Core Viewpoint - Lion Rock Group (01127.HK) announced that its Executive Director and Chief Financial Officer, Ms. Lin Meilan, intends to retire at the end of the year [1] Group 1 - The board welcomes Mr. Wang Shiyang, a member of the Chartered Professional Accountants of Canada and former Financial Director of Citybus Limited, to take over as Chief Operating Officer and Chief Financial Officer effective August 1, 2025 [1] - Ms. Lin and Mr. Wang will work together to ensure a smooth transition [1]

智通财经APP讯，狮子山集团(01127)发布公告，狮子山集团有限公司执行董事兼首席财务官林美兰女士 已通知公司董事会，表示其有意于年末退任。 董事会欢迎加拿大特许会计师公会会员及城巴有限公司前任财务董事王世扬先生担任首席营运官及首席 财务官，自2025年8月1日起生效。 ...

狮子山集团(01127)发布公告，狮子山集团有限公司执行董事兼首席财务官林美兰女士已通知公司董事 会，表示其有意于年末退任。 董事会欢迎加拿大特许会计师公会会员及城巴有限公司前任财务董事王世扬先生担任首席营运官及首席 财务官，自2025年8月1日起生效。 ...

LION ROCK GROUP LIMITED 獅子山集團有限公司* 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。 獅子山集團有限公司（「本公司」）執行董事兼首席財務官林美蘭女士已通知本公司董事會 （「董事會」），表示其有意於年末退任。 自二零一五年加入本公司以來，林女士一直協助本公司連同其附屬公司（「本集團」）由一間 中國為基地的印刷企業轉型為一間銷售額27億港元並在全球擁有多項設施的印刷及出版公司。 董事會謹此感謝林女士對本集團的貢獻。 於本公佈日期，本公司董事會由執行董事劉竹堅先生、林美蘭女士及朱震環先生；非執行董事李海先生 及郭俊升先生；以及獨立非執行董事李效良教授、何大衞先生及伍兆安先生組成。 (於百慕達註冊成立之有限公司) (股份代號：1127) * 僅供識別 執行董事退任 董事會歡迎加拿大特許會計師公會會員及城巴有限公司前任財務董事王世揚先生擔任首席營運 官及首席財務官，自二零二五年八月一日起生效。王先生及林女士將攜手合作，以確保順利 ...

Financial Performance - In 2024, the company's revenue increased by 4% to HKD 2,668,600,000, a historical high compared to HKD 2,562,800,000 in 2023[3] - The profit attributable to owners rose by 16% to HKD 214,400,000, up from HKD 185,200,000 in 2023[3] - Quarto's revenue for the year ended December 31, 2024, was approximately HKD 2,668.6 million, an increase of 4.1% compared to HKD 2,562.8 million in 2023[25] - Revenue for the year ended December 31, 2024, was HKD 2,668,586,000, an increase of 4.1% from HKD 2,562,781,000 in 2023[173] - Gross profit for the same period was HKD 890,145,000, representing a gross margin of 33.4% compared to 32.8% in 2023[173] - Net profit for the year was HKD 253,592,000, up 5.4% from HKD 240,722,000 in the previous year[173] - Basic earnings per share increased to HKD 0.2858 from HKD 0.2497, reflecting a growth of 14.5%[173] - Total comprehensive income for the year was HKD 207,745,000, down from HKD 243,792,000 in 2023, a decline of 14.8%[173] Dividends - The company announced a second interim dividend of HKD 0.08 per share and a special dividend of HKD 0.02 per share, totaling HKD 0.145 per share for the year, reflecting confidence in long-term prospects[5] - The company declared an interim dividend of HKD 0.03 per share, totaling HKD 23,100,000, and a special dividend of HKD 0.015 per share, totaling HKD 11,550,000, distributed on September 24, 2024[86] - The company will not declare a final dividend for the year ending December 31, 2024, compared to HKD 0.08 per share in 2023[86] - The company declared a proposed dividend of HKD 61,600 thousand for the year, consistent with previous distributions[179] Operational Highlights - The printing manufacturing segment, including Huixing Printing and Papercraft, contributed to revenue growth despite challenges in the global illustrated book market[8] - Papercraft's revenue surged by 95% due to expanded printing capacity and increased service demand, although profitability did not meet expectations[14] - The printing division's revenue grew by 7.6% due to the normalization of inventory levels among publishers and advance orders to mitigate expected tariff increases in 2025[25] - The Australian manufacturing segment experienced a 6% decrease in revenue, but profits showed slight growth, focusing on leisure books and technical journals[12] - The company is expanding its capacity in Malaysia to meet the ongoing demand for book printing in Southeast Asia[23] Market Conditions - The global book market saw a 1% increase in printed book unit sales in the US, with adult fiction growing by 5%, while adult non-fiction and children's books declined by 0.4% and 0.7% respectively[8] - The Chinese book market contracted by 6%, leading to increased competition among local printers for overseas orders[9] - The company expects a slight improvement in the Chinese book market in 2025, despite ongoing local printing capacity shortages[22] - The anticipated implementation of the EU Deforestation Regulation by December 30, 2025, will limit paper choices for European publishers, potentially benefiting large printing companies compliant with the regulation[22] Cost and Expenses - Sales and distribution expenses increased from approximately HKD 350.1 million in 2023 to HKD 377.5 million in 2024, with the expense ratio rising from 13.7% to 14.1% due to higher freight costs in the printing division[26] - Administrative expenses rose from HKD 212 million in 2023 to approximately HKD 231.5 million in 2024, mainly due to increased costs associated with the publishing business[26] - The company's effective tax rate for the year was approximately 19.5%, slightly up from 19.4% in 2023[173] Financial Position - The group's current assets net value was approximately HKD 947.7 million as of December 31, 2024, down from HKD 991.5 million in 2023, with cash and cash equivalents decreasing from HKD 780.1 million to HKD 500.5 million[29] - The capital debt ratio improved to 17.2% in 2024 from 27.0% in 2023, indicating a stronger equity position relative to interest-bearing debt[29] - Total assets decreased from HKD 1,913,851 thousand in 2023 to HKD 1,651,462 thousand in 2024, a reduction of approximately 13.7%[174] - Cash and cash equivalents dropped significantly from HKD 780,094 thousand in 2023 to HKD 500,488 thousand in 2024, a decline of around 35.9%[174] Strategic Initiatives - The company is investing AUD 15,000,000 to replace aging machinery in Australia to improve production efficiency and meet customer expectations[13] - The company is upgrading its AI systems to automate more production workflows, aiming for further cost savings and competitive advantage[22] - The company is focusing on digital printing technology, which is expected to revolutionize the industry by reducing operational time and inventory costs[79] - The company is considering strategic acquisitions to bolster its portfolio, with potential targets identified in the H sector[7] Governance and Compliance - The board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[122] - The company has adopted a diversity policy for its board members, currently including one female director[123] - The Audit Committee conducted three meetings in 2024 to review the group's annual report and financial statements, ensuring compliance with applicable accounting standards[142] - The independent non-executive directors confirmed that all related transactions were conducted in the ordinary course of business and on normal commercial terms[111] Risks and Challenges - The company faces risks from macroeconomic conditions, which may impact long-term profitability and business growth due to uncertainties in various global markets[77] - The increasing trend of digital media consumption is affecting the demand for printed materials, potentially impacting the company's financial performance[78] - The company continues to assess its internal controls related to credit monitoring and expected credit losses[167]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of HKD 2,668,586,000, representing an increase of 4.1% from HKD 2,562,781,000 in the previous year[4] - Gross profit for the year was HKD 890,145,000, up 6.1% from HKD 839,221,000 in 2023[4] - The net profit attributable to the company's owners increased to HKD 214,406,000, a rise of 15.7% compared to HKD 185,248,000 in the prior year[5] - Basic earnings per share rose to HKD 28.58, compared to HKD 24.97 in 2023, reflecting a growth of 14.4%[5] - Total comprehensive income for the year was HKD 207,745,000, down 14.8% from HKD 243,792,000 in the previous year[4] - Adjusted profit before tax for the group was HKD 315,182,000, compared to HKD 301,151,000 in the previous year, indicating a growth of 4.7%[26] - The company's net profit attributable to shareholders for the fiscal year was approximately HKD 214,400,000, representing a 15.8% increase from HKD 185,200,000 in 2023[69] Assets and Liabilities - The company's total assets decreased to HKD 1,651,462,000 from HKD 1,913,851,000, a decline of 13.7%[6] - Current liabilities were reduced to HKD 703,742,000 from HKD 922,397,000, a decrease of 23.7%[6] - The company's equity attributable to owners decreased to HKD 1,510,723,000 from HKD 1,452,407,000, reflecting a decline of 4.0%[6] - The company reported a decrease in cash and cash equivalents to HKD 500,488,000 from HKD 780,094,000, a drop of 35.9%[6] - As of December 31, 2023, the total equity attributable to owners of the company is HKD 1,129,838,000, with total equity amounting to HKD 1,800,517,000[8] - The company's current assets net value was approximately HKD 947,700,000, down from HKD 991,500,000 in 2023, with cash and cash equivalents at about HKD 500,500,000[70] Dividends - The proposed final dividend for the year 2023 is HKD 61,600,000, reflecting a commitment to return value to shareholders[8] - The total dividends declared for the fiscal year 2024 include a second interim dividend of HKD 0.08 per share, totaling HKD 61,600,000, and a special dividend of HKD 0.02 per share, totaling HKD 15,400,000[39] - The company declared a special dividend of HKD 0.015 per share for the first time in 2024, amounting to HKD 11,550,000[39] - The company announced an interim dividend of HKD 0.08 per share and a special dividend of HKD 0.02 per share, totaling HKD 0.145 per share for the year[51] Revenue Segmentation - Printing revenue amounted to HKD 1,738,350,000, up from HKD 1,614,872,000, reflecting a growth of 7.7%[26] - Publishing revenue was HKD 930,236,000, a decrease of 1.8% from HKD 947,909,000[26] - The printing segment's revenue grew by 7.6% due to the normalization of inventory levels among publishers and advance orders to mitigate expected tariff increases in 2025[67] - The company reported a total of HKD 1,889,551,000 in revenue from external customers in the Printing segment for the year[26] Expenses and Costs - The company incurred financial expenses of HKD 25,353,000, down from HKD 36,402,000 in the previous year[26] - The total financial expenses decreased to HKD 25,353,000 in 2024 from HKD 36,402,000 in 2023, representing a reduction of 30.4%[32] - The company recognized a direct operating cost of inventory at HKD 1,778,441,000 in 2024, compared to HKD 1,723,560,000 in 2023, an increase of 3.2%[33] - The company's total expenses related to employee benefits rose to HKD 519,480,000 in 2024 from HKD 507,344,000 in 2023, an increase of 2.2%[33] Strategic Initiatives - The company plans to continue expanding its market presence and investing in new product development to drive future growth[4] - The company plans to expand its production capacity in Malaysia to meet the ongoing demand for book printing in Southeast Asia[65] - The company is exploring various AI platforms to develop proprietary forecasting tools to enhance its ability to identify market trends and content needs[65] - The company is strategically investing in Papercraft to mitigate trade war risks and capitalize on the "China plus one" trend, providing alternative solutions for publishing clients[63] Market Conditions - The printing manufacturing business, including Huixing Printing and Papercraft, contributed to revenue growth despite challenges in the global illustrated book market[53] - The U.S. book market saw a 1% year-over-year increase in printed book unit sales, with adult fiction growing by 5%[53] - The total sales value of books in mainland China contracted by 6% in 2024, excluding academic publishing[54] - Shipping costs have returned to levels seen 12 months ago, with expectations for lower prices in 2025 due to the impact of protectionist policies on global shipping demand[63] Compliance and Governance - The board confirmed compliance with the corporate governance code as per the Hong Kong Stock Exchange listing rules for the year[78] - The audit committee, consisting of three independent non-executive directors, reviewed the audited financial performance for the year ending December 31, 2024[79]

●球 LION ROCK GROUP LIMITED 獅子山集團有限公司 股份代號：1127 2024翡翠 | --- | --- | |-------|-----------------------------------------------| | | | | | | | | 目錄 | | 2 | | | 7 | 管理層討論及分析 簡明綜合損益及其他全面收益表 | | 8 | 簡明綜合財務狀況表 | | 9 | 簡明綜合現金流量表 | | 11 | 簡明綜合股本變動表 | | 13 | 簡明綜合中期財務報表附註 | | 23 | 其他披露 | | | | 28 公司資料 書及兒童圖書市場這兩個分部的表現略顯遜色。 管理層討論及分析 | --- | --- | |----------------------------------------------------------|-------------------------------------------------------------------------------------------------------------| | 業務 ...

[Financial Performance Overview](index=1&type=section&id=I.%20Financial%20Performance%20Overview) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group achieved revenue growth and increased profit for the period and profit attributable to owners in H1 2024, though total comprehensive income slightly decreased due to higher exchange losses from overseas operations translation Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for H1 2024 (HK$ thousand) | Indicator | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | 1,257,315 | 1,209,685 | +3.9% | | Gross Profit | 399,247 | 382,715 | +4.3% | | Profit Before Income Tax | 111,880 | 108,521 | +3.1% | | Profit for the Period | 87,846 | 83,507 | +5.2% | | Profit Attributable to Owners of the Company | 79,098 | 71,157 | +11.1% | | Exchange Loss from Overseas Operations Translation | (14,597) | (8,030) | -81.8% | | Total Comprehensive Income for the Period | 73,249 | 75,477 | -3.0% | - Basic earnings per share increased from **9.61 HK cents** in H1 2023 to **10.55 HK cents** in H1 2024, while diluted earnings per share rose from **9.46 HK cents** to **10.49 HK cents**[3](index=3&type=chunk) [Financial Position Overview](index=3&type=section&id=II.%20Financial%20Position%20Overview) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets and net assets decreased compared to the end of 2023, primarily due to a reduction in current assets, while non-current assets remained relatively stable Condensed Consolidated Statement of Financial Position as of June 30, 2024 (HK$ thousand) | Indicator | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 961,864 | 975,586 | -1.4% | | Current Assets | 1,683,151 | 1,913,851 | -12.0% | | Current Liabilities | 839,783 | 922,397 | -9.0% | | Net Current Assets | 843,368 | 991,454 | -14.9% | | Net Assets | 1,644,533 | 1,800,517 | -8.6% | | Total Equity | 1,644,533 | 1,800,517 | -8.6% | - Cash and cash equivalents significantly decreased from **HK$780,094 thousand** at the end of 2023 to **HK$516,365 thousand** as of June 30, 2024[4](index=4&type=chunk) [Cash Flow Overview](index=5&type=section&id=III.%20Cash%20Flow%20Overview) [Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2024, the Group experienced a decrease in net cash from operating activities, a significant increase in net cash used in investing activities, and a substantial rise in net cash used in financing activities, leading to a considerable reduction in cash and cash equivalents at period-end Condensed Consolidated Statement of Cash Flows for H1 2024 (HK$ thousand) | Indicator | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 125,620 | 196,010 | -35.9% | | Net Cash Used in Investing Activities | (234,720) | (88,248) | -165.9% | | Net Cash Used in Financing Activities | (153,180) | (75,669) | -102.4% | | Net (Decrease) Increase in Cash and Cash Equivalents | (262,280) | 32,093 | From increase to decrease | | Cash and Cash Equivalents at End of Period | 516,365 | 808,100 | -36.1% | - The significant increase in net cash used in investing activities was primarily due to increased payments for intangible assets (**HK$69,514 thousand**) and share repurchases by a subsidiary (**HK$157,103 thousand**)[6](index=6&type=chunk) [Equity Changes Overview](index=7&type=section&id=IV.%20Equity%20Changes%20Overview) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2024, equity attributable to owners of the company and non-controlling interests both decreased, mainly impacted by dividends paid, share repurchases by a subsidiary, and changes in exchange reserves Changes in Equity Attributable to Owners of the Company for H1 2024 (HK$ thousand) | Indicator | Balance as of January 1, 2024 | Balance as of June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Equity Attributable to Owners of the Company | 1,452,407 | 1,432,850 | -1.3% | | Non-controlling Interests | 348,110 | 211,683 | -39.2% | | Total Equity | 1,800,517 | 1,644,533 | -8.6% | - Share repurchases by a subsidiary led to a **HK$131,088 thousand** reduction in non-controlling interests and a **HK$26,015 thousand** reduction in equity attributable to owners of the company (recognized in other reserves)[8](index=8&type=chunk) [Notes to the Condensed Consolidated Interim Financial Statements](index=9&type=section&id=V.%20Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Statements) [General Information](index=9&type=section&id=1.%20General%20Information) Lion Rock Group Limited was incorporated in Bermuda in 2011, primarily engaged in book publishing and printing services, and listed on the Hong Kong Stock Exchange in the same year - The company's principal activities are book publishing and providing printing services[10](index=10&type=chunk) - The company's shares were listed on The Stock Exchange of Hong Kong Limited on July 25, 2011[10](index=10&type=chunk) [Basis of Preparation](index=9&type=section&id=2.%20Basis%20of%20Preparation) The condensed consolidated interim financial statements are prepared in accordance with HKAS 34 and the Listing Rules, using the historical cost convention, and have been reviewed by the Audit Committee, with no significant impact from new HKFRSs - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and Appendix 16 of the Listing Rules[11](index=11&type=chunk) - The adoption of new or revised Hong Kong Financial Reporting Standards had no significant impact on the financial statements for the current and prior accounting periods[11](index=11&type=chunk) [Segment Information](index=10&type=section&id=3.%20Segment%20Information) The Group's business is divided into two reportable operating segments: printing and publishing, with revenue analyzed by operating segment and geographical location, showing the US market as the largest revenue source [By Operating Segment](index=10&type=section&id=5.3.1%20By%20Operating%20Segment) In H1 2024, the printing segment achieved revenue growth and a slight improvement in segment results, while the publishing segment experienced a decline in both revenue and segment results Revenue and Segment Results by Operating Segment for H1 2024 (HK$ thousand) | Segment | H1 2024 Revenue | H1 2023 Revenue | Revenue Change | H1 2024 Segment Results | H1 2023 Segment Results | Results Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Printing | 870,089 | 806,367 | +7.9% | 108,582 | 102,779 | +5.6% | | Publishing | 387,226 | 403,318 | -4.0% | 18,543 | 23,710 | -21.8% | | Consolidated | 1,257,315 | 1,209,685 | +3.9% | 127,125 | 126,489 | +0.5% | [By Geographical Location](index=11&type=section&id=5.3.2%20By%20Geographical%20Location) The United States is the Group's largest revenue source, with H1 2024 revenue growing by 10.4% year-on-year, while markets like Australia, Germany, and France saw declines, and Italy and Mexico achieved significant growth Revenue by Geographical Location for H1 2024 (HK$ thousand) | Country | H1 2024 Revenue | H1 2023 Revenue | Change | | :--- | :--- | :--- | :--- | | United States | 605,808 | 548,551 | +10.4% | | Australia | 304,952 | 337,352 | -9.6% | | United Kingdom | 151,454 | 121,662 | +24.5% | | Italy | 24,411 | 9,151 | +166.8% | | Mexico | 12,394 | 382 | +3145.0% | [Finance Costs](index=11&type=section&id=4.%20Finance%20Costs) Total finance costs decreased by 18.5% in H1 2024, primarily due to reduced interest expense on bank borrowings, partially offset by increased interest on lease liabilities Finance Costs for H1 2024 (HK$ thousand) | Item | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Interest expense on bank borrowings | 10,002 | 13,430 | -25.5% | | Interest on lease liabilities | 3,414 | 2,724 | +25.3% | | Total | 13,416 | 16,459 | -18.5% | [Profit Before Income Tax](index=12&type=section&id=5.%20Profit%20Before%20Income%20Tax) Profit before income tax for H1 2024 was HK$111,880 thousand, an increase from the prior period, mainly influenced by reduced depreciation, amortization, and impairment expenses, as well as increased interest income Profit Before Income Tax Adjustments for H1 2024 (HK$ thousand) | Item | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 22,904 | 20,831 | +10.0% | | Amortization and impairment of intangible assets | 51,618 | 57,398 | -10.1% | | Employee benefit expenses (net of capitalization) | 255,437 | 249,329 | +2.4% | | Net exchange loss | 1,377 | 5,554 | -75.2% | | Interest income | (9,965) | (9,415) | +5.8% | [Income Tax Expense](index=12&type=section&id=6.%20Income%20Tax%20Expense) Total income tax expense for H1 2024 slightly decreased, with a reduction in Hong Kong profits tax, while overseas taxation and under-provision for prior years increased Income Tax Expense for H1 2024 (HK$ thousand) | Item | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Hong Kong profits tax | 9,556 | 14,107 | -32.3% | | Overseas taxation | 12,063 | 8,474 | +42.4% | | Under-provision for prior years | 2,279 | - | N/A | | Deferred tax deduction | 136 | 2,433 | -94.4% | | Total | 24,034 | 25,014 | -3.9% | - Hong Kong profits tax is provided at a rate of **16.5%**, and overseas profits are taxed at local rates[17](index=17&type=chunk) [Earnings Per Share](index=13&type=section&id=7.%20Earnings%20Per%20Share) Both basic and diluted earnings per share increased in H1 2024, reflecting an improvement in the company's profitability Earnings Per Share for H1 2024 (HK cents) | Indicator | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share | 10.55 | 9.61 | +9.8% | | Diluted Earnings Per Share | 10.49 | 9.46 | +10.9% | - The weighted average number of ordinary shares used to calculate basic earnings per share increased from **740,417 thousand** to **749,698 thousand**[18](index=18&type=chunk) [Property, Plant and Equipment](index=13&type=section&id=8.%20Property,%20Plant%20and%20Equipment) As of June 30, 2024, the net book value of property, plant and equipment slightly decreased, mainly due to depreciation and exchange differences, though additions continued Net Book Value of Property, Plant and Equipment for H1 2024 (HK$ thousand) | Indicator | January 1, 2024 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Opening Net Book Value | 255,912 | N/A | N/A | | Additions | 21,837 | N/A | N/A | | Depreciation | (22,904) | N/A | N/A | | Closing Net Book Value | N/A | 249,381 | -2.6% | - The net book value of construction in progress increased from **HK$11,098 thousand** to **HK$11,189 thousand**[20](index=20&type=chunk) [Right-of-Use Assets](index=14&type=section&id=9.%20Right-of-Use%20Assets) As of June 30, 2024, the total right-of-use assets decreased compared to the end of 2023, primarily in leased properties and plant and equipment Right-of-Use Assets for H1 2024 (HK$ thousand) | Item | December 31, 2023 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Leased land | 4,261 | 4,130 | -3.1% | | Leased properties | 134,726 | 128,612 | -4.6% | | Plant and equipment | 3,514 | 3,108 | -11.5% | | Total | 142,501 | 135,850 | -4.6% | [Intangible Assets](index=14&type=section&id=10.%20Intangible%20Assets) As of June 30, 2024, total intangible assets slightly increased due to additions of other intangible assets, though amortization, impairment, and exchange differences had a negative impact Intangible Assets for H1 2024 (HK$ thousand) | Item | January 1, 2024 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Goodwill | 321,331 | 320,438 | -0.3% | | Other intangible assets | 195,203 | 206,601 | +5.8% | | Total | 516,534 | 527,039 | +2.0% | - Additions to other intangible assets amounted to **HK$69,514 thousand**, with amortization and impairment totaling **HK$51,618 thousand**[22](index=22&type=chunk) [Trade and Other Receivables and Deposits](index=15&type=section&id=11.%20Trade%20and%20Other%20Receivables%20and%20Deposits) As of June 30, 2024, total trade and other receivables and deposits increased, driven by a rise in net trade receivables, but with a reduction in impairment provisions Trade and Other Receivables and Deposits as of June 30, 2024 (HK$ thousand) | Item | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Gross trade receivables | 661,167 | 637,750 | +3.7% | | Less: Impairment provision | (26,239) | (30,752) | -14.7% | | Net trade receivables | 634,928 | 606,998 | +4.6% | | Other receivables and deposits | 114,672 | 95,870 | +19.6% | | Total | 749,600 | 702,868 | +6.6% | - The credit period granted to trade customers is generally **30 to 150 days**[23](index=23&type=chunk) [Trade and Other Payables](index=15&type=section&id=12.%20Trade%20and%20Other%20Payables) As of June 30, 2024, total trade and other payables decreased, primarily due to a reduction in other payables and accrued expenses Trade and Other Payables as of June 30, 2024 (HK$ thousand) | Item | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Gross trade payables | 171,365 | 177,380 | -3.4% | | Other payables and accrued expenses | 293,017 | 309,540 | -5.4% | | Total | 464,382 | 486,920 | -4.6% | [Bank Borrowings](index=16&type=section&id=13.%20Bank%20Borrowings) As of June 30, 2024, total bank borrowings decreased compared to the end of 2023, mainly reflecting a reduction in bank loans repayable after one year Bank Borrowings as of June 30, 2024 (HK$ thousand) | Item | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Bank loans repayable within one year | 200,727 | 185,576 | +8.2% | | Bank loans repayable after one year | 77,423 | 106,786 | -27.5% | | Bank loans repayable in the third to fifth year | - | 37,667 | -100% | | Total | 278,150 | 330,029 | -15.7% | - All bank borrowings are guaranteed by the company, bear interest at floating rates, and are repayable within five years[25](index=25&type=chunk) [Share Capital](index=16&type=section&id=14.%20Share%20Capital) As of June 30, 2024, the company's authorized and issued and fully paid share capital remained stable, with a par value of HK$0.01 per share Share Capital Information as of June 30, 2024 (HK$ thousand) | Item | Number of Shares (thousand) | Amount (HK$ thousand) | | :--- | :--- | :--- | | Authorized Share Capital | 1,500,000 | 15,000 | | Issued and Fully Paid Share Capital | 770,000 | 7,700 | [Capital Commitments](index=16&type=section&id=15.%20Capital%20Commitments) As of June 30, 2024, the Group's capital commitments contracted but not provided for, related to the acquisition of property, plant and equipment, increased Capital Commitments as of June 30, 2024 (HK$ thousand) | Item | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 5,815 | 5,072 | +14.6% | [Dividends and Distributions](index=17&type=section&id=16.%20Dividends%20and%20Distributions) In H1 2024, the total final dividend paid for 2023 decreased, but interim and special dividends were declared, with the special dividend being a new addition Dividends and Distributions for H1 2024 (HK$ thousand) | Item | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | 2023 Final Dividend (HK$0.080 per share) | 61,600 | 53,900 | +14.3% | | 2022 Special Dividend (HK$0.030 per share) | - | 23,100 | -100% | | Dividend income from shares held under share award scheme | (1,608) | (2,958) | -45.7% | | Total dividends paid to owners of the company | 59,992 | 74,042 | -19.0% | | Interim dividend declared (HK$0.030 per share) | 23,100 | 23,100 | 0% | | Special dividend declared (HK$0.015 per share) | 11,550 | - | N/A | | Total dividends declared | 34,650 | 23,100 | +50.0% | - An interim dividend of **HK$0.030 per share** and a special dividend of **HK$0.015 per share** were declared for H1 2024, to be paid in cash and reflected in retained earnings for the year ending December 31, 2024[29](index=29&type=chunk) [Related Party Transactions](index=18&type=section&id=17.%20Related%20Party%20Transactions) Total key management personnel compensation slightly decreased in H1 2024, primarily due to a reduction in equity-settled share-based payment expenses Key Management Personnel Compensation for H1 2024 (HK$ thousand) | Item | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Short-term compensation | 4,432 | 4,402 | +0.7% | | Post-employment benefits | 101 | 99 | +2.0% | | Equity-settled share-based payment expenses | 284 | 478 | -40.6% | | Total | 4,817 | 4,979 | -3.3% | [Contingent Liabilities](index=18&type=section&id=18.%20Contingent%20Liabilities) As of June 30, 2024, the Group had no significant contingent liabilities - As of June 30, 2024, the Group had no significant contingent liabilities[31](index=31&type=chunk) [Fair Value Measurement](index=18&type=section&id=19.%20Fair%20Value%20Measurement) The Group's forward foreign exchange contracts had no net fair value as of June 30, 2024, and other financial instruments were accounted for at cost or amortized cost with no significant fair value changes Recurring Fair Value Measurements as of June 30, 2024 (HK$ thousand) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net fair value of forward foreign exchange contracts | - | 238 | - There were no significant changes in the fair value of trade and other receivables, payables, bank borrowings, and lease liabilities[33](index=33&type=chunk) [Repurchase of Shares by a Subsidiary](index=19&type=section&id=20.%20Repurchase%20of%20Shares%20by%20a%20Subsidiary) In March 2024, non-wholly owned subsidiary The Quarto Group, Inc. repurchased shares through a tender offer, increasing the Group's equity interest in Quarto from 50.08% to 67.79% and reducing equity attributable to owners of the company - The Quarto Group, Inc. repurchased **10,639,491 shares** for a total consideration of approximately **HK$157,103 thousand**[35](index=35&type=chunk) - The Group's equity interest in Quarto increased from **50.08%** to **67.79%**[35](index=35&type=chunk) - The share repurchase resulted in a **HK$26,015 thousand** reduction in equity attributable to owners of the company, recognized in other reserves[35](index=35&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=VI.%20Management%20Discussion%20and%20Analysis) [Business Review](index=20&type=section&id=Business%20Review) Despite a complex macroeconomic environment, a sluggish global book market, and rising freight costs, the Group achieved excellent results in H1 2024, with increased turnover and profit attributable to owners, driven by print manufacturing and enhanced Quarto equity [Macroeconomic Environment and Overall Performance](index=20&type=section&id=6.1.1%20Macroeconomic%20Environment%20and%20Overall%20Performance) In H1 2024, the Group's turnover grew by 4% to HK$1,257 million, and profit attributable to owners increased by 11% to HK$79.1 million, primarily driven by print manufacturing and improved Quarto profit contribution, despite a sluggish global book market, a 0.5% decline in US print book sales, and soaring shipping costs impacting publishers' profitability Group Overall Performance for H1 2024 (HK$ million) | Indicator | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Turnover | 1,257 | 1,210 | +4% | | Profit Attributable to Owners of the Company | 79.1 | 71.2 | +11% | - The global book market was sluggish, with US print book sales down **0.5%** year-on-year, adult fiction up **6%**, and adult non-fiction and children's books down **3%**[36](index=36&type=chunk) - Freight costs from China to the US West Coast surged from **US$3,500/FEU** to **US$7,500/FEU**, with rising shipping costs impacting illustrated book publishers' profitability by approximately **US$2 million**[37](index=37&type=chunk) [Print Manufacturing Segment](index=21&type=section&id=6.1.2%20Print%20Manufacturing%20Segment) Regal Printing's sales turnover grew by 20% but profit margins declined due to increased competition; OPUS Group's turnover decreased by 4% but improved margins through cost control; Papercraft's sales turnover significantly increased by 113%, reducing operating losses and becoming a key component of the Group's "China Plus One" strategy - Regal Printing's sales turnover increased by **20%**, but profit margins declined due to intensified competition from local Chinese printers[39](index=39&type=chunk) - OPUS Group's turnover decreased by **4%**, but profit margins improved through the integration of Griffin Press and implementation of cost controls[39](index=39&type=chunk) - Papercraft (Malaysia) sales turnover increased by **113%**, with operating losses significantly reduced, making it a crucial part of the Group's "China Plus One" strategy[40](index=40&type=chunk) [Print Services Management Segment](index=21&type=section&id=6.1.3%20Print%20Services%20Management%20Segment) APOL Group's sales turnover grew by 2%, with increases in key markets offsetting declines elsewhere, while Regent's sales turnover decreased by 14%, consistent with a weak US book market, prompting management to actively explore new markets like the Middle East - APOL Group's sales turnover increased by **2%**, driven by the US, UK, and Australian markets[41](index=41&type=chunk) - Regent's sales turnover decreased by **14%**, linked to the weak US book market, and the company is exploring expansion into the Middle East market[42](index=42&type=chunk) [Publishing Segment](index=22&type=section&id=6.1.4%20Publishing%20Segment) Quarto Group's revenue declined by 4%, mainly due to decreased B2B sales; the Group's equity interest in Quarto increased to 68%, and new management is focused on attracting renowned authors and high-caliber staff to improve performance, with results to be assessed in Q3 - Quarto Group's revenue decreased by **4%**, primarily due to a decline in business-to-business (B2B) sales[43](index=43&type=chunk) - The Group's equity interest in Quarto increased from **50%** to **68%**, and Quarto has voluntarily delisted from the London Stock Exchange[43](index=43&type=chunk) - New management is committed to attracting renowned authors and high-caliber staff, with the effectiveness of high-investment books to be assessed in the third quarter[43](index=43&type=chunk) [Outlook](index=22&type=section&id=Outlook) The Group maintains cautious optimism for full-year performance, anticipating a continued sluggish global illustrated book market and print services demand in H2; Red Sea shipping disruptions cause freight volatility, but sea freight prices are expected to decline in Q4; geopolitical tensions could escalate into trade wars, which the Group addresses by increasing Papercraft's capacity in Malaysia; the Group plans to repay some bank debt and adjust dividend payment timing - The global illustrated book market and demand for print services are expected to remain sluggish in H2, influenced by the US presidential election and publishers adjusting orders[44](index=44&type=chunk) - Sea freight prices are anticipated to decrease in Q4, but overall freight costs may not change significantly due to high Western land freight costs[44](index=44&type=chunk) - Geopolitical factors pose the greatest threat, and the Group has increased Papercraft's capacity in Malaysia to mitigate risks of potential trade wars and comprehensive tariffs on Chinese goods[45](index=45&type=chunk) - The Group plans to repay some bank debt due to a lack of M&A opportunities with reasonable valuations[45](index=45&type=chunk) - An interim dividend of **3.0 HK cents per share** and a special dividend of **1.5 HK cents per share** have been declared, with the second dividend payment brought forward to April of the following year[45](index=45&type=chunk) [Financial Review](index=24&type=section&id=VII.%20Financial%20Review) [Analysis of Statement of Profit or Loss Items](index=24&type=section&id=Analysis%20of%20Statement%20of%20Profit%20or%20Loss%20Items) In H1 2024, turnover grew by 3.9%, with the printing segment up 7.9% and publishing down 4.0%; gross profit margin slightly increased to 31.8%; interest income rose, other income decreased; selling and distribution costs increased, administrative expenses rose, finance costs decreased, and income tax expense reduced; profit attributable to owners of the company grew by 11.1% - Turnover increased by **3.9%** to **HK$1,257.3 million**, with the printing segment growing by **7.9%** and the publishing segment declining by **4.0%**[46](index=46&type=chunk) - Gross profit margin slightly increased from **31.6%** to **31.8%**, with publishing segment margins rising and printing segment margins decreasing[46](index=46&type=chunk) - Selling and distribution costs increased to **HK$180.7 million**, rising from **13.9%** to **14.4%** of sales, primarily due to soaring freight costs and increased marketing expenses[46](index=46&type=chunk) - Administrative expenses increased to **HK$114.7 million**, mainly due to higher legal and professional fees for corporate projects such as Quarto's delisting, tender offer, and share repurchases[46](index=46&type=chunk) - Finance costs decreased to **HK$13.4 million**, primarily attributable to the repayment of bank borrowings[47](index=47&type=chunk) - Income tax expense decreased to **HK$24.0 million**, as entities in Singapore and Malaysia began generating profits, with unrecognised tax loss credits[47](index=47&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=25&type=section&id=Liquidity,%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2024, the Group's net current assets and cash and bank balances both decreased, and the current ratio slightly declined, while the gearing ratio decreased to 26.0%, indicating improved financial leverage Liquidity and Capital Structure as of June 30, 2024 (HK$ thousand) | Indicator | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 843,400 | 991,500 | -14.9% | | Cash and Bank Balances | 516,400 | 780,100 | -33.8% | | Current Ratio | 2.0 | 2.1 | -0.1 | | Total Bank Borrowings and Lease Liabilities | 428,000 | 485,700 | -11.9% | | Gearing Ratio | 26.0% | 27.0% | -1.0% | - The Group acquired approximately **HK$21.8 million** in property, plant and equipment, funded by internal resources[48](index=48&type=chunk) - The Group regularly monitors its liquidity requirements to ensure sufficient cash reserves and credit facilities[49](index=49&type=chunk) [Other Financial and Operating Disclosures](index=26&type=section&id=VIII.%20Other%20Financial%20and%20Operating%20Disclosures) [Foreign Exchange Management](index=26&type=section&id=Foreign%20Exchange%20Management) The Group's sales are denominated in multiple currencies (USD, AUD, EUR, GBP), while costs and expenses are primarily in USD, AUD, HKD, and RMB, with foreign exchange contracts entered into periodically to hedge currency risks - The Group's sales are primarily denominated in US dollars, Australian dollars, Euros, and British Pounds, while costs and expenses are mainly denominated in US dollars, Australian dollars, Hong Kong dollars, and Renminbi[50](index=50&type=chunk) - The Group enters into foreign exchange contracts from time to time to hedge currency risks[50](index=50&type=chunk) [Pledged Assets](index=26&type=section&id=Pledged%20Assets) As of June 30, 2024, the Group had approximately HK$200 thousand in pledged deposits, serving as collateral for a subsidiary's bank guarantee facilities - As of June 30, 2024, the Group had approximately **HK$200 thousand** in pledged deposits, serving as collateral for a subsidiary's bank guarantee facilities[51](index=51&type=chunk) [Capital Commitments and Contingent Liabilities](index=26&type=section&id=Capital%20Commitments%20and%20Contingent%20Liabilities) As of June 30, 2024, the Group had capital commitments of approximately HK$5.8 million for the acquisition of printing machinery and no significant contingent liabilities - As of June 30, 2024, the Group had capital commitments of approximately **HK$5.8 million** for the acquisition of printing machinery[52](index=52&type=chunk) - The Group had no significant contingent liabilities as of June 30, 2024[52](index=52&type=chunk) [Corporate Governance and Shareholder Information](index=27&type=section&id=IX.%20Corporate%20Governance%20and%20Shareholder%20Information) [Directors' and Chief Executive's Interests in Securities](index=27&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20in%20Securities) As of June 30, 2024, several directors held long positions in the company's shares and its associate, OPUS Group Limited, with Mr. Liu Chuk Kin holding 46.70% of the company's issued share capital, and some directors also holding unvested shares under the share award scheme Directors' Long Positions in the Company's Shares as of June 30, 2024 (Shares) | Director's Name | Personal Interests | Corporate Interests | Total Interests | Percentage of Company's Issued Share Capital (%) | | :--- | :--- | :--- | :--- | :--- | | Mr. Liu Chuk Kin | 93,183,906 | 266,432,717 | 359,616,623 | 46.70 | | Ms. Lam Mei Lan | 10,148,688 | Nil | 10,148,688 | 1.32 | | Mr. Kwok Chun Sing | 200,000 | 249,804 | 449,804 | 0.06 | - Mr. Liu Chuk Kin held a long position of **336,247,275 shares** in OPUS Group Limited, representing **67.43%** of its issued share capital[54](index=54&type=chunk) - Ms. Lam Mei Lan, Professor Li Xiao Liang, and Mr. Ho Tai Wai held unvested shares granted under the share award scheme[55](index=55&type=chunk) [Major Shareholders](index=29&type=section&id=Major%20Shareholders) As of June 30, 2024, Qing Tian Group Limited, City Apex Ltd., Mr. Cheng Man Ki, Mr. Webb David Michael, and JcbNext Berhad were major shareholders, holding 5% or more of the company's issued share capital Major Shareholders' Shareholdings as of June 30, 2024 (Shares) | Shareholder Name | Total Interests | Percentage of Company's Issued Share Capital (%) | | :--- | :--- | :--- | | Qing Tian Group Limited | 266,432,717 | 34.60 | | City Apex Ltd. | 258,135,326 | 33.52 | | Mr. Cheng Man Ki | 64,179,613 | 8.34 | | Mr. Webb David Michael | 69,344,976 | 9.00 | | JcbNext Berhad | 54,112,030 | 7.03 | | Preferable Situation Assets Limited | 41,413,808 | 5.38 | [Share Award Scheme](index=30&type=section&id=Share%20Award%20Scheme) The Regal Printing Share Award Scheme expired on December 30, 2023, with no new shares granted or purchased in H1 2024, and 19,236,000 award shares remained effective as of June 30, 2024 - The Regal Printing Share Award Scheme expired on **December 30, 2023**[59](index=59&type=chunk) - No new shares were granted or purchased in H1 2024, but some shares vested and were cancelled[59](index=59&type=chunk) - As of June 30, 2024, **19,236,000** award shares remained effective[59](index=59&type=chunk) [Share Option Scheme](index=30&type=section&id=Share%20Option%20Scheme) As of June 30, 2024, and the date of this interim report, the company had no share option scheme - As of June 30, 2024, and the date of this interim report, the company had no share option scheme[60](index=60&type=chunk) [Purchase, Sale or Redemption of Shares](index=31&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Shares) For the six months ended June 30, 2024, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities - For the six months ended June 30, 2024, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[61](index=61&type=chunk) [Corporate Governance Code](index=31&type=section&id=Corporate%20Governance%20Code) The Board believes that the company has complied with the code provisions set out in Appendix 14 of the Listing Rules, "Corporate Governance Code," for H1 2024 - The Board believes that the company has complied with the code provisions set out in Appendix 14 of the Listing Rules, "Corporate Governance Code," for the six months ended June 30, 2024[62](index=62&type=chunk) [Standard Code for Securities Transactions](index=31&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The company has adopted the Standard Code as the code for directors' dealings in company securities and confirmed no non-compliance by directors in H1 2024 - The company has adopted the Standard Code as the code for directors' dealings in the company's securities[63](index=63&type=chunk) - For the six months ended June 30, 2024, no directors failed to comply with the required standards set out in the Standard Code[63](index=63&type=chunk) [Employees and Remuneration Policy](index=31&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the Group had approximately 1,797 full-time employees, offering competitive salaries and benefits including share awards, provident funds, insurance, and medical coverage Number of Employees | Date | Number of Full-time Employees | | :--- | :--- | | June 30, 2024 | 1,797 | | June 30, 2023 | 1,748 | - Employee salaries are competitive and rewarded based on performance, with benefits including share awards, provident funds, insurance, and medical coverage[64](index=64&type=chunk) [Interim and Special Dividends and Closure of Register of Members](index=31&type=section&id=Interim%20and%20Special%20Dividends%20and%20Closure%20of%20Register%20of%20Members) The Board recommends an interim dividend of HK$0.030 per share and a special dividend of HK$0.015 per share, with the register of members to be closed on September 10, 2024, and dividends expected to be paid on September 24, 2024 - An interim dividend of **HK$0.030 per share** and a special dividend of **HK$0.015 per share** are recommended[65](index=65&type=chunk) - The register of members will be closed on **September 10, 2024**, and dividends are expected to be paid on **September 24, 2024**[65](index=65&type=chunk) [Audit Committee](index=32&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing the Group's financial reporting and internal controls, and has reviewed this interim report, deeming it compliant with applicable accounting standards and adequately disclosed - The Audit Committee comprises three independent non-executive directors and is responsible for reviewing the Group's financial reporting and internal controls[66](index=66&type=chunk) - The Audit Committee has reviewed this interim report and considers it to be in compliance with applicable accounting standards and adequately disclosed[66](index=66&type=chunk) [Board Composition](index=32&type=section&id=Board%20Composition) As of the date of this announcement, the Board of Directors comprises three executive directors, two non-executive directors, and three independent non-executive directors - The Board of Directors comprises three executive directors (Mr. Liu Chuk Kin, Ms. Lam Mei Lan, Mr. Chu Chun Wan), two non-executive directors (Mr. Li Hai, Mr. Kwok Chun Sing), and three independent non-executive directors (Professor Li Xiao Liang, Mr. Ho Tai Wai, Mr. Ng Siu On)[67](index=67&type=chunk)

Procurement and Customer Concentration - The top five suppliers accounted for approximately 34% of total procurement, with the largest supplier representing 11%[2] - The top five customers contributed about 22% to total sales, with the largest customer accounting for 8%[2] Employee and Management Information - The group employed approximately 1,771 full-time employees as of December 31, 2023, an increase from 1,683 in 2022[8] - The remuneration of senior management for the year ending December 31, 2023, is detailed according to salary grades[31] - The company encourages directors to participate in professional development courses related to listing rules and corporate governance[22] Corporate Governance and Board Structure - The board of directors consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[11] - The company has adopted a diversity policy for its board members, currently including two female directors[11] - The company confirmed that all independent non-executive directors are independent individuals as per the listing rules[6] - The company has maintained the required public float as stipulated by the listing rules during the fiscal year ending December 31, 2023[11] - The company will propose the reappointment of its auditor at the upcoming annual general meeting[9] - The board of directors held four meetings and one annual general meeting in 2023, with full attendance from all directors[15] - The nomination committee was formed in February 2012 and consists of executive and independent non-executive directors, with the chairman being Mr. Liu[29] Risk Management and Compliance - The company has established a continuous process to identify, assess, and manage significant risks, with management responsible for reporting risk assessment results[20] - The company has implemented appropriate policies and controls to ensure asset protection and compliance with relevant rules and regulations[20] - The independent qualified accountant conducted an annual review of the internal control system, finding no significant defects and confirming its effectiveness[20] - The company has a whistleblowing policy to encourage employees to report any suspected misconduct[20] - The company is committed to maintaining compliance with corporate governance codes and has made progress in implementing these regulations[40] Financial Performance - The company's revenue increased by 3% to HKD 2,563,000,000 in 2023, compared to HKD 2,496,000,000 in 2022[98] - The net profit after tax decreased by 16% to HKD 240,700,000 in 2023, down from HKD 285,800,000 in 2022, primarily due to a one-time gain of HKD 31,000,000 recorded in 2022[98] - The company's profit attributable to owners for the year ended December 31, 2023, was HKD 185,200,000, a decrease of 15.8% compared to HKD 219,900,000 in 2022[120] Dividend Policy - The company has adopted a dividend policy that considers actual and expected financial performance, operational capital requirements, and future expansion plans[42] - The company proposed a final dividend of HKD 0.08 per share, totaling HKD 0.11 per share for the year, reflecting confidence in long-term prospects[101] - The board proposed a final dividend of HKD 0.08 per share for the year ended December 31, 2023, compared to HKD 0.07 and a special dividend of HKD 0.03 in 2022[122] Acquisitions and Market Strategy - The company plans to diversify its supply chain and markets to address geopolitical risks and trade policies, enhancing dialogue with overseas customers and regional suppliers[99] - The company is focusing on digital printing technology, which is expected to revolutionize the industry by reducing operational time and inventory costs[93] - The company is adopting a diversification strategy to mitigate risks associated with geopolitical tensions affecting the Chinese manufacturing sector[114] Financial Position and Assets - The goodwill and intangible assets related to acquisitions amounted to HKD 321,331,000 and HKD 741,713,000, respectively, as of December 31, 2023[53] - As of December 31, 2023, the carrying amount of trade and other receivables was HKD 702,868,000, representing 37% of the group's current assets[60] - The group's net current assets as of December 31, 2023, were approximately HKD 991,500,000, up from HKD 869,300,000 in 2022, with cash and cash equivalents around HKD 780,100,000[120] Shareholder Information - The company has established a shareholder communication policy to ensure effective communication with shareholders through various channels[46] - The company reported a total of 325,609,275 shares held by Liu Zhu Jian, representing 65.30% of the issued share capital of the associated entity, Aoshih Global Group Limited[157] - Major shareholders include Qingtian Group Limited with a total interest of 266,432,717 shares, accounting for 34.60% of the issued share capital[167] Audit and Financial Review - The audit committee held three meetings in 2023, with full attendance from its members[43] - The company’s financial reports for the interim period of 2023 and the annual report for 2022 were reviewed by the audit committee and deemed compliant with applicable accounting standards[40] - The audit committee is responsible for overseeing the relationship with external auditors and reviewing the group's financial information[39] Challenges and Market Conditions - The company is facing challenges from the increasing shift towards digital media, which may impact the demand for printed materials[93] - The global book market faced significant challenges, with U.S. printed book sales declining by 3%, while children's books dropped by 5%[110] - The company expects the Chinese book market to remain weak in 2024, prompting local printers to diversify towards overseas publishing clients[117]

Financial Performance - For the fiscal year ended December 31, 2023, the company reported total revenue of HKD 2,562,781, an increase of 2.66% from HKD 2,496,089 in the previous year[5]. - The gross profit for the year was HKD 839,221, slightly up from HKD 831,425, resulting in a gross margin of approximately 32.8%[5]. - The net profit for the year was HKD 240,722, a decrease of 15.8% compared to HKD 285,809 in the previous year[5]. - The total comprehensive income for the year was HKD 243,792, down from HKD 249,483 in the previous year[6]. - Basic earnings per share for the year were HKD 24.97, compared to HKD 29.70 in the previous year, reflecting a decline of 16.3%[6]. - The profit before tax for the year 2023 was approximately HKD 185,248,000, a decrease from HKD 219,911,000 in 2022, reflecting a decline of about 15.7%[52]. - The company reported a net profit attributable to shareholders of HKD 185,200,000 for the year, a decrease of 15.8% from HKD 219,900,000 in 2022[98]. Revenue Breakdown - Printing revenue amounted to HKD 1,614,872,000, slightly down from HKD 1,620,197,000 in the previous year, indicating a decrease of about 0.02%[33]. - Publishing revenue increased to HKD 947,909,000 from HKD 875,892,000, reflecting a growth of approximately 8.21%[33]. - The total revenue from the publishing segment was HKD 947,909 in 2023, up from HKD 875,892 in 2022, indicating an increase of approximately 8.2%[36]. - The acquisition of Griffin Press contributed to the revenue growth in 2023, alongside the consolidation of Quarto as a subsidiary[76]. - The book publishing segment contributed approximately HKD 947,900,000 in revenue for the year, compared to HKD 875,900,000 in 2022, while the printing segment generated approximately HKD 1,614,900,000, a slight decrease from HKD 1,620,200,000 in the previous year[96]. Assets and Liabilities - The company's total assets as of December 31, 2023, were HKD 1,913,851, an increase from HKD 1,881,317 in the previous year[8]. - The total liabilities decreased to HKD 113,000 from HKD 130,834, indicating improved financial stability[8]. - As of December 31, 2023, total equity amounted to HKD 1,654,961,000, with retained earnings of HKD 1,025,857,000[10]. - The total assets of the company as of December 31, 2023, amount to HKD 255,912,000, compared to HKD 224,642,000 in 2022, indicating growth[53]. - The total liabilities as of December 31, 2023, are HKD 142,501,000, an increase from HKD 103,216,000 in 2022[55]. Cash Flow and Dividends - Cash and cash equivalents increased to HKD 780,094 from HKD 770,217, showing a positive cash flow trend[8]. - The company declared a proposed final dividend of HKD 61,600,000 for the year[10]. - The proposed final dividend for the year is HKD 0.08 per share, totaling approximately HKD 61,600,000, compared to HKD 53,900,000 for the previous year's final dividend[50]. - The board has proposed a final dividend of HKD 0.08 per share for the fiscal year ending December 31, 2023, compared to HKD 0.07 and a special dividend of HKD 0.03 in 2022[106]. Cost Management - The company reported a decrease in administrative expenses to HKD 211,955 from HKD 180,118, reflecting cost management efforts[5]. - The total employee benefits expenses increased to HKD 582,446,000 in 2023 from HKD 522,947,000 in 2022, representing an increase of approximately 11.4%[50]. - The financial expenses for the group increased to HKD 36,402 in 2023 from HKD 18,093 in 2022, marking an increase of approximately 101.3%[43]. - The company has increased its administrative expenses to approximately HKD 212,000,000, primarily due to the full-year administrative costs of Quarto and Griffin businesses[97]. Market and Strategic Outlook - The company plans to focus on market expansion and new product development in the upcoming fiscal year[5]. - The company implemented strategies for supply chain and market diversification in response to geopolitical tensions and inflationary pressures[73]. - The company plans to continue enhancing its printing capacity in Malaysia due to sustained demand for book printing in Southeast Asia[93]. - The Chinese book market is expected to remain weak in 2024, prompting local printers to diversify towards overseas clients[87]. Accounting and Compliance - The company has adopted new or revised Hong Kong Financial Reporting Standards, which did not have a significant impact on the group's performance or financial position for the current or prior periods[17]. - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards and comply with the applicable disclosure requirements of the Stock Exchange[1]. - The group has not early adopted any new or revised standards that have not yet come into effect during the current accounting period[21].