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） 盈利警告 本 公 告 乃 由 嘉 耀 控 股 有 限 公 司（「 本 公 司 」， 連 同 其 附 屬 公 司 統 稱 為「 本 集 團」）根據香港聯合交易所有限公司證券上市規則（「上市規則」）第13.09條及 香港法例第571章證券及期貨條例第XIVA部項下的內幕消息條文（ 定義見上 市規則 ）作出。 香 港 交易 及 結 算 所 有限 公 司 及 香港 聯 合 交 易 所有 限 公 司 對 本公 告 的 內 容概 不 負 責， 對 其 準 確 性或 完 整 性 亦不 發 表 任 何 聲明 ， 並 明 確 表示 不 會 就 因本 公 告 全部 或 任 何 部 分內 容 而 產 生或 因 依 賴 該 等內 容 而 引 致 的任 何 損 失 承擔 任何責任。 香港，二零二五年八月五日 整（ 如有 ），且 並非 以經 由本 公司 核數 師或 本公 司審 核委 員會 審閱 或審 核的 任 何 數字 或 資 料 作 依據 。 本 公 司股 東 及 有 意 投資 者 務 請 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | | | 致：香港交易及結算所有限公司 公司名稱: 嘉耀控股有限公司 呈交日期: 2025年8月1日 第 2 頁 共 10 頁 v 1.1.1 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01626 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.01 HKD | | 20,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.01 HKD | | 20,000,000 | 本月底法定/註冊股本總額： HKD 20,000 ...

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].

Group 1 - The article discusses various financial metrics such as earnings per share, net asset value per share, operating cash flow per share, and retained earnings per share [1] - Key performance indicators include return on equity, gross margin, net profit, and cash content [1] - Revenue growth and net profit growth are highlighted, along with the year-on-year changes in non-recurring net profit and operating cash flow [1] Group 2 - The article emphasizes the importance of financial ratios such as asset-liability ratio, current ratio, quick ratio, and cash ratio [1] - It categorizes financial performance by product, industry, and region, indicating a comprehensive analysis approach [1]

[Financial Highlights](index=2&type=section&id=Financial%20Highlights) [Summary of Financial and Operating Performance](index=2&type=section&id=Summary%20of%20Financial%20and%20Operating%20Performance) The company experienced significant revenue and gross profit growth for the six months ended June 30, 2024, despite a decline in gross margin and profit attributable to owners, alongside mixed changes in working capital turnover days and no interim dividend recommendation Key Financial Indicators for H1 2024 | Indicator | H1 2024 | H1 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. 742.8 million RMB | 526.6 million RMB | +41.1% | | Gross Profit | Approx. 153.6 million RMB | 119.1 million RMB | +28.9% | | Gross Margin | Approx. 20.7% | Approx. 22.6% | -1.9 percentage points | | Profit Attributable to Owners of the Company | Approx. 14.8 million RMB | 21.1 million RMB | -29.8% | Changes in Working Capital Turnover Days | Indicator | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Average Trade Receivables and Bills Turnover Days | Approx. 84 Days | Approx. 68 Days | Increase of 16 Days | | Average Trade Payables and Bills Turnover Days | Approx. 180 Days | Approx. 202 Days | Decrease of 22 Days | | Average Inventory Turnover Days | Approx. 65 Days | Approx. 74 Days | Decrease of 9 Days | - The Board does not recommend an interim dividend for the six months ended June 30, 2024[3](index=3&type=chunk) [Corporate Information](index=3&type=section&id=Corporate%20Information) [Company Basic Information](index=3&type=section&id=Company%20Basic%20Information) This section details the company's fundamental information, including its board and committee members, registered office, principal business locations, key personnel, and financial partners - The report lists the company's core management, legal, and financial partners, with **Mr. Yang Wing On** as Chairman and **PricewaterhouseCoopers** as the auditor[3](index=3&type=chunk) [Chairman's Report](index=4&type=section&id=Chairman%27s%20Report) [Chairman's Statement](index=4&type=section&id=Chairman%27s%20Statement) Chairman Mr. Yang Wing On highlights a **41.1% year-on-year revenue growth** driven by the e-cigarette industry, successful global market expansion, enhanced R&D capabilities, and a future focus on consolidating market leadership in e-cigarette business - Benefiting from the strong growth in the global e-cigarette market, the Group focused on developing its own brand e-cigarette products, leading to significant overall revenue growth[4](index=4&type=chunk) H1 2024 Performance Highlights | Indicator | Value | | :--- | :--- | | Overall Revenue Growth | 41.1% | | Revenue Amount | Approx. 742.8 million RMB | | Cash and Cash Equivalents | 254.9 million RMB | - During the reporting period, the Group successfully expanded its market into the Middle East and South America, continuously strengthening its R&D capabilities through initiatives like establishing a technology innovation research institute and joint laboratories[4](index=4&type=chunk) [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) [Market and Business Review](index=5&type=section&id=Market%20and%20Business%20Review) Amidst China's **5% GDP growth** and global e-cigarette market expansion, the Group, primarily in e-cigarette and paper packaging, is strategically focusing on its e-cigarette segment for future growth, including own-brand and OEM/ODM services, particularly in overseas markets due to domestic competition and regulation - The global e-cigarette market is expanding, with China, as a major producer, poised for rapid export growth; the Group's business is divided into e-cigarette and paper cigarette packaging segments, with the e-cigarette segment considered a key driver for future revenue and profit growth[5](index=5&type=chunk)[6](index=6&type=chunk) - The e-cigarette segment's customers are located across Europe, America, and Southeast Asia, with successful expansion into Middle Eastern countries during the reporting period[7](index=7&type=chunk) [Operating Strategies](index=7&type=section&id=Operating%20Strategies) The Group significantly boosted R&D investment to **approximately 50.1 million RMB** to foster innovation and production efficiency, while implementing various cost control measures and achieving strong sales growth for its own-brand e-cigarettes through quality and customer recognition Product R&D Investment | Period | Investment Amount (RMB) | | :--- | :--- | | For the six months ended June 30, 2024 | Approx. 50.1 million | | For the six months ended June 30, 2023 | Approx. 9.6 million | - The Group implemented various cost control measures, including process optimization, productivity enhancement, introducing new suppliers, rolling inventory preparation, and consolidating production orders[12](index=12&type=chunk) [Financial Review](index=7&type=section&id=Financial%20Review) The Group's H1 2024 turnover grew **41.1%**, primarily from the e-cigarette segment's **50% growth**, yet overall gross margin declined to **20.7%** due to the paper packaging segment, and increased operating expenses led to a **29.8% decrease** in profit attributable to owners, while net current assets decreased and interest-bearing borrowings rose [Turnover](index=7&type=section&id=Turnover) For the six months ended June 30, 2024, the Group's turnover reached **approximately 742.8 million RMB**, marking a **41.1% year-on-year increase**, predominantly driven by the e-cigarette segment's **50.0% growth** and **55.6% contribution** to total revenue Segment Sales Details (For the six months ended June 30) | Segment | 2024 (RMB thousand) | 2023 (RMB thousand) | Change Rate | | :--- | :--- | :--- | :--- | | E-cigarette Segment | 412,623 | 275,054 | +50.0% | | Paper Cigarette Packaging and Social Product Paper Packaging Segment | 330,142 | 251,517 | +31.3% | | **Total** | **742,765** | **526,571** | **+41.1%** | [Gross Profit and Gross Margin](index=8&type=section&id=Gross%20Profit%20and%20Gross%20Margin) The Group's gross profit rose **28.9% to 153.6 million RMB**, yet the overall gross margin declined from **22.6% to 20.7%**, primarily due to a significant drop in the paper cigarette packaging segment's gross margin, negatively affecting overall profitability - Gross profit increased by **approximately 28.9%** from **119.1 million RMB** in the same period last year to **153.6 million RMB**[13](index=13&type=chunk) - Gross margin decreased by **1.9 percentage points** from **22.6%** in the same period last year to **20.7%**, primarily dragged down by a significant decline in the gross margin of the paper cigarette packaging segment[13](index=13&type=chunk) [Operating Expenses and Profit](index=8&type=section&id=Operating%20Expenses%20and%20Profit) Distribution costs surged **93.1%** and administrative expenses rose **28.7%** due to increased staff and R&D costs, leading to a **29.8% year-on-year decrease** in profit attributable to owners, settling at **14.8 million RMB** - Distribution costs increased by **93.1%** year-on-year to **48.0 million RMB**, primarily due to increased staff costs and e-cigarette product promotion expenses[14](index=14&type=chunk) - Administrative expenses increased by **28.7%** year-on-year to **76.3 million RMB**, mainly due to increased staff costs and innovation development costs for own-brand e-cigarette products[16](index=16&type=chunk) - Profit attributable to owners of the company decreased by **29.8%** from **21.1 million RMB** in the same period last year to **14.8 million RMB**[21](index=21&type=chunk) [Liquidity and Financial Resources](index=9&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2024, the Group's net current assets decreased to **approximately 255.8 million RMB**, with cash and cash equivalents at **approximately 254.9 million RMB**, while interest-bearing borrowings increased to **114.8 million RMB**, and capital expenditure totaled **approximately 50.1 million RMB** mainly for plant and machinery Liquidity and Debt Position (RMB) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net Current Assets | Approx. 255.8 million | Approx. 314.4 million | | Cash and Cash Equivalents | Approx. 254.9 million | Approx. 311.2 million | | Interest-bearing Borrowings | 114.8 million | 61.5 million | - For the six months ended June 30, 2024, total capital expenditure amounted to **approximately 50.1 million RMB**, significantly higher than **9.6 million RMB** in the same period last year, primarily for the purchase of plant and machinery[25](index=25&type=chunk) [Future Outlook](index=12&type=section&id=Future%20Outlook) The Group foresees continued global e-cigarette market expansion, focusing on overseas markets, and plans to enhance R&D, expand distribution, and develop new products to become a one-stop own-brand e-cigarette company, maximizing shareholder returns - The Group's core future strategy is to expand its e-cigarette market share, especially in overseas markets, aiming to become a one-stop company with its own brands[36](index=36&type=chunk) - To achieve its goals, the Group will focus on: - Closely following emerging tobacco trends - Strengthening R&D capabilities to foster innovation - Expanding global distribution channels - Actively developing new products and collaborating with renowned enterprises[36](index=36&type=chunk) [Corporate Governance and Other Information](index=13&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Directors' and Shareholders' Interests](index=13&type=section&id=Directors%27%20and%20Shareholders%27%20Interests) This section details the shareholdings of directors, chief executives, and substantial shareholders, highlighting Chairman Mr. Yang Wing On's **69.79% controlling interest** through Spearhead Leader Limited Major Directors' and Shareholders' Interests (As at June 30, 2024) | Name/Designation | Capacity/Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Yang Wing On | Interest in controlled corporation | 418,724,000 | 69.79% | | Spearhead Leader | Beneficial owner | 418,724,000 | 69.79% | | Ms. Choi Yiu Fai | Spouse's interest | 418,724,000 | 69.79% | [Share Option Scheme](index=14&type=section&id=Share%20Option%20Scheme) The company's 2014 Share Option Scheme saw **30,000,000 options granted** on December 7, 2022, at an exercise price of **HK$1.00 per share**, with **26,300,000 options remaining unexercised** as of the reporting period, and no new grants - On December 7, 2022, the company granted a total of **30,000,000 share options** under the Share Option Scheme, with an exercise price of **HK$1.00**[44](index=44&type=chunk) Movements in Share Options (For the six months ended June 30, 2024) | Grantee | Number at Beginning of Period | Movements During Period | Number Unexercised at End of Period | | :--- | :--- | :--- | :--- | | Mr. Li Siu On | 3,600,000 | 0 | 3,600,000 | | Mr. Ng Hung Wai | 100,000 | 0 | 100,000 | | Other Employees | 26,300,000 | 0 | 26,300,000 | [Compliance and Review](index=16&type=section&id=Compliance%20and%20Review) The company adhered to the Corporate Governance Code and Model Code for Securities Transactions by Directors, and while interim financial results were not externally audited, they were reviewed and approved by the Audit Committee for compliance and adequate disclosure - The company has complied with the Corporate Governance Code, and all directors confirmed compliance with the Model Code for Securities Transactions[50](index=50&type=chunk)[51](index=51&type=chunk) - Although the interim financial results were not reviewed by external auditors, they were reviewed and approved by the Audit Committee[52](index=52&type=chunk) [Condensed Consolidated Financial Statements](index=17&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Comprehensive Income](index=17&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the six months ended June 30, 2024, the company reported **742.8 million RMB in revenue** and **153.6 million RMB in gross profit**, with **14.8 million RMB profit attributable to owners** and **basic earnings per share of 0.025 RMB** H1 2024 Income Statement Summary (RMB thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 742,765 | 526,571 | | Gross Profit | 153,608 | 119,137 | | Operating Profit | 37,435 | 35,281 | | Profit for the Period | 27,247 | 31,499 | | Profit Attributable to Owners of the Company | 14,808 | 21,094 | | Basic Earnings Per Share (RMB) | 0.025 | 0.035 | [Condensed Consolidated Statement of Financial Position](index=18&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group reported **total assets of 1,428.8 million RMB**, **total liabilities of 900.3 million RMB**, and **total equity of 528.5 million RMB**, with **419.4 million RMB attributable to owners of the company** Statement of Financial Position Summary (RMB thousand) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 319,074 | 247,513 | | Current assets | 1,109,710 | 1,217,727 | | **Total assets** | **1,428,784** | **1,465,240** | | **Equity and Liabilities** | | | | Total equity | 528,511 | 540,023 | | Non-current liabilities | 46,409 | 21,862 | | Current liabilities | 853,864 | 903,355 | | **Total liabilities** | **900,273** | **925,217** | [Condensed Consolidated Statement of Cash Flows](index=21&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The reporting period saw a net cash outflow of **53.5 million RMB from operating activities** and **33.7 million RMB from investing activities**, offset by a **28.7 million RMB net cash inflow from financing activities**, resulting in a **58.5 million RMB net decrease** in cash and cash equivalents, with an ending balance of **254.9 million RMB** H1 2024 Cash Flow Statement Summary (RMB thousand) | Item | Amount | | :--- | :--- | | Net Cash Used in Operating Activities | (53,460) | | Net Cash Used in Investing Activities | (33,698) | | Net Cash From Financing Activities | 28,691 | | Net Decrease in Cash and Cash Equivalents | (58,467) | | Cash and Cash Equivalents at Beginning of Period | 311,156 | | **Cash and Cash Equivalents at End of Period** | **254,927** | [Notes to the Condensed Consolidated Interim Financial Information](index=22&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Interim%20Financial%20Information) [Segment Information](index=24&type=section&id=Segment%20Information) The Group's business is segmented into e-cigarette and paper packaging, with the e-cigarette segment being the main revenue and profit driver, contributing **412.6 million RMB in revenue**, **118.7 million RMB in gross profit**, and **87.0 million RMB in segment results** during the reporting period H1 2024 Segment Results (Unaudited, RMB thousand) | Item | E-cigarette | Paper Cigarette Packaging and Other | Total | | :--- | :--- | :--- | :--- | | Revenue | 412,623 | 330,142 | 742,765 | | Gross Profit | 118,679 | 34,929 | 153,608 | | Segment Results | 87,011 | 18,589 | 105,600 | [Events After the Reporting Period](index=39&type=section&id=Events%20After%20the%20Reporting%20Period) On September 6, 2024, the company agreed to conditionally sell a **70% equity interest** in its subsidiary, Giant Harmony Limited, for **115 million RMB**, after which the target company's financial results will no longer be consolidated into the Group's statements - On September 6, 2024, the company agreed to sell a **70% equity interest** in its subsidiary, Giant Harmony Limited, for a consideration of **115 million RMB**[128](index=128&type=chunk)

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]

| --- | --- | --- | --- | |--------------------|-------------------------------------------|-------------------|-------------------| | 能源消耗及资源使用 | | 二零二三年 \n數據 | 二零二二年 \n數據 | | 能源 | 燃料及燃氣(兆瓦時) | 1,137,238.0 | 1.176.507.9 | | | 電力(兆瓦時) | 17,751.1 | 46,556.9 | | | 每售出人民幣1百萬元商品消耗的能源(兆瓦時) | 1,560.6 | 3.711.7 | | 水 | 以立方米表示(生產、餐廳及宿舍耗水量) | 101,987.2 | 125,340.0 | | | 每售出人民幣1百萬元商品的耗水量(立方米) | 334.9 | 227.4 | | 紙張 | 生產消耗的紙張總量(噸) | 19,792.0 | 20,148.4 | | 電子煙油 | 生產消耗的電子煙油總量(顧) | 73,066.7 | 61.2 | | 尼古丁 | 生產消耗的尼古丁總量(千 ...

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].