Financial Performance - The company's revenue increased by 44% to HKD 2,496,000,000 in 2022, compared to HKD 1,738,000,000 in 2021[8] - Net profit after tax rose by 101% to HKD 285,800,000 in 2022, up from HKD 142,000,000 in 2021[8] - Revenue for the fiscal year ended December 31, 2022, was approximately HKD 2,496,100,000, representing a growth of 43.7% compared to HKD 1,737,600,000 in the previous year[38] - The company's profit attributable to shareholders for the year ended December 31, 2022, was HKD 219.9 million, an increase of 66.0% compared to HKD 132.5 million in 2021[40] - Gross profit margin increased from 25.7% in 2021 to 33.3% in 2022, providing higher gross profit contributions to the group[38] Dividends - The company plans to distribute a final dividend of HKD 0.07 per share and a special dividend of HKD 0.03 per share, totaling HKD 0.13 per share for the year[5] - The company declared an interim dividend of HKD 0.03 per share, totaling HKD 23,100,000, and proposed a final dividend of HKD 0.07 per share, an increase from HKD 0.06 in the previous year[114] - As of December 31, 2022, the company's distributable reserves amounted to approximately HKD 399,000,000[114] Operational Changes - The company faced extreme demand fluctuations and supply chain disruptions during 2022, impacting printing service demand[8] - The company is closing its printing operations in Singapore and relocating production facilities to Malaysia to reduce costs[8] - The company continues to invest in enhancing its capabilities and diversifying paper supply sources to provide quality services in the Australia-New Zealand region[28] - The company plans to enhance its operational efficiency and inventory management through the adoption of digital printing technology[110] Market Position and Strategy - The acquisition of Griffin Press has positioned the company as the largest book printing group in Australia, enhancing its market presence[28] - The company is committed to providing sustainable returns to shareholders and enhancing operational efficiency through strategic measures[5][8] - The company anticipates a challenging year in 2023, with a slight decrease of 3% in sales revenue but an improvement in profit margins[33] - The company plans to pursue acquisition opportunities to enhance its market coverage and influence[36] Challenges and Risks - The sales revenue of the subsidiary, Griffin Press, decreased by 11% due to a weak global book market and localization trends[8] - The company anticipates that the demand for books and printing services will remain weak in the first half of 2023 due to limited consumer discretionary spending[36] - Long-term projections indicate that Chinese printers may gradually lose their competitive edge due to rising labor costs and a shrinking workforce[33] - The group's long-term profitability and business growth are affected by macroeconomic fluctuations and uncertainties, particularly in regions such as Hong Kong, Mainland China, Australia, the United States, the United Kingdom, the Eurozone, and South America[84] Corporate Governance - The company has adopted key corporate governance practices, as reported in the annual report[126] - The board consists of nine members, including three executive directors, two non-executive directors, and four independent non-executive directors[131] - The board has established a robust risk management and internal control system, with independent qualified accountants conducting annual reviews[134] - The company has adopted a diversity policy for its board members, currently including two female directors[130] Employee and Management - As of December 31, 2022, the company employed approximately 1,683 full-time employees, an increase from 1,303 in 2021, reflecting a growth of about 29%[151] - The company has a competitive salary structure and rewards employees based on overall performance, including benefits such as provident fund, insurance, and medical coverage[151] - The remuneration committee held one meeting in 2022 to review the compensation structure for senior management, aligning it with company performance and industry benchmarks[161] Financial Position - As of December 31, 2022, the company's net current assets were approximately HKD 869.3 million, with cash and bank balances of about HKD 770.2 million, compared to HKD 431.9 million in 2021[40] - The company's current ratio was approximately 1.9 as of December 31, 2022, slightly down from 2.0 in 2021[40] - Total bank borrowings and lease liabilities amounted to approximately HKD 552.0 million, up from HKD 335.7 million in 2021[40] - The company's debt-to-equity ratio was 33.4% as of December 31, 2022, compared to 24.9% in 2021[40] Audit and Compliance - The independent auditor has audited the consolidated financial statements for the year ending December 31, 2022[174] - The audit committee held three meetings in 2022 to review the group's annual report and financial statements, providing recommendations to the board[186] - The impairment assessment of goodwill and non-financial assets is identified as a key audit matter due to its potential significance to the consolidated financial statements[178]

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，概不對因本公佈全部或任何部份內容而產生或因倚賴該等內容而引致之任何損 失承擔任何責任。 LION ROCK GROUP LIMITED 獅子山集團有限公司* （於百慕達註冊成立之有限公司） (股份代號：1127) 截至二零二二年十二月三十一日止年度之 業績公佈 經審核業績 獅子山集團有限公司（「本公司」）之董事會（「董事會」）謹此提呈本公司及其附屬公司（統稱為「本 集團」）截至二零二二年十二月三十一日止年度之經審核綜合業績，連同截至二零二一年十二月三 十一日止年度之比較數字如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 附註 二零二二年 二零二一年 千港元 千港元 收益 3 2,496,089 1,737,616 直接經營成本 (1,664,664) (1,290,531) 毛利 831,425 447,085 ...

Financial Performance - The group's revenue for the first half of 2022 increased by 40% to HKD 1,087 million, compared to HKD 777 million in the first half of 2021[3]. - The group's profit before tax rose to HKD 187 million, up from HKD 62 million in the same period last year[3]. - Net profit increased to HKD 157 million, compared to HKD 47 million in the first half of 2021[3]. - Revenue for the six months ended June 30, 2022, increased by 39.9% to approximately $61.9 million compared to $56.9 million in the same period of 2021[6]. - Operating profit reached $7.2 million, up from $4.0 million in the first half of 2021, driven by strong demand from US and UK customers[6]. - Gross margin improved from 25.2% in the previous year to 33.3% for the six months ended June 30, 2022, due to increased revenue and reduced fixed production cost ratios[6]. - The company's net profit attributable to shareholders for the six months ended June 30, 2022, was approximately HKD 140.3 million, more than tripling from HKD 41.3 million in the same period last year[8]. - The company reported a profit before tax of HKD 187,044,000 for the six months ended June 30, 2022, compared to HKD 61,665,000 in the same period of 2021, representing a significant increase of 202%[18]. - The company’s total equity increased to HKD 1,604,086,000 as of June 30, 2022, compared to HKD 1,350,388,000 in the previous year, indicating strong financial health[24]. Revenue Growth - The group's revenue from the Australian manufacturing segment grew by 6%, driven by the acquisition of Griffin Press and natural growth from McPherson Printing[3]. - APOL Group's sales revenue increased by 15% in the first six months, primarily driven by demand from publishers in the US and UK[3]. - The group's sales revenue in the Hong Kong market grew by 9%, supported by a recovery in the education sector[3]. - Revenue from the United States market reached HKD 589,427,000, up from HKD 348,396,000 in the prior year, representing a growth of about 69.2%[39]. - The Australian market also showed growth, with revenue increasing to HKD 263,275,000 from HKD 241,857,000, a rise of approximately 8.8%[39]. - Revenue from the printing segment was HKD 879,599,000, while the publishing segment contributed HKD 262,798,000, indicating strong performance across both divisions[36]. Cost and Expenses - Administrative expenses increased to approximately HKD 74.7 million from HKD 54.5 million in the previous year, largely due to the inclusion of Quarto's administrative costs[6]. - Sales and distribution expenses increased by approximately HKD 53.8 million, with the ratio of these expenses to sales rising from 12.9% in 2021 to 14.2% in 2022[6]. - Employee benefits expenses rose significantly to HKD 223,977,000 from HKD 167,015,000, marking an increase of approximately 34%[42]. - The total income tax expense for the period was HKD 29,898,000, up from HKD 14,171,000, which is an increase of approximately 111%[43]. Strategic Initiatives - The company is diversifying its business strategy in response to rising costs in China, including labor, paper, and transportation[3]. - The company is exploring innovative methods and strategic partnerships to mitigate supply chain risks and ensure printing capabilities outside of China[6]. - The merger of COS and Papercraft is expected to continue recording losses during the transition phase[3]. - The company anticipates weak demand for printing services in the second half of the year due to inflation impacting consumer spending[6]. Acquisitions and Investments - The company acquired subsidiaries and businesses, resulting in goodwill of HKD 325,734,000 as of June 30, 2022, reflecting strategic expansion efforts[48]. - The company acquired an additional 4.6% stake in Quarto for HKD 23,130,000, raising its ownership to 49.2%[51]. - The identifiable assets and liabilities of Quarto at the acquisition date had a total fair value of HKD 273,544,000, with goodwill amounting to HKD 137,387,000[66]. - The acquisition of the book printing business was completed on June 17, 2022, with an initial consideration of HKD 47,175,000[71]. Market Challenges - The number of books sold to US consumers decreased by 7% year-on-year, indicating potential challenges in consumer spending due to high inflation[4]. - The company has not adopted any new or revised Hong Kong Financial Reporting Standards that would have a significant impact on its financial performance for the current period[33]. - The company continues to evaluate the impact of new accounting standards but has not determined any significant financial effects on its operations[33]. Shareholder Information - The board proposed an interim dividend of HKD 0.03 per ordinary share for the six months ended June 30, 2022, consistent with the previous year[109]. - The company has 27,796,000 outstanding reward shares under the Star Printing Share Reward Plan as of June 30, 2022[102]. - There are 70,000,000 stock options available for issuance under the Star Printing Stock Option Plan, equivalent to approximately 9.1% of the company's issued shares as of June 30, 2022[103]. - The total equity held by major shareholder Qingtian Group Limited is 266,432,717 shares, which is 34.60% of the company's issued share capital[99].

Financial Performance - The group's revenue increased by 27% to HKD 1,737,600,000 in the fiscal year 2021, compared to HKD 1,373,500,000 in 2020[9] - Net profit after tax grew by 22% to HKD 142,000,000, up from HKD 116,300,000 in the previous year[9] - Quarto Group's revenue reached $151,500,000, up from $126,900,000 in the previous year, representing a growth of approximately 19.5%[11] - Gross profit for the same period was HKD 447,085, representing a 32.4% increase compared to HKD 337,961 in 2020[134] - Net profit for the year was HKD 142,025, up 22.1% from HKD 116,305 in the previous year[134] - Basic earnings per share increased to HKD 17.89 from HKD 13.59, reflecting a growth of 31.5%[134] Market and Sales Growth - The Australian book market experienced a strong year, with sales growing by 17% year-on-year, despite temporary disruptions due to COVID-19 restrictions[9] - The printing manufacturing segment saw a sales increase of 32%, achieving a historical high driven by strong demand from US and UK clients[9] - The APOL group reported a 24% year-on-year sales growth, attributed to strong performances in the US, Europe, and Australia[9] Supply Chain and Operations - The company emphasized enhancing supply chain capabilities across its three business segments as a key priority[7] - The company aims to leverage its regional diversification strategy to flexibly serve customers and mitigate potential supply chain disruptions[4] - The company is undergoing infrastructure upgrades in its COS segment, with production facilities being relocated from Singapore to Malaysia, which is expected to continue incurring losses during the transition period[9] Financial Position and Assets - As of December 31, 2021, the group's net current assets were approximately HKD 595.1 million, down from HKD 617.7 million in 2020, with cash and cash equivalents at HKD 431.9 million compared to HKD 502.3 million in 2020[15] - The group's current ratio was approximately 2.0, a decrease from 2.2 in 2020[15] - Total bank borrowings and lease liabilities amounted to approximately HKD 335.7 million, an increase from HKD 290.3 million in 2020[15] - The capital debt ratio as of December 31, 2021, was 24.9%, up from 22.7% in 2020[15] - Total assets as of December 31, 2021, amounted to HKD 1,405,774, an increase from HKD 1,364,143 in 2020[137] Expenses and Costs - Administrative expenses rose from approximately HKD 98,500,000 to about HKD 109,200,000, with employee costs increasing by around HKD 16,100,000[13] - Sales and distribution expenses increased from approximately HKD 170,700,000 to about HKD 209,100,000, while the ratio of these expenses to sales decreased from 12.4% to 12.0%[13] - The shipping cost for transporting a 40-foot container from China to the US West Coast increased from $5,000 in 2020 to $18,000 in 2021, raising the cost per book by about $0.7[11] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.03 per share, totaling HKD 23,100,000, compared to no interim dividend in the previous year[56] - The proposed final dividend for the year is HKD 0.06 per share, an increase from HKD 0.05 per share in the previous year[56] - As of December 31, 2021, the company's distributable reserves amounted to approximately HKD 378,000,000[56] Risk Management and Compliance - The company is committed to sustainable operations, focusing on environmental policies and practices[54] - The company faces risks from macroeconomic conditions and the shift towards digital media, which may impact demand for printed materials[54] - The company is subject to various legal regulations in the countries where it operates, ensuring compliance with applicable laws[54] Corporate Governance - The board of directors includes members with substantial shareholdings, with Mr. Liu holding 345,134,623 shares, representing 44.82% of the issued share capital[60] - The company has adopted corporate governance practices in compliance with the Hong Kong Stock Exchange listing rules[79] - The independent non-executive directors have confirmed their independence in accordance with the listing rules[79] - The board is responsible for overseeing the preparation of the financial statements for the year ending December 31, 2021[85] Audit and Financial Reporting - The Audit Committee is responsible for overseeing the relationship with external auditors and reviewing financial reports and internal controls[98] - The total fees for audit services provided by the auditors amounted to HKD 1,709,000, including HKD 1,300,000 for financial report audits[100] - The financial statements have been prepared in accordance with the Hong Kong Financial Reporting Standards and the disclosure requirements of the Hong Kong Companies Ordinance[116] Future Outlook - The company plans to expand its market presence and invest in new product development to drive future growth[143] - Future guidance indicates a cautious but optimistic outlook, with expected revenue growth in the upcoming fiscal year[143]

Revenue and Profit Growth - The group's revenue increased by 22% to HKD 777 million for the first half of 2021, compared to HKD 639 million in the same period of 2020[3]. - The group's profit before tax rose to HKD 62 million, up from HKD 44 million in the first half of 2020[3]. - The operating profit for Quarto Group increased by 21% to USD 56.9 million, compared to USD 46.9 million in the first half of 2020[6]. - APOL Group's sales revenue grew by 10%, driven mainly by the recovery of demand in Europe and the US[6]. - The company experienced a 41% revenue growth in its Australian manufacturing segment due to the economic recovery[6]. - Revenue for the six months ended June 30, 2021, increased by 22% to approximately HKD 776.6 million, compared to HKD 638.8 million for the same period in 2020[10]. - Profit attributable to owners for the six months was approximately HKD 41.3 million, representing a 41% increase from HKD 29.3 million in the prior year[19]. - Profit before tax for the same period was HKD 61,665,000, up from HKD 43,784,000 in 2020, representing a growth of 40.8%[42]. - The company reported a profit attributable to shareholders of HKD 41,297,000, compared to HKD 29,311,000 in the previous year, marking an increase of 40.9%[50]. Costs and Expenses - The transportation cost for shipping books from China to the US West Coast increased from less than USD 5,000 in 2020 to USD 18,000 in 2021, representing a three to fourfold increase[3]. - The company's operating expenses increased by HKD 4.1 million to approximately HKD 54.5 million, driven by a rise in employee costs[10]. - The financial expenses decreased significantly to HKD 4,461,000 from HKD 7,366,000, a reduction of 39.5%[42]. - The depreciation expense for property, plant, and equipment was HKD 21,732,000, compared to HKD 20,259,000 in the previous year, indicating a rise of 7.3%[46]. Assets and Liabilities - The total bank borrowings and lease liabilities amounted to approximately HKD 315.8 million as of June 30, 2021, up from HKD 290.3 million at the end of 2020[12]. - Total liabilities increased to HKD 540,221 from HKD 501,970, indicating a rise of about 7.6%[21]. - The company's current assets net value was approximately HKD 549.4 million, down from HKD 617.7 million at the end of 2020[12]. - The company's cash and cash equivalents decreased to HKD 412,534 from HKD 502,291, a decline of approximately 17.87%[26]. - The company's total assets as of June 30, 2021, were HKD 1,148,502,000, compared to HKD 1,276,716,000 at the end of the previous year, indicating a decrease of approximately 10%[31]. - The total bank borrowings increased to HKD 229,492,000 as of June 30, 2021, compared to HKD 191,450,000 as of December 31, 2020, marking a rise of 19.9%[61]. Shareholder Information - The company paid dividends amounting to HKD 37,021, an increase from HKD 30,800, representing a growth of approximately 20.5%[29]. - The company declared a proposed final dividend of HKD 30,800,000 for the year ended December 31, 2020, which is a decrease from HKD 38,500,000 in the previous year, representing a reduction of approximately 20%[31]. - The interim dividend declared for the six months ended June 30, 2021, was HKD 23,100,000, compared to no interim dividend in the same period of 2020[67]. - Liu Zhujian holds a total of 322,852,275 shares in Auspicious Group, representing 64.74% of the issued share capital[79]. - The largest shareholder, Qingtian Group Limited, holds 266,432,717 shares, which is 34.60% of the issued share capital[86]. Operational Insights - The integration of operations between COS and Papercraft is expected to enhance the group's position in Southeast Asia's printing market[6]. - The company remains cautiously optimistic about the upcoming year despite ongoing supply chain challenges[6]. - The company plans to continue monitoring its liquidity needs and maintain sufficient cash reserves to meet both short-term and long-term funding requirements[13]. - The company’s net cash flow from operating activities showed improvement, contributing positively to the overall financial health[42]. Employee and Management Information - As of June 30, 2021, the group had approximately 1,317 full-time employees, a decrease from 1,350 employees as of June 30, 2020[95]. - The short-term employee benefits for key management personnel increased to HKD 4,753,000 from HKD 3,013,000, reflecting a rise of 57.7%[72].

Financial Performance - The group's revenue for the year decreased by 15% to HKD 1,373,000,000, compared to HKD 1,607,000,000 in the previous year[14] - Profit attributable to the company's owners fell by 25% to HKD 104,000,000, down from HKD 139,000,000 in the previous year[14] - The printing manufacturing segment's sales revenue declined by 6% year-on-year due to lockdown measures in China[16] - The Australian printing group's sales revenue decreased by 19%, primarily due to the loss of a long-term contract with a major publisher[20] - The sales revenue for COS in Singapore grew by 2%, despite challenges from regional lockdowns affecting academic journal printing[21] - APOL's sales revenue dropped by 18%, but net profit after tax increased by 20 due to strict cost control[22] - Quarto's revenue for the first quarter decreased to $126.9 million, down from $135.8 million in 2019, due to local lockdown measures in the US and UK[24] - The company's after-tax profit increased to $4.6 million, compared to $2.9 million in 2019, as a result of cost-cutting measures including interest expenses[24] - The gross profit margin declined from 28.0% to 24.6% due to reduced sales and relatively high fixed production costs[31] - Other income increased by approximately HK$47.6 million to HK$96.4 million, primarily due to various government subsidies and relief measures[31] - The company's attributable profit decreased by 24.9% to approximately HK$104.3 million, down from HK$138.8 million in 2019[31] Strategic Initiatives - The group is actively seeking acquisition opportunities to enhance its competitive advantage in the printing and publishing industry[9] - Recent acquisition of Papercraft Sdn. Bhd. aims to expand production capacity and improve infrastructure[15] - The company anticipates a return to growth as the global book market rebounds in the second half of the year[14] - The ongoing trend of offshoring is expected to reverse, with rising costs in China prompting a shift back to Europe and the US for printing services[15] - The group plans to expand its regional scale, with a significant initiative to develop Papercraft in Malaysia, aiming to increase its capacity to 35% of its flagship factory in China by mid-2022[27] - The company is focusing on vertical diversification in the publishing business as a new growth engine, with a streamlined operation at Quarto[28] - Investments in information technology and digital capabilities are expected to enhance productivity and maintain competitiveness in a challenging market[28] Financial Position - As of December 31, 2020, the group's net current assets amounted to approximately HKD 617.7 million, a decrease from HKD 713.7 million in 2019[38] - The group's cash and bank balances were approximately HKD 502.3 million as of December 31, 2020, compared to HKD 495.7 million in 2019[38] - The current ratio of the group was approximately 2.2 as of December 31, 2020, down from 2.5 in 2019[38] - The total bank borrowings and lease liabilities amounted to HKD 290.3 million as of December 31, 2020, compared to HKD 312 million in 2019[38] - The group's debt-to-equity ratio was 22.7% as of December 31, 2020, down from 26.5% in 2019[38] - The group made capital expenditures of approximately HKD 19.7 million during the year, primarily funded by internal resources[38] - As of December 31, 2020, the group had pledged deposits of approximately HKD 200,000, a significant decrease from HKD 5.7 million in 2019[38] - The group has no significant contingent liabilities as of December 31, 2020[38] Shareholder Information - The company reported a final dividend of HKD 0.05 per share for the year ending December 31, 2020, compared to HKD 0.04 per share in 2019, reflecting a 25% increase[91] - As of December 31, 2020, the company's distributable reserves amounted to approximately HKD 392 million[91] - The company’s board of directors has not declared any interim dividends during the year, maintaining a focus on long-term growth[91] - The company emphasizes continuous communication with shareholders through various channels, including annual reports and shareholder meetings[162] - The company has established a shareholder communication policy to ensure transparency and engagement with its shareholders[162] Governance and Compliance - The company operates as an investment holding company and provides corporate management services[82] - The board of directors consisted of eight members as of December 31, 2020, including three executive directors, two non-executive directors, and three independent non-executive directors[125] - The company has adopted a board diversity policy to enhance the quality of its performance[125] - The company has purchased appropriate liability insurance for its directors and senior officers to cover responsibilities arising from corporate activities[130] - The board confirmed its responsibility for overseeing the preparation of the financial statements for the year ended December 31, 2020[132] - The company has established a continuous process to identify, assess, and manage significant risks, with management preparing an annual risk assessment report[138] - The independent qualified accountant conducted an annual review to evaluate the effectiveness of the company's risk management and internal control systems, finding no significant deficiencies[138] - The company does not have an internal audit function; instead, it relies on independent qualified accountants for annual reviews[138] - The audit committee held three meetings in 2020 to review the group's annual report, interim report drafts, and internal control reports[156] - The company has a structured approach to governance, ensuring compliance with listing rules and monitoring financial reporting and risk management[156] Audit and Financial Reporting - The independent auditor's report confirms that the consolidated financial statements fairly present the group's financial position as of December 31, 2020[173] - The auditors aim to ensure that the consolidated financial statements are free from material misstatement due to fraud or error, providing reasonable assurance[193] - The audit process involves assessing risks of material misstatement and obtaining sufficient appropriate audit evidence to support the audit opinion[194] - The auditors evaluate the appropriateness of accounting policies and the reasonableness of accounting estimates and disclosures made by the board[198] - The independent auditor's report concludes on the appropriateness of the going concern basis of accounting used by the board[197] - The audit committee assists the board in overseeing the financial reporting process and ensuring compliance with relevant standards[192] - The auditors communicate significant audit findings to the audit committee, including any deficiencies in internal controls identified during the audit[198] Employee Information - As of December 31, 2020, the group employed approximately 1,287 full-time employees, an increase from 1,271 in 2019[120] - The company has a competitive salary structure for its employees, with performance-based rewards[120] - The company plans to continue focusing on overall strategy and policy, particularly on growth and financial performance[129]

Financial Performance - The group's revenue decreased by 24% to HKD 639 million for the first half of 2020, compared to HKD 841 million in the same period of 2019[7]. - The group's profit before tax fell to HKD 44 million, down from HKD 90 million in the first half of 2019, while net profit after tax decreased to HKD 33 million from HKD 73 million[7]. - The Quarto group's revenue decreased by USD 46.9 million, down from USD 56.4 million in the same period of 2019, with an adjusted operating loss of USD 1.8 million[15]. - Revenue for the six months ended June 30, 2020, decreased by 24% to approximately HKD 638.8 million, compared to HKD 841.4 million in the same period of 2019[4]. - The net profit attributable to shareholders for the period was approximately HKD 29.3 million, a decrease of 54% from HKD 64.1 million in the previous year[4]. - The company reported a profit before tax of HKD 43,784 thousand for the six months ended June 30, 2020, down from HKD 90,228 thousand in the same period of 2019, a decrease of approximately 51.5%[32]. - The company reported a total comprehensive income of HKD 14,622,000 for the six months ended June 30, 2020, compared to HKD 29,355,000 for the same period in 2019, representing a decrease of approximately 50%[41]. - Basic earnings per share for the six months ended June 30, 2020, were HKD 29,311,000, down 54% from HKD 64,101,000 in 2019[55]. Revenue Segmentation - The group's sales revenue from the Australian manufacturing segment decreased by 35%, primarily due to the loss of a long-term contract with a major novel publisher[10]. - The sales revenue from the Singapore manufacturing segment increased by 21%, attributed to more inter-company orders shipped to the US[11]. - The APOL group's sales revenue decreased by 20% in the first half of the year, with challenges stemming from local currency weakness and ongoing competition[15]. Cost Management and Financial Strategy - The group is implementing stricter cost controls and expanding into other product categories and markets to adapt to the new normal[15]. - The group is focusing on cash flow management and cost reduction measures to navigate the ongoing challenges posed by the pandemic[8]. - The group plans to enhance manufacturing capabilities in Malaysia, aiming to increase production capacity by 50%[15]. Assets and Liabilities - The company's current assets net value as of June 30, 2020, was approximately HKD 564.4 million, down from HKD 713.7 million as of December 31, 2019[4]. - Total assets decreased from HKD 1,200,931 thousand as of December 31, 2019, to HKD 1,059,563 thousand as of June 30, 2020, representing a decline of approximately 11.7%[28]. - The company's cash and cash equivalents decreased from HKD 495,707 thousand to HKD 364,676 thousand, a reduction of approximately 26.4%[32]. - The total liabilities increased from HKD 487,256 thousand to HKD 495,143 thousand, an increase of approximately 1.8%[28]. - The total equity attributable to owners of the company decreased from HKD 1,081,488 thousand to HKD 1,042,596 thousand, a decrease of approximately 3.6%[30]. Employee and Management Compensation - The company incurred total employee benefits expenses of HKD 135,725,000, a decrease of 14% from HKD 157,779,000 in 2019[51]. - The total compensation for key management personnel decreased to HKD 3,101,000 in the first half of 2020 from HKD 3,349,000 in 2019, representing a decline of about 7.4%[86]. Government Support and Economic Impact - The group received significant financial support from the Australian government's JobKeeper Payment program, alleviating some impacts of the pandemic[10]. - Other income increased by approximately HKD 12.8 million to about HKD 32.6 million, mainly due to government subsidies related to the COVID-19 pandemic[4]. Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2020, compared to HKD 23,100,000 declared in the same period of 2019[75]. - Major shareholders include City Apex Ltd. with 258,135,326 shares, representing 33.52% of the issued share capital[102]. - The total number of shares held by Liu Zhujian, a director, is 331,804,623, which includes personal and corporate interests[93]. Acquisition and Goodwill - The group acquired 100% equity of Papercraft Sdn. Bhd. for HKD 42,800,000, with HKD 25,588,000 paid as of June 30, 2020, and the remaining amount to be paid by February 25, 2022[77]. - The goodwill recognized from the acquisition of Papercraft was HKD 19,074,000, reflecting the value of acquired workforce and expected synergies[79]. - The goodwill balance as of June 30, 2020, is HKD 190,613,000, an increase from HKD 174,372,000 on January 1, 2020, primarily due to the acquisition of a subsidiary[83].

Financial Performance - The group's sales revenue for 2019 decreased by 3.5% to HKD 1,607,000,000, while the net profit after tax fell by 16.5% to HKD 153,800,000 due to rising financing and tax costs[15]. - The company's revenue for the year ended December 31, 2019, was approximately HKD 1,607,000,000, a decrease of 3.5% compared to HKD 1,665,400,000 in 2018[28]. - Total revenue for the year ended December 31, 2019, was HKD 1,606,969,000, a decrease of 3.5% from HKD 1,665,369,000 in 2018[176]. - Gross profit for 2019 was HKD 449,687,000, down 4.9% from HKD 473,085,000 in the previous year[176]. - Net profit for the year was HKD 153,801,000, a decline of 16.5% compared to HKD 184,244,000 in 2018[176]. - Basic earnings per share for the year was HKD 0.1803, down from HKD 0.2200 in 2018[176]. - The company reported a total comprehensive income of HKD 138,557,000 for 2019, an increase of 25.8% from HKD 110,165,000 in 2018[176]. - The company’s non-current assets increased to HKD 557,554,000 in 2019 from HKD 510,870,000 in 2018, representing a growth of 9.1%[178]. - The company’s total liabilities decreased to HKD 1,081,488,000, down from HKD 1,162,068,000, indicating a reduction in financial obligations[185]. Operational Developments - The acquisition of Papercraft Sdn. Bhd. in February 2020 enhances the group's printing capabilities in Southeast Asia, positioning it uniquely among major book printers in China[16]. - The group's printing services management segment, APOL, faced a 16% decline in revenue due to uncertainties related to tariffs on imports from China[21]. - The group's operational upgrades over the past two years have made its Chinese facilities among the most efficient in the region for book printing[16]. - The company plans to enhance the capacity of its Malaysian plant, targeting a production increase of 50% compared to its flagship plant in China over the next three years[26]. - The company has invested in technology tools and systems to expand supply chain orchestration capabilities for Quarto[26]. Market Conditions and Challenges - The group anticipates a challenging industry environment in 2020, with potential economic downturns exacerbated by the coronavirus outbreak[11]. - The group's long-term profitability and business growth are affected by macroeconomic fluctuations and uncertainties in various regions, including Hong Kong, mainland China, Australia, the US, Eurozone, and South America[78]. - The rise of digital information is impacting the demand for printed materials, as consumers shift towards electronic media and platforms[79]. Sustainability and Corporate Responsibility - The group is committed to sustainable operations, balancing the interests of stakeholders, including customers, suppliers, and employees[82]. - The group aims to enhance its environmental performance as part of its corporate social responsibility, focusing on resource utilization and compliance with environmental laws[83]. - The management team highlighted the importance of sustainability initiatives, with plans to invest $J million in eco-friendly practices[43]. Shareholder Information - The company declared an interim dividend of HKD 0.03 per share, totaling HKD 23,100,000, consistent with the previous year[1]. - The proposed final dividend is HKD 0.04 per share, down from HKD 0.07 per share in the previous year[1]. - The company proposed a final dividend of HKD 50,050,000 for 2019, consistent with the previous year's proposal, indicating a commitment to shareholder returns[180]. Governance and Management - The board of directors expressed confidence in achieving long-term growth targets, emphasizing a commitment to shareholder value[43]. - The board is responsible for overseeing the preparation of the financial statements for the year ended December 31, 2019[124]. - The company has adopted a diversity policy for its board members to enhance performance quality[119]. - The company has established a continuous process to identify, assess, and manage significant risks, with management preparing an annual risk assessment report[128]. Financial Position and Assets - The company's net current assets as of December 31, 2019, were approximately HKD 713,700,000, with cash and bank balances around HKD 495,700,000[31]. - The total assets as of December 31, 2019, amounted to HKD 1,758,485,000, a decrease from HKD 1,739,446,000 in 2018[178]. - The carrying amount of trade receivables as of December 31, 2019, was HKD 421,309,000, representing 35% of the group's current assets[160]. - The company identified significant uncertainties regarding its ability to continue as a going concern, which may impact future operations[172]. Cash Flow and Investments - Operating cash flow increased significantly to HKD 285,162,000, compared to HKD 58,660,000 in the previous year, marking a substantial improvement[188]. - The company’s cash flow from operating activities showed a significant change, with a net cash inflow of HKD 8,430,000 in 2019 compared to HKD 4,242,000 in 2018[191]. - Net cash outflow from investment activities decreased to HKD 68,157,000 in 2019 from HKD 160,990,000 in 2018, a reduction of 57.6%[191].

Financial Performance - The group's revenue for the first half of 2019 increased by 5% to approximately HKD 841,000,000 compared to the previous year[5]. - The group's profit attributable to shareholders decreased by 4% to HKD 64,000,000, primarily due to increased tax costs[5]. - APOL's sales revenue grew by 20% year-on-year, driven by the completion of a significant project delivering 30 million printed copies[5]. - COS's sales revenue increased by 24%, with a profit before tax increase of 22% due to strict cost control[5]. - Revenue for the six months ended June 30, 2019, was approximately HKD 841,434,000, an increase of 5.1% compared to HKD 800,861,000 for the same period in 2018[16]. - Gross profit for the same period was approximately HKD 235,373,000, up from HKD 218,990,000, reflecting a gross margin improvement[16]. - The net profit attributable to the company's owners for the six months ended June 30, 2019, was approximately HKD 64,101,000, a decrease of 4% from HKD 66,953,000 in 2018[16]. - The reported segment profit for the group was HKD 102,611,000, up from HKD 92,651,000 in the previous year, reflecting a growth of 10.5%[66]. Costs and Expenses - Other income decreased by approximately HKD 10,000,000 to about HKD 19,800,000, mainly due to a one-off income recognized in the previous year[10]. - Administrative expenses decreased from approximately HKD 57,228,000 in 2018 to HKD 50,142,000 in 2019, a reduction of about 12.4%[16]. - Financing costs increased significantly from approximately HKD 1,432,000 in 2018 to HKD 7,830,000 in 2019, primarily due to increased bank loan interest expenses[16]. - The total tax expense for the period was HKD 16,939,000, an increase from HKD 12,865,000 in the previous year[73]. Assets and Liabilities - The group’s current assets net value was approximately HKD 634,100,000 as of June 30, 2019, down from HKD 677,300,000 at the end of 2018[16]. - As of June 30, 2019, total assets amounted to HKD 1,210,865 thousand, a decrease of 1.4% from HKD 1,228,576 thousand as of December 31, 2018[20]. - The company’s total liabilities decreased to HKD 1,131,836,000 as of June 30, 2019, down from HKD 1,162,068,000 at the end of 2018[30]. - The company’s retained earnings as of June 30, 2019, were HKD 693,699,000, indicating a slight increase from the previous period[30]. Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2019, was HKD 111,003 thousand, a significant improvement compared to a cash outflow of HKD 8,438 thousand in 2018[22]. - The net cash used in investing activities was HKD 43,006 thousand, a decrease from HKD 69,936 thousand in the prior year[25]. - The company incurred capital expenditures of HKD 51,365 thousand for property, plant, and equipment, compared to HKD 8,453 thousand in the previous year[25]. Shareholder Information - As of June 30, 2019, Mr. Liu Zhu Jian holds a total of 331,804,623 shares, representing 43.09% of the company's issued share capital[108]. - The major shareholder, Qingtian Group Limited, holds 266,432,717 shares, representing 34.60% of the company's issued share capital[117]. - The interim dividend declared was HKD 0.030 per share, totaling HKD 23,100,000, consistent with the previous year's interim dividend[93]. Regulatory and Accounting Changes - The adoption of Hong Kong Financial Reporting Standard 16 (HKFRS 16) resulted in an increase of HKD 82,461,000 in right-of-use assets[44]. - The total liabilities increased by HKD 91,914,000, primarily due to the recognition of lease liabilities[44]. - The group has applied the cumulative effect method for the initial application of HKFRS 16, adjusting the opening balance of retained earnings as of January 1, 2019[61]. Market Outlook and Strategic Initiatives - The company anticipates a 30% reduction in the overall industry output value within five years due to adverse macro trends affecting the printing industry in China[5]. - Management is considering establishing alternative printing bases outside of China to mitigate the impact of tariffs and rising costs[10]. - The company is expanding production capacity in Singapore as a strategic response to potential trade disruptions[10]. - The company continues to focus on expanding its printing services and exploring new market opportunities to enhance revenue growth[34].

Financial Performance - The company reported a 5% increase in sales and a 16% growth in net profit after tax for the year 2018[9]. - The revenue for the year ended December 31, 2018, was approximately HKD 1,665,400,000, an increase of 5% compared to HKD 1,582,700,000 in 2017[17]. - The net profit attributable to the owners of the company for the year was approximately HKD 169,400,000, representing a 15% increase from HKD 147,700,000 in 2017[17]. - The gross profit margin remained stable at 28%, with depreciation expenses decreasing due to certain machinery being fully depreciated[17]. - The company reported a significant increase in overall management efficiency, with a focus on strategic planning and management in the printing industry[37]. - The company reported a total reserve available for distribution to shareholders of approximately HKD 369 million as of December 31, 2018[52]. - The company reported a significant increase in revenue, achieving a total of $X million, representing a Y% growth compared to the previous year[27]. - The company reported a total comprehensive income for the year of HKD 110,165,000, down from HKD 201,281,000 in 2017, showing a decrease of 45.36%[144]. - The company reported a profit before tax of HKD 214,216,000, an increase from HKD 198,520,000 in the previous year[161]. Subsidiary Performance - APOL Group, the international sales operation, achieved a 23% increase in sales, although profit margins slightly declined due to intense competition[11]. - COS, the Singapore manufacturing subsidiary, realized a 26% sales growth and maintained a double-digit net profit margin[11]. - The company’s subsidiary, OPUS Group, successfully listed on the Hong Kong Stock Exchange in 2018, enhancing capital market activities[12]. - The company’s subsidiary, Regal, recorded a 28% increase in net profit after tax during its first full year of operations under the group[11]. Strategic Initiatives - The company plans to significantly expand COS's printing capacity to provide flexibility in production locations[9]. - The company is investing HKD 60 million in facility upgrades to improve operational efficiency in its Chinese manufacturing plant[11]. - The company is actively pursuing a deleveraging strategy and has extended its loans to August 2020[15]. - The company aims to leverage its strong financial position to seize future acquisition opportunities[15]. - The company is focused on enhancing its supply chain management to improve overall operational efficiency and reduce costs[41]. - The company is exploring partnerships to enhance distribution channels, targeting a J% increase in market penetration[27]. Market Outlook - The company is optimistic about its business outlook for 2019, supported by a diversified portfolio in printing manufacturing and services[9]. - The company experienced a 10% growth in orders in the first two months of 2019 compared to the same period in 2018[15]. - The company anticipates that the demand for printed materials will be affected by the increasing shift towards digital media and platforms[47]. - The company is exploring new market opportunities to drive growth, particularly in the Asia-Pacific region[41]. Governance and Compliance - The board of directors consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[78]. - The company has adopted corporate governance practices in line with the Hong Kong Stock Exchange's requirements, ensuring compliance and transparency[75]. - The board confirmed their responsibility for overseeing the preparation of the financial statements for the year ended December 31, 2018[83]. - The company encourages shareholder participation in annual general meetings and has mechanisms for addressing shareholder inquiries[110]. Financial Position - The company's current assets net value as of December 31, 2018, was approximately HKD 677,300,000, with cash and bank balances around HKD 508,300,000[20]. - The bank borrowings and finance lease liabilities totaled HKD 288,600,000 as of December 31, 2018, compared to HKD 70,900,000 in 2017[20]. - The capital debt ratio was 24.8% as of December 31, 2018, up from 6.8% in 2017, calculated based on total interest-bearing debt over total equity[20]. - The total liabilities increased to HKD 551,325,000 in 2018 from HKD 351,116,000 in 2017, reflecting a growth of 57.1%[150]. - The company’s equity attributable to owners increased to HKD 1,044,438,000 in 2018 from HKD 986,789,000 in 2017, a growth of 5.8%[153]. Risk Management - Financial risks are detailed in the consolidated financial statements, indicating potential impacts from macroeconomic and political conditions[47]. - The group has established a continuous process to identify, assess, and manage significant risks, with management responsible for reporting risk assessment results to the board[87]. - The independent qualified accountant conducted an annual review to assess the effectiveness of the group's risk management and internal control systems[87]. Shareholder Information - The interim dividend declared was HKD 0.03 per share, totaling HKD 23.1 million, consistent with the previous year[50]. - The board of directors has proposed a final dividend of HKD 0.07 per share, subject to approval at the upcoming annual general meeting[50]. - The company paid dividends of HKD 73,150,000 to shareholders, up from HKD 69,300,000 in the previous year[165]. Technology and Innovation - The company is investing in R&D for new technologies, allocating $F million towards innovation initiatives[27]. - The company is focusing on the development of digital printing technology, which is expected to revolutionize the industry by reducing operational time and improving inventory replenishment capabilities[47]. - The company is actively developing new technologies and products to enhance its service offerings, with a focus on innovation in the printing industry[41].