Financial Performance - Revenue for the year ended December 31, 2022, was HK$315,701,000, representing a 378% increase compared to HK$66,113,000 in 2021[11] - Profit from operations for 2022 was HK$12,990,000, a significant turnaround from a loss of HK$5,159,000 in 2021, marking a 352% improvement[11] - The profit attributable to equity shareholders of the Company was HK$7,313,000 in 2022, compared to a loss of HK$6,794,000 in 2021, reflecting a 208% increase[11] - The basic earnings per share for 2022 was HK$0.003, a 200% increase from a loss of HK$0.003 in 2021[11] - Non-controlling interests decreased to HK$9,000 in 2022 from HK$110,000 in 2021, a reduction of 92%[11] - The total revenue for the year was approximately HK$315.7 million, representing an increase of approximately 377.5% compared to approximately HK$66.1 million for the year ended 31 December 2021[28] - Revenue from sales of semi-conductors was approximately HK$255.3 million for the year, marking the primary source of revenue growth[31] - The gross profit increased by approximately HK$2.1 million, or approximately 5.8%, from approximately HK$36.4 million for the year ended 31 December 2021 to approximately HK$38.5 million for the year[42] - The gross profit margin decreased from approximately 55.1% for the year ended 31 December 2021 to approximately 12.2% for the year, primarily due to lower margins in the semi-conductor segment[42] - The income tax expense for the year amounted to approximately HK$4.8 million, compared to approximately HK$0.8 million for the year ended 31 December 2021[47] Business Strategy and Operations - The new semiconductor sales business contributed significantly to revenue growth in 2022, with expectations for even greater contributions in the future[16] - The Group disposed of a subsidiary, Treasure Cloud Limited, in 2022 to reallocate resources towards existing businesses and the new semiconductor venture[15] - The Group plans to expand into existing and new business markets as the economies of Hong Kong and the mainland recover in 2023[17] - The Group established a new sales segment focused on trading semi-conductor memory chips and wafers in 2022, anticipating steady demand growth[87] - The Group focuses on sales of sub-processing cigarette films, sales of semiconductors, property development, and photovoltaic power generation, with principal facilities located in the PRC[96] Financial Management and Cost Control - The Group will implement stricter financial budgeting and cost controls in response to rising operating costs due to high global inflation[17] - Administrative expenses decreased by approximately HK$3.4 million, or approximately 11.2%, from approximately HK$30.4 million for the year ended 31 December 2021 to approximately HK$27.0 million for the year[44] - The Group has adopted a prudent financial management approach, maintaining a healthy liquidity position throughout the Year[88] - The Group maintained a prudent financial management policy throughout the year, ensuring a stable liquidity position[93] - As of December 31, 2022, the Group had no capital commitments, consistent with the previous year[94] ESG and Sustainability - The ESG report covers the period from January 1, 2022, to December 31, 2022, detailing the Group's operational practices and environmental protection strategies[98] - The Board is responsible for overseeing the Group's ESG strategy, including the evaluation of ESG-related risks and opportunities[116] - The Group conducts ongoing ESG-related risk management and opportunities assessment in collaboration with the Audit Committee and Internal Audit[117] - The Group aims to enhance the Board's knowledge and awareness of the ESG landscape as part of its sustainability journey[115] - The Group identified 23 material ESG topics that impact the environment and society through its operations, following the ESG Reporting Guide[129] - The overall ESG performance and related risk assessments will be reported to the Board annually to ensure the achievement of the Group's ESG strategy and goals[125] - The Group's ESG strategy includes initiatives for environmental risk management, energy consumption, and waste management[132] - The material ESG issues include air emissions, greenhouse gas emissions, and hazardous waste management, which are critical for the Group's sustainability efforts[132] - The Group emphasizes the importance of community investment and anti-corruption practices as part of its social responsibility initiatives[134] Environmental Impact and Emissions - The Group has focused on environmental protection and pollutant emission during production and operation, ensuring compliance with regulatory standards for air, water, and land discharges[155] - During the year, the Group did not encounter any incidents of non-compliance with applicable laws and regulations related to air emissions, effluent discharges, noise emissions, greenhouse gases, and waste[156] - The Group's air emissions primarily come from vehicle usage and production processes, including the emission of sulphur oxides (SOx), nitrogen oxides (NOx), and particulate matter (PM)[157] - The Group's total greenhouse gas emissions (Scope I and II) amounted to 481.6 tonnes of CO2 equivalent (tCO2e) in 2022, a decrease from 680.2 tCO2e in 2021[178] - The carbon intensity for Scope I and II emissions was 0.02 tCO2e per square meter of gross floor area in 2022, down from 0.03 tCO2e in 2021[178] - The Group produced 55.5 million kilowatt-hours (kWh) of electricity from photovoltaic power stations in 2022, with a total sale of 55.1 million kWh, resulting in an overproduction of 0.8%[179] - The replacement of high-environmental impact electricity from fossil fuel sources avoided the release of 43,619.3 tCO2e of greenhouse gases[179] - The Group's Scope I emissions (direct emissions) increased to 17.7 tCO2e in 2022 from 9.4 tCO2e in 2021 due to the additional vehicle acquisition[178] - Scope II emissions (indirect emissions) decreased to 463.9 tCO2e in 2022 from 670.8 tCO2e in 2021, primarily due to reduced electricity consumption[178] Waste Management - The total non-hazardous waste generated by the Group in 2022 was 1,327.9 kg, with a non-hazardous waste intensity of 0.06 kg per square meter gross floor area[199] - The Group's non-hazardous waste in 2021 was 739.6 kg, indicating a significant increase of approximately 79.8% in 2022[199] - The Group has implemented waste separation systems and recycling bins to enhance recycling efforts[200] - The Group prioritizes waste recycling and aims to reduce hazardous waste generation by exploring less hazardous alternatives[188] - The Group's hazardous waste mainly consists of waste printer cartridges, which do not have a material impact on operations[189] - The Group's incineration method for non-hazardous waste is aimed at energy efficiency, accumulating waste until approximately 2 tonnes before disposal[197]

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告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全 部或任何部份內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Sheen Tai Holdings Group Company Limited 順 泰 控 股 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：01335） 全 年 業 績 公 告 截 至2022年12月31日 止 年 度 集團財務概要 截至2022年12月31日止年度（以港元為單位） 2022年 2021年 千港元 千港元 收入 315,701 66,113 毛利 38,540 36,443 稅前溢利╱（虧損） 12,089 (6,129) 應佔溢利╱（虧損）： 本公司權益股東 7,313 (6,794) 每股盈利╱（虧損） 基本（每股港元） 0.003 (0.003) ...

Revenue and Profitability - Revenue increased by approximately 265.9% to approximately HK$132.4 million for the six months ended 30 June 2022 compared to the corresponding period in 2021[5] - Gross profit increased by approximately 10.6% to approximately HK$21.5 million for the six months ended 30 June 2022 compared to the corresponding period in 2021[9] - Profit attributable to equity shareholders of the Company decreased by approximately 69.0% to approximately HK$1.3 million for the six months ended 30 June 2022 compared to the corresponding period in 2021[6] - Earnings per share decreased by approximately 69.0% to approximately HK cents 0.054 for the six months ended 30 June 2022 compared to the corresponding period in 2021[11] - The total comprehensive loss for the period was HK$30,834,000, compared to a total comprehensive income of HK$10,651,000 in the same period of 2021[118] - The Group's profit for the period attributable to equity shareholders is approximately HK$1,314,000 for the six months ended June 30, 2022, a decrease of 69% compared to HK$4,242,000 for the same period in 2021[196] Revenue Segmentation - The Group recorded revenue from sales of semi-conductors amounting to approximately HK$99.1 million during the Period[23] - Revenue generated from the generation of photovoltaic power was approximately HK$31.0 million for the Period[25] - The revenue from sales of sub-processing cigarette films was approximately HK$2.0 million for the Period[22] - Properties development revenue contributed approximately HK$0.3 million to the Group for the Period[24] - Revenue from photovoltaic power generation was approximately HK$31.0 million, an increase from HK$30.2 million in the previous period[29] - Sales of semi-conductors reached HK$99,062,000, accounting for 74% of total revenue, with no sales reported in the previous year[143] - Generation of photovoltaic power contributed HK$31,022,000, reflecting an 83% increase compared to HK$30,186,000 in the prior year[143] - Sales of sub-processing cigarette films decreased to HK$1,988,000, down 65% from HK$5,659,000 in the same period last year[143] - Properties development and related services generated HK$338,000, a slight decrease from HK$343,000 in the previous year[143] Business Operations and Strategy - The Group's business is now classified into four segments: sales of sub-processing cigarette films, sales of semi-conductors, properties development and related services, and generation of photovoltaic power[21] - The Group commenced a new business in the sales of semi-conductors in the first half of 2022, anticipating a significant increase in demand as the economy recovers from the COVID-19 pandemic[67] - The Group disposed of Treasure Cloud Limited, which focused on cloud-related business, to rearrange resources for existing and new businesses[19] - The strategic shift led to the discontinuation of the cloud-related business segment, which was previously part of the company's operations[158] - The company plans to continue focusing on its core segments while exploring opportunities for market expansion and new product development[158] Financial Position and Cash Flow - Cash and cash equivalents decreased to approximately HK$298.2 million from approximately HK$344.9 million as of December 31, 2021[48] - Total current assets as of June 30, 2022, were HK$525,940,000, down from HK$540,055,000 at the end of 2021, a decrease of 2.4%[120] - Trade and other receivables increased to HK$221,707,000 from HK$180,322,000, marking a rise of 22.9%[120] - Net assets as of June 30, 2022, were HK$794,495,000, down from HK$825,329,000 at the end of 2021, a decrease of 3.7%[123] - For the six months ended June 30, 2022, the net cash used in operating activities was HK$48,950,000, compared to HK$25,751,000 for the same period in 2021, indicating a significant increase in cash outflow[130] - The company reported a net decrease in cash and cash equivalents of HK$26,140,000 for the period, compared to a decrease of HK$19,109,000 in the previous year[130] Corporate Governance and Management - The Company has not appointed a chief executive officer, with Mr. Guo Yumin acting as chairman and responsible for overall management[102] - The Board believes the absence of a chief executive will not adversely affect the Company, as decisions are made collectively by executive Directors[104] - The Company has complied with the corporate governance code provisions during the reporting period, except for the absence of a chief executive[101] - The Audit Committee comprises three independent non-executive Directors, ensuring oversight of financial reporting and internal controls[108] Shareholder Information - As of June 30, 2022, Mr. Guo Yumin holds 1,206,086,000 shares, representing approximately 49.55% of the company's shares[70] - Ms. Xia Yu holds 1,478,442,164 shares, which accounts for approximately 60.74% of the company's shares, including her spouse's interests[70] - The total number of shares beneficially owned by Ms. Fan Qing is 800,000, representing 0.03% of the company's shares[70] - The company has not been notified of any other persons holding interests or short positions in shares or underlying shares that require disclosure under the Securities and Futures Ordinance as of June 30, 2022[79] Taxation and Compliance - Jiangsu Sheen Colour Science Technology Co., Ltd. is subject to a preferential enterprise income tax rate of 15% for the six months ended June 30, 2022, consistent with the previous year[179] - Xuzhou Sheentai New Energy Power Generation Co., Ltd. is entitled to a 3+3 tax holiday, receiving tax exemptions for the first three years and a 50% reduction for the next three years starting from the year it first generates operating income[184] - Xuyi Guangcai Information Technology Co., Ltd. is entitled to a 2+3 tax holiday, receiving tax exemptions for the first two years and a 50% reduction for the next three years starting from the year it first generates operating income[185] - The withholding tax rate applicable to the Group for dividends receivable is 5% under the tax arrangement between Mainland China and Hong Kong[186] Employee and Operational Metrics - The Group employed 61 employees as of June 30, 2022, a slight decrease from 62 employees in the previous year[65] - The company has not engaged in any arrangements that enable Directors or the chief executive to acquire benefits through share acquisition during the six months ended June 30, 2022[81] - The Group recognized a right-of-use asset and lease liability of approximately HK$1,187,000 upon entering a new lease agreement for an office for 2 years during the six months ended June 30, 2022[196]

Financial Performance - Revenue from continuing operations decreased by 17% to HK$66,113,000 in 2021 from HK$79,525,000 in 2020[9] - Loss from operations from continuing operations was HK$5,159,000 in 2021 compared to a profit of HK$15,184,000 in 2020, representing a 134% decline[9] - Loss attributable to equity shareholders of the Company was HK$6,794,000 in 2021, a 145% decrease from a profit of HK$15,053,000 in 2020[9] - Revenue from property development was approximately HK$0.4 million, a significant decrease from approximately HK$21.4 million in the previous year due to reduced sales of remaining inventories[33] - The Group recorded a loss attributable to equity shareholders of approximately HK$6.8 million for the Year, compared to a profit of approximately HK$15.1 million for the year ended 31 December 2020, representing a significant decline[54] Business Segments - The photovoltaic power business remained stable, with the Xuzhou power plant operating well, contributing to consistent revenue[14] - New products in the sub-processing film segment were successfully developed and launched, leading to a significant increase in sales[14] - Revenue from the properties development segment significantly decreased due to the sale of lower-priced inventory, primarily storage rooms and parking lots[14] - The Group recorded revenue of approximately HK$8.1 million from sales of sub-processing cigarette and non-cigarette films, an increase from approximately HK$5.1 million in the previous year[32] - The photovoltaic power generation segment generated approximately HK$57.6 million in revenue, up from approximately HK$53.0 million in the previous year, with a total grid-connected capacity of 40 megawatts[34] Cost and Expenses - Gross profit decreased by approximately HK$7.0 million, or 16.1%, from approximately HK$43.4 million to approximately HK$36.4 million, while gross profit margin increased from approximately 54.5% to approximately 55.1%[35] - Administrative expenses decreased by approximately HK$0.9 million, or 2.9%, from approximately HK$31.3 million to approximately HK$30.4 million[45] - Impairment losses on trade and other receivables increased to approximately HK$14.6 million from approximately HK$0.6 million in the previous year, attributed to greater financial uncertainty due to the COVID-19 pandemic[47] - Selling and distribution expenses remained stable at approximately HK$0.5 million, unchanged from the previous year[43] Strategic Initiatives - The Company plans to actively seek investment opportunities and prioritize market and professional team building for future growth[15] - The Group aims to launch more new projects and build corresponding professional teams to create development opportunities[15] - The Group plans to actively seek different investment opportunities to create more profits and will appropriately launch more new projects in the future[30] - The Group's focus on the development of residential properties and photovoltaic power sales indicates a strategic shift towards sustainable energy solutions[30] Financial Position - As of 31 December 2021, the Group's cash and cash equivalents amounted to approximately HK$344.9 million, an increase of approximately HK$18.8 million from HK$326.1 million as of 31 December 2020[56] - The Group's current ratio improved to 18.9 as of 31 December 2021, compared to 16.2 as of 31 December 2020, indicating a stronger liquidity position[56] - Total capital expenditure for the Year was approximately HK$2.0 million, reflecting the Group's investment activities[64] - The Group did not have any material bank loans or borrowings as of 31 December 2021, maintaining a debt-free status[58] - The income tax expense decreased to approximately HK$0.8 million for the Year, down from approximately HK$4.4 million for the year ended 31 December 2020, primarily due to a refund of PRC land appreciation tax[51] Human Resources - The Group employed 67 employees as of 31 December 2021, down from 74 employees in the previous year, with total staff costs of approximately HK$14.4 million for the Year[68] Dividend and Investments - The Board does not recommend payment of any final dividend for the Year, consistent with the previous year[71] - There were no significant investments, material acquisitions, or disposals by the Group during the Year, indicating a conservative approach to capital allocation[64] - As of December 31, 2021, the Group had no capital commitments, consistent with the previous year[85] Sustainability and ESG - The ESG report covers the period from January 1, 2021, to December 31, 2021, and includes major subsidiaries contributing to total revenue[93] - The Group has included Xuzhou Shuntai New Energy Power Generation Co., Ltd. in this year's report due to its increasing contribution to total revenue[93] - The assessment of ESG-related risks includes environment, human resources, health and safety, and compliance, integrated into risk management processes[106] - The Group adopts a three-step process of identification, prioritization, and validation to manage sustainability topics according to their materiality[107] - A total of 23 sustainability topics have been identified that impact the environment and society through operations[110] - The Group emphasizes the importance of occupational health and workplace safety, ranking it as the highest material topic[121] - Quality and safety of goods/services is ranked second, highlighting the Group's commitment to maintaining high standards[121] - Customer satisfaction is identified as a critical area, reflecting the Group's focus on enhancing client relationships[121] - The Group has established multiple engagement channels for stakeholders, including employees, customers, suppliers, shareholders, government, and community[129] - The Group's environmental risk management and ecological impacts are also considered significant, indicating a proactive approach to sustainability[121] - The Group's commitment to anti-corruption and anti-competitive practices is emphasized, showcasing its dedication to ethical business conduct[121] - Employee development and training are prioritized, demonstrating the Group's investment in its workforce[121] - The Group actively engages with stakeholders to shape its business strategies and respond to their needs and expectations[125] - The Group's performance on high and low materiality topics is disclosed, ensuring transparency in its operations[124] - The Group's focus on compliance with laws and regulations reflects its commitment to corporate governance and sustainability[132] Environmental Impact - The Group aims to maintain similar levels of emissions and waste in 2022 compared to the current year, focusing on clean production and pollution reduction[139] - In 2021, the Group emitted 3.4 kg of Nitrogen Oxides, 0.1 kg of Sulphur Oxides, and 0.2 kg of Particulate Matter[146] - The Group generated a total of 680.2 tonnes of carbon dioxide equivalent (tCO2e) of greenhouse gases in 2021, with a carbon intensity of 0.03 tCO2e per square meter gross floor area[157] - The Group produced 54.6 million kilowatt-hours (kWh) of electricity from photovoltaic power stations in 2021, selling 54.0 million kWh, resulting in 1.1% overproduction[159] - The replacement of high-environmental impact electricity from fossil fuel sources avoided the release of 32,923.4 tCO2e of greenhouse gases[159] - The Group's carbon footprint is primarily due to electricity usage, accounted under Scope II emissions[157] - All discharges to air, water, and land are compliant with regulatory standards, with no incidents of non-compliance reported during the year[141] - Regular maintenance of machinery and vehicles is conducted to ensure fuel efficiency and reduce emissions[142] - The Group's activities are minor sources of noise emissions, with regular monitoring to ensure compliance with regulatory levels[152] - The Group's environmental management systems ensure strict compliance with environmental regulations across all subsidiaries[137] - The Group's photovoltaic power stations generated a total of 54.6 million kWh of electricity in 2021, with a sales volume of 54.0 million kWh, resulting in a surplus of 1.1%[161] - The Group's solar power operations helped avoid the emission of 32,923.4 tons of CO2 equivalent greenhouse gases[161] - The total energy consumption for the Group in 2021 was 194,154.1 GJ, with a total energy intensity of 8.92 GJ per square meter of gross floor area[181] - The Group generated a total of 739.6 kg of non-hazardous waste in 2021, resulting in a non-hazardous waste intensity of 0.03 kg per square meter of gross floor area[174] - The Group's direct and indirect energy consumption amounted to 190,196.1 GJ in 2021[183] - The Group's energy profile is primarily based on electricity for facility operations, with fuel used for electricity being the major source of energy emissions[181] - The Group has implemented measures to reduce greenhouse gas emissions by lowering energy consumption in major areas such as air conditioning and lighting systems[167] - The Group encourages the use of video conferencing to minimize carbon footprints from overseas business trips[167] - The Group's hazardous waste mainly consisted of waste printer cartridges, which did not have a material impact on operations[171] - The Group aims to explore opportunities to replace hazardous materials with less hazardous alternatives as part of its sustainable development principles[166] - The Group consumed a total of 17,179 cubic meters of water during the year, resulting in a water intensity of 0.81 cubic meters per square meter of gross floor area[192] - A total of 8,463.0 kg of packaging material was consumed for finished products, leading to an intensity of 0.94 kg per square meter of gross floor area[198] - The Group has implemented energy-efficient measures, including the installation of LED lighting and cooling systems, to minimize fuel and electricity consumption[186] - The Group prioritizes effective water-saving products and raises staff awareness in water conservation through education and promotion[191] - The Group regularly checks for leakages and damages in piping and taps to ensure prompt repairs and reduce water consumption[191] - The Group aims to consider more sustainable approaches to product packaging early in the design phase[198] - The Group has adopted power-saving modes for office devices to minimize energy usage[186] - The Group complies with the Building Energy Efficiency Ordinance in property development planning, design, and construction[186] - The Group conducts comprehensive photovoltaic resource tests to minimize the impact of climate change on electricity generation[200]

Revenue and Profitability - Revenue increased by approximately 23.2% to approximately HK$36.2 million for the six months ended 30 June 2021 compared to the corresponding period in 2020[9]. - Profit attributable to equity shareholders increased by approximately 37.8% to approximately HK$4.2 million for the six months ended 30 June 2021 compared to the corresponding period in 2020[10]. - Earnings per share increased by approximately 38.1% to approximately HK cents 0.174 for the six months ended 30 June 2021 compared to the corresponding period in 2020[10]. - Profit from operations increased significantly to HK$5,812,000 compared to HK$1,355,000 in the previous year, reflecting a substantial operational improvement[115]. - Profit before tax rose to HK$5,319,000, compared to HK$761,000 in the prior year, marking a significant increase[115]. - The profit for the period from continuing operations was HK$4,176,000, a turnaround from a loss of HK$23 in the same period last year[115]. - The total comprehensive income for the period was HK$10,651,000, compared to a loss of HK$12,256,000 in the same period of 2020, indicating a strong recovery[120]. Segment Performance - Revenue from the sub-processing films segment rose from approximately HK$0.7 million for the six months ended 30 June 2020 to approximately HK$5.7 million for the Period[30]. - Revenue from photovoltaic power generation increased to approximately HK$30.2 million during the Period, up from approximately HK$27.0 million for the six months ended 30 June 2020[37]. - The generation of photovoltaic power segment reported a profit before tax of HK$16,257,000 in 2021, up from HK$8,112,000 in 2020, showing a strong performance[176]. - The properties development and related services segment generated revenue of HK$1,721,000 in 2021, compared to HK$30,186,000 in 2020, indicating a decline[176]. Financial Position - As of 30 June 2021, the Group had cash and cash equivalents totaling approximately HK$310.7 million[51]. - Total equity increased to HK$827,866,000 as of June 30, 2021, compared to HK$812,842,000 at the end of 2020, showing growth in shareholder value[126]. - Current assets increased to HK$539,483,000 from HK$529,326,000, driven by a significant rise in inventories from HK$7,692,000 to HK$24,727,000[123]. - Total current liabilities decreased to HK$26,989,000 from HK$32,721,000, reflecting improved management of trade payables[126]. - The company maintained a strong cash position with bank and cash balances of HK$310,698,000, slightly down from HK$326,060,000[123]. Expenses and Costs - Administrative expenses decreased by approximately HK$5.2 million from approximately HK$18.0 million for the six months ended 30 June 2020 to approximately HK$12.8 million for the Period[39]. - Finance costs incurred during the Period were approximately HK$0.5 million, a decrease from approximately HK$0.6 million for the six months ended 30 June 2020[40]. - Total borrowing costs decreased to HK$493,000 from HK$594,000, a reduction of 17%[184]. Corporate Governance - The Directors recognized the importance of good corporate governance and adhered to the principles to uphold shareholders' interests[98]. - The Company complied with the Corporate Governance Code provisions, except for the separation of roles between chairman and chief executive[101]. - The Group's corporate governance practices are based on the principles set out in the Corporate Governance Code[99]. Investment and Future Plans - The company plans to focus on investment opportunities in the photovoltaic industry, anticipating long-term profitability as China aims for carbon neutrality over the next four decades[71]. - The company is committed to evaluating investment opportunities in clean energy as part of its strategy for sustainable development[71]. - The company will focus on prudent evaluations before pursuing investments in the photovoltaic sector[71]. Employment and Workforce - The Group's workforce decreased to 62 employees as of 30 June 2021, down from 242 employees a year earlier[65]. - As of June 30, 2021, the company employed 62 employees, a significant decrease from 242 employees as of June 30, 2020[69]. Dividends - The Board does not recommend payment of any interim dividend for the six months ended 30 June 2021[11]. - The board does not recommend any interim dividend for the period, compared to HK$0.01 per share for the six months ended 30 June 2020[66]. Cash Flow - For the six months ended June 30, 2021, net cash used in operating activities was HK$ (23,196,000), a decrease from HK$ 76,218,000 in the same period of 2020[134]. - Cash and cash equivalents at June 30, 2021, amounted to HK$ 310,698,000, compared to HK$ 243,327,000 at the end of June 2020, reflecting an increase of 27.7%[134]. - Interest received increased to HK$ 838,000 in 2021 from HK$ 219,000 in 2020, representing a growth of 282.2%[134]. Taxation - Current tax provision for the period was HK$1,481,000, compared to HK$1,388,000 in the same period of 2020, reflecting a slight increase[186]. - The Group's effective tax rate for Jiangsu Sheen Colour Science Technology Co., Ltd. remained at a preferential rate of 15% for the period ended 30 June 2021[191].

Financial Performance - Revenue from continuing operations increased by 6% to HK$79,525,000 in 2020, compared to HK$75,259,000 in 2019[9] - Profit from operations from continuing operations was HK$15,184,000, a significant recovery from a loss of HK$19,809,000 in 2019, representing a 177% improvement[9] - Profit attributable to equity shareholders of the Company was HK$15,053,000, compared to a loss of HK$47,873,000 in the previous year, marking a 131% increase[9] - Basic earnings per share improved to HK$0.006 from a loss of HK$0.020 in 2019, reflecting a 130% increase[9] - The Group recorded revenue of approximately HK$5.1 million from sales of sub-processing cigarette and non-cigarette films, a decrease from approximately HK$7.5 million in the previous year[35] - Revenue from properties development increased significantly from approximately HK$8.8 million in the previous year to approximately HK$21.4 million for the current year[36] - The Group's gross profit increased by approximately HK$7.4 million, or approximately 20.3%, from approximately HK$36.0 million for the year ended 31 December 2019 to approximately HK$43.4 million for the Year[41] - The gross profit margin improved from approximately 47.9% for the year ended 31 December 2019 to approximately 54.5% for the Year[44] - Selling and distribution expenses decreased by approximately HK$0.4 million, or approximately 45.7%, from approximately HK$0.9 million for the year ended 31 December 2019 to approximately HK$0.5 million for the Year[42] - Administrative expenses decreased by approximately HK$11.4 million, or approximately 26.8%, from approximately HK$42.7 million for the year ended 31 December 2019 to approximately HK$31.3 million for the Year[43] - The Group recorded a profit attributable to equity shareholders of approximately HK$15.1 million for the Year, compared to a loss of approximately HK$47.9 million for the year ended 31 December 2019[53] Asset Management and Business Strategy - The company disposed of its factory in Qingdao, which improved asset turnover and generated additional cash inflow[13] - The company plans to allocate cash and resources towards product development and potential trials to strengthen its existing business[14] - Future business development will focus on expanding production networks and diversifying operations primarily in the Huaihai district[14] - The company is engaging with local developers and factories in Jiangsu Province to explore potential cooperation opportunities[14] - The Group disposed of Qingdao Ener Packaging Technology Co., Ltd., which was primarily involved in the manufacturing and sales of BOPP films, on December 10, 2020[24] - Following the disposal, the Group reclassified its operations into four business segments: sales of sub-processing cigarette films, properties development, generation of photovoltaic power, and cloud-related business[31] - The Board noted that Qingdao Ener had been loss-making for the last two financial years, prompting the decision to dispose of the subsidiary to improve asset turnover and generate additional cash inflow[29] - The Group is focusing on high-quality development and expanding its production network, particularly in the Huaihai region, to achieve sustainable business growth[16] - The Group is currently exploring potential projects to enhance its existing business and capture market opportunities[16] - The Group aims to strengthen its collaboration with local developers and factories in Jiangsu Province for potential partnerships[16] - The financial performance of Qingdao Ener deteriorated, leading to the belief that its profitability would not be sustainable[29] - The Group's strategy includes reallocating resources to product development and potential trials to support business growth[16] Challenges and Market Conditions - The financial year 2020 was impacted by COVID-19, leading to uncertainties in the BOPP film market and affecting production management[13] - The company anticipates further challenges due to rising raw material costs, which may impact profitability[13] Liquidity and Capital Management - As at 31 December 2020, the Group's cash and cash equivalents amounted to approximately HK$326.1 million, an increase of approximately HK$160.7 million from approximately HK$165.4 million as at 31 December 2019[55] - The total capital expenditure for the Year amounted to approximately HK$4.8 million[61] - The Group did not have any material bank loans as at 31 December 2020, compared to approximately HK$69.9 million as at 31 December 2019[55] - As of December 31, 2020, the Group did not have any capital commitments, similar to the situation as of December 31, 2019[80] - The Group has maintained a healthy liquidity position throughout the year by adopting a prudent financial management approach towards its treasury policies[77] Human Resources and Employment Practices - As of December 31, 2020, the Group employed 74 employees, a decrease from 245 employees as of December 31, 2019, with total staff costs of approximately HK$12.7 million for the year[71] - The Group's human resources policies ensure fair recruitment and promotion processes, adhering to relevant labor laws and regulations[183] - The Group has not encountered any incidents of non-compliance with major applicable laws and regulations related to employment during the year[183] - The Group prioritizes water-saving products and promotes water-saving habits throughout its premises[173] - The Group's remuneration package includes competitive salaries, incentive schemes, and discretionary bonuses[188] - The Group has a zero-tolerance policy for sexual harassment and other forms of abuse in the workplace[191] - The Group emphasizes a healthy work-life balance culture, ensuring compliance with legal working hour requirements[198] - Regular reviews are conducted to optimize work-life balance arrangements for employees[199] - Recreational events were organized during the year to promote social bonding among employees[198] Environmental, Social, and Governance (ESG) Initiatives - The Group has identified 23 material sustainability topics that impact the environment and society through its operations[95] - The Group's management conducts regular reviews of ESG-related metrics to ensure sustainability topics are managed and reported according to their materiality[93] - The Group has identified 23 key environmental, social, and governance (ESG) topics that impact its operations[98] - The Board regularly reviews and validates the materiality process, ensuring transparency in the Group's performance on high and low materiality topics[111] - High materiality topics include occupational health and safety, quality and safety of goods/services, and customer satisfaction[108] - The Group engages with a wide network of stakeholders, including employees, customers, suppliers, shareholders, government, and community[113] - The Group employs a three-step process to prioritize ESG topics based on their significance to stakeholders and the Group[104] - The Group is committed to maintaining effective communication channels with stakeholders to better shape its business strategies[116] - The Group's sustainability strategy is integrated into its overall corporate strategy, focusing on enhancing awareness of ESG issues at the Board level[102] - The Group emphasizes the importance of environmental risk management and climate-change strategy in its operations[101] - The Group's commitment to anti-corruption and anti-competitive practices is highlighted as a key governance issue[108] - The Group aims to strengthen its supply chain management as part of its sustainability initiatives[108] Environmental Compliance and Impact - The Group released 11.0 kg of Nitrogen Oxides, 0.2 kg of Sulphur Oxides, and 0.8 kg of Particulate Matter in 2020[129] - A total of 146 cubic meters of wastewater was discharged during the year, complying with the PRC Law on the Prevention and Treatment of Water Pollution[131] - The Group ensures all air, water, and land discharges comply with regulatory standards, with no incidents of noncompliance reported in 2020[126] - The Group's activities are minor sources of noise emissions, with regular maintenance ensuring compliance with regulatory limits[136] - The Group is committed to environmental sustainability, managing its direct and indirect impacts through clean production and energy-saving initiatives[123] - The management systems of each subsidiary ensure strict environmental compliance and continual improvement towards cleaner practices[124] - Regular monitoring and testing of effluent discharges ensure no adverse environmental impacts, adhering to applicable laws and regulations[131] - The Group's commitment to reducing air pollutants includes further curbing emissions beyond statutory requirements[128] - The Group generated a total of 610.3 tonnes of greenhouse gases (Scope I and II), resulting in a carbon intensity of 0.02 tCO2e per square meter gross floor area[143] - Scope II emissions, primarily from electricity usage, accounted for 579.8 tonnes of CO2e, representing 95% of the total emissions[143] - The Group's total energy consumption was 2,532.2 GJ, with direct energy consumption at 376.1 GJ and indirect energy consumption at 2,156.1 GJ, leading to an energy intensity of 0.07 GJ per square meter gross floor area[164] - During the Year, the Group generated a total of 1,200 kg of non-hazardous waste, resulting in a non-hazardous waste intensity of 0.03 kg per square meter gross floor area[156] - The Group's hazardous waste consisted of waste printer cartridges, which did not have a material impact on operations[150] - The Group aims to improve resource efficiency and has encountered no incidents of non-compliance with laws related to energy and water resource usage[162] - The Group encourages the use of video conferencing to minimize the carbon footprint from overseas business trips[145] - The Group emphasizes waste reduction and recycling, with a focus on reducing the generation of non-hazardous waste[154] - The Group's carbon footprint is primarily due to electricity usage, which is accounted under Scope II emissions[141] - The Group has established clear protocols for the safe handling and storage of hazardous waste[148] - The Group consumed a total of 2,196 cubic meters of water during the year, resulting in a water intensity of 0.07 cubic meters per square meter of gross floor area[176] - The Group has implemented energy-efficient measures, including the installation of LED lighting and cooling systems, to minimize fuel and electricity consumption[170]

Revenue Performance - Revenue decreased by approximately 23.4% to approximately HK$164.7 million for the six months ended 30 June 2020 compared to the corresponding period in 2019[6]. - Revenue for the period decreased by approximately HK$50.2 million, from about HK$214.9 million in the corresponding period last year[18]. - Revenue from the manufacturing and sales of BOPP films dropped from approximately HK$175.0 million to approximately HK$135.3 million[19]. - Revenue from the generation of photovoltaic power slightly decreased by HK$0.8 million, from approximately HK$27.8 million to approximately HK$27.0 million[23]. - Total revenue for the six months ended June 30, 2020, was HK$164,719,000, a decrease from HK$214,908,000 in the same period of 2019, representing a decline of approximately 23.3%[162]. - Revenue from cigarette films was HK$110,886,000, accounting for 67% of total revenue, while non-cigarette-related films generated HK$24,448,000, contributing 15%[162]. - The photovoltaic power generation segment reported revenue of HK$27,013,000, representing 17% of total revenue, consistent with the previous year[162]. Profitability - Gross profit increased by approximately 13.0% to approximately HK$54.6 million for the six months ended 30 June 2020 compared to the corresponding period in 2019[9]. - Gross profit margin increased by approximately 10.6% to approximately 33.1% for the six months ended 30 June 2020 compared to the corresponding period in 2019[8]. - The Group recorded a profit attributable to equity shareholders of approximately HK$3.1 million for the six months ended 30 June 2020 compared to a loss of approximately HK$0.2 million for the corresponding period in 2019[10]. - Profit attributed to the shareholders of the company for the period was approximately HK$3.1 million[26]. - Profit for the period was HK$1,491,000, a significant improvement from a loss of HK$242,000 in the previous year[110]. - The Group's consolidated profit before tax for the first half of 2020 was HK$664,000, a decrease from HK$1,649,000 in the same period of 2019[182]. Cash Flow and Liquidity - The group had cash and cash equivalents totaling approximately HK$243.3 million as of June 30, 2020[27]. - The net cash inflow from operating activities for the six months ended June 30, 2020, was approximately HK$76.2 million[27]. - Bank and cash balances increased significantly from HK$165,438,000 to HK$243,327,000, marking an increase of approximately 47%[114]. - The total cash and cash equivalents at June 30, 2020, amounted to HK$243,327,000, up from HK$151,456,000 at the same date in 2019, reflecting a strong liquidity position[129]. - The company’s cash and cash equivalents increased by HK$84,788,000 in the first half of 2020, contrasting with a decrease of HK$31,991,000 in the same period of 2019[129]. Expenses and Costs - Finance costs incurred during the period were approximately HK$2.6 million, down from approximately HK$3.8 million for the six months ended June 30, 2019[25]. - Administrative expenses decreased to HK$31,247,000 from HK$37,796,000, reflecting a reduction of 17.4%[108]. - Total borrowing costs decreased to HK$2,556,000 in 2020 from HK$3,802,000 in 2019, reflecting a reduction in interest on bank borrowings[191]. - Interest received decreased to HK$219,000 from HK$697,000 in the prior year, reflecting a decline in interest income[129]. Dividends - The Board approved payment of an interim dividend of HK$0.01 per share for the six months ended 30 June 2020, compared to no dividend for the same period in 2019[11]. - The interim dividend will be paid around October 9, 2020, to shareholders on record as of September 25, 2020[56]. - The company's share register will be closed from September 24 to September 25, 2020, for dividend eligibility[56]. Employee and Corporate Governance - As of June 30, 2020, the Group employed 242 employees, a decrease from 249 employees as of June 30, 2019[50]. - The company recognized the importance of good corporate governance and adhered to the principles outlined in the Corporate Governance Code during the reporting period[87]. - The company complied with the code provisions of the Corporate Governance Code during the period, except for the absence of a chief executive[88]. - There was no chief executive in the company during the six months ended June 30, 2020, with Mr. Guo Yumin acting as the chairman responsible for overall management[89]. Asset and Liability Management - Total non-current assets increased from HK$499,608,000 to HK$512,355,000, reflecting a growth of approximately 2%[114]. - Current assets rose from HK$523,788,000 to HK$471,286,000, indicating a decrease of about 10%[114]. - Total current liabilities increased from HK$190,059,000 to HK$214,111,000, showing a rise of about 12.6%[114]. - Total equity attributable to equity shareholders decreased from HK$765,651,000 to HK$757,068,000, a decline of approximately 1.1%[118]. - The Group's reportable segment assets as of June 30, 2020, were HK$981,731,000, a slight increase from HK$966,427,000 as of December 31, 2019[176]. - The Group's reportable segment liabilities increased to HK$238,795,000 as of June 30, 2020, compared to HK$217,838,000 at the end of 2019, reflecting a rise of 9.6%[176]. Market and Economic Conditions - The company will continue to monitor the COVID-19 pandemic and seek opportunities for business expansion to deliver long-term value appreciation[52]. - The company will continue to monitor the developments of the COVID-19 pandemic and take appropriate measures to maintain employee welfare and business operations[57]. - The Group received government grants totaling HK$216,000 under the Employment Support Scheme to retain employment during the COVID-19 pandemic[183].

Financial Performance - For the year ended December 31, 2019, the Group's revenue decreased by approximately 17.1% to HK$376,208,000 compared to HK$453,827,000 in 2018[12] - The Group reported an operating loss of HK$21,944,000, a significant decline from a profit of HK$8,693,000 in the previous year, representing a 352% change[12] - Loss attributable to equity shareholders increased by 81% to HK$47,873,000 from HK$26,498,000 in 2018[12] - Basic loss per share was HK$0.020, an increase of 82% compared to HK$0.011 in 2018[12] - The Group's revenue decreased by approximately HK$77.6 million, or approximately 17.1%, from approximately HK$453.8 million for the year ended December 31, 2018, to approximately HK$376.2 million[36] - Revenue from the manufacturing and sales of BOPP films decreased by approximately 12.0%, from approximately HK$342.0 million for the year ended December 31, 2018, to approximately HK$300.9 million for the Year[36] - The Group's revenue decreased by approximately HK$77.6 million or 17.1% to approximately HK$376.2 million for the year, primarily due to a decline in sales of sub-processing cigarette films[37] - Revenue from sales of sub-processing cigarette films dropped significantly, with a major customer contributing approximately HK$44.2 million in the previous year, while other customers contributed approximately HK$4.8 million for the current year[39] - Gross profit decreased by approximately HK$34.9 million or 30.3%, from approximately HK$115.4 million to approximately HK$80.5 million, with gross profit margin declining from 25.4% to 21.4%[39] - Selling and distribution expenses increased by approximately HK$4.6 million or 25.5%, from approximately HK$18.3 million to approximately HK$22.9 million, mainly due to higher delivery costs and promotional expenses[42] - Administrative expenses decreased by approximately HK$13.7 million or 15.7%, from approximately HK$87.2 million to approximately HK$73.5 million, attributed to a reduction in staff numbers[44] - The loss attributable to equity shareholders increased to approximately HK$47.9 million for the year, compared to a loss of approximately HK$26.5 million in the previous year[50] - The Group's total capital expenditure for the Year amounted to approximately HK$4.8 million[60] Business Segments - The films segment is expected to benefit from long-term opportunities, despite recent economic challenges due to trade tensions and slower economic growth in China[16] - The photovoltaic segment generated strong revenue without any safety incidents, contributing positively to the Group's performance[17] - Revenue from photovoltaic power generation increased by approximately 9.0%, from approximately HK$50.2 million to approximately HK$54.7 million, with total power generation rising from 48.1 million kWh to 54.7 million kWh[39] - The photovoltaic power stations operated smoothly with no safety incidents, and revenue from this segment slightly increased year-on-year due to the photovoltaic power stations built in June 2018[34] Strategic Initiatives - The Company is actively seeking new business opportunities in the Huaihai area to enhance economic benefits[16] - The Group aims to diversify its customer base to reduce concentration risk on any single customer group[17] - The Group is considering re-engineering and upgrading parts of its production lines to enhance overall production efficiency and meet customer demand[22] - The Group aims to reduce reliance on any single customer group by expanding its customer base and seeking new clients for its product portfolio[36] - The Group is focused on recruiting experienced sales personnel and participating in exhibitions related to film materials to expand market share[36] - The Group's investment plans are designed to strengthen profitability and better control operating costs in the films segment[22] - The Group continues to implement its investment plan prudently and conservatively in response to current market conditions[22] Human Resources - The Group employed 245 employees as of December 31, 2019, down from 317 employees as of December 31, 2018, with total staff costs of approximately HK$45.4 million for the Year[70] - Employees are compensated competitively, with remuneration packages including incentive schemes and discretionary bonuses[198] - Recruitment and promotion processes are conducted fairly and openly, recognizing contributions without discrimination based on various factors[199] - The Group promotes a respectful workplace and has a zero-tolerance policy for sexual harassment and abuse[200] Environmental Responsibility - The Group is committed to maintaining strict environmental compliance and continually improving practices towards cleaner operations[114] - The Group's environmental management system ensures compliance with regulatory standards and focuses on reducing emissions and environmental impacts[117] - The Group's sustainability efforts include advocating for green finance and managing both direct and indirect environmental impacts[113] - The Group's commitment to quality products is aligned with its goal of providing them in a clean and sustainable manner[114] - The Group's environmental responsibility is a key part of its corporate social responsibility efforts[112] - The Group's air emissions in 2019 included 31.03 kg of Nitrogen Oxides (NOx), 0.71 kg of Sulphur Oxides (SOx), and 2.28 kg of Particulate Matter (PM) released from vehicle exhaust[123] - The production processes released 4.04 tonnes of Volatile Organic Compounds (VOC) in 2019[123] - The Group discharged a total of 463 cubic meters of wastewater during the reporting year[126] - The Group generated a total of 15,678.40 tonnes of greenhouse gases (Scope I and II), resulting in a carbon intensity of 0.29 tCO2e per square meter gross floor area[132] - The total hazardous waste generated was 2,679 kg, with a hazardous waste intensity of 0.05 kg per square meter gross floor area[150] - The Group's carbon footprint is primarily due to electricity usage, which is categorized under Scope II emissions[132] - The Group encourages the use of video conferencing to minimize the carbon footprint from overseas business trips[141] - The Group aims to reduce waste generation and increase recycling rates to lessen GHG emissions from landfill decomposition[142] - All hazardous waste is managed by authorized contractors, ensuring proper handling and storage[144] - The major applicable laws related to environmental control include the PRC Law on Prevention and Control of Water Pollution and the PRC Law on Prevention and Control of Environmental Noise Pollution[131][145] - The Group emphasizes waste reduction over recycling to minimize environmental impacts[154] - The Group generated a total of 20,120 kg of non-hazardous waste, resulting in a non-hazardous waste intensity of 0.37 kg per square meter gross floor area[164] - The Group consumed a total of 48,697 GJ of direct energy and 57,715 GJ of indirect energy, leading to a total energy intensity of 1.97 GJ per square meter gross floor area[170] - Total water consumption was 49,016 cubic meters, resulting in a water intensity of 0.91 cubic meter per square meter gross floor area[184] - The majority of the Group's energy consumption (54%) was from electricity, with natural gas and petrol accounting for 44% and 2% respectively[172] - The Group has not encountered any incidents of non-compliance with laws and regulations related to energy and water resource usage during the reporting year[167] - The Group is committed to improving resource efficiency and has implemented measures to reduce non-hazardous waste generation and increase recycling rates[162] - The Group prioritizes water-saving products and regularly checks for leakages to minimize water consumption[181] - The Group's initiatives include installing energy-efficient LED lighting and cooling systems to reduce energy usage[177] - The Group emphasizes building an eco-conscious culture among employees and promotes low-carbon dietary choices for corporate events[186] Governance and Compliance - The Group has adopted a prudent financial management approach, maintaining a healthy liquidity position throughout the Year[82] - The Board does not recommend payment of any final dividend for the Year, consistent with the previous year[71] - The Group did not have any significant investments, material acquisitions, or disposals during the Year[68] - The trade dispute between China and the USA and the outbreak of COVID-19 are expected to impact economic and trade stability in 2020[79] - A subsidiary of the Group has started promoting products with low profit margins since 2019 to ensure healthy cash flow and avoid inventory backlog[80] - The Group's human resources policies adhere to relevant labor laws and regulations, ensuring compliance with major applicable laws in all operating regions[196] - There were no incidents of non-compliance with employment laws during the reporting year[197]

Revenue Performance - Revenue increased by approximately 2.5% to approximately HK$214.9 million for the six months ended 30 June 2019 compared to the corresponding period in 2018[4] - Revenue increased by approximately HK$5.2 million, or 2.5%, from approximately HK$209.7 million for the six months ended June 30, 2018, to approximately HK$214.9 million for the Period[14] - Total revenue for the six months ended June 30, 2019, was HK$214,908,000, a slight increase from HK$209,678,000 in the same period of 2018, representing a growth of approximately 2%[189] Profitability - Gross profit decreased by approximately 12.4% to approximately HK$48.3 million for the six months ended 30 June 2019 compared to the corresponding period in 2018[4] - Gross profit decreased by approximately HK$6.8 million, or 12.4%, from approximately HK$55.1 million to approximately HK$48.3 million, with gross profit margin declining from 26.3% to 22.5%[30] - The Group recorded a loss attributable to equity shareholders of approximately HK$0.2 million for the six months ended 30 June 2019 compared to a profit of approximately HK$4.6 million for the corresponding period in 2018[4] - The profit from operations was HK$5,451,000, a decline of 56.5% compared to HK$12,526,000 for the same period in 2018[116] - Basic loss per share was HK$0.010, compared to earnings of HK$0.188 per share in the same period last year[116] - Total comprehensive loss for the period was HK$2,195,000, compared to a total comprehensive loss of HK$7,858,000 in the previous year[119] Expenses and Costs - Selling and distribution expenses increased by approximately HK$1.7 million from approximately HK$6.9 million to approximately HK$8.6 million, in line with revenue growth from BOPP films[30] - Administrative expenses decreased by approximately HK$2.5 million from approximately HK$40.4 million to approximately HK$37.8 million due to cost control measures[30] - Finance costs incurred during the Period were approximately HK$3.8 million, down from approximately HK$4.3 million, primarily due to a decrease in bank borrowings[32] - Income tax expenses for the period were approximately HK$1.9 million, down from HK$3.6 million for the six months ended June 30, 2018[38] Cash Flow and Liquidity - As of June 30, 2019, the Group had cash and cash equivalents totaling approximately HK$151.5 million, with a net cash inflow from operating activities of approximately HK$15.0 million for the six months ended June 30, 2018[35] - Net cash generated from operating activities for the six months ended June 30, 2019, was $15,009 million, compared to $12,269 million in the previous period, representing a year-over-year increase of approximately 22.4%[133] - The net decrease in cash and cash equivalents was $(31,991) million, an improvement from $(82,618) million in the prior period, showing better liquidity management[133] - Cash and cash equivalents at June 30, 2019, stood at $151,456 million, down from $185,767 million at the end of the previous period[133] Shareholder Information - The Board does not recommend payment of any interim dividend for the six months ended 30 June 2019[4] - The Board did not recommend any interim dividend for the period, consistent with the previous year[58] - As of June 30, 2019, Mr. Guo Yumin holds a total of 1,206,086,000 shares, representing approximately 49.55% of the company's shares[68] - The total number of shares held by Sheentai BVI, a beneficial owner, is 1,206,086,000, which is 49.55% of the total shares[77] Employee Information - The Group had 249 employees as of June 30, 2019, down from 318 employees a year earlier[57] Corporate Governance - The company’s board of directors recognizes the importance of good corporate governance and adheres to the principles outlined in the Corporate Governance Code[95] - The company’s directors are committed to maximizing shareholder interests and identifying best practices in governance[96] Financial Position - Total non-current assets increased to HK$545,548,000 from HK$535,058,000, representing a growth of approximately 2.8%[122] - Current assets decreased to HK$530,754,000 from HK$586,747,000, a decline of about 9.5%[122] - Total current liabilities decreased to HK$224,296,000 from HK$284,654,000, a reduction of approximately 21.2%[122] - Net assets decreased to HK$825,216,000 from HK$831,307,000, reflecting a decline of about 0.7%[125] Lease Accounting - The Group adopted HKFRS 16 Leases effective January 1, 2019, which may impact future financial reporting and lease accounting practices[140] - The Group recognized HK$15,550,000 of right-of-use assets and HK$15,752,000 of lease liabilities as of June 30, 2019, due to the initial application of HKFRS 16[175] - Lease liabilities increased by HK$16,010 upon transition to HKFRS 16, reflecting the recognition of additional lease obligations[168] Revenue Breakdown - Revenue from the manufacturing and sales of BOPP films increased to approximately HK$175.0 million, up from HK$158.4 million, driven by increased demand from external customers for cigarette-related films[21] - Revenue from the sales of sub-processing cigarette films dropped significantly from approximately HK$19.7 million to approximately HK$5.1 million due to a substantial loss of sales from a major customer[26] - Sales of cigarette films amounted to HK$117,059,000, accounting for 54% of total revenue, compared to HK$105,370,000 and 50% in the previous year[189]

Financial Performance - Revenue for the year ended December 31, 2018, was HK$453.8 million, a decrease of 64% compared to HK$1,250.7 million in 2017[13] - Profit from operations dropped to HK$8.7 million, down 80% from HK$43.9 million in the previous year[13] - Loss attributable to equity shareholders was HK$26.5 million, compared to a loss of HK$165.2 million in 2017, reflecting an 84% decrease in losses[13] - Basic loss per share was HK$0.011, down 84% from HK$0.069 in the previous year[13] - The Group recorded a revenue decrease of approximately HK$796.9 million, or approximately 63.7%, from approximately HK$1,250.7 million to approximately HK$453.8 million for the Year[36] - The gross profit decreased by approximately HK$40.7 million, or 26.1%, from approximately HK$156.1 million to approximately HK$115.4 million, while the gross profit margin improved from 12.5% to 25.4%[49] - Selling and distribution expenses decreased by approximately HK$2.7 million, or 12.9%, to approximately HK$18.3 million due to reduced advertising and selling expenses[55] - Administrative expenses decreased by approximately HK$6.9 million, or 7.3%, to approximately HK$87.2 million due to cost control measures[56] - Cash and cash equivalents decreased by approximately HK$88.9 million to approximately HK$185.4 million as of December 31, 2018[68] - Total interest-bearing borrowings amounted to approximately HK$159.6 million, with a gearing ratio improving from -10.7% to -4.2%[69] Revenue Segments - Revenue from the manufacturing and sales of BOPP films was approximately RMB342.0 million, with a net profit of RMB1.8 million, significantly lower than the previous year[17] - Revenue from the manufacturing and sales of BOPP films increased by approximately 7.5%, from approximately HK$318.1 million to approximately HK$342.0 million[37] - Revenue from the sales of sub-processing cigarette films decreased, with anti-counterfeiting cigarette films down approximately 6.8% to approximately HK$46.9 million and slitting imported cigarette films down approximately 84.1% to approximately HK$3.2 million[38] - Properties development revenue was approximately HK$7.8 million, generated from the sale of remaining inventory of previous property projects, with related services contributing approximately HK$2.6 million[43] - Revenue from photovoltaic power generation increased by approximately 10.3%, from approximately HK$45.5 million to approximately HK$50.2 million, primarily due to the completion of the third power station[44] Operational Developments - The company completed the construction of a photovoltaic power station, with power generation increasing by 10% compared to the previous year[18] - The Group operates three photovoltaic power stations with a total grid-connected capacity of 40 megawatts, and total power generation rose from 43.9 million kWh to 48.1 million kWh[44] - The Group plans to explore potential investments in agricultural and fishery photovoltaic power station projects[18] - The Group plans to evaluate potential investment opportunities in power station construction while exploring agricultural and fishery complementary projects[34] Management and Governance - The company has a diverse board of directors with expertise in various fields including law, finance, and business management[135] - The company is focused on expanding its market presence and enhancing its management capabilities through experienced leadership[135] - The management team is committed to maintaining high standards of corporate governance and financial transparency[135] - The Group's management team includes individuals with diverse backgrounds in economic management, accounting, and legal advisory, contributing to a well-rounded leadership[143][145][147] - The Company has complied with the Corporate Governance Code except for the deviation from code provision A.2.1, as there was no chief executive officer during the year[167] - The Board consists of three executive Directors and three independent non-executive Directors, ensuring a balanced composition[186] - The Board's primary duty is to ensure the viability of the Company and manage it in the best interests of shareholders while considering other stakeholders[191] Strategic Outlook - The effective negotiation of the Sino-US trade war is expected to stabilize the commodity market and exchange rates, positively impacting the BOPP raw material market in 2019[17] - The company aims to diversify its product offerings and improve competitiveness in response to challenges in the BOPP film industry[17] - The company plans to continue exploring and developing its Cloud Platform business, which is believed to have significant growth potential[100] - The BOPP film segment has seen steady growth in customer numbers, but the Company anticipates increased competition in the market, particularly for food-related products[99] Human Resources - The Group employed approximately 317 employees as of December 31, 2018, with a total staff cost of approximately HK$56.3 million[93] - The Group's Chief Financial Officer, Mr. Cao Yang, has more than 12 years of experience in accounting and finance, enhancing the company's financial oversight[147] Risk Management - The Group faced currency risk primarily through transactions in US dollars, with no current hedging policy in place[70] - The prices of raw materials for the photovoltaic industry have fallen since early 2018, leading to reduced power generation costs and less reliance on government subsidies[97]