香港交易結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確性或完整性亦不發 表任何聲明，並明確表示概不會就本公佈全部或任何部分內容而產生或因依賴該等內容而引致之任何損失承 擔任何責任。 鴻 興 印 刷 集 團 有 限 公 司 (於香港註冊成立之有限公司) (股份代號: 450) 截至 2022 年 12 月 31 日止年度該計劃詳情 該計劃的合資格參與者包括本公司或其任何附屬公司的董事、全職或兼職僱員、高級管理人員 或高層僱員。 可授予的限制性股份獎勵總數 根據該計劃可授予獎勵的限制性股份數量最高不得超過 18,157,299 股，佔本公司截至 2021 年 7 月 1 日已發行股本總額的 2%。於本年報日期， 根據該計劃可授出限制性股份獎勵的股份餘額 總數為 15,887,637 股，佔該日期已發行股份約 1.75%。 計劃期間內，各參與者的最高獲益不得超過本公司與受託人訂立有關該計劃的信託契約之日本 公司已發行股本總額的 0.25%（「參與者限額」）。 截至 2022 年 12 月 31 日止年度年報的補充公告 茲提述鴻興印刷集團有限公司（「本公司」）於 2023 年 4 月 24 日 ...

Revenue and Financial Performance - The company reported a revenue of 2,950,112 in the latest quarter, an increase from 3,528,869 in the previous quarter[24]. - The company reported a revenue of 4,304.95 million for the fiscal year 2022, an increase from 3,985.15 million in the previous year, representing a growth of approximately 8%[37]. - The company reported a revenue of 6,600 million in 2022, representing a 27.1% increase compared to 2021[39]. - The company reported a total revenue of 35,000 million, indicating a significant growth compared to previous periods[51]. - The company reported a revenue of HKD 6,590 million for the fiscal year 2021, with a profit contribution of 40%[63]. - The revenue for the fiscal year 2022 was HKD 753 million, showing a decline of 16% compared to the previous year[64]. - The company reported a revenue of HKD 2,075 million for the fiscal year 2022, representing a 6% increase compared to the previous year[80]. - The company reported a revenue of 10.55 billion, reflecting a growth of 6.0% compared to 2021's 5.7%[86]. - The company reported a revenue increase of 15% year-over-year, reaching $1.5 billion in Q4 2023[92]. - The company reported a revenue of $15 million for the fiscal year 2022, reflecting a significant growth compared to previous periods[114]. - The company reported total revenue of 2,706,000,000, a significant increase from 2,451,911,000 in the previous period, reflecting a growth of approximately 10.3%[159]. - The company reported a revenue of $543,328,000 for the quarter, a significant increase from $692,452,000 in the previous period, reflecting a decrease of approximately 21.5%[160]. User Engagement and Active Users - The user data showed a decrease in active users from 54,508 to 49,321, indicating a decline of approximately 9%[24]. - The user data shows a steady increase in customer engagement, with a reported growth rate of 13% year-over-year[1]. - User data indicates a significant increase in active users, contributing to overall revenue growth[39]. - User data showed a growth of 20% in active users, totaling 10 million users by the end of the quarter[92]. - User data indicated a 33% increase in active users year-over-year, reaching a total of 36 million users[126]. - User data showed an increase in active users to 533,000,000, up from 120,000,000, indicating a growth rate of over 344%[159]. - User data showed a 17% increase in active users, with a total of 2,950,112 active users reported[181]. Market Expansion and Strategic Initiatives - The company is focusing on expanding its market presence in Vietnam, which was established in 2019[23]. - The company plans to expand its market presence and invest in new product development to drive future growth[1]. - The company plans to invest in market expansion strategies to capture a larger share of the industry[42]. - The company is focusing on expanding its market presence and has plans for new product launches in the upcoming quarters[52]. - The company is exploring potential mergers and acquisitions to strengthen its market position[42]. - The company is actively pursuing sustainability initiatives as part of its long-term strategy, aligning with global environmental standards[1]. - The company is exploring market expansion strategies, aiming to penetrate new geographical regions to increase its user base and revenue streams[159]. - The company is focusing on market expansion, with plans to enter new regions that could increase user engagement by 12%[160]. - The company is anticipating a 5% growth in overall market share due to its aggressive expansion and product innovation strategies[184]. Research and Development - The company plans to enhance its product offerings through ongoing research and development initiatives[1]. - The company aims to enhance its research and development efforts, particularly in new technologies, to drive future growth[53]. - The company is investing in R&D, with a budget allocation of 3.13 billion for new technology development in 2022[89]. - The company is investing in new technology development, with a budget allocation of $2 million for R&D initiatives[133]. - The company is investing in new technologies, with a budget allocation of $71,000 for research and development initiatives aimed at improving product offerings[160]. Profitability and Financial Outlook - The company achieved a gross margin of 66,038, down from 51,953, reflecting a significant improvement of around 27%[24]. - The gross margin for 2022 was 29.5%, up from 16.4% in 2021[39]. - The company reported a net loss of HKD 11 million in the last quarter, reflecting ongoing challenges in the market[60]. - The profit contribution percentage for the fiscal year 2022 was -16%, indicating a significant drop in profitability[64]. - The company anticipates a continued upward trend in sales, projecting a revenue increase of 6% for the next fiscal year[80]. - Future guidance indicates a projected revenue decline of approximately 14.2% for the upcoming year, with expectations of $22,112.84 million compared to $25,786.41 million[139]. - The company plans to implement new strategies to recover from recent financial setbacks and improve overall performance[69]. - The overall market outlook remains cautious, with potential challenges anticipated in the next fiscal year[139]. Certifications and Compliance - The company has received ISO9001 and ISO14001 certifications, demonstrating its commitment to quality and environmental management[22]. - The company has obtained ISO9001, ISO14001, and ICTI-ETP certifications, indicating a commitment to quality and environmental management[34]. Operational Efficiency - The company aims to enhance its production capabilities and efficiency through technological advancements and process improvements[1]. - The company is implementing new strategies to improve operational efficiency and reduce costs[55]. - The company plans to implement new strategies to improve operational efficiency and reduce costs, aiming for a more sustainable growth model[159].

Financial Performance - For the fiscal year ending December 31, 2022, the total revenue was HKD 2,950,112, a decrease of 16.3% from HKD 3,528,869 in 2021[3] - The gross profit for 2022 was HKD 419,848, down from HKD 478,186 in 2021, reflecting a decline of 12.2%[3] - Operating profit increased to HKD 82,342, up 14.8% from HKD 71,671 in the previous year[3] - The net profit for the year was HKD 54,508, representing an increase of 10.4% compared to HKD 49,321 in 2021[3] - Basic earnings per share rose to HKD 7.3, up from HKD 5.8 in the prior year, marking a growth of 25.9%[3] - The net profit attributable to equity holders for 2022 was HKD 66,038,000, compared to HKD 51,953,000 in 2021, marking an increase of around 27%[29][30] - The company's profit attributable to equity holders increased by 27.1% to HKD 66,038,000 in 2022, compared to HKD 51,953,000 in 2021[31] - The diluted earnings per share rose to HKD 7.3 in 2022 from HKD 5.7 in 2021[32] Assets and Liabilities - Total assets as of December 31, 2022, were HKD 3,190,050, a decrease from HKD 3,347,136 in 2021[7] - Current assets decreased to HKD 2,415,138 from HKD 2,757,012, reflecting a decline of 12.4%[7] - Non-current assets increased to HKD 1,570,010 from HKD 1,547,938, showing a slight growth of 1.4%[7] - The company reported a significant decrease in inventory, which fell to HKD 540,226 from HKD 733,362, a decline of 26.4%[7] - Prepayments amounted to HKD 126,863,000 as of December 31, 2022, down from HKD 145,727,000 in 2021[41] - The net trade receivables decreased to HKD 532,801,000 in 2022 from HKD 847,471,000 in 2021, reflecting a reduction in outstanding invoices[34] - The company holds a strong financial position with a net cash balance of HKD 1.055 billion, allowing for continued investment in long-term sustainable development[51][57] - The company maintains a debt ratio of 6.0%, up from 5.7% in 2021, and holds 49% of its cash in RMB to manage currency risk[58] Dividends - The company declared a dividend of HKD 118,023, unchanged from the previous year[3] - The company proposed a special dividend of HKD 0.05 per share and a final dividend of HKD 0.04 per share, subject to shareholder approval[32] - The board has proposed a special dividend of HKD 0.05 per share and a final dividend of HKD 0.04 per share, maintaining a total dividend of HKD 0.13 per share for the fiscal year[63] Business Segments and Operations - The largest business segment, book and packaging printing, reported total revenue of HKD 2.075 billion, down 10.1% from 2021, but operating profit improved significantly to HKD 124.5 million[44] - The total sales from external customers in the packaging and printing business segments for 2022 were HKD 2,950,112,000, down from HKD 3,528,869,000 in 2021, a decline of approximately 16.3%[20][22] - The paper trading business segment experienced a decline in external sales revenue by approximately 40% to HKD 238.7 million due to weak market conditions and falling paper prices[47] - The consumer products packaging business segment's revenue decreased by 25% to HKD 402.5 million, resulting in a loss of HKD 65.9 million, compared to a loss of HKD 9.1 million in 2021[53] - The carton business reported a profit increase of 7% to HKD 9.5 million, despite an overall revenue decline of 17.7% to HKD 233.9 million due to weak domestic market conditions[54] Strategic Initiatives - The company plans to enhance its core advantages in children's book printing and expand direct communication with consumers through various channels[42] - The company is focusing on diversifying its business to reduce reliance on individual markets or sectors due to the slowdown in the domestic market[41] - The company has implemented strategic investments to improve automation and process efficiency in response to inflation and economic challenges[41] - The company plans to acquire a physical bookstore chain with 10 locations in Hong Kong, integrating it into the "STEM Plus" education product and service portfolio[56] - The company invested HKD 170 million in 2022 to enhance core business capabilities through advanced equipment and facility construction, including expansions in Wuxi, Heshan, and Vietnam[57] Costs and Expenses - Financing costs for 2022 were HKD 4,653,000, compared to HKD 2,930,000 in 2021, representing an increase of about 58.8%[22][24] - The company’s employee benefits expenses, including directors' remuneration, were HKD 725,780,000 in 2022, down from HKD 809,210,000 in 2021, a decrease of about 10.3%[24] - The company’s tax provision for the year 2022 was HKD 20,445,000, compared to HKD 19,061,000 in 2021, reflecting a slight increase of approximately 7.2%[26] Market Outlook - Total revenue decreased by 16.4% to HKD 2.95 billion in 2022, primarily due to cyclical fluctuations in demand for printing and paper products[41] - The company anticipates a gradual recovery in internal demand as COVID-19 restrictions are lifted, leading to cautious optimism regarding consumer confidence[50] Governance and Compliance - The board believes that the roles of Chairman and CEO should be separated, but the current CEO also serves as the Executive Chairman, which the board deems appropriate[67] - The company has adopted a set of standards for securities trading by directors, and all directors complied with these standards during the reporting period[68] - The audit committee reviewed the preliminary results for the year ended December 31, 2022, and confirmed consistency with the consolidated financial statements[69] - The company's auditor, KPMG, verified that the preliminary results are consistent with the financial statements for the year ended December 31, 2022[70] Shareholder Actions - The company will suspend share transfer registration from May 22 to May 25, 2023, to ensure eligibility for the upcoming annual general meeting[64] - The company purchased a total of 1,648,000 shares for a total consideration of HKD 2,095,000 during the year[65]

Financial Performance - For the six months ended June 30, 2022, the company reported a revenue of HKD 1,551,383,000, an increase of 3.5% compared to HKD 1,501,029,000 in the same period of 2021[14]. - The gross profit for the same period was HKD 178,464,000, down 15.7% from HKD 211,748,000 year-on-year[14]. - The operating loss for the first half of 2022 was HKD 24,309,000, compared to an operating profit of HKD 46,464,000 in the previous year[14]. - The net loss attributable to equity holders of the company was HKD 27,508,000, compared to a profit of HKD 36,680,000 in the same period last year[14]. - Basic and diluted loss per share for the period was HKD (2.6), compared to earnings per share of HKD 4.0 in the previous year[14]. - The total comprehensive income for the six months ended June 30, 2022, was a loss of HKD 64,818,000, compared to a loss of HKD 54,667,000 in the same period of 2021[30]. - The company reported a net loss of HKD 27,508,000 for the period, compared to a net profit of HKD 36,680,000 in the same period of 2021[43][50]. - The company incurred a loss of HKD 23,380,000 during the period, which included a tax effect of HKD 32,079,000 from other comprehensive income[30]. - The group recorded a loss attributable to equity holders of approximately HKD 23 million, compared to a profit of HKD 36 million in the same period last year[96]. Dividends and Shareholder Returns - The company declared a dividend of HKD 36,315,000, unchanged from the previous year[14]. - The board declared an interim dividend of HKD 0.04 per share, consistent with the previous year[62]. - The company paid dividends of HKD 81,708,000 to equity holders during the period, compared to HKD 90,786,000 in the previous year[30]. - The board declared an interim dividend of HKD 0.04 per share, consistent with the previous year, to be distributed on October 21, 2022[116]. Assets and Liabilities - As of June 30, 2022, total assets amounted to HKD 2,701,730,000, a decrease from HKD 2,757,012,000 as of December 31, 2021, representing a decline of approximately 2%[19]. - The company's net asset value decreased to HKD 3,200,702,000 from HKD 3,347,136,000, a decline of around 4.4%[22]. - Current liabilities increased to HKD 768,064,000 from HKD 677,653,000, reflecting an increase of approximately 13%[19]. - The company's equity attributable to owners decreased to HKD 3,051,716,000 from HKD 3,187,999,000, a decline of approximately 4.3%[22]. - The total liabilities increased to HKD 504,931,000 as of June 30, 2022, compared to HKD 470,337,000 at the end of 2021[66]. - As of June 30, 2022, the company's bank borrowings amounted to HKD 240,261,000, an increase of 25% from HKD 192,282,000 as of December 31, 2021[69]. Cash Flow and Investments - The net cash used in operating activities for the six months ended June 30, 2022, was HKD 8,273,000, a significant decrease from HKD 258,439,000 in the previous year[30]. - The net cash generated from investing activities was HKD 197,957,000 for the six months ended June 30, 2022, compared to HKD 97,922,000 in the same period of 2021[30]. - The cash and cash equivalents increased by HKD 146,230,000 during the six months ended June 30, 2022, while there was a decrease of HKD 266,106,000 in the same period of the previous year[30]. - The group held a total cash amount of HKD 813 million as of June 30, 2022, with net cash of HKD 573 million, sufficient to cover operational needs and future investments[104]. - The group invested over HKD 73 million in capital projects during the period and committed an additional HKD 213 million for facility upgrades and new factory construction[105]. Market Performance and Strategy - Revenue from external customers for the packaging printing segment was HKD 207,626,000, while the consumer product packaging segment generated HKD 112,920,000[43]. - Revenue from the Hong Kong market decreased to HKD 268,682,000 from HKD 352,719,000 year-on-year, a decline of approximately 23.8%[47]. - Revenue from the United States increased to HKD 562,583,000, up from HKD 494,686,000, reflecting a growth of about 13.8%[47]. - The consumer products packaging business experienced a 17% decline in external sales revenue to HKD 280 million due to a weak domestic market and low consumer sentiment[102]. - The group is expanding its production capacity in Vietnam to offset operational disruptions caused by lockdowns in Shanghai and Guangdong[101]. - The group is developing new products utilizing unique and traceable QR code smart packaging technology to enhance supply chain tracking capabilities for global brand companies[100]. - The group anticipates improved consumer confidence as lockdown measures in mainland China are gradually lifted, presenting new opportunities for growth[112]. Operational Efficiency and Cost Management - The company is focusing on enhancing operational efficiency and exploring new market opportunities to improve future performance[14]. - The total expenses for employee benefits, including directors' remuneration, were HKD 383,032,000, an increase from HKD 354,320,000 in the previous year[50]. - Operating expenses were reduced by 8%, contributing to overall profitability[134]. - The group faced challenges from rising production costs and significant currency fluctuations, particularly with the depreciation of the RMB and EUR[96]. Future Outlook and Growth Initiatives - The company provided a forward guidance of 10% revenue growth for the next quarter, projecting $275 million[134]. - New product launches contributed to a 5% increase in market share within the industry[134]. - The company is investing $10 million in R&D for new technologies aimed at improving production efficiency[134]. - The group is exploring potential acquisitions to enhance its product portfolio and market presence[134]. - A new strategic partnership was announced, expected to generate an additional $15 million in revenue over the next year[134].

Financial Performance - The company reported a revenue of HKD 3,528.69 million for the year ended December 31, 2021, representing a 38.2% increase from HKD 2,554.03 million in 2020[16]. - Profit attributable to equity holders decreased by 52.5% to HKD 51.95 million, down from HKD 109.36 million in the previous year[16]. - Basic earnings per share were HKD 5.8 cents, compared to HKD 12.1 cents in 2020[16]. - Revenue increased significantly by 38.2% to HKD 3.529 billion in 2021, driven by strong customer relationships and strategic investments[32]. - Net profit attributable to equity holders decreased by 52.5% to HKD 52 million, down from HKD 109.4 million in 2020, due to supply chain disruptions and rising costs[36]. - The group reported a profit attributable to equity holders of HKD 51.95 million for 2021, down from HKD 109.36 million in 2020[105]. - The company's profit for the year 2021 was HKD 49,321,000, a decrease of 51.5% compared to HKD 101,773,000 in 2020[158]. - Total comprehensive income for the year was HKD 91,800,000, down 38.3% from HKD 148,982,000 in the previous year[158]. Dividends - The company maintained a mid-term dividend of HKD 0.04 and a final dividend of HKD 0.04 per share, consistent with the previous year[16]. - The company proposed a special dividend of HKD 0.05 and a final dividend of HKD 0.04, resulting in a total annual dividend of HKD 0.13 per share, consistent with 2020[23]. - The company declared dividends totaling HKD 27,236,000 for the year, compared to HKD 63,551,000 in the previous year, indicating a reduction in dividend distribution[168]. - The board has approved a dividend payout of HKD 0.10 per share, reflecting a 5% increase from the previous year[122]. - The company has adopted a semi-annual dividend policy, aiming to maintain stable returns to shareholders through progressive and special dividends[139]. Operational Challenges and Strategies - The company faced challenges including rising paper prices and increased freight costs, impacting profitability[22]. - The company has invested in technology and infrastructure to overcome global logistics disruptions and tight delivery schedules[22]. - The company continues to explore new investment opportunities and innovative technologies to enhance operational efficiency[5]. - The company is cautiously optimistic about stable growth in core business for 2022, particularly in the export market for eco-friendly products[28]. - The company continues to invest in technology upgrades and production capacity enhancements in China and Vietnam to support business growth[28]. - The company is focused on expanding its customer base and enhancing relationships to meet rapidly evolving market demands[57]. Production and Capacity - The company operates seven production facilities across Asia, employing approximately 6,500 staff[5]. - New production facilities in Hanoi, Vietnam, have doubled the floor area to meet increasing demand for eco-friendly printing products[37]. - The company has expanded its production capacity at the Heshan factory, adding a research and development center and a smart storage facility, expected to be completed in Q1 2022[37]. - The largest business segment, book and packaging printing, saw a revenue increase of 48.0% to HKD 2.307 billion due to increased orders from strategic customers and new export markets[42]. - The consumer products packaging segment's revenue rebounded to pre-pandemic levels, growing 14.8% to HKD 540 million despite adverse factors like rising paper prices[43]. - The corrugated box business achieved a revenue growth of 19.0% to HKD 284 million, although profit contribution decreased from HKD 130 million in 2020 to HKD 90 million due to paper price volatility[49]. Financial Position and Investments - Total assets increased to HKD 4,304.95 million from HKD 4,140.05 million in 2020[17]. - The group holds a strong financial position with a net cash of HKD 882 million, allowing for continued investment in long-term sustainable development[58]. - The group invested HKD 177 million in 2021 to enhance core business capabilities and expand facilities in Wuxi, Heshan, and Vietnam[58]. - The group’s total liabilities increased to HKD 752.05 million from HKD 593.99 million in 2020[106]. - The company reported a significant increase in bank borrowings, raising HKD 437,889,000 compared to HKD 106,192,000 in the previous year[179]. Environmental and Sustainability Efforts - Total carbon emissions for Scope 1 increased by 34.4% to 10,085 tons, while Scope 2 emissions rose by 13.6% to 10,503 tons[96]. - The total electricity consumption increased by 9.7% to 66,356 MWh, and total water usage rose by 3.4% to 1,093,661 cubic meters[96]. - The average training hours per employee increased significantly by 201.6% to 4.90 hours[96]. - The group installed a solar power facility with a capacity of 543 kW, bringing total renewable energy capacity to 1,000 MW[96]. - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by 30% over the next three years[124]. Corporate Governance and Compliance - The company emphasizes internal control and risk management to safeguard its assets and shareholder equity[76]. - The board is responsible for reviewing the effectiveness of the internal control system and risk assessment procedures[76]. - The company has adopted the corporate governance code regarding directors' securities transactions[76]. - The remuneration of executive directors and senior management is determined based on individual skills, knowledge, participation, and performance, considering the company's performance and profitability[80]. - The audit committee's main functions include reviewing internal controls, risk management systems, and compliance with regulations[89]. Shareholder Relations - The company maintains regular communication with institutional shareholders, fund managers, analysts, and media to promote investor relations[90]. - The company has a dedicated investor relations section on its website to facilitate communication with shareholders and investors[91]. - The company emphasizes the importance of good communication with shareholders to ensure they are well-informed and can exercise their rights[90]. - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting[90]. Related Party Transactions - The company engaged in related party transactions with Union Co., Ltd., which is a major shareholder, during the normal course of business[133]. - The actual transaction amounts for the sale and purchase of paper products under the framework agreements were HKD 26.7 million and HKD 12.92 million, respectively, for the year ended December 31, 2021[137]. - The company renewed two framework agreements with Union Group on December 9, 2021, for the sale and purchase of paper products, effective from January 1, 2022, to December 31, 2024[137]. - The company is exempt from compliance with certain circular and independent shareholder approval requirements regarding related party transactions[136].

Financial Performance - For the six months ended June 30, 2021, the company reported a revenue of HKD 1,501,029,000, an increase of 37% compared to HKD 1,098,705,000 in the same period of 2020[8]. - Gross profit for the same period was HKD 211,748,000, up from HKD 172,041,000, reflecting a gross margin improvement[8]. - Operating profit surged to HKD 46,464,000, compared to HKD 5,718,000 in the previous year, indicating a significant operational turnaround[8]. - The net profit attributable to equity holders was HKD 36,417,000, a substantial increase from HKD 4,858,000 in the prior year[8]. - Basic and diluted earnings per share increased to HKD 4.0, compared to HKD 0.5 for the same period last year[8]. - The total comprehensive income for the period was HKD 45,600,000, compared to a loss of HKD 36,458,000 in the previous year, highlighting a strong recovery[12]. - Profit attributable to shareholders for the period was HKD 36,680,000, a significant increase from HKD 2,419,000 in the previous year[41]. - The total tax expense for the period was HKD 9,708,000, compared to HKD 1,349,000 in 2020, indicating a substantial rise in tax obligations due to increased profitability[8]. Dividends and Shareholder Returns - The company declared a dividend of HKD 36,315,000, compared to HKD 27,236,000 in the previous year, reflecting a commitment to returning value to shareholders[8]. - The board declared an interim dividend of HKD 0.04 per share, an increase from HKD 0.03 per share in 2020, totaling HKD 36,315,000 for the period[56]. - The company paid dividends of HKD 90,786,000 during the period, an increase from HKD 63,551,000 in the same period last year[26]. Assets and Liabilities - As of June 30, 2021, non-current assets totaled HKD 1,499,105 thousand, a slight increase from HKD 1,476,811 thousand as of December 31, 2020, representing a growth of approximately 1.5%[14]. - Current liabilities increased to HKD 619,074 thousand from HKD 434,698 thousand, which is an increase of approximately 42.4%[14]. - The company's total assets less current liabilities stood at HKD 3,615,792 thousand, up from HKD 3,562,501 thousand, indicating a growth of about 1.5%[14]. - The net asset value decreased slightly to HKD 3,335,453 thousand from HKD 3,388,008 thousand, a decline of approximately 1.5%[17]. - The company reported a significant increase in prepayments to HKD 143,205 thousand from HKD 80,898 thousand, representing a growth of approximately 77.0%[17]. - Deferred income rose to HKD 53,459 thousand from HKD 36,662 thousand, an increase of about 46.0%[17]. - The cash and cash equivalents decreased to HKD 645,367 thousand from HKD 908,794 thousand, a decline of approximately 29.0%[14]. Cash Flow and Financing - The company reported a net cash outflow from operating activities of HKD 258,439,000 for the six months ended June 30, 2021, compared to a cash inflow of HKD 87,508,000 in the same period of 2020[26]. - Cash and cash equivalents decreased by HKD 266,106,000, ending at HKD 615,319,000 as of June 30, 2021, compared to HKD 1,006,544,000 at the end of the previous year[26]. - The company’s cash flow from financing activities resulted in a net cash outflow of HKD 105,589,000, compared to an outflow of HKD 80,457,000 in the previous year[26]. - The company’s bank borrowings increased to HKD 139,209,000 during the period, compared to HKD 31,345,000 in the previous year[26]. Business Segments and Revenue Sources - Revenue from external customers by business segment included HKD 876,785,000 from book and packaging printing, HKD 251,272,000 from consumer product packaging, HKD 125,011,000 from corrugated box business, and HKD 247,961,000 from paper trading[39]. - Revenue from Hong Kong increased to HKD 522,664,000 in 2021 from HKD 294,948,000 in 2020, while revenue from China rose to HKD 403,366,000 from HKD 308,750,000[43]. - The company’s largest business segment, book and packaging printing, saw sales rise by 34% to HKD 877 million, contributing a profit of HKD 28 million compared to a loss of HKD 29 million in the previous year[99]. - The consumer products packaging business achieved a 25% increase in external sales to HKD 251 million, with losses reduced from HKD 5 million to HKD 0.5 million due to debt recovery and government incentives[100]. - The paper trading department saw a significant 73% increase in external sales to HKD 248 million, turning a loss of HKD 4.9 million into a profit of HKD 28 million[101]. Operational Developments and Future Outlook - The company aims to enhance production capacity and modernize operations, including investments in factories in China and Vietnam[97]. - The company is developing consumer-oriented paper products, including the Papery brand and educational resources through the STEM Plus brand[97]. - The company is cautiously optimistic about the second half of the year due to strong orders and sufficient inventory, anticipating improved operating conditions and a return to reasonable levels for paper and shipping costs[112]. - The company plans to invest in innovation and expand production capacity to seize industry consolidation opportunities and adapt to rapid industry developments[112]. - The economic growth in mainland China and the increasing integration between Hong Kong and the mainland present significant business opportunities in the Greater Bay Area[112]. Corporate Governance and Compliance - The company is committed to maintaining compliance with corporate governance codes throughout the reporting period[127]. - The company has adopted a set of securities trading standards to ensure compliance by its directors during the reporting period[128]. - The audit committee has reviewed the interim financial performance for the six months ended June 30, 2021, and discussed matters related to audit, internal control, and financial statements[130]. - The audit committee consists of three independent non-executive directors and one non-executive director[130].

Company Operations - The company operates in seven locations across Asia, with a total factory area of approximately 600,000 square meters and employs around 6,600 staff[5]. - The company has production facilities in various locations, including Shenzhen, Dongguan, and Wuxi, with certifications such as ISO9001 and ISO14001[27][32]. - The company’s production facility in Vietnam covers an area of 35,000 square meters and was launched in Q4 2019[33]. - The company acquired a facility in Shunde (Foshan) in 2018, enhancing its position in the corrugated box market[29]. - The company is expanding its operations in the Greater Bay Area with significant upgrades to its facilities, including the introduction of smart warehouses and R&D centers[50]. - The relocation of the Wuxi factory is expected to take 18 to 24 months, featuring high-tech facilities and advanced production technology to meet the growing demand for quality paper products in China[68]. Financial Performance - The company's revenue for the year ended December 31, 2020, was HKD 2,554,029,000, a decrease of 17.2% compared to HKD 3,083,904,000 in 2019[44]. - Profit attributable to equity holders of the company increased by 44.4% to HKD 109,357,000 from HKD 75,753,000 in the previous year[44]. - Basic earnings per share rose to HKD 12.1 cents, up from HKD 8.4 cents in 2019[45]. - Total assets increased to HKD 4,140,053,000 in 2020 from HKD 3,921,676,000 in 2019[44]. - The group recorded a total revenue of HKD 2.554 billion in 2020, a decrease of 17.2% compared to the previous year[58]. - The operating profit margin was 16.6%, achieved through increased automation and strict cost control measures[64]. - The net profit attributable to equity holders improved significantly to HKD 1.094 billion, a growth of 44.4% from HKD 758 million in the previous year[65]. - The group has HKD 1.238 billion in cash reserves, allowing for attractive returns to shareholders and continued investment in future development[53]. Dividends and Shareholder Returns - The company declared a total dividend of HKD 0.13 per share for 2020, an increase of 30% from HKD 0.10 per share in 2019[45]. - A special dividend of HKD 0.06 per share and a final dividend of HKD 0.04 per share were proposed for shareholders[128]. - The company has adopted a semi-annual dividend policy aiming for stable returns and will consider future cash flow and retained earnings when declaring dividends[172]. - The company is committed to reviewing its dividend policy regularly and retains the discretion to update or modify it[173]. Environmental Sustainability - The company is committed to promoting environmental sustainability through innovative products and renewable energy initiatives[51]. - The solar power system installed on the rooftop of the Hong Kong facility is expected to produce approximately 562,000 kWh of green electricity annually, reducing electricity costs by 80%[51]. - The company invested over HKD 5.4 million in green energy and facility upgrades during the year[123]. - The rooftop solar power installation at the Hong Kong facility reached a total generation capacity of 527 kW, approximately one-third of the headquarters' electricity consumption in 2020[123]. Corporate Governance - The board consists of nine directors, including two executive directors, four non-executive directors, and three independent non-executive directors[85]. - All independent non-executive directors have confirmed their independence according to the listing rules, ensuring compliance with governance standards[87]. - The attendance rate for board meetings was 100% for all directors during the fiscal year ending December 31, 2020[90]. - The company has established a nomination committee primarily composed of independent non-executive directors to provide recommendations for director candidates[88]. - The company emphasizes the importance of internal control and risk management to protect assets and shareholder interests[101]. Market and Strategic Initiatives - The company aims to provide customized printing solutions and has established a long-standing reputation in the industry[4]. - The company has introduced new investment opportunities and innovative technologies, including a range of "digital + printing" products[5]. - The group plans to continue exploring new markets in the EU and Asia-Pacific regions to strengthen business adaptability[64]. - The establishment of the HH Dream Printing Co., Ltd. in Vietnam is expected to provide a significant advantage in expanding international markets[64]. - The company is focused on expanding its operations in Hong Kong, Shenzhen, and Foshan[149]. Challenges and Risks - The group anticipates significant increases in raw material and shipping costs due to temporary supply chain disruptions[56]. - The book and packaging printing segment experienced a 17.8% decline in external sales due to the impact of COVID-19 and US-China trade tensions[67]. - The consumer products packaging division recorded a loss reduction of 19.2% compared to 2019, despite a temporary drop in revenue due to weak consumer demand[68]. Audit and Compliance - The independent auditor, KPMG, has issued an unqualified opinion on the group's financial statements for the year ending December 31, 2020[168]. - The overall financial reporting process was overseen by the audit committee to ensure compliance with relevant accounting standards[179]. - The audit identified the valuation of raw materials as a key audit matter due to significant management judgment involved in estimating provisions[179].

Financial Performance - The consolidated revenue for the six months ended June 30, 2020, was HKD 1,098,705, a decrease of 23.5% from HKD 1,436,295 in the same period of 2019[7]. - The gross profit for the period was HKD 33,863, compared to HKD 210,189 in the previous year, indicating a significant decline[7]. - The operating profit was HKD 5,718, slightly up from HKD 5,046 in the prior year, reflecting improved operational efficiency despite lower revenue[7]. - The net profit attributable to equity holders of the company was HKD 2,419, an increase from HKD 2,143 in the same period last year[7]. - The total comprehensive income for the period was a loss of HKD 36,458, compared to a gain of HKD 1,296 in the previous year, primarily due to foreign exchange losses[10]. - The company declared a dividend of HKD 27,236, unchanged from the previous year, indicating a commitment to shareholder returns despite challenging conditions[7]. - The basic and diluted earnings per share remained stable at HKD 0.5 for both periods[7]. - The company reported a significant increase in other comprehensive losses, totaling HKD 38,877, compared to HKD 3,439 in the previous year[10]. - The total expenses for the period were HKD 294,439,000, down from HKD 380,687,000 in the previous year, indicating a decrease of about 22.7%[49]. - The total tax expense for the period was HKD 2,654,000, a decrease from HKD 4,565,000 in 2019, representing a reduction of approximately 42%[56]. Assets and Liabilities - As of June 30, 2020, total non-current assets amounted to HKD 1,417,487, a decrease from HKD 1,469,765 as of December 31, 2019, representing a decline of approximately 3.5%[12]. - Current assets totaled HKD 2,451,758, slightly down from HKD 2,451,911 in the previous period, indicating a marginal decrease of 0.006%[12]. - The company's cash and cash equivalents increased to HKD 1,040,846 from HKD 1,012,293, reflecting a growth of about 2.8%[12]. - Total liabilities decreased to HKD 450,985 from HKD 494,242, showing a reduction of approximately 8.8%[12]. - The net asset value stood at HKD 3,229,210, down from HKD 3,327,681, which is a decline of about 2.9%[15]. - The company reported a decrease in trade payables and other payables to HKD 330,728 from HKD 379,797, a reduction of approximately 12.9%[12]. - Non-current liabilities increased to HKD 189,050 from HKD 99,753, indicating a significant rise of approximately 89.5%[15]. - The company's equity attributable to owners decreased to HKD 3,084,389 from HKD 3,177,781, a decline of about 2.9%[15]. - The company's total liabilities decreased to HKD 3,084,389,000 as of June 30, 2020, from HKD 3,327,681,000 at the beginning of the year[23]. Cash Flow and Investments - The company reported a net cash generated from operating activities of HKD 87,508,000 for the six months ended June 30, 2020, compared to a net cash used of HKD 42,742,000 in the same period of 2019[23]. - The company reported a significant increase in cash inflow from investing activities, amounting to HKD 10,596,000, compared to a cash outflow of HKD 74,295,000 in the previous year[23]. - The company incurred capital expenditures exceeding HKD 36 million during the period, with an additional HKD 10 million allocated for new printing technology and automation upgrades[114]. - The company’s investment activities included purchasing property, plant, and equipment, which totaled HKD 25,300,000 during the reporting period[23]. Business Segments and Operations - The company’s revenue from its main business segments includes book and packaging printing, consumer product packaging, corrugated boxes, and paper trading[25]. - The largest business segment, book and packaging printing, saw a revenue decline of 23% to HKD 654 million due to geopolitical tensions and the pandemic[109]. - The consumer product packaging segment's losses decreased by 55% to HKD 5.3 million compared to the same period in 2019[110]. - The paper trading department experienced a 50% drop in internal sales and a 15% decline in external sales due to weakened demand and soft paper prices[112]. - The company is expanding production capacity in its Hezhou and Hanoi facilities to prepare for post-pandemic demand[106]. Shareholder Information - The company declared an interim dividend of HKD 0.03 per share, consistent with the previous year, totaling HKD 27,236,000[65]. - As of June 30, 2020, C.H. Yam International Limited holds 290,834,379 shares, representing 32.03% of the company's issued shares[132]. - Ren's Industrial Limited and Hung Tai Industrial Limited each hold 199,263,190 shares, accounting for 21.95% of the company's issued shares[132]. - The total number of shares held by the major shareholders indicates a significant concentration of ownership, with the top four shareholders holding over 100 million shares each[132]. Corporate Governance - The audit committee reviewed the interim financial results for the six months ending June 30, 2020, ensuring compliance with accounting standards[139]. - The company has adopted a standard code for securities transactions by directors, ensuring compliance during the reporting period[138]. - The company has complied with the corporate governance code throughout the reporting period, with specific exceptions noted[137].

Financial Performance - Revenue for the year ended December 31, 2019, was HKD 3,083,904, a decrease of 5.9% from HKD 3,276,800 in 2018[24] - The profit attributable to equity holders for the year was HKD 75,753, compared to a loss of HKD 74,518 in the previous year[24] - Basic earnings per share for 2019 was HKD 8.4, a significant improvement from a loss of HKD 8.3 per share in 2018[24] - The group's revenue decreased by 6% to HKD 3.08 billion due to weak market conditions, while net profit improved to HKD 68 million compared to a net loss of HKD 72 million in the previous year[34] - Basic earnings per share significantly increased to HKD 0.084, compared to a loss of HKD 0.083 per share in 2018[34] - Total revenue for the year was HKD 3,084 million, a decrease of 5.9% compared to HKD 3,276 million in the previous year[132] - The profit attributable to equity holders of the company was HKD 75.75 million, recovering from a loss of HKD 74.52 million in the previous year[132] Assets and Liabilities - The total assets as of December 31, 2019, were HKD 3,921,676, down from HKD 4,066,243 in 2018[24] - Total liabilities decreased to HKD 593.99 million from HKD 668.33 million, a reduction of 11.1%[132] - The net current assets were HKD 1,957,669, a decrease from HKD 2,085,991 in the previous year[24] Dividends - The company maintained a dividend of HKD 10 per share, consistent with the previous year[24] - The board proposed a special dividend of HKD 0.04 per share and a final dividend of HKD 0.03 per share, totaling an annual dividend of HKD 0.10 per share, consistent with the previous year[32] - The company declared an interim dividend of HKD 0.03 per share and proposed a special dividend of HKD 0.04 per share[128] - The company has adopted a dividend policy aimed at maintaining stable dividends semi-annually[171] Operational Developments - The group operates seven production facilities across Asia, employing approximately 7,100 staff[6] - The new factory in Vietnam commenced operations in Q4 2019, covering an area of 35,000 square meters[20][21] - The company is constructing a 35,000 square meter advanced production facility in Hanoi, Vietnam, to enhance capacity and diversify production bases[35] - The company aims to enhance operational efficiency and quality through flexible strategies and long-term human resource training[6] - The company invested in new technologies and digital platforms to expand skill sets and provide innovative solutions combining production and digital technology[35] Environmental and Social Responsibility - The company donated 20 tons of ethanol to local governments and supported a startup producing masks by providing free packaging services[38] - The company continues to focus on sustainable development by exploring environmentally friendly alternatives and reducing carbon footprints[35] - The company invested HKD 8.2 million in environmental improvement projects in 2019, including HKD 2.6 million for solar panel installation at its Hong Kong headquarters[121] - The solar panels generated 172,000 kWh of clean energy in 2019, reducing CO2 emissions by 87,720 kg, equivalent to planting 14,800 trees[121] - The company is committed to the principles of "reduce, reuse, and recycle" in its operations to protect the environment[120] Governance and Board Structure - The board of directors consists of nine members, including two executive directors and three independent non-executive directors[75] - The company has established a nomination committee to provide recommendations for the selection and appointment of director candidates[79] - All independent non-executive directors have confirmed their independence according to the listing rules, ensuring compliance with governance standards[79] - The company encourages continuous professional development for all directors to ensure they are well-informed and can contribute effectively to board discussions[88] - The board regularly reviews its composition to ensure a balance of skills and independence[75] Audit and Internal Control - The internal audit department evaluates risks and ensures that audit work covers significant internal control areas of the group's operations[97] - The audit committee assists the board in maintaining effective internal control systems and reviews the effectiveness of risk assessment procedures[97] - The audit committee held four meetings during the fiscal year ending December 31, 2019, with a 100% attendance rate from all members[111] - The audit identified the valuation of raw materials as a key audit matter due to significant management judgment involved in determining appropriate write-downs[182] Market Strategy and Future Outlook - The company aims to lead future development and maintain a competitive edge in printing and paper product innovation[38] - The company is exploring new strategies for market expansion and product development, although specific figures and timelines were not disclosed in the provided content[143] - The management has set a performance guidance of 12% revenue growth for the upcoming fiscal year[149] - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share by 2021[149] Employee and Training Metrics - The number of employees decreased by 14.2% to 7,056 from 8,223 in the previous year[132] - The average training hours per employee decreased by 16.6% to 2.96 hours from 3.55 hours[132] - The overall injury rate improved slightly to 0.20 from 0.21, a decrease of 4.8%[132] Financial Management - The company holds HKD 965 million in cash, allowing for stable returns to shareholders while adapting to business opportunities[38] - The company reported a net cash position of HKD 965 million, with a debt ratio maintained at a stable 4.0%[70] - The company has received annual independence confirmations from directors who have served over nine years, ensuring their continued qualification for re-election at the upcoming shareholders' meeting[137]

Financial Performance - The consolidated revenue for the six months ended June 30, 2019, was HKD 1,436,295, a decrease of 1.9% compared to HKD 1,463,628 in 2018[6] - The gross profit increased to HKD 210,189, representing a significant improvement from HKD 139,171 in the previous year[6] - The operating profit turned positive at HKD 5,046, compared to an operating loss of HKD 37,517 in the same period last year[6] - The net profit for the period was HKD 2,143, a recovery from a loss of HKD 33,001 in 2018[9] - Basic and diluted earnings per share were HKD 0.5, compared to a loss per share of HKD 3.9 in the previous year[6] - The total comprehensive income for the period was a loss of HKD 1,296, compared to a loss of HKD 44,238 in the same period last year[13] - The company reported a decrease in sales costs to HKD 1,226,106 from HKD 1,324,457, reflecting improved cost management[6] - Other income for the period was HKD 24,241, down from HKD 27,664 in the previous year[6] - The company incurred finance costs of HKD 2,422, slightly up from HKD 2,345 in the previous year[6] Assets and Liabilities - As of June 30, 2019, non-current assets totaled HKD 1,499,938, an increase from HKD 1,471,989 as of December 31, 2018, representing a growth of approximately 1.9%[18] - Current assets amounted to HKD 2,602,104, slightly up from HKD 2,594,254, indicating a marginal increase of about 0.3%[21] - Total liabilities decreased from HKD 1,088,254 in December 2018 to HKD 757,827 in June 2019, reflecting a reduction of approximately 30.3%[21] - The company's net asset value as of June 30, 2019, was HKD 3,344,215, down from HKD 3,397,915, a decline of about 1.6%[21] - The company's bank borrowings increased to HKD 141,697 from HKD 24,000, marking a substantial rise of approximately 490.4%[21] - Inventory levels rose to HKD 606,307 from HKD 527,968, an increase of about 14.8%[18] - Trade receivables decreased slightly from HKD 873,228 to HKD 869,221, a reduction of approximately 0.5%[18] - The company reported a total equity attributable to equity holders of HKD 3,186,487, down from HKD 3,244,396, a decrease of about 1.8%[21] - Deferred tax assets decreased from HKD 23,002 to HKD 20,752, a decline of approximately 9.8%[18] Cash Flow and Investments - The company reported a net cash outflow from operating activities of HKD 42,742,000 for the six months ended June 30, 2019, compared to HKD 77,446,000 for the same period in 2018, indicating a 45% improvement[30] - The total comprehensive income for the period was HKD 1,855,000, which includes a profit of HKD 4,912,000, while the previous year's total comprehensive income was a loss of HKD 3,151,000[30] - The company incurred a cash outflow of HKD 32,135,000 for the purchase of property, plant, and equipment, down from HKD 48,439,000 in the prior year, reflecting a 34% decrease[30] - Cash and cash equivalents decreased by HKD 75,177,000 during the period, compared to a decrease of HKD 232,504,000 in the same period last year[30] - The company reported a total equity of HKD 3,344,215,000 as of June 30, 2019, compared to HKD 3,397,915,000 at the beginning of the year, representing a decrease of approximately 1.6%[30] - The company generated HKD 12,215,000 in interest income from investment activities, down from HKD 17,732,000 in the previous year, indicating a decline of approximately 31%[30] - The company reported a cash inflow of HKD 118,269,000 from bank borrowings during the period, compared to HKD 24,088,000 in the same period last year, showing a substantial increase[30] Dividends and Shareholder Information - The proposed dividend for the period is HKD 27,236, significantly lower than HKD 63,551 proposed in the previous year, a decrease of approximately 57.1%[21] - The company approved an interim dividend of HKD 27,236,000 for the period, which is a significant reduction compared to the previous year's dividend of HKD 63,551,000[30] - The group declared an interim dividend of HKD 0.03 per share, consistent with the previous year[72] - As of June 30, 2019, the company had a total of 43,601,630 shares held directly by director Ren Ze Ming, representing 5.10% of the issued shares[137] - Major shareholder C.H. Yam International Limited holds 290,834,379 shares, accounting for 32.03% of the issued shares[140] - Ren Shi Industrial Limited and Hong Da Industrial Limited each hold 199,263,190 shares, representing 21.95% of the issued shares[140] Strategic Focus and Market Position - The company plans to continue focusing on improving operational efficiency and exploring new market opportunities[6] - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming periods[58] - The group aims to strengthen its market position through strategic product management and enhanced collaboration with key export customers[114] - The group is diversifying its business portfolio with strategic investments, including the YumMePrint interactive mobile photo printing service and STEMPlus, which promotes STEM education products[120][121] Segment Performance - The company has classified its business into four segments: book and packaging printing, consumer product packaging, corrugated box business, and paper trading[49] - The books and packaging printing segment saw a revenue increase of 6.1% to HKD 853 million, with a profit of HKD 23 million compared to a loss of HKD 58 million in the previous year[114] - The carton box segment benefited from the acquisition of Guangdong United Packaging, with external sales revenue increasing by 21% to HKD 123 million, although profits decreased by 34% to HKD 7 million due to paper price fluctuations[117] - The paper trading segment's revenue decreased by 19% to HKD 169 million, with profits dropping by 73% to HKD 3 million, impacted by soft paper prices and increased rental costs[118] Corporate Governance - The audit committee reviewed the interim financial results for the six months ending June 30, 2019, ensuring compliance with accounting standards[148] - The company has adopted a set of securities trading standards for directors, ensuring compliance during the reporting period[146] - The board believes that the dual role of the chairman and CEO held by Ren Ze Ming is in the best interest of the company[145] - The company has complied with the corporate governance code throughout the reporting period, with specific exceptions noted[145]