Financial Performance - For the fiscal year 2024, the company's revenue was approximately HKD 143.77 million, a decrease of 7.5% compared to HKD 155.39 million in fiscal year 2023[15]. - The loss attributable to the company's owners for fiscal year 2024 was approximately HKD 110.77 million, an increase of 169.0% from a loss of HKD 41.18 million in fiscal year 2023[15]. - The cigarette packaging business generated revenue of approximately HKD 132.64 million in fiscal year 2024, down 14.4% from approximately HKD 154.88 million in fiscal year 2023[16]. - The gross profit for FY2024 was approximately HKD 7,380,000, down from HKD 33,300,000 in FY2023, reflecting a significant decline[18]. - The gross margin for FY2024 was 5.1%, a decrease of 16.3 percentage points from 21.4% in FY2023, primarily due to lower sales in the cigarette packaging business[19]. - The net impairment loss on financial and contract assets rose to approximately HKD 79,610,000 in FY2024, an increase of about 345.5% from HKD 17,860,000 in FY2023[22]. - The net asset value of the group decreased to HKD 197,610,000 as of December 31, 2024, down from HKD 315,200,000 as of December 31, 2023[31]. - The company did not recommend a final dividend for FY2024, consistent with the previous fiscal year[27]. Operational Highlights - The environmental governance business saw a slight improvement in revenue, but the overall gross loss expanded to HKD 28.99 million due to additional costs from maintaining existing projects and obtaining new contracts[10]. - The company confirmed impairment losses of HKD 79.61 million due to high credit risk from financially strained clients in the environmental governance sector[11]. - The company plans to adopt a cautious strategy in future decision-making to navigate the challenging market environment and seek new growth opportunities[12]. - The company aims to maintain strong relationships with local governments to enhance opportunities for future projects amid financial constraints[11]. - The company is committed to creating long-term value and ensuring business continuity and competitiveness under various market conditions[12]. Employee and Workforce Management - The group employed 258 full-time employees as of December 31, 2024, down from 288 employees as of December 31, 2023[40]. - The total employee compensation for fiscal year 2024 was HKD 36,400,000, compared to HKD 37,990,000 in fiscal year 2023[40]. - Employee turnover at Shantou Xinda for the year is 12, up from 8 in 2023, indicating an increase in turnover rate[163]. - Total full-time employees at Hongdong Governance as of December 31, 2024, is 37, down from 60 in 2023, reflecting a reduction in workforce[162]. - Employee turnover at Hongdong Governance for the year is 23, compared to 11 in 2023, showing a significant increase in turnover[163]. - The company emphasizes equal pay for equal work and has established a series of assessment procedures for employee performance evaluation[1]. - The company provides various employee benefits, including social insurance and performance-based bonuses[161]. - The company is committed to creating a fair work environment and opposes any form of discrimination[1]. Corporate Governance - The board of directors believes effective governance is essential for maintaining competitiveness and healthy growth[50]. - The company has adopted and applied the principles of the corporate governance code[50]. - The board held only two regular meetings this year to review and discuss the company's annual and interim performance[51]. - The company appointed a female director to enhance gender diversity on the board[51]. - The chairman and CEO roles are held by the same individual, which the board believes does not imbalance power and authority[50]. - The company has a commitment to providing high-quality products and services to its customers[49]. - The company has a strong focus on strategic planning and management of key performance indicators[47]. - The company has a dedicated team with extensive experience in financial management and corporate governance[48]. - The company is committed to regular reviews of its governance practices to ensure compliance with applicable codes[50]. - The board of directors consists of three executive directors and three independent non-executive directors, ensuring a diverse range of business and professional expertise[54]. Environmental Management - In 2024, Shantou Xinda's carbon dioxide emissions totaled 2,961.51 tons, a decrease of approximately 6.1% compared to 2023[117]. - The total carbon dioxide emissions for Hongdong Governance in 2024 were 134.43 tons, reflecting a 23.86% reduction from the previous year[117]. - Shantou Xinda's volatile organic compounds (VOCs) emissions were recorded at 11.8 micrograms per cubic meter in 2024, well below the Guangdong provincial standard limit of 120 micrograms per cubic meter[113]. - The company has implemented a waste gas collection and treatment system to ensure compliance with environmental standards[112]. - The company aims to maintain stable business operations while targeting a 1% reduction in carbon dioxide emissions for 2025[118]. - The company has committed to regular maintenance of wastewater treatment facilities to ensure compliance with discharge standards[108]. - The company has developed an emergency response plan for environmental incidents, which has been reviewed by experts and filed with relevant government departments[112]. - The company emphasizes energy-saving practices across all departments and positions, fostering a culture of resource conservation[143]. Training and Development - The company provided training for a total of 422 employee instances in the current year, with a total training duration of 30 hours, compared to 665 instances and 76 hours in the previous year[172]. - The percentage of trained employees by category shows that 3.08% of senior management received an average of 2.46 hours of training, while 33.41% of middle management received an average of 2.01 hours[173]. - The company conducted various training sessions throughout the year, including safety training for 70 employees in May and fire drills for 117 employees in July[172]. - The company encourages employees to participate in training and self-learning to enhance their professional skills and quality awareness[170]. Quality Management - The company has implemented a comprehensive quality management system certified by GB/T19001-2008 and ISO9001:2008, ensuring product quality through rigorous internal controls and regular inspections[187]. - The company has a robust product traceability system, allowing any product to be traced back through every stage of the production process[187]. - The company is enhancing its online monitoring systems to better control product quality during the production process[187]. - There were no product recalls due to safety and health reasons in the current year[190]. - The company received no complaints regarding products and services in the current year[190]. Community Engagement - The company actively engages in community activities and encourages employees to participate in volunteer and charity events[197].

Financial Performance - Revenue decreased by 7.5% to HKD 143,770,000[5] - Gross profit decreased by 77.9% to HKD 7,380,000[5] - Operating loss increased by 179.8% to HKD 119,890,000[5] - Loss attributable to owners increased by 169.0% to HKD 110,770,000[5] - Basic loss per share increased by 168.99% to HKD 15.79 cents[5] - The group recorded a net loss of HKD 111,071,000 for the year, compared to a loss of HKD 41,631,000 in the previous year, representing a significant increase in losses[18] - The group reported a net loss attributable to shareholders of HKD 110,765,000 for the year ended December 31, 2024, compared to a loss of HKD 41,184,000 in 2023, representing an increase in losses of 168%[26] - The group’s total income for the previous fiscal year was HKD 155,387,000, indicating a decline in overall performance in the current year[18] Assets and Liabilities - Total assets decreased from HKD 488,498,000 to HKD 350,878,000[8] - Total equity attributable to owners decreased from HKD 321,787,000 to HKD 204,354,000[8] - Non-current assets decreased from HKD 147,056,000 to HKD 82,719,000[7] - Current assets decreased from HKD 341,442,000 to HKD 268,159,000[7] - Total liabilities decreased from HKD 173,297,000 to HKD 153,272,000[8] - The total assets of the group as of December 31, 2024, amounted to HKD 350,878,000, a decrease from HKD 488,498,000 in 2023, reflecting a decline of approximately 28.3%[19] - The total liabilities of the group as of December 31, 2024, were HKD 153,272,000, a decrease from HKD 173,297,000 in 2023, reflecting a decline of about 11.6%[19] - The net asset value of the group as of December 31, 2024, was HKD 197,610,000, a decrease from HKD 315,200,000 as of December 31, 2023[54] Segment Performance - For the fiscal year ending December 31, 2024, the group reported total revenue of HKD 143,768,000, with HKD 132,636,000 from the tobacco packaging business and HKD 11,025,000 from environmental management[18] - The tobacco packaging segment's performance showed a decrease in revenue from HKD 154,875,000 in the previous year to HKD 132,636,000, reflecting a decline of approximately 14.3%[18] - Environmental management business reported an operating loss of HKD 41,836,000, compared to a loss of HKD 28,175,000 in the previous year, indicating a worsening performance[18] - The environmental management business generated revenue of approximately HKD 11,030,000 in 2024, a significant increase of HKD 10,770,000 compared to HKD 260,000 in 2023[40] Impairment and Expenses - The group experienced an operating loss of HKD 119,892,000, with a significant contribution from financial and contract asset impairment losses totaling HKD 79,612,000[18] - The group’s financial and contract asset impairment losses for the year amounted to HKD 79,612,000, which included HKD 54,042,000 from unallocated items[18] - The impairment losses on trade receivables for the year ended December 31, 2024, amounted to HKD 18,995,000, an increase from HKD 10,904,000 in 2023, representing a rise of approximately 74.5%[23] - Depreciation and amortization expenses totaled HKD 9,267,000 for the year, with HKD 7,591,000 attributed to the tobacco packaging segment[18] - Administrative expenses decreased by 10.0% to approximately HKD 41,230,000 in 2024, down from HKD 45,810,000 in 2023[45] Cash Flow and Financing - The net cash generated from operating activities for 2024 was HKD 17,193,000, a significant increase of 212.5% compared to HKD 5,493,000 in 2023[57] - The net cash used in investing activities improved to HKD 12,084,000 in 2024 from a cash outflow of HKD 37,589,000 in 2023[57] - The group recorded a net cash increase of HKD 14,747,000 in 2024, contrasting with a decrease of HKD 34,249,000 in 2023[57] - The group's borrowings decreased to HKD 10,260,000 as of December 31, 2024, down 54.6% from HKD 22,620,000 on December 31, 2023[58] - The asset-liability ratio was 0% as of December 31, 2024, compared to 4.08% on December 31, 2023, due to a net cash surplus[58] Employee and Governance - The group employed a total of 258 full-time employees as of December 31, 2024, down from 288 employees in the previous year[67] - Total employee compensation for the year amounted to HKD 36,400,000, a decrease from HKD 37,990,000 in 2023[67] - The company has adopted and applied the corporate governance code as per the listing rules, ensuring compliance with high standards of corporate governance[69] - The board held only two regular meetings during the year, instead of the required four, due to the absence of quarterly performance announcements[71] Future Outlook and Strategy - The company plans to strengthen relationships with existing customers and seek new clients to expand its market share in the cigarette packaging materials sector[65] - The management will continue to explore ecological restoration projects and identify new wastewater treatment projects to broaden revenue sources[66] - The company is exploring new product development and technological advancements[76] - The company is actively considering mergers and acquisitions as part of its growth strategy[76]

Financial Performance - The company recorded revenue of approximately HKD 62,620,000, a decrease of about HKD 8,120,000 or 11.5% compared to HKD 70,740,000 in the previous fiscal period[7]. - The loss attributable to the company's owners was approximately HKD 20,990,000, an increase of about HKD 12,920,000 or approximately 160.1% compared to HKD 8,070,000 in the previous fiscal period[16]. - Revenue from the cigarette packaging business was approximately HKD 58,450,000, a decrease of HKD 12,360,000 or 17.5% from HKD 70,810,000 in the previous fiscal period[8]. - The gross profit for the company was approximately HKD 9,030,000, down from HKD 17,920,000 in the previous fiscal period, resulting in a gross margin of 14.4%, a decrease of 10.9% from 25.3%[10]. - The gross margin for the cigarette packaging business was approximately 28.2%, down from 32.8% in the previous fiscal period, primarily due to decreased sales and rising raw material prices[10]. - The company reported a net loss of HKD 21,046,000 for the six months ended June 30, 2024, compared to a net loss of HKD 8,442,000 in 2023, representing an increase in losses of 148.5%[36]. - The company recorded a comprehensive loss of HKD 23,672 thousand for the six months ended June 30, 2024, compared to a comprehensive loss of HKD 19,229 thousand for the same period in 2023, indicating a worsening of approximately 23.5%[40]. Cash Flow and Liquidity - The group reported a net cash outflow from operating activities of HKD 1,865,000 for the fiscal period 2024, an improvement from HKD 6,855,000 in the fiscal period 2023[21]. - The company’s cash and cash equivalents decreased to HKD 10,911,000 from HKD 12,341,000, a decline of 11.6%[38]. - The company’s financing activities resulted in a net cash outflow of HKD 6,651 thousand for the six months ended June 30, 2024, compared to a net outflow of HKD 2,712 thousand for the same period in 2023, indicating a worsening in cash flow management[42]. - The group’s cash flow management remains under scrutiny due to regulatory constraints on capital outflows from China[80]. Assets and Liabilities - As of June 30, 2024, the group's net asset value was HKD 291,510,000, down from HKD 315,200,000 as of December 31, 2023, and the operating cash surplus was HKD 156,490,000, down from HKD 174,660,000[21]. - Total assets as of June 30, 2024, were HKD 447,574,000, a decrease of 8.4% from HKD 488,498,000 as of December 31, 2023[38]. - Total liabilities decreased to HKD 156,062 thousand as of June 30, 2024, from HKD 173,297 thousand as of December 31, 2023, reflecting a reduction of about 10%[39]. - The company’s non-current assets totaled HKD 141,123,000, down from HKD 147,056,000, a decrease of 4.0%[38]. - The group’s total liabilities decreased to HKD 101,646,000 as of June 30, 2024, from HKD 106,262,000 as of December 31, 2023[82]. Operational Highlights - The cigarette packaging business remains the core business, with efforts to strengthen relationships with existing customers and seek new clients to expand market share[26]. - The environmental governance business is expected to face challenges due to local government financial constraints, with low opportunities for new ecological restoration projects[26]. - The group continues to focus on expanding its market presence and enhancing its product development capabilities[76]. Employee and Management - The group employed a total of 273 full-time employees as of June 30, 2024, down from 288 employees as of December 31, 2023[26]. - Total employee compensation, including directors' remuneration and benefits, amounted to HKD 15,680,000 for the reporting period, compared to HKD 16,850,000 in the previous fiscal period[26]. - The total remuneration for key management personnel for the six months ended June 30, 2024, was 1,902 thousand HKD, a decrease of 8.7% from 2,083 thousand HKD for the same period in 2023[91]. Corporate Governance - The company has adhered to the corporate governance code during the reporting period, with the exception of the separation of roles between the chairman and CEO[27]. - The board held only one regular meeting during the reporting period to review and discuss the company's annual performance[28]. Shareholder Returns - The company did not recommend the payment of an interim dividend for the reporting period[17]. - The company did not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous fiscal period[67]. Financial Commitments and Risks - The group has capital commitments of approximately HKD 4,090,000 related to the purchase of property, plant, and equipment as of June 30, 2024[24]. - The group has not established any hedging policies for foreign exchange risks, which mainly involve cash and bank balances denominated in HKD[23]. - The group provided loans to third parties amounting to HKD 11,559,000, with a significant loan of HKD 10,737,000 to a real estate developer in Guangdong, which has been fully impaired due to the borrower's financial difficulties[77].

Financial Performance - Revenue decreased by 11.5% to HKD 62,620,000 compared to the same period last year[1] - Gross profit decreased by 49.6% to HKD 9,030,000[1] - Operating loss increased by 152.9% to HKD 21,240,000[1] - Loss attributable to owners increased by 160.1% to HKD 20,990,000[1] - Basic loss per share increased by 160.0% to HKD 2.99[1] - The group reported an operating loss of HKD 8,400,000 for the six months ended June 30, 2024, compared to a loss of HKD 3,769,000 in the previous period[13] - The group incurred a total loss of HKD 8,442,000 for the period, with a tax expense of HKD 519,000[13] - The group reported a net impairment loss of HKD 6,000 for financial and contract assets[12] - The group’s total revenue decreased by 10% compared to the previous period, reflecting challenges in the environmental governance sector[12] - The group recorded a net loss attributable to the owners of approximately HKD 20,990,000 for the fiscal year 2024, an increase of approximately HKD 12,920,000 or about 160.1% compared to the net loss of HKD 8,070,000 in fiscal year 2023[40] Assets and Liabilities - Total assets decreased from HKD 488,498,000 to HKD 447,574,000[5] - Non-current assets decreased from HKD 147,056,000 to HKD 141,123,000[5] - Current assets decreased from HKD 341,442,000 to HKD 306,451,000[5] - Total liabilities decreased from HKD 173,297,000 to HKD 156,062,000[7] - The group’s total liabilities amounted to HKD 156,062,000, with HKD 67,790,000 attributed to the cigarette packaging business and HKD 268,833,000 to the environmental governance business[14] - The group’s total assets as of June 30, 2024, were valued at HKD 291,510,000, down from HKD 315,200,000 as of December 31, 2023[45] - As of June 30, 2024, the group's borrowings amounted to approximately HKD 16,980,000, a decrease from HKD 22,620,000 as of December 31, 2023, with a fixed interest rate of 3.70%[47] - The debt-to-equity ratio as of June 30, 2024, was 3.33%, down from 4.08% as of December 31, 2023[47] Revenue Breakdown - Revenue from the cigarette packaging business reached HKD 70,806,000, while the environmental governance business reported a loss of HKD 121,000, resulting in total group revenue of HKD 70,735,000[12] - Revenue for the six months ended June 30, 2024, was HKD 62,615 thousand, a decrease of 11.5% compared to HKD 70,735 thousand for the same period in 2023[15] - Sales of cigarette packaging products decreased to HKD 58,445 thousand from HKD 70,806 thousand, representing a decline of 17.4%[15] - Revenue from environmental and ecological restoration contracts increased to HKD 4,069 thousand from a loss of HKD 121 thousand, indicating a significant recovery[15] - The cigarette packaging business generated revenue of approximately HKD 58,450,000, a decrease of HKD 12,360,000 or 17.5% from HKD 70,810,000 in the previous fiscal period[31] - The environmental management business recorded revenue of approximately HKD 4,070,000, compared to HKD 120,000 in the previous fiscal period[32] Expenses and Costs - Cost of goods sold for the six months ended June 30, 2024, was HKD 35,078 thousand, down from HKD 43,097 thousand, a decrease of 18.6%[20] - Employee costs, including director remuneration, were HKD 15,680 thousand, compared to HKD 16,845 thousand, a reduction of 6.9%[20] - Other losses netted HKD (10,973) thousand for the period, compared to HKD (3,769) thousand in the previous year, indicating increased financial strain[21] - Distribution costs for the reporting period were approximately HKD 280,000, an increase of HKD 90,000 from about HKD 190,000 in the previous year[34] - Administrative expenses were approximately HKD 18,200,000, a decrease of 16.1% or about HKD 3,500,000 from HKD 21,700,000 in the previous fiscal period[35] Market and Strategic Outlook - The group plans to enhance its market expansion strategies in the environmental governance sector to improve future performance[12] - The group anticipates challenges in the cigarette packaging and environmental management businesses for the remainder of 2024[52] - The group aims to strengthen relationships with existing customers and seek new clients to expand its market share in cigarette packaging materials[52] Shareholder Information - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[1] - The group did not recommend the payment of an interim dividend for the reporting period, consistent with fiscal year 2023[41] - The interim results announcement has been published on the company's website and the Hong Kong Stock Exchange website[58] - The interim report for the six months ending June 30, 2024, will be sent to shareholders in due course[58] Employment and Workforce - The group employed a total of 273 full-time employees as of June 30, 2024, a decrease from 288 employees as of December 31, 2023[53] - Total employee compensation during the reporting period was HKD 15,680,000, down from HKD 16,850,000 in the fiscal year 2023[53] Compliance and Governance - The audit committee has reviewed the group's interim performance for the reporting period[57] - The company has not engaged in any significant acquisitions or disposals related to subsidiaries, associates, or joint ventures during the reporting period[51] - The company did not engage in any purchases, redemptions, or sales of its listed securities during the reporting period[57]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 HUAXI HOLDINGS COMPANY LIMITED 華禧控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1689） 有關二零二三年年報的補充公告 茲 提 述 華 禧 控 股 有 公 司（「本公司」，連 同 其 附 屬 公 司 統 稱「本集團」）截 至 二 零 二 三 年 十 二 月 三 十 一 日 止 年 度 的 年 度 報 告（ ｢二零二三年年報｣ ）。除 另 有 說 明 外，本 公 告 所 用 詞 彙 與 二 零 二 三 年 年 報 所 界 定 者 具 相 同 涵 義。 本 公 司 董 事（ ｢董 事｣ ）會（ ｢董事會｣ ）謹 此 提 供 二 零 二 三 年 年 報 的 額 外 資 料 如 下： (a) 關於二零二三年年報第113頁附註2 3「預 付 款 項 ...

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 155,390,000, representing a decrease of 20.1% compared to the previous year[9]. - The loss attributable to the company's owners was HKD 41,180,000, a decline of 22.5% year-on-year[9]. - The group recorded a revenue of approximately HKD 155,390,000 for the fiscal year 2023, a decrease of about HKD 39,150,000 or 20.1% compared to HKD 194,540,000 in fiscal year 2022[18]. - Revenue from the cigarette packaging business was approximately HKD 154,880,000, down HKD 12,700,000 or 7.6% from HKD 167,580,000 in the previous fiscal year[19]. - The environmental governance business generated revenue of approximately HKD 260,000, a significant decrease of HKD 26,380,000 or 99.0% from HKD 26,640,000 in fiscal year 2022[19]. - The overall gross profit for the group was approximately HKD 33,300,000, down from HKD 47,060,000 in the previous fiscal year, resulting in a gross margin of 21.4%, a decline of 2.8%[21]. - The net impairment loss on financial and contract assets was approximately HKD 17,860,000, a decrease of about HKD 10,550,000 from HKD 28,410,000 in fiscal year 2022[24]. - The net asset value of the group as of December 31, 2023, was HKD 315,200,000, down from HKD 361,260,000 in the previous fiscal year[34]. - The total cash and restricted cash balance was approximately HKD 46,130,000, a decrease from HKD 91,230,000 in the previous fiscal year[34]. - The net cash inflow from operating activities for the fiscal year 2023 was HKD 5,493,000, a significant decrease from HKD 54,891,000 in fiscal year 2022[36]. - The total capital expenditure for the year was approximately HKD 15,200,000, down from HKD 69,470,000 in the previous fiscal year[39]. - The company reported a net decrease in cash and cash equivalents of HKD 34,249,000, resulting in year-end cash and cash equivalents of HKD 12,341,000[36]. Market Conditions - The domestic tobacco industry experienced a decline in high-end tobacco sales, marking a reversal of five years of continuous high growth, with market prices continuing to fall[8]. - The company faced significant impacts from weak market demand in its tobacco packaging materials supply business, leading to a decrease in overall performance[10]. - The overall economic environment in China showed resilience, with a GDP growth rate of 5.2% by the end of the fourth quarter, despite challenges in consumer confidence and uneven recovery[8]. - The company acknowledges the impact of declining local government fiscal revenues on its operations, particularly due to reduced land transfer fees[14]. Strategic Initiatives - The company plans to adopt cautious strategies to reduce losses, including in-depth market analysis and risk assessment of strategic decisions[15]. - The company aims to explore new growth opportunities while maintaining business continuity and competitiveness under challenging market conditions[15]. - The company plans to focus on strengthening relationships with existing customers in the cigarette packaging business, which remains its primary revenue source[43]. - The company aims to explore new wastewater treatment projects to expand its revenue sources, supported by a solid technical background[43]. - The company will continue to seek business opportunities and adhere to its operational strategy to create more value for shareholders[44]. Corporate Governance - The company appointed independent non-executive directors with extensive experience in finance and law, enhancing governance and oversight[50]. - The company emphasizes a corporate culture of integrity, harmony, and excellence, aiming to provide high-quality products and services[56]. - The board held only two regular meetings this year, focusing on annual and interim performance reviews, which may indicate a need for more frequent oversight[58]. - The management did not submit monthly performance reports to the board as required, relying instead on regular updates before board meetings[59]. - The company is committed to maintaining high standards of corporate governance to ensure competitiveness and healthy growth[57]. - The new financial director has over 18 years of experience in auditing, accounting, and corporate finance, which strengthens the financial management team[54]. - The company has a significant focus on risk control and strategic planning, with key personnel involved in these areas[52]. - The company has not disclosed quarterly performance, which may affect transparency and investor confidence[58]. - The independent non-executive directors play a crucial role in audit and remuneration committees, ensuring accountability and fair practices[50]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse range of business and professional expertise[63]. - The company aims to achieve and maintain at least 10% female representation in the board and senior management by December 31, 2024, with current gender ratio at approximately 70% male to 30% female[69]. - The nomination committee has established measurable targets for board diversity, considering factors such as gender, age, cultural background, and professional experience[70]. - The company has implemented a nomination policy to ensure qualified and competent board members, enhancing corporate strategy and shareholder value[71]. - Independent non-executive directors are required to meet independence standards as per listing rules, ensuring effective oversight and protection of shareholder interests[73]. - The company has arranged appropriate liability insurance for directors and senior management, with annual reviews of the coverage[65]. - The board is responsible for strategic decisions, performance monitoring, and ensuring compliance with applicable rules and regulations[64]. - The company encourages continuous professional development for all directors to enhance their knowledge and skills[80]. - The board retains the authority to select and approve candidates for board membership, with a third of directors required to retire and seek re-election at each annual general meeting[79]. - The audit committee's responsibilities include reviewing financial reports and monitoring the company's risk management and internal control systems[86]. - The company has established various committees, including the audit, remuneration, nomination, and corporate governance committees, to oversee specific matters[85]. - The attendance rate for the audit committee members was 100% for all meetings held[88]. - The company has adopted a standard code of conduct and confirmed compliance throughout the year[97]. - The audit committee was informed of the non-audit services provided by the auditor, which totaled HKD 1,834,000, including HKD 1,701,000 for audit services and HKD 133,000 for other services[99]. - The board confirmed its responsibility for maintaining effective risk management and internal control systems to protect shareholder interests and the group's assets[100]. - The company will distribute no less than 35% of the annual consolidated distributable profit as dividends, with the board retaining discretion over the declaration and payment[103]. - The company conducted a self-assessment to ensure compliance with risk and internal control policies, finding no significant irregularities[102]. - The board reviewed the effectiveness of the risk management and internal control systems and deemed them effective and sufficient[102]. - The company encourages shareholder participation in annual general meetings to facilitate dialogue with the board[108]. - The nomination committee has proposed the re-election of directors based on their contributions and skills, considering board diversity[92]. - The governance committee held one meeting this year to review compliance with governance policies and the company's ESG report[93]. - The company appointed a new company secretary following the retirement of the previous secretary[107]. - The company has established effective communication channels with shareholders, ensuring timely and equal access to information regarding overall performance[110]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of ESG initiatives, integrating environmental management and social responsibility into its operational practices[116]. - The report covers the management policies and strategies related to ESG for the fiscal year 2023, focusing on two wholly-owned subsidiaries that contribute significantly to revenue[120]. - The company has a stakeholder engagement strategy that includes regular communication with shareholders, customers, employees, suppliers, and regulatory bodies to ensure long-term development goals are met[121]. - The company is committed to maintaining a stable and sustainable growth trajectory, with a focus on effective financial management and operational cost control[122]. - The company adheres to environmental regulations and pollution control laws, demonstrating compliance and commitment to sustainability[126]. - In 2023, the total carbon dioxide emissions for Shantou Xinda and Hongdong Governance were 3,329.75 tons, a decrease of approximately 8.5% compared to 2022[136]. - Shantou Xinda's volatile organic compounds (VOCs) emissions were 11.4 micrograms per cubic meter in 2023, significantly below the Guangdong provincial standard limit of 120 micrograms per cubic meter[132]. - The nitrogen oxides emissions for Shantou Xinda and Hongdong Governance totaled 0.7461 tons in 2023, an increase from 0.5704 tons in 2022[138]. - Shantou Xinda's total energy consumption decreased by approximately 8.5% in 2023 due to reduced business volume and equipment efficiency upgrades[137]. - The sulfur oxides emissions for Shantou Xinda and Hongdong Governance totaled 0.1059 tons in 2023, slightly higher than 0.0788 tons in 2022[142]. - Shantou Xinda's benzene emissions were 0.52 micrograms per cubic meter in 2023, well below the limit of 1 microgram per cubic meter[132]. - The total carbon dioxide emissions from liquefied petroleum gas were 1.00 ton in 2023, down from 28.00 tons in 2022[136]. - Shantou Xinda has implemented a comprehensive waste management policy, ensuring that hazardous waste is properly stored and collected[130]. - The company has established an emergency response plan for environmental incidents, which has been reviewed by experts and filed with relevant government departments[131]. - Regular maintenance of equipment and vehicles is conducted to ensure compliance with emissions regulations[135]. - In 2023, Shantou Xinda's solid waste generation increased to 6.200 tons, up from 4.554 tons in 2022, primarily due to a rise in waste ink liquid from 2.500 tons to 4.200 tons[145]. - The target for greenhouse gas emissions is to reduce CO2, NOx, and SOx emissions by 1% in 2024 compared to 2023 levels[150]. - The total harmless waste generated in 2023 was 25.63 tons, a decrease from 27.53 tons in 2022, with a goal to reduce this by 0.5% in the following year[148][154]. - Shantou Xinda aims to control material consumption within budget limits to achieve a 1% reduction in emissions per unit of output[157]. - The company has implemented measures to reduce energy consumption, including shutting down machines during non-production hours and optimizing air conditioning usage[158]. - The consumption of liquefied petroleum gas significantly decreased due to the switch to natural gas in the cafeteria[164]. - The total amount of harmful waste produced by Shantou Xinda was 6.200 tons in 2023, with no harmful solid waste generated by Hongdong Governance[145][156]. - The company is promoting the use of electric vehicles and shared bicycles to reduce greenhouse gas emissions during project inspections[152]. - The total harmless waste from Shantou Xinda was 19.43 tons in 2023, compared to 21.03 tons in 2022[148]. - The company is committed to using energy-efficient equipment and promoting paperless operations to minimize resource consumption[162]. - Total water consumption for 2023 was 25,915 tons, a decrease from 29,874 tons in 2022, representing a reduction of approximately 13.5%[166]. - The company aims to reduce water consumption and improve water efficiency through rainwater collection for irrigation and other uses[170]. - Shantou Xinda employed 57.36 tons of recyclable packaging materials in 2023, down from 62 tons in the previous fiscal year, indicating a reduction of about 7.3%[173]. Employee Management and Welfare - As of December 31, 2023, the total number of full-time employees was 288, with total employee compensation amounting to HKD 37,990,000[45]. - The company emphasizes fair employment practices, ensuring equal opportunities for all employees regardless of gender or disability[184]. - Employee welfare programs include social insurance, birthday celebrations, and performance-based bonuses to enhance job satisfaction and retention[185]. - 弘东治理在2023年12月31日的全职员工人数为60名，较2022年减少6名，员工性别比例为男性81.67%和女性18.33%[187]. - 汕头信达在2023年共有8名员工离职，较2022年的17名减少了53%，员工流失率显著下降[188]. - 弘东治理在2023年共有11名员工离职，较2022年的29名减少了62%[188]. - 汕头信达和弘东治理在过去三年内均未发生因工死亡事件，因工死亡率为零[190]. - 本年度，汕头信达和弘东治理均未发生工伤，因工伤损失的工作日数为零[191]. - 两家公司均已通过职业健康安全管理体系认证(GB/T45001-2020/ISO45001:2018)[189]. - 公司设立了职业安全监视小组，负责监测和测量职业健康安全参数[194]. - 本年度，汕头信达和弘东治理为各级员工提供了一系列高质量的技能培训课程，确保管理和生产等方面的行业领先地位[195]. - 弘东治理的员工年龄分布中，26-35岁年龄组占50%[187]. - 汕头信达的员工中，≥56岁年龄组占12.50%[188]. - Shantou Xinda provided training for a total of 665 employee sessions in the fiscal year 2023, an increase from 596 sessions in the fiscal year 2022[196]. - The total training hours reached 76 in fiscal year 2023, significantly up from 30 hours in fiscal year 2022[196]. - The average training hours per employee category were 4.0 hours for senior management, 2.0 hours for middle management, and 2.14 hours for other employees in fiscal year 2023[197]. - The percentage of training participation was 0.45% for senior management, 33.23% for middle management, and 66.32% for other employees in fiscal year 2023[197]. - In fiscal year 2023, Shantou Xinda conducted various training programs, including safety production operation training and quality management training, with participation ranging from 1 to 68 employees per session[199]. - Hongdong Governance provided training for a total of 59 employee sessions in fiscal year 2023, slightly up from 56 sessions in fiscal year 2022[200].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 194,536,000, a decrease from HKD 194,536,000 in 2022[1] - The operating loss for the group was HKD 58,344,000, compared to a loss of HKD 53,107,000 in the previous year[1] - The net loss attributable to shareholders was HKD 41,184,000, improving from a loss of HKD 53,107,000 in 2022, resulting in a basic loss per share of HKD 5.87[10] - The group's total revenue for the year was approximately HKD 155,390,000, a decrease of about HKD 39,150,000 or 20.1% compared to HKD 194,540,000 in 2022[21] - Revenue decreased by 20.1% to HKD 155,390,000[72] - Gross profit decreased by 29.2% to HKD 33,300,000[72] - Operating loss decreased by 26.5% to HKD 42,860,000[72] - Loss attributable to owners of the company decreased by 22.5% to HKD 41,180,000[72] - Basic loss per share decreased by 22.5% to HKD 5.87[72] - The total comprehensive loss for the year amounted to HKD 46,059,000[74] Assets and Liabilities - The group's total assets as of December 31, 2023, amounted to HKD 488,498,000, down from HKD 577,266,000 in 2022[3] - The total liabilities of the group were HKD 173,297,000, a decrease from HKD 216,006,000 in the previous year[3] - As of December 31, 2023, the group's net asset value was HKD 315,200,000, down from HKD 361,260,000 in 2022; the operating cash surplus was HKD 174,660,000, compared to HKD 254,710,000 in 2022[40] - The total cash and restricted cash balance as of December 31, 2023, was approximately HKD 46,130,000, a decrease from HKD 91,230,000 in 2022[42] - The group had borrowings of approximately HKD 22,620,000, slightly up from HKD 22,390,000 in 2022, with an asset-to-liability ratio of 4.44%[44] - Total assets decreased from HKD 577,266,000 to HKD 488,498,000, a decline of approximately 15.4% year-over-year[79] - Total liabilities decreased from HKD 216,006,000 to HKD 173,297,000, a decline of about 19.7%[81] Revenue Breakdown - The group reported a significant decrease in revenue from cigarette packaging products, which was HKD 154,875,000 compared to HKD 167,582,000 in 2022[5] - Revenue from the cigarette packaging business was approximately HKD 154,880,000, down HKD 12,700,000 or 7.6% from HKD 167,580,000 in 2022[23] - Revenue from the environmental management business was approximately HKD 260,000, a significant decrease of HKD 26,380,000 or 99.0% compared to HKD 26,640,000 in 2022[24] - The environmental governance business reported a significant loss of HKD 28,175,000[93] Expenses - The overall gross profit for the year was approximately HKD 33,300,000, down from HKD 47,060,000 in 2022[25] - The overall gross profit margin decreased to 21.4% from 24.2% in 2022, primarily due to increased raw material prices and a decline in product prices[26] - Distribution costs for the year were approximately HKD 930,000, an increase of about 50% compared to approximately HKD 620,000 in 2022[28] - Administrative expenses for the year were approximately HKD 45,810,000, a decrease of 6.9% or about HKD 3,380,000 from HKD 49,190,000 in 2022[32] Corporate Governance and Future Plans - The company is committed to maintaining high standards of corporate governance to ensure competitiveness and healthy growth[57] - The company has adhered to the corporate governance code and will continue to review its governance practices regularly[59] - The company plans to invest more resources into new wastewater treatment projects to expand its revenue sources[54] - The company aims to strengthen relationships with existing customers and seek new customers to increase its market share in the cigarette packaging materials market[54] - The company will continue to explore opportunities in ecological restoration projects to enhance its market share[54] - The company anticipates intense competition in the cigarette packaging and environmental management sectors in 2024[52] Employment and Compensation - As of December 31, 2023, the company employed a total of 288 full-time employees, a decrease from 295 employees as of December 31, 2022[55] - Total employee compensation for the year amounted to HKD 37,990,000, down from HKD 43,160,000 in the previous year[55] Dividends - The group did not recommend any dividend for the year, consistent with the previous year[12] - The board does not recommend the payment of a final dividend for the year ending December 31, 2023[72] Miscellaneous - The company completed the sale of 48% equity in its subsidiary Shengshi Hengrui (Guangdong) Technology Co., Ltd. for a total consideration of RMB 3 million on November 17, 2023[51] - The annual general meeting is scheduled for June 26, 2024, with a suspension of share transfer registration from June 21 to June 26, 2024[56] - The company did not engage in any purchases, redemptions, or sales of its listed securities during the year[68] - Management did not submit monthly reports to the board as all directors were involved in daily operations and fully aware of the company's performance[67] - The company held two regular board meetings and three additional meetings for specific matters during the year[66]

Financial Performance - The company reported revenue of approximately HKD 70,740,000 for the six months ended June 30, 2023, a decrease of about HKD 7,470,000 or 10% compared to HKD 78,210,000 for the same period in 2022[5]. - The company incurred a loss of approximately HKD 8,440,000 during the reporting period, an increase of about HKD 680,000 or 9% from a loss of HKD 7,760,000 in the same period last year[5]. - Revenue for the six months ended June 30, 2023, was HKD 70,735,000, a decrease of 9.4% compared to HKD 78,213,000 for the same period in 2022[57]. - The group reported a loss before tax of HKD 9,089,000 for the six months ended June 30, 2023, compared to a loss of HKD 7,759,000 in the previous period[96]. - The total comprehensive loss for the six months ended June 30, 2023, was HKD 19,229,000, compared to HKD 27,252,000 for the same period in 2022, showing an improvement in overall loss performance[64]. Revenue Breakdown - Revenue from the cigarette packaging business was approximately HKD 70,810,000, an increase of HKD 1,550,000 or 2% compared to HKD 69,260,000 in the previous year[6]. - As of June 30, 2023, the group reported revenue of HKD 70,735 thousand, with the cigarette packaging business contributing HKD 70,806 thousand and the environmental governance business reporting a loss of HKD 121 thousand[92]. - For the six months ended June 30, 2023, the total revenue was HKD 70,806,000 for cigarette packaging and HKD 50,000 for agency services, totaling HKD 70,856,000, compared to HKD 69,928,000 in the same period of 2022[100]. Expenses and Losses - The overall gross profit for the reporting period was approximately HKD 17,920,000, an increase of HKD 4,080,000 or 29% from HKD 13,840,000 in the previous year, with a gross profit margin rising from 18% to 25%[7]. - Administrative expenses were approximately HKD 21,700,000, a decrease of about HKD 760,000 or 3% from HKD 22,460,000 in the same period last year[9]. - The group experienced an operating loss of HKD 8,400 thousand, with a net financing income of HKD 477 thousand, leading to a pre-tax loss of HKD 7,923 thousand[92]. - The company reported a net loss of HKD 8,073,000 for the six months ended June 30, 2023, compared to a net loss of HKD 7,342,000 for the same period in 2022, indicating an increase in losses of about 10%[64]. Cash Flow and Financial Position - The company had total cash and restricted cash of approximately HKD 68,120,000 as of June 30, 2023, a decrease from HKD 91,230,000 as of December 31, 2022[14]. - Cash flows from operating activities showed a net outflow of HKD 6,855,000 for the six months ended June 30, 2023, compared to a net inflow of HKD 31,649,000 in the previous year, representing a significant decline[65]. - The company's cash and cash equivalents decreased by HKD 16,262,000 during the first half of 2023, compared to an increase of HKD 22,180,000 in the same period of 2022[69]. - The total assets of the group as of June 30, 2023, amounted to HKD 504,455,000, a decrease from HKD 577,266,000 as of December 31, 2022[98]. Shareholder Information - The board did not recommend any interim dividend during the reporting period, consistent with the previous year[31]. - As of June 30, 2023, Mr. Zheng Yisheng holds 450,000,000 shares, representing 64.15% of the company's total issued shares[36]. - The total number of issued ordinary shares of the company is 701,430,000[40]. - The new share option plan allows for the issuance of up to 70,143,000 shares, which is 10% of the total issued shares as of June 16, 2023[42]. Governance and Compliance - The company has adopted and applied the corporate governance code as per the listing rules to enhance shareholder value[46]. - The audit committee reviewed the interim report and confirmed compliance with applicable accounting standards and legal requirements[54]. - The company maintained compliance with corporate governance codes, although there were deviations regarding the roles of the chairman and CEO[48]. Capital Expenditure and Commitments - Total capital expenditure during the review period was approximately HKD 7,990,000, significantly lower than HKD 46,030,000 for the same period in 2022[25]. - As of June 30, 2023, the group had capital commitments of approximately HKD 5,440,000, an increase from HKD 4,420,000 as of December 31, 2022[26]. Risk Management - The group’s financial risk management focuses on minimizing the impact of potential adverse factors on financial performance, with no changes to risk management policies since the end of the reporting period[81]. - The group’s cash and cash equivalents, restricted cash, and trade receivables are primarily held in reputable financial institutions in China and Hong Kong, with no significant credit risk identified[83].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對 因本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 失承擔任何責任。 HUAXI HOLDINGS COMPANY LIMITED 華禧控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：01689） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 千港元 千港元 變動 收入 70,735 78,213 (9.56%) 本公司擁有人應佔虧損 (8,073) (7,342) 9.96% 每股基本虧損 (1.15)港仙 (1.05)港仙 9.52% ...

Financial Performance - The group's total revenue for the fiscal year ended December 31, 2022, was approximately HKD 194.54 million, a decrease of about 52% from HKD 404.56 million in the previous fiscal year[14]. - The tobacco packaging business generated revenue of approximately HKD 167.58 million, down from HKD 183.93 million, while the environmental governance business revenue fell to HKD 26.64 million from HKD 215.33 million, representing 86% and 14% of total revenue respectively[14]. - The company reported a loss attributable to shareholders of approximately HKD 53.11 million, which is an increase of 244% compared to the previous fiscal period[7]. - The overall gross profit was approximately HKD 47,060,000, down from HKD 115,700,000 in the previous fiscal year, with a gross margin of 24%, a decline of 5% from 29%[18]. - The gross profit from the cigarette packaging business was approximately HKD 58,430,000, with a gross margin of 35%, down from 40% in the previous fiscal year[18]. - The net loss attributable to the owners of the company was approximately HKD 53,110,000, a decrease of HKD 90,110,000 or 244% compared to a net profit of HKD 37,000,000 in the previous fiscal year[26]. - The total cash and cash equivalents at the end of the reporting period were approximately HKD 91,230,000, down from HKD 115,140,000 in the previous fiscal year[31]. - The net cash generated from operating activities was HKD 54,891,000, an increase from HKD 38,836,000 in the previous fiscal year[32]. - The distribution costs were approximately HKD 620,000, a decrease of about 13% from HKD 710,000 in the previous fiscal year[19]. - The company did not recommend any final dividend for the fiscal year ending December 31, 2022[27]. Business Strategy and Operations - The company plans to continue diversifying its business while consolidating its tobacco packaging materials operations and actively seeking opportunities in the ecological restoration sector[10]. - The company is responding to the challenges posed by the COVID-19 pandemic and geopolitical factors by implementing various measures to mitigate negative impacts on its business[6]. - The company aims to enhance management standards and operational efficiency in response to national investments in ecological restoration[6]. - The company acknowledges the ongoing economic recovery in China following the relaxation of COVID-19 measures, which is expected to boost global economic growth[6]. - The company is committed to exploring suitable investment opportunities to achieve revenue diversification and promote business development[10]. - The cigarette packaging business remains the primary revenue source for the group, with ongoing efforts to strengthen relationships with existing clients and seek new customers[39]. - The group plans to invest more resources into new wastewater treatment projects to expand revenue sources, supported by a solid technical background[39]. - The group anticipates growth in 2023 due to the easing of pandemic restrictions by the Chinese government, despite intense competition in the cigarette packaging and environmental governance sectors[39]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to ensure competitiveness and healthy growth, adhering to the corporate governance code as per the Hong Kong Stock Exchange[55]. - The board consists of two executive directors, Zheng Yisheng and Zheng Mingsheng, one non-executive director, Hao Jiming, and three independent non-executive directors, including Liu Guoxiong, Huo Baotian, and Cai Xiaowen[56]. - The company has adopted the corporate governance code principles to align with the best interests of stakeholders[55]. - The board has complied with the relevant listing rules throughout the reporting period, ensuring regulatory adherence[56]. - The company has implemented a board diversity policy, considering factors such as gender, age, cultural background, and professional experience to enhance board composition[62]. - The board held five regular meetings and one annual general meeting during the year ending December 31, 2022[71]. - The attendance rate for the board members at the annual general meeting was 100%[72]. - The Audit Committee held two meetings to review the financial statements for the year ending December 31, 2021, and the interim results for the six months ending June 30, 2022[75]. - The Audit Committee consists of independent non-executive directors with relevant qualifications and experience[75]. - The Remuneration Committee convened once during the year to review the remuneration of directors and senior management[77]. - The company ensures that all directors participate in continuous professional development to update their knowledge and skills[70]. - The board has established various committees, including the Audit Committee and Remuneration Committee, to oversee specific matters[73]. - The company has received annual independence confirmation letters from all independent non-executive directors, affirming their independence[66]. - The company has a structured approach to appointing and re-electing directors, ensuring no director has a term exceeding three years without re-election[67]. - The company held one meeting of the Nomination Committee during the year ended December 31, 2022, to review the board's structure, size, composition, and diversity[80]. - The board is responsible for maintaining the risk management and internal control systems, ensuring effective monitoring of the company's operations[89]. - The company conducted an annual self-assessment to confirm compliance with risk and internal control policies, with no significant irregularities reported for the year ended December 31, 2022[90]. - The company’s governance structure includes a clear distinction between the roles of the Chairman and the CEO, although both roles are held by the same individual[83]. - The company’s board reviewed its internal control system's effectiveness and deemed it effective and adequate for the year ended December 31, 2022[90]. Environmental, Social, and Governance (ESG) Initiatives - The company’s ESG initiatives are overseen by the board and an ESG management team, focusing on sustainable development and compliance with environmental regulations[101]. - The board is responsible for formulating and disclosing key performance indicators related to ESG management, ensuring data accuracy and reliability[105]. - The company engages with stakeholders, including shareholders and customers, to align long-term development goals and maintain effective communication channels[107]. - The company has implemented strict wastewater management policies, ensuring that domestic wastewater is treated and complies with regulatory standards[114]. - The company reported that no industrial wastewater was generated during production, with domestic wastewater being the primary concern[114]. - The company has established a noise control policy, ensuring that noise emissions do not disturb surrounding residents[116]. - The company has implemented various energy-saving measures, including using LED lighting and adjusting air conditioning settings to reduce energy consumption[141]. - The company has adopted measures to promote tree planting and carpooling among employees to reduce emissions[127]. - The company encourages the use of shared bicycles and electric vehicles to minimize emissions from traditional vehicles[128]. - The group actively promotes green environmental activities among suppliers and conducts regular inspections[182]. - The group has established a system for monitoring and managing intellectual property rights, enhancing innovation awareness among employees[185]. Employee and Workplace Safety - The total employee compensation for the reporting period was HKD 43,160,000, compared to HKD 42,380,000 in the previous fiscal year, reflecting competitive remuneration practices[42]. - The company has implemented a comprehensive occupational health and safety management system to enhance workplace safety and employee well-being[159]. - The company has achieved zero employee fatalities due to work-related incidents over the past three years, maintaining a fatality rate of 0%[162]. - In the past year, the company reported no work-related injuries, indicating a strong safety record[163]. - A total of 596 training sessions were provided to employees, accumulating 30 hours of training time[168]. - The company has implemented strict compliance with occupational health and safety management systems, achieving certification under GB/T 45001–2020/ISO 45001:2018[161]. - The company adheres to labor laws and regulations to protect employee rights, preventing child labor and forced labor[173]. - The group strictly adheres to the laws and regulations regarding child labor and forced labor, with no significant violations reported during the reporting period[174]. - Regular safety training sessions are conducted quarterly to enhance employees' awareness of occupational health and safety[159]. Community Engagement and Anti-Corruption - The group actively participated in community activities and invested approximately 600,000 in ecological projects, contributing to environmental sustainability[192]. - The group has implemented anti-corruption policies and established reporting channels for employees to report misconduct[191]. - The group has not experienced any legal cases related to corruption during the reporting period[189]. - The group has set a target of achieving zero corruption complaints and zero corruption lawsuits for the year[189]. - The group has established guidelines for acceptable and unacceptable behaviors regarding gifts and interactions with government officials[190].