[Financial Summary](index=1&type=section&id=Financial%20Summary) Junqiu Holdings Limited reported HK$50.5 million revenue, a 10.6% increase, but loss attributable to owners slightly widened to HK$5.7 million due to lower gross profit 2024 H1 Financial Summary | Indicator | 2024 H1 (HK$ million) | 2023 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 50.5 | 45.6 | 10.6% | | Loss attributable to owners | (5.7) | (5.5) | 3.6% (Loss expanded) | | Basic loss per share (HK cents) | (0.56) | (0.54) | 3.7% (Loss expanded) | - The increase in loss after tax was primarily due to a decrease in gross profit, partially offset by increased bank interest income and net exchange gains[2](index=2&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2024[2](index=2&type=chunk) [Management Discussion and Analysis](index=2&type=section&id=Management%20Discussion%20and%20Analysis) This section details operating and financial performance, outlining strategies to improve marketing, streamline production, and diversify revenue through new logistics ventures in Sub-Saharan Africa [Business Review](index=2&type=section&id=Business%20Review) The Group's revenue grew 10.6% to HK$50.5 million, driven by book product orders, but loss attributable to owners increased to HK$5.7 million due to lower gross profit - The Group primarily engages in book printing, paper stationery, and packaging products, offering comprehensive services from pre-press to finished printed products[4](index=4&type=chunk) Business Review Key Financial Data | Indicator | 2024 H1 (HK$ million) | 2023 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 50.5 | 45.6 | 10.6% | | Loss attributable to owners | (5.7) | (5.5) | 3.6% (Loss expanded) | - The increase in revenue was mainly due to increased customer orders from Hong Kong in the book products segment; the increase in loss was primarily due to a decrease in gross profit, partially offset by increased bank interest income and net exchange gains[4](index=4&type=chunk) [Financial Review](index=2&type=section&id=Financial%20Review) Despite revenue growth, gross profit and margin declined, leading to a slight loss expansion, partially offset by increased other income and exchange gains, while operating costs remained stable [Revenue](index=2&type=section&id=Revenue) Revenue increased by 10.6% to HK$50.5 million, primarily driven by the book products segment, which contributed HK$47.6 million or 94.3% of total revenue Revenue Overview | Indicator | 2024 H1 (HK$ million) | 2023 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 50.5 | 45.6 | 10.6% | | Book products segment revenue | 47.6 | 43.1 | 10.4% | | Book products segment as % of total revenue | 94.3% | - | - | - The increase in revenue was mainly due to increased customer orders received from Hong Kong in the book products segment[5](index=5&type=chunk) [Gross Profit and Gross Profit Margin](index=2&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit decreased by 27.5% to HK$6.2 million, with the margin falling from 18.9% to 12.4%, primarily due to lower selling prices to attract customers Gross Profit and Gross Profit Margin Change | Indicator | 2024 H1 (HK$ million) | 2023 H1 (HK$ million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 6.2 | 8.6 | (27.5%) | | Gross Profit Margin | 12.4% | 18.9% | (6.5) percentage points | - The decrease in gross profit and gross profit margin was mainly due to the Group lowering selling prices of key products to attract more customers, while production costs remained stable[6](index=6&type=chunk) [Other Income and Other Gains and Losses](index=3&type=section&id=Other%20Income%20and%20Other%20Gains%20and%20Losses) Other income surged to HK$1.0 million, driven by bank interest, and the company recorded a net exchange gain of HK$0.7 million, reversing last year's loss Other Income and Gains/Losses Change | Indicator | 2024 H1 (HK$ million) | 2023 H1 (HK$ million) | | :--- | :--- | :--- | | Other Income | 1.0 | 0.1 | | Net Exchange Gain | 0.7 | (0.6) (Loss) | - The increase in other income was mainly due to increased bank interest income[7](index=7&type=chunk) [Selling and Distribution Costs](index=3&type=section&id=Selling%20and%20Distribution%20Costs) Selling and distribution costs remained stable at approximately HK$3.0 million for the period - Selling and distribution costs remained stable at approximately **HK$3.0 million** in both periods[8](index=8&type=chunk) [Administrative Expenses](index=3&type=section&id=Administrative%20Expenses) Administrative expenses remained stable at approximately HK$10.4 million, comparable to HK$10.6 million in the previous period - Administrative expenses remained stable at approximately **HK$10.4 million** for the period (2023 H1: approximately HK$10.6 million)[9](index=9&type=chunk) [Loss for the Period](index=3&type=section&id=Loss%20for%20the%20Period) The net loss for the period slightly widened to approximately HK$5.7 million, compared to HK$5.5 million in the prior period Loss for the Period | Indicator | 2024 H1 (HK$ million) | 2023 H1 (HK$ million) | | :--- | :--- | :--- | | Net Loss | (5.7) | (5.5) | [Outlook](index=3&type=section&id=Outlook) The Group plans to enhance marketing, streamline production, and diversify revenue by exploring new opportunities, including a logistics business in Sub-Saharan Africa, starting with Zambia - The Group will improve marketing strategies, expand its quality customer base, and promote one-stop printing services[11](index=11&type=chunk) - The Group will strive to further tighten operating expense control and streamline production processes, and improve overall production efficiency through its one-stop printing platform[11](index=11&type=chunk) - The Group is actively seeking new business opportunities to diversify its revenue streams, having commenced a new logistics business in Sub-Saharan Africa, with initial services planned for the Republic of Zambia[11](index=11&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=4&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) The Group's capital structure remains stable with HK$10.2 million issued share capital, but total assets and cash decreased, while liquidity ratios declined yet remained robust - The Company's issued share capital is **HK$10,200,000**, with **1,020,000,000** ordinary shares of HK$0.01 each in issue[12](index=12&type=chunk) Liquidity and Financial Resources Overview | Indicator | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 145,273 | 150,329 | (3.4%) | | Shareholders' Equity | 119,994 | 126,603 | (5.2%) | | Bank Balances and Cash | 52,511 | 65,647 | (20.0%) | | Gearing Ratio | 4.3% | 5.2% | (0.9) percentage points | | Current Ratio | 5.1 | 5.8 | (0.7) | - The Group has no interest-bearing bank borrowings[14](index=14&type=chunk) [Treasury Policy](index=5&type=section&id=Treasury%20Policy) The Group maintains a prudent treasury policy, managing liquidity risk by monitoring cash, credit limits, and solvency to ensure a robust financial position - The Group has adopted a prudent financial management approach as its treasury policy, and its liquidity position has remained robust[15](index=15&type=chunk) - Management monitors the Group's liquidity position and maintains sufficient cash and cash equivalents, and monitors credit limits and solvency through committed credit facilities[15](index=15&type=chunk) [Exchange Rate Fluctuation Risk](index=5&type=section&id=Exchange%20Rate%20Fluctuation%20Risk) Low revenue exchange risk due to USD/HKD denomination, but RMB appreciation could increase production costs; hedging strategies will be reviewed - Revenue is primarily denominated in **USD and HKD**, resulting in low exchange rate fluctuation risk[16](index=16&type=chunk) - The Group faces foreign exchange risk as its production activities are mainly located in Mainland China, where RMB appreciation could lead to increased production costs[16](index=16&type=chunk) - No hedging instruments were entered into during the period, but hedging arrangements will be continuously reviewed and considered as appropriate[16](index=16&type=chunk) [Capital Expenditure, Capital Commitments and Contingent Liabilities](index=6&type=section&id=Capital%20Expenditure%2C%20Capital%20Commitments%20and%20Contingent%20Liabilities) The Group acquired HK$0.4 million in property, plant, and equipment, with no pledged assets, significant capital commitments, or material contingent liabilities as of June 30, 2024 Capital Expenditure | Indicator | 2024 H1 (HK$ million) | 2023 H1 (HK$ million) | | :--- | :--- | :--- | | Purchase of property, plant and equipment | 0.4 | Nil | - As of June 30, 2024, the Group had no pledged assets, significant capital commitments, or material contingent liabilities[17](index=17&type=chunk) [Dividends](index=6&type=section&id=Dividends) The Board does not recommend any interim dividend payment for the six months ended June 30, 2024 - The Board does not recommend the payment of any interim dividend for the current period[18](index=18&type=chunk) [Material Investments / Material Acquisitions and Disposals of Subsidiaries and Associates](index=6&type=section&id=Material%20Investments%20%2F%20Material%20Acquisitions%20and%20Disposals%20of%20Subsidiaries%20and%20Associates) No material acquisitions, disposals, investments, or capital commitments were made during the period, nor are there any future plans for such activities - During the period, the Company made no material acquisitions or disposals of subsidiaries, associates, joint ventures, material investments, or capital commitments[19](index=19&type=chunk) - As of the date of this announcement, the Company has no other future plans for material acquisitions, disposals, investments, or additions to capital assets[19](index=19&type=chunk) [Employee Information and Remuneration Policy](index=6&type=section&id=Employee%20Information%20and%20Remuneration%20Policy) The Group's employee count decreased to 327, with total staff costs of HK$20.0 million; remuneration is market-based, performance-linked, and includes benefits Employee Information | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total Employees | 327 | 364 | | Total Staff Costs (HK$ million) | 20.0 | 17.1 (2023 H1) | - Employee remuneration is determined based on market conditions and individual performance, with medical insurance and discretionary bonuses provided[20](index=20&type=chunk) [Purchase, Sale or Redemption of the Company's Securities](index=6&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Securities) Neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's securities during the period - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's securities[21](index=21&type=chunk) [Use of Proceeds from 2022 Placing](index=7&type=section&id=Use%20of%20Proceeds%20from%202022%20Placing) HK$20.7 million net proceeds from the 2022 placing remain unutilized, with HK$13.7 million for pharmaceutical projects and HK$7.0 million for core business, expected to be used by year-end - The 2022 placing raised net proceeds of approximately **HK$20.7 million**[22](index=22&type=chunk) - The original plan to invest in pharmaceutical-related projects was halted due to lengthy due diligence, and an advance of **HK$7.0 million** was recovered and re-allocated for the Group's ongoing core business activities[22](index=22&type=chunk) 2022 Placing Proceeds Usage and Timeline | Intended Use of Proceeds | Allocation of Net Proceeds as of Jan 1, 2024 (HK$ million) | Amount Utilized as of this Announcement Date (HK$ million) | Expected Timeline for Utilization | | :--- | :--- | :--- | :--- | | Pharmaceutical-related projects | 13.7 | 13.7 | On or before December 31, 2024 | | Core business activities | 7.0 | 7.0 | On or before December 31, 2024 | | **Total** | **20.7** | **20.7** | | [Events After Reporting Period](index=9&type=section&id=Events%20After%20Reporting%20Period) The Group announced expansion into Sub-Saharan African logistics, establishing a Zambian subsidiary with projected operating costs not exceeding US$0.4 million for 2024 - On August 5, 2024, the Group announced its intention to expand its business into the logistics sector in Sub-Saharan Africa[25](index=25&type=chunk) - A new wholly-owned subsidiary has been established in the Republic of Zambia, and local drivers have been recruited, with a truck fleet established through leasing arrangements[25](index=25&type=chunk) - The operating costs for this new logistics business are projected not to exceed **US$0.4 million** (approximately **HK$3.1 million**) for the year ending December 31, 2024[25](index=25&type=chunk) [Update on Directors' Information](index=9&type=section&id=Update%20on%20Directors%27%20Information) No updates to directors' information or other disclosures were required under Listing Rule 13.51B(1) during the period - During the period, no updates to directors' information or other disclosures were required under Rule 13.51B(1) of the Listing Rules of the Stock Exchange[26](index=26&type=chunk) [Share Option Scheme](index=9&type=section&id=Share%20Option%20Scheme) The Company's 2017 share option scheme has not granted any options, with 100,000,000 shares remaining available for future grants - The Company conditionally adopted a share option scheme on December 4, 2017[27](index=27&type=chunk) - No share options have been granted since the adoption of the scheme, and no outstanding share options existed as of June 30, 2024[27](index=27&type=chunk) - The number of shares available for grant under the scheme remains **100,000,000** shares[27](index=27&type=chunk) [Directors' and Chief Executive's Interests in Shares, Underlying Shares and Debentures](index=9&type=section&id=Directors%27%20and%20Chief%20Executive%27s%20Interests%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) Chairman and CEO Mr. Ng Ho Lun indirectly holds 73.53% of the Company's shares; no other directors or associates have disclosable interests Directors' Shareholdings | Director Name | Capacity | Number of Ordinary Shares Held | Percentage of Company's Shares | | :--- | :--- | :--- | :--- | | Ng Ho Lun | Held by controlled corporation (Note 1) | 750,000,000 | 73.53% | - Save as disclosed above, no director or their associates had any interests or short positions in the shares, underlying shares, or debentures of the Company or any of its associated corporations[29](index=29&type=chunk) [Interests and Short Positions of Substantial Shareholders and Other Persons in Shares and Underlying Shares](index=10&type=section&id=Interests%20and%20Short%20Positions%20of%20Substantial%20Shareholders%20and%20Other%20Persons%20in%20Shares%20and%20Underlying%20Shares) Substantial shareholder TeraMetal Holdings Limited beneficially owns 73.53% of shares; Ms. Liu Chujia is deemed to have a spousal interest in the same, with no other disclosable interests Substantial Shareholders' Shareholdings | Shareholder Name | Capacity | Number of Shares Held | Percentage of Company's Issued Shares | | :--- | :--- | :--- | :--- | | TeraMetal Holdings Limited | Beneficial owner | 750,000,000 | 73.53% | | Liu Chujia | Spouse's interest (Spouse of Mr. Ng Ho Lun) | 750,000,000 | 73.53% | - Save as disclosed above, no other persons had any interests or short positions in the shares or underlying shares of the Company that were required to be disclosed to the Company and recorded in the register[30](index=30&type=chunk) [Management Contracts](index=10&type=section&id=Management%20Contracts) No management or administration contracts for the Company's business, beyond standard service agreements with directors or full-time employees, were entered into or existed - During the period, no contracts concerning the management and administration of the whole or any substantial part of the Company's business were entered into or existed[31](index=31&type=chunk) [Controlling Shareholder's Interests in Material Contracts](index=11&type=section&id=Controlling%20Shareholder%27s%20Interests%20in%20Material%20Contracts) No material contracts for services between the Company or its subsidiaries and the controlling shareholder or its subsidiaries were entered into during the period - To the best of the Directors' knowledge, neither the Company nor any of its subsidiaries, nor the controlling shareholder or any of its subsidiaries, entered into any material contracts for services provided by the controlling shareholder or its subsidiaries to the Company or its subsidiaries at any time during the period[32](index=32&type=chunk) [Directors' and Controlling Shareholder's Interests in Competing Businesses](index=11&type=section&id=Directors%27%20and%20Controlling%20Shareholder%27s%20Interests%20in%20Competing%20Businesses) No directors, controlling shareholders, or their associates held interests in any business competing with the Group's operations during the period - At no time during the period did the Company's directors and controlling shareholder or their respective close associates hold any interest in any business, other than the Group's business, that directly or indirectly competed or had competed or might compete with the Group's business[33](index=33&type=chunk) [Corporate Governance Practices](index=11&type=section&id=Corporate%20Governance%20Practices) The Company adheres to the Corporate Governance Code, with the Chairman and CEO roles combined, an arrangement the Board believes ensures consistent leadership and effective strategy execution - The Company has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules[34](index=34&type=chunk) - The roles of Chairman and Chief Executive Officer are combined and held by Mr. Ng Ho Lun, which deviates from Code Provision C.2.1, but the Board believes this arrangement facilitates business strategy execution and provides consistent leadership[34](index=34&type=chunk) - The Board's structure is well-balanced, ensuring a balance of power, and will regularly review the need to appoint different individuals to serve as Chairman and Chief Executive Officer[34](index=34&type=chunk) [Model Code for Securities Transactions by Directors](index=12&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company adopted a code of conduct for directors' securities transactions, and all directors confirmed compliance with the Model Code during the period - The Company has adopted a code of conduct for directors' securities transactions with terms no less exacting than the standards set out in the Model Code[35](index=35&type=chunk) - Following specific enquiries made to all directors, they confirmed their compliance with the required standards set out in the Model Code throughout the period[35](index=35&type=chunk) [Audit Committee](index=12&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors chaired by Ms. Law Ying Wai, has adopted terms of reference compliant with the Corporate Governance Code - The Audit Committee comprises all three independent non-executive directors, chaired by Ms. Law Ying Wai, who possesses appropriate professional qualifications[36](index=36&type=chunk) - The Audit Committee has adopted terms of reference that comply with the Code Provisions of the Corporate Governance Code[36](index=36&type=chunk) [Review of Interim Financial Information](index=12&type=section&id=Review%20of%20Interim%20Financial%20Information) The Audit Committee and management reviewed accounting principles, risk management, and internal controls, including the unaudited interim financial information, which was also reviewed by the external auditor - The Audit Committee, together with management, has reviewed the accounting principles and practices adopted by the Group and discussed risk management, internal control systems, and financial reporting matters[37](index=37&type=chunk) - The external auditor, BDO Limited, has also reviewed the Group's unaudited condensed consolidated interim financial information for the period in accordance with Hong Kong Standard on Review Engagements 2410[37](index=37&type=chunk) [Condensed Consolidated Financial Statements](index=13&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated financial statements, reflecting expanded losses and reduced cash reserves, yet maintaining a robust asset and liability structure [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=13&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue grew to HK$50.5 million, but gross profit declined 27.5% to HK$6.2 million, leading to an expanded loss of HK$5.7 million for the period Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary | Indicator | 2024 H1 (HK$ thousand) | 2023 H1 (HK$ thousand) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 50,451 | 45,629 | 10.6% | | Cost of sales | (44,214) | (37,026) | 19.4% | | Gross Profit | 6,237 | 8,603 | (27.5%) | | Other income | 967 | 141 | 585.8% | | Other gains and losses | 651 | (587) | (210.9%) (from loss to gain) | | Selling and distribution costs | (3,019) | (3,036) | (0.6%) | | Administrative expenses | (10,373) | (10,594) | (2.1%) | | Loss before tax | (5,669) | (5,514) | 2.8% (Loss expanded) | | Loss for the period | (5,669) | (5,520) | 2.7% (Loss expanded) | | Basic loss per share (HK cents) | (0.56) | (0.54) | 3.7% (Loss expanded) | [Condensed Consolidated Statement of Financial Position](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) Total assets decreased to HK$145.3 million, and shareholders' equity to HK$120.0 million, with net current assets at HK$91.5 million and cash at HK$52.5 million Condensed Consolidated Statement of Financial Position Summary | Indicator | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Non-current assets | 31,397 | 35,730 | (12.1%) | | Current assets | 113,876 | 114,599 | (0.6%) | | Inventories | 24,250 | 19,123 | 26.8% | | Trade and other receivables | 37,115 | 29,239 | 26.9% | | Bank balances and cash | 52,511 | 65,647 | (20.0%) | | Current liabilities | 22,426 | 19,641 | 14.2% | | Trade and other payables | 19,609 | 16,632 | 17.9% | | Net current assets | 91,450 | 94,958 | (3.7%) | | Net assets (Total equity) | 119,994 | 126,603 | (5.2%) | [Condensed Consolidated Statement of Changes in Equity](index=15&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity decreased from HK$126.6 million to HK$120.0 million, primarily due to a HK$5.7 million loss and HK$940 thousand in exchange differences Condensed Consolidated Statement of Changes in Equity Summary | Indicator | June 30, 2024 (HK$ thousand) | January 1, 2024 (HK$ thousand) | Change (HK$ thousand) | | :--- | :--- | :--- | :--- | | Share Capital | 10,200 | 10,200 | 0 | | Share Premium | 55,130 | 55,130 | 0 | | PRC Statutory Reserve | 379 | 379 | 0 | | Special Reserve | 12,290 | 12,290 | 0 | | Exchange Fluctuation Reserve | (6,460) | (5,520) | (940) | | Retained Profits | 48,455 | 54,124 | (5,669) | | **Total Equity** | **119,994** | **126,603** | **(6,609)** | - The decrease in total equity was mainly due to the **loss for the period** and **exchange differences** arising from translating foreign operations[41](index=41&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=16&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) Net cash used in operating activities significantly increased to HK$12.5 million, while cash and cash equivalents decreased to HK$52.5 million at period-end Condensed Consolidated Statement of Cash Flows Summary | Indicator | 2024 H1 (HK$ thousand) | 2023 H1 (HK$ thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (12,468) | (2,475) | | Net cash generated from investing activities | 531 | 100 | | Net cash used in financing activities | (1,362) | (976) | | Net decrease in cash and cash equivalents | (13,299) | (3,351) | | Cash and cash equivalents at end of period | 52,511 | 54,128 | - Net cash used in operating activities significantly increased, primarily impacted by an increase in inventories and trade and other receivables[43](index=43&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=17&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the condensed consolidated financial statements, covering key accounting policies, revenue, expenses, assets, liabilities, equity, and post-reporting events [Basis of Preparation](index=17&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with HKAS 34 'Interim Financial Reporting' and Listing Rules disclosure requirements - The condensed consolidated financial statements are prepared in accordance with **Hong Kong Accounting Standard 34 'Interim Financial Reporting'** issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[44](index=44&type=chunk) [Significant Accounting Policies](index=17&type=section&id=Significant%20Accounting%20Policies) The financial statements are prepared on a historical cost basis, with accounting policies consistent with the prior year, except for HKFRS amendments - The condensed consolidated financial statements are prepared on a **historical cost basis**[45](index=45&type=chunk) - Except for changes resulting from the application of amendments to Hong Kong Financial Reporting Standards, the accounting policies and methods of computation used in this period are the same as those presented in the annual consolidated financial statements for the year ended December 31, 2023[45](index=45&type=chunk) [Application of Amendments to HKFRS](index=17&type=section&id=Application%20of%20Amendments%20to%20HKFRS) Amendments to HKFRS, including those related to HKFRS 16, HKAS 1, and HKAS 7, were applied with no significant impact on financial position or performance - Amendments to HKFRS, including those related to lease liabilities in a sale and leaseback, classification of liabilities as current or non-current, non-current liabilities with covenants, and supplier finance arrangements, were first applied in this period[46](index=46&type=chunk) - The application of amendments to HKFRS had **no significant impact** on the Group's financial position and performance for the current and prior periods[46](index=46&type=chunk) [Revenue and Segment Information](index=18&type=section&id=Revenue%20and%20Segment%20Information) Revenue from book products and paper stationery totaled HK$50.5 million, with Hong Kong and the US being the largest geographical contributors - Revenue refers to amounts received or receivable from the production and printing of book products, paper stationery, and packaging products, recognized when control of the goods has been transferred[47](index=47&type=chunk) Major Product Revenue | Product Category | 2024 H1 (HK$ thousand) | 2023 H1 (HK$ thousand) | | :--- | :--- | :--- | | Book products | 47,596 | 43,122 | | Paper stationery and packaging products | 2,855 | 2,507 | | **Total** | **50,451** | **45,629** | Revenue by Geographical Location | Geographical Location | 2024 H1 (HK$ thousand) | 2023 H1 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong | 30,836 | 20,055 | | United States | 8,015 | 7,859 | | Netherlands | 2,160 | 5,787 | | United Kingdom | 1,905 | 4,190 | | Mainland China | 2,742 | 3,343 | | Australia | 1,482 | 2,394 | | France | 2,039 | 1,493 | | Germany | 1,230 | 405 | | Others | 42 | 103 | | **Total** | **50,451** | **45,629** | [Other Income](index=19&type=section&id=Other%20Income) Total other income was HK$967 thousand, primarily driven by a significant increase in bank interest income to HK$920 thousand Other Income Details | Income Category | 2024 H1 (HK$ thousand) | 2023 H1 (HK$ thousand) | | :--- | :--- | :--- | | Bank interest income | 920 | 100 | | Miscellaneous income | 47 | 41 | | **Total** | **967** | **141** | [Other Gains and Losses](index=19&type=section&id=Other%20Gains%20and%20Losses) A net exchange gain of HK$651 thousand was recorded, reversing a net exchange loss of HK$587 thousand in the prior period Other Gains and Losses | Indicator | 2024 H1 (HK$ thousand) | 2023 H1 (HK$ thousand) | | :--- | :--- | :--- | | Net exchange gain (loss) | 651 | (587) | [Taxation](index=20&type=section&id=Taxation) No provision for Hong Kong profits tax or PRC enterprise income tax was made due to the absence of assessable profits - For the six months ended June 30, 2024, no provision was made for Hong Kong profits tax as the relevant Group entities had no assessable profits[50](index=50&type=chunk) - No provision was made for PRC enterprise income tax for the period as the relevant Group entities had no assessable income subject to PRC enterprise income tax[50](index=50&type=chunk) [Dividends](index=20&type=section&id=Dividends) No dividends were paid, declared, or proposed for either interim period, and the Directors do not recommend an interim dividend - No dividends were paid, declared, or proposed for either interim period[51](index=51&type=chunk) - The Directors of the Company do not recommend the payment of an interim dividend for the current period[51](index=51&type=chunk) [Loss Per Share](index=20&type=section&id=Loss%20Per%20Share) Basic loss per share increased to HK$0.56 cents; diluted loss per share is not presented due to no potential ordinary shares outstanding Loss Per Share | Indicator | 2024 H1 (HK cents) | 2023 H1 (HK cents) | | :--- | :--- | :--- | | Basic loss per share | (0.56) | (0.54) | - Diluted loss per share is not presented as there were no potential ordinary shares outstanding in either period[52](index=52&type=chunk) [Property, Plant and Equipment](index=21&type=section&id=Property%2C%20Plant%20and%20Equipment) The Group acquired HK$389 thousand in property, plant, and equipment, with no new or renewed leases during the period Property, Plant and Equipment Acquisitions | Indicator | 2024 H1 (HK$ thousand) | 2023 H1 (HK$ thousand) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 389 | Nil | - During the period, no leases were renewed or newly entered into[53](index=53&type=chunk) [Trade and Other Receivables](index=21&type=section&id=Trade%20and%20Other%20Receivables) Total trade and other receivables increased to HK$37.1 million, with HK$33.3 million in trade receivables, including HK$4.8 million overdue, but HK$1.5 million over 90 days not in default Trade and Other Receivables | Indicator | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables (net of allowance) | 33,302 | 26,974 | | Prepayments and deposits | 3,674 | 2,126 | | **Total Trade and Other Receivables** | **37,115** | **29,239** | Ageing Analysis of Trade Receivables (Net of Allowance) | Ageing | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 9,178 | 7,964 | | 31 to 60 days | 11,427 | 8,750 | | 61 to 90 days | 7,601 | 4,633 | | Over 90 days | 5,096 | 5,627 | | **Total** | **33,302** | **26,974** | - Approximately **HK$1.5 million** overdue by 90 days or more were not considered in default due to the Group's long-term/ongoing relationships with these customers and their good repayment records[55](index=55&type=chunk) [Trade and Other Payables](index=22&type=section&id=Trade%20and%20Other%20Payables) Total trade and other payables increased to HK$19.6 million, with trade payables having credit terms of 30 to 90 days Trade and Other Payables | Indicator | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Trade payables | 12,208 | 9,731 | | Accrued expenses | 4,486 | 5,628 | | Other payables | 2,915 | 1,273 | | **Total Trade and Other Payables** | **19,609** | **16,632** | Ageing Analysis of Trade Payables | Ageing | June 30, 2024 (HK$ thousand) | December 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within 30 days | 10,257 | 7,109 | | 31 to 60 days | 1,435 | 2,406 | | 61 to 90 days | 459 | 194 | | Over 90 days | 57 | 22 | | **Total** | **12,208** | **9,731** | [Share Capital](index=22&type=section&id=Share%20Capital) Authorized share capital is HK$20.0 million, with HK$10.2 million issued and fully paid, comprising 1,020,000 thousand ordinary shares, unchanged since January 1, 2023 Share Capital Structure | Indicator | Number of Shares (thousand shares) | Share Capital (HK$ thousand) | | :--- | :--- | :--- | | Authorized share capital (ordinary shares of HK$0.01 each) | 2,000,000 | 20,000 | | Issued and fully paid (ordinary shares of HK$0.01 each) | 1,020,000 | 10,200 | [Related Party Disclosures](index=23&type=section&id=Related%20Party%20Disclosures) Directors' and key management remuneration was HK$988 thousand, a slight decrease, with no sales transactions with former director-related companies Related Party Transactions | Transaction Type | 2024 H1 (HK$ thousand) | 2023 H1 (HK$ thousand) | | :--- | :--- | :--- | | Remuneration for directors and other key management personnel | 988 | 1,011 | | Sales of paper stationery and packaging products to Tse Wing Hung Company Limited | 0 | 146 | [Fair Value Measurement of Financial Instruments](index=23&type=section&id=Fair%20Value%20Measurement%20of%20Financial%20Instruments) The carrying amounts of the Group's financial assets and liabilities recorded at amortized cost approximate their fair values - The Directors believe that the carrying amounts of the Group's financial assets and liabilities recorded at amortized cost in the condensed consolidated financial statements approximate their fair values[59](index=59&type=chunk) [Events After Reporting Period](index=23&type=section&id=Events%20After%20Reporting%20Period) Post-reporting period, the Group announced its expansion into Sub-Saharan African logistics, initially targeting the commodities industry in Zambia - On August 5, 2024, the Group announced its intention to expand its business into the logistics sector in Sub-Saharan Africa[60](index=60&type=chunk) - The initial focus will be on serving the commodities industry in the region, with plans to first provide logistics services in the Republic of Zambia[60](index=60&type=chunk)

Financial Performance - For the fiscal year 2023, the company reported total revenue of approximately HKD 97.2 million, a decrease of 26.1% compared to HKD 131.6 million in fiscal year 2022[17]. - The loss for fiscal year 2023 was approximately HKD 3.7 million, significantly reduced from a loss of HKD 16.5 million in fiscal year 2022, attributed to a shift in sales strategy focusing on higher-margin customer orders[17]. - The book products segment accounted for approximately 92.2% of total revenue in fiscal year 2023, generating about HKD 89.7 million, down 28.3% from HKD 125.0 million in the previous year[18]. - The group's gross profit for the fiscal year 2023 was approximately HKD 21.6 million, an increase of 181.0% compared to HKD 7.7 million in fiscal year 2022[19]. - The gross profit margin improved from 5.8% in fiscal year 2022 to 22.2% in fiscal year 2023[20]. - The annual loss for fiscal year 2023 decreased to approximately HKD 3.7 million from HKD 16.5 million in fiscal year 2022[26]. - The net profit attributable to the company's owners for the year ended December 31, 2023, was a loss of HKD 3,690,000, compared to a loss of HKD 16,500,000 in 2022[76]. - The basic loss per share for 2023 was HKD 0.36, a decrease from HKD 1.64 in 2022, reflecting a reduction in losses[73]. Shareholder Value and Management - The new controlling shareholder, TeraMetal Holdings Limited, was welcomed in May 2023, marking a new management era and opening up prospects for existing and new business opportunities[13]. - The management expressed confidence in exploring new business avenues with the support of the new controlling shareholder to maximize overall shareholder value[14]. - The company is committed to creating long-term value for shareholders in response to their steadfast support and trust[14]. - The company aims to optimize its sales strategy to maintain competitiveness in the printing industry, despite anticipated ongoing intense competition[14]. Operational Efficiency - The company experienced a notable improvement in profit margins in the second half of fiscal year 2023, despite increased administrative expenses due to rising employee costs and taxes in China[17]. - Sales and distribution costs decreased by approximately 23.2% to about HKD 5.8 million in fiscal year 2023 from HKD 7.6 million in fiscal year 2022[24]. - Administrative expenses rose by approximately 14.3% to about HKD 20.6 million in fiscal year 2023, mainly due to increased employee costs and taxes in China[25]. - Employee costs totaled approximately HKD 34.7 million in FY2023, down from HKD 42.4 million in FY2022, with a workforce increase to 364 employees[48]. Environmental Impact - The company reported a significant increase in nitrogen oxides emissions, rising to 43,403.06 grams in 2023 from 12,670.55 grams in 2022, indicating a substantial increase due to post-pandemic recovery[109]. - Sulfur oxides emissions increased to 105.30 grams in 2023 from 78.54 grams in 2022, reflecting a growing environmental impact[109]. - The total greenhouse gas emissions amounted to 4,386.29 tons of CO2 equivalent in 2023, down from 4,771.85 tons in 2022, achieving an 8% reduction in emissions density[111]. - The company aims to keep total greenhouse gas emissions density between 90% to 120% of the 2023 baseline in the next reporting period[111]. - The company has successfully obtained ISO 14001 environmental management system certification, demonstrating its commitment to sustainable practices[108]. - The company has established a hazardous waste management system to prevent environmental pollution and ensure compliance with relevant laws[113]. Community Engagement and Social Responsibility - The group donated a total of HKD 60,000 to the Hong Kong Aberdeen District Community Service Centre, supporting welfare and social services for the elderly, children, and families[163]. - The company has engaged in various community activities and employee volunteer initiatives to enhance its social responsibility[98]. Corporate Governance - The board believes that combining the roles of Chairman and CEO enhances decision-making efficiency despite deviations from governance codes[182]. - The company plans to regularly review the need for separate individuals to hold the roles of Chairman and CEO to maintain good corporate governance[182]. - The board will continue to monitor and update the company's corporate governance practices to ensure compliance with the corporate governance code[183]. - All directors confirmed full compliance with the standard code of conduct for securities trading during the fiscal year 2023[184]. - The board consists of four executive directors and three independent non-executive directors, with all directors confirming their independence as per listing rules[200].

Financial Performance - The company's total revenue for the fiscal year 2023 decreased by approximately 26.1%, from about HKD 131.6 million in fiscal year 2022 to approximately HKD 97.2 million[4]. - The revenue from the book products segment accounted for about 92.2% of total revenue in fiscal year 2023, with approximately HKD 89.7 million, a decrease of 28.3% compared to HKD 125.0 million in fiscal year 2022[6]. - The net loss for fiscal year 2023 decreased to approximately HKD 3.7 million, compared to a net loss of about HKD 16.5 million in fiscal year 2022[16]. - The company reported a net loss of approximately HKD 3,690,000 for the fiscal year 2023, compared to a loss of approximately HKD 16,500,000 in 2022, representing a significant improvement[49]. - Earnings per share for 2023 was HKD (0.36), a decrease from HKD (1.64) in 2022, indicating a reduction in losses per share[62]. - Total revenue for 2023 was HKD 97,241,000, down from HKD 131,647,000 in 2022, reflecting a decline of approximately 26%[62]. - The cost of sales decreased to HKD (75,690,000) in 2023 from HKD (123,978,000) in 2022, resulting in a gross profit of HKD 21,551,000, compared to HKD 7,669,000 in the previous year[62]. - The gross profit for fiscal year 2023 was approximately HKD 21.6 million, an increase of 181.0% from about HKD 7.7 million in fiscal year 2022[7]. - The gross profit margin increased from 5.8% in fiscal year 2022 to 22.2% in fiscal year 2023[8]. Assets and Liabilities - As of December 31, 2023, the company's total assets were HKD 150.329 million, with shareholders' equity at HKD 126.603 million[21]. - The company held cash and bank balances of approximately HKD 65.6 million as of December 31, 2023, an increase of about 15.0% from HKD 57.1 million on December 31, 2022[21]. - Non-current assets decreased to approximately HKD 35.7 million as of December 31, 2023, down from about HKD 43.3 million on December 31, 2022[23]. - Current assets increased to approximately HKD 114.6 million as of December 31, 2023, compared to HKD 107.0 million on December 31, 2022[23]. - The total lease liabilities of the group as of December 31, 2023, amounted to approximately HKD 6.6 million (as of December 31, 2022: approximately HKD 1.8 million)[25]. - The group's debt-to-equity ratio as of December 31, 2023, was approximately 5.2% (as of December 31, 2022: approximately 1.4%)[25]. - The group maintained a current ratio of approximately 5.8 as of December 31, 2023 (as of December 31, 2022: approximately 5.7)[25]. - The total equity of the group decreased to HKD 126,603,000 in 2023 from HKD 131,607,000 in 2022, a decline of 3.8%[78]. Operational Strategies - The company plans to improve marketing strategies, expand its quality customer base, and promote one-stop printing services to capture new business opportunities[17]. - The company plans to utilize approximately HKD 20.7 million for pharmaceutical-related projects by December 31, 2024, with HKD 13.7 million remaining unutilized as of the announcement date[45]. - The group has no plans for significant acquisitions, disposals, or investments as of the announcement date[36]. - The company did not recommend any final dividend for fiscal year 2023, consistent with fiscal year 2022[107]. Governance and Compliance - The audit committee has reviewed the external auditor's terms of engagement and the financial statements for the fiscal year 2023, ensuring compliance with applicable accounting standards[65]. - The company has implemented high standards of corporate governance and has adhered to the corporate governance code, with a commitment to regular reviews of its governance practices[53]. - The company has maintained a public float of at least 25% of its issued share capital as of the announcement date[58]. Other Financial Information - Total employee costs for the fiscal year 2023 were approximately HKD 34.7 million (fiscal year 2022: approximately HKD 42.4 million)[33]. - The group acquired properties, plants, and equipment for approximately HKD 0.5 million in fiscal year 2023 (fiscal year 2022: HKD 1.1 million)[29]. - The group did not enter into any hedging instruments to mitigate foreign exchange risks during the fiscal year 2023[28]. - The group reported bank interest income of HKD 792,000 in 2023, significantly up from HKD 41,000 in 2022[88]. - The group received government grants totaling HKD 101,000 in 2023, down from HKD 470,000 in 2022[88]. - The group reported a net loss from the sale of property, plant, and equipment of HKD 25,000 in 2023, compared to a gain of HKD 11,000 in 2022[95]. - The company had no non-current assets related to potential investments as of the end of fiscal year 2023, down from HKD 7 million in fiscal year 2022[100]. - Trade receivables at the end of fiscal year 2023 totaled HKD 29.2 million, down from HKD 41.4 million in fiscal year 2022[100]. - The total trade and other payables at the end of fiscal year 2023 amounted to HKD 16.6 million, an increase from HKD 15.6 million in fiscal year 2022[108]. - The average number of ordinary shares weighted for the basic loss per share calculation was 1,020,000 shares in fiscal year 2023, compared to 1,008,164 shares in fiscal year 2022[99]. - The company issued 20 million new shares in August 2022, raising approximately HKD 20.7 million after expenses[110].

Financial Performance - For the six months ended June 30, 2023, the revenue of Smart Globe Holdings Limited was approximately HKD 45.6 million, a decrease of about 35.8% compared to HKD 71.1 million for the same period in 2022[10]. - The loss attributable to owners of the company for the same period was approximately HKD 5.5 million, compared to a loss of HKD 2.4 million in the previous year[10]. - The gross profit for the period was approximately HKD 8.6 million, down 10.4% from HKD 9.6 million in the first half of 2022[14]. - The company recorded a net loss of approximately HKD 5.5 million for the period, compared to a loss of approximately HKD 2.4 million in the first half of 2022[20]. - Total comprehensive loss for the period was HKD 7,097,000, compared to HKD 5,529,000 in the same period last year, reflecting a worsening financial position[77]. - Basic loss per share for the period was HKD 0.54, compared to HKD 0.24 in the same period of the previous year, indicating a higher loss per share[77]. Revenue Breakdown - Revenue from the book products segment accounted for approximately 94.5% of total revenue, with segment revenue decreasing by 37.3% to approximately HKD 43.1 million from HKD 68.8 million in the previous year[13]. - The decline in revenue was primarily attributed to a decrease in customer orders from the United States and Hong Kong for the book products segment[12]. - Revenue for the six months ended June 30, 2023, was HKD 45,629,000, a decrease of 35.9% compared to HKD 71,057,000 in the same period of 2022[77]. - The company experienced a decrease in book product revenue, which fell to HKD 43,122,000 from HKD 68,764,000, representing a decline of 37.4%[96]. - Revenue from Hong Kong decreased to HKD 20,055,000 from HKD 34,034,000, representing a decline of 41.2% year-over-year[98]. Expenses and Costs - Selling and distribution costs decreased by approximately 29.7% to about HKD 3.0 million, down from HKD 4.3 million in the first half of 2022[18]. - Administrative expenses increased by approximately 32.7% to about HKD 10.6 million, compared to HKD 8.0 million in the previous year, mainly due to legal and professional fees related to corporate actions[19]. - Total employee costs for the period amounted to approximately HKD 17.1 million, down from approximately HKD 23.8 million in the first half of 2022[39]. Assets and Liabilities - As of June 30, 2023, total assets were HKD 142.5 million, down from HKD 150.3 million as of December 31, 2022, representing a decrease of approximately 5.2%[26]. - The company's equity decreased to HKD 124.5 million as of June 30, 2023, from HKD 131.6 million as of December 31, 2022[26]. - Non-current assets decreased to HKD 31,953,000 as of June 30, 2023, from HKD 36,318,000 at the end of 2022[80]. - Current assets increased slightly to HKD 110,559,000 from HKD 106,969,000 at the end of 2022, primarily due to an increase in trade and other receivables[80]. - Trade payables as of June 30, 2023, totaled HKD 9,554,000, an increase of 13.5% from HKD 8,425,000 as of December 31, 2022[112]. Corporate Actions and Governance - The company does not recommend the payment of any interim dividend for the six months ended June 30, 2023, consistent with the previous year[10]. - The company announced the termination of the proposed acquisition of a 30% stake in Hubei Kangshizhen Pharmaceutical Technology Co., Ltd. on July 5, 2023[38]. - The company has no significant capital commitments or contingent liabilities as of June 30, 2023[36]. - The company has complied with the corporate governance code, except for the deviation where the Chairman and CEO roles are held by the same person[63]. - The audit committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards[66]. Future Plans and Strategies - The company aims to diversify revenue sources and reduce business risks by improving marketing strategies and expanding its customer base[21]. - The company plans to enhance overall production efficiency through a one-stop printing platform to prepare for future growth opportunities[21]. - The company plans to utilize the net proceeds for pharmaceutical-related projects by December 31, 2023[47]. Shareholder Information - TeraMetal Holdings Limited acquired 750,000,000 shares, representing 73.53% of the issued shares, for a total consideration of HKD 196.05 million[22]. - The company's public float was restored following a placement of up to 154,260,000 shares completed on August 1, 2023[51]. - The company's shares were suspended from trading on June 21, 2023, and resumed trading on August 2, 2023, after meeting the minimum public float requirement[115].

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，概不對因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 SMART GLOBE HOLDINGS LIMITED 竣 球 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1481） 截至2023年6月30日止六個月之 中期業績公告 財務概要 — 截至2023年6月30日止六個月，竣球控股有限公司（「本公司」）及其附屬公 司（統稱「本集團」）之收益約為45.6百萬港元（截至2022年6月30日止六個月： 約71.1百萬港元），較截至2022年6月30日止六個月減少約35.8%。 — 截至2023年6月30日止六個月，本公司擁有人應佔虧損約為5.5百萬港元（截 至2022年6月30日止六個月：虧損約2.4百萬港元）。 — 除稅後虧損增加乃主要由於：(i)客戶訂單減少及本集團的毛利較去年同期 下降；(ii)與截至2023年6月30日止六個月開展的企業行動相關的法律及專 業費用增加；及(iii)中國的其他稅項增加。 ...

Financial Performance - Total revenue decreased by approximately 21.6% from HKD 167.9 million in FY21 to HKD 131.6 million in FY22, primarily due to reduced orders from customers in Hong Kong and the United States[11]. - The net loss for FY22 was approximately HKD 16.5 million, compared to a profit of approximately HKD 1.6 million in FY21, attributed to increased paper costs and intensified market competition[11]. - The overall gross margin dropped from approximately 15.8% in FY21 to about 5.8% in FY22, mainly due to rising paper costs that could not be passed on to customers[17]. - Revenue from the book products segment accounted for approximately 95.0% of total revenue in FY22, amounting to about HKD 125.0 million, down from HKD 155.9 million in FY21[11]. - The company reported a loss attributable to shareholders of approximately HKD 16.5 million for the fiscal year 2022, compared to a profit of HKD 1.649 million in 2021[58]. - The earnings per share for fiscal year 2022 was a loss of 1.64 HKD cents, compared to a profit of 0.16 HKD cents in 2021[58]. - Total revenue for the fiscal year 2022 was HKD 131.647 million, a decline of 21.6% from HKD 167.899 million in 2021[60]. Operational Efficiency - The company plans to tighten operational expenditure controls and streamline production processes to maintain competitiveness in the current economic environment[10]. - The company will continue to invest in capacity enhancement to improve overall production efficiency in preparation for future opportunities and potential growth[13]. - The company has adopted strategic measures to lower gross margins in order to gain more market share amidst fierce industry competition[7]. - Distribution costs decreased by approximately 20.4% from approximately HKD 9.5 million in FY21 to approximately HKD 7.6 million in FY22, mainly due to a decline in transportation and freight costs of approximately HKD 1.3 million[21]. - Administrative expenses increased by approximately 20.2% from approximately HKD 15.0 million in FY21 to approximately HKD 18.1 million in FY22, primarily due to an increase in legal and professional fees of approximately HKD 2.9 million[22]. - Financing costs decreased by approximately 41.2% from approximately HKD 0.3 million in FY21 to approximately HKD 0.2 million in FY22, mainly due to a reduction in interest expenses on lease liabilities[23]. Cash and Investments - As of December 31, 2022, the group held cash and bank balances of approximately HKD 57.1 million, an increase of approximately 75.8% from approximately HKD 32.5 million as of December 31, 2021[32]. - The group had no significant capital commitments or contingent liabilities as of December 31, 2022[39][40]. - The group plans to utilize the net proceeds from the placement for potential developments related to the pharmaceutical sector[28]. Employee and Workforce Management - The total employee cost for the fiscal year 2022 was approximately HKD 42.4 million, a decrease of 21% from HKD 53.9 million in fiscal year 2021[45]. - As of December 31, 2022, the group had a total of 319 employees, down from 334 employees in 2021, indicating a reduction of about 4.5%[45]. - The employee turnover rate for the reporting period is 21%, with male turnover at 13% and female turnover at 32%[107]. - 96% of employees received training during the reporting period, with an average training hours per employee of 0.87[115]. - The average training hours for male employees is 0.76, while female employees average 1.04 hours[115]. - The company recorded 7 work-related injuries during the reporting period, with no fatalities reported[110]. Environmental, Social, and Governance (ESG) Initiatives - The board of directors has established several dedicated committees to manage environmental, social, and governance (ESG) matters within the group[62]. - The company emphasizes the importance of effective management of environmental and social issues as a key factor for long-term success in a rapidly changing environment[62]. - The group emphasizes sustainable development and corporate social responsibility, balancing profitability with environmental and social impacts[63]. - The ESG report covers the group's performance in environmental protection, human resources, operational practices, and community engagement for the fiscal year ending December 31, 2022[65]. - The group has identified significant ESG issues that could impact its operations and financial performance, including greenhouse gas emissions and waste management[76]. - The company achieved a reduction in nitrogen oxide emissions by 18%, sulfur oxide emissions by 19%, and particulate matter emissions by 18% compared to the previous reporting period[80]. - Total greenhouse gas emissions decreased from 7,474.89 tons of CO2 equivalent in 2021 to 4,771.85 tons in 2022, representing a 36% reduction in emissions density[82]. - The company generated a total of 28.36 tons of hazardous waste in 2022, down from 43.16 tons in 2021, achieving a 34% reduction in hazardous waste density[85]. - The total amount of packaging materials used decreased significantly from 1,468.72 tons in 2021 to 604.84 tons in 2022, resulting in a packaging material density reduction from 0.05 tons/m² to 0.02 tons/m²[87]. - The company has fully complied with all applicable laws and regulations regarding air emissions and waste management during the reporting period[84]. Corporate Governance - The company adheres to high corporate governance standards to protect shareholder interests and enhance corporate value[150]. - The board consists of three executive directors and three independent non-executive directors, with full attendance recorded for board meetings[165]. - The company encourages all directors to attend at least one training course related to corporate governance each fiscal year[164]. - The board is responsible for overseeing the overall strategy and development of the company, as well as monitoring financial performance[157]. - The company has implemented a policy to reimburse directors for training expenses related to corporate governance and internal controls[164]. - The board has established guidelines to clearly define the responsibilities of the board and management[154]. - The company has mechanisms in place to ensure the board receives independent viewpoints and opinions, with annual reviews of these mechanisms[174].

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，概不對因本公告全部或任何部分內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 SMART GLOBE HOLDINGS LIMITED 竣 球 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1481） 截至2022年12月31日止年度之年度業績公告 財務概要 — 竣球控股有限公司（「本公司」）及其附屬公司（統稱「本集團」）截至2022年12 月31日止年度（「22財年」）之收益約為131.6百萬港元（截至2021年12月31日 止年度（「21財年」）：約167.9百萬港元），較21財年減少約21.6%。 — 本集團22財年之虧損約為16.5百萬港元（21財年：溢利約1.6百萬港元），主 要乃由於(i)22財年全年紙張成本增加，而該成本增加無法轉移至客戶；(ii) 市場競爭激烈導致銷量下降及向客戶提供較低的價格；及(iii)行政開支增加。 — 22財年每股基本虧損約為1.64港仙（21財年：每股基本盈利0.16港仙）。 — 本公司董事（「董事」）會（「董事會 ...

Financial Performance - For the six months ended June 30, 2022, the total revenue of the company was approximately HKD 71.1 million, a decrease of about 8.7% from approximately HKD 77.8 million for the same period in 2021[6]. - The company recorded a loss attributable to owners of approximately HKD 2.4 million for the six months ended June 30, 2022, compared to a profit of approximately HKD 2.3 million for the same period in 2021[6]. - The basic loss per share for the six months ended June 30, 2022, was approximately HKD 0.24, compared to a basic earnings per share of approximately HKD 0.23 for the same period in 2021[6]. - The overall gross profit margin decreased from approximately 18.3% for the six months ended June 30, 2021, to approximately 13.5% for the same period in 2022[15]. - Gross profit for the same period was HKD 9,599 thousand, down 32.5% from HKD 14,251 thousand year-on-year[76]. - The company reported a loss before tax of HKD 2,370 thousand compared to a profit of HKD 2,757 thousand in the previous year[76]. - Total comprehensive loss for the period amounted to HKD 5,529 thousand, contrasting with a comprehensive income of HKD 3,298 thousand in the prior year[76]. Revenue Breakdown - Revenue from the book products segment accounted for approximately 96.8% of total revenue, with segment revenue of approximately HKD 68.8 million, remaining relatively stable compared to approximately HKD 69.4 million in the same period of 2021[11]. - Revenue for the six months ended June 30, 2022, was HKD 71,057 thousand, a decrease of 8.5% from HKD 77,821 thousand in the same period of 2021[76]. - Revenue from book products was HKD 68,764,000, while revenue from paper products and packaging was HKD 2,293,000 for the six months ended June 30, 2022[96]. - Revenue from external customers in Hong Kong increased to HKD 34,034,000 from HKD 30,170,000, representing a growth of 6%[99]. Expenses and Costs - Administrative expenses increased by approximately 12.2% to approximately HKD 8.0 million for the six months ended June 30, 2022, from approximately HKD 7.1 million for the same period in 2021[19]. - The total employee cost for the six months ended June 30, 2022, was approximately HKD 23.8 million, compared to HKD 22.2 million for the same period in 2021[43]. - Financing costs decreased by over 42.8% to approximately HKD 0.1 million for the six months ended June 30, 2022, from approximately HKD 0.2 million for the same period in 2021[22]. Assets and Liabilities - As of June 30, 2022, the group held cash and bank balances of approximately HKD 36.1 million, an increase of about 11.3% from HKD 32.5 million as of December 31, 2021[28]. - As of June 30, 2022, the group's current assets were approximately HKD 114.4 million, including inventory of about HKD 34.2 million and trade and other receivables of approximately HKD 40.9 million[28]. - The group's current liabilities as of June 30, 2022, were approximately HKD 26.9 million, with trade and other payables accounting for about HKD 23.7 million[29]. - The group's net current assets decreased by approximately HKD 2.3 million or about 2.5% to approximately HKD 87.5 million as of June 30, 2022[29]. - The group's debt-to-equity ratio was approximately 2.5% as of June 30, 2022, compared to 3.0% as of December 31, 2021[30]. - The company’s total liabilities increased to HKD 26,895 thousand from HKD 23,564 thousand as of December 31, 2021[80]. - The net asset value decreased to HKD 128,352 thousand from HKD 133,881 thousand at the end of 2021[80]. Shareholder Information - As of June 30, 2022, the major shareholder "精智" holds 675,000,000 shares, representing 67.5% of the company's issued share capital[55]. - The shareholder "Fortune Corner" owns 75,000,000 shares, accounting for 7.5% of the company's issued share capital[55]. Corporate Governance - The company has complied with the corporate governance code, except for the deviation where the Chairman and CEO roles are held by the same individual[61]. - All independent non-executive directors attended the annual general meeting held on May 13, 2022, ensuring a fair understanding of shareholder opinions[64]. - The audit committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards[67]. - The company has adopted the trading standards outlined in the listing rules for securities transactions by directors[66]. Investments and Acquisitions - The group did not engage in any significant investments or acquisitions during the six months ended June 30, 2022[40][42]. - The group acquired property, plant, and equipment for approximately HKD 1.1 million for the six months ended June 30, 2022, down from HKD 7.0 million for the same period in 2021[35]. - The company has entered into a subscription agreement to acquire 30% of Hubei Kangshizhen Pharmaceutical Technology Co., Ltd. for HKD 30,000,000, with a conditional payment of HKD 7,000,000 at an annual interest rate of 5%[124]. - The company raised approximately HKD 21,000,000 from the placement of 20,000,000 new shares at HKD 1.05 per share, which represents about 1.96% of the issued share capital post-placement[125]. Compliance and Review - The financial statements for the six months ending June 30, 2022, have been reviewed and found to comply with the relevant accounting standards[72]. - The company has not reported any significant issues that would indicate non-compliance with the accounting standards during the review[72]. - The company continues to focus on its core business of printing book products and packaging, with no significant changes in accounting policies affecting financial performance[95].

Financial Performance - Total revenue increased by approximately 32.0% from about HKD 127.2 million in FY20 to about HKD 167.9 million in FY21, primarily due to increased sales in the book products segment in the US and Hong Kong[24]. - Net profit decreased by approximately 89.7%, from about HKD 16.0 million in FY20 to about HKD 1.6 million in FY21, attributed to rising labor and paper costs, and a shift to more competitive pricing strategies[24]. - The book products segment accounted for approximately 92.9% of total revenue, reaching about HKD 155.9 million in FY21, up from about HKD 105.7 million in FY20[24]. - Gross margin decreased from approximately 36.1% in FY20 to about 15.8% in FY21, primarily due to increased labor costs, paper costs, and a pricing strategy aimed at gaining market share[31]. - Other income fell by 35.0% from approximately HKD 0.7 million in FY20 to about HKD 0.5 million in FY21, mainly due to a reduction in government subsidies[32]. - Distribution costs rose by approximately 35.3% from about HKD 7.0 million in FY20 to approximately HKD 9.5 million in FY21, driven by increased transportation and freight costs due to higher sales volume[35]. - Administrative expenses increased by approximately 15.0% from about HKD 13.1 million in FY20 to approximately HKD 15.0 million in FY21, mainly due to higher office, maintenance, and depreciation costs[36]. - Net profit for FY21 was approximately HKD 1.6 million, a significant decrease from approximately HKD 16.0 million in FY20[41]. - Cash and bank balances decreased by approximately 36.1% from about HKD 50.8 million as of December 31, 2020, to approximately HKD 32.5 million as of December 31, 2021[47]. - Current assets decreased by approximately 4.9% to about HKD 89.8 million as of December 31, 2021, from approximately HKD 94.4 million as of December 31, 2020[48]. - Capital expenditure for FY21 was approximately HKD 8.1 million, up from HKD 4.3 million in FY20[53]. - The company did not make any significant acquisitions or disposals of subsidiaries, associates, or joint ventures in FY21[61]. - The group reported earnings per share of HKD 0.16 for the fiscal year 2021, a decrease from HKD 1.60 in 2020[75]. Employee and Workforce - The total number of employees in the group as of December 31, 2021, was 334, an increase from 326 in 2020[62]. - Employee costs for the fiscal year 2021 amounted to approximately HKD 53.9 million, compared to about HKD 24.5 million in the fiscal year 2020, reflecting a significant increase[62]. - The number of employees at the Heyuan factory as of December 31, 2021, was 322, up from 315 in 2020[63]. - Employee turnover rate for the reporting period was 24%, with male turnover at 20% and female turnover at 28%[129]. - The turnover rate for employees under 25 years old was 43%, while for those aged 30-50 it was 16%[129]. - The workforce consisted of 334 full-time employees, with a gender distribution of 44% male and 56% female[126]. - The employee training completion rate by gender is 55% male and 45% female[136]. - Average training hours per employee are 0.66 for males and 0.74 for females[136]. - The average training hours for junior employees is 0.85, for intermediate employees is 0.49, and for management is 0.87[136]. - The company recorded 9 work-related injuries during the reporting period, with no fatalities, resulting in a total of 139 lost workdays[132]. - The company has implemented safety measures and training programs, achieving ISO 45001 certification for occupational health and safety[132]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of prudent environmental and social management for sustainable economic growth[85]. - The board of directors is responsible for overseeing the company's ESG-related risks and opportunities, and has established dedicated committees for managing ESG matters across business segments[85]. - The ESG working group, composed of senior management, assists the board in executing ESG strategies and monitoring performance, reporting biannually to the board[85]. - The company has conducted a comprehensive review of its existing policies and practices in preparing the ESG report, covering operations in its factory in Heyuan, Guangdong, and its Hong Kong office[81]. - The report outlines the company's commitment to balancing profitability with environmental and social impacts, engaging with stakeholders to meet their expectations[81]. - The company has identified significant ESG issues that may impact its operations and financial performance, including those related to its offices and factories in Hong Kong and China[95]. - The company aims to continuously improve its ESG strategies and maintain close communication with stakeholders to enhance product and service quality[90]. - The ESG report is prepared in accordance with global, local, and industry standards, including the Hong Kong Stock Exchange's guidelines[83]. - The company achieved a reduction in nitrogen oxide emissions from 21,222.30 grams in 2020 to 15,390.15 grams in 2021, representing a decrease of approximately 27%[101]. - Sulfur oxide emissions decreased from 277.54 grams in 2020 to 97.02 grams in 2021, a reduction of about 65%[101]. - The total greenhouse gas emissions from vehicle fuel combustion dropped from 44.557 tons of CO2 in 2020 to 15.576 tons in 2021, a decrease of approximately 65%[102]. - Carbon emissions from purchased electricity decreased from 8,046.42 tons in 2020 to 7,457.03 tons in 2021, a reduction of approximately 7%[106]. - The total hazardous waste generated increased from 9.61 tons in 2020 to 43.16 tons in 2021, an increase of approximately 348%[111]. - The total amount of packaging materials used rose from 948.25 tons in 2020 to 1,468.72 tons in 2021, an increase of about 55%[113]. - The company aims to reduce electricity consumption by 10% over the next three years, targeting a more environmentally friendly working environment[106]. - The hazardous waste density increased from 0.00036 tons per square meter in 2020 to 0.00160 tons per square meter in 2021[111]. - Water consumption decreased from 181,834.00 cubic meters in 2020 to 166,907.40 cubic meters in 2021, achieving a reduction of approximately 8.5%[118]. - The density of water consumption per square meter improved from 6.68 cubic meters/square meter in 2020 to 6.13 cubic meters/square meter in 2021, a decrease of about 8.5%[118]. - The company aims to maintain or reduce total water consumption to a density of 6.0 cubic meters/square meter in the next reporting year[118]. Corporate Governance - The company has adhered to the corporate governance code during the fiscal year 2021, with exceptions noted regarding the appointment terms of independent non-executive directors and the dual role of the chairman and CEO[181]. - The board is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[180]. - The board has reviewed the internal control system to ensure its effectiveness and adequacy, focusing on financial, operational, and risk management controls[182]. - The company has implemented anti-corruption policies and measures to prevent bribery, extortion, fraud, and money laundering[172]. - Key performance indicators related to anti-corruption training provided to directors and employees have been established[175]. - The company has focused its community investment efforts on areas such as education, health, and environmental issues[177]. - Resources allocated to community investment initiatives have been documented, emphasizing the company's commitment to social responsibility[178]. - The board has a structured approach to monitor and approve significant transactions and conflicts of interest involving major shareholders or directors[188]. - Continuous professional development programs for directors are encouraged to ensure they remain informed about their responsibilities and regulatory changes[190]. - The company has made appropriate insurance arrangements for legal liabilities faced by its directors and senior officers[187]. - The board consists of three executive directors and three independent non-executive directors, with all directors attending at least one board meeting during the fiscal year 2021[196]. - All independent non-executive directors have confirmed their independence according to listing rules, ensuring compliance with financial reporting standards[197]. - The company encourages continuous professional development for directors, ensuring they stay updated on corporate governance practices[195]. - The board has adopted a diversity policy, reviewing its composition annually to ensure a balance of skills and perspectives[200]. - The company has implemented a policy to reimburse directors for training expenses related to corporate governance and internal controls[195]. - The board members possess diverse backgrounds in management, accounting, finance, marketing, production, and procurement, aligning with the company's business needs[199]. - The company ensures that changes in board composition do not disrupt its operations, maintaining necessary skills and integrity among members[200]. - The board's diversity policy considers various factors, including gender, age, cultural background, and professional experience[200]. - The company has appointed a new chairman for the nomination committee effective December 31, 2021, reflecting changes in board leadership[196]. - All independent non-executive directors attended the annual general meeting held on May 7, 2021, demonstrating their commitment to shareholder engagement[197]. Community Engagement and Social Responsibility - The company donated HKD 80,000 to the Hong Kong Aberdeen District Community Service Centre, which provides welfare and social services to the elderly, children, youth, and families in the South District of Hong Kong[154]. - The company has established a whistleblowing policy to encourage employees to report any suspicious fraudulent activities, ensuring protection against retaliation for good faith reports[150]. - The company strictly prohibits the use of forced labor and child labor, with no incidents reported during the reporting period[139]. - The company has not faced any lawsuits related to intellectual property infringement during the reporting period[149]. - The company provided anti-corruption training for employees during the reporting period, with no known or reported cases of corruption or money laundering[151].

Financial Performance - For the six months ended June 30, 2021, the group's revenue was approximately HKD 77.8 million, an increase of about 39.1% compared to HKD 56.0 million for the same period in 2020[15]. - The profit attributable to owners for the six months ended June 30, 2021, was approximately HKD 2.3 million, a decrease of about 8.4% from HKD 2.5 million for the same period in 2020, primarily due to intense market competition and rising production costs[15]. - The basic earnings per share for the six months ended June 30, 2021, was approximately HKD 0.23, compared to HKD 0.25 for the same period in 2020[15]. - The gross profit margin decreased from approximately 28.0% for the six months ended June 30, 2020, to approximately 18.3% for the same period in 2021, mainly due to reduced product prices and increased production costs[25]. - The net profit for the announcement period was approximately HKD 2.3 million[35]. - The company reported a total comprehensive income of HKD 3,298,000 for the six months ended June 30, 2021[112]. - The operating profit before tax for the six months ended June 30, 2021, was HKD 2,757,000, down 23% from HKD 3,580,000 in the previous year[120]. - The net cash used in operating activities for the six months ended June 30, 2021, was HKD 16,237,000, compared to a cash generated of HKD 4,086,000 in the same period of 2020[120]. Revenue Breakdown - Revenue from the book products segment accounted for approximately 89.2% of total revenue, with segment revenue increasing by about 43.8% to approximately HKD 69.4 million from HKD 48.3 million in the same period last year[20]. - Revenue for the six months ended June 30, 2021, was HKD 77,821,000, representing a 39% increase from HKD 55,953,000 in the same period of 2020[129]. - The revenue from book products was HKD 69,419,000, up 44% from HKD 48,290,000 year-over-year[129]. - Revenue from external customers in Hong Kong increased to HKD 30,170,000, a 93% increase from HKD 15,604,000 in the previous year[131]. - Revenue from the United States decreased to HKD 26,870,000, down 17% from HKD 22,932,000 year-over-year[131]. Expenses and Costs - Distribution costs increased by approximately 39.1% to about HKD 4.5 million from HKD 3.2 million, primarily due to increased transportation and freight costs[29]. - Administrative expenses increased by approximately 3.5% to about HKD 7.1 million from HKD 6.9 million, with no significant fluctuations[32]. - The total employee cost for the six months ended June 30, 2021, was approximately HKD 22.2 million, an increase from approximately HKD 13.9 million for the same period in 2020[61]. - The depreciation of property, plant, and equipment increased to HKD 3,668,000 from HKD 2,878,000 in the previous year[120]. Assets and Liabilities - As of June 30, 2021, the company had cash and bank balances of approximately HKD 21.5 million, a decrease of about 57.7% from approximately HKD 50.8 million as of December 31, 2020, primarily due to increased purchases of raw materials, properties, and equipment, as well as dividend payments[40]. - The company's current assets as of June 30, 2021, were approximately HKD 126.2 million, which included inventory of approximately HKD 44.4 million and trade and other receivables of approximately HKD 59.9 million[40]. - The company's current liabilities as of June 30, 2021, were approximately HKD 38.5 million, resulting in a net current asset value decrease of about HKD 6.7 million or approximately 7.1%[41]. - The company's total assets as of June 30, 2021, were HKD 126,246,000, compared to HKD 117,280,000 as of December 31, 2020[102]. - The total trade and other receivables as of June 30, 2021, amounted to HKD 59,925,000, an increase of 37.5% from HKD 43,598,000 as of December 31, 2020[143]. Taxation and Dividends - The company's income tax expense decreased by 56.1% from approximately HKD 1.1 million for the six months ended June 30, 2020, to approximately HKD 0.5 million for the six months ended June 30, 2021, mainly due to a reduction in taxable profits during the announcement period[34]. - The income tax expense for the six months ended June 30, 2021, was HKD 480,000, a decrease of 56.1% from HKD 1,094,000 in the same period of 2020[135]. - The company did not declare any interim dividends for the six months ended June 30, 2021[50]. - The company declared a final dividend of HKD 0.005 per share for the year ended December 31, 2020, totaling HKD 5,000,000, compared to HKD 4,000,000 for the previous year, marking a 25% increase[137]. Corporate Governance - The company confirmed compliance with the corporate governance code, except for certain deviations regarding the appointment of non-executive directors and the chairperson's role[77][80]. - All independent non-executive directors attended the annual general meeting held on May 6, 2021, ensuring they understood shareholders' opinions[81]. - The company has adopted the trading code of conduct as per the listing rules, and all directors confirmed compliance for the six months ending June 30, 2021[84]. Shareholder Information - The major shareholders include 精智有限公司 holding 675,000,000 shares, representing 67.5% of the company's issued share capital, and Fortune Corner Holdings Limited holding 75,000,000 shares, representing 7.5%[67][68]. - The total issued and paid-up share capital as of June 30, 2021, is 1,000,000,000 shares at HKD 0.01 each[152].