis [Overall Performance](index=24&type=section&id=Overall%20Performance) The Group's consolidated loss for the six months ended June 30, 2024, significantly narrowed, primarily due to a slight increase in turnover, reduced selling and distribution expenses, administrative expenses, and other net expenses, as well as a one-off gain from the reversal of impairment provision for entrusted loans Key Data on Overall Performance (For the six months ended June 30) | Metric | 2024 (HK$ '000) | 2023 (HK$ '000) | Change (%) | | :--------------- | :-------------- | :-------------- | :------- | | Consolidated loss attributable to owners of the parent | 4,400 | 26,900 | -83.6% | | Turnover | 385,100 | 373,000 | +3.2% | | Gross profit | 174,600 | 174,100 | +0.3% | | Gross profit margin | 45.3% | 46.7% | -1.4pp | | Selling and distribution expenses, administrative expenses and other net expenses | 201,600 | 223,900 | -10.0% | - The reduction in loss was primarily attributable to a **one-off gain from the reversal of impairment provision** for entrusted loans from Peking University Founder Group Company Limited, **reduced staff costs**, and **lower foreign exchange losses** due to smaller fluctuations in the RMB against the HKD[38](index=38&type=chunk) [Business Review and Outlook](index=25&type=section&id=Business%20Review%20and%20Outlook) The Group's font, printing, and media businesses made progress in product innovation, technological upgrades, market promotion, and business model transformation, particularly in AI-assisted design, inkjet printing technology, and media convergence large model applications [Font Business](index=25&type=section&id=Font%20Business) Founder Font continues to innovate in font design, technology, marketing services, and market promotion, actively responding to national initiatives, advancing the 'Chinese Masterpiece Font Project,' and leveraging AI technology to enhance design efficiency and service capabilities - Advancing the development of the **'Chinese Masterpiece Font Project,'** with Japanese versions of four exquisite fonts, including Yan Zhenqing Regular Script, Liu Gongquan Regular Script, Su Shi Running Script, and Cuan Baozi Stele Regular Script, now available[39](index=39&type=chunk) - Continuously promoting the application of **AI-assisted font design technology** to enhance design efficiency; utilizing AI technology to improve font recognition and intelligent recommendation capabilities[39](index=39&type=chunk) - Building a comprehensive service system, including the official website, **'Zijia' mini-program**, and PC client, and strengthening market promotion through design competitions and industry forums[39](index=39&type=chunk) [Printing Business](index=26&type=section&id=Printing%20Business) China's printing industry is expected to gradually recover, and Founder Jet, a wholly-owned subsidiary, is deeply engaged in inkjet technology, launching multiple high-speed inkjet printing presses and software products, and actively expanding domestic and international markets - China's printing and recording media reproduction industry saw a **9% year-on-year increase** in operating revenue, with a gradual recovery expected in **2024**[40](index=40&type=chunk) - Founder Jet launched new products such as the **Founder Jieying P6600CHD-33 high-speed coated paper inkjet web press**, **Founder Jieying D330HD high-speed sheet-fed inkjet press**, and **Founder Yunshu 4.0**, which have entered the promotion and sales phase[40](index=40&type=chunk) - Installation volume of high-speed inkjet printing equipment significantly increased in the **first half of 2024**, with equipment and consumables sales expected to **substantially exceed the same period last year** in the second half, and multiple equipment models to achieve overseas sales and installation[40](index=40&type=chunk) [Media Business](index=28&type=section&id=Media%20Business) The media business focuses on media convergence and integrated publishing policies, actively applying AI technology to develop a new generation of intelligent media open platforms and smart proofreading systems, and promoting a business model transformation towards service-oriented, expanding into the pan-media market - National policies promote the deep integration of city-level media, with **146 city-level integrated media centers** established nationwide as of **June 2024**, accounting for **40%**[41](index=41&type=chunk) - The Publicity Department of the CPC Central Committee issued the **'Implementation Opinions on Promoting Deep Integration and Development of Publishing,'** driving the digital, networked, and intelligent transformation of the publishing industry[42](index=42&type=chunk) - Intensifying the development and iteration of the new generation intelligent media open platform **'Founder Yunque Integrated Media Platform,'** deepening research and development of data and AI middle platforms, and releasing **Founder Magic Cube Media Large Model** and **Intelligent Creator V2.0**, focusing on event understanding, knowledge Q&A, and multimodal generation[43](index=43&type=chunk) - Released **Founder Smart Proofreading 5.0**, incorporating large model technology to comprehensively enhance ideological content review capabilities, intelligent error correction, and launching **AI Editing Assistant**[44](index=44&type=chunk) - Actively promoting the business model transformation from software solutions to **licensing services, SaaS services, software services, and data services**, with service-oriented business revenue accounting for **over 50%** in the first half of 2024[45](index=45&type=chunk) [Outlook](index=32&type=section&id=Outlook) The Group's management will closely monitor changes in China's economy and IT market, continuously develop innovative solutions, effectively control costs, and seek new investment opportunities to enhance shareholder value - Management will continue to develop innovative solutions, providing more **cost-effective products and solutions** to meet customer needs and enhance competitiveness[46](index=46&type=chunk) - Closely monitor the performance of various business segments to achieve **effective cost control** and **maximize shareholder value**[46](index=46&type=chunk) - The Group has been seeking **new investment opportunities** in software development and system integration businesses to broaden its revenue and profit base[50](index=50&type=chunk) [Employees](index=32&type=section&id=Employees) The Group implements performance and merit-based human resource policies, offering competitive remuneration, on-the-job training, and retirement benefits, with approximately 1,039 employees as of June 30, 2024 - The Group formulates human resource policies based on performance and merit, offering **competitive remuneration, bonuses, retirement benefit schemes, and medical insurance**[46](index=46&type=chunk) - As of **June 30, 2024**, the Group had approximately **1,039 employees** (December 31, 2023: 1,043 employees)[46](index=46&type=chunk) - No share options were granted to eligible directors and employees during the current interim period[46](index=46&type=chunk) [Financial Review](index=33&type=section&id=Financial%20Review) The Group maintains a sound financial position with no interest-bearing bank borrowings, ample liquidity, a low gearing ratio, and robust financial policies and risk management [Liquidity, Financial Resources and Capital Commitments](index=33&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Commitments) As of June 30, 2024, the Group had no interest-bearing bank borrowings, total assets of HK$1,398.8 million, a gearing ratio of 0.2%, and a current ratio of 3.88, indicating a healthy liquidity position - As of **June 30, 2024**, the Group had **zero interest-bearing bank borrowings**[47](index=47&type=chunk) Financial Resources and Ratios (As of June 30) | Metric | June 30, 2024 (HK$ million) | December 31, 2023 (HK$ million) | | :--------------- | :----------------------- | :------------------------ | | Total assets | 1,398.8 | 1,466.4 | | Liabilities | 309.4 | 366.3 | | Equity | 1,089.4 | 1,100.1 | | Net asset value per share | 0.91 HK dollars | 0.92 HK dollars | | Total cash and bank balances | 677.2 | 753.9 | | Gearing ratio | 0.2% | 0.3% | | Current ratio | 3.88 | 3.39 | - Prepayments, deposits, and other receivables increased by **46.0% to HK$68.9 million**, while other payables and accrued liabilities decreased by **29.1% to HK$146.5 million**[47](index=47&type=chunk) [Financial Policy](index=33&type=section&id=Financial%20Policy) The Group implements a prudent financial policy with strict cash and risk management, holding cash surpluses primarily in HKD, RMB, and USD as short-term deposits - The Group implements a **prudent financial policy**, with strict control over its cash and risk management[48](index=48&type=chunk) - Cash and cash equivalents are primarily held in **HKD, RMB, and USD**, with cash surpluses placed in short-term deposits[48](index=48&type=chunk) [Exchange Rate Fluctuation Risk and Related Hedging](index=33&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Related%20Hedging) The Group faces minimal exchange rate fluctuation risk due to the stable USD to HKD exchange rate and RMB-denominated mainland China operations, currently not employing any financial instruments for hedging - The **USD to HKD exchange rate is relatively stable**, resulting in extremely low related exchange rate risk[49](index=49&type=chunk) - Most transactions for mainland China operations are denominated in **RMB**, and the conversion of RMB to foreign currencies is subject to **China's government foreign exchange controls**[49](index=49&type=chunk) - The Group faces **minimal exchange rate fluctuation risk** and does not use any financial instruments for hedging purposes[49](index=49&type=chunk) [Contracts](index=33&type=section&id=Contracts) As of June 30, 2024, the Group's major software development and information product distribution business contracts amounted to approximately HK$476.9 million, all expected to be completed within one year Value of Major Business Contracts (As of June 30) | Item | June 30, 2024 (HK$ million) | December 31, 2023 (HK$ million) | | :----------- | :----------------------- | :------------------------ | | Total contract value | 476.9 | 329.2 | - All contracts are expected to be completed within **one year**[49](index=49&type=chunk) [Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures and Material Investments](index=33&type=section&id=Significant%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%2C%20Associates%20and%20Joint%20Ventures%20and%20Material%20Investments) For the six months ended June 30, 2024, the Group had no significant acquisitions or disposals of subsidiaries, associates, and joint ventures, nor any material investments - The Group had **no significant acquisitions or disposals** of subsidiaries, associates, and joint ventures, nor any material investments during the current interim period[49](index=49&type=chunk) [Pledge of Assets](index=34&type=section&id=Pledge%20of%20Assets) As of June 30, 2024, approximately HK$4.3 million of the Group's bank deposits were pledged to banks as collateral for banking facilities granted - As of **June 30, 2024**, approximately **HK$4,300,000** of the Group's bank deposits were pledged to banks[50](index=50&type=chunk) - The pledged deposits serve as collateral for **banking facilities granted**[50](index=50&type=chunk) [Future Plans for Material Investments or Capital Assets](index=34&type=section&id=Future%20Plans%20for%20Material%20Investments%20or%20Capital%20Assets) As of June 30, 2024, the Group had no specific future plans for material investments or capital assets but continues to seek new investment opportunities in software development and system integration businesses - As of **June 30, 2024**, the Group had **no specific future plans** for material investments or capital assets[50](index=50&type=chunk) - The Group has been seeking **new investment opportunities** in software development and system integration businesses to broaden its revenue and profit base and enhance shareholder value in the long term[50](index=50&type=chunk) [Contingent Liabilities](index=34&type=section&id=Contingent%20Liabilities) As of June 30, 2024, the Group had no significant contingent liabilities - The Group had **no significant contingent liabilities** as of **June 30, 2024**[51](index=51&type=chunk) [Events After the Reporting Period](index=34&type=section&id=Events%20After%20the%20Reporting%20Period) The Company received notification from the administrator of Peking University Founder Group Company Limited that its entrusted loans were further settled and repaid by approximately RMB 8.9 million (HK$9.7 million) in July 2024 - Entrusted loans from Peking University Founder Group Company Limited were further settled and repaid in **July 2024**, amounting to approximately **RMB 8.9 million (HK$9.7 million)**[52](index=52&type=chunk) - The Company will continue to closely monitor the subsequent developments and impact of this event, as well as the status of the entrusted loan receivables from Peking University Founder[52](index=52&type=chunk) Other Information [Directors' Interests and Short Positions in Shares, Underlying Shares and Debentures](index=33&type=section&id=Directors'%20Interests%20and%20Short%20Positions%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2024, Mr. Shao Hang and Mr. Zhang Jianguo directly beneficially owned ordinary shares of the Company, with no other directors having disclosable interests or short positions Directors' Long Positions in the Company's Ordinary Shares (As of June 30) | Name of Director | Capacity and Nature of Interest | Number of Ordinary Shares Held | Percentage of the Company's Issued Share Capital | | :--------- | :------------- | :------------- | :------------------------- | | Mr. Shao Hang | Directly beneficially owned | 12,685,556 | 1.05% | | Mr. Zhang Jianguo | Directly beneficially owned | 1,160,000 | 0.09% | - Save as disclosed above, no director had any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations that were required to be recorded under **Section 352 of the Securities and Futures Ordinance** or otherwise notified to the Company and the Stock Exchange under the Model Code[52](index=52&type=chunk) [Substantial Shareholders' and Other Persons' Interests in Shares and Underlying Shares](index=36&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20in%20Shares%20and%20Underlying%20Shares) As of June 30, 2024, China Ping An Insurance (Group) Company of China, Ltd. and its associated companies held 30.60% of the Company's issued share capital through controlled entities, making them substantial shareholders Substantial Shareholders' Long Positions in the Company's Ordinary Shares (As of June 30) | Name | Capacity and Nature of Interest | Number of Ordinary Shares Held | Percentage of the Company's Issued Share Capital | | :----------------------- | :----------------- | :------------- | :------------------------- | | China Ping An Insurance (Group) Company of China, Ltd. | Through a controlled corporation | 367,179,610 | 30.60% | | Ping An Life Insurance Company of China, Ltd. | Through a controlled corporation | 367,179,610 | 30.60% | | New Founder (Beijing) Enterprise Management Development Co., Ltd. | Through a controlled corporation | 367,179,610 | 30.60% | | New Founder Holdings Development Co., Ltd. | Through a controlled corporation | 367,179,610 | 30.60% | | Founder Information Industry Co., Ltd. | Directly beneficially owned | 367,179,610 | 30.60% | - China Ping An is deemed to be interested in **367,179,610 shares** by virtue of its interest in Ping An Life, which in turn controls Founder Information Industry Co., Ltd.[53](index=53&type=chunk)[54](index=54&type=chunk) [Purchase, Redemption or Sale of the Company's Listed Securities](index=36&type=section&id=Purchase%2C%20Redemption%20or%20Sale%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2024, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - Neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities during the current interim period[56](index=56&type=chunk) [Corporate Governance](index=36&type=section&id=Corporate%20Governance) For the six months ended June 30, 2024, the Company complied with all code provisions of the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited - The Company has complied with all code provisions of the **Corporate Governance Code** set out in **Appendix C1 of the Listing Rules**[56](index=56&type=chunk) [Model Code for Securities Transactions by Directors of Listed Issuers](index=36&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors%20of%20Listed%20Issuers) The Company has adopted a model code no less exacting than that set out in Appendix C3 of the Listing Rules, and all directors confirmed compliance with it - The Company has adopted a **model code** with terms no less exacting than those set out in **Appendix C3 of the Listing Rules**[56](index=56&type=chunk) - All directors confirmed their compliance with the **Model Code for Securities Transactions by Directors** during the accounting period covered by the interim report[56](index=56&type=chunk) [Audit Committee](index=36&type=section&id=Audit%20Committee) The Company's Audit Committee, together with management, reviewed the Group's condensed consolidated interim financial statements for the six months ended June 30, 2024 - The Audit Committee has reviewed the Group's condensed consolidated interim financial statements for the six months ended **June 30, 2024**, including the accounting principles adopted[56](index=56&type=chunk) [Changes in Directors' Information](index=36&type=section&id=Changes%20in%20Directors'%20Information) Mr. Hu Bin resigned as Executive Director, and Mr. Li Shuofeng was appointed as Executive Director, both effective from April 10, 2024 - Mr. Hu Bin resigned as an Executive Director of the Company, effective from **April 10, 2024**[56](index=56&type=chunk) - Mr. Li Shuofeng was appointed as an Executive Director of the Company, effective from **April 10, 2024**[56](index=56&type=chunk) [Board of Directors](index=36&type=section&id=Board%20of%20Directors) As of the report date, the Board of Directors comprises six executive directors and three independent non-executive directors - The Board of Directors comprises Executive Directors Mr. Qi Zixin (Chairman), Mr. Shao Hang (President), Mr. Wang Jinchao, Mr. Zhang Jianguo, Ms. Wu Jing, and Mr. Li Shuofeng, as well as Independent Non-executive Directors Mr. Chan Chung Chak, Mr. Lai Nga Ming, and Mr. Zhai Zhisheng[57](index=57&type=chunk)

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 385,070,000, an increase from HKD 373,048,000 in the same period of 2023, representing a growth of approximately 3%[1] - The gross profit for the same period was HKD 174,581,000, slightly up from HKD 174,091,000 year-on-year[1] - The company incurred a loss before tax of HKD 5,245,000, a significant improvement compared to a loss of HKD 27,654,000 in the previous year[1] - The net loss attributable to the owners of the parent company for the period was HKD 4,402,000, compared to HKD 26,887,000 in the prior year, indicating a reduction in losses by approximately 84%[1] - Customer contract revenue for the six months ended June 30, 2024, was HKD 382,507,000, an increase of 3.6% compared to HKD 370,156,000 for the same period in 2023[11] - Total rental income for the six months ended June 30, 2024, was HKD 2,563,000, a decrease of 11.4% from HKD 2,892,000 in 2023[11] - Total other income for the six months ended June 30, 2024, was HKD 21,844,000, a slight decrease of 2.3% from HKD 22,351,000 in 2023[12] - Bank interest income for the six months ended June 30, 2024, was HKD 5,809,000, down 17.8% from HKD 7,071,000 in 2023[12] - The cost of goods sold for the six months ended June 30, 2024, was HKD 144,299,000, an increase of 1.5% from HKD 142,091,000 in 2023[13] - The provision for obsolete inventory for the six months ended June 30, 2024, was HKD 8,046,000, significantly higher than HKD 1,176,000 in 2023[13] - Basic and diluted loss per share attributable to equity holders was HKD 0.004 for the six months ended June 30, 2024, compared to HKD 0.022 for the same period last year[21] Assets and Liabilities - The total non-current assets as of June 30, 2024, amounted to HKD 369,661,000, down from HKD 378,647,000 at the end of 2023[3] - Current assets decreased to HKD 1,029,125,000 from HKD 1,087,770,000, reflecting a decline of about 5.4%[3] - The company's cash and cash equivalents were reported at HKD 672,902,000, a decrease from HKD 749,021,000, indicating a reduction of approximately 10.1%[3] - Total liabilities decreased from HKD 320,546,000 to HKD 265,246,000, showing a reduction of about 17.3%[3] - The equity attributable to the owners of the parent company was HKD 1,089,448,000, down from HKD 1,100,088,000, reflecting a decrease of approximately 1%[4] - As of June 30, 2024, the total asset value of the group is HKD 1,398,800,000, with liabilities of HKD 309,400,000 and equity of HKD 1,089,400,000[42] - The net asset value per share decreased to HKD 0.91 from HKD 0.92 as of December 31, 2023, due to losses and foreign exchange differences[42] - Cash and bank balances totaled HKD 677,200,000 as of June 30, 2024, down from HKD 753,900,000 as of December 31, 2023[42] - The group's asset-to-liability ratio is 0.2% as of June 30, 2024, compared to 0.3% as of December 31, 2023[42] - Prepayments and other receivables increased by 46.0% to HKD 68,900,000 from HKD 47,200,000 as of December 31, 2023, due to increased purchasing volume[42] - Other payables and accrued liabilities decreased by 29.1% to HKD 146,500,000 from HKD 206,700,000 as of December 31, 2023, due to dividend payments[42] Corporate Governance and Compliance - The board of directors is composed of several executive and independent non-executive directors, ensuring diverse governance[54] - The company is committed to adhering to all regulatory requirements as outlined in the mid-term report[54] - The report will include all necessary information as per listing rules, highlighting transparency and compliance[54] - The chairman of the board is Qi Zixin, indicating leadership continuity[54] - The company is focused on maintaining strong corporate governance practices[54] Market and Industry Insights - The revenue of the printing and recording media replication industry in China reached 97.1 billion yuan in January and February 2024, representing a year-on-year growth of 9%[24] - The total profit for the printing industry in the same period was 4 billion yuan, with operating costs amounting to 81.3 billion yuan, which grew by 8% year-on-year[24] - The manufacturing PMI index rebounded to 50.8% in March 2024, indicating a return to expansion in the manufacturing sector[24] Product Development and Innovation - The company launched several new products, including the P6600CHD-33 high-speed inkjet printing machine, which has shown stable operation and exceptional print quality at multiple customer sites[25] - The D330HD high-speed inkjet machine is currently in trial use and is expected to have a broad market outlook due to its flexibility and high-quality printing capabilities[25] - The company anticipates significant growth in equipment and consumable sales in the second half of 2024, surpassing the same period last year[25] - The company is optimistic about international market expansion, expecting multiple overseas sales and installations in the second half of the year[25] Customer Engagement and Marketing - The company continues to enhance customer service and collaboration with design and advertising firms, aiming to provide comprehensive service systems[23] - The company is actively participating in industry forums to strengthen its professional brand image and international presence[23] - In 2024, the company held multiple customer site visits for new equipment users, significantly boosting sales activities[26] - At the Drupa exhibition, the company collaborated with partners for equipment promotion, resulting in the addition of several international agents to support global product sales[26] - The company received extensive media coverage and expert reports following its presentation on inkjet printing technology trends at the "2024 Printing Innovation Technology Exchange Seminar"[26] Digital Transformation and AI Integration - The company is focusing on mobile news client development as a key area for local media center construction in 2024[29] - The company is actively participating in social governance modernization and exploring a business model that integrates government, commerce, and services[29] - The company is committed to building a new type of mainstream media with strong influence and competitiveness[29] - The company is leveraging the momentum from the Drupa exhibition to enhance its brand image as a printing expert and solidify its leadership position in inkjet printing[27] - The company plans to implement a digital publishing quality platform selection and recommendation plan in 2024, focusing on the integration of publishing development[30] - The integration of artificial intelligence technologies, particularly generative AI, is being actively explored across various media sectors, enhancing content production efficiency[32] - The company plans to enhance its new generation smart media open platform, "Fangzheng Cloud Sparrow Media Platform," by deepening the development of data and AI middle platforms[35] - The launch of the "Fangzheng Magic Cube Media Model" and its AIGC-assisted tool aims to innovate and add value to the media industry[35] - The company is set to release version 2.0 of the "Fangzheng Magic Cube Intelligent Creator," focusing on improving content generation accuracy and efficiency[35] - The integration of AI technology into traditional publishing processes is expected to enhance content production efficiency and quality[34] - The company emphasizes the importance of building a unified media platform at the municipal level to promote resource integration and upgrade news client services[32] - The focus on intelligent publishing business processes aims to achieve a significant upgrade in product services through new technology[34] - The company is committed to advancing the deep integration of traditional and digital publishing to create new productive forces in the publishing industry[31] Shareholder Communication and Reporting - The mid-term report for 2024 will be sent to shareholders and published on the Hong Kong Stock Exchange website and the company's website[54] - The report is expected to provide insights into the company's performance and future strategies[54] - The company aims to enhance shareholder communication through timely dissemination of financial information[54] - The mid-term report will reflect the company's operational performance and market positioning[54] - The report will be available for public access, promoting accountability and investor relations[54]

Financial Performance - The company reported a revenue of HKD 982 million for the year 2023, representing a 2.6% increase from HKD 958 million in 2022[5]. - The net profit attributable to shareholders increased by 72.0% to HKD 60 million, compared to HKD 35 million in the previous year[5]. - Basic and diluted earnings per share rose to HKD 0.050 from HKD 0.029 in the previous year[9]. - Total sales and distribution expenses and administrative expenses decreased by 10.7% to HKD 285.4 million, down from HKD 319.7 million in 2022[10]. - Other income and gains increased by 3.4% to HKD 55.5 million, compared to HKD 53.7 million in the previous year[10]. - The company's cash and cash equivalents increased by 2.1% to HKD 749 million from HKD 733 million in 2022[5]. - The total liabilities decreased by 15.5% to HKD 366 million, down from HKD 434 million in the previous year[5]. - As of December 31, 2023, the total assets of the group amounted to HKD 1,466,400,000, with liabilities of HKD 366,300,000 and equity of HKD 1,100,100,000[36]. - The net asset value per share increased to HKD 0.92 as of December 31, 2023, up from HKD 0.88 as of December 31, 2022, due to profits and foreign exchange gains[36]. - The group recorded a total cash and bank balance of HKD 753,900,000 as of December 31, 2023, compared to HKD 738,300,000 as of December 31, 2022[37]. - The group’s current ratio improved to 3.39 as of December 31, 2023, from 2.78 as of December 31, 2022[37]. - The group achieved a 15.2% decrease in prepaid expenses, totaling HKD 47,200,000 as of December 31, 2023, due to reduced procurement volumes[37]. - The total value of major contracts on hand was approximately HKD 329,200,000 as of December 31, 2023, an increase from HKD 260,800,000 as of December 31, 2022[42]. Product Development and Market Position - The company launched 468 new font designs in 2023, enhancing its product offerings in the font design market[11]. - The company is focusing on AI-assisted font design technology to improve design efficiency while maintaining quality[11]. - The company achieved over 80% year-on-year growth in sales and installation of high-speed inkjet printing equipment in the first half of 2023[17]. - The company launched several new products, including the Fangzheng Jiying P6600CHD 3.0 and S330 inkjet printing machines, which received positive market feedback during major exhibitions[16]. - The company was selected as one of the eight pilot units for the digital development reform of the printing industry, indicating its leadership in technological advancement[15]. - The company plans to expand its international market presence, having made its first exports of large inkjet printing equipment to Europe and Southeast Asia in 2023[17]. - The company launched the new generation of intelligent media open platform "Fangzheng Yunque Media Platform" in the first half of 2023, focusing on the development of data and AI platforms, utilizing cloud computing and microservices architecture[25]. - The company released the 4.0 version of the intelligent proofreading system, enhancing capabilities in ideological content review, intelligent error correction, and knowledge checking[26]. - The service-oriented business revenue accounted for over 40% in 2023, indicating a shift from product solution sales to a collaborative business model including SaaS and data services[28]. - The company introduced the "Fangzheng Magic Cube Media Large Model" in the second half of 2023, which supports content creation, intelligent response, and multi-modal services[25]. Governance and Compliance - The board of directors consists of six executive directors and three independent non-executive directors as of December 31, 2023[51]. - The company held four regular board meetings during the year, approximately one per quarter, and additional meetings as needed[53]. - All directors confirmed compliance with the standards set forth in the Listing Rules for securities trading throughout the year[50]. - The chairman and CEO roles are separated, with Qi Zixin serving as the chairman and Shao Xing as the president responsible for daily operations[58]. - The company has adopted the corporate governance code and has complied with all provisions except for one deviation related to the absence of the former chairman at the annual general meeting due to health reasons[49]. - The company has established three board committees: the remuneration committee, nomination committee, and audit committee[54]. - The board is responsible for the overall strategy, major acquisitions, capital investments, and significant changes in accounting policies[51]. - The company has arranged appropriate directors' liability insurance to provide indemnity coverage for legal liabilities arising from company activities[53]. - The independent non-executive directors have signed one-year appointment letters, ensuring their independence from the company[59]. - Liu Jiayong resigned as an independent non-executive director on March 16, 2023, leading to non-compliance with listing rules until Zhai Zhisheng was appointed on June 12, 2023[61]. - The remuneration committee held one meeting in 2023 to review the remuneration policy for directors, ensuring competitive compensation based on market rates and workload[62]. - The board consists of nine directors, including three independent non-executive directors, promoting effective oversight and management[66]. - The nomination committee evaluates candidates based on character, qualifications, and commitment to board responsibilities[67]. Environmental, Social, and Governance (ESG) Initiatives - The company has developed appropriate and effective management policies and internal control systems regarding environmental, social, and governance matters[97]. - The report covers significant operational activities of the group, with Founder Electronics accounting for approximately 100% of the group's total revenue[95]. - The board is responsible for assessing and determining the group's environmental, social, and governance-related risks, ensuring the implementation of effective risk management and internal control systems[100]. - The company maintains high transparency and regularly communicates with shareholders to ensure they have access to comprehensive and understandable information[83]. - The environmental, social, and governance report follows the guidelines set out in the Stock Exchange's listing rules, ensuring the principles of materiality, quantification, balance, and consistency are adhered to[96]. - The company has a communication policy aimed at establishing mutual relationships and communication with shareholders, with all financial and disclosure information available on its website[85]. - The company has established a sustainable corporate governance framework to integrate sustainability measures into its business operations[100]. - The group welcomes stakeholder feedback on its sustainability performance and encourages suggestions for improvement[98]. - The total greenhouse gas emissions from purchased electricity in 2023 amounted to 980,223 kg CO2 equivalent, a decrease from 1,218,133 kg in 2022[107]. - The per capita greenhouse gas emissions increased slightly from approximately 665 kg in 2022 to about 670 kg in 2023[112]. - The company has implemented energy-saving measures to encourage employees to reduce electricity consumption[112]. - The company has developed a "Fully Integrated Printing Factory Solution" to optimize material usage and reduce waste in the printing process[115]. - The high-end digital inkjet printing technology developed by the company maximizes ink utilization and reduces non-recyclable waste[116]. - The company has set the minimum air conditioning temperature at 25.5 degrees Celsius during office hours to optimize resource use[119]. - The company has not produced any hazardous waste during the reporting year and has ensured proper disposal of non-hazardous waste[114]. - The company continues to focus on improving resource utilization rates and recycling efforts across its operations[114]. Employee Engagement and Welfare - The company employs 1,043 staff, with 425 females, representing 40.7% of the workforce, indicating a commitment to gender diversity[66]. - A total of 2,045 participants engaged in various training activities in 2023, enhancing employee integration into company culture and improving overall capabilities[139]. - The company has implemented measures to encourage carpooling and the use of public transportation to reduce road congestion and vehicle emissions[125]. - The company has established a high-quality accommodation environment for employees, enhancing their living conditions and overall morale[176]. - The training program for new managers includes online learning and offline workshops to clarify key competencies and management knowledge[150]. - The company emphasizes equal employment opportunities and strictly adheres to principles of fairness and non-discrimination in salary and promotion[155]. - The company has a quarterly onboarding training program for new employees to help them understand the company's strategy and culture[154]. - The company organized a Mid-Autumn Festival event with over 500 employees participating, enhancing team cohesion and company culture[180]. Supply Chain Management - The company emphasizes supply chain management quality, prioritizing local suppliers to reduce transportation costs and greenhouse gas emissions[182]. - The company has established strict supplier selection criteria, requiring suppliers to have environmental assessment qualifications to avoid negative environmental impacts[185]. - The company conducts comprehensive evaluations of suppliers based on their operational qualifications and financial status to ensure reliability[193]. - The company regularly assesses existing suppliers on various dimensions, including product quality, delivery timeliness, and service satisfaction, with a scoring system that can terminate partnerships if scores fall below 60[195]. - The company has implemented a supplier introduction process that adheres to principles of fairness, justice, and openness, ensuring thorough evaluations before new partnerships[190]. - The company focuses on selecting suppliers that can provide environmentally friendly products and services, aligning with sustainability goals[196]. - The company holds regular evaluations of suppliers, either quarterly or annually, based on different assessment factors[197]. - The company rewards employees for effective environmental improvement suggestions, fostering a culture of innovation and responsibility[180]. - The company has a structured approach to supplier management, ensuring that all suppliers meet specific business and environmental standards before engagement[189]. - The company emphasizes strategic partnerships with environmentally compliant suppliers to provide high-quality products in line with national environmental policies[198]. - New suppliers in specialized product areas must provide relevant certifications, such as 3C certification, before collaboration is approved[198]. - The company aims to reduce unnecessary packaging for short-distance shipments to lower procurement costs and conserve resources[198]. - For liquid product suppliers, the company will optimize packaging materials and specifications to reduce overall packaging usage while meeting market demands[198]. - The company has increased management oversight of suppliers to address damages during transportation, requiring appropriate insurance and potential compensation for losses[200]. - On-site evaluations of production suppliers will include assessments of production environment, personnel management, and equipment management[200].

Financial Performance - The company's total revenue for the year ended December 31, 2023, was HKD 982,029,000, representing an increase of 2.4% compared to HKD 957,578,000 in 2022[3] - Gross profit for the same period was HKD 484,870,000, slightly down from HKD 489,913,000 in the previous year, indicating a decrease of 1.1%[3] - The net profit for the year was HKD 59,756,000, which is a significant increase of 72.0% compared to HKD 34,751,000 in 2022[4] - Basic and diluted earnings per share increased to HKD 0.050, up from HKD 0.029 in the previous year, reflecting a growth of 72.4%[4] - The company reported a pre-tax profit of HKD 58,047,000, down 62.4% from HKD 154,225,000 in 2022[3] - Other income and gains for the year were HKD 55,534,000, compared to HKD 53,683,000 in the previous year, showing a growth of 3.4%[3] - The total comprehensive income for the year was HKD 50,020,000, compared to a loss of HKD 43,335,000 in the previous year, indicating a turnaround[6] Assets and Liabilities - Total assets decreased from HKD 1,483,464 thousand in 2022 to HKD 1,466,418 thousand in 2023, a decline of approximately 1.15%[8] - Non-current assets totaled HKD 378,647 thousand in 2023, down from HKD 406,969 thousand in 2022, representing a decrease of about 6.93%[8] - Current assets increased slightly from HKD 1,076,765 thousand in 2022 to HKD 1,087,770 thousand in 2023, an increase of approximately 1.03%[8] - Current liabilities decreased significantly from HKD 387,239 thousand in 2022 to HKD 320,546 thousand in 2023, a reduction of about 17.25%[8] - The total liabilities decreased from HKD 433,666 thousand in 2022 to HKD 366,329 thousand in 2023, a reduction of approximately 15.5%[8] Equity and Cash Flow - The net asset value increased from HKD 1,050,068 thousand in 2022 to HKD 1,100,088 thousand in 2023, reflecting a growth of approximately 4.76%[9] - Cash and cash equivalents rose from HKD 733,315 thousand in 2022 to HKD 749,021 thousand in 2023, an increase of about 2.14%[8] - The group recorded cash and bank balances totaling HKD 753,900,000 as of December 31, 2023, compared to HKD 738,300,000 on December 31, 2022[75] - The group’s debt-to-equity ratio is 0.3% as of December 31, 2023, down from 0.4% on December 31, 2022[75] Market and Product Development - The company plans to focus on market expansion and new product development in the upcoming year, aiming to enhance its competitive position[2] - In 2023, the company launched 468 new font styles, including custom fonts for brands like vivo and Douyin, to enhance brand identity[48] - The company is advancing artificial intelligence-assisted font design technology to improve design efficiency while ensuring quality[50] - The company is focusing on the development of high-speed inkjet technology as a long-term trend to replace traditional offset printing[52] - The company made its first exports of large inkjet printing equipment to Europe and Southeast Asia in 2023, marking a significant step towards international market expansion[56] Awards and Recognition - The company received multiple awards at the 2023 China Journalism Technology Annual Conference, including the "2023 China Journalism Technology Innovation Enterprise Award" and recognition for its collaborative projects with various media units[69] - The Fangzheng Jiying P5600/4400HD high-definition black and white inkjet printer received the "2023 China Printing User Satisfaction Equipment" award[59] Corporate Governance - The company has fully complied with the corporate governance code as of December 31, 2023, with the exception of the absence of the former chairman at the annual general meeting due to health reasons[87] - All directors confirmed adherence to the standard code for securities trading as of December 31, 2023[89] Future Outlook - The company anticipates a market recovery post-November 2023, hoping for sustained positive trends in sales[56] - The publication industry is expected to undergo significant digital transformation driven by policies aimed at building a new integrated content production and dissemination system[62]

Financial Performance - For the six months ended June 30, 2023, the company reported a revenue of HKD 373,048,000, an increase of 15.5% compared to HKD 323,193,000 for the same period in 2022[18]. - The gross profit for the same period was HKD 174,091,000, representing a gross margin of 46.7%, up from HKD 154,012,000 in 2022[18]. - The company incurred a loss of HKD 26,887,000 for the six months ended June 30, 2023, a significant improvement from a loss of HKD 63,072,000 in the prior year, reflecting a reduction of 57.4%[10]. - The total comprehensive loss for the period was HKD 49,317,000, down from HKD 92,904,000 in the previous year, marking a decrease of 46.9%[10]. - The company reported a basic and diluted loss per share of HKD 2.2, compared to HKD 5.3 in the same period last year, reflecting an improvement of 58.5%[18]. - The company reported a loss attributable to equity holders of HKD (63,072,000) for the period, compared to a loss of HKD (334,457,000) for the same period in 2022[46]. - For the six months ended June 30, 2023, the pre-tax loss was HKD 27,654,000, an improvement from a loss of HKD 64,699,000 in the same period of 2022, representing a 57% reduction in losses[59]. - The net cash used in operating activities for the six months ended June 30, 2023, was HKD 78,982,000, compared to HKD 129,659,000 for the same period in 2022, indicating a 39% improvement[59]. Revenue and Income - Other income and gains increased to HKD 22,351,000 from HKD 20,749,000, indicating a growth of 7.7% year-over-year[18]. - Customer contract revenue increased to HKD 370,156,000 for the six months ended June 30, 2023, up from HKD 320,828,000 for the same period in 2022, reflecting a growth of about 15%[38]. - Total revenue for the six months ended June 30, 2023, was HKD 373,048,000, compared to HKD 323,193,000 in the prior year, marking an increase of approximately 15%[38]. - The company reported bank interest income of HKD 7,071,000 for the six months ended June 30, 2023, compared to HKD 4,397,000 in the previous year, an increase of approximately 61%[31]. - Other income and gains increased by 7.7% to approximately HKD 22.4 million, driven by higher bank interest income[127]. Expenses and Liabilities - The company's administrative expenses decreased to HKD 35,428,000 from HKD 40,189,000, showing a reduction of 11.5%[18]. - The financial expenses for the period were reduced to HKD 89,000 from HKD 165,000, indicating a decrease of 46.1%[18]. - Total liabilities decreased to HKD 360,910,000 as of June 30, 2023, from HKD 433,666,000 as of December 31, 2022, indicating a decrease of approximately 17%[23]. - The group’s trade payables included amounts payable to the New Fangzheng Group of approximately HKD 120,000,000, down from HKD 402,000,000 at the end of 2022, a decrease of 70.1%[85]. - Other payables and accrued liabilities decreased by 41.1% to HKD 150,900,000 due to the distribution of bonuses during the reporting period[138]. Assets and Equity - The company's total assets as of June 30, 2023, were HKD 1,000,751,000, a decrease from HKD 1,050,068,000 at the end of 2022[12]. - The company's net assets decreased to HKD 1,000,751,000 as of June 30, 2023, from HKD 1,050,068,000 as of December 31, 2022, representing a decrease of approximately 5%[23]. - The total equity attributable to the owners of the parent remained unchanged at HKD 119,975,000 as of June 30, 2023[23]. - The group reported a total tax credit of HKD 1,627,000 for the period, compared to a tax credit of HKD 1,665,000 in the previous year[81]. - The group’s total liabilities as of June 30, 2023, were not disclosed, but the absence of significant contingent liabilities was noted[86]. Operational Developments - The company plans to focus on market expansion and new product development in the upcoming quarters to drive future growth[19]. - The company launched the upgraded version 4.0 of its intelligent proofreading system in the first half of 2023, enhancing capabilities in ideological content review and intelligent error correction[52]. - The company continues to enhance its SaaS service model for collaborative editing platforms aimed at small and medium publishing clients[52]. - The company is focusing on digital transformation in the publishing industry, with initiatives to enhance digital publishing and establish a new integrated content production and dissemination system[126]. - The company plans to launch a dedicated digital workflow software for inkjet printing applications in the second half of 2023, aimed at optimizing automation in production systems[131]. Market and Strategic Initiatives - The company is actively pursuing technological innovation in the printing industry, particularly through the iterative upgrade of digital inkjet printing equipment[129]. - The company has established new collaborations with several publishers, including Higher Education Press and CITIC Press, in the first half of 2023[53]. - The company is participating in the modernization of social governance and exploring new business models in the context of smart city development[126]. - The company has become one of the first ecological partners of Baidu's Wenxin Yiyan large model, collaborating on various applications in content intelligent creation and generation[134]. - The marketing strategy includes participation in major design exhibitions and events to strengthen brand image and industry leadership[120]. Employee and Management Information - The number of employees as of June 30, 2023, was approximately 1,084, a slight decrease from 1,088 at the end of December 2022[54]. - Total remuneration for key management personnel increased to HKD 2,571,000 for the six months ended June 30, 2023, up from HKD 2,360,000 for the same period in 2022[110]. - The company appointed Mr. Zhai Zhisheng as an independent non-executive director and member of the audit and remuneration committees effective June 12, 2023[181]. Research and Development - Research and development expenses for the period amounted to HKD 77,249,000, slightly down from HKD 79,019,000 in the previous year, indicating a decrease of 2.2%[78]. - The company continues to advance AI-assisted font design technology while enhancing design efficiency and maintaining font quality[119]. - The company released a total of 210 new font styles in the first half of 2023, focusing on high-quality designs to meet market trends[61]. Compliance and Governance - The company has complied with all corporate governance codes except for a deviation regarding the attendance of the chairman at the annual general meeting due to health reasons[172]. - The board of directors includes executive directors and independent non-executive directors, with recent changes in board membership[177]. - The company reviewed its interim financial statements for the six months ended June 30, 2023, including the accounting principles adopted[173].

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，概不對因本公告 全部或任何部份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。 （於百慕達註冊成立之有限公司） （股份代號：00418） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 中期業績 方正控股有限公司（「本公司」）董事會（「董事會」）提呈本公司及其附屬公司（統稱 「本集團」）截至二零二三年六月三十日止六個月之未經審核簡明綜合中期財務 報表，連同二零二二年同期之比較數字。簡明綜合中期財務報表未經審核，惟 已經本公司之審核委員會審閱。 簡明綜合損益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 （未經審核） （未經審核） 附註 千港元 千港元 收益 3 373,048 323,193 銷售成本 (198,957) (169,181) 毛利 174,091 154,012 其他收入及盈利 4 22,351 20,749 ...