Financial Performance - The Group's total revenue from continuing operations decreased by 22.8% from approximately HK$928.5 million in 2022 to approximately HK$716.7 million in 2023[12]. - The Group recorded a loss attributable to owners of the Company of approximately HK$163.9 million, compared to a profit of approximately HK$6.2 million in 2022, resulting in basic losses per share of approximately HK16.3 cents[18]. - Revenue from the printing and manufacturing of paper packages and related materials was approximately HK$683.6 million, down from HK$890.6 million in 2022, accounting for approximately 95.4% of total revenue[32]. - Other income from continuing operations decreased by 29.3% to approximately HK$23.1 million in 2023, down from approximately HK$32.7 million in 2022, mainly due to a reduction in government grants[34]. - Other losses from continuing operations amounted to HK$167.5 million in 2023, compared to other gains of HK$15.9 million in 2022, primarily due to impairment losses on interests in an associate and goodwill[39]. - The share of results of associates turned from a profit of approximately HK$1.6 million for the year ended 31 December 2022 to a loss of approximately HK$30.4 million for the year ended 31 December 2023[48]. - Loss attributable to owners of the Company was approximately HK$163.9 million for the year ended 31 December 2023, compared to a profit of approximately HK$6.2 million for the year ended 31 December 2022[59]. - The loss was primarily due to a decline in share of results of an associate of approximately HK$32.0 million and recognition of impairment losses totaling approximately HK$159.1 million on interests in associates and goodwill[60]. Cost Management and Efficiency - The Group implemented measures to enhance inventory management and improve decision-making efficiency in response to operating pressures from declining tender prices and rising raw material costs[13]. - The Group focused resources on centralized management and production at Bengbu Jinhuangshan Rotogravure Printing Co., Ltd. to improve cost control and production efficiency[17]. - The Group's measures included implementing a tendering system for raw material purchases to enhance bargaining power and control costs[13]. - Selling and distribution expenses decreased by 22.4% to approximately HK$17.7 million in 2023 from approximately HK$22.8 million in 2022[41]. - Administrative expenses decreased by 36.0% to approximately HK$70.3 million in 2023 from approximately HK$109.8 million in 2022[42]. - Finance costs from continuing operations decreased by 57.7% from approximately HK$10.0 million for the year ended 31 December 2022 to approximately HK$4.2 million for the year ended 31 December 2023[46]. - The Group's total remuneration cost for the year ended 31 December 2023 was approximately HK$84.8 million, a decrease from approximately HK$127.3 million in 2022[90]. Economic Environment - The GDP of the People's Republic of China increased by 5.2% in 2023, higher than the 3.0% increase in 2022[11]. - The economic outlook for the PRC remains uncertain due to global inflation and various geopolitical factors, which may adversely affect the Group's operating environment in 2024[19]. - The outlook for the global and Chinese economy remains uncertain, which may adversely affect the Group's operating environment in 2024[22]. Dividends and Shareholder Returns - The Board does not recommend the payment of a final dividend for the year ended 31 December 2023, compared to HK4 cents per share in 2022[18]. - As of December 31, 2023, the company's reserves available for distribution amounted to approximately HK$6,222.3 million[113]. Assets and Liabilities - The Group's current ratio improved to 2.2 times in 2023, up from 1.5 times in 2022[65]. - The quick ratio also improved to 2.0 times in 2023, compared to 1.3 times in 2022[65]. - As of December 31, 2023, the Group had net current assets of approximately HK$577.7 million, an increase from approximately HK$321.1 million in 2022[67]. - The Group's bank balances and cash amounted to approximately HK$345.8 million as of December 31, 2023, compared to approximately HK$313.3 million in 2022[67]. - Outstanding bank borrowings decreased to approximately HK$131.6 million in 2023 from approximately HK$266.6 million in 2022[68]. - The Group's net cash position improved to approximately HK$236.1 million in 2023, up from approximately HK$137.9 million in 2022[68]. - Capital commitments increased to approximately HK$39.6 million in 2023, compared to approximately HK$7.4 million in 2022, mainly related to the development of an industrial park[76]. Corporate Governance and Compliance - The Group has complied with all relevant rules and regulations in the PRC that significantly impact its operations[98]. - The company has complied with the disclosure requirements of Chapter 14A of the Listing Rules regarding related party transactions[157]. - The company has maintained liability insurance for Directors and officers throughout the year[162]. - All three independent non-executive Directors have confirmed their independence as per the Listing Rules[149]. - The company has taken steps to ensure that all Directors are indemnified against actions incurred in the execution of their duties[161]. - The company generally complies with the Corporate Governance Code, with exceptions noted in provisions B.2.4(b), C.1.6, and C.2.1[198]. Employee and Social Responsibility - As of 31 December 2023, the Group had 582 employees, down from 663 in 2022[90]. - The Group emphasizes workplace safety, employee relations, and efficient resource use as part of its corporate culture[192]. - The Board is responsible for the Company's ESG strategy and conducts regular reviews of ESG-related matters[194]. - The board regularly reviews the company's environmental, social, and governance (ESG) performance and risks, ensuring adequate resources and training programs are in place[197].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported revenue from continuing operations of HKD 716,658,000, a decrease of 22.8% compared to HKD 928,475,000 in the previous year[11]. - The company recorded a loss from continuing operations of HKD 156,143,000, compared to a loss of HKD 1,290,000 in the previous year, indicating a significant decline in performance[11]. - The company reported a net loss before tax of HKD 139,784,000, compared to a profit of HKD 7,351,000 in the previous year, highlighting a substantial downturn[11]. - The total comprehensive loss for the year amounted to HKD 255,767,000, compared to HKD 196,510,000 in the previous year, representing an increase of 30%[2]. - The company’s basic and diluted loss per share from continuing operations was HKD (0.100), compared to HKD (0.001) in the previous year[2]. - The company reported a significant loss attributable to shareholders, mainly due to a decrease in the share of joint venture performance by approximately HKD 32,000,000 and goodwill impairment losses of approximately HKD 92,700,000[113]. - The group reported a loss attributable to shareholders of approximately HKD 163.9 million for the year ended December 31, 2023, compared to a profit of HKD 6.2 million in 2022[140]. Revenue and Income - Other income for the year was HKD 23,146,000, down from HKD 32,743,000, reflecting a decrease of 29.3%[11]. - The company’s total revenue for the year ended December 31, 2023, was HKD 729,221 thousand, compared to HKD 683,145 thousand in 2022, reflecting a growth of approximately 6.7%[30]. - The total revenue from continuous operations was HKD 762,322 thousand, down from HKD 1,022,402 thousand, a decrease of 25.4%[44]. - The revenue from the printing and manufacturing of paper packaging and related materials was approximately HKD 683.6 million, accounting for about 95.4% of total revenue in 2023[130]. - Total revenue for the year ended December 31, 2023, was HKD 683,557,000, compared to HKD 607,056,000 in 2022, representing an increase of approximately 12.6%[190]. Costs and Expenses - The cost of sales for the year was HKD 589,519,000, down from HKD 828,810,000, resulting in a gross profit of HKD 127,139,000, an increase of 27.7% from HKD 99,665,000[11]. - Employee costs for continuing operations amounted to HKD 78.353 million in 2023, down 32.6% from HKD 116.216 million in 2022[88]. - The cost of inventory for continuing operations was HKD 452.558 million in 2023, a decrease of 24.1% from HKD 596.720 million in 2022[88]. - Sales and distribution expenses for the year ending December 31, 2023, decreased by 22.4% to approximately HKD 17,700,000 from HKD 22,800,000 for the year ending December 31, 2022, primarily due to reduced transportation and hospitality costs[107]. - Administrative expenses for the year ending December 31, 2023, decreased by 36.0% to approximately HKD 70,300,000 from HKD 109,800,000 for the year ending December 31, 2022[108]. Assets and Liabilities - Total assets decreased from HKD 2,554,213 thousand in 2022 to HKD 2,218,066 thousand in 2023, a decline of approximately 13.2%[14]. - Current liabilities decreased from HKD 640,448 thousand in 2022 to HKD 495,461 thousand in 2023, a reduction of about 22.7%[14]. - Trade receivables decreased from HKD 363,892 thousand in 2022 to HKD 242,576 thousand in 2023, a drop of approximately 33.3%[14]. - The company reported a net asset value of HKD 2,156,655 thousand in 2023, down from HKD 2,475,137 thousand in 2022, a decrease of about 12.9%[14]. - The group’s current ratio improved to 2.2 times in 2023 from 1.5 times in 2022, and the quick ratio improved to 2.0 times from 1.3 times[143]. Strategic Plans and Future Outlook - The company plans to focus on new product development and market expansion strategies to improve future performance[11]. - The company aims to enhance operational efficiency and reduce costs in response to the challenging market conditions[11]. - The company plans to expand its market presence in Brazil, India, Turkey, Portugal, and South Korea[55]. - The group aims to optimize its asset portfolio by selling non-core assets and focusing on core business development to enhance profitability and shareholder returns[155]. - The group plans to continue expanding its market presence in packaging while seeking maximum returns from investment properties[155]. Governance and Management - The company is committed to maintaining a clear division of responsibilities between the Chairman and the CEO, as per governance guidelines[182]. - The company has not yet appointed an individual to fill the vacancy of the Chief Executive Officer since the resignation of the previous CEO on April 22, 2022[183]. - The company is currently undergoing a review by the audit committee, indicating a focus on financial oversight and compliance[184]. Market Conditions and Challenges - The company has faced operational pressure due to increased competition and rising raw material costs in the tobacco industry[100]. - The economic outlook for China remains uncertain due to global inflation, competition between the US and China, and ongoing geopolitical tensions, which may adversely affect the Group's business environment in 2024[176].

Financial Performance - For the six months ended June 30, 2023, the company achieved revenue from continuing operations of approximately HK$335.5 million, with a total loss attributable to owners amounting to approximately HK$51.3 million and a total basic loss per share of approximately HK$0.033[9]. - Revenue from continuing operations decreased by approximately HK$144.0 million or 30.0% to HK$335.5 million compared to the same period in 2022[30]. - Revenue for the six months ended June 30, 2023, was HK$356,317,000, a decrease of 31.6% compared to HK$521,200,000 for the same period in 2022[183]. - The overall financial performance for the first half of 2023 indicates a significant decline in revenue across various segments compared to the previous year[183]. - The company reported a basic and diluted loss per share of HK$0.033 for the total operations, compared to earnings of HK$0.011 in the previous year[129]. - Total comprehensive loss for the period was HK$145,624,000, compared to HK$68,044,000 in the previous year, reflecting an increase of 114%[131]. Revenue Breakdown - Revenue from the sale of goods in continuing operations was HK$320,692,000, down 31.0% from HK$465,232,000 in the previous year[186]. - Revenue from discontinued operations, specifically from the sale of RFID products, was HK$20,857,000, a decline of 50.0% from HK$41,686,000 in the prior year[186]. - The Group's revenue from printing cigarette packages was HK$276,037,000, down 27.2% from HK$379,175,000 in the previous year[186]. - Manufacturing of paper packaging materials generated revenue of HK$42,995,000, a decrease of 49.3% compared to HK$84,858,000 in the same period last year[186]. - Revenue from investment properties leasing increased slightly to HK$14,768,000 from HK$14,282,000, reflecting a growth of 3.4%[183]. Economic Environment - The gross domestic product (GDP) of the People's Republic of China increased by 5.5% compared to 2022, but the global economic outlook remains uncertain due to high inflation and geopolitical tensions[10]. - The ongoing geopolitical tensions and inflationary pressures are expected to adversely affect the company's operating environment in the second half of 2023[10]. Cost Management and Profitability - The company implemented measures to cope with profitability challenges, including simplifying management structure and enhancing inventory management[12]. - The company centralized its production resources to improve cost control and production efficiency, particularly in response to stringent environmental protection requirements[18]. - Selling and distribution expenses decreased by approximately HK$3.4 million or 34.2% to HK$6.6 million compared to the previous year[42]. - Administrative expenses decreased by approximately HK$39.0 million or 54.6% compared to the same period in 2022[43]. - Finance costs decreased by approximately HK$3.4 million or 61.0% due to a reduction in bank borrowings and interest rates[44]. Assets and Liabilities - As of June 30, 2023, net current assets increased to approximately HK$375.0 million from HK$321.1 million as of December 31, 2022, primarily due to a decrease in bank borrowings[58]. - Bank borrowings (repayable within one year) decreased to approximately HK$129.4 million from HK$266.6 million as of December 31, 2022[63]. - Total assets less current liabilities decreased to HK$2,328,306, down from HK$2,554,213 as of December 31, 2022, representing a decline of approximately 8.8%[134]. - Current liabilities decreased to HK$518,480 from HK$640,448, a reduction of approximately 19.0%[134]. Corporate Governance - The Company has complied with the Corporate Governance Code, except for specific provisions regarding independent non-executive directors[99]. - The roles of chairman and chief executive officer are currently performed collectively by all executive directors since April 22, 2022[102]. - The audit committee consists of three independent non-executive Directors and one non-executive Director, ensuring oversight of financial reporting[118]. Future Outlook - The Group plans to maximize leasing income from investment properties and actively expand into other packaging markets[25]. - The Group aims to explore acquisition opportunities and diversification into other profitable businesses for sustainable growth[26]. - Future outlook may include potential new product developments and market strategies to enhance revenue streams[200]. Shareholder Information - As of June 30, 2023, Mr. Cai Xiao Ming, David holds 901,456,892 shares, representing approximately 57.50% of the issued share capital[96]. - Profitcharm Limited, beneficially owned by Mr. Cai, holds 274,325,278 shares, accounting for about 17.50% of the issued share capital[96]. - The Company has not purchased, sold, or redeemed any of its securities during the review period[98].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公布之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公布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。 LITU HOLDINGS LIMITED 力 圖 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1008） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 布 力圖控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公布本公司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月（「回 顧期間」）的未經審核簡明綜合業績，連同二零二二年同期的比較數字如下： 簡明綜合全面收益報表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 二零二三年 二零二二年 （未經審核） （未經審核） （經重列） 附註 千港元 千港元 持續經營業務： 收益 4 335,460 479,514 銷售成本 (279,762) (423,810) ...

Financial Performance - The profit attributable to the owners of the Company decreased by 28.1% from approximately HK$8.6 million for the year ended 31 December 2021 to approximately HK$6.2 million for the year ended 31 December 2022[7]. - Total revenue declined by 15.0% from approximately HK$1,158.9 million in 2021 to approximately HK$984.5 million in 2022, with a gross profit margin decreasing from 13.9% to 10.5%[13]. - Gross profit decreased by 36.2% from approximately HK$161.5 million in 2021 to approximately HK$103.1 million in 2022, primarily due to decreased revenue and increased raw material prices[15]. - Profit attributable to owners decreased by 28.1% from approximately HK$8.6 million in 2021 to approximately HK$6.2 million in 2022, with basic earnings per share at approximately HK$0.4 cents[80]. - The share of results from associates decreased by 97.8% from approximately HK$70.1 million in 2021 to approximately HK$1.6 million in 2022, primarily due to the decline in profitability of Changde Gold Roc Printing Co., Ltd.[94]. - The effective tax rate increased from 34.8% in 2021 to 50.1% in 2022, primarily due to a decrease in overprovision of enterprise income tax in prior years[118]. Revenue and Customer Concentration - The Group's five largest customers accounted for approximately 63.1% of total revenue, with the largest customer contributing about 35.9%[24]. - Revenue from the printing and manufacturing of paper packages and related materials was approximately HK$888.1 million in 2022, down from HK$1,053.5 million in 2021, accounting for approximately 90.2% of total revenue[87]. - Aggregate sales to the Group's five largest customers accounted for approximately 63.1% of total revenue, with the largest customer contributing approximately 35.9%[168]. Assets and Liabilities - As of 31 December 2022, the Group's net current assets were approximately HK$321.1 million, down from approximately HK$398.1 million in 2021[9]. - The Group's cash and bank balances were approximately HK$313.3 million as of 31 December 2022, compared to approximately HK$440.4 million in 2021[9]. - As of December 31, 2022, the Group's outstanding bank borrowings were approximately HK$266.6 million, down from approximately HK$342.4 million in 2021[128]. - The Group's net cash position improved to approximately HK$137.9 million in 2022 from approximately HK$106.9 million in 2021[129]. - The current ratio remained stable at 1.5 times for both 2021 and 2022, while the quick ratio decreased slightly from 1.4 times in 2021 to 1.3 times in 2022[127]. - The Group's gearing ratio as of December 31, 2022, was –5.6%, compared to –4.0% in 2021, indicating a net cash position relative to total equity[129]. Operational Changes and Strategies - The Group plans to explore new investments and divest subsidiaries to achieve sustainable growth and enhance profitability[4]. - The Group plans to focus resources on Bengbu Jinhuangshan Rotogravure Printing Co., Ltd. to improve cost control and production efficiency[59]. - The Group completed the acquisition of Eagle Swift Limited on January 26, 2022, which is expected to provide stable rental income and potential long-term appreciation in property value[84]. - The Group aims to explore new investment opportunities and diversify into other profitable businesses for sustainable growth[60]. - The Group plans to centralize production at its subsidiary in Bengbu to improve cost control and production efficiency[85]. Economic Outlook - The outlook for the global and PRC economy remains uncertain due to factors such as global inflation and geopolitical tensions, which may adversely affect the Group's operating environment in 2023[3]. - The Group anticipates challenges in 2023 due to global inflation and geopolitical tensions affecting the operating environment[58]. - The GDP of the PRC increased by 3.0% in 2022, lower than the 8.1% growth in 2021[77]. Employee and Remuneration - As of December 31, 2022, the Group employed 663 staff, down from 978 in 2021, with total remuneration costs of approximately HK$127.3 million in 2022 compared to HK$155.5 million in 2021[136]. - The total remuneration cost incurred by the Group for the year ended December 31, 2022, was approximately HK$127.3 million, a decrease from approximately HK$155.5 million in 2021[162]. - The Group had 663 employees as of December 31, 2022, down from 978 in 2021[162]. Dividends and Commitments - The Board recommended a final dividend of HK$0.04 per share for the year ended December 31, 2022, compared to no dividend in 2021[140]. - The proposed final dividend for the year ended December 31, 2022, is HK$0.04 per share, compared to no dividend in 2021[169]. - The Group had capital commitments of approximately HK$7.4 million as of December 31, 2022, significantly down from approximately HK$268.6 million in 2021[131]. - The Group's capital commitments for property, plant, and equipment as of December 31, 2022, were approximately HK$7.4 million, significantly reduced from approximately HK$268.6 million in 2021[158]. Other Financial Metrics - Other income increased by 24.6% from approximately HK$41.6 million in 2021 to approximately HK$51.8 million in 2022[64]. - Finance costs decreased by 29.3% from approximately HK$14.4 million in 2021 to approximately HK$10.2 million in 2022[67]. - The average bank borrowings rate and balance decreased in 2022, leading to improved bank loan portfolio management[90]. - The Group's return on equity decreased from 0.3% in 2021 to 0.2% in 2022, while return on total assets remained stable at 0.2%[102]. - The Group's treasury policy focuses on prudent financial management to ensure liquidity and meet funding requirements[157]. - The Group maintained a healthy liquidity position throughout 2022, with ongoing credit assessments to manage credit risk[157]. - The Group made charitable and other donations amounting to HK$0.018 million during the year, compared to HK$0.016 million in 2021[173].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公布的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公布全部或任何部分內容而產生或因依賴該等內容而引致的任何損 失承擔任何責任。 LITU HOLDINGS LIMITED 力 圖 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1008） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 布 力圖控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公布本公司 及其附屬公司（統稱「本集團」）截至二零二二年十二月三十一日止年度的 綜合業績，連同二零二一年同期的比較數字如下： 綜合全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收益 3 984,495 1,158,852 ...

Financial Performance - For the six months ended June 30, 2022, the company achieved revenue of approximately HK$506.9 million, with a profit attributable to owners of the company amounting to approximately HK$16.6 million and basic earnings per share of approximately HK$0.011[36]. - The Group's revenue increased by approximately HK$55.8 million or 12.4% to approximately HK$506.9 million during the Period under Review compared to HK$451.1 million in the corresponding period in 2021[53]. - Revenue for the six months ended June 30, 2022, was HK$506,918,000, representing an increase of 12.3% compared to HK$451,149,000 for the same period in 2021[139]. - Profit for the period was HK$17,644,000, slightly up from HK$17,255,000, showing a growth of 2.3%[139]. - Profit attributable to the owners of the Company was approximately HK$16.6 million, representing an increase of approximately HK$0.6 million or 3.8% compared to the corresponding period in 2021[72]. - Profit for the period for the six months ended June 30, 2022, was HK$16,648,000, up from HK$16,033,000 in the previous year, representing a growth of 3.84%[142]. - Total comprehensive losses for the period amounted to HK$68,044,000, compared to a gain of HK$36,934,000 in the same period last year[139]. - Total comprehensive losses attributable to owners of the Company were HK$67,883,000, compared to a profit of HK$37,173,000 in the same period last year[142]. Revenue Breakdown - The revenue from the printing and manufacturing of cigarette packages and related materials increased by 19.9% to HK$464.0 million, primarily due to an increase in sales orders from a major customer[43]. - Revenue from the printing and manufacturing of cigarette packages and related materials was approximately HK$464.0 million, an increase from HK$387.1 million in the same period last year[53]. - Revenue from the printing of cigarette packages was HK$379,175,000, up from HK$340,118,000, reflecting a growth of 11.5%[199]. - Revenue from the manufacturing of packaging materials increased significantly to HK$84,858,000, compared to HK$46,944,000, marking an increase of 80.8%[199]. - Sales of RFID products decreased by 22.0% to HK$42.9 million, down from HK$54.9 million due to production shutdowns caused by COVID-19 restrictions[45]. Cost and Expenses - Gross profit decreased by 16.0% to approximately HK$57.3 million, with a gross profit margin of 11.3%, down from 15.1% in the previous year[57]. - Administrative expenses rose by approximately HK$21.9 million or 41.8% compared to the previous year, mainly due to increased contractual termination benefits and depreciation from the acquisition of Eagle Swift Limited[66]. - Finance costs decreased by approximately HK$3.0 million or 34.2% due to a reduction in bank borrowings and interest rates[68]. - Administrative expenses increased to HK$74,278,000 from HK$50,986,000, marking a rise of 45.8%[139]. - Finance costs decreased to HK$5,738,000 from HK$8,716,000, a reduction of 34.0%[139]. Economic Environment - China's GDP grew by 2.5% year-on-year in the first half of 2022, indicating a steady economic recovery[38]. - The ongoing global economic uncertainties, including inflation and geopolitical tensions, may adversely affect China's economy and the company's operating environment in the second half of 2022[38]. - The State Council of China issued a "Policy Package to Stabilize the Economy" with 33 measures to support economic recovery, which may benefit the company[38]. Strategic Initiatives - The company is focusing on simplifying its management structure to improve decision-making efficiency in response to fast-changing market demands[40]. - The company is actively planning and organizing tendering among its subsidiaries to cope with intensified industry competition[39]. - The Group plans to continue expanding into new markets and developing new products to mitigate declining gross profit margins[49]. - The Group aims to achieve sustainable growth and improve profitability through diversification into other profitable businesses[51]. - The company is engaged in research and development on printing technology, which is a key area of focus for future growth[169]. Financial Position - The Group's net current assets decreased to approximately HK$205.9 million as of June 30, 2022, down from HK$398.1 million as of December 31, 2021[78]. - Bank borrowings amounted to approximately HK$396.0 million as of June 30, 2022, compared to HK$342.4 million as of December 31, 2021[78]. - The Group's gearing ratio was approximately 15.2% as of June 30, 2022, up from 12.8% as of December 31, 2021[78]. - The Group's liquidity position was maintained throughout the Period under Review[80]. - The company reported a decrease in inventories to HK$114,325,000 from HK$121,648,000, a decline of approximately 6.06%[146]. Shareholder Information - As of June 30, 2022, Mr. Cai Xiao Ming, David holds 901,456,892 shares, representing 57.50% of the issued share capital[102]. - Profitcharm Limited owns 274,325,278 shares, accounting for 17.50% of the issued share capital[104]. - Sinorise International Limited holds 627,131,614 shares, which is 40.00% of the issued share capital[105]. - Masterwork Group Co., Ltd. has an interest in 250,551,964 shares, representing 15.98% of the issued share capital[106]. Corporate Governance - The Company has complied with the Corporate Governance Code, except for code provision C.2.1 regarding the separation of roles of chairman and chief executive[119]. - The audit committee has reviewed the interim financial information and discussed internal control and risk management matters[127]. - The Company has not redeemed, purchased, or sold any of its shares during the review period[118]. Accounting Policies - The condensed consolidated financial statements for the six months ended June 30, 2022, have been prepared in accordance with Hong Kong Accounting Standard 34 and the applicable disclosure requirements of the Listing Rules[171]. - The Group's principal accounting policies remain consistent with those presented in the annual financial statements for the year ended December 31, 2021[175]. - The Group has applied several amendments to HKFRSs for the first time, which are mandatory effective for the annual period beginning on or after January 1, 2022[177].

Financial Performance - In 2021, the Group's total revenue decreased by 13.5% to approximately HK$1,158.9 million from HK$1,339.4 million in 2020[18]. - The gross profit margin declined from 19.8% in 2020 to 13.9% in 2021, indicating increased operational pressure[18]. - Profit attributable to owners of the Company decreased by 3.2% from approximately HK$8.9 million in 2020 to approximately HK$8.6 million in 2021, with basic earnings per share remaining at approximately HK$0.6 cent[23][26]. - The Group does not recommend the payment of a final dividend for the year ended December 31, 2021, compared to HK$0.10 per share in 2020[23][26]. - Gross profit decreased by 39.2% from approximately HK$265.8 million in 2020 to approximately HK$161.5 million in 2021, with the gross profit margin declining from 19.8% to 13.9%[38]. - Other income decreased by 11.4% from approximately HK$47.0 million in 2020 to approximately HK$41.6 million in 2021, primarily due to a reduction in government grants[38]. - Other net gains and losses decreased by 39.6% from approximately HK$173.8 million in 2020 to approximately HK$105.0 million in 2021, mainly due to a decrease in impairment losses on goodwill[42]. - Selling and distribution expenses decreased by 36.5% from approximately HK$41.2 million in 2020 to approximately HK$26.2 million in 2021, attributed to reduced sales expenses and staff costs[44]. - Administrative expenses increased by 29.0% from approximately HK$88.1 million in 2020 to approximately HK$113.7 million in 2021, mainly due to one-off compensation for staff[44]. - The Group recorded total revenue of approximately HK$1,158.9 million in 2021, representing a decrease of 13.5% compared to HK$1,339.4 million in 2020[38]. Economic Context - The GDP of the People's Republic of China increased by 8.1% in 2021, surpassing the growth target of 6%[17]. - The GDP per capita of the PRC reached RMB80,976, approximately US$12,551, in 2021[17]. - The ongoing global economic uncertainties, including COVID-19 outbreaks and rising inflation, may adversely affect the Chinese economy and the Group's operating environment in 2022[23][26]. - China's tobacco industry's sales volumes grew, with cigarettes sold increasing by 0.55% in volume and 5.21% in value[18]. Operational Challenges - The Group faced challenges due to unsuccessful bids in tenders, which are expected to adversely impact revenue and profitability in 2021 and beyond[19]. - The increase in raw material prices and mandatory tendering policy has intensified competition in the industry[18]. - The average selling price was pressured by the ongoing mandatory tendering system, impacting gross profit margins[38]. - The Group has established a specific team to manage tendering processes among subsidiaries to improve efficiency[18]. Strategic Initiatives - The Group plans to continue focusing on cigarette packaging while exploring new business opportunities, such as sales of RFID products, and will increase participation in tenders[24][26]. - The Group aims to improve financial performance and broaden revenue streams while managing risks effectively[25][32]. - The Group has implemented measures to strengthen production cost control and enhance inventory management[18]. Acquisitions and Investments - The Group completed the acquisition of Eagle Swift Limited on January 26, 2022, which holds a property in Hong Kong, viewed as a good investment opportunity for stable rental income[25][27]. - On October 21, 2021, the Group entered into an agreement to acquire Eagle Swift Limited for a cash consideration of HK$233 million[72]. Employee and Governance Matters - The Group had 978 employees as of December 31, 2021, a decrease from 1,150 employees in 2020[74]. - The total remuneration cost incurred by the Group for the year ended December 31, 2021, was approximately HK$155.5 million, down from approximately HK$172.3 million in 2020[74]. - The Group's retirement benefit schemes are designed to comply with local regulations, ensuring employees' benefits are preserved until retirement age[101][104]. - The Group's financial statements reflect a commitment to employee welfare through structured retirement benefit contributions[103][105]. - The appointment of Mr. Chen Xiao Liang as Chief Executive Officer took effect on January 21, 2022, following the resignation of Mr. Qin Song[120]. Corporate Governance - The Company adopted the Corporate Governance Code and generally complied with it for the year ended December 31, 2021, with exceptions noted for specific provisions[149]. - The Board currently comprises three independent non-executive Directors, representing more than one-third of the Board, ensuring compliance with independence criteria[114][117]. - The Company has appointed Mazars CPA Limited as its auditor for the year ended December 31, 2021, following the resignation of Deloitte[145]. - The Company ensures that all Directors have access to independent professional advice when necessary[157]. - The Company has implemented good corporate governance practices to ensure effective accountability within its management structure[149].

Financial Performance - For the six months ended June 30, 2021, the company achieved revenue of approximately HK$451.1 million, with a profit attributable to owners of the company amounting to approximately HK$16.0 million and basic earnings per share of approximately HK1 cent[9]. - The Group's revenue decreased by approximately HK$164.5 million or 26.7% to HK$451.1 million during the Period under Review compared to HK$615.6 million in the corresponding period in 2020[26]. - Revenue for the six months ended June 30, 2021, was HK$451,149,000, a decrease of 26.7% compared to HK$615,641,000 in 2020[90]. - Gross profit decreased by 49.6% to approximately HK$68.2 million, with the gross profit margin dropping to 15.1% from 22.0% in the previous year[32]. - Profit attributable to owners of the company was approximately HK$16.0 million, a decrease of approximately HK$67.0 million or 80.7% compared to the corresponding period in 2020, primarily due to an impairment loss on goodwill of approximately HK$41.5 million and a 32.3% decrease in sales volume of cigarette packages[41][43]. - Total comprehensive income for the period was HK$36,934,000, compared to HK$32,221,000 in 2020, indicating a 14.4% increase[93]. - Earnings per share for the period were HK$0.01, down from HK$0.05 in 2020[93]. Revenue Segments - Revenue from the printing and manufacturing of cigarette packages and related materials segment decreased by 32.3% to HK$387.1 million, primarily due to loss of tenders from major customers[26]. - Sales of RFID products increased by 87.2%, contributing HK$54.9 million to the Group's revenue, up from HK$29.3 million in the same period last year[26]. - Revenue from the printing and manufacturing of cigarette packages and related materials was approximately HK$387.1 million, a decrease from HK$571.4 million in the same period in 2020, representing a decline of approximately 32.2%[44][45]. Cost and Expenses - The company faced challenges due to falling tender prices and rising raw material costs, prompting measures to strengthen production cost control and improve efficiency[12]. - Other income decreased by HK$10.5 million to HK$16.7 million, mainly due to a reduction in government grants[32]. - Other losses increased by 778% to HK$35.9 million, primarily due to impairment losses on goodwill of approximately HK$41.5 million[32]. - Administrative expenses increased by approximately HK$5.9 million or 12.8% compared to the corresponding period in 2020, attributed to one-off compensation for dismissed staff[34]. - Finance costs decreased by approximately HK$0.3 million or 3.6% due to a reduction in the average bank borrowings rate[35]. Assets and Liabilities - As of June 30, 2021, the Group had net current assets of approximately HK$343.0 million, down from HK$392.2 million as of December 31, 2020[47]. - Bank borrowings amounted to approximately HK$294.7 million as of June 30, 2021, a decrease from HK$411.2 million as of December 31, 2020[47]. - Current liabilities decreased to HK$726,013,000 from HK$747,490,000, a decline of 2.3%[99]. - Non-current assets totaled HK$2,376,640,000, down from HK$2,449,145,000, a decrease of 2.9%[98]. - As of June 30, 2021, total equity decreased to HK$2,649,972, down from HK$2,769,827 as of December 31, 2020, representing a decline of approximately 4.3%[102]. Cash Flow - Net cash from operating activities for the six months ended June 30, 2021, was HK$176,709, an increase of 30.4% compared to HK$135,522 for the same period in 2020[180]. - The net increase in cash and cash equivalents for the period was HK$96,550,000, a decrease from HK$534,406,000 in the previous year[183]. - Cash and cash equivalents at the end of the period stood at HK$405,528,000, down from HK$726,189,000 at the end of June 2020[183]. Corporate Governance and Compliance - The Company has complied in general with the Corporate Governance Code during the Period under Review[74]. - The audit committee has reviewed the accounting principles and practices adopted by the Group and discussed internal control, risk management, and financial reporting matters[79]. - The Company has complied with the corporate governance code during the review period, except for specific provisions due to the absence of a director at the annual general meeting[76]. Future Outlook - The Group plans to continue expanding into other packaging markets and improve financial performance through cost reduction and efficiency enhancement measures[24]. - The principal activities of the company include research and development on printing technology, highlighting a commitment to innovation[188].

Financial Performance - The Group's total revenue decreased by 10.5% from approximately HK$1,495.8 million in 2019 to approximately HK$1,339.4 million in 2020[15]. - Profit attributable to owners of the Company dropped by 94.9% from approximately HK$175.9 million in 2019 to approximately HK$8.9 million in 2020, primarily due to the recognition of goodwill impairment of HK$176.0 million[21]. - The gross profit margin in 2020 slightly decreased by 3.4% to 19.8% compared to the previous year[15]. - Other income increased by 40.3% from approximately HK$33.4 million in 2019 to approximately HK$47.0 million in 2020, driven by increased government grants and interest income[36]. - Other losses increased by 622.9% from approximately HK$24.0 million in 2019 to approximately HK$173.8 million in 2020, mainly due to an increase in impairment losses on goodwill[39]. - Selling and distribution expenses decreased by 27.7% from approximately HK$57.0 million in 2019 to approximately HK$41.2 million in 2020, primarily due to reduced marketing expenses[39]. - Administrative expenses increased slightly by 1.8% from approximately HK$86.6 million in 2019 to approximately HK$88.1 million in 2020[39]. - The effective tax rate increased from 24.0% in 2019 to 80.5% in 2020, primarily due to the recognition of impairment losses on goodwill[42]. - The Group's financial performance and business outlook are detailed in the management discussion and analysis section of the annual report[67]. Operational Challenges - The Group faced operational pressures due to stringent domestic environmental protection policies, rising raw material prices, and intensified competition characterized by price wars[14]. - The Group's efforts to reduce costs and increase efficiency were necessary due to lower sales volumes resulting from falling tender prices[15]. - The tobacco industry's supply-side reform and restructuring efforts have added to the competitive challenges faced by the Group[14]. - The Group's management remains focused on navigating the challenges posed by the industry's fierce competition and rising costs[14]. Strategic Initiatives - The Group implemented measures to strengthen production cost control, improve production efficiency, enhance inventory management, and control capital costs to cope with the competitive environment[14]. - The Group aims to reduce the pressure of declining gross profit through cost reduction and efficiency enhancement measures[23]. - The Group plans to increase its development in the tobacco industry and actively expand into other packaging markets in 2021[23]. Shareholder Returns - The Board recommended a final dividend of HK10 cents per share for the year ended December 31, 2020, down from HK19.13 cents in 2019[22]. - The proposed final dividend is subject to shareholder approval at the upcoming Annual General Meeting (AGM)[69][71]. - As of December 31, 2020, the Company's reserves available for distribution amounted to approximately HK$2,224.9 million[75][76]. Financial Ratios - Current ratio decreased from 1.8 times in 2019 to 1.5 times in 2020[45]. - Quick ratio decreased from 1.6 times in 2019 to 1.4 times in 2020[45]. - Return on equity dropped from 6.2% in 2019 to 0.3% in 2020[45]. - Return on total assets decreased from 4.6% in 2019 to 0.2% in 2020[45]. Corporate Governance - The Board currently comprises three independent non-executive Directors, representing more than one-third of the Board[84]. - The Company has adopted the Corporate Governance Code and generally complied with it for the year ended December 31, 2020[129]. - The independent non-executive directors confirmed their compliance with independence criteria as set out in the Listing Rules[132]. - The company adheres to corporate governance best practices, ensuring transparency and accountability in its operations[136]. Director and Management Information - The roles of the Chairman and the Chief Executive Officer are separate, with Mr. Chen Xiao Liang serving as Chairman and Mr. Qin Song as Chief Executive Officer during the year[154]. - The Audit Committee held three meetings during the year ended December 31, 2020, to review financial results, reporting, compliance procedures, and internal control systems[154]. - The Remuneration Committee consists of five members, including three independent non-executive Directors, and is responsible for recommending remuneration policies for executive Directors and senior management[155]. - Each executive director has a service contract for a specific term of two or three years, subject to retirement by rotation and re-election[139]. Compliance and Regulations - The Group complied with all relevant rules, laws, and regulations in the PRC that significantly impact its operations during the year[66]. - The Company has provisions for indemnifying Directors against actions incurred in the execution of their duties, which were in force during the financial year[96]. - The Company has maintained compliance with all relevant regulations in China, which is crucial for its operations in the tightly regulated cigarette industry[67].