Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately RMB 1,434.9 million, a decrease of about 1.4% or RMB 20.8 million compared to the same period in 2023[8]. - The gross profit for the same period was approximately RMB 281.9 million, reflecting a decline of about 27.3% or RMB 105.6 million year-over-year[8]. - The gross profit margin decreased to approximately 19.6%, down from 26.6% in the previous year, representing a reduction of about 7.0%[8]. - The profit attributable to owners of the company was approximately RMB 50.6 million, a decrease of about RMB 48.7 million compared to the previous year[8]. - Revenue from the electronic cigarette segment was RMB 770.5 million, a slight increase of 0.2% from RMB 768.8 million in 2023, while revenue from paper cigarette packaging decreased by 3.3% to RMB 664.4 million[26]. - Distribution costs increased by approximately 10.2% to RMB 83.3 million, driven by higher employee costs to expand the sales team and promote electronic cigarette products[28]. - Administrative expenses rose by about 6.6% to RMB 156.2 million, primarily due to increased rental and employee costs, especially in the R&D department[29]. - The company's attributable profit for the year was approximately RMB 50.6 million, a decrease of about RMB 48.7 million compared to the previous year[35]. Market and Strategic Focus - The Asia-Pacific region is identified as a key market for the electronic cigarette industry, showing strong growth opportunities in 2024[12]. - The company has undergone a strategic transformation to focus exclusively on the e-cigarette industry, marking a significant shift from its previous diversified operations[19]. - The global e-cigarette market reached a valuation of $24.6 billion in 2024, driven by changing consumer behaviors and technological advancements[17]. - The company successfully entered the European market, which is a cornerstone of its global expansion strategy, unlocking new market opportunities and revenue channels[19]. - The company is committed to sustainable business performance and maximizing shareholder returns through its focused operations in the high-growth e-cigarette sector[19]. - The company is focusing on targeted capital allocation and enhancing R&D to strengthen its market position and technological capabilities[55]. - The strategic expansion acknowledges the vast development potential in overseas markets, allowing the company to leverage emerging global opportunities[55]. Operational Efficiency - The average turnover days for trade receivables increased from approximately 68 days in 2023 to about 74 days in 2024[8]. - The average turnover days for trade payables decreased significantly from approximately 202 days in 2023 to about 124 days in 2024[8]. - The average inventory turnover days improved from approximately 74 days in 2023 to about 51 days in 2024[8]. - Trade and other receivables decreased by approximately 31.5% to RMB 361.5 million, mainly due to a reduction in trade receivables[36]. - Trade and other payables decreased by approximately 73.0% to RMB 211.9 million, primarily due to a significant reduction in trade payables[37]. Corporate Governance - The company has adhered to the corporate governance code as per the listing rules, ensuring compliance for the fiscal year ending December 31, 2024[67]. - The board of directors is committed to maintaining high standards of business ethics and corporate governance across all activities and operations[67]. - The independent non-executive directors have extensive experience in finance and management, contributing to effective oversight[64]. - The board consists of six members, including one executive director, two non-executive directors, and three independent non-executive directors[69]. - The board held a total of 7 meetings during the fiscal year ending December 31, 2024, with full attendance from all directors[78]. - The company has established a board diversity policy aimed at enhancing performance through a diverse board composition, considering skills, experience, and gender[91]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to minimize the impact on the environment by implementing cost-effective and eco-friendly printing technologies[125]. - The total greenhouse gas emissions decreased from 2,608.5 tons in 2023 to 2,012.6 tons in 2024, representing a reduction of approximately 22.7%[130]. - The company promotes water conservation and encourages the recycling of water to reduce wastewater generation[132]. - The company has obtained wastewater discharge permits for operations in Hubei and Guangdong provinces, ensuring compliance with national regulations[128]. - The company emphasizes the importance of stakeholder engagement to enhance its ESG performance[122]. - The company has a zero-tolerance policy towards corruption and has established reporting procedures for employees to report misconduct[104]. Human Resources and Employee Development - The company has implemented a comprehensive human resources management system to ensure compliance with local labor laws and promote a fair working environment[142]. - The total number of employees participating in training decreased from 1,582 in 2023 to 825 in 2024, representing a decline of 47.8%[148]. - The percentage of employees participating in training increased from 95.5% in 2023 to 97.1% in 2024[148]. - The company achieved zero work-related fatalities over the past three years, including the reporting year[146]. - The company strictly adheres to labor standards, with no violations related to child labor or forced labor during the reporting period[150]. Risk Management - The board is responsible for risk management and internal controls, ensuring compliance with applicable laws and regulations[100]. - The company has established a comprehensive risk management framework to identify, assess, and manage risks impacting business objectives[103]. - Major risks and uncertainties are detailed in the management discussion and analysis section of the annual report[102]. Shareholder Information - The company has established a dividend policy to provide stable dividends while retaining sufficient reserves for future development[96]. - The board will consider various factors, including actual and expected financial performance, when determining dividend amounts and frequency[97]. - The company's distributable reserves as of December 31, 2024, were approximately RMB 1,527 million, unchanged from RMB 1,527 million as of December 31, 2023[186].

Financial Performance - For the year ended December 31, 2024, Jia Yao Holdings Limited reported revenue of approximately RMB 1,434.9 million, a decrease of about 1.4% or RMB 20.8 million compared to the same period in 2023[2]. - The gross profit for the same period was approximately RMB 281.9 million, representing a decline of approximately 27.3% or RMB 105.6 million year-over-year[2]. - The gross profit margin decreased to approximately 19.6%, down from 26.6% in the same period last year, a reduction of about 7.0%[2]. - The profit attributable to the owners of the company was approximately RMB 50.6 million, a decrease of about RMB 48.7 million compared to the same period in 2023[2]. - Operating profit for the year was RMB 32.5 million, down from RMB 114.1 million in the previous year, indicating a significant decline[4]. - The company’s total comprehensive income for the year was RMB 48.4 million, down from RMB 136.4 million in the previous year[5]. - The company reported a net loss from financial assets of RMB 10.4 million, compared to a loss of RMB 8.4 million in the previous year[4]. - The company’s basic earnings per share for continuing operations decreased to RMB 0.010 in 2024 from RMB 0.093 in 2023, reflecting a decline in profitability[35]. Revenue Breakdown - Total revenue for the electronic cigarette segment was RMB 688.63 million, while the supporting services segment generated RMB 81.85 million, totaling RMB 770.48 million for the fiscal year ending December 31, 2024[23]. - Revenue from the electronic cigarette segment was RMB 770.5 million, showing a slight increase of 0.2% from RMB 768.8 million in the previous year[59]. - Revenue from paper cigarette packaging and other paper packaging decreased by approximately 3.3% to RMB 664.4 million, primarily due to a decline in sales prices[57]. - Giant Group's revenue for the year ending December 31, 2024, was RMB 664,434,000, a decrease of 3.5% compared to RMB 686,913,000 in 2023[45]. Asset and Liability Changes - The total assets as of December 31, 2024, were RMB 866.4 million, a decrease from RMB 1,465.2 million in the previous year[7]. - The total liabilities decreased significantly from RMB 925.22 million to RMB 374.14 million, indicating a reduction of approximately 59.6%[10]. - The total equity decreased from RMB 540.02 million to RMB 492.30 million, reflecting a decline of about 8.8%[10]. - Trade receivables decreased from RMB 351,617,000 in 2023 to RMB 209,938,000 in 2024, a decline of approximately 40.2%[36]. - Trade payables decreased significantly from RMB 425,748,000 in 2023 to RMB 128,786,000 in 2024, a reduction of about 69.8%[40]. - The company’s non-current assets in mainland China decreased to RMB 128,152,000 in 2024 from RMB 241,261,000 in 2023, indicating a significant reduction in asset value[26]. Cost and Expense Management - The company is focused on improving operational efficiency and reducing administrative expenses, which decreased from RMB 114.46 million to RMB 84.34 million, a reduction of approximately 26.4%[23]. - Distribution costs for the electronic cigarette segment were RMB 57.12 million, which is an increase from RMB 38.79 million in the previous year, representing a rise of approximately 47.0%[23]. - Administrative expenses rose by about 6.6% from RMB 146.5 million to RMB 156.2 million for the year ending December 31, 2024, mainly driven by increased rental and employee costs, particularly for R&D personnel recruitment[61]. - Employee benefit expenses rose to RMB 164,192,000 in 2024, compared to RMB 140,182,000 in 2023, reflecting an increase of approximately 17.1%[28]. Strategic Initiatives - The company plans to continue expanding its electronic cigarette product line and enhance its research and development efforts in related technologies[22]. - The company plans to continue its market expansion and product development strategies, focusing on enhancing its technological capabilities and exploring new market opportunities[1]. - The company is focusing on expanding its international business and enhancing geographical diversification strategies to adapt to changing market conditions[52]. - The group is focusing on enhancing its e-cigarette division through targeted capital allocation and increased R&D investment[84]. - The strategic framework emphasizes innovation while carefully managing resource allocation for new product development[85]. Market and Economic Outlook - The electronic cigarette industry market value reached USD 24.6 billion in 2024, reflecting complex market dynamics and consumer behavior changes[46]. - The global e-cigarette market is projected to reach a valuation of $26.42 billion by 2025, with a compound annual growth rate (CAGR) of 11.7%[83]. - By 2029, the market value is expected to increase to $42.8 billion, accelerating to a CAGR of 12.8%[83]. - China's economic growth is projected at 4.6% for 2025 and slightly slowing to 4.5% in 2026, reflecting a cautious expansion amid structural adjustments and external challenges[82]. Dividend and Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2024[2]. - The board does not recommend the payment of a final dividend for the year ending December 31, 2024, to focus on reinvestment in the e-cigarette business[91]. - The company reported a special dividend of RMB 166,331,000, equivalent to RMB 0.278 per share, approved at the special shareholders' meeting on January 6, 2025[43]. Compliance and Governance - The company’s audit committee has reviewed the annual performance, ensuring compliance with applicable accounting standards and full disclosure[90]. - The financial statements for the year ending December 31, 2024, have been verified by PwC, but no assurance has been provided[93]. - The annual general meeting is scheduled for June 20, 2025, with a suspension of share transfer registration from June 17 to June 20, 2025[92].

每股收益每股净资产每股经营性现金流每股资本公积金每股未分配利润净资产收益率毛利率净利润现金 含量营业收入同比净利润同比扣非净利润同比经营性现金流同比资产负债率流动比率速动比率现金比率 按产品按行业按地区 ...

JIA YAO HOLDINGS LIMITED 嘉耀控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號：01626 中 期 報 告 0 | --- | --- | |--------------------------------|-------| | | | | 骗耀控股有限公司／2024中期報告 | | | 目 錄 | | | 財務概要 | 2 | | 公司資料 | 3 | | 主席報告書 | 4 | | 管理層討論及分析 | 5 | | 企業管治及其他資料 | 12 | | 簡明綜合全面收益表 | 16 | | 簡明綜合資產負債表 | 17 | | 簡明綜合權益變動表 | 19 | | 簡明綜合現金流量表 | 20 | | 簡明綜合中期財務資料附註 | 21 | 嘉耀控股有限公司(Γ本公司」)董事([董事])會([董事會])欣然公佈本公司及其附屬公司(統稱「本集團J)截 至二零二四年六月三十日止六個月未經審核簡明綜合中期業績·連同二零二三年同期之比較數字。 � 截至二零二四年六月三十日止六個月之收益較二零二三年同期增加約41.1%或人民幣216.2百萬元至約 人民幣742.8 百萬元。 � 截至 ...

Revenue and Profitability - Revenue for the six months ended June 30, 2024, increased by approximately 41.1% or RMB 216.2 million to approximately RMB 742.8 million compared to the same period in 2023[1] - Gross profit for the same period rose by about 28.9% or RMB 34.5 million to approximately RMB 153.6 million, while the gross profit margin decreased by approximately 1.9% to about 20.7%[1] - Profit attributable to owners of the company decreased by approximately 29.8% or RMB 6.3 million to approximately RMB 14.8 million compared to the same period in 2023[1] - The company reported a net profit of RMB 27.2 million for the six months ended June 30, 2024, compared to RMB 31.5 million in the same period of 2023[2] - Earnings per share for the period were RMB 0.025, down from RMB 0.035 in the same period of 2023[3] - The net profit attributable to the owners of the company for the first half of 2024 was RMB 14,808 thousand, down from RMB 21,094 thousand in the same period of 2023, resulting in a basic earnings per share of RMB 0.025 compared to RMB 0.035[19] - The diluted earnings per share for the six months ended June 30, 2024, is RMB 0.024, down from RMB 0.034 in the same period of 2023, indicating a decline of about 29.4%[24] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 1,428.8 million, a decrease from RMB 1,465.2 million as of December 31, 2023[4] - Total liabilities as of June 30, 2024, were RMB 900.3 million, compared to RMB 925.2 million as of December 31, 2023[5] - Cash and cash equivalents as of June 30, 2024, were RMB 254.9 million, down from RMB 311.2 million as of December 31, 2023[4] - Trade receivables as of June 30, 2024, amount to RMB 257,762,000, a decrease from RMB 341,617,000 as of December 31, 2023, reflecting a reduction of approximately 24.5%[26] - The total amount of trade and other payables as of June 30, 2024, is RMB 675,538,000, down from RMB 785,014,000 as of December 31, 2023, indicating a decrease of about 13.9%[28] - Trade and other receivables decreased by approximately 6.6% from RMB 527.5 million to RMB 492.8 million, primarily due to a reduction in trade receivables[47] Operational Performance - Operating profit for the six months ended June 30, 2024, was RMB 37.4 million, compared to RMB 35.3 million in the same period of 2023[2] - Operating expenses totaled RMB 713,502 thousand for the six months ended June 30, 2024, up from RMB 491,589 thousand in the prior year, reflecting increased costs associated with growth initiatives[17] - Distribution costs rose by approximately 93.1% from RMB 24.9 million to RMB 48.0 million, primarily due to increased employee costs and promotional expenses for self-developed electronic cigarette products[40] - Administrative expenses increased by approximately 28.7% from RMB 59.3 million to RMB 76.3 million, mainly due to higher employee costs and innovation and development costs for proprietary electronic cigarette products[41] Market and Segment Performance - The electronic cigarette segment generated revenue of RMB 412,623 thousand, while the paper packaging segment contributed RMB 330,142 thousand, indicating strong performance in both divisions[14] - The electronic cigarette segment contributed approximately RMB 412.6 million in revenue, reflecting a rapid growth rate of 50.0%[38] - The paper cigarette packaging and social product packaging segment generated revenue of approximately RMB 330.1 million, with a growth rate of 31.3%[38] - The group anticipates continued growth in the electronic cigarette market, supported by ongoing research and development efforts in new product technologies[12] - The electronic cigarette industry has seen significant global expansion, with China recognized as the largest producer and exporter of electronic cigarettes[31] Investments and Future Outlook - The group has invested approximately RMB 50.1 million in improving and developing production facilities and product design to drive innovation[34] - The group aims to enhance its core competitiveness to increase its market share in the electronic cigarette sector and become a one-stop company with proprietary brand products[59] - The group plans to strengthen its R&D capabilities to promote innovation and expand global distribution channels in response to the increasing demand and competition in overseas markets[59] - The group anticipates a 5% growth in the Chinese economy for 2024, an upward revision of 0.4% from previous forecasts[58] - The global electronic cigarette market is expected to continue expanding, with a focus on products featuring screens and environmentally friendly packaging becoming a new trend[58] Corporate Governance and Compliance - The company has established an Audit Committee responsible for reviewing and monitoring financial reporting processes, internal controls, and risk management systems[62] - The interim financial results for the six months ending June 30, 2024, have been reviewed by the Audit Committee, confirming compliance with applicable accounting standards and regulations[62] - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[57] Miscellaneous - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024[1] - The company has not adopted new accounting standards that are expected to have a significant impact on its financial performance, maintaining consistency with previous reporting periods[9] - The company has not provided any significant new product or technology developments in the disclosed content[30] - There are no major events that require disclosure since June 30, 2024, as per the board's knowledge[30] - The group employed 1,432 employees as of June 30, 2024, down from 1,656 employees as of December 31, 2023, indicating a reduction of about 13.5%[56] - Total employee costs for the six months ended June 30, 2024, were approximately RMB 116.6 million, compared to RMB 103.8 million for the same period in 2023, reflecting an increase of about 12.5%[56] - The group reported no significant contingent liabilities as of June 30, 2024, consistent with the situation as of December 31, 2023[54] - The company has recognized a provision for dividends amounting to RMB 30,634,000 for the six months ended June 30, 2024[25] - The company’s cash and cash equivalents have not been detailed in the provided content, but the overall liquidity position can be inferred from the trade and other payables[30] - The group has not engaged in any significant investments, acquisitions, or sales involving subsidiaries or joint ventures during the six months ended June 30, 2024[53] - The interim report will be sent to shareholders and published on the company's website and the Hong Kong Stock Exchange website at an appropriate time[64]

Economic Outlook - The global economy is expected to grow by 3.1% in 2024 and 3.2% in 2025, an increase of 0.2% from previous forecasts due to strong performances in the US and several emerging markets [9]. - China's economic growth forecast for 2024 has been raised by 0.4% to 4.6%, supported by recent monetary policy adjustments [10]. - The global electronic cigarette market size was approximately USD 18.3 billion in 2022 and is projected to expand to about USD 47 billion by 2030, with a compound annual growth rate of around 12.5% from 2023 to 2030 [98]. - The global economic outlook remains challenging, with the OECD forecasting a global economic growth of 2.9% for the year, highlighting the ongoing impact of high inflation and low growth prospects [124]. E-Cigarette Market - The global e-cigarette market revenue is projected to reach $26 billion in 2024, with a compound annual growth rate (CAGR) of 3.06% from 2024 to 2028 [11]. - China's e-cigarette market revenue is expected to reach $1.2 billion in 2024, with a CAGR of 3.61% from 2024 to 2028 [12]. - The electronic cigarette segment generated revenue of RMB 768.8 million, accounting for about 52.8% of the total revenue for the reporting year [103]. - The electronic cigarette segment's revenue surged by 254.3% to RMB 768.8 million in 2023, compared to RMB 217.0 million in 2022 [138]. - The company plans to continue investing in the electronic cigarette business to capture market opportunities and enhance long-term shareholder value [20]. - The company aims to enhance product development capabilities and expand product variety to tap into the significant potential of the international market [11]. - The company aims to strengthen its product development in the electronic cigarette sector to meet market trends and consumer preferences [40]. - The group has launched its own brand of electronic cigarettes, which has received positive customer recognition and achieved ideal sales growth during the reporting year [110]. Financial Performance - The company reported a total comprehensive income of RMB 136,410,000 for the year ended December 31, 2023, compared to RMB 11,690,000 for the previous year, indicating significant growth [24]. - The company reported a total revenue of RMB 1,455.7 million for the year ended December 31, 2023, compared to RMB 1,455.7 million in 2022, indicating no growth [74]. - The gross profit for the year was RMB 387.5 million, with a gross margin of approximately 26.6% [74]. - The basic earnings per share for the year ended December 31, 2023, was RMB 0.17, a substantial increase from RMB 0.01 in the previous year [24]. - The company reported a net profit attributable to shareholders of RMB 99,285 thousand for 2023, a significant increase from RMB 5,496 thousand in 2022, reflecting a growth of approximately 1,706% [90]. - The diluted earnings per share for 2023 was RMB 0.16, compared to RMB 0.01 in 2022, indicating a substantial improvement in profitability [90]. - The company achieved a pre-tax profit of RMB 166.98 million for the year, compared to RMB 18.27 million in the previous year, showing a substantial improvement [68]. - The effective tax rate for the company was 18.7% in 2023, down from 39.1% in 2022, due to tax incentives for high-tech enterprises [67]. Operational Efficiency - The company aims to enhance production efficiency and implement cost-cutting measures to capitalize on opportunities in the electronic cigarette market [100]. - The company plans to enhance the efficiency of its electronic cigarette production line by considering automation requirements during the product design phase [106]. - The group’s strategy includes optimizing processes and materials to enhance productivity and reduce production costs, contributing to improved gross margins over the past year [136]. - The group continues to enhance its core technology research and development efforts to improve management standards and operational efficiency [110]. Corporate Governance - The company has adhered to corporate governance standards as outlined in the listing rules for the fiscal year ending December 31, 2023 [16]. - The company has confirmed compliance with the trading standards for directors as per the listing rules for the fiscal year ending December 31, 2023 [17]. - The board consists of six directors, including both executive and independent non-executive members, ensuring a diverse governance structure [21]. Market Competition - The company maintains a cautious approach to developing its paper quality cigarette packaging business amid intense market competition [13]. - The group actively sought to integrate its core business and control costs in response to rising raw material prices, which have been a major factor affecting the manufacturing industry [108]. Investment and Assets - The company has invested in research and development, with additional deductions for R&D expenses amounting to RMB 4.6 million [68]. - The company’s assets in mainland China increased to RMB 243.9 million in 2023, up from RMB 201.2 million in 2022, indicating growth in regional investments [75]. - The total assets of the company as of December 31, 2023, were approximately RMB 1,465.2 million, compared to RMB 1,072.8 million in the previous year [186]. - The total equity increased to approximately RMB 540.0 million, up from RMB 382.4 million in the previous year [187]. Employee and Operational Costs - Administrative expenses for the year were RMB 79,478,000, impacting the overall profitability of the company [37]. - Distribution costs rose by approximately 83.9% from RMB 41.1 million in 2022 to RMB 75.6 million in 2023, mainly due to increased employee costs and promotional expenses for self-developed electronic cigarette products [159]. - The group employed 1,656 employees as of December 31, 2023, up from 1,275 employees in the previous year, resulting in total employee costs of approximately RMB 232.9 million [175]. Export Performance - The company has seen a 31.5% year-on-year increase in cigarette exports, reaching approximately 71.9 million sticks valued at about USD 22.33 million from January to November 2023 [99]. - In the first half of 2023, the export value of electronic cigarettes from China increased by 29.9% year-on-year to $5.48 billion, driven by stable foreign trade policies and rising international demand [125]. - The total export value of electronic cigarettes and related products from January to November 2023 reached approximately RMB 71.3 billion, supported by government initiatives to facilitate exports [125]. Compliance and Reporting Standards - The group adopts the Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance [190]. - The group has not early adopted several new accounting standards that are expected to have no significant impact on the group [192].

Financial Performance - For the six months ended June 30, 2023, the company's revenue increased by approximately 28.7% or RMB 117.5 million to approximately RMB 526.6 million compared to the same period in 2022[22]. - Gross profit for the same period increased by approximately 182.4% or RMB 77.0 million to approximately RMB 119.1 million[4]. - The profit attributable to owners of the company rose by approximately RMB 20.6 million to approximately RMB 21.1 million compared to the same period in 2022[23]. - In the first half of 2023, the company's revenue increased by 28.7% to approximately RMB 526.6 million, with a gross profit of RMB 119.1 million, up by approximately RMB 77.0 million compared to the same period last year[28]. - The electronic cigarette segment saw a remarkable growth of 377.5%, with revenue reaching RMB 275.1 million, compared to RMB 57.6 million in the previous year[40]. - The overall gross profit margin improved from approximately 10.3% to about 22.6%, primarily due to the high-profit contribution from the electronic cigarette segment[40]. - For the six months ended June 30, 2023, the gross profit margin increased to approximately 22.6%, up from about 10.3% in the same period of 2022[104]. - The company reported a diluted earnings per share of RMB 0.034 for the six months ended June 30, 2023, compared to RMB 0.001 for the same period in 2022[161]. Operational Efficiency - The average turnover days for trade receivables and bills increased from approximately 52 days to approximately 56 days[5]. - The average inventory turnover days decreased from approximately 92 days to approximately 84 days[24]. - Distribution costs rose by approximately 80.7% to RMB 24.9 million, mainly due to increased employee costs and promotional expenses for self-developed electronic cigarette products[41]. - Administrative expenses increased by approximately 111.3% to RMB 59.3 million, driven by higher employee costs and R&D expenses for self-developed electronic cigarette products[42]. - The total cost of sales, distribution costs, and administrative expenses for the six months ended June 30, 2023, amounted to RMB 491,589,000, compared to RMB 408,718,000 in the previous year[152]. Market and Business Development - The electronic cigarette business accounted for approximately 52.2% of total revenue, highlighting its importance as a growth driver[11]. - The company continues to enhance its manufacturing capabilities for electronic cigarettes and related value-added products, aiming to become a comprehensive supplier in the industry[11]. - Despite potential short-term impacts from government restrictions, the company believes there is still significant growth potential in the electronic cigarette market due to its relatively low penetration rate[18]. - The company is focusing on expanding its electronic cigarette business, particularly in overseas markets, while maintaining a cautious approach to market fluctuations[30]. - The company has established a solid customer base in several overseas markets, including the United States, New Zealand, and South Africa, capitalizing on significant international market opportunities[29]. - The company plans to allocate more resources to its e-cigarette business, particularly in the development of proprietary brand products, to capitalize on significant overseas market opportunities[92]. - The company aims to become a leading one-stop manufacturer and supplier of e-cigarettes, with expectations of continued revenue growth in this segment in the medium to long term[92]. - The company is adapting to the evolving global regulatory environment for e-cigarettes to facilitate global expansion[91]. Financial Position and Investments - The company's interest-bearing borrowings amounted to RMB 740 million as of June 30, 2023, an increase from RMB 650 million as of December 31, 2022[82]. - The total capital expenditure for the six months ended June 30, 2023, was approximately RMB 9.6 million, up from RMB 4.8 million for the same period in 2022[68]. - The company invested approximately RMB 25.9 million in improving and developing production facilities and product design during the reporting period[59]. - The company raised a maximum of HKD 180 million through a rights issue by issuing 300,000,000 shares at a subscription price of HKD 0.60 per share[72]. - As of June 30, 2023, the net proceeds from the rights issue were allocated as follows: HKD 119.34 million for business expansion in Hubei, HKD 29.25 million for brand development and market expansion in Shenzhen, and HKD 23.40 million for e-cigarette business development[73]. - The company acquired 60% of Shenzhen Southern Intelligent Control Technology Co., Ltd. for a cash consideration of RMB 6 million, with identifiable net assets valued at RMB 10.17 million[148]. - The newly acquired Southern Intelligent Control contributed revenue of RMB 9,483,000 and a net loss of RMB 574,000 from the acquisition date to June 30, 2023[164]. Employee and Compensation - The total employee cost for the six months ended June 30, 2023, was approximately RMB 1,038 million, compared to RMB 408 million for the same period in 2022[85]. - Employee benefits expenses increased significantly to RMB 103,833,000, up from RMB 40,799,000 in the previous year, reflecting a rise of approximately 154%[152]. - The company employed 1,699 staff as of June 30, 2023, up from 1,275 staff as of December 31, 2022[85]. - Key management personnel compensation increased to RMB 769,000 for the six months ended June 30, 2023, compared to RMB 720,000 in the same period of 2022[172]. - The company granted stock options to 21 selected employees for a total of 30,000,000 shares at an exercise price of HKD 1.00 per share[134]. Cash Flow and Assets - Current assets net amount was approximately RMB 178.8 million as of June 30, 2023, down from RMB 206.6 million as of December 31, 2022[46]. - The company's cash and cash equivalents were approximately RMB 168.6 million as of June 30, 2023, compared to RMB 266.6 million as of December 31, 2022[66]. - Cash and cash equivalents, net of restricted cash, were RMB 168,601,000 as of June 30, 2023, down from RMB 266,575,000 as of December 31, 2022, representing a decline of approximately 36.7%[131]. - Trade receivables as of June 30, 2023, amounted to RMB 145,144,000, a slight decrease from RMB 147,019,000 as of December 31, 2022[125]. - Total trade and other receivables increased to RMB 269,411,000 as of June 30, 2023, compared to RMB 214,231,000 as of December 31, 2022, reflecting a growth of approximately 25.7%[125]. - Inventory decreased to RMB 184,936,000 as of June 30, 2023, from RMB 194,766,000 as of December 31, 2022, indicating a reduction of about 5.1%[128]. - Trade payables decreased to RMB 221,194,000 as of June 30, 2023, from RMB 314,943,000 as of December 31, 2022, a reduction of approximately 29.7%[140]. - Total trade and other payables amounted to RMB 501,694,000 as of June 30, 2023, down from RMB 573,185,000 as of December 31, 2022, indicating a decrease of about 12.5%[140]. Taxation and Regulatory Environment - The company's income tax expense increased to approximately RMB 6.2 million for the six months ended June 30, 2023, compared to a tax credit of approximately RMB 0.1 million for the same period in 2022[44]. - The corporate income tax rate for Hubei Jinsanxia Printing Co., Ltd. remains at 15% for 2023, consistent with 2022, benefiting from high-tech enterprise status[195]. Environmental Commitment - The company is committed to environmental measures, implementing strict environmental indicators and controlling raw material inputs to provide high-quality, safe, and eco-friendly products[20].

Financial Performance - Revenue for the six months ended June 30, 2023, increased by approximately 28.7% or RMB 117.5 million to approximately RMB 526.6 million compared to the same period in 2022[2]. - Gross profit for the same period increased by approximately 182.4% or RMB 77.0 million to approximately RMB 119.1 million, resulting in a gross margin of approximately 22.6%, up from 10.3% in the prior year[2]. - Profit attributable to owners of the company increased by approximately RMB 20.6 million to approximately RMB 21.1 million compared to the same period in 2022[2]. - Operating profit for the six months ended June 30, 2023, was RMB 35.3 million, a significant increase from RMB 1.6 million in the same period last year[10]. - Total comprehensive income for the period was RMB 31.6 million, compared to RMB 1.3 million in the prior year[33]. - The company reported a net profit before tax of RMB 37.7 million, compared to RMB 0.6 million in the same period last year[10]. - Basic earnings per share for the period were RMB 6, with diluted earnings per share also at RMB 6[34]. - The group reported a significant increase in distribution costs, rising approximately 80.7% from RMB 13.8 million to RMB 24.9 million due to higher employee costs and promotional expenses for self-developed electronic cigarette products[133]. - Administrative expenses surged by about 111.3%, increasing from RMB 28.1 million to RMB 59.3 million, primarily driven by higher employee costs and R&D expenses for self-developed electronic cigarette products[134]. Assets and Liabilities - The total assets as of June 30, 2023, amounted to RMB 1,018.6 million, compared to RMB 1,072.8 million in the previous year[7]. - Total equity increased to RMB 392,731 thousand as of June 30, 2023, compared to RMB 382,412 thousand at the end of 2022, representing a growth of approximately 8.5%[36]. - Total liabilities decreased to RMB 625,901 thousand from RMB 690,377 thousand, indicating a reduction of about 9.3%[38]. - The company’s cash and cash equivalents decreased to RMB 168.6 million from RMB 266.6 million year-on-year[14]. - Trade and other receivables increased by approximately 25.8% from RMB 214.2 million as of December 31, 2022, to RMB 269.4 million as of June 30, 2023[108]. - The total trade and other payables decreased from RMB 573.2 million as of December 31, 2022, to RMB 501.7 million as of June 30, 2023[116]. - Trade receivables as of June 30, 2023, were RMB 145,144 thousand, slightly down from RMB 147,019 thousand as of December 31, 2022[64]. Business Operations - The company has engaged in the design, production, and sale of paper packaging for cigarettes and electronic products in China[18]. - The electronic cigarette segment generated revenue of RMB 275.1 million, accounting for 52.2% of the total revenue for the group[71]. - The electronic cigarette segment contributed significantly to revenue growth, with sales increasing by 377.5% to RMB 275.1 million, while the paper cigarette packaging segment decreased by 29.1% to RMB 246.3 million[101]. - The company has increased its investment in the production and development of its own brand products in the electronic cigarette sector to capitalize on market growth opportunities[70]. - The group is focusing on enhancing the efficiency of its electronic cigarette production line by considering automation requirements during the product design phase[96]. - The group is focusing on expanding its business into electronic cigarette-related products and enhancing its market share in this sector[71]. - The company has launched its own brand of electronic cigarettes, which has received positive customer recognition and achieved ideal sales growth during the reporting period[130]. Market and Industry Trends - The global electronic cigarette market was valued at approximately USD 22.5 billion in 2022, with a projected compound annual growth rate (CAGR) of 30.6% from 2023 to 2030[68]. - The Chinese electronic cigarette industry is projected to generate revenue of $1.1 billion in 2023, with a compound annual growth rate of 4.2% from 2023 to 2027[150]. - The Chinese tobacco market is expected to grow from RMB 3.7 trillion in 2020 to RMB 4.9 trillion by 2025, reflecting a compound annual growth rate of 32.4%[151]. - The legislative changes in Hong Kong are expected to significantly boost the electronic cigarette industry's growth and export volume[69]. - The group believes that regulatory management will benefit the orderly development of the electronic cigarette industry, despite short-term demand being affected by government restrictions[94]. Employee and Operational Efficiency - Employee benefits expenses increased significantly to RMB 103,833 thousand from RMB 40,799 thousand, reflecting a rise of approximately 154%[53]. - The group employed 1,699 employees as of June 30, 2023, an increase from 1,275 employees at the end of 2022, resulting in total employee costs of approximately RMB 103.8 million, compared to RMB 40.8 million in the same period last year[147]. - The group continues to implement lean production strategies and strict cost control measures to enhance operational efficiency[121]. - The group has actively sought to integrate its core business and control costs in response to rising raw material prices, which have significantly impacted the manufacturing industry[128]. Financial Management and Compliance - The company has not adopted new accounting standards that are expected to have a significant impact on its financial performance[47]. - The interim financial performance for the six months ended June 30, 2023, has been reviewed by the company's audit committee, confirming compliance with applicable accounting standards and regulations[175]. - The income tax expense for the six months ended June 30, 2023, was approximately RMB 6.2 million, an increase from a tax credit of approximately RMB 0.1 million for the same period in 2022, primarily due to increased net profit from subsidiaries in China[107]. Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023, compared to no dividend for the same period in 2022[2]. - The group did not recommend the payment of an interim dividend for the six months ended June 30, 2023, consistent with no dividend declared for the same period in 2022[84]. - The interim report for the six months ended June 30, 2023, will be sent to shareholders and published on the company's website at the appropriate time[176].

[Supplemental Announcement Regarding the 2022 Annual Report: Share Option Scheme Details](index=1&type=section&id=Supplemental%20Announcement%20Regarding%20the%20Annual%20Report%20for%20the%20Year%20Ended%20December%2031%2C%202022) This supplemental announcement provides detailed information on the company's share option scheme for the 2022 fiscal year, including grant details, performance targets, and vesting conditions [Overview of Share Option Scheme](index=1&type=section&id=Overview%20of%20Share%20Option%20Scheme) This announcement supplements the company's 2022 fiscal year share option scheme, noting that 30 million options available at the start of 2022 were fully granted by year-end, representing 7.34% of the weighted average issued shares Changes in Share Options Available for Grant in FY2022 | Date | Number of Share Options Available for Grant (Options) | | :--- | :--- | | January 1, 2022 | 30,000,000 | | December 31, 2022 | 0 | - For the fiscal year ended December 31, 2022, the total number of shares issuable under all company share option schemes represented **7.34%** of the weighted average issued shares of the relevant class during the year[7](index=7&type=chunk) [Performance Targets and Vesting Conditions for Share Options Granted on December 7, 2022](index=1&type=section&id=Performance%20Targets%20and%20Clawback%20Mechanism%20for%20Share%20Options%20Granted%20on%20December%207%2C%202022) Share options granted on December 7, 2022, are subject to strict performance and service vesting conditions, requiring the Group's audited revenue and net profit for FY2025 to be at least double that of FY2022, alongside continuous employment and no serious misconduct - Performance Target: The Group's audited revenue and net profit for the year ended December 31, 2025, must be at least **double** the audited revenue and net profit for the year 2022[1](index=1&type=chunk) - Service Condition: Grantees must not have committed any serious breach of their duties before the vesting date and must remain employees of the Group on the vesting date[9](index=9&type=chunk) - If the aforementioned vesting conditions are not met, the company reserves the right to cancel the granted share options[2](index=2&type=chunk) [Remuneration Committee Opinion](index=2&type=section&id=Remuneration%20Committee) The Remuneration Committee believes these share option grants aim to retain, incentivize, and reward grantees for their contributions to the Group's sustainable growth, aligning their interests with the company's long-term value enhancement - The grant of share options aims to retain, incentivize, and reward grantees for their continuous dedication and contribution to the Group's sustainable growth, aligning their interests with the company's to encourage efforts in enhancing the long-term value of the company and its shares[3](index=3&type=chunk)

Financial Performance - The paper cigarette packaging segment reported revenue of RMB 742.3 million, an increase of 8.9% from RMB 681.5 million in the previous year[1]. - The social product paper packaging segment saw revenue rise to RMB 9.0 million, reflecting a growth of 22.1% from RMB 7.4 million[1]. - The electronic cigarette segment generated revenue of RMB 217.0 million, marking its first year of contribution as it was not applicable in the previous year[1]. - Distribution costs increased by approximately 47.5% to RMB 411.0 million from RMB 278.0 million, primarily due to higher employee costs and promotional expenses for electronic cigarette products[2]. - Other income improved to RMB 1.0 million from a loss of RMB 2.6 million, mainly due to reduced losses from the sale of raw materials and properties[4]. - Income tax expenses rose to RMB 7.2 million from RMB 0.8 million, attributed to increased net profit from subsidiaries in China[5]. - Trade and other receivables increased by 75.1% to RMB 214.2 million from RMB 122.3 million, driven by a rise in trade receivables and deposits[6]. - The company aims to raise up to HKD 180.0 million through a rights issue to fund the relocation of production facilities and the development of the electronic cigarette segment[12]. - As of December 31, 2022, the company's distributable reserves amounted to approximately RMB 183.3 million, a substantial increase from RMB 25.2 million in the previous year[191]. - The board proposed a final dividend of HKD 0.056 per share for the year ending December 31, 2022, compared to no dividend in the previous year[198]. Corporate Governance - The board has established various committees, including the Audit Committee, Remuneration Committee, and Nomination Committee, to oversee their respective responsibilities[43]. - The Remuneration Committee has reviewed and provided recommendations on the remuneration of directors for the year ended December 31, 2022[54]. - The Nomination Committee is responsible for reviewing the board's structure and composition at least annually and making recommendations for any changes[54]. - The company recognizes the benefits of a diverse board and aims to maintain diversity in skills, experience, knowledge, and gender[56]. - The board has a policy to ensure that it remains aligned with the company's needs and reflects current regulatory requirements and good corporate governance practices[57]. - All directors have been provided with sufficient resources to fulfill their duties and can seek independent professional advice at the company's expense[47]. - The company has complied with the corporate governance code regarding the establishment of the Remuneration Committee and Nomination Committee since June 6, 2014[54]. - The board's attendance rate for the annual general meeting was 100% for all directors[48]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company[44]. - The board has a commitment to ongoing training and updates regarding changes in legislation and regulatory environments affecting the group's operations[44]. - The company has appointed PwC as the external auditor for the year ending December 31, 2023, with no disputes regarding their appointment[60]. - The audit committee, composed of three independent non-executive directors, is responsible for overseeing financial reporting and risk management systems[68]. - The company aims to maintain a balance between allowing shareholders to share in profits and retaining sufficient reserves for future development[77]. - The company typically pays dividends twice a year, consisting of an interim and a final dividend, with the possibility of special dividends at the board's discretion[77]. - The company has established internal monitoring standards and procedures to support risk management and compliance with corporate governance[99]. Risk Management and Compliance - The risk management system is designed to provide reasonable assurance against significant misstatements or losses, rather than absolute assurance[60]. - The internal audit function has been revised and monitored for effectiveness by the audit committee during the year[84]. - The company’s risk management and internal control systems are continuously monitored to ensure effective communication and management of residual risks[80]. - The company has a policy for insider information and regularly reminds directors and employees to comply with all related policies[104]. - The company has conducted a materiality assessment to explore the importance of various issues to stakeholders and their potential impact on business development[113]. - The company emphasizes the importance of stakeholder engagement and considers their opinions valuable for promoting sustainable development[111]. - The company adheres to strict compliance with labor laws, ensuring no violations related to child labor or forced labor during the reporting period[146]. - The company has implemented guidelines to ensure ethical procurement practices, focusing on labor conditions and environmental compliance[147]. - The company has not been involved in any corruption-related legal cases during the reporting period, maintaining a strong anti-corruption stance[150]. - The company is committed to protecting its intellectual property rights, ensuring compliance with relevant laws and regulations[149]. Environmental Responsibility - The company is committed to ensuring compliance with environmental laws and regulations in China, focusing on cost-effective and eco-friendly printing technologies[96]. - During the reporting period, the company adhered to significant regulations regarding emissions and waste management, ensuring no major harmful waste was produced[96]. - The company has implemented waste reduction policies aimed at improving production processes to minimize, reuse, and recycle waste generated from products and packaging[119]. - The company regularly monitors resource consumption to avoid unnecessary waste and aims to use more environmentally friendly materials[119]. - Total greenhouse gas emissions amounted to 2,112.0 tons, with direct emissions from fuel consumption at 2,012.0 tons and indirect emissions from electricity consumption at 100.0 tons[129]. - The total hazardous waste generated was 208.4 tons, with a hazardous waste generation rate of 0.3 tons per RMB 1 million of goods sold[129]. - Energy consumption from fuel and gas reached 1,176,507.9 MWh, with energy consumption per RMB 1 million of goods sold at 3,711.7 MWh[131]. - Water consumption totaled 125,340.0 cubic meters, with a water consumption rate of 227.4 cubic meters per RMB 1 million of goods sold[131]. - The total paper consumption was 20,148.4 tons, indicating a significant resource usage in production[131]. - The company emphasizes employee education on water conservation and encourages recycling to minimize wastewater generation[129]. - The company encourages the use of electronic documents to reduce paper usage, promoting double-sided printing when paper is necessary[122]. Employee Relations and Training - A total of 1,230 employees participated in training in 2022, representing 96.5% of the total workforce, compared to 97.1% in the previous year[166]. - The average training hours for male employees was 1.1 hours, while for female employees it was 1.2 hours in 2022[166]. - The company achieved zero work-related fatalities over the past three years, with only 7 days lost due to work injuries during the reporting period[164]. - The company adheres to fair recruitment principles and does not discriminate based on gender, age, race, disability, marital status, or sexual orientation[161]. - The company has not violated any laws related to compensation, recruitment, promotion, or workplace safety during the reporting period[163]. - The company is committed to protecting employees from any form of harassment or bullying in the workplace[169]. - The company actively seeks to build long-term relationships with local communities by hiring local residents and purchasing local goods and services[175]. Product Quality and Supply Chain - The company strictly monitors product quality throughout the production process, ensuring compliance with inspection procedures[173]. - The company has a policy against child labor and forced labor, adhering to relevant labor laws and international labor standards[168]. - The company reported a major client contributing 15.8% to sales and the top five clients accounting for 56.0% of total sales[178]. - The largest supplier accounted for 17.5% of total purchases, indicating a significant reliance on key suppliers[178]. - The company has established internal control standards for all products delivered, adhering to national standards and ISO9000 quality system standards[194]. - The company has a diverse supplier base with 104 suppliers in Guangdong and a total of 118 suppliers across various provinces[194]. - There were no product recalls during the reporting period due to safety and health reasons, indicating strong product quality control[194]. - The company has not entered into any management or administrative contracts affecting the majority of its business as of December 31, 2022[190]. - The company has a service agreement with executive directors effective from February 18, 2023, for a term of three years[185].