Financial Performance - For the year ended December 31, 2022, revenue was approximately RMB 968.4 million, an increase of about 40.6% or RMB 279.4 million compared to the same period in 2021[2]. - Gross profit for the same period was approximately RMB 137.9 million, representing an increase of about 112.0% or RMB 72.8 million year-over-year[2]. - The gross profit margin improved to approximately 14.2%, up by about 4.8% from 9.4% in the previous year[2]. - The profit attributable to owners of the company was approximately RMB 5.5 million, a turnaround from a loss of approximately RMB 26.2 million in the previous year[2]. - Operating profit for the year was RMB 19.3 million, compared to an operating loss of RMB 23.9 million in the previous year[5]. - The company reported a basic earnings per share of RMB 0.01, compared to a loss per share of RMB 0.07 in the previous year[18]. - The company reported a net profit before tax of RMB 18,265 thousand, after accounting for administrative expenses of RMB 79,478 thousand and other income of RMB 2,352 thousand[46]. - The company reported a profit attributable to shareholders of RMB 5,496 thousand in 2022, compared to a loss of RMB 26,223 thousand in 2021[82]. Revenue Breakdown - For the year ended December 31, 2022, total revenue from paper cigarette packaging was RMB 681,549,000, while social product packaging revenue was RMB 7,395,000, resulting in a total revenue of RMB 688,944,000[32]. - The revenue breakdown includes 76.7% from the paper cigarette packaging segment, 0.9% from the social product paper packaging segment, and 22.4% from the electronic cigarette segment[141]. - The e-cigarette segment generated revenue of RMB 217.0 million, accounting for approximately 22.4% of the total revenue for the reporting year[108]. Expenses and Costs - The total expenses for sales, distribution, and administrative costs amounted to RMB 951,030,000, an increase from RMB 712,363,000 in the previous year[36]. - The cost of raw materials and consumables used was RMB 789,272,000, compared to RMB 638,991,000 in the previous year, indicating a significant increase[36]. - Employee benefits expenses rose to RMB 111,045,000 from RMB 60,911,000, reflecting a substantial increase in workforce costs[36]. - Administrative expenses rose by approximately 31.1% to about RMB 79.5 million, primarily due to increases in employee and R&D costs[145]. - Distribution costs increased by approximately 47.5% to about RMB 41.1 million, driven by higher employee costs and promotional expenses for self-developed electronic cigarette products[153]. Assets and Liabilities - Total assets increased to RMB 1,072.8 million, up from RMB 756.0 million in the previous year[21]. - Total liabilities rose to RMB 690.4 million, compared to RMB 549.6 million in the previous year[9]. - Cash and cash equivalents increased significantly to RMB 266.6 million from RMB 65.8 million in the previous year[21]. - Trade receivables amounted to RMB 145,416 thousand in 2022, up from RMB 92,100 thousand in 2021[87]. - The company's net current assets as of December 31, 2022, were approximately RMB 206.6 million, compared to RMB 12.7 million on December 31, 2021[178]. - The company's interest-bearing borrowings decreased from RMB 101.1 million on December 31, 2021, to RMB 65.0 million on December 31, 2022, primarily to reduce interest expenses[179]. Market and Industry Insights - The global market for electronic cigarettes was valued at USD 22.45 billion in 2022, with a projected compound annual growth rate (CAGR) of 30.6% from 2023 to 2030, highlighting the growth potential in this sector[69]. - The projected value of the Chinese electronic cigarette market is expected to reach RMB 295.27 billion in 2023, indicating significant growth potential in the industry[169]. - The domestic e-cigarette market in China is estimated to grow by 76.0%, reaching a scale of RMB 25.5 billion[104]. - The export market for China's e-cigarette industry is expected to grow by 63.4% in 2022, with a scale of approximately RMB 165.9 billion[104]. - Mergers and acquisitions between traditional tobacco manufacturers and electronic cigarette producers are on the rise to enhance product development and market share[200]. Strategic Initiatives - The company is engaged in the research and development of electronic cigarettes and related products, indicating a focus on innovation and market expansion[45]. - The company has increased investment in the production and development of its own brand products to capitalize on the rapid growth of the e-cigarette market[107]. - The company plans to enhance product upgrades and innovations while strictly adhering to national regulations to strengthen operational quality and productivity[170]. - The company aims to relocate and establish new production facilities and develop its electronic cigarette division to enhance operational efficiency and sustainable growth[116]. - The company plans to continue optimizing processes and materials, enhancing productivity, and exploring competitive negotiations to further improve margins[140]. Shareholder Information - The board proposed a final dividend of HKD 0.056 per share for the year ended December 31, 2022, compared to no dividend in the previous year[2]. - The company completed a rights issue on October 26, 2022, raising approximately HKD 176.0 million, with a net price of about HKD 0.59 per share[166]. - The annual general meeting of shareholders is scheduled for June 16, 2023[193].

Financial Performance - For the six months ended June 30, 2022, revenue increased by approximately 27.5% or RMB 88.1 million to approximately RMB 409.1 million compared to the same period in 2021[3] - Gross profit for the same period increased by approximately 25.1% or RMB 8.5 million to approximately RMB 42.2 million compared to the same period in 2021[3] - The profit attributable to owners of the company was approximately RMB 0.5 million for the six months ended June 30, 2022, compared to a loss of approximately RMB 6.5 million for the same period in 2021[3] - The company's revenue for the six months ended June 30, 2022, was approximately RMB 409.1 million, an increase of about 27.5% compared to the same period in 2021[22] - The gross profit increased from approximately RMB 33.7 million to about RMB 42.2 million, representing a growth of approximately 25.1%[23] - Operating profit turned positive at RMB 1,582 thousand, compared to an operating loss of RMB 5,626 thousand in the previous year[64] - The net profit for the period was RMB 702 thousand, a significant recovery from a net loss of RMB 7,203 thousand in the prior year[64] - The company reported a profit attributable to owners of RMB 512,000 for the six months ended June 30, 2022, compared to a loss of RMB 6,499,000 in the same period of 2021[90] Cost and Expenses - The gross profit margin decreased by approximately 0.2% to about 10.3% for the six months ended June 30, 2022, compared to approximately 10.5% for the same period in 2021[3] - The distribution costs rose from approximately RMB 12.2 million to about RMB 13.8 million, an increase of approximately 12.5%[24] - Administrative expenses increased from approximately RMB 24.4 million to about RMB 28.1 million, reflecting a rise of approximately 15.1%[26] - The total administrative expenses for the six months ended June 30, 2022, were RMB 28,065,000, up from RMB 24,388,000 in the same period of 2021, marking an increase of 11.0%[81] - The company’s employee costs for the six months ended June 30, 2022, totaled RMB 40,799,000, an increase from RMB 28,319,000 in the previous year, representing a growth of 44.3%[85] Cash Flow and Liquidity - As of June 30, 2022, the group's cash and cash equivalents amounted to approximately RMB 799 million, an increase from RMB 658 million as of December 31, 2021[9] - Cash and cash equivalents increased to RMB 79,946 thousand from RMB 65,844 thousand, showing a growth of 21.5%[65] - Operating cash flow for the six months ended June 30, 2022, was RMB 70,376,000, a significant increase from RMB 24,033,000 in the same period of 2021, representing a growth of 193.5%[69] - Net cash generated from operating activities reached RMB 69,599,000, compared to RMB 22,025,000 in the previous year, indicating a year-over-year increase of 215.5%[69] - Cash used in investing activities was RMB 4,594,000, a decrease from RMB 13,537,000 in the prior year, reflecting a reduction of 66.0%[69] - Cash flow from financing activities showed a net outflow of RMB 51,504,000, compared to a net outflow of RMB 21,777,000 in the previous year, indicating a 136.5% increase in cash outflow[69] Assets and Liabilities - Total assets increased to RMB 853,585 thousand as of June 30, 2022, compared to RMB 755,983 thousand at the end of 2021, representing a growth of 12.9%[66] - The company's total liabilities rose to RMB 645,900 thousand, up from RMB 549,643 thousand, indicating an increase of 17.5%[66] - The company had short-term bank borrowings of RMB 50,000,000 as of June 30, 2022, down from RMB 101,080,000 at the end of 2021, representing a decrease of about 50.6%[102] - The net debt as of June 30, 2022, was RMB (29.946) million, compared to RMB 35.236 million as of December 31, 2021[35] Market and Industry Insights - The overall profit generated by the tobacco industry increased by 7.9% to RMB 82.84 billion during the review period[8] - The economic growth rate in China for the first half of 2022 was 2.5%, with significant challenges due to COVID-19 and geopolitical risks[8] - The tobacco industry in China saw a 9% year-on-year increase in combined operating revenue, totaling RMB 565.11 billion from January to April 2022[13] - The Chinese e-cigarette market is projected to double by the end of 2023, with the company planning to accelerate its expansion in this segment[47] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with it during the reporting period[60] - The company has confirmed that all directors have complied with the standards of the securities trading code during the reporting period[61] - The company has not purchased, sold, or redeemed any of its listed securities during the six-month period ending June 30, 2022[59] Shareholder Information - As of June 30, 2022, the company had a total of 300,000,000 issued shares[51] - Mr. Yang holds 209,362,000 shares, representing approximately 69.79% of the company's total shares[52] - Mr. Fung holds 15,638,000 shares, representing approximately 5.21% of the company's total shares[52] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2022[44]

Financial Performance - For the year ended December 31, 2021, revenue was approximately RMB 688.9 million, an increase of about 19.6% or RMB 112.7 million compared to the same period in 2020[2]. - Gross profit for the same period was approximately RMB 65.0 million, a decrease of about 11.8% or RMB 8.7 million compared to 2020[2]. - Gross margin decreased to approximately 9.4%, down from about 12.8% in the previous year, representing a decline of approximately 3.4%[2]. - The company's revenue for the year ended December 31, 2021, was approximately RMB 688.9 million, representing an increase of about 19.6% compared to the same period in 2020[18]. - The revenue from the paper cigarette packaging segment reached approximately RMB 681.5 million, a significant increase of 38.5% from RMB 492.2 million in 2020[18]. - The social product paper packaging segment generated revenue of RMB 7.4 million, up 34.4% from RMB 5.5 million in the previous year[18]. Cost Management and Profitability - The company faced a challenging business environment due to rising labor and material costs, impacting profitability and financial performance[6]. - Cost control was a key focus, with investments in new machinery and equipment to enhance production efficiency and reduce costs[7]. - Distribution costs reduced by approximately 25.6% from RMB 37.4 million in 2020 to RMB 27.8 million in 2021, primarily due to decreased social promotion expenses[20]. - Administrative expenses increased by approximately 2.2% from RMB 59.3 million in 2020 to RMB 60.6 million in 2021[22]. - Net financing costs increased by approximately 36.6% from RMB 3.6 million in 2020 to RMB 4.9 million in 2021, mainly due to increased interest expenses on bank and other borrowings[25]. Operational Efficiency - Average turnover days for trade receivables decreased from approximately 78 days in 2020 to about 52 days in 2021[2]. - Average turnover days for trade payables decreased from approximately 198 days in 2020 to about 184 days in 2021[2]. - Average inventory turnover days decreased from approximately 108 days in 2020 to about 104 days in 2021[3]. - The company plans to continue investing in machinery and equipment to enhance production capabilities and maintain international standards[15]. Market Trends and Expansion - The domestic tobacco production in China increased by 1.3% year-on-year to 24,182 billion sticks in 2021[11]. - The domestic e-cigarette market is expected to surge by 76% in 2022, reaching RMB 25.5 billion[11]. - The e-cigarette export market is projected to grow by 63.4% in 2022, reaching RMB 165.9 billion[11]. - The company aims to diversify its business by expanding into the high-end cigarette packaging market and the e-cigarette market[10]. - The group anticipates a slowdown in economic recovery, projecting a GDP growth rate of 4.1% for 2022, influenced by ongoing COVID-19 challenges and supply chain issues[41]. Governance and Compliance - The company has complied with the corporate governance code as per the listing rules, confirming adherence to all applicable provisions for the year ending December 31, 2021[57]. - The board of directors consists of six members, including one executive director, two non-executive directors, and three independent non-executive directors[59]. - The independent non-executive directors represent more than one-third of the board, ensuring effective independent judgment[61]. - The company has confirmed that all independent non-executive directors meet the independence criteria as per the listing rules[61]. - The company has established a remuneration committee to review and recommend director compensation for the year ending December 31, 2021, with no disagreements reported between the board and the committee[76]. Environmental, Social, and Governance (ESG) Initiatives - The ESG report covers the company's strategies, achievements, and ongoing measures to enhance ESG performance for the reporting period from January 1 to December 31, 2021[93]. - The company emphasizes the importance of environmental protection and compliance with Chinese environmental laws, ensuring no significant harmful waste is produced during its operations[102]. - The total greenhouse gas emissions amounted to 3,203 tons, with direct emissions from fuel consumption at 3,102 tons and indirect emissions from electricity consumption at 101 tons[107]. - The company generated 239.5 tons of hazardous waste from production and wastewater treatment, with a hazardous waste generation rate of 0.3 tons per 10 million RMB of goods sold[107]. - The company has implemented a comprehensive human resources management system in compliance with relevant labor laws and regulations[118]. Employee Management and Safety - The total number of employees increased to 750 in 2021, up from 550 in 2020, with a gender distribution of 64.2% male and 35.8% female[116]. - The company achieved zero work-related fatalities over the past three years, including the reporting year[122]. - The company provided labor protection supplies such as gloves, masks, and work clothes to employees in China to ensure their safety and health[122]. - The company strictly adhered to labor standards, with no violations related to child labor or forced labor during the reporting period[126]. - Total number of employees participating in training increased to 728 in 2021, up from 526 in 2020, representing a participation rate of 97.1%[124]. Shareholder Information - The company has not purchased, sold, or redeemed any listed securities during the reporting period[145]. - The company has adopted a share option scheme allowing for the issuance of up to 30,000,000 shares, which is 10% of the total issued shares[199]. - No share options have been granted, exercised, canceled, or lapsed under the share option scheme as of the report date[200]. - The company’s available distributable reserves as of December 31, 2021, were approximately RMB 252 million, unchanged from the previous year[192]. - The board of directors did not recommend a final dividend for the year ended December 31, 2021, consistent with the previous year[137].

（於開曼群島註冊成立的有限公司） 股份代號：01626 中期報告 2021 . � 嘉耀控股有限公司 2021中期報告 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 13 簡明綜合全面收益表 17 簡明綜合資產負債表 18 簡明綜合權益變動表 20 簡明綜合現金流量表 21 簡明綜合中期財務資料附註 22 目 錄 財務概要 嘉耀控股有限公司（「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」）截 至二零二一年六月三十日止六個月未經審核簡明綜合中期業績，連同二零二零年同期之比較數字。 • 截至二零二一年六月三十日止六個月之收益較二零二零年同期增加約23.7%或人民幣61.5百萬元至約人 民幣321.0百萬元。 • 截至二零二一年六月三十日止六個月之毛利較二零二零年同期增加約4.1%或人民幣1.3百萬元至約人民 幣33.7百萬元。 • 截至二零二一年六月三十日止六個月之毛利率較二零二零年同期約12.5%減少約2.0%至約10.5%。 • 本公司擁有人應佔虧損由截至二零二零年六月三十日止六個月約人民幣6.6百萬元減少至截至二零二一 年六月三 ...

Financial Performance - For the year ended December 31, 2020, revenue was approximately RMB 576.2 million, a decrease of about 0.9% or RMB 5.0 million compared to 2019[5]. - Gross profit for the same period was approximately RMB 73.7 million, down approximately 41.5% or RMB 52.3 million from the previous year[5]. - The gross profit margin decreased to approximately 12.8%, down about 8.9% from approximately 21.7% in 2019[5]. - The loss attributable to owners of the company was approximately RMB 26.2 million, compared to a profit of approximately RMB 4.2 million in 2019[5]. - The company reported a basic and diluted loss per share of RMB (0.09) for 2020, compared to earnings of RMB 0.01 per share in 2019[176]. - The company reported a loss of RMB 26,205 thousand for the year 2020, compared to a profit of RMB 4,222 thousand in 2019[181]. - Net loss for the year was RMB 30,250 thousand, compared to a profit of RMB 7,450 thousand in the previous year, marking a shift from profitability to loss[176]. - Operating loss for the year was RMB 25,811 thousand, compared to an operating profit of RMB 12,037 thousand in 2019, reflecting a significant decline in operational performance[176]. Revenue Breakdown - The revenue from the paper cigarette packaging segment decreased by approximately 10.3% to RMB 492.2 million, while the social product paper packaging segment decreased by approximately 58.3% to RMB 5.5 million[19]. - The trading goods segment saw a significant increase in sales of approximately 308.7%, reaching RMB 78.6 million[19]. - Total revenue for the year ended December 31, 2020, was RMB 576,244 thousand, a decrease from RMB 581,257 thousand in 2019, representing a decline of approximately 0.2%[176]. Cost Management - Distribution costs decreased by approximately 9.5% from RMB 41.3 million in 2019 to RMB 37.4 million in 2020, primarily due to reduced marketing and business travel expenses during the pandemic[21]. - Administrative expenses fell by about 9.9% from RMB 65.8 million in 2019 to RMB 59.3 million in 2020, mainly due to decreased R&D costs and employee expenses during the pandemic[22]. - Financing costs net increased by approximately 63.8% from RMB 2.2 million in 2019 to RMB 3.6 million in 2020, primarily due to increased interest expenses on bank borrowings[25]. Operational Efficiency - The company is focusing on enhancing operational efficiency through automation and upgrading production facilities to strengthen its market position[11]. - The management team is committed to controlling costs and maintaining cash levels while streamlining workflows to enhance operational efficiency[41]. - The company plans to continue investing in machinery and equipment to enhance production capabilities and maintain international standards[16]. Market Outlook - The company anticipates a strong recovery in consumer demand and a rebound in the Chinese economy post-pandemic, which may benefit the tobacco industry[11]. - The group anticipates sustained growth in the tobacco industry over the coming years, provided that COVID-19 cases do not significantly rebound[40]. - The International Monetary Fund forecasts a 7.9% growth in China's economy for 2021, supported by accelerated production and substantial fiscal relief measures from the central government[40]. Employee Management - As of December 31, 2020, the group employed 550 staff, down from 570 staff as of December 31, 2019, with total employee costs amounting to RMB 52.5 million compared to RMB 69.6 million in the previous year[38]. - The company emphasizes internal promotions for management positions whenever feasible, enhancing employee growth and efficiency[93]. - The company has established a comprehensive training program for employees, including onboarding and technical training[92]. Corporate Governance - The company has complied with all applicable corporate governance codes as of December 31, 2020[55]. - The board consists of six directors, including one executive director, two non-executive directors, and three independent non-executive directors[57]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance for the year ending December 31, 2020[56]. Environmental Impact - The company is committed to minimizing environmental impact through energy management, water usage, and waste production[156]. - The total carbon emissions for the year 2020 amounted to 2,913 tons, with nitrogen oxides emissions at 84 tons[97]. - The company produced 150 tons of hazardous waste and 22 tons of non-hazardous waste in 2020[97]. Related Party Transactions - The company has confirmed that all state-owned tobacco customers are direct or indirect wholly-owned subsidiaries of China Tobacco, constituting related party transactions[126]. - The total transaction amount for the year ended December 31, 2020, was approximately RMB 96,816,000 for sales to Yunnan Tobacco[128]. - The company has complied with the disclosure requirements under the Listing Rules for related party transactions during the year ended December 31, 2020[134].

Revenue and Profitability - Revenue for the six months ended June 30, 2020, increased by approximately 1.8% or RMB 4.6 million to approximately RMB 259.5 million compared to the same period in 2019[13] - Gross profit for the same period decreased by approximately 41.3% or RMB 22.8 million to approximately RMB 32.4 million, resulting in a gross margin of approximately 12.5%, down from 21.6% in 2019[13] - The group's revenue for the six months ended June 30, 2020, was approximately RMB 259.5 million, an increase of about 1.8% compared to the same period in 2019[27] - Revenue from the paper cigarette packaging segment decreased by approximately 18.5% to RMB 197.8 million, while the social product paper packaging segment decreased by approximately 64.6% to RMB 1.9 million[27] - The trade goods segment saw a significant increase in revenue of approximately 749.1% to RMB 59.9 million[27] - The group's gross profit decreased by approximately 41.3% to RMB 32.4 million, with a gross profit margin dropping from about 21.6% to approximately 12.5%[28] - The company recorded a profit attributable to owners of approximately RMB 66 million, a decrease of about 15.5% from a loss of RMB 78 million in the previous period[35] - The company reported a loss before tax of RMB 9,416,000 for the six months ended June 30, 2020, compared to a loss of RMB 8,491,000 in the prior year, indicating a worsening of 10.9%[84] - The company reported a basic loss per share of RMB (6,621,000) for the six months ended June 30, 2020, compared to RMB (7,836,000) in 2019, showing an improvement of 15.5%[94] Operational Performance - Average trade receivables turnover days increased from approximately 83 days as of December 31, 2019, to approximately 102 days as of June 30, 2020[13] - Average trade payables turnover days decreased from approximately 269 days as of December 31, 2019, to approximately 209 days as of June 30, 2020[14] - Average inventory turnover days slightly decreased from approximately 122 days as of December 31, 2019, to approximately 120 days as of June 30, 2020[14] - The company resumed operations in April 2020 after nearly two months of suspension due to the COVID-19 pandemic, focusing on improving productivity and efficiency[18] - The company remains cautious about the business outlook for the second half of the year due to uncertainties from the COVID-19 pandemic, focusing on cost monitoring and operational efficiency[50] - The company has resumed operations following the easing of nationwide lockdown measures, indicating a recovery in operational performance[115] Cost Management and Expenses - Distribution costs decreased by approximately 49.7% to RMB 11.7 million, primarily due to reduced marketing and business travel expenses during the pandemic[29] - Administrative expenses decreased by approximately 21.6% from RMB 336 million to RMB 263 million due to reduced R&D and employee costs during the pandemic[30] - Total expenses for the six months ended June 30, 2020, were RMB 265,154,000, an increase from RMB 256,562,000 in 2019, reflecting a rise of 3.4%[89] - The total distribution costs for the six months ended June 30, 2020, were RMB (11,733,000), compared to RMB (23,313,000) in 2019, indicating a reduction of 49.6%[84] Financial Position - The company maintained a healthy liquidity position with net current assets of approximately RMB 736 million as of June 30, 2020, down from RMB 781 million at the end of 2019[38] - Interest-bearing borrowings increased to approximately RMB 120 million from RMB 55 million, resulting in a debt ratio of 18.6%[39] - Total assets as of June 30, 2020, were RMB 605,295 thousand, down from RMB 644,323 thousand as of December 31, 2019, representing a decrease of 6%[69] - Total liabilities decreased to RMB 353,038 thousand from RMB 384,553 thousand, a reduction of approximately 8.2%[70] - Cash and cash equivalents as of June 30, 2020, were RMB 62,450 thousand, down from RMB 75,899 thousand at the end of 2019, indicating a decrease of 17.7%[69] - The company’s equity attributable to owners decreased to RMB 205,843 thousand from RMB 212,450 thousand, a decline of approximately 3.1%[69] - Total borrowings increased to RMB 120,000 thousand from RMB 87,000 thousand, reflecting a 37.9% rise in debt financing[74] Strategic Initiatives - The company plans to enhance product innovation and design capabilities to better meet customer expectations for innovative and high-quality products[18] - The group plans to continue investing in machinery and equipment to enhance production facilities and ensure productivity meets international standards[24] - Cost control remains a strategic focus, with the group collaborating with top suppliers to mitigate raw material price fluctuations[26] - The group aims to expand its business by establishing sales offices in cities with significant business potential to improve customer relationships and service[23] - The company aims to maintain its market leadership and create long-term value for shareholders through effective business strategies and exploring new opportunities[51] Shareholder Information - The company had no significant investments, acquisitions, or disposals involving subsidiaries or associates during the reporting period[42] - As of June 30, 2020, the company employed 525 staff, with total employee costs amounting to RMB 24.3 million, a decrease from RMB 35.5 million in the same period of 2019[48] - Major shareholders include Spearhead Leader with 69.79% ownership (209,362,000 shares) and Star Glide Limited with 5.21% ownership (15,638,000 shares) as of June 30, 2020[56] - The company has a stock option plan allowing for a maximum of 30,000,000 shares to be granted, representing 10% of the issued shares at the time of listing[59] - The stock option plan will remain effective for ten years from its adoption date, unless terminated early by shareholders[60] Compliance and Governance - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial results for the six months ending June 30, 2020, ensuring compliance with applicable accounting standards[64] - The company has adopted the corporate governance code as per the listing rules and has complied with it during the reporting period[62] - The interim financial results have been reviewed by the company's auditors, ensuring adequate disclosure and compliance with relevant regulations[66] COVID-19 Impact - The company anticipates that uncertainties related to COVID-19 may negatively impact the global economic recovery in the short term[18] - The outbreak of COVID-19 has posed unprecedented challenges, impacting the tobacco sector's financial performance, particularly in the first quarter of 2020 when factory operations were largely halted[115] - The company will continue to monitor the developments of COVID-19 and assess its impact on financial conditions and operational performance[115]

Financial Performance - For the year ended December 31, 2019, Jia Yao Holdings Limited reported revenue of approximately RMB 581.3 million, an increase of about 2.5% or RMB 14.1 million compared to the previous year[18]. - The gross profit for the same period was approximately RMB 126.0 million, reflecting a year-on-year increase of about 2.9% or RMB 3.5 million[18]. - The gross profit margin was approximately 21.7%, up by 0.1% from approximately 21.6% in the previous year[18]. - Profit attributable to owners of the company decreased by approximately 67.5% to about RMB 4.2 million compared to the previous year, a decline of RMB 8.8 million[18]. - The company's revenue for the year ended December 31, 2019, was approximately RMB 581.3 million, an increase of about 2.5% compared to the same period in 2018[31]. - The gross profit increased by approximately 2.9% to about RMB 126.0 million, with a gross profit margin of approximately 21.7%[32]. - Other losses increased by approximately RMB 7.1 million to about RMB 9.8 million, primarily due to a fair value loss of RMB 4.4 million on convertible bonds and a loss of RMB 3.1 million from the sale of raw materials[36]. - Net financing costs decreased by approximately 53.2% from RMB 4.7 million to RMB 2.2 million, mainly due to a reduction in bank borrowing interest of about RMB 2.2 million[37]. - Income tax expenses decreased by approximately 38.8% from RMB 3.9 million to RMB 2.4 million, primarily due to a decrease in pre-tax profit of the company's subsidiaries in China[38]. - The total comprehensive income for the year was RMB 6,296 thousand, compared to RMB 15,820 thousand in 2018, reflecting a decrease of approximately 60%[198]. Operational Efficiency - The average turnover days for trade receivables decreased from approximately 99 days to about 83 days[18]. - The average turnover days for trade payables increased from approximately 260 days to about 269 days[19]. - The average inventory turnover days decreased from approximately 125 days to about 122 days[19]. - The company is committed to investing in machinery and equipment to maintain production efficiency in line with international standards[28]. - The company has adopted measures to mitigate the impact of rising raw material prices by negotiating fixed prices with top suppliers[30]. - The company is focused on product design and technology development to enhance its competitive edge in the market[28]. - The company aims to enhance its sales and marketing capabilities to strengthen relationships with existing customers and develop new business relationships[23]. - The company has established a comprehensive internal management system covering quality, environment, and occupational health and safety, ensuring compliance with relevant laws and regulations[110]. - The company has implemented a quality control system certified by ISO9001 to ensure product quality throughout the production process[123]. Market Strategy - The company is focusing on enhancing its product range towards the mid-to-high-end cigarette packaging market and expanding its international trade operations[21]. - The company plans to explore new revenue sources and expand its international trade business to strengthen its market leadership[23]. - The company anticipates a challenging economic environment due to the COVID-19 pandemic, impacting business operations and recovery prospects[57]. - The company plans to focus on product development, shifting towards mid-to-high-end cigarette packaging to protect profitability[58]. - The company aims to develop new products to attract younger consumers and maintain its leadership position in the industry[59]. - The company will explore opportunities in various sectors, including tobacco and international trade services, to maintain market leadership[59]. Corporate Governance - The company has a strong focus on corporate governance with independent directors overseeing management and compliance matters[65]. - The management team includes individuals with extensive backgrounds in finance, accounting, and corporate governance, ensuring strategic oversight[68]. - The company has established service agreements for executive directors effective from February 18, 2019, for a term of three years[84]. - The board of directors consists of six members, including one executive director, two non-executive directors, and three independent non-executive directors[76]. - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules[74]. - The company has complied with all applicable code provisions of the corporate governance code during the year ended December 31, 2019[73]. - The independent non-executive directors are responsible for independent oversight of management[76]. - The company has established a diversity policy for the board to enhance performance quality, considering various factors such as skills, experience, and gender[95]. - The board has reviewed the effectiveness of the risk management and internal control systems, confirming compliance with the code for the year ending December 31, 2019[102]. Employee Management - The total number of employees decreased from 850 to 570, with total employee costs amounting to approximately RMB 69.6 million, down from RMB 86.8 million[50]. - The company actively invests in employee development, providing various training programs to enhance personal skills and team performance[113]. - The company has implemented a training plan annually based on departmental needs, ensuring all employees meet educational and training requirements[113]. - The company has a policy of promoting internal employees for management positions whenever feasible, enhancing employee growth and operational efficiency[114]. - The employee distribution by age group as of December 31, 2019, was as follows: 43 employees aged 18-25, 188 aged 26-35, 183 aged 36-45, and 156 aged 46 and above[110]. Environmental Impact - The total carbon dioxide emissions amounted to 2,585 tons for the year ended December 31, 2019[118]. - The total energy consumption was 1,186,773 MWh for fuel and gas, and 12,021.64 MWh for electricity[121]. - The total water consumption was 97,145 cubic meters, with a consumption of 147.64 cubic meters per RMB 1 million of goods sold[121]. - The company has implemented a green program to manage energy consumption, water usage, and waste production[176]. - The total amount of hazardous waste generated was 163 tons[118]. Risk Management - The company has established procedures for risk management and internal control, aiming to provide reasonable assurance against material misstatements or losses[102]. - The risk management process includes identifying risks, assessing their likelihood and impact, and managing responses to ensure effective communication with the board[102]. - The audit committee monitored the effectiveness of the risk management and internal control systems and made recommendations for improvements[88]. Related Party Transactions - The group has a significant relationship with state-owned tobacco companies, which are direct or indirect wholly-owned subsidiaries of China National Tobacco Corporation[146]. - The group sold products to Hubei Tobacco Industrial Co., Ltd. amounting to RMB 29,458,000, with a related annual cap of RMB 47,429,000[147]. - The group sold products to Yunnan Tobacco Materials Co., Ltd. totaling RMB 64,468,000, with a related annual cap of RMB 163,454,000[147]. - The group sold products to Henan Tobacco Industrial Co., Ltd. amounting to RMB 61,943,000, with a related annual cap of RMB 66,306,000[147]. - The group sold products to Heilongjiang Tobacco Industrial Co., Ltd. totaling RMB 9,254,000, with a related annual cap of RMB 10,612,000[147]. Financial Position - Total assets as of December 31, 2019, were RMB 644,323 thousand, a decrease from RMB 782,970 thousand in 2018, representing a decline of approximately 17.7%[200]. - Cash and cash equivalents decreased to RMB 75,899 thousand in 2019 from RMB 212,527 thousand in 2018, a drop of about 64%[200]. - The company reported a basic earnings per share of RMB 0.01 for 2019, down from RMB 0.03 in 2018[198]. - The company’s non-current assets totaled RMB 182,472 thousand in 2019, down from RMB 195,430 thousand in 2018, a decline of about 6.7%[200].

Financial Performance - For the six months ended June 30, 2019, the revenue was approximately RMB 254.8 million, an increase of about 0.2% or RMB 0.6 million compared to the same period in 2018[5]. - The gross profit for the same period was approximately RMB 55.2 million, a decrease of about 13.1% or RMB 8.3 million compared to the previous year[5]. - The gross profit margin was approximately 21.6%, down about 3.3% from approximately 24.9% in the same period of 2018[5]. - The profit attributable to owners of the company changed from a profit of approximately RMB 16.1 million for the six months ended June 30, 2018, to a loss of approximately RMB 7.8 million for the same period in 2019[5]. - The group’s revenue for the six months ended June 30, 2019, was approximately RMB 254.8 million, an increase of about 0.2% compared to the same period in 2018[18]. - The gross profit decreased by approximately 13.1% to about RMB 55.2 million, with a gross profit margin dropping from approximately 24.9% to about 21.6% due to rising raw material costs[19]. - The company recorded a loss attributable to owners of approximately RMB 7.8 million, compared to a profit of RMB 16.1 million in the same period last year[26]. - The company reported a comprehensive loss of RMB 8,350 thousand for the period, compared to a comprehensive income of RMB 18,382 thousand in 2018[60]. - Basic and diluted loss per share was RMB (0.026), compared to earnings per share of RMB 0.054 in the same period last year[60]. - The company reported a net loss of RMB 7,836 thousand for the six months ended June 30, 2019, compared to a profit of RMB 16,051 thousand in the same period of 2018, indicating a significant downturn[63]. Operational Changes - The average turnover days for trade receivables decreased from about 99 days at the end of 2018 to approximately 76 days for the six months ended June 30, 2019[5]. - The average turnover days for trade payables increased from about 260 days at the end of 2018 to approximately 279 days for the same period in 2019[6]. - The company plans to focus on upgrading its product mix to mid-to-high-end paper cigarette packaging to meet consumer demand[9]. - The company aims to explore new business and revenue sources and will actively develop international trade business[10]. - In July 2019, the company changed its name from "Travel International Holdings Limited" to "Jia Yao Holdings Limited" to seek new opportunities for business diversification[10]. - The company will closely monitor and actively respond to any changes in tobacco control policies and regulations in China[10]. - The company is committed to investing in machinery and equipment to enhance production facilities and ensure productivity meets international standards[15]. - The group emphasizes product design and technology development to strengthen its competitive edge in the market[16]. - The company is actively seeking new business opportunities and expanding into international trade, particularly in the Asian mobile accessories market[12]. - The company plans to enhance product development and design to attract younger consumers, focusing on high-end cigarette packaging as a primary revenue source[41]. - The company aims to expand its business into new areas, including international trade, to drive future growth[41]. Financial Position - Total assets decreased to RMB 643,506 thousand as of June 30, 2019, down 17.83% from RMB 782,970 thousand at the end of 2018[61]. - Total liabilities decreased to RMB 398,382 thousand, down 24.83% from RMB 529,496 thousand at the end of 2018[62]. - Cash and cash equivalents decreased to RMB 123,896 thousand from RMB 212,527 thousand, a decline of 41.73%[61]. - Inventory decreased to RMB 121,113 thousand, down 21.87% from RMB 154,984 thousand in the previous year[61]. - The company maintained a healthy current asset net of approximately RMB 57.4 million as of June 30, 2019, compared to RMB 58.0 million at the end of 2018[29]. - Interest-bearing borrowings decreased from RMB 140.8 million to RMB 134.4 million, with a debt ratio of 4.1% as of June 30, 2019[30]. - Trade and other receivables decreased by approximately 5.2% from RMB 133.9 million to RMB 127.0 million, with trade receivables dropping from RMB 113.8 million to RMB 63.1 million[27]. - Trade and other payables decreased by approximately 32.4% from RMB 384.9 million to RMB 260.0 million, with trade payables falling from RMB 189.4 million to RMB 86.6 million[28]. - The company’s retained earnings decreased to RMB 30,214 thousand as of June 30, 2019, down from RMB 38,050 thousand at the beginning of the year, a decline of approximately 20.5%[63]. - The company’s total liabilities secured by land use rights and property, plant, and equipment amounted to RMB 25,000,000 as of June 30, 2019[94]. Cost and Expenses - Distribution costs increased by approximately 15.4% to about RMB 23.3 million, primarily due to increased customer hospitality expenses during market expansion activities in China[20]. - Administrative expenses rose by approximately 21.5% to about RMB 33.6 million, mainly due to increased spending on new product research and development[21]. - Total operating expenses for the six months ended June 30, 2019, were RMB 256,562,000, an increase of 7.43% from RMB 238,676,000 in 2018[84]. - The cost of inventory for the six months ended June 30, 2019, was RMB 178,622,000, up from RMB 157,784,000 in 2018, reflecting an increase of 13.16%[84]. - The total employee cost for the first half of 2019 was approximately RMB 35.5 million, a decrease from RMB 41.6 million in the same period of 2018[39]. Shareholder Information - The company’s major shareholders include Mr. Yang, holding approximately 69.79% of the shares, and Mr. Feng, holding about 5.21%[42]. - The company has adopted a share option scheme allowing a maximum of 30,000,000 shares to be granted, which is 10% of the shares issued at the time of listing[49]. - No share options have been granted, exercised, cancelled, or lapsed under the share option scheme since its adoption until the report date[50]. - As of June 30, 2019, the company had a total of 300,000,000 shares issued, with major shareholders holding significant stakes, including Spearhead Leader with 69.79% and Star Glide Limited with 5.21%[46][47]. Governance and Compliance - The company has complied with the corporate governance code as per the listing rules during the six months ending June 30, 2019[53]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial results, ensuring compliance with applicable accounting standards and regulations[55]. - The company has not adopted any new accounting standards that would have a significant impact on its financial statements for the period[69]. Other Financial Metrics - Government grants for the six months ended June 30, 2019, amounted to RMB 2,817,000, compared to RMB 840,000 in 2018, representing a significant increase of 235.71%[82]. - The company incurred a total comprehensive loss of RMB 8,011 thousand for the six months ended June 30, 2019, compared to a total comprehensive income of RMB 18,335 thousand in the same period of 2018[63]. - The company reported a significant decrease in property, plant, and equipment, with a value of RMB 20,238 thousand as of June 30, 2019, down from RMB 30,921 thousand as of December 31, 2018, representing a decline of 34.5%[109].

Financial Performance - For the year ended December 31, 2018, the company's revenue was approximately RMB 567.1 million, an increase of about 7.0% or RMB 37.1 million compared to 2017[18]. - The gross profit for the same period was approximately RMB 122.5 million, representing a year-on-year increase of about 4.5% or RMB 5.3 million[18]. - The profit attributable to owners of the company surged approximately 461.8% to about RMB 13.0 million, an increase of RMB 10.7 million compared to the previous year[18]. - The company's revenue for the year ended December 31, 2018, was approximately RMB 567.1 million, representing a 7.0% increase compared to the previous year[32]. - The gross profit increased by approximately 4.5% to about RMB 122.5 million, with a gross margin of approximately 21.6%, down from 22.1% in the previous year[33]. - Distribution costs rose by approximately 16.5% to about RMB 38.8 million, primarily due to increased marketing expenses related to expanding into new markets in China[34]. - Administrative expenses decreased by approximately 0.7% to about RMB 59.8 million, reflecting cost control measures[35]. - Other income increased by approximately RMB 3.6 million to about RMB 3.9 million, mainly due to increased government subsidies[36]. - Financing costs decreased by approximately 29.5% to about RMB 4.7 million, attributed to a reduction in bank loan interest[38]. - The company's profit attributable to owners increased by approximately 461.8% from RMB 2.3 million in 2017 to RMB 13.0 million in 2018[41]. - The company reported a total comprehensive income of RMB 15,820 thousand for 2018, compared to RMB 6,386 thousand in 2017, indicating a substantial increase[190]. Cash Flow and Investments - As of December 31, 2018, the group maintained a cash and cash equivalents balance of approximately RMB 212.5 million, up from RMB 193.9 million in 2017[44]. - The group’s capital expenditure totaled approximately RMB 56.2 million in 2018, a significant increase from RMB 7.5 million in 2017[46]. - Operating cash flow for the year ended December 31, 2018, was RMB 210,360,000, a significant increase from RMB 74,825,000 in 2017, representing a growth of 180.5%[197]. - Cash used in investing activities amounted to RMB 46,903,000, compared to RMB 14,177,000 in 2017, reflecting a rise of 230.5%[197]. - The company made significant investments in property, plant, and equipment, totaling RMB 17,611,000, compared to RMB 5,956,000 in the previous year, indicating a rise of 196.5%[197]. Operational Efficiency - The average turnover days for trade receivables decreased from approximately 146 days in 2017 to about 99 days in 2018[18]. - The average turnover days for trade payables increased from approximately 245 days in 2017 to about 260 days in 2018[19]. - The average inventory turnover days rose from approximately 114 days in 2017 to about 125 days in 2018[19]. - The company has successfully reduced production costs through internal production optimization measures and negotiations with key paper suppliers[24]. - The company is committed to investing in machinery and equipment to enhance production capabilities and maintain international standards[28]. Corporate Governance - The company has adhered to the corporate governance code as stipulated in the Listing Rules, confirming compliance for the year ending December 31, 2018[71]. - The board consists of six members, including one executive director, two non-executive directors, and three independent non-executive directors, ensuring compliance with corporate governance standards[74]. - The independent non-executive directors have confirmed their independence according to the standards set out in the Listing Rules, ensuring effective independent judgment[76]. - The company has established an audit committee, a remuneration committee, and a nomination committee to oversee various responsibilities[88]. - The company emphasizes the importance of good corporate governance for effective accountability[170]. Employee and Social Responsibility - The group employed 850 staff as of December 31, 2018, compared to 788 staff in 2017, with total employee costs amounting to approximately RMB 86.8 million[51]. - The company actively invests in employee development, providing various training programs to enhance skills and team performance[113]. - The company has a strict policy against forced labor and child labor, with no violations reported during the reporting period[111]. - The company has established internal management guidelines for participating in social welfare and charitable activities[126]. - No severe industrial accidents were recorded in 2018, indicating a strong adherence to health and safety regulations[112]. Environmental Impact - The company incurred environmental protection costs of approximately RMB 1,087,000 and RMB 1,235,000 for the years ended December 31, 2018, and 2017, respectively[117]. - Total carbon dioxide emissions amounted to 2,366 tons in 2018, with nitrogen oxides emissions at 484 tons[117]. - The company generated 201 tons of hazardous waste from production and wastewater treatment in 2018, with a hazardous waste generation rate of 0.3 tons per RMB 1 million of goods sold[117]. - The company has implemented a green program to manage energy consumption, water usage, and waste production[171]. Related Party Transactions - The company has established contracts for paper supply with related parties, ensuring compliance with relevant regulations[148]. - The company has adhered to the disclosure requirements under Chapter 14A of the Listing Rules for related party transactions[149]. - The independent auditor confirmed that there were no concerns regarding related party transactions exceeding their respective annual caps[139]. Future Plans and Market Strategy - The company aims to expand its product range and increase market share in the mid-to-high-end cigarette packaging market[23]. - The company plans to restore public float by selling shares to independent third parties, with the process expected to commence after the announcement of the annual results for the year ending December 31, 2018[56]. - The company aims to enhance product design and innovation in response to increasing regulations on cigarette consumption, focusing on attracting younger consumers and solidifying market competitiveness[57]. - The company intends to expand into the Guangxi market, aiming to become an approved supplier of paper cigarette packaging in that region, while also establishing offices near major clients to facilitate business development[57].