Financial Performance - Revenue for the six months ended 30 June 2024 was HK$1,095,702,000, a decrease of 8.1% compared to HK$1,192,964,000 in the same period in 2023[6] - Gross profit for the six months ended 30 June 2024 was HK$153,064,000, a decrease of 25.8% compared to HK$206,435,000 in the same period in 2023[6] - Operating loss for the six months ended 30 June 2024 was HK$8,500,000, compared to an operating profit of HK$115,065,000 in the same period in 2023[6] - Loss before income tax for the six months ended 30 June 2024 was HK$10,882,000, compared to a profit before income tax of HK$111,618,000 in the same period in 2023[6] - Loss for the period attributable to equity shareholders of the company was HK$4,472,000, compared to a profit of HK$82,377,000 in the same period in 2023[6] - Basic loss per share for the six months ended 30 June 2024 was HK$0.5, compared to earnings per share of HK$9.1 in the same period in 2023[6] - Total comprehensive loss for the six months ended 30 June 2024 was HK$56,317,000, compared to a total comprehensive income of HK$37,706,000 in the same period in 2023[7] - Total comprehensive loss attributable to equity shareholders of the company was HK$49,028,000, compared to a total comprehensive income of HK$44,075,000 in the same period in 2023[7] - Profit for the period was HK$82,377,000 for the six months ended 30 June 2023[11] - Other comprehensive income, net of tax, was a loss of HK$38,302,000 for the six months ended 30 June 2023[11] - Total comprehensive income for the six months ended 30 June 2023 was HK$44,075,000[11] - Total comprehensive income for the period was a loss of HK$56,317 thousand[13] - The company reported a profit for the period of HK$79,972,000, with a profit before income tax of HK$111,618,000[22] - Profit attributable to equity shareholders in 2023 was HK$82,377,000, compared to a loss of HK$4,472,000 in 2024[34] - Profit attributable to equity shareholders of the Company for the six months ended 30 June 2023 was HK$82,377,000[36] - The Group recorded a loss attributable to equity shareholders of approximately HK$4 million for the six months ending 30 June 2024, compared to a profit of HK$82 million in the same period last year, mainly due to the absence of a one-off income of HK$90 million from land resumption in Wuxi, China[65] Assets and Liabilities - Non-current assets increased to HK$1,661,908,000 as of 30 June 2024, compared to HK$1,605,603,000 on 31 December 2023[8] - Current assets decreased to HK$2,149,305,000 as of 30 June 2024, from HK$1,975,113,000 on 31 December 2023[8] - Net current assets stood at HK$1,591,187,000 as of 30 June 2024, compared to HK$1,509,626,000 on 31 December 2023[8] - Total assets less current liabilities were HK$3,253,095,000 as of 30 June 2024, up from HK$3,115,229,000 on 31 December 2023[8] - Net assets decreased to HK$3,175,155,000 as of 30 June 2024, from HK$3,037,687,000 on 31 December 2023[9] - Total equity attributable to equity shareholders of the company was HK$3,046,006,000 as of 30 June 2024, down from HK$2,915,827,000 on 31 December 2023[9] - Non-controlling interests decreased to HK$129,149,000 as of 30 June 2024, from HK$121,860,000 on 31 December 2023[9] - Total trade receivable, net of loss allowance, at 30 June 2024 was HK$568,152,000, compared to HK$522,738,000 at 31 December 2023[40] - Aging analysis of total trade receivable at 30 June 2024 showed 1-30 days: HK$285,832,000, 31-60 days: HK$136,575,000, 61-90 days: HK$97,097,000, and over 90 days: HK$48,648,000[41] - Cash and cash equivalents at 30 June 2024 were HK$587,133,000, compared to HK$799,660,000 at 31 December 2023[43] - Trade payable at 30 June 2024 was HK$166,407,000, compared to HK$112,909,000 at 31 December 2023[45] - Other payable and accrued liabilities at 30 June 2024 were HK$179,840,000, compared to HK$214,720,000 at 31 December 2023[45] - Accounts receivable within 1-30 days increased to HK$125,236,000 as of 30 June 2024, up from HK$82,406,000 at 31 December 2023[46] - Total accounts receivable rose to HK$166,407,000 as of 30 June 2024, compared to HK$112,909,000 at 31 December 2023[46] - Term loans maturing in 2024 decreased to HK$14,000,000 from HK$30,000,000, while those maturing in 2026 decreased to HK$79,135,000 from HK$96,004,000[48] - The company's issued and fully paid shares remained constant at 907,864,974 shares as of 30 June 2024 and 31 December 2023[51] - The Group's total cash on hand as of 30 June 2024 was HK$843 million, including HK$245 million in structured deposits, with net cash on hand of HK$750 million[76] - The Group's RMB-linked structured bank deposits increased to HK$245 million in 2024, with 79% of total cash held in RMB[77] - The Group's total bank borrowings as of 30 June 2024 were HK$93 million, with a reduced gearing ratio of 3.1% compared to 5.1% in 2023[78] Cash Flow - Net cash used in operating activities was HK$142,038 thousand[14] - Net cash generated from investing activities was HK$58,416 thousand[14] - Net cash used in financing activities was HK$126,403 thousand[14] - Cash and cash equivalents decreased by HK$210,025 thousand to HK$587,133 thousand at 30 June 2024[14] - Dividends paid to equity shareholders amounted to HK$81,708 thousand[14] - Interest received from investments was HK$9,307 thousand[14] - Purchases of property, plant and equipment totaled HK$15,918 thousand[14] Business Segments - The company's principal activities include book and package printing, consumer product packaging, corrugated box, and trading of paper[15] - The company is organized into four business segments: Book and Package Printing, Consumer Product Packaging, Corrugated Box, and Paper Trading[19] - Revenue from external customers is reported after eliminating inter-segment revenue, which is charged based on mutually agreed terms[19] - Segment performance is assessed based on gross profit, revenue less distribution costs, administrative and selling expenses, and other net gains allocated to each segment[19] - Sales between segments are conducted at arm's length basis[19] - Segment results exclude corporate finance costs, other corporate income and expenses, and share of results of associates[19] - Total revenue for the period was HK$1,095,702,000, with sales to external customers contributing HK$761,703,000 from Packaging, HK$150,740,000 from Corrugated, and HK$86,413,000 from Box Paper Trading[21] - Inter-segment sales amounted to HK$175,438,000, with significant contributions from Box Paper Trading (HK$141,537,000) and Corrugated (HK$30,358,000)[21] - Revenue from external customers in the United States was HK$428,960,000, while revenue from Hong Kong and the People's Republic of China was HK$147,385,000 and HK$263,662,000 respectively[23] - Revenue from the United Kingdom was HK$73,931,000, while revenue from other countries totaled HK$181,764,000[23] - The company's total revenue for the previous period was HK$1,192,964,000, with sales to external customers contributing HK$865,219,000 from Packaging, HK$150,124,000 from Corrugated, and HK$88,222,000 from Box Paper Trading[22] - Revenue for the Book and Packaging Printing (BPP) unit declined by 12% to HK$761.7 million in 2024 compared to HK$865.2 million in 2023[72] - Profit contribution for the BPP unit decreased to HK$26.4 million in 2024 due to lower sales and increased logistic charges[72] - The Consumer Products Packaging (CPP) business posted a loss of HK$24.3 million, with revenue remaining flat year-over-year[74] - The Corrugated Box (CB) business experienced a 2% decline in revenue, resulting in a loss of HK$8.4 million[74] - The Paper Trading (PT) business saw an 8% increase in revenue to HK$96.8 million, achieving a profit of HK$0.5 million compared to a loss of HK$1.3 million last year[75] Sustainability and Environmental Initiatives - Hung Hing's sustainability initiatives won the Top Prize at the Green Dot Award, surpassing over 20 global companies[69] - The company installed solar panels in the majority of its manufacturing plants to reduce carbon footprint[69] - Hung Hing's sustainability practices include renewable energy use, green materials, vehicle electrification, and smart energy-saving processes[69] - The company is preparing for the EU's Regulation on Deforestation Free Products (EUDR), set to take effect by the end of 2024[70] - Total installed solar power capacity increased to 6,504 kWp across five locations, generating 2,556,069 kWh of electricity in H1 2024, offsetting approximately 959 tons of carbon emissions[80] - Electricity consumption rose by 11% to 28.25 million units due to the Wuxi plant resuming full production, while water usage decreased to 307,352 m³[81] - 97% of production waste was recycled, including 14,351 tons of wastepaper, 164 tons of plastic, and 130 tons of metal, with non-recyclable waste totaling 439 tons[81] - Over 95% of paper used was highly recycled or FSC™ certified, with 32,698 tons of FSC™ certified paper, 138 tons of PEFC certified paper, and 33,703 tons of high recycled content paper utilized[81] Workforce and Training - The company's workforce comprised around 5,600 employees as of June 30, 2024, with over 94,252 training hours delivered, averaging 2.37 hours per employee[82] - Short-term employment benefits (excluding discretionary bonus) increased slightly to HK$12,417,000 in 2024 from HK$12,401,000 in 2023[54] - Share-based payments decreased to HK$557,000 in 2024 from HK$1,446,000 in 2023[54] Dividends and Shareholder Information - Dividends paid to equity shareholders amounted to HK$81,708 thousand[14] - Interim dividend declared was HK 4 cents per ordinary share for both 2023 and 2024[37] - The company will pay an interim dividend of HK4 cents per share, unchanged from 2023, to be paid on 18 October 2024[94] - The Register of Members will be closed from 23 September 2024 to 26 September 2024 for the interim dividend qualification[95] - No shares of the company or its subsidiaries were purchased, redeemed, or sold during the period[96] - As of 30 June 2024, director Yum Chak Ming, Matthew held 57,465,254 shares, representing 6.33% of the company's issued shares[97] - Director Yum Christopher Carson held 9,398,874 shares, representing 1.04% of the company's issued shares as of 30 June 2024[97] - Substantial shareholders with 5% or more of the company's issued shares include C.H. Yam International Limited (32.03%), C.H. Yam Holding Limited (21.95%), and Rengo Co., Ltd. (29.91%)[105] - C.H. Yam International Limited owns 100% of Hung Tai Industrial Company Limited through its subsidiary, C.H. Yam Holding Limited[105] Corporate Governance and Compliance - The company has complied with the Corporate Governance Code, except for the separation of chairman and CEO roles, which are both held by Mr. Yum Chak Ming, Matthew[107] - The company has adopted the Model Code for Securities Transactions, and directors have complied with the required standards throughout the accounting period[108] - The audit committee reviewed the interim results for the six months ended 30 June 2024, focusing on accounting principles, internal controls, and financial reporting[109] Market and Economic Conditions - The Red Sea crisis and conflicts in Eastern Europe and the Middle East significantly increased freight rates, disrupting export trade and straining customer cash flow[64] - The slower-than-expected post-COVID economic recovery has led to reduced market demand and more cautious consumer spending[64] - The global economy faces challenges from high interest rates and geopolitical uncertainties, negatively impacting business performance[85] - The company remains optimistic about China's long-term economic growth, supported by infrastructure projects like the Shenzhen-Zhongshan Bridge[86] Strategic Initiatives and Future Plans - The Wuxi plant is expanding its domestic market footprint, and a new food packaging production line has been completed at the Zhongshan facility[87] - A second manufacturing facility in Vietnam is planned, expected to commence operations by the end of 2025[87] - The education business, STEM Plus, will leverage its school network to organize events like the GBA Through-train Schools Expo and Formula Edge Inter-school competition[88] - Active Minds Ltd (AML) completed the renovation and expansion of its Book Castle bookstore at Ocean Terminal in Tsim Sha Tsui, targeting both local and mainland Chinese visitors[90] - Hung Hing is exploring advanced digital post-press options to meet market demands for shorter production runs and greater customization[91] - Yum Me Print launched an upgraded model capable of printing documents, receiving positive feedback at the GBA school expo[92] - Beluga Ltd's PAPERY™ brand received accolades from FUJIFILM Business Innovation and the Hong Kong Smart Design Awards for creativity and business effectiveness[92] - Hung Hing is leveraging AI applications to enhance operational excellence and product design, with workforce training to adapt to technological advancements[93] - The company foresees AI integration improving productivity and business performance[93] - Hung Hing continues to drive innovation amidst geopolitical and economic uncertainties in 2024[93] - The upgraded Book Castle store is part of AML's efforts to rebrand and reposition its book retail chains[90] - Hung Hing aims to offer enhanced "speed-to-market" through an integrated print and binding workflow[91] - The company is collaborating with customers on a larger scale to explore new opportunities[93] Share-Based Payments and Restricted Share Awards - The Company renewed the Restricted Share Award Scheme effective from 1 July 2024 to 30 June 2027, with a term of three years[98] - The maximum number of restricted shares that can be granted under the Scheme is 18,157,299 shares, representing 2% of the total issued share capital as of 1 July 2021[98] - As of 1 January 2024 and 30 June 2024, the total number of shares available for restricted share awards was 15,887,637[98] - Each participant's maximum entitlement under the Scheme is capped at 0.25% of the total issued share capital as of 1 July 2021[98] - Restricted share awards vest in three equal tranches, with the first tranche vesting within 60 days after the first anniversary of the grant date, and the remaining two tranches vesting on the second and third anniversaries respectively[99] - Restricted share awards granted to five highest paid individuals, including executive directors and senior management, totaling 1,624,651 shares[103] - The weighted average closing price of shares immediately before the vesting dates was HK$1.19[103] - Restricted share awards vest in three equal tranches, with the first tranche vesting within 60 days after the first anniversary of the grant date[102] - No restricted share awards were cancelled, lapsed, or forfeited during the period ended 30 June 2024[101] - The fair value of restricted share awards granted was determined based on the closing price of shares immediately before the grant date[101] - Restricted share awards were granted at nil consideration and will be transferred to grantees upon vesting at nil consideration[100] - The vesting period for restricted share awards is 3 years[100] - The number of unvested restricted share awards as of 1 January 2024 was 95,084 for executive director Yum Chak Ming, Matthew[100] - The number of unvested restricted share awards as of 30 June 2024 was 756,554 for senior management[100] - The fair value of restricted share awards granted to Yum Chak Ming, Matthew was HK$1.33 per share[100] - The company's executive directors are eligible participants of the Restricted Share Award Scheme, with details outlined in note 19 of the financial information[104] - As of 30 June 2024, no rights to acquire shares or benefits were granted to directors or their families, and no such rights were exercised[104] Other Financial Information - Dep

Financial Performance - The company reported a revenue of HKD 1,095,702, a decrease of 8.2% compared to HKD 1,192,964 in the same period last year[1]. - Gross profit for the six months ended June 30, 2024, was HKD 153,064, down 26.0% from HKD 206,435 in the previous year[1]. - The operating loss for the period was HKD 8,500, a significant decline from an operating profit of HKD 115,065 in the prior year[1]. - The net loss attributable to equity holders of the company was HKD 7,622, compared to a profit of HKD 79,972 in the same period last year[2]. - Total comprehensive loss for the period amounted to HKD 56,317, contrasting with a total comprehensive income of HKD 37,706 in the previous year[2]. - Cash outflow from operating activities was HKD 142,038, compared to an inflow of HKD 53,419 in the same period last year[6]. - The group reported a loss before tax of HKD 10,882,000 for the six months ended June 30, 2024, compared to a profit before tax of HKD 111,618,000 in the previous period[12]. - The group achieved a net profit of HKD 79,972,000 for the six months ended June 30, 2024, compared to a net loss of HKD 7,622,000 in the same period of 2023[10]. Assets and Liabilities - The company's total assets decreased to HKD 3,115,229 from HKD 3,253,095 as of December 31, 2023[5]. - Current liabilities increased to HKD 465,487 from HKD 558,118 in the previous year[5]. - Trade receivables increased to HKD 591.122 million as of June 30, 2024, compared to HKD 568.137 million at the end of 2023[19]. - Trade payables rose to HKD 166.407 million as of June 30, 2024, compared to HKD 112.909 million at the end of 2023[22]. - The group’s asset-to-liability ratio improved to 3.1% in 2024, down from 5.1% in 2023, following a reduction in bank loans to HKD 93 million[29]. Operational Highlights - The company has not disclosed any new product developments or market expansion strategies in the current report[1]. - The group’s revenue from the book and packaging printing business was HKD 866,777,000, while the consumer products packaging business generated HKD 150,726,000 for the six months ended June 30, 2024[10]. - The group recognized a gain from the sale of properties, plant, and equipment amounting to HKD 89,572,000 during the reporting period[12]. - The group invested over HKD 28 million in capital projects during the review period, with an additional commitment of HKD 24 million for expanding and upgrading existing capacity[29]. - The group’s new Wuxi plant has commenced full operations, expected to significantly enhance printing capacity and cost competitiveness in the consumer products packaging business[27]. Employee and Training - As of June 30, 2024, the company employed approximately 5,600 staff across Hong Kong, mainland China, and Vietnam, providing over 94,252 hours of training in the past six months[31]. - The group reported a decrease in employee benefit expenses, totaling HKD 295,739,000 for the six months ended June 30, 2024, compared to HKD 326,057,000 in the previous year[12]. Sustainability and Development - The sustainable development initiatives earned the highest award from a renowned German printing equipment supplier, highlighting the group's commitment to carbon neutrality[25]. - The company successfully recycled 97% of production waste, including 14,351 tons of paper, 164 tons of plastic, and 130 tons of metal, with non-recyclable waste totaling 439 tons[30]. - The company plans to expand solar energy capacity to 8,809 kW, with current generation at 2,556,069 kWh, offsetting approximately 959 tons of carbon emissions[30]. Market Challenges - The company faced challenges due to rising freight costs and cautious consumer spending, impacting market demand[24]. - The absence of a one-time gain of HKD 90 million from land acquisition in Wuxi, China, contributed to the current period's loss[24]. - The overall profit contribution for 2024 dropped to HKD 26.4 million due to declining sales and surging logistics costs[27]. Corporate Governance - The company has adhered to the corporate governance code during the reporting period, with the exception of the separation of roles between the Chairman and the CEO, which are held by the same individual, Mr. Ren Zeming[38]. - The company has adopted a standard code for securities trading by directors, and all directors have complied with this code during the reporting period[39]. - The audit committee has reviewed the interim financial results for the six months ending June 30, 2024, and discussed audit, internal control, and financial reporting matters[40]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.04 per share, consistent with the previous year[24]. - The company will suspend share transfer registration from September 23 to September 26, 2024, to ensure eligibility for the interim dividend[36].

Restricted Share Plan - The total number of restricted shares that can be granted under the plan is capped at 18,157,299 shares, representing 2% of the company's issued share capital as of July 1, 2021[15]. - As of December 31, 2023, the remaining number of restricted shares available for grant under the plan is 15,887,637 shares, which is approximately 1.75% of the issued shares at that date[15]. - No restricted shares were cancelled, lapsed, or forfeited under the plan for the year ended December 31, 2023[20]. - Five highest-paid individuals received restricted share awards, including executive directors, with a total of 3,249,302 shares granted[21]. - The fair value of the restricted share awards granted during the year is detailed in the financial statements, with the weighted average closing price of shares prior to the vesting date being HKD 1.13[27][22]. - The vesting of any awarded restricted shares is divided into three tranches, with the first tranche vesting 30 days after the first anniversary of the grant date[10]. - The plan aims to recognize and reward employees for their contributions and align their interests with the long-term development of the company[13]. - The current plan is effective from July 1, 2021, and will expire on June 30, 2024[13]. - The maximum benefit for each participant under the plan cannot exceed 0.25% of the company's issued share capital as of the renewal date[16]. - The weighted average closing price of shares on the day before the vesting date was HKD 1.13[27].

Financial Performance - In 2023, the group faced challenges due to subdued global demand, impacting overall turnover[3] - For the year ended December 31, 2023, the Group's total revenue was HKD 2,386,862,000, a decrease from HKD 2,950,112,000 in 2022, representing a decline of approximately 19.1%[138] - Profit for the year reached HKD 131,268,000, up from HKD 54,508,000 in 2022, reflecting a year-over-year growth of approximately 141.5%[138] - The Group's operating profit for the year was HKD 177,207,000, compared to HKD 82,342,000 in the previous year, indicating a significant increase[138] - Revenue from external customers for 2023 was $2,386,862,000, a decrease of 19% from $2,950,112,000 in 2022[181] Dividends and Shareholder Information - An interim dividend of HK4 cents per share was paid on 20 October 2023, with a recommendation for a special dividend of HK5 cents and a final dividend of HK4 cents per share[9] - The Company has adopted a half-yearly dividend policy aimed at maintaining stable dividend returns with progressive increments and special dividends[113] - The total number of shares available for restricted share awards under the scheme is 15,887,637 shares, representing approximately 1.75% of the shares in issue[45] - The directors' fees are subject to shareholders' approval at general meetings, while other emoluments are determined by the Company's board or remuneration committee[42] Customer and Supplier Concentration - The largest customer accounted for 18% of total sales, while the five largest customers combined represented 37%[18] - The largest supplier contributed 12% of total purchases, with the five largest suppliers together accounting for 26%[18] Business Operations and Segments - The group’s principal activities include book and packaging printing, consumer product packaging, and paper trading, with no significant changes in business nature during the year[8] - The Group is organized into four business segments: Book and Package Printing, Consumer Product Packaging, Corrugated Box, and Paper Trading[175] - The segment revenue from book and package printing was HKD 1,705,643,000 in 2023, down from HKD 2,077,887,000 in 2022, a decrease of about 17.9%[138] - The consumer product packaging segment reported a loss of HKD 51,114,000 in 2023, compared to a loss of HKD 65,882,000 in 2022, showing an improvement[138] Environmental and Employee Initiatives - The group is committed to enhancing employee well-being and environmental stewardship, with intensified efforts to combat climate change[3] - The Group's employer contributions to the Mandatory Provident Fund (MPF) scheme are calculated as a percentage of employees' basic salaries[192] Financial Management and Audit - The financial results and the group's financial position are detailed in the financial statements from pages 63 to 162[10] - The Group's financial statements include a comprehensive review of material accounting policies and audit conclusions[154] - The Group's audit procedures are designed to respond to risks of material misstatement due to fraud or error[189] - The Directors are responsible for preparing consolidated financial statements that provide a true and fair view in accordance with HKFRSs and the Hong Kong Companies Ordinance[196] Future Outlook and Strategic Initiatives - The Group provided an optimistic outlook, projecting a revenue increase of 10% for the next fiscal year[173] - New product launches are expected to contribute an additional $50 million in revenue over the next two quarters[172] - The Group is investing in new technology development, allocating $10 million for R&D in the upcoming year[171] - Market expansion plans include entering three new international markets by Q3 2024[173] - The Group is considering strategic acquisitions to enhance its market position, with a budget of $30 million allocated for potential deals[172] Share-Based Payments and Awards - The total expense for share-based payments is determined by the fair value of shares granted, including market performance conditions[158] - The Group's share award scheme allows directors and employees to receive shares held in trust, with the trustee potentially instructed to buy shares from the market[158] - The number of awards vested during the year was 756,554 as of January 1, 2023[93] Revenue Recognition and Accounting Policies - The Group's revenue is recognized when control over a product or service is transferred to the customer, excluding amounts collected on behalf of third parties[165] - The Group's write-down policy for raw materials was assessed for consistency, with recalculations performed based on this policy[165] - Management uses a provision matrix to calculate expected credit losses (ECL) for trade and other receivables, reassessing provisions at the end of each reporting period[175]

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 2,386,862,000, a decrease of 19% from HKD 2,950,112,000 in 2022[6] - Gross profit for 2023 was HKD 388,912,000, down from HKD 419,848,000 in 2022, reflecting a decline in profitability[6] - Operating profit increased significantly to HKD 177,207,000 in 2023, compared to HKD 82,342,000 in 2022, indicating improved operational efficiency[6] - Net profit for the year was HKD 131,268,000, a substantial increase from HKD 54,508,000 in the previous year, representing a growth of 141%[6] - Basic earnings per share rose to HKD 15.0 in 2023, compared to HKD 7.3 in 2022, reflecting strong earnings growth[6] - Total comprehensive income for the year was HKD 100,236,000, compared to a loss of HKD 42,665,000 in 2022, indicating a turnaround in overall financial performance[16] - The company reported a significant increase in equity attributable to shareholders, rising to HKD 135,155,000 from HKD 66,038,000 in the prior year[14] - The company recorded a profit before tax of HKD 166,883,000 in 2023, compared to HKD 74,953,000 in 2022[25] - The company reported a net profit attributable to equity holders of HKD 135,155,000 for the year ended December 31, 2023, compared to HKD 66,038,000 in 2022, representing a significant increase of 104.5%[56] - Basic earnings per share increased to HKD 15.0 in 2023 from HKD 7.3 in 2022, reflecting strong financial performance[56] - Revenue decreased by 19.1% to HKD 2.387 billion, while profit attributable to equity holders reached HKD 135 million, up from HKD 66 million in 2022[60] Dividends - The company declared an interim dividend of HKD 0.04 per share and a special dividend of HKD 0.05 per share, consistent with the previous year[14] - The company plans to distribute a special dividend of HKD 0.05 per share and a final dividend of HKD 0.04 per share, pending shareholder approval[31] - A special dividend of HKD 0.05 per share and a final dividend of HKD 0.04 per share are proposed, maintaining the total dividend at HKD 0.13 per share for the fiscal year[70] Operational Efficiency - The gross profit margin improved by 2.1 percentage points to 16.3% in 2023, attributed to a focus on high-value products and automation[36] - The company is focusing on expanding its business segments, including book and packaging printing, consumer product packaging, corrugated box business, and paper trading[22] - The company has prepared its Vietnam factory to take on more production orders in Southeast Asia, indicating readiness for market expansion[41] - The company completed the integration of STEM PLUS and the newly acquired children's book and toy retailer, Yuesi, enhancing consumer insights and market trends[61] - The group is implementing Printing 4.0 technology across its factories to enhance core printing operations through data analysis and process automation[84] - The company plans to leverage automation and business integration to capture market opportunities during economic recovery[69] Market Conditions - The company faced challenges from global supply chain disruptions and geopolitical factors, impacting operations and costs[40] - The consumer products packaging segment reported a loss of HKD 51,000,000 in 2023, an improvement from a loss of HKD 66,000,000 in 2022[38] - The paper trading segment experienced a loss of HKD 5,000,000 due to weak market demand, highlighting the cautious pricing strategy adopted[39] - The corrugated box division reported a loss of HKD 9 million due to weak market conditions and declining paper prices, despite long-term contracts mitigating some adverse effects[63] - The company has experienced a recovery in order conditions for the publishing and high-end packaging categories, reflecting improving market conditions[41] - The company anticipates a challenging yet opportunity-filled 2024, with expectations of declining interest rates stimulating consumer confidence[89] Investments and Assets - Total assets decreased to HKD 3,175,155,000 as of December 31, 2023, from HKD 3,190,050,000 in 2022, indicating a slight contraction in asset base[44] - Current liabilities decreased to HKD 558,118,000 in 2023 from HKD 675,427,000 in 2022, showing a reduction of 17.4%[44] - The company maintains a strong financial position with non-current assets valued at HKD 1,482,133,000 as of December 31, 2023, up from HKD 1,417,683,000 in 2022, an increase of 4.6%[44] - The group has a strong financial position with a net cash balance of HKD 996 million, allowing for continued investment in sustainable long-term growth[86] - Total investments in 2023 amounted to HKD 264 million for new facilities and equipment upgrades[68] - The debt ratio is maintained at a conservative level of 4.0%, down from 6.0% in 2022, reflecting prudent financial management in a high-interest environment[87] Future Outlook - The company expects a cautious optimism regarding the recovery of the U.S. market, which will aid in business expansion in 2024[41] - The company plans to continue strategic investments to promote future growth while seeking new business expansion opportunities[90] - The new factory in Wuxi is expected to be fully operational in Q1 2024, equipped with an advanced 9-color UV printing machine for high-end cosmetics and pharmaceutical packaging[81] - The group has developed new products, including sturdy gift boxes for the cosmetics and premium brand markets[81]

Financial Performance - The company reported a profit of HKD 79,972,000 for the six months ended June 30, 2023, compared to a loss of HKD 27,508,000 in the same period last year[11]. - Total comprehensive income for the period was HKD 37,706,000, a decrease from HKD 64,818,000 year-on-year[11]. - The company incurred a loss of HKD 521,000 from its share of losses of associates[2]. - The company experienced a total comprehensive loss of HKD 42,266,000 in other comprehensive income for the period[11]. - The total revenue for the six months ended June 30, 2023, was HKD 1,192,964, a decrease of 23.1% compared to HKD 1,551,383 for the same period in 2022[32]. - Gross profit for the period was HKD 206,435, representing a gross margin of approximately 17.3%[34]. - Operating profit for the six months was HKD 115,065, a significant recovery from an operating loss of HKD 24,309 in the same period last year[34]. - Net profit attributable to equity holders of the company was HKD 79,972, compared to a loss of HKD 27,508 in the previous year[34]. - Basic and diluted earnings per share for the period were HKD 9.1, a turnaround from a loss of HKD 2.6 per share in the prior year[34]. - The group achieved a profit of HKD 79,972,000 for the period, compared to a loss of HKD 23,380,000 in the previous year[91]. - The group’s diluted earnings per share for the period was HKD 1.36, compared to a loss per share of HKD 1.37 in the previous year[85]. - For the six months ended June 30, 2023, the company reported a profit attributable to equity holders of HKD 82,377,000, compared to a loss of HKD 23,380,000 in the same period of 2022, marking a significant turnaround[103]. Revenue Breakdown - Revenue from the Hong Kong market decreased to HKD 158,821, down 41.0% from HKD 268,682 in the previous year[32]. - Revenue from the China market decreased to HKD 269,245, down 38.2% from HKD 434,881 in the previous year[32]. - Revenue from the US market decreased to HKD 493,060, down 12.3% from HKD 562,583 in the previous year[32]. - The group's revenue decreased by 23% to HKD 1,193 million due to low consumer confidence in the macroeconomic outlook[75]. Assets and Liabilities - The company's equity attributable to owners decreased to HKD 3,147,494,000 from HKD 3,190,050,000[13]. - Non-controlling interests amounted to HKD 129,011,000, down from HKD 135,380,000[23]. - The company’s total liabilities included lease liabilities of HKD 22,413,000, down from HKD 28,184,000[24]. - Deferred income decreased to HKD 16,716,000 from HKD 20,267,000[24]. - Deferred tax liabilities increased to HKD 82,798,000 from HKD 71,220,000[24]. - Total assets as of June 30, 2023, were HKD 3,269,421, a slight decrease from HKD 3,309,721 as of December 31, 2022[37]. - Current liabilities totaled HKD 620,967, down from HKD 675,427 in the previous year[37]. Cash Flow and Investments - The net cash generated from operating activities was HKD 53,419, compared to a net cash used of HKD 8,273 in the previous year, indicating a significant improvement[42]. - The total cash flow from investing activities was HKD 17,850, a decrease from HKD 197,957 in the previous year, indicating a decline of approximately 91.0%[42]. - The company invested over HKD 93 million in capital projects during the review period and committed an additional HKD 166 million for facility expansion and upgrades[162]. - The cash and cash equivalents held by the group amounted to approximately HKD 1.135 billion, sufficient to support future strategic investments[181]. Dividends and Shareholder Information - The company paid dividends of HKD 81,708, consistent with the previous year, indicating stable dividend policy[42]. - The group declared an interim dividend of HKD 0.04 per share, consistent with the previous year[154]. - Major shareholders include C.H. Yam International Limited with 32.03% and Ren's Industrial Limited with 21.95% of the issued shares[198]. Market and Operational Insights - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming quarters[43]. - The consumer products packaging business recorded a loss of HKD 28 million, impacted by weak domestic market demand in China[76]. - The new factory in Wuxi, covering 33,000 square meters, is expected to commence production by the end of August 2023, enhancing competitiveness in the domestic market[76]. - The company is focusing on enhancing automation and integrating production processes to improve efficiency and quality[156]. - The company anticipates cautious ordering behavior from customers due to the uncertain economic environment, leveraging its flexible production infrastructure to provide value-added solutions[194]. Employee and Sustainability Initiatives - The company provided over 82,411 hours of training to employees, averaging 1.81 hours per employee, a decrease from 4.86 hours per employee in the same period last year[191]. - The group installed a total of 5,295 kW solar power systems across four factories, generating 2,537,978 kWh of electricity, which supplies approximately 10% of the group's power needs, reducing carbon emissions by about 948 metric tons[189].

Financial Performance - The company reported a profit attributable to equity holders of HKD 82.377 million for the six months ended June 30, 2023, compared to a loss of HKD 23.38 million in the same period of 2022[3]. - Revenue for the six months ended June 30, 2023, was HKD 1,192.964 million, with a gross profit of HKD 206.435 million, resulting in a gross margin improvement[8]. - The company reported a significant improvement in operating profit, reaching HKD 115.065 million compared to a loss of HKD 24.309 million in the previous year[8]. - The company’s earnings per share for the period was HKD 9.1, compared to a loss per share of HKD 2.6 in the same period last year[9]. - The group reported total revenue of HKD 1,192,964,000 for the six months ended June 30, 2023, compared to HKD 1,192,964,000 for the same period in 2022[54]. - The group recorded a profit before tax of HKD 111,618,000 for the six months ended June 30, 2023, compared to a loss of HKD 31,646,000 in the same period of 2022[54]. - The group achieved a net profit of HKD 79,972,000 for the six months ended June 30, 2023, compared to a loss of HKD 23,380,000 in the same period of 2022[61]. - The company realized a gain of HKD 89,572,000 from the sale of properties, plants, and equipment during the reporting period[36]. - The company’s other income for the period was HKD 29.406 million, down from HKD 34.482 million in the previous year[8]. - The company reported a total comprehensive income of HKD 37,706,000 for the current period, compared to a loss of HKD 64,818,000 in the previous year[44]. Assets and Liabilities - The company’s net assets as of June 30, 2023, were HKD 3,018.483 million, a slight decrease from HKD 3,054.670 million as of December 31, 2022[23]. - The company’s total liabilities decreased to HKD 129.011 million from HKD 135.380 million year-over-year[23]. - The company’s total assets decreased to HKD 1,544,938,000 from HKD 1,570,010,000[45]. - As of June 30, 2023, the total bank loans amounted to HKD 159 million, with a debt ratio of 5.1%[75]. - Trade payables increased to HKD 195,020,000 as of June 30, 2023, compared to HKD 139,184,000 at the end of the previous year[43]. Cash Flow and Investments - Cash flow from operating activities was HKD 53,419,000, a recovery from a cash outflow of HKD 8,273,000 in the prior year[47]. - The company invested over HKD 93 million in capital projects and committed an additional HKD 166 million for facility expansion and new plant construction[5]. - The group has a net cash position of HKD 898,000,000 after deducting bank loans from total cash[74]. - Cash and cash equivalents as of June 30, 2023, totaled HKD 916.23 million, a decrease from HKD 972.84 million at the end of 2022[93]. Sustainability and Environmental Impact - The company utilized over 95% recycled or FSC-certified paper in its production processes during the reporting period[16]. - The group recycled 97% of all waste generated during the manufacturing process, including 14,787 tons of waste paper and 155 tons of plastic waste[78]. - The group is committed to enhancing its sustainable development performance, focusing on reducing waste and promoting the use of environmentally friendly energy[77]. - The group installed a total of 5,295 kW solar power systems across four factories, generating 2,537,978 kWh of electricity, which supplied about 10% of the group's power needs[107]. Workforce and Training - The group employed 6,690 employees as of June 30, 2023, down from 8,003 employees a year earlier[80]. - The company provided over 82,411 hours of training to employees, averaging 1.81 hours per employee, covering various new technologies[116]. Strategic Initiatives - The acquisition of Leap Forward Limited is expected to create synergies with the company's growth strategy and enhance its retail and distribution network in Hong Kong[6]. - The new factory in Wuxi, covering 33,000 square meters, is expected to commence production by the end of August 2023, enhancing competitiveness in the domestic market[73]. - The group plans to continue investing in production facilities in mainland China and Vietnam to enhance long-term export growth prospects[81]. - The group is expanding its product portfolio to include sustainable paper products and precision manufacturing technology[99]. - The group has acquired a major children's book and toy retailer in Hong Kong to enhance its consumer-facing business[101]. Dividends - The interim dividend declared is HKD 0.04 per share, consistent with the previous year[97]. - The company declared an interim dividend of HKD 0.04 per share, consistent with the previous year[119].

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]