股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 雋思集團控股有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01412 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.01 | HKD | | 20,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.01 | HKD | | 20,000,000 | 本月底法定/註冊股本 ...

Economic Overview - In FY2024, the global economic landscape showed moderate growth, driven by resilient consumer demand and strategic fiscal policies, despite geopolitical uncertainties from the 2024 United States presidential election[15]. - The major markets, including the US and Europe, are expected to see modest economic growth in 2025 despite various risks[27]. Company Performance - Overall revenue increased by approximately 16.5% to approximately HK$1,210.9 million for FY2024[25]. - Profit attributable to equity holders increased by approximately 61.2% from approximately HK$80.1 million in FY2023 to approximately HK$128.9 million in FY2024[25]. - The Group's revenue increased from approximately HK$1,039.2 million for FY2023 to approximately HK$1,210.9 million for FY2024, representing an increase of approximately 16.5%[45]. - Adjusted profit attributable to equity holders of the Company rose by approximately 61.2% from approximately HK$80.1 million for FY2023 to approximately HK$129.1 million for FY2024[45]. - The Group's net profit margin improved from approximately 7.5% for FY2023 to approximately 10.5% for FY2024[45]. Sales and Revenue Breakdown - OEM sales rose by approximately 16.4% from approximately HK$845.8 million in FY2023 to approximately HK$984.8 million in FY2024, driven by increased demand for tabletop games and greeting cards[25]. - Web sales amounted to approximately HK$226.1 million for FY2024, representing an increase of approximately 16.9%[25]. - Revenue from OEM sales increased from approximately HK$845.8 million for FY2023 to approximately HK$984.8 million for FY2024, representing an increase of approximately 16.4%[56]. - Revenue from web sales amounted to approximately HK$226.1 million for FY2024, which represented an increase of approximately 16.9% compared to approximately HK$193.4 million for FY2023[57]. Manufacturing and Operational Developments - The full-scale operation of the newly developed Vietnam plant contributed additional production capacity, allowing the company to absorb orders from major OEM customers seeking alternative manufacturing locations[16]. - The company focused on optimizing manufacturing solutions for trading cards publishers and brands, particularly in product development and production know-how, to thrive in the high-end trading cards manufacturing market[16]. - The Vietnam plant commenced full-scale operations during the reporting period and is set to become a crucial production hub for the Group[48]. - The Group plans to strengthen its OEM solutions by innovating in product structural design and utilizing new materials[49]. - The Group aims to enhance production capacity, particularly at the newly developed Vietnam plant, to address geopolitical risks and improve efficiency[31]. Financial Management - Selling and distribution expenses increased by approximately 3.1% from approximately HK$101.6 million for FY2023 to approximately HK$104.7 million for FY2024[69]. - Administrative expenses increased by approximately 11.1%, from approximately HK$182.7 million for FY2023 to approximately HK$202.8 million for FY2024, primarily due to increased staff costs[70][74]. - Income tax expense rose by approximately 36.8%, from approximately HK$16.0 million for FY2023 to approximately HK$21.8 million for FY2024, with an effective tax rate decrease from approximately 16.9% to approximately 14.6%[76][79]. - Net cash generated from operating activities was approximately HK$204.1 million for FY2024, compared to approximately HK$112.1 million for FY2023[88]. - Total borrowings, supplier finance arrangements, and lease liabilities amounted to approximately HK$70.7 million as of 31 December 2024, up from approximately HK$50.8 million as of 31 December 2023[87]. Corporate Governance and Leadership - The Company has complied with the Corporate Governance Code during FY2024, except for the deviation from code provision C.2.1 regarding the separation of roles between the chairman and chief executive officer[166]. - The executive team has been in place since at least April 2018, indicating stability in leadership and strategic direction[119][120][123]. - The Company has established a risk management committee to oversee potential risks and ensure strategic alignment with business objectives[123]. - The Board oversees the Group's businesses, strategic decisions, and performance, ensuring effective governance and sound internal control systems[170]. - The Board consists of nine Directors, including six executive Directors and three independent non-executive Directors[178]. Strategic Initiatives - Continuous efforts will be made to implement smart operations and develop a smart operation network across the entire Group[31]. - The development of QPMN remains a key growth strategy for the Group's web sales business in the long run[49]. - The Group aims to explore market potential for products such as trading card games, board games, and tarot decks to expand revenue streams[49]. - The company successfully launched 7 crowdfunding projects on Kickstarter, significantly increasing brand exposure[22]. Executive Team Experience - The company has over 35 years of experience in the printing industry, with key executives being co-founders since its establishment in 1985[116][117]. - The executive team includes Ms. Liu Shuk Yu Sanny, responsible for strategic planning and overseeing overseas sales, with over 35 years of industry experience[119][122]. - Mr. Chan Wang Tao Thomas oversees business development and sales, bringing over 30 years of experience in the paper-based items manufacturing and printing industry[120][125]. - Mr. Mak Chin Pang is responsible for administrative and legal compliance, accounting, and corporate finance, with over 20 years of experience in these areas[123][125].

Financial Performance - For the fiscal year ending December 31, 2024, the total revenue of Q P Group Holdings Limited was approximately HKD 1,210.9 million, an increase of about 16.5% compared to the fiscal year 2023[4] - The profit attributable to equity shareholders for the fiscal year 2024 was approximately HKD 129.1 million, representing an increase of approximately 61.2% from the fiscal year 2023[4] - The basic earnings per share for the fiscal year 2024 was approximately HKD 0.2427, compared to HKD 0.1506 for the fiscal year 2023[4] - The gross profit for the fiscal year 2024 was HKD 436.2 million, compared to HKD 356.1 million in the fiscal year 2023, indicating a significant increase[5] - The operating profit for the fiscal year 2024 was HKD 145.5 million, compared to HKD 90.4 million in the fiscal year 2023[5] - The total comprehensive income for the fiscal year 2024 was HKD 106.0 million, compared to HKD 58.1 million in the fiscal year 2023[6] - Revenue for the year ended December 31, 2024, increased to HKD 1,210,937,000, up 16.5% from HKD 1,039,199,000 in 2023[18] - Gross profit for the year was HKD 436,175,000, representing a gross margin of approximately 36.0%, compared to HKD 356,092,000 and a margin of 34.3% in 2023[20] - The company reported a net profit of HKD 127,281,000 for 2024, an increase of 62.7% from HKD 78,268,000 in 2023[20] - The group's revenue for the fiscal year 2024 was approximately HKD 1,210.9 million, an increase of 16.5% from approximately HKD 1,039.2 million in fiscal year 2023[55] - OEM sales for fiscal year 2024 amounted to approximately HKD 984.8 million, up by approximately HKD 139.0 million or 16.4% from approximately HKD 845.8 million in fiscal year 2023[50] - Website sales for fiscal year 2024 reached approximately HKD 226.1 million, an increase of approximately HKD 32.7 million or 16.9% from approximately HKD 193.4 million in fiscal year 2023[50] - The group's net profit margin improved from approximately 7.5% in fiscal year 2023 to approximately 10.5% in fiscal year 2024[52] Dividends - The board of directors proposed a final dividend of HKD 0.11 per share for the fiscal year 2024, up from HKD 0.08 per share in the fiscal year 2023[4] - The interim dividend declared for the current year is HKD 0.03 per share, an increase from HKD 0.02 per share in the previous year, totaling HKD 15.96 million compared to HKD 10.64 million[34] - The board of directors has proposed a final dividend of 11.0 HKD cents per share for the year ending December 31, 2024, amounting to approximately 58.5 million HKD, pending shareholder approval[97] Assets and Liabilities - The total assets as of December 31, 2024, amounted to HKD 1,170.9 million, compared to HKD 1,090.7 million as of December 31, 2023[8] - The total equity attributable to equity shareholders was HKD 882.2 million as of December 31, 2024, compared to HKD 834.7 million as of December 31, 2023[9] - The net cash and bank balances increased to HKD 246.5 million in 2024 from HKD 160.4 million in 2023[8] - Total borrowings as of December 31, 2024, are approximately HKD 50.15 million, an increase from HKD 47.88 million in 2023, reflecting a growth of 4.3%[41] - Trade payables increased to HKD 75.23 million in 2024 from HKD 64.44 million in 2023, representing a rise of 16.7%[46] - The total borrowings, supplier financing arrangements, and lease liabilities amounted to approximately HKD 70.7 million as of December 31, 2024, compared to HKD 50.8 million a year earlier[71] - As of December 31, 2024, the company's capital debt ratio is approximately 8.0%, compared to 6.1% as of December 31, 2023[82] Operational Efficiency - The company identified two reportable segments: website sales generated HKD 226,100,000 and OEM sales generated HKD 984,837,000 in 2024[20] - The aging analysis of trade receivables shows that amounts overdue by more than 90 days decreased from HKD 23.28 million in 2023 to HKD 1.60 million in 2024, indicating improved collection efficiency[38] - The company has no impairment provisions for trade receivables for both 2024 and 2023, indicating a stable credit risk environment[38] - The company maintained a healthy current asset net value of approximately HKD 269.0 million as of December 31, 2024, up from HKD 204.3 million a year earlier[70] - Administrative expenses increased by approximately 11.1% to about HKD 202.8 million in fiscal year 2024, mainly due to rising employee costs[65] - The company reported a capital commitment of approximately HKD 59.9 million for the purchase of properties, plants, and equipment as of December 31, 2024, up from HKD 21.0 million in the previous year[74] Market and Customer Insights - Revenue from the U.S. market was HKD 772,747,000, up 11.2% from HKD 695,088,000 in 2023[21] - Major customers contributed significantly to revenue, with Customer A generating HKD 274,561,000 and Customer B generating HKD 364,360,000 in 2024[21] - The number of active registered user accounts grew by approximately 21.1% from about 64,100 on December 31, 2023, to approximately 77,600 on December 31, 2024[52] Future Plans and Developments - The Vietnam factory became a significant production site during the reporting period, with construction agreements for expansion signed in September 2024[52] - The new factory building in Vietnam is expected to commence operations in the third quarter of 2025, enhancing the group's supply chain capabilities[54] - The group plans to enhance its competitive advantage in trading card games (TCG) and collectible card production through innovation in product structure design and printing technology[54] - The group aims to improve operational efficiency and competitiveness through the expansion of smart operations across more production lines and workshops[54] Miscellaneous - The company has entered into a construction contract with an independent contractor for the construction of a factory in Vietnam at a cost of 176,600,000,000 VND (approximately 55,992,391 HKD) to enhance its supply chain capabilities[79] - The company has approximately 78.4 million HKD in right-of-use assets and approximately 63.3 million HKD in properties, plants, and equipment pledged as collateral for bank loans and supplier financing arrangements[81] - The company has maintained the required public float as per listing rules prior to the announcement date[95] - The company has not purchased, sold, or redeemed any of its listed securities during the fiscal year ending December 31, 2024[86] - The company has not disclosed any significant events affecting its operations after the fiscal year 2024[87] - The company has adopted a stock option plan to incentivize selected qualified individuals for their contributions, with no options granted under this plan as of December 31, 2024[84] - The company will suspend share transfer registration from June 3, 2025, to June 6, 2025, to determine shareholder eligibility for the annual general meeting[99] - The company will also suspend share transfer registration from June 16, 2025, to June 18, 2025, for the proposed final dividend distribution, pending shareholder approval[100] - The annual performance announcement will be published on the Hong Kong Stock Exchange and the company's website, with the annual report for the year ending December 31, 2024, to be sent to shareholders by April 30, 2025[101]

| --- | --- | --- | --- | --- | --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | 00 GroupCD 購 恩 集團 Q P Group Holdings Limited 售思集團控股有限公司 (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立的有限公司) Stock code 股份代號 : 1412 | | | | | | | 2024 INTERIM REPORT 中 期 報 告 | | | | | | | | | | | | ...

Financial Performance - Total revenue for the six months ended June 30, 2024, was approximately HKD 538.6 million, an increase of about 16.9% compared to HKD 460.7 million for the same period in 2023[1][2] - Profit attributable to equity shareholders for the six months ended June 30, 2024, was approximately HKD 54.0 million, representing an increase of about 50.9% from HKD 35.8 million in the same period of 2023[1][2] - Basic earnings per share for the six months ended June 30, 2024, was approximately HKD 0.1015, compared to HKD 0.0672 for the same period in 2023[1][2] - The company reported a total comprehensive income of HKD 34.4 million for the six months ended June 30, 2024, compared to HKD 6.6 million for the same period in 2023[3][4] - The company reported a net profit of HKD 52,675,000 for the six months ended June 30, 2024, compared to HKD 35,770,000 for the same period in 2023, representing a growth of 47.3%[16] - The company's net profit margin improved from approximately 7.8% in the first half of 2023 to approximately 9.8% in the first half of 2024[40] Dividends - The board declared an interim dividend of HKD 0.03 per share for the first six months of 2024, up from HKD 0.02 per share in the same period of 2023[1] - The company declared an interim dividend of 3.0 HKD cents per share for the reporting period, compared to 2.0 HKD cents per share for the same period in 2023, marking a 50% increase[28] - The board declared an interim dividend of HKD 0.03 per share, totaling approximately HKD 16 million for the first six months of 2024[69] - The interim dividend will be paid to shareholders listed on the register as of September 20, 2024[69] Revenue Breakdown - Sales from the website segment amounted to HKD 99,790,000, while OEM sales contributed HKD 438,840,000, indicating a strong performance in OEM sales[15] - Revenue from major customers (each contributing 10% or more of total revenue) included HKD 104,976,000 from Customer A and HKD 170,499,000 from Customer B[17] - Revenue from the United States increased to HKD 340,323,000, up from HKD 317,562,000 in the previous year, showing a growth of 7.2%[18] - OEM sales revenue rose by approximately 19.3% from about HKD 367.8 million in the first half of 2023 to about HKD 438.8 million in the first half of 2024, attributed to increased demand for tabletop game products from major OEM customers[40] - Website sales revenue increased by approximately 7.4% from about HKD 92.9 million in the first half of 2023 to about HKD 99.8 million in the first half of 2024[40] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 1,161.5 million, compared to HKD 1,090.7 million as of December 31, 2023[5] - Current assets as of June 30, 2024, were HKD 532.6 million, an increase from HKD 444.0 million as of December 31, 2023[5] - Total liabilities as of June 30, 2024, were HKD 334.9 million, compared to HKD 255.9 million as of December 31, 2023[7] - The company's borrowings increased from approximately HKD 47.879 million as of December 31, 2023, to approximately HKD 96.174 million as of June 30, 2024, representing an increase of about 101.0%[33] - Trade payables rose to approximately HKD 92.408 million as of June 30, 2024, compared to HKD 64.436 million as of December 31, 2023, an increase of about 43.4%[35] Expenses - Total costs of sales, distribution expenses, and administrative expenses amounted to 491,719,000 HKD for the six months ended June 30, 2024, compared to 441,346,000 HKD in 2023, indicating an increase of 11.4%[22] - Employee benefits expenses, including directors' remuneration, rose to 180,866,000 HKD for the six months ended June 30, 2024, compared to 161,655,000 HKD in 2023, an increase of 11.8%[22] - Sales and distribution expenses increased by approximately 6.8% to about HKD 50.3 million in the first half of 2024, up from approximately HKD 47.1 million in the same period of 2023[49] - Administrative expenses rose by approximately 9.0% to about HKD 95.2 million in the first half of 2024, compared to approximately HKD 87.4 million in the first half of 2023[50] Operational Insights - The company is currently evaluating the impact of new accounting standards on its financial performance and position[12] - Management has determined two reportable segments based on sales channels: website sales and OEM sales, with performance assessed based on gross profit metrics[15] - The company plans to enhance operational efficiency and capacity at its Vietnam facility while pursuing digitalization and smart operations initiatives[42] Employee and Staffing - The group employed a total of 3,085 staff as of June 30, 2024, an increase from 2,677 employees as of December 31, 2023[63] - Total employee costs, including directors' remuneration, were approximately HKD 180.9 million for the first half of 2024, compared to HKD 161.7 million for the same period in 2023[63] Audit and Governance - The independent auditor has reviewed the unaudited interim condensed consolidated financial information for the first six months of 2024[73] - The audit committee consists of three independent non-executive directors who reviewed the accounting principles and practices adopted by the group[72] Miscellaneous - The company has not made any impairment provisions for trade receivables as of June 30, 2024, due to the absence of significant customer defaults[31] - There have been no significant events affecting the group since the end of the first six months of 2024 up to the date of this announcement[71] - The company has not disclosed any changes in the biographies of directors since the date of the 2023 annual report[67] - The chairman of the board is Zheng Wenwei, with a team of executive and independent non-executive directors[75]

Employee and Gender Diversity - As of December 31, 2023, the Group had a total of 2,677 employees, with 1,487 males (55.5%) and 1,190 females (44.5%)[11] - The Board consists of nine Directors, including seven male Directors and two female Directors, with three independent non-executive Directors representing one third of the Board[6] - The Company does not intend to set measurable gender diversity objectives, focusing instead on equal opportunities in the recruitment process[12] - The Board is committed to promoting gender diversity at all levels, including management, and will review gender diversity in accordance with business development[6] Internal Control and Risk Management - The Company has adopted a series of internal control policies and procedures to ensure effective operations, reliable financial reporting, and compliance with applicable laws and regulations[20] - The Board conducted an annual review of the risk management and internal control systems, confirming their effectiveness and adequacy for the year ended December 31, 2023[24] - The internal audit department performs annual risk assessments and monitors key controls to ensure the internal control system functions as intended[20] - The Company has established risk management policies to identify, evaluate, and manage operational risks, with each department responsible for maintaining a comprehensive risk register[23] - The Group has adopted enhanced internal control procedures to prevent non-compliance incidents[25] - The Audit Committee receives periodic summary reports from the internal audit department regarding the effectiveness of internal controls[20] Training and Development - The percentage of employees trained in 2023 was 95.2% for males and 95.5% for females, with 73.0% for senior managers and above, 96.6% for middle management, and 95.6% for general staff[45] - Average training hours completed per employee in 2023 were 14.2 hours for males, 13.0 hours for females, 2.3 hours for senior managers and above, 8.5 hours for middle management, and 14.7 hours for general staff[46] - The Group has established a five-year target for staff development to enhance employee training and competency[40] - The Group's training programs cover various areas, including leadership, teamwork, production, and occupational safety[39] Supplier and Quality Management - The Group has a total of 496 approved suppliers, with 455 located in the PRC and 41 in other regions[54] - Suppliers are selected based on product quality, safety standards, production capacity, and compliance with environmental protection standards[51] - The Group's quality management system is certified under ISO9001:2015, covering quality assurance, quality engineering, and quality control[62] - The quality assurance team is accredited by ANSI-ASQ National Accreditation Board under ISO 17020, demonstrating technical competence in calibration and testing[62] - The Group's in-house laboratory is accredited by various international bodies, including CNAS and CPSC, ensuring compliance with international testing standards[62] Corporate Governance and Shareholder Engagement - The Company has established procedures for shareholders to propose candidates for election as directors, ensuring transparency and compliance with regulations[94] - Shareholders can submit written requisitions to the board for special meetings if they hold at least 10% of the paid-up capital[85] - The Company emphasizes the importance of corporate governance and shareholder engagement in its operations[93] - The Company has arranged appropriate Directors' and Officers' liability insurance coverage, which will be reviewed and renewed annually[183] - The Company maintains ongoing communication with shareholders to enhance investor relations and understanding of business performance[153] Environmental Commitment and Performance - The Company is committed to environmental protection and has developed energy conservation and carbon reduction policies[166] - Total greenhouse gas emissions decreased from 265.51 tonnes CO2e in 2022 to 90.29 tonnes CO2e in 2023, a reduction of approximately 66.0%[195] - Total packaging materials used for finished goods decreased from 3,099.57 tonnes in 2022 to 2,240.84 tonnes in 2023, a reduction of about 27.7%[197] - Total electricity consumption decreased from 23,345.70 MWh in 2022 to 22,288.40 MWh in 2023, a decrease of approximately 4.5%[197] - Total solid non-hazardous waste generated decreased from 7,735.91 tonnes in 2022 to 6,648.46 tonnes in 2023, a reduction of about 14.1%[195] - The Group is committed to building a "green office" and has implemented measures to reduce printing paper usage[149] Community Engagement and Social Responsibility - The Group made approximately HK$357,000 in cash donations to charitable organizations during the Reporting Period[118] - A total of 3,296 hours were dedicated to knowledge sharing and charity work by the Group during the Reporting Period[118] - The Group has set a 5-year community investment target to enhance its social contributions[119] - The Group supported the Hong Kong Red Cross for the 15th consecutive year as the main sponsor of its annual fundraising campaign[120] - The Group organized volunteer activities with an elderly center to support disadvantaged elderly individuals[129] Financial Performance and Dividends - The Group's results for the year ended 31 December 2023 are detailed in the consolidated statement of profit or loss and other comprehensive income[163] - The Board recommended a final dividend of HK8.0 cents per share, amounting to approximately HK$42.6 million for the year ended 31 December 2023[163] - The Company expects to pay dividends of not less than 30% of distributable profits each financial year[156] - The Company has adopted a dividend policy that considers operations, earnings, capital requirements, and other relevant factors before recommending dividends[156] Compliance and Legal Matters - The Company has not encountered any significant violations of applicable laws and regulations during the financial year[170] - The Group implements a zero-tolerance policy against child and forced labor, ensuring compliance with relevant laws and regulations[48] - The Group requires suppliers to obtain "Customs-Trade Partnership Against Terrorism" certification and undergo regular audits[51] - During the Reporting Period, the Group was not aware of any breaches of laws related to child and forced labor in its operations[48]

Financial Performance - For the fiscal year ending December 31, 2023, the total revenue of Q P Group Holdings Limited was approximately HKD 1,039.2 million, a decrease of about 18.6% compared to the fiscal year 2022[3]. - The net profit attributable to equity shareholders for the fiscal year 2023 was approximately HKD 80.1 million, representing a decrease of about 36.8% from the fiscal year 2022[8]. - Basic earnings per share for the fiscal year 2023 were approximately HKD 15.06, down from HKD 23.84 in the fiscal year 2022[9]. - Operating profit for the fiscal year 2023 was HKD 90.4 million, a decline from HKD 143.0 million in the previous year[4]. - The company reported a total comprehensive income of HKD 58.1 million for the fiscal year 2023, compared to HKD 71.0 million in 2022[11]. - Gross profit for the fiscal year 2023 was HKD 356.1 million, compared to HKD 416.8 million in fiscal year 2022, representing a decrease of approximately 14.5%[51]. - The net profit for the fiscal year 2023 was HKD 78.3 million, down from HKD 126.8 million in fiscal year 2022, indicating a decline of approximately 38.2%[51]. - The profit attributable to equity shareholders decreased by about 36.8% from HKD 126.8 million in FY2022 to HKD 80.1 million in FY2023, with a net profit margin dropping from approximately 9.9% to 7.5%[105]. Revenue Breakdown - Revenue from original equipment manufacturer (OEM) sales accounted for 81.4% of total revenue, while online sales contributed 18.6%[3]. - OEM sales accounted for 81.4% of total revenue in FY2023, totaling HKD 845.8 million, while website sales contributed 18.6% with HKD 193.4 million, maintaining similar levels compared to FY2022[109]. - Sales to the United States accounted for HKD 695,088,000, down 19.7% from HKD 866,131,000 in the previous year[30]. - The company's total revenue from external customers in China was HKD 540,596,000, slightly up from HKD 536,893,000 in 2022[30]. - Sales in the U.S. market accounted for 66.9% of total revenue in FY2023, totaling HKD 695.1 million, while European sales contributed 16.7% with HKD 173.9 million[110]. Expenses and Costs - Total costs, including cost of sales and administrative expenses, amounted to HKD 967,360,000, down from HKD 1,155,253,000 in 2022[35]. - Research and development expenses for 2023 were approximately HKD 28,036,000, a decrease from HKD 40,839,000 in 2022[34]. - Sales and distribution expenses decreased by approximately 8.0% from about HKD 110.4 million in FY2022 to about HKD 101.6 million in FY2023, primarily due to improved delivery strategies for online sales[144]. - Administrative expenses slightly decreased by about 1.4% from approximately HKD 185.2 million in FY2022 to about HKD 182.7 million in FY2023, remaining stable compared to the previous fiscal year[144]. - The group's sales cost decreased by approximately 20.5% from about HKD 859.6 million in FY2022 to about HKD 683.1 million in FY2023, primarily due to a reduction in procurement orders from OEM customers[112]. Assets and Liabilities - The total assets of the company as of December 31, 2023, were HKD 1,090.7 million, down from HKD 1,179.2 million in 2022[18]. - The total liabilities decreased to HKD 255.9 million in 2023 from HKD 336.4 million in 2022[7]. - The total borrowings as of December 31, 2023, were approximately HKD 47.9 million, a significant decrease from HKD 116.3 million as of December 31, 2022[73]. - The group maintained a healthy liquidity position with total borrowings and lease liabilities of approximately HKD 50.8 million as of December 31, 2023, down from approximately HKD 119.2 million as of December 31, 2022[120]. - As of December 31, 2023, net current assets were approximately HKD 204.3 million, down from about HKD 253.8 million as of December 31, 2022[147]. Dividends - The company proposed a final dividend of HKD 0.08 per share for the fiscal year 2023, compared to HKD 0.11 per share in the fiscal year 2022[9]. - The company declared an interim dividend of HKD 0.02 per share for FY2023, down from HKD 0.03 per share in FY2022, with a proposed final dividend of HKD 0.08 per share compared to HKD 0.11 per share in FY2022[90]. Operational Strategies - The company plans to enhance operational efficiency by integrating production bases and optimizing production line layouts and processes[82]. - The company aims to leverage the advantages of its new factories in Huizhou and Vietnam to strengthen its OEM business production capabilities[82]. - The group plans to enhance its e-commerce platform Q P Market Network (QPMN) and expand its product offerings to increase market share in the online sales business[134]. - The group is actively pursuing new business opportunities and diversifying its OEM operations to adapt to the challenging market environment[133]. - The group has implemented various business strategies, including digital marketing and participation in overseas exhibitions, to maintain competitiveness in the online sales sector[131]. Governance and Management - The company has adopted the corporate governance code as per the listing rules, ensuring high levels of governance and accountability[180]. - The board believes that the current arrangement of having the same individual serve as both Chairman and CEO provides strong and consistent leadership[199]. Other Key Information - The company has not adopted the revised Hong Kong Financial Reporting Standards for the reporting period ending December 31, 2023, as they are not mandatory[26]. - There have been no significant events affecting the group since the end of the fiscal year 2023[198]. - The company’s inventory write-down provision was HKD 1,433,000 in 2023, significantly lower than HKD 10,443,000 in 2022[35]. - The fair value gain from derivative financial instruments was approximately HKD 1.3 million in FY2023, compared to a loss of about HKD 19.9 million in FY2022[162]. - The total employee count as of December 31, 2023, was 2,677, an increase from 2,280 as of December 31, 2022[196]. - The total employee cost for the fiscal year 2023 was approximately HKD 343.9 million, compared to HKD 356.2 million in the fiscal year 2022[196].

智通财经APP讯，隽思集团(01412)发布公告，集团预期截至2023年12月31日止年度(2023年度)将取得公司权益持有人应占综合溢利约7700万港元至8500万港元，而截至2022年12月31日止年度(2022年度)则约为1.27亿港元。 公告称，该减幅主要归因于集团2023年度的原始设备制造商(OEM)销售收益较2022年度有所减少，此乃主要由于2023年度公司的主要市场通胀压力持续以及全球经济增长放缓，削弱消费气氛，令若干主要OEM客户对产品的需求减少。尽管集团的OEM销售收益有所下跌，集团于2023年度的网站销售收益仍维持稳定。 尽管如上所述，集团的2023年度权益持有人应占综合溢利预期将减少，基于目前状况，除非出现任何不可预见的情况，董事会对集团的财务状况仍充满信心，并已做好充分准备以应对未来的潜在挑战。此外，集团将继续致力通过业务拓展及多元化发展，以寻求可持续增长机会。 ...

Financial Performance - For the six months ended June 30, 2023, the Group recorded a net profit of approximately HKD 35.8 million, a decrease of about HKD 17.9 million or 33.3% compared to approximately HKD 53.7 million for the same period in 2022[22] - The Group's revenue decreased by approximately HKD 197.1 million or 30.0% to about HKD 460.7 million for the six months ended June 30, 2023, down from approximately HKD 657.8 million in the same period of 2022[22] - The Group's profit margin decreased from approximately 8.2% in the first half of 2022 to about 7.8% in the first half of 2023[22] - The Group recorded a net profit of approximately HK$35.8 million for the six months ended 30 June 2023, a decrease of approximately HK$17.9 million or 33.3% from HK$53.7 million for the same period in 2022[33] - Revenue decreased by approximately HK$197.1 million or 30.0%, from approximately HK$657.8 million for 6M2022 to approximately HK$460.7 million for 6M2023[33] - The Group's net profit margin decreased from approximately 8.2% for 6M2022 to approximately 7.8% for 6M2023[142] Sales Performance - OEM sales revenue fell by approximately HKD 199.0 million or 35.1% to about HKD 367.8 million in the first half of 2023, primarily due to ongoing inflationary pressures and a slowdown in global economic growth[22] - The decline in OEM sales is attributed to reduced demand from major customers due to weakened consumer sentiment[22] - Revenue from major customers, Customer A and Customer B, was HK$112,531 and HK$90,727 respectively for the first half of 2023, compared to HK$166,190 and HK$136,620 in 2022[47] - Revenue from OEM sales decreased from approximately HK$566.8 million for 6M2022 to approximately HK$367.8 million for 6M2023, representing a decrease of approximately 35.1% due to weakened consumption sentiment[64] - Website sales revenue increased by approximately HKD 1.9 million or 2.1% to about HKD 92.9 million for the six months ended June 30, 2023, compared to approximately HKD 91.0 million in the same period of 2022[22] - Web sales revenue increased by approximately HK$1.9 million or 2.1%, from approximately HK$91.0 million for 6M2022 to approximately HK$92.9 million for 6M2023[33] User Engagement - The number of active registered user accounts increased from approximately 57,100 as of December 31, 2022, to about 60,800 as of June 30, 2023[22] - The number of active registered user accounts increased from approximately 57,100 as of 31 December 2022 to approximately 60,800 as of 30 June 2023[33] Cost Management - The Group recorded a decrease in cost of sales by approximately 32.9% from approximately HK$457.4 million for 6M2022 to approximately HK$306.8 million for 6M2023[80] - The group's cost of sales decreased by approximately 32.9% from about HK$457.4 million in the first half of 2022 to about HK$306.8 million in the first half of 2023[83] - Selling and distribution expenses decreased by approximately 18.7% from about HK$58.0 million in the first half of 2022 to about HK$47.1 million in the first half of 2023[110] - Administrative expenses decreased by approximately 3.6% from about HK$90.6 million in the first half of 2022 to about HK$87.4 million in the first half of 2023[111] Investments and Future Plans - The Group plans to invest in the development of cyber security-related maintenance and consultancy services to enhance the security of its web sales platforms[36] - The Group plans to expand its high-end trading card product manufacturing business in the PRC, introducing specialized machinery for production lines[57] - The Group aims to optimize its web sales platform, Q P Market Network, and expand its presence in international markets, particularly North America[57] - The Group is exploring new business directions, including original brand manufacturing (OBM) for card game products, to capture market opportunities[57] - The Group plans to continue investing in business development projects to maintain competitive advantages and adapt to market changes[61] Corporate Governance - The company aims to achieve high standards of corporate governance to protect shareholder interests and enhance corporate value[178] - The company has adopted a code of conduct for directors' securities transactions that meets the standards set by the Model Code[180] - The company has complied with the required standards set out in the Model Code throughout the first half of 2023[163] Shareholder Information - As of June 30, 2023, Mr. Cheng Wan Wai and Mr. Yeung Keng Wu Kenneth each hold a long position of 310,353,954 shares, representing 58.34% of the company[189] - Ms. Liu Shuk Yu Sanny holds 64,706,046 shares, accounting for 12.16% of the company[189] - Mr. Chan Wang Tao Thomas has a long position of 19,950,000 shares, which is 3.75% of the company[191] - The company has not granted any rights to directors or their families to subscribe for equity or debt securities during the six months ended June 30, 2023[176] - No changes in substantial shareholders' interests were noted in the interim report[198] Financial Position - As at 30 June 2023, the Group reported net current assets of approximately HK$163.8 million, a decrease from approximately HK$253.8 million as at 31 December 2022[120] - As at 30 June 2023, the Group's cash and cash equivalents were approximately HK$184.9 million, down from approximately HK$294.7 million as at 31 December 2022, representing a decrease of approximately HK$109.8 million[120] - The total borrowings and lease liabilities amounted to approximately HK$101.7 million as at 30 June 2023, down from approximately HK$119.2 million as at 31 December 2022[121] - The Group's gearing ratio was approximately 12.9% as of June 30, 2023, compared to 14.1% as of December 31, 2022, indicating stability during the reporting period[152] Compliance and Regulations - The company maintains compliance with the Securities and Futures Ordinance regarding shareholder disclosures[198] - The company has not disclosed any new strategies or market expansions in the interim report[196] - No significant short positions in shares were reported as of June 30, 2023[194]

[Executive Summary](index=1&type=section&id=Executive%20Summary) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) QPP Holdings Limited reported a 33.3% decrease in profit to HK$35.8 million and a 30.0% decrease in total revenue to HK$460.7 million in H1 2023, with basic EPS at 6.72 HK cents H1 2023 Financial Performance Overview | Metric | H1 2023 (HK$'000) | H1 2022 (HK$'000) | Change (%) | | :-------------------------------------- | :---------------- | :---------------- | :--------- | | Profit Attributable to Equity Holders | 35,800 | 53,668 | -33.3% | | Total Revenue | 460,700 | 657,770 | -30.0% | | Basic Earnings Per Share (HK cents) | 6.72 | 10.09 | -33.4% | - In H1 2023, revenue from Original Equipment Manufacturer (OEM) sales and website sales accounted for approximately **79.8%** and **20.2%** of total revenue, respectively[12](index=12&type=chunk) [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) The Board resolved to declare an interim dividend of **2.0 HK cents** per share for H1 2023, a decrease from **3.0 HK cents** per share in the same period of 2022 Interim Dividend Declaration | Period | Dividend Per Share (HK cents) | | :----- | :---------------------------- | | H1 2023 | 2.0 | | H1 2022 | 3.0 | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) [Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2023, the Group reported revenue of **HK$460,691 thousand**, gross profit of **HK$153,884 thousand**, and profit for the period of **HK$35,770 thousand**, with both revenue and profit decreasing year-on-year Key Data from Statement of Profit or Loss (For the six months ended June 30) | Metric | 2023 (HK$'000) | 2022 (HK$'000) | | :-------------------------- | :------------- | :------------- | | Revenue | 460,691 | 657,770 | | Cost of Sales | (306,807) | (457,385) | | Gross Profit | 153,884 | 200,385 | | Operating Profit | 37,136 | 62,820 | | Profit Before Income Tax | 39,840 | 62,483 | | Income Tax Expense | (4,070) | (8,815) | | Profit for the Period | 35,770 | 53,668 | [Interim Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets decreased to **HK$1,119,121 thousand** from **HK$1,179,235 thousand** on December 31, 2022, with total equity at **HK$790,906 thousand** and total liabilities at **HK$328,215 thousand** Key Data from Statement of Financial Position (As of June 30) | Metric | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :-------------------------- | :------------- | :-------------------------- | | Total Assets | 1,119,121 | 1,179,235 | | Non-current Assets | 636,193 | 599,016 | | Current Assets | 482,928 | 580,219 | | Total Equity | 790,906 | 842,841 | | Total Liabilities | 328,215 | 336,394 | | Non-current Liabilities | 9,131 | 9,993 | | Current Liabilities | 319,084 | 326,401 | [Notes to the Interim Condensed Consolidated Financial Information](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) [General Information and Basis of Preparation](index=5&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The Company, incorporated in the Cayman Islands, primarily engages in paper product manufacturing and trading, with interim condensed consolidated financial information prepared in HKD under HKAS 34 and Listing Rules, applying consistent accounting policies with no significant impact from new standards - The Company is incorporated in the Cayman Islands, and its subsidiaries are primarily engaged in the manufacturing and trading of paper products[7](index=7&type=chunk)[19](index=19&type=chunk) - The interim condensed consolidated financial information is prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' issued by the HKICPA and the applicable disclosure requirements of Appendix 16 to the Listing Rules of The Stock Exchange of Hong Kong Limited[8](index=8&type=chunk) - The adoption of new and revised standards has no significant impact on the Group's results and financial position, requiring no retrospective adjustments[10](index=10&type=chunk) [Significant Accounting Policies and Estimates](index=5&type=section&id=Significant%20Accounting%20Policies%20and%20Estimates) The Group's accounting policies are consistent with the prior year, adopting new standards effective January 1, 2023, with no significant financial impact, while management's judgments, estimates, and assumptions in preparing financial information may lead to different actual results - The accounting policies adopted are consistent with those applied in the annual financial statements for the year ended December 31, 2022[9](index=9&type=chunk) - Management is required to make judgments, estimates, and assumptions in preparing the interim condensed consolidated financial information, which affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses[23](index=23&type=chunk) New and Revised Standards Issued But Not Yet Effective | Standard | Content | Effective Date | | :--------------------------------------------------------------------- | :-------------------------------------------------------------------- | :------------- | | HKAS 1 (Amendments) | Classification of Liabilities as Current or Non-current | January 1, 2024 | | HKAS 1 (Amendments) | Non-current Liabilities with Covenants | January 1, 2024 | | HKFRS 16 (Amendments) | Lease Liability in a Sale and Leaseback | January 1, 2024 | | HK(IFRIC)-Int 5 (Revised) | Presentation of Financial Statements — Classification by a Borrower of a Term Loan with a Repayment on Demand Clause | January 1, 2024 | | HKFRS 7 (Amendments) and HKAS 7 (Amendments) | Supplier Finance Arrangements (Amendments) | January 1, 2024 | | HKFRS 10 and HKAS 28 (Amendments) | Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | To be determined | [Revenue and Segment Information](index=7&type=section&id=Revenue%20and%20Segment%20Information) The Group's revenue primarily from paper and other product sales is segmented into website and OEM sales, with total revenue of **HK$460,691 thousand** in H1 2023, a decrease from the prior year, where OEM sales, though largest, declined, while website sales remained stable - Management has identified two reportable segments based on sales channels: (i) website sales; and (ii) OEM sales[27](index=27&type=chunk) Revenue by Business Segment (For the six months ended June 30) | Segment | 2023 (HK$'000) | 2022 (HK$'000) | | :----------- | :------------- | :------------- | | Website Sales | 92,904 | 91,016 | | OEM Sales | 367,787 | 566,754 | | Total | 460,691 | 657,770 | Revenue from Major Customers (For the six months ended June 30) | Customer | 2023 (HK$'000) | 2022 (HK$'000) | | :------- | :------------- | :------------- | | Customer A | 112,531 | 166,190 | | Customer B | 90,727 | 136,620 | [Geographical Information](index=10&type=section&id=Geographical%20Information) The Group's revenue primarily originates from the US and European markets, collectively accounting for **84.0%** in H1 2023, with both regions experiencing decreased revenue mainly due to reduced demand from key OEM customers Revenue from External Customers by Location (For the six months ended June 30) | Location | 2023 (HK$'000) | 2022 (HK$'000) | | :------- | :------------- | :------------- | | US | 317,562 | 452,514 | | Europe | 69,450 | 119,228 | | China | 30,425 | 36,750 | | Others | 43,254 | 49,278 | | Total | 460,691 | 657,770 | Location of Non-current Assets (As of June 30) | Location | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :------- | :------------- | :-------------------------- | | China | 535,382 | 536,893 | | Vietnam | 89,293 | 50,364 | | Total | 624,675 | 587,257 | [Other Net Income and Other Income](index=10&type=section&id=Other%20Net%20Income%20and%20Other%20Income) In H1 2023, other net income significantly increased to **HK$12,731 thousand**, driven by exchange gains and fair value gains on derivative financial instruments, while other income decreased to **HK$5,060 thousand** due to reduced scrap sales and government grants Other Net Income (For the six months ended June 30) | Item | 2023 (HK$'000) | 2022 (HK$'000) | | :------------------------------------------ | :------------- | :------------- | | Exchange Gain | 11,175 | 11,501 | | Fair Value Gain/(Loss) on Derivative Financial Instruments | 1,343 | (10,740) | | Gain on Disposal of Property, Plant and Equipment | 213 | 6 | | Total | 12,731 | 767 | Other Income (For the six months ended June 30) | Item | 2023 (HK$'000) | 2022 (HK$'000) | | :-------------- | :------------- | :------------- | | Rental Income | 25 | 25 | | Scrap Sales | 2,908 | 5,949 | | Government Grants | 2,018 | 4,127 | | Others | 109 | 210 | | Total | 5,060 | 10,311 | [Expenses by Nature](index=11&type=section&id=Expenses%20by%20Nature) In H1 2023, total cost of sales, selling and distribution expenses, and administrative expenses decreased to **HK$441,346 thousand** year-on-year, with key expense items including raw materials, employee benefits, and subcontracting fees Total Expenses by Nature (For the six months ended June 30) | Item | 2023 (HK$'000) | 2022 (HK$'000) | | :---------------------------------------------------------------- | :------------- | :------------- | | Raw Materials and Consumables Used | 137,503 | 227,547 | | Employee Benefit Expenses (including directors' emoluments) | 161,655 | 178,455 | | Subcontracting Fees | 43,306 | 65,461 | | Depreciation of Property, Plant and Equipment | 25,541 | 27,149 | | Transportation Costs | 19,393 | 31,040 | | Total Cost of Sales, Selling and Distribution Expenses, and Administrative Expenses | 441,346 | 606,028 | [Net Finance Income/(Costs)](index=12&type=section&id=Net%20Finance%20Income%2F%28Costs%29) In H1 2023, the Group recorded net finance income of **HK$2,704 thousand**, compared to net finance costs of **HK$337 thousand** in the prior year, primarily driven by increased bank interest income Net Finance Income/(Costs) (For the six months ended June 30) | Item | 2023 (HK$'000) | 2022 (HK$'000) | | :---------------------------- | :------------- | :------------- | | Bank Interest Income | 4,947 | 270 | | Interest Expense on Bank Borrowings | (2,217) | (565) | | Interest Expense on Lease Liabilities | (26) | (42) | | Net Finance Income/(Costs) | 2,704 | (337) | [Income Tax Expense](index=12&type=section&id=Income%20Tax%20Expense) Income tax expense decreased to **HK$4,070 thousand** in H1 2023, reflecting varied tax rates and preferential policies for the Group's subsidiaries in China, Hong Kong, and Vietnam, including corporate income tax, small-profit enterprise rates, high-tech enterprise rates, and tax holidays/reductions Income Tax Expense (For the six months ended June 30) | Item | 2023 (HK$'000) | 2022 (HK$'000) | | :------------------ | :------------- | :------------- | | Current Income Tax | 7,975 | 8,915 | | Deferred Income Tax | (3,905) | (100) | | Total | 4,070 | 8,815 | - Subsidiaries established and operating in China are subject to China Corporate Income Tax at a rate of **25%**, with certain entities qualifying as small-profit enterprises enjoying a preferential tax rate of **5.0%**[34](index=34&type=chunk)[35](index=35&type=chunk) - Dongguan QPP Printing Co., Ltd and Tengda Printing (Heshan) Co., Ltd are certified as High and New Technology Enterprises, enjoying a preferential tax rate of **15%**[62](index=62&type=chunk) - The Vietnamese subsidiary, Q P Enterprise (Vietnam) Company Limited, benefits from tax holidays and tax rate reductions[63](index=63&type=chunk) [Earnings Per Share Attributable to Equity Holders of the Company](index=14&type=section&id=Earnings%20Per%20Share) Basic earnings per share for H1 2023 decreased to **6.72 HK cents** from **10.09 HK cents** in the prior year, primarily due to a reduction in profit attributable to equity holders of the Company Earnings Per Share Calculation (For the six months ended June 30) | Metric | 2023 (HK$'000/Shares '000/HK cents) | 2022 (HK$'000/Shares '000/HK cents) | | :-------------------------------------- | :---------------------------------- | :---------------------------------- | | Profit Attributable to Equity Holders | 35,770 | 53,668 | | Weighted Average Number of Ordinary Shares | 532,000 | 532,000 | | Earnings Per Share (HK cents per share) | 6.72 | 10.09 | - The Group had no potentially dilutive ordinary shares in issue for the six months ended June 30, 2023 and 2022[38](index=38&type=chunk) [Dividends](index=15&type=section&id=Dividends) The Board declared an interim dividend of **2.0 HK cents** per ordinary share for H1 2023, totaling **HK$10,640 thousand**, in addition to the final dividend of **11.0 HK cents** per ordinary share, totaling **HK$58,520 thousand**, approved and paid for the previous financial year Dividend Declaration and Payment (For the six months ended June 30) | Dividend Type | Dividend Per Share (HK cents) | 2023 (HK$'000) | 2022 (HK$'000) | | :-------------------- | :---------------------------- | :------------- | :------------- | | Interim Dividend | 2.0 | 10,640 | 15,960 | | Final Dividend for Previous Financial Year | 11.0 | 58,520 | 58,520 | - The interim dividend declared after the end of the reporting period was not recognized as a liability at the end of the reporting period[66](index=66&type=chunk) [Property, Plant and Equipment](index=15&type=section&id=Property%2C%20Plant%20and%20Equipment) In H1 2023, the Group's total cost of additions to property, plant, and equipment significantly increased to approximately **HK$58,104 thousand**, while the net book value of disposals was approximately **HK$380 thousand** Changes in Property, Plant and Equipment (For the six months ended June 30) | Item | 2023 (HK$'000) | 2022 (HK$'000) | | :-------------------- | :------------- | :------------- | | Total Cost of Additions | 58,104 | 23,787 | | Net Book Value of Disposals | 380 | 88 | [Trade and Other Receivables](index=16&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2023, trade receivables increased to **HK$156,123 thousand** from December 31, 2022, with credit terms typically 30 to 90 days, no impairment provision made, and primarily denominated in USD and HKD Trade Receivables (As of June 30) | Metric | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :---------------------- | :------------- | :-------------------------- | | Total Trade Receivables | 156,123 | 144,432 | Aging Analysis of Trade Receivables (As of June 30) | Aging | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :----------- | :------------- | :-------------------------- | | Within 30 days | 73,852 | 63,648 | | 31 to 60 days | 60,414 | 54,291 | | 61 to 90 days | 21,825 | 23,150 | | Over 90 days | 32 | 3,343 | Trade Receivables by Currency (As of June 30) | Currency | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :------- | :------------- | :-------------------------- | | USD | 89,918 | 89,535 | | HKD | 63,031 | 51,128 | | RMB | 2,966 | 3,712 | | Others | 208 | 57 | [Borrowings](index=17&type=section&id=Borrowings) As of June 30, 2023, total bank borrowings decreased to **HK$99,781 thousand** from December 31, 2022, primarily denominated in HKD, bearing floating interest rates, and secured by right-of-use assets and property, plant, and equipment Bank Borrowings (As of June 30) | Metric | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :------------------ | :------------- | :-------------------------- | | Total Bank Borrowings | 99,781 | 116,319 | Borrowings Repayment Period (As of June 30) | Repayment Period | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :--------------- | :------------- | :-------------------------- | | Within one year | 68,721 | 73,043 | | One to two years | 13,252 | 19,506 | | Two to five years | 11,204 | 16,793 | | Over five years | 6,604 | 6,977 | Assets Pledged for Borrowings (As of June 30) | Asset | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :------------------------ | :------------- | :-------------------------- | | Right-of-use Assets | 81,130 | 82,025 | | Property, Plant and Equipment | 71,345 | 73,162 | | Total | 152,475 | 155,187 | [Trade Payables](index=19&type=section&id=Trade%20Payables) As of June 30, 2023, trade payables increased to **HK$82,257 thousand** from December 31, 2022, with the majority denominated in RMB Trade Payables (As of June 30) | Metric | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :---------------------- | :------------- | :-------------------------- | | Total Trade Payables | 82,257 | 68,159 | Aging Analysis of Trade Payables (As of June 30) | Aging | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :----------- | :------------- | :-------------------------- | | Within 30 days | 63,571 | 49,112 | | 31 to 60 days | 9,051 | 12,476 | | 61 to 90 days | 3,730 | 3,671 | | Over 90 days | 5,905 | 2,900 | Trade Payables by Currency (As of June 30) | Currency | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :------- | :------------- | :-------------------------- | | RMB | 63,468 | 54,167 | | HKD | 10,990 | 11,785 | | USD | 7,102 | 1,754 | | Others | 697 | 453 | [Share Capital](index=21&type=section&id=Share%20Capital) As of June 30, 2023, the Company's authorized share capital remained at **2,000,000,000 shares**, with issued and fully paid share capital at **532,000,000 shares**, amounting to **HK$5,320 thousand**, unchanged from December 31, 2022 Share Capital Structure (As of June 30) | Share Capital Type | 2023 Number of Shares | December 31, 2022 Number of Shares | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :------------------------ | :-------------------- | :--------------------------------- | :------------- | :-------------------------- | | Authorized Share Capital | 2,000,000,000 | 2,000,000,000 | 20,000 | 20,000 | | Issued and Fully Paid Share Capital | 532,000,000 | 532,000,000 | 5,320 | 5,320 | [Management Discussion and Analysis](index=22&type=section&id=Management%20Discussion%20and%20Analysis) [Company Profile](index=22&type=section&id=Company%20Profile) Established in 1985, QPP Group is a paper product manufacturing and printing service provider headquartered in Hong Kong with production facilities in China and Vietnam, offering products like board games, greeting cards, educational items, and packaging boxes to OEM clients and individual/corporate customers via online channels - The Group was established in **1985** as a paper product manufacturing and printing service provider, offering diverse customized product and printing solutions to customers[80](index=80&type=chunk) - Our headquarters are located in Hong Kong, with production facilities in Dongguan City and Heshan City, Guangdong Province, China, and Phu Ly City, Ha Nam Province, Vietnam[80](index=80&type=chunk) - Our main product categories include board games, greeting cards, early childhood education products, and packaging color boxes, sold to (i) OEM customers who place large orders for direct sales and distribution through their channels; and (ii) individual and corporate customers ordering through online sales channels[80](index=80&type=chunk) [Business Review](index=22&type=section&id=Business%20Review) In H1 2023, amidst global economic slowdown, inflation, and geopolitical conflicts impacting consumer sentiment, the Group actively promoted OEM and website sales through exhibitions and digital marketing, with the Vietnam plant completed in July 2023 and expected to commence production in Q3, and the Heshan plant expansion due for completion in December 2023 to enhance capacity and operational efficiency - Global economic growth continues to slow, with high inflation leading some consumers to reduce daily spending, impacting the retail market[129](index=129&type=chunk) - During the reporting period, the Group actively promoted its OEM and website sales businesses, including participating in various domestic and international trade exhibitions, strengthening digital marketing to reach potential customers, and investing resources in developing new product lines with market potential[129](index=129&type=chunk) - Construction of the Vietnam plant was completed in **July 2023**, with interior decoration and equipment installation underway, expected to commence formal production in **Q3 2023**; the new factory building at the Heshan plant, aimed at enhancing the Group's production capacity and overall operational efficiency, is expected to be completed in **December 2023**[129](index=129&type=chunk) [Financial Review](index=25&type=section&id=Financial%20Review) In H1 2023, the Group's revenue decreased by **30.0%** to **HK$460.7 million**, primarily due to reduced OEM sales, while gross profit decreased by **23.2%** to **HK$153.9 million**, but gross margin improved from **30.5%** to **33.4%**, and profit for the period decreased by **33.3%** to **HK$35.8 million** Financial Performance Overview (For the six months ended June 30) | Metric | 2023 (HK$'000) | 2022 (HK$'000) | Change (%) | | :---------- | :------------- | :------------- | :--------- | | Revenue | 460,691 | 657,770 | -30.0% | | Gross Profit | 153,884 | 200,385 | -23.2% | | Gross Margin | 33.4% | 30.5% | +2.9pp | | Profit for the Period | 35,770 | 53,668 | -33.3% | | Net Margin | 7.8% | 8.2% | -0.4pp | [Revenue Breakdown](index=25&type=section&id=Revenue%20Breakdown) OEM sales revenue decreased by **35.1%** to **HK$367.8 million**, primarily impacted by inflation and global economic slowdown, while website sales revenue saw a stable **2.1%** increase to **HK$92.9 million** Revenue by Business Segment (For the six months ended June 30) | Segment | 2023 (HK$'000) | Share (%) | 2022 (HK$'000) | Share (%) | | :----------- | :------------- | :-------- | :------------- | :-------- | | OEM Sales | 367,787 | 79.8 | 566,754 | 86.2 | | Website Sales | 92,904 | 20.2 | 91,016 | 13.8 | | Total | 460,691 | 100.0 | 657,770 | 100.0 | - OEM sales revenue decreased by **35.1%**, primarily due to persistent inflationary pressures and a slowdown in global economic growth, which dampened consumer sentiment and reduced demand from key OEM customers for the Group's products[136](index=136&type=chunk) - Website sales revenue increased by approximately **2.1%** from approximately **HK$91.0 million** in the first six months of 2022 to approximately **HK$92.9 million** in the first six months of 2023[109](index=109&type=chunk) [Cost of Sales](index=26&type=section&id=Cost%20of%20Sales) Cost of sales decreased by **32.9%** to **HK$306.8 million**, primarily due to reduced production volume resulting from lower demand for OEM products Cost of Sales (For the six months ended June 30) | Metric | 2023 (HK$'000) | 2022 (HK$'000) | Change (%) | | :---------- | :------------- | :------------- | :--------- | | Cost of Sales | 306,807 | 457,385 | -32.9% | - The decrease in cost of sales was primarily due to reduced production volume resulting from lower demand for our OEM products during the reporting period[111](index=111&type=chunk) [Gross Profit and Gross Margin](index=27&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Gross profit decreased by **23.2%** to **HK$153.9 million**, but gross margin increased by **2.9 percentage points** to **33.4%**, primarily driven by a higher proportion of website sales revenue and RMB depreciation against HKD, partially offset by reduced economies of scale from lower sales volume Gross Profit and Gross Margin (For the six months ended June 30) | Metric | 2023 (HK$'000) | 2022 (HK$'000) | Change (%) | | :---------- | :------------- | :------------- | :--------- | | Gross Profit | 153,884 | 200,385 | -23.2% | | Gross Margin | 33.4% | 30.5% | +2.9pp | - The increase in gross margin was mainly attributable to a higher proportion of revenue from website sales and the depreciation of RMB against HKD, although this positive impact was partially offset by reduced economies of scale due to lower sales volume during the reporting period[139](index=139&type=chunk) [Other Net Income and Other Income Analysis](index=27&type=section&id=Other%20Net%20Income%20and%20Other%20Income%20Analysis) The increase in other net income was primarily due to RMB depreciation against HKD and fair value gains on derivative financial instruments, while the decrease in other income was mainly due to reduced scrap sales and government grants - The increase in other net income was mainly due to the depreciation of RMB against HKD, and the Group did not enter into forward foreign currency contracts to hedge against the risk of RMB appreciation against USD during the reporting period[139](index=139&type=chunk) - The decrease in other income was mainly due to reduced scrap sales and lower government grants received from China (including Hong Kong)[140](index=140&type=chunk) [Operating Expenses](index=27&type=section&id=Operating%20Expenses) Selling and distribution expenses decreased by **18.7%** to **HK$47.1 million**, primarily due to lower freight costs, while administrative expenses remained stable, decreasing by **3.6%** to **HK$87.4 million** Operating Expenses (For the six months ended June 30) | Item | 2023 (HK$'000) | 2022 (HK$'000) | Change (%) | | :------------------------ | :------------- | :------------- | :--------- | | Selling and Distribution Expenses | 47,147 | 58,018 | -18.7% | | Administrative Expenses | 87,392 | 90,625 | -3.6% | - The decrease in selling and distribution expenses was mainly due to lower freight costs and the implementation of related improvement strategies during the reporting period[140](index=140&type=chunk) [Net Finance Income and Income Tax Expense](index=28&type=section&id=Net%20Finance%20Income%20and%20Income%20Tax%20Expense) The Group recorded net finance income of **HK$2.7 million** in H1 2023, compared to net finance costs in the prior year, driven by higher surplus cash levels and rising interest rates, while income tax expense decreased by **53.8%** to **HK$4.1 million** due to lower recognized profit - The Group recognized net finance income of approximately **HK$2.7 million** in the first six months of 2023, compared to net finance costs of approximately **HK$0.3 million** in the first six months of 2022, attributable to higher surplus cash levels placed in time deposits and debt instruments, and continuously rising interest rates since 2022[170](index=170&type=chunk) - The decrease in income tax expense was primarily due to lower recognized profit during the reporting period[117](index=117&type=chunk) [Liquidity and Financial Resources](index=28&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2023, the Group's net current assets were approximately **HK$163.8 million** and cash and cash equivalents were approximately **HK$184.9 million**, both lower than December 31, 2022, while maintaining a healthy liquidity position and prudent cash and financial management policies Liquidity Position (As of June 30) | Metric | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :---------------------- | :------------- | :-------------------------- | | Net Current Assets | 163,800 | 253,800 | | Cash and Cash Equivalents | 184,900 | 294,700 | - The Group maintained a healthy liquidity position in the first six months of 2023, with working capital primarily funded by internal resources, and adopted prudent cash and financial management policies[172](index=172&type=chunk) - As of June 30, 2023, the Group's total borrowings and lease liabilities amounted to approximately **HK$101.7 million** (December 31, 2022: approximately **HK$119.2 million**)[173](index=173&type=chunk) [Contingent Liabilities](index=29&type=section&id=Contingent%20Liabilities) As of June 30, 2023, the Group had no significant contingent liabilities - As of June 30, 2023, the Group had no significant contingent liabilities (December 31, 2022: Nil)[120](index=120&type=chunk) [Foreign Exchange Rate Risk and Related Hedging](index=29&type=section&id=Foreign%20Exchange%20Rate%20Risk%20and%20Related%20Hedging) The Group faces foreign currency risk primarily from revenue, production costs, and operating expenses denominated in non-HKD currencies, managing this risk by closely monitoring exchange rate fluctuations and using financial instruments for hedging when necessary, without adopting a formal hedging accounting policy - The Group is exposed to foreign currency risk primarily because its revenue, production costs, and operating expenses are denominated in currencies other than HKD[121](index=121&type=chunk) - The Group has established policies to manage foreign currency risk by closely monitoring exchange rate movements and utilizing financial instruments for hedging when necessary, without adopting a formal hedging accounting policy[175](index=175&type=chunk) - In the first six months of 2023, fair value gain on derivative financial instruments was approximately **HK$1.3 million** (first six months of 2022: fair value loss of approximately **HK$10.7 million**)[147](index=147&type=chunk) [Capital Commitments](index=29&type=section&id=Capital%20Commitments) As of June 30, 2023, the Group's capital commitments for the acquisition of property, plant, and equipment amounted to approximately **HK$46.2 million**, a slight increase from December 31, 2022 Capital Commitments (As of June 30) | Item | 2023 (HK$'000) | December 31, 2022 (HK$'000) | | :------------------------------ | :------------- | :-------------------------- | | Acquisition of Property, Plant and Equipment | 46,200 | 45,000 | [Significant Acquisitions or Disposals of Subsidiaries, Associates, and Joint Ventures](index=30&type=section&id=Significant%20Acquisitions%20or%20Disposals) In H1 2023, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - In the first six months of 2023, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[148](index=148&type=chunk) [Future Plans for Material Investments and Capital Assets](index=30&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) Beyond what is disclosed in this announcement, the Group currently has no other plans for material investments or capital assets and held no significant investments in H1 2023 - Save as disclosed in this announcement, as of the date of this announcement, the Group has no other plans regarding material investments or capital assets[149](index=149&type=chunk) - The Group did not hold any material investments in the first six months of 2023[150](index=150&type=chunk) [Employees and Remuneration Policy](index=30&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2023, the Group had **2,434 employees** with total staff costs of approximately **HK$161.7 million**, and its remuneration policy is regularly reviewed based on market conditions and individual performance, including basic salary, directors' emoluments, pension scheme contributions, and discretionary bonuses Employee and Remuneration Data (As of June 30) | Metric | 2023 | December 31, 2022 | | :---------- | :---- | :---------------- | | Total Employees | 2,434 | 2,280 | Total Staff Costs (For the six months ended June 30) | Item | 2023 (HK$'000) | 2022 (HK$'000) | | :-------------- | :------------- | :------------- | | Total Staff Costs | 161,700 | 178,500 | - The Company's remuneration policy is regularly reviewed primarily with reference to market conditions and the performance of the Company and individual employees (including directors), with remuneration packages including (where applicable) basic salary, directors' emoluments, contributions to pension schemes, and discretionary bonuses linked to the Group's financial performance and individual performance[178](index=178&type=chunk) [Future Outlook](index=23&type=section&id=Future%20Outlook) Facing manufacturing market challenges, the Group will steadfastly execute strategic deployments, including expanding into high-end collectible card product manufacturing, extending the QPMN e-commerce platform internationally, optimizing production base positioning with Dongguan as an R&D center and Heshan/Vietnam focusing on OEM services to mitigate geopolitical risks and enhance competitiveness, and exploring Own Brand Manufacturing (OBM) card products and cybersecurity services for business diversification - The Group will intensify efforts to develop the production business for high-end collectible card products, having introduced specialized production equipment, and the sales team is actively increasing exposure in the domestic Chinese market[104](index=104&type=chunk) - The Group will continue to focus on developing its e-commerce platform, Q P Market Network (QPMN), and is committed to expanding QPMN into international markets, including allocating human resources for business promotion in North America and participating in major exhibitions worldwide[105](index=105&type=chunk) - In the long term, the Dongguan plant will strengthen its role and capabilities as a product engineering, research and development, and digital production center, while the Heshan and Vietnam plants will focus on providing end-to-end OEM services to enhance the geographical advantages of the supply chain[106](index=106&type=chunk) - The Group intends to explore Own Brand Manufacturing (OBM) business for related products and plans to invest resources in developing cybersecurity-related maintenance and consulting services to increase its business diversity[132](index=132&type=chunk) [Other Information](index=31&type=section&id=Other%20Information) [Corporate Governance Practices](index=31&type=section&id=Corporate%20Governance%20Practices) The Company has adopted the principles and code provisions of the Corporate Governance Code in Appendix 14 of the Listing Rules; despite the Chairman and CEO being the same person, deviating from Code Provision C.2.1, the Board believes this arrangement provides strong and consistent leadership with sufficient safeguards for power balance - The Company has adopted the principles and code provisions of the Corporate Governance Code (the 'CG Code') set out in Appendix 14 to the Listing Rules as its own corporate governance code[153](index=153&type=chunk) - Mr. Cheng Wan Wai currently holds both the positions of Chairman of the Board and Chief Executive Officer of the Company, which deviates from Code Provision C.2.1 of the CG Code; the Board believes this arrangement provides strong and consistent leadership for the Group and facilitates effective execution of business strategies[180](index=180&type=chunk) [Standard Code for Securities Transactions](index=32&type=section&id=Standard%20Code%20for%20Securities%20Transactions) The Company has adopted a code of conduct for directors' securities transactions, with terms no less exacting than the Standard Code in Appendix 10 of the Listing Rules, and all directors confirmed compliance throughout H1 2023 - The Company has adopted a code of conduct regarding securities transactions by directors on terms no less exacting than the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules[155](index=155&type=chunk) - All Directors confirmed that they have complied with the required standards set out in the adopted Standard Code throughout the six months ended June 30, 2023[181](index=181&type=chunk) [Share Option Scheme](index=32&type=section&id=Share%20Option%20Scheme) The Company adopted a Share Option Scheme on December 20, 2019, to incentivize eligible individuals, but no share options have been granted to any directors, eligible employees, or other third parties under the scheme from its adoption date up to June 30, 2023 - On December 20, 2019, the Company adopted a Share Option Scheme to provide incentives or rewards to selected eligible persons for their contributions to the Group[181](index=181&type=chunk) - No share options have been granted under the Share Option Scheme to any directors, eligible employees, or other third parties from the date of its adoption up to June 30, 2023[157](index=157&type=chunk) [Use of Proceeds](index=32&type=section&id=Use%20of%20Proceeds) The Company listed on January 16, 2020, with net proceeds of approximately **HK$111.9 million**; as of June 30, 2023, approximately **HK$108.05 million** has been utilized, with **HK$3.8 million** remaining, primarily for enhancing production capacity and operational flexibility - The Company's shares were listed on the Main Board of the Stock Exchange on **January 16, 2020**, with actual net proceeds of approximately **HK$111.9 million**[157](index=157&type=chunk) Use of Net Proceeds from Listing (As of June 30, 2023) | Purpose | Actual Net Proceeds (HK$'000) | Actual Use of Net Proceeds (HK$'000) | Unutilized Net Proceeds (HK$'000) | Expected Timeline | | :------------------------------------------------ | :---------------------------- | :----------------------------------- | :-------------------------------- | :---------------- | | Enhance the Group's production capacity and operational flexibility | 58,726 | (54,918) | 3,808 | Before December 31, 2023 | | Optimize the Group's product portfolio and production expertise | 27,964 | (27,964) | — | N/A | | Enhance the Group's technological capabilities and upgrade IT infrastructure | 13,087 | (13,087) | — | N/A | | Working capital and other general corporate purposes | 12,081 | (12,081) | — | N/A | | Total | 111,858 | (108,050) | 3,808 | | - As of June 30, 2023, the Company had unutilized net proceeds from the listing of approximately **HK$3.8 million**[184](index=184&type=chunk) [Changes in Directors' Information](index=34&type=section&id=Changes%20in%20Directors'%20Information) Several directors received new appointments or honors during the reporting period, including Independent Non-executive Directors Mr. Chan Hiu Fung, Mr. Ng Sung, Professor Cheng Man Chung, and Chairman and Executive Director Mr. Cheng Wan Wai, with no other disclosable changes to directors' biographical details beyond those disclosed - Independent Non-executive Director Mr. Chan Hiu Fung was appointed as a member of the Social Development Expert Group under the Chief Executive's Policy Unit Expert Group and Chairman of the 'Innovation and Technology Venture Fund' Advisory Committee[160](index=160&type=chunk)[187](index=187&type=chunk) - Independent Non-executive Director Mr. Ng Sung was appointed as Chairman of the Executive Committee of the Hong Kong Owners Association[161](index=161&type=chunk) - Independent Non-executive Director Professor Cheng Man Chung was appointed as a member of the Carbon Neutrality and Sustainable Development Committee[186](index=186&type=chunk) - Mr. Cheng Wan Wai, Chairman and Executive Director of the Company, was awarded the Medal of Honour by the Government of the Hong Kong Special Administrative Region[195](index=195&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=34&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) In H1 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - In the first six months of 2023, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[196](index=196&type=chunk) [Interim Dividend](index=34&type=section&id=Interim%20Dividend) The Board resolved to declare an interim dividend of **2.0 HK cents** per ordinary share for H1 2023, payable on or about **October 11, 2023**, to shareholders registered on **September 22, 2023** - The Board resolved to declare an interim dividend of **2.0 HK cents** per ordinary share for the first six months of 2023, totaling approximately **HK$10.6 million**[163](index=163&type=chunk) - The interim dividend will be paid on or about **Wednesday, October 11, 2023**, to shareholders whose names appear on the register of members of the Company at the close of business on **Friday, September 22, 2023**[163](index=163&type=chunk) [Closure of Register of Members](index=35&type=section&id=Closure%20of%20Register%20of%20Members) To determine eligibility for the interim dividend, the Company will suspend its register of members from **September 20, 2023**, to **September 22, 2023**, inclusive - To determine the entitlement to the interim dividend, the Company's register of members will be closed from **Wednesday, September 20, 2023**, to **Friday, September 22, 2023**, both days inclusive[164](index=164&type=chunk) [Events After the Reporting Period](index=35&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events affecting the Group occurred after the end of H1 2023 and up to the date of this announcement - No significant events affecting the Group occurred after the first six months of 2023 and up to the date of this announcement[191](index=191&type=chunk) [Review by Independent Auditor of Unaudited Interim Condensed Consolidated Financial Information](index=35&type=section&id=Review%20by%20Independent%20Auditor) The Company's Audit Committee, with management, reviewed the Group's accounting principles and practices, and discussed audit and financial reporting matters, while independent auditor PricewaterhouseCoopers reviewed the unaudited interim condensed consolidated financial information in accordance with HKSRS 2410 - The Company's Audit Committee, together with management, has reviewed the accounting principles and practices adopted by the Group and discussed audit and financial reporting matters, including the review of the Group's unaudited interim condensed consolidated financial statements for the first six months of 2023[198](index=198&type=chunk) - The Company's independent auditor, PricewaterhouseCoopers, has reviewed the unaudited interim condensed consolidated financial information in accordance with Hong Kong Standard on Review Engagements 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the HKICPA[166](index=166&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=36&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) The H1 2023 interim results announcement will be published on the Stock Exchange and Company websites, and the interim report will be dispatched to shareholders and published on the aforementioned websites in due course - The interim results announcement for the first six months of 2023 will be published on the website of the Stock Exchange (www.hkexnews.hk) and the Company's website (www.qpp.com) in accordance with the Listing Rules[167](index=167&type=chunk) - The interim report for the first six months of 2023, containing all information required by the Listing Rules, will be dispatched to shareholders and published on the aforementioned websites in due course[167](index=167&type=chunk)