Financial Performance - Total comprehensive income for the year amounted to RMB 12,788,000, compared to RMB 43,207,000 in the previous year, indicating a significant decrease [5]. - Basic earnings per share were RMB 0.08, down from RMB 0.15 in the previous year, reflecting a decline in profitability [6]. - Total revenue for 2022 was RMB 2,178,409,000, a decrease of 9.2% compared to RMB 2,400,426,000 in 2021 [24]. - Gross profit for 2022 was RMB 338,141,000, down 7.8% from RMB 366,725,000 in 2021 [24]. - Net profit for the year was RMB 22,821,000, representing a significant decline of 47.7% from RMB 43,629,000 in 2021 [24]. - Basic earnings per share for 2022 were RMB 0.08, down from RMB 0.15 in 2021, reflecting a 47.7% decrease [24]. - The company recorded a net profit of approximately RMB 22.8 million, a decrease of about 47.7% from RMB 43.6 million in 2021, resulting in a net profit margin decline from 1.8% to 1.0% [125]. - The profit attributable to equity holders of the company was RMB 22.8 million, a decrease of approximately 47.7% or about RMB 20.8 million compared to RMB 43.6 million in 2021 [144]. Assets and Liabilities - Property, plant, and equipment increased to RMB 794,579,000 from RMB 695,730,000, showing a growth of approximately 14.2% [8]. - Current assets decreased to RMB 866,744,000 from RMB 920,520,000, a decline of about 5.8% [8]. - Total liabilities increased slightly to RMB 794,957,000 from RMB 782,634,000, indicating a rise of approximately 1.6% [8]. - The net asset value decreased to RMB 602,546,000 from RMB 630,395,000, reflecting a reduction of about 4.4% [8]. - The company reported a decrease in inventory to RMB 111,483,000 from RMB 164,781,000, a decline of approximately 32.3% [8]. - Accounts receivable decreased to RMB 635,642,000 from RMB 683,690,000, indicating a reduction of about 7.0% [8]. - The total lease liabilities as of December 31, 2022, amounted to RMB 315,166,000, an increase from RMB 238,091,000 in 2021 [84]. - The group’s total liabilities included RMB 348,340,000 in secured bank loans as of December 31, 2022, compared to RMB 330,000,000 in 2021 [104]. Revenue Sources - The group generated over 90% of its operating revenue and operating profit from manufacturing and selling packaging materials in China [58]. - The group's revenue from the food and beverage sector in 2022 was RMB 601,865 thousand, a decrease from RMB 625,381 thousand in 2021, representing a decline of approximately 3.3% [64]. - Revenue from the paper and packaging sector in 2022 was RMB 297,027 thousand, down from RMB 350,759 thousand in 2021, indicating a decrease of about 15.4% [64]. - The group's operating revenue from the sale of corrugated paper packaging products for the year was approximately RMB 1,970.0 million, a decrease of about 9.3% compared to RMB 2,171.4 million in 2021, accounting for approximately 90.4% of the total operating revenue for the year [91]. Expenses and Costs - The cost of goods sold for 2022 was RMB 1,840,268,000, compared to RMB 2,033,701,000 in 2021 [42]. - The company reported a decrease in sales and distribution expenses to RMB 120,824,000 from RMB 124,507,000 in 2021 [27]. - Administrative expenses slightly decreased to RMB 156,524,000 from RMB 159,293,000 in 2021 [27]. - The total sales cost for the year was approximately RMB 1,840.3 million, a decrease of about 9.5% from RMB 2,033.7 million in 2021, primarily due to reduced sales volume [118]. Cash Flow and Investments - The net cash generated from operating activities was approximately RMB 238.0 million, an increase of about RMB 189.0 million or approximately 385.6% compared to RMB 49.0 million in 2021 [128]. - The net cash used in investing activities was approximately RMB 70.3 million, compared to RMB 91.5 million in 2021, primarily due to equipment purchases for existing and new plants [146]. - The net cash used in financing activities was approximately RMB 128.4 million, compared to a net cash inflow of about RMB 8.9 million in 2021, mainly due to repayments of sale and leaseback arrangements, dividend payments, and interest payments [147]. - The company had cash and cash equivalents of approximately RMB 98.8 million as of December 31, 2022, compared to RMB 58.8 million at the beginning of the year [126]. Future Outlook and Strategy - The company plans to maintain a final dividend of HKD 0.08 per share, consistent with the previous year [24]. - The company plans to expand its business in Central China and focus on improving the utilization rate of its production facilities, anticipating stronger demand in 2023 [150]. - The company established a new production facility in Chuzhou, Anhui Province, which commenced operations in August 2022, to improve overall performance [115]. Risks and Challenges - The company faced significant challenges in revenue and profit due to adverse economic conditions and supply chain disruptions in various industries [137]. - The overall economic downturn and repeated COVID-19 outbreaks in mainland China have negatively impacted consumer activity and trade orders across multiple sectors [136]. - The company has identified several risks and uncertainties that may affect its business operations, including rising prices of key raw materials and uncertainties in obtaining external financing [163]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value [165]. - The audit committee, consisting of four directors, has reviewed the audited annual performance of the group for the year [166]. - The company has adopted the standards for securities trading as outlined in the Listing Rules, confirming compliance by all directors for the year [167]. - There were no purchases, sales, or redemptions of any listed securities by the company or its subsidiaries during the year [168].

Financial Performance - For the six months ended June 30, 2022, the company recorded revenue of approximately RMB 1,062.5 million, a decrease of about 4.9% compared to RMB 1,116.7 million in the same period last year[12]. - The net profit attributable to the company's owners for the same period was approximately RMB 8.9 million, down approximately 61.9% from RMB 23.3 million in the previous year[12]. - The gross profit margin for the period was approximately 15.1%, a decrease of about 0.8% from 15.9% in the same period last year[14]. - Profit decreased by approximately 61.9% from RMB 23.3 million to RMB 8.9 million, resulting in a net profit margin decline from 2.1% to 0.8%[23]. - Earnings per share decreased to RMB 0.03 from RMB 0.08, representing a decline of 62.5%[47]. - The group reported a profit before tax decreased to RMB 8,881,000, down 61.9% from RMB 23,295,000 in the same period of 2021[72]. Revenue Breakdown - Sales revenue from corrugated paper packaging products was approximately RMB 959.0 million, a decrease of about 5.3% compared to RMB 1,012.7 million in the same period last year, accounting for approximately 90.3% of total revenue[15]. - Sales revenue from corrugated board was approximately RMB 103.5 million, a slight decrease of about 0.4% from RMB 104.0 million in the same period last year, accounting for approximately 9.7% of total revenue[16]. - Revenue from the food and beverage sector was RMB 270,379 thousand, slightly decreasing by 1.7% from RMB 273,850 thousand in the same period of 2021[60]. - Revenue from non-food and beverage consumables was RMB 159,737 thousand, showing a marginal increase of 1% from RMB 158,156 thousand in the same period of 2021[60]. - The group reported a revenue of RMB 1,088,000 for the sale of other materials and consumables, an increase of 112.5% compared to RMB 513,000 in the same period of 2021[66]. Expenses and Costs - The company's selling and distribution expenses decreased by approximately 5.1% to about RMB 56.3 million from RMB 59.4 million in the same period last year, mainly due to a decrease in freight costs[19]. - Administrative expenses increased by approximately 3.6% to about RMB 80.3 million from RMB 77.5 million in the same period last year, primarily due to the commissioning of the Foshan factory[20]. - Financing costs increased by approximately 7.6% from RMB 12.9 million to RMB 13.9 million due to increased borrowings and the rise in the value of the right-of-use assets for the Foshan factory[21]. - The cost of goods sold was RMB 901,629,000, a decrease of 3.9% from RMB 938,598,000 in the previous year[68]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were approximately RMB 118.4 million, up from RMB 52.7 million in the previous period[25]. - Net cash inflow from operating activities increased significantly to approximately RMB 161.0 million from RMB 7.1 million, primarily due to the recovery of receivables and a decrease in inventory[26]. - Cash used in investing activities was approximately RMB 44.3 million, a decrease of RMB 29.5 million compared to RMB 73.8 million in the previous period[27]. - Cash used in financing activities was approximately RMB 57.2 million, a decrease of approximately RMB 80.4 million compared to a net cash inflow of RMB 23.2 million in the previous period[27]. - Operating cash flow for the six months ended June 30, 2022, was RMB 160,980 thousand, a significant increase from RMB 7,086 thousand in the same period of 2021, representing a growth of approximately 2,227%[53]. Dividends and Shareholder Returns - The board has decided not to declare any interim dividend for the period, but announced a special dividend of HKD 0.08 per share to be paid on or around December 15, 2022[12]. - The company declared dividends of RMB 19,555 thousand during the period, compared to RMB 40,612 thousand in the same period last year[50]. - The company approved a final dividend of RMB 19,555,000 for the fiscal year 2021, down from RMB 40,612,000 in the previous year, reflecting a decrease of about 52.1%[91]. Corporate Governance - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[40]. - The audit committee has reviewed the group's accounting principles and confirmed the unaudited financial performance for the period[43]. - The independent auditor has conducted a review of the interim financial statements in accordance with the relevant standards[44]. - No significant deviations from the corporate governance code have been reported during the period[40]. - The company will continue to review and enhance its corporate governance practices[40]. Market Outlook and Strategy - The company plans to maintain a cautious optimism regarding market recovery and performance in the second half of 2022, considering the traditional peak season and potential easing of COVID-19 impacts[14]. - The company plans to continue focusing on the development of new products and technologies to enhance market competitiveness[54]. - The company remains committed to expanding its market presence, particularly in the food and beverage packaging sector, which continues to show stable demand[60]. - The company has not disclosed any significant mergers or acquisitions during the reporting period, indicating a focus on organic growth strategies[54]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 1,652,913 thousand, compared to RMB 1,642,345 thousand as of December 31, 2021, indicating a slight increase of 0.4%[48]. - Current liabilities totaled RMB 803,449 thousand, an increase from RMB 782,634 thousand at the end of 2021, reflecting a rise of 2.5%[48]. - The total liabilities of the company as of June 30, 2022, were RMB 996,998,000, compared to RMB 987,178,000 as of December 31, 2021, indicating a rise of approximately 0.83%[93]. - The company reported a decrease in accounts receivable from RMB 659,563,000 in 2021 to RMB 586,603,000 in 2022, a decline of approximately 11.06%[92]. - The group’s total receivables decreased to RMB 604,261,000 from RMB 683,690,000, reflecting a reduction of 11.6%[74].

Financial Performance - The company's revenue increased by approximately 17.6% compared to the previous fiscal year, driven by rising domestic demand in the food and beverage sector[8]. - The net profit for the year decreased by about 44.4% compared to the fiscal year ending in 2020, primarily due to rising costs[8]. - The company's revenue for the year was approximately RMB 2,400.4 million, an increase of about RMB 358.8 million or approximately 17.6% compared to RMB 2,041.6 million in 2020[15]. - The gross profit margin decreased to approximately 15.3%, down about 3.3% from approximately 18.6% in 2020, with gross profit amounting to RMB 366.7 million, a decrease of about 3.7% from RMB 380.7 million in 2020[15][21]. - The company's net profit attributable to equity holders was RMB 43.6 million, a decrease of approximately 44.4% from RMB 78.4 million in 2020, with a net profit margin dropping from 3.8% in 2020 to 1.8% in 2021[28][29]. - Basic earnings per share for 2021 was RMB 0.15, compared to RMB 0.26 in 2020, reflecting a decline of 42.3%[172]. - The company reported a total comprehensive income of RMB 43,207 thousand for the year, down from RMB 76,943 thousand in 2020[172]. - The operating profit before tax for 2021 was RMB 62,330,000, a decrease of 45% compared to RMB 113,219,000 in 2020[186]. Production and Investment - A new production facility has been established in Shandong Province, while the Qingdao facility has been repurposed as a training and maintenance center[8]. - The company plans to invest in new machinery and equipment to automate and streamline production processes[9]. - The company established a new factory in Shandong and repurposed the Qingdao factory into a training and maintenance center, indicating ongoing investment in production capacity[15]. - The net cash used in investing activities for the year was approximately RMB 91.5 million, an increase from RMB 49.9 million in 2020, primarily due to equipment purchases for existing and new factories[33]. Market Demand and Strategy - The company anticipates continued growth in product demand due to the increasing number of online shoppers[10]. - The overall economic recovery in mainland China has positively impacted sales in various industries, including food and beverage[13]. - The company aims to consolidate its market position through prudent business development measures[10]. - The demand for paper packaging is expected to increase due to the implementation of plastic bans and the push for carbon neutrality[13]. - The company anticipates continued growth in demand for its products driven by changes in consumer lifestyles and will focus on essential goods like food and beverages[37]. - The company plans to strengthen its factory network to enhance regional coverage and market penetration in the corrugated packaging industry in mainland China[37]. Cost and Financial Management - The company faces ongoing cost pressures from raw material supply constraints and rising energy costs, affecting profit margins[13]. - The company's selling costs increased by approximately 22.4% to RMB 2,033.7 million from RMB 1,660.9 million in 2020, primarily due to increased sales volume, rising labor costs, and higher raw paper prices[20]. - Administrative expenses increased by approximately 17.6% to RMB 159.3 million from RMB 135.4 million in 2020, mainly due to rising labor costs and contributions from new production facilities[23]. - The net cash generated from operating activities was approximately RMB 49.0 million, a decrease of about 56.3% from RMB 112.1 million in 2020, mainly due to reduced profits and changes in receivables and payables[32]. Corporate Governance - The company has established various committees, including a nomination committee and an environmental committee, to oversee governance and sustainability efforts[48]. - The company emphasizes internal controls and financial statement analysis as part of its governance practices[49]. - The board consists of four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Environmental Committee, to oversee various aspects of the company[118]. - The company has appointed three independent non-executive directors, exceeding one-third of the board's total number, ensuring adequate checks and balances[125]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[116]. Shareholder Information - The company proposed a final dividend of HKD 0.08 per share for the year, down from HKD 0.16 in the previous year[57]. - The group had distributable reserves of approximately RMB 409.2 million as of December 31, 2021[68]. - Major shareholder PMHC holds 189,488,200 shares, representing 63.02% ownership[88]. - Major shareholder Jinfu Investment Limited holds 192,424,200 shares, representing 64.00% ownership[88]. - The company has no significant transactions or contracts involving directors or controlling shareholders that could create a conflict of interest[75]. Risk Management - The group has identified several risks affecting its operations, including rising raw material prices and uncertainties in obtaining external financing[39]. - The company has adopted a set of internal control and risk management systems to address various operational, financial, legal, and market risks[145]. - The board has reviewed and confirmed the effectiveness of the risk management and internal control systems for the year[145]. Auditor and Compliance - The independent auditor has issued an unqualified opinion on the company's related party transactions, confirming compliance with the relevant listing rules[104]. - The external auditor, Hong Kong Lixin Dehao CPA Limited, received approximately RMB 1,053,000 for annual audit services and RMB 167,000 for non-audit services during the year[147]. - The company confirmed compliance with the standards set out in the Listing Rules Appendix 10 regarding securities trading by directors[142].

PACIFIC MILLENNIUM PACKAGING GROUP CORPORATION 國際濟豐包裝集團 Interim Report (Incorporated in the Cayman Islands with limited liability) 2021 Stock code : 1820 INTERIM REPORT 中期報告 2021 PACIFIC MILLENNIUM PACKAGING GROUP CORPORATION （於開曼群島註冊成立的有限公司） 2021 股份代號：1820 中期報告 PACIFIC MILLENNIUM PACKAGING GROUP CORPORATION 目 향 | --- | --- | |-------------------------------------------|-------| | | | | 公司资料 | 2 | | 財 務 摘 要 | 4 | | 管理 層 討 論 及 分 析 | 5 | | 企 業 管 治 和 其 他 資 料 | 15 | | 簡 明 綜 合 中 期 財 務 報 表 審 閱 報 告 | 17 | | 簡明 綜 合 ...

Aillennium PACIFIC MILLENNIUM PACKAGING GROUP CORPORATION 國際濟豐包裝集團 （於開曼群島註冊成立的有限公司） 股份代號：1820 C In 年 報 2020 | --- | --- | --- | --- | --- | |-------|-------|-------|--------------|----------------------| | | | 目 錄 | | | | | | 02 | 公司資料 | | | | | | | | | | | 03 05 | 主席報告 | 管理層討論及分析 | | | | 10 | | 董事及高级管理層履歷 | | | | 13 | 董事會報告 | | | | | 26 | 企業管治報告 | | | | | 34 | | 獨立核數師報告 | | | | 38 | | 綜合全面收益表 | | | | 39 | | 綜合財務狀況表 | | | | 41 | | 綜合權益變動表 | | | | 43 | | 綜合現金流量表 | | | | 45 | | 綜合財務報表附註 | | | | 100 | | 五年財務概要 ...

Financial Performance - The company recorded revenue of approximately RMB 882.8 million for the six months ended June 30, 2020, a decrease of about 10.1% compared to RMB 982.1 million in the same period of 2019[10] - Net profit attributable to the company's owners was approximately RMB 29.5 million, an increase of about 21.4% from RMB 24.3 million in the same period of 2019[10] - The gross profit margin improved to approximately 19.1%, up from about 18.0% in the same period of 2019[14] - Sales revenue from corrugated paper packaging products was approximately RMB 804.0 million, a decrease of about 10.0% compared to RMB 893.2 million in the same period of 2019, accounting for about 91.1% of total revenue[18] - Sales revenue from corrugated paperboard was approximately RMB 78.8 million, down about 11.4% from RMB 88.9 million in the same period of 2019, representing about 8.9% of total revenue[19] - The group's gross profit for the period was approximately RMB 168.4 million, a decrease of about 4.7% compared to RMB 176.7 million for the six months ended June 30, 2019[22] - Profit for the period increased by approximately 21.4% to about RMB 29.5 million from RMB 24.3 million for the six months ended June 30, 2019, with a net profit margin rising from 2.5% to 3.3%[28] - The company’s revenue for the six months ended June 30, 2020, was RMB 882,843,000, a decrease of 10.1% compared to RMB 982,074,000 in the same period of 2019[67] - Gross profit for the same period was RMB 168,410,000, down from RMB 176,694,000, reflecting a gross margin of approximately 19.1%[67] - Profit before tax increased to RMB 45,146,000, up 28.3% from RMB 35,209,000 in the previous year[67] - Net profit for the period was RMB 29,450,000, compared to RMB 24,317,000 in 2019, representing a growth of 21.5%[67] Cost Management - The company's cost of sales was approximately RMB 714.4 million, a decrease of about 11.3% from RMB 805.4 million in the same period of 2019[20] - Selling and distribution expenses decreased by approximately 8.5% to about RMB 48.3 million from RMB 52.8 million for the six months ended June 30, 2019, mainly due to reduced distribution costs and employee costs[23] - Administrative expenses were approximately RMB 63.8 million, a decrease of about 10.0% from RMB 70.9 million for the six months ended June 30, 2019, attributed to reduced travel expenses and employee costs[24] - Financing costs decreased by approximately 12.8% to about RMB 15.6 million from RMB 17.9 million for the six months ended June 30, 2019, due to a reduction in average bank borrowings and interest rates[26] Cash Flow and Investments - Cash and cash equivalents at the end of the period were approximately RMB 231.5 million, compared to RMB 210.0 million at the end of the previous period[32] - Net cash inflow from operating activities was approximately RMB 104.3 million, an increase of about 28.0% from RMB 81.5 million for the six months ended June 30, 2019, mainly due to increased profit and reduced inventory[33] - The net cash used in investing activities was approximately RMB 32.1 million, primarily due to the establishment of a factory in Shandong[35] - The net cash used in financing activities was approximately RMB 119.0 million, a decrease of about 60.5% from RMB 300.6 million for the six months ended June 30, 2019, mainly due to loan repayments and dividend distributions[36] Corporate Governance - The company maintained a strong focus on corporate governance, ensuring compliance with the relevant standards since its listing in December 2018[57] - The board believes that the current management structure is effective and has implemented sufficient checks and balances[57] - The company plans to continue reviewing and enhancing its corporate governance practices to align with best practices[57] Future Plans and Developments - The company plans to establish new factories in Shandong and Foshan to strengthen its market position in the corrugated paper packaging industry[13] - The construction of the Shandong factory is expected to be completed by September 2020, while the Foshan factory is anticipated to commence construction in October 2020[13] - The remaining unutilized proceeds of HKD 154.9 million will primarily be used for expanding factory operations, specifically for establishing new factories in Shandong and Foshan[41] - The company expects to save approximately HKD 55 million due to a reduction in the planned scale of the new factories[41] Shareholder Information - Major shareholders include International Jifeng Group Holdings, holding 63.05% of the shares[48] - The company’s directors and key executives hold a total of 25,660,800 shares, representing 8.54% of the total shares[45] - The board has resolved not to declare any interim dividends for the period[44] - A special dividend of HKD 0.15 per share is expected to be paid on or around December 31, 2020[44] Impact of COVID-19 - The group experienced significant disruptions in production and supply chain due to the COVID-19 pandemic, affecting operations since January 30, 2020[88] - The group received rent concessions totaling RMB 628,000 due to factory closures mandated by government policies during the COVID-19 pandemic[90] - Government subsidies amounting to RMB 267,000 were recognized in profit or loss to support the group's operations during the pandemic[91] - The group anticipates that the effects of COVID-19 will require ongoing assessments and estimates related to government assistance and rent concessions[98]

Financial Performance - The company reported a revenue of approximately RMB 2,073.9 million for the year ended December 31, 2019, representing a slight increase of about RMB 54.5 million or approximately 2.7% compared to the previous year[6]. - The gross profit for the same period was RMB 395.8 million, an increase of approximately 4.7% from RMB 378.1 million in the previous year, with a gross margin of approximately 19.1%, up from 18.7%[6]. - Basic earnings per share decreased by 37.5% to RMB 0.25 compared to RMB 0.40 in 2018[6]. - The net profit attributable to equity holders was RMB 76.2 million, a decrease of approximately 15.6% from RMB 90.3 million in the previous year[23]. - The total comprehensive income for the year was RMB 74,222 thousand, compared to RMB 85,875 thousand in 2018, reflecting a decrease of 12.7%[176]. - The company reported a net profit of RMB 90,272 thousand for the year, compared to a profit of RMB 76,184 thousand in the previous year, indicating an increase of approximately 18.5%[181]. - The company's profit before tax decreased to RMB 109,255 thousand in 2019 from RMB 127,956 thousand in 2018, representing a decline of approximately 14.3%[188]. Market Challenges and Strategies - The company faced significant challenges in 2019, including a downturn in the global economy and the impact of the US-China trade war, leading to increased competition in the corrugated paper packaging industry[5]. - The board anticipates that the company's performance in 2020 will be inevitably affected by the COVID-19 pandemic, but expects sufficient demand for its products due to the rapid development of e-commerce and growth in domestic consumption[7]. - The company has maintained a competitive advantage despite industry challenges, as many smaller, non-compliant enterprises have been forced to close or exit the market[5]. - The management team is committed to monitoring market conditions closely and adjusting strategies as necessary to navigate the current unfavorable environment[7]. Expansion Plans - The company aims to expand its market presence in China through the establishment of new factories, focusing on increasing regional coverage and market penetration[7]. - The company is in the process of constructing a new factory in Shandong, expected to be completed in Q3 2020, while the site selection for a factory in Foshan is anticipated to be confirmed in Q2 2020[5]. - The company plans to continue expanding its factory footprint in China to enhance regional coverage and market penetration[1]. - The company plans to establish a factory in Shandong, with construction expected to be completed by Q3 2020[59]. - The company is in the process of selecting a site for a second factory in Foshan, with plans to start construction in Q3 2020 and production in Q2 2021[60]. Financial Position and Cash Flow - The company's capital debt ratio increased from 0.75 in 2018 to 0.91 in 2019, primarily due to the adoption of IFRS 16 during the reporting period[31]. - The net cash inflow from operating activities for the year ended December 31, 2019, was approximately RMB 135.9 million, a decrease of about RMB 17.9 million or 11.6% compared to RMB 153.8 million for the year ended December 31, 2018[27]. - The total cash and cash equivalents at the end of 2019 were RMB 277.2 million, down from RMB 347.9 million at the end of 2018[26]. - The company reported a net cash inflow from investing activities of RMB 76,701 thousand in 2019, compared to a cash outflow of RMB 181,711 thousand in 2018, marking a significant turnaround[189]. - The company’s financing activities resulted in a net cash outflow of RMB 283,298 thousand in 2019, compared to a net cash inflow of RMB 290,565 thousand in 2018, reflecting a substantial change in financing strategy[189]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[103]. - The board consists of one executive director, two non-executive directors, and three independent non-executive directors[107]. - The audit committee has reviewed the audited annual performance of the group during the reporting period[102]. - The company has complied with all applicable code provisions of the corporate governance code during the reporting period, except for the separation of the roles of chairman and CEO[107]. - The independent non-executive directors have reviewed the related party transactions and confirmed they were conducted in the normal course of business and on normal commercial terms[98]. Related Party Transactions - The maximum outstanding balance for related party transactions during the reporting period was RMB 190.0 million, including VAT[96]. - The annual interest and handling fees paid to Chongqing Tanshi amounted to RMB 13.7 million, including VAT[97]. - The company has established a framework agreement for leasing machinery and equipment with Chongqing Tanshi, which is expected to continue post-listing[95]. - The company confirmed that independent non-executive directors reviewed compliance with the non-competition agreement and found no violations[94]. Risks and Mitigation - The company identified several risks, including rising raw material prices and potential disruptions from COVID-19, and is taking measures to mitigate these risks[10]. - The company has implemented a risk management and internal control system to address various operational, financial, legal, and market risks[150]. - The internal audit department plays a key role in monitoring the company's governance and conducts comprehensive audits of all subsidiaries[151].

Financial Performance - For the six months ended June 30, 2019, the company's revenue was approximately RMB 982.1 million, an increase of about 8.4% compared to RMB 906.0 million for the same period in 2018[12]. - The net profit for the same period was approximately RMB 24.3 million, a decrease of about 43.6% compared to RMB 43.1 million in 2018[12]. - The gross profit margin decreased to approximately 18.0%, down from 19.5% in the same period of 2018, reflecting a decline of about 1.5 percentage points[15]. - The gross profit for the period was approximately RMB 176.7 million, a slight increase of about 0.1% from RMB 176.6 million in 2018[19]. - Profit before tax decreased to RMB 35,209,000 from RMB 61,550,000 in the previous year, representing a decline of 42.8%[41]. - Total comprehensive income for the period was RMB 21,472,000, down from RMB 41,593,000 in 2018[41]. - The company reported a foreign exchange loss of RMB 2,845,000 related to overseas operations[41]. - The net profit for the group for the first half of 2019 was RMB 24,317 thousand, compared to RMB 43,151 thousand in 2018, a decline of 43.69%[68]. - The basic earnings per share decreased to RMB 0.08 for the six months ended June 30, 2019, down from RMB 0.19 for the same period in 2018[88]. Revenue Breakdown - Sales revenue from corrugated paper packaging products was approximately RMB 893.2 million, an increase of about 8.1% from RMB 826.5 million in 2018, accounting for 90.9% of total revenue[16]. - Sales revenue from corrugated board was approximately RMB 88.9 million, an increase of about 11.8% from RMB 79.5 million in 2018, accounting for 9.1% of total revenue[17]. - The group's revenue for corrugated paper packaging products reached RMB 893,171 thousand in the first half of 2019, an increase of 8.06% compared to RMB 826,461 thousand in 2018[73]. - Total revenue for the group in the first half of 2019 was RMB 982,074 thousand, up from RMB 905,960 thousand in the same period of 2018, representing an increase of 8.42%[73]. Costs and Expenses - The company's sales cost was approximately RMB 805.4 million, an increase of about 10.4% from RMB 729.4 million in the same period of 2018[18]. - Administrative expenses increased by approximately 16.4% to RMB 70.9 million from RMB 60.9 million for the six months ended June 30, 2018, primarily due to higher employee costs and increased administrative expenses from new factories in Taicang and Huizhou[20]. - Financing costs rose by approximately 43.3% to RMB 17.9 million from RMB 12.5 million for the six months ended June 30, 2018, attributed to increased average bank borrowings and interest rates[20]. - The depreciation expense for property, plant, and equipment increased to RMB 38.7 million for the six months ended June 30, 2019, compared to RMB 25.7 million for the same period in 2018, marking a 50.7% increase[84]. Cash Flow and Financing - Operating cash flow net amount was approximately RMB 81.5 million, a decrease of about 28.6% from RMB 114.1 million for the six months ended June 30, 2018, mainly due to a decrease in accounts payable[24]. - Financing activities used net cash of approximately RMB 300.6 million, compared to a net cash inflow of RMB 108.1 million for the six months ended June 30, 2018, mainly due to loan repayments and dividend distributions[25]. - The company reported a net cash outflow from financing activities of RMB 300,615 thousand for the six months ended June 30, 2019, compared to a net inflow of RMB 108,083 thousand in the same period of 2018[48]. - The cash outflow for lease liabilities under financing activities was RMB 81,431 thousand in the first half of 2019, compared to RMB 114,086 thousand in 2018, a decrease of 28.56%[69]. Dividends and Shareholder Information - The company will not declare any interim dividend for the period[13]. - The company declared a special dividend of RMB 76,940,000, equivalent to HKD 0.3 per share, on March 24, 2019, and a final dividend of RMB 26,338,000, equivalent to HKD 0.1 per share, approved by shareholders and paid on July 16, 2019[32]. - The company did not declare any interim dividend for the period[32]. - As of June 30, 2019, major shareholders include PMHC, holding 60% of shares, and Zheng Xianjun, holding 15% through a controlled corporation[31][33]. Future Plans and Investments - The company plans to establish new factories in Foshan and Shandong, with construction expected to start in September 2019 and commercial production anticipated to begin in 2020[14]. - The company plans to use part of the funds raised from its listing to establish a new factory in Shandong Province, expected to begin construction around September 2019 and be completed by the third quarter of 2020[29]. - The company has been seeking a suitable location to establish a factory in Haiyan, Zhejiang Province since June 2018, but has not found an appropriate site due to unexpected changes in site availability and high rental costs[29]. Corporate Governance and Compliance - The company has maintained a high level of corporate governance since its listing on December 21, 2018, with no significant deviations from the corporate governance code[37]. - The audit committee has reviewed the accounting principles and practices adopted by the group, ensuring compliance with relevant regulations[39]. - The financial statements were prepared in accordance with the International Accounting Standards and the Hong Kong Listing Rules[51]. - The interim financial statements are unaudited but have been reviewed by an independent auditor[51]. Assets and Liabilities - As of June 30, 2019, total assets minus current liabilities amounted to RMB 850,245 thousand, an increase from RMB 734,725 thousand as of December 31, 2018[43]. - Total liabilities decreased from RMB 931,634 thousand as of December 31, 2018, to RMB 696,305 thousand as of June 30, 2019[43]. - The company’s total equity as of June 30, 2019, was RMB 619,417 thousand, down from RMB 700,529 thousand as of December 31, 2018[43]. - The company’s inventory as of June 30, 2019, was RMB 130,004 thousand, slightly down from RMB 130,668 thousand as of December 31, 2018[43]. - The company’s receivables decreased from RMB 587,706 thousand as of December 31, 2018, to RMB 528,767 thousand as of June 30, 2019[42]. IFRS Adoption and Accounting Policies - The company adopted IFRS 16, resulting in an increase of RMB 201,656 thousand in property, plant, and equipment as of January 1, 2019[55]. - The company has not experienced significant impacts on its financial performance and position from the adoption of new or revised IFRS standards, except for IFRS 16[53]. - The transition to IFRS 16 did not require restatement of comparative information for 2018[55]. - The company continues to apply the same accounting policies as in the 2018 annual financial statements, except for the new standards adopted[52].

Financial Performance - The company recorded a revenue of approximately RMB 2,019.4 million for the year ended December 31, 2018, an increase of about RMB 355.3 million or 21.4% compared to RMB 1,664.1 million for the year ended December 31, 2017[33]. - The gross profit margin decreased to approximately 18.7% from 21.0% in the previous year, with gross profit amounting to RMB 378.1 million, an increase of about 8.4% from RMB 348.8 million in 2017[33]. - Basic earnings per share for the reporting period were RMB 0.40, representing a 5.3% increase from RMB 0.38 in 2017[33]. - The company's operating revenue for the reporting period was approximately RMB 2,019.4 million, an increase of about RMB 355.3 million or approximately 21.4% compared to RMB 1,664.1 million for the year ended December 31, 2017[41]. - The gross profit for the reporting period was approximately RMB 378.1 million, an increase of about 8.4% from approximately RMB 348.8 million for the year ended December 31, 2017[47]. - The net profit for the reporting period was approximately RMB 90.3 million, an increase of about 5.1% from approximately RMB 85.9 million for the year ended December 31, 2017, with a net profit margin decreasing from 5.2% in 2017 to 4.5% in 2018[51]. - The company's selling costs increased by approximately 24.8% to RMB 1,645.1 million, driven by increased sales volume and rising raw material costs[45]. - Administrative expenses decreased by approximately 7.4% to RMB 126.6 million compared to RMB 136.7 million in 2017[48]. - Financing costs increased by approximately 66.1% to RMB 28.9 million, primarily due to higher average bank borrowings and interest rates[48]. Market Expansion and Strategy - The company successfully listed on the Hong Kong Stock Exchange on December 21, 2018, raising approximately HKD 262.5 million to expand its operations in Zhejiang and Guangdong provinces[31]. - The company plans to open new factories in East and South China to enhance its market position and increase revenue and profitability through expanded geographic coverage and market penetration[35]. - The company aims to consolidate its market position in the corrugated packaging industry amid increasing competition and demand driven by the rapid development of e-commerce and brandization in the downstream consumer sector[38]. - The company is focusing on sustainable growth and increasing shareholder value by expanding its factory footprint and service radius in Eastern and Southern China[38]. - The company plans to establish factories in Zhejiang and Guangdong provinces to enhance regional coverage and market penetration using the net proceeds from its global offering[39]. - The company plans to establish a new factory in Foshan, Guangdong Province, instead of Zhongshan, due to better business opportunities and growth potential, with construction expected to start in Q2 2019 and commercial production in Q2 2020[93]. - The company anticipates the construction and commercial production of the Haiyan factory to begin in Q3 2019 and Q3 2020, respectively, with no expected changes to the total investment amount or estimated annual production capacity[92]. Cash Flow and Financial Position - As of December 31, 2018, the company's cash and cash equivalents amounted to approximately RMB 347.9 million, with net proceeds from the global offering being approximately RMB 233.4 million (equivalent to about HKD 262.5 million)[53]. - The net cash inflow from operating activities for the reporting period was approximately RMB 153.8 million, an increase of approximately RMB 63.6 million or 70.5% compared to RMB 90.2 million for the year ended December 31, 2017, primarily due to rising raw material prices and increased procurement to meet customer demand[55]. - The net cash used in investing activities was approximately RMB 181.7 million, an increase of RMB 131.6 million compared to RMB 50.1 million for the year ended December 31, 2017, mainly for the purchase of properties, plants, and equipment[56]. - The net cash inflow from financing activities was approximately RMB 290.6 million, an increase of RMB 439.1 million compared to a net cash outflow of RMB 148.5 million for the year ended December 31, 2017, largely due to the net proceeds from the global offering[56]. - The company's capital debt ratio decreased from approximately 0.99 in 2017 to 0.75 in 2018, primarily due to the increase in total equity resulting from the net proceeds from the global offering[58]. - As of December 31, 2018, the company's secured bank borrowings amounted to approximately RMB 463.5 million, compared to RMB 243.3 million in 2017, with fixed interest rates ranging from 4.60% to 6.53%[59]. - The total cash and cash equivalents at the end of the reporting period increased from RMB 73.8 million at the beginning of the year to RMB 347.9 million[53]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions since the listing date[149]. - The board of directors includes one executive director, one non-executive director, and three independent non-executive directors, ensuring diverse experience and expertise[156]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[149]. - The audit committee consists of four directors, including Mr. Jiang Tianxi as chairman, responsible for reviewing the company's financial reporting procedures[145]. - The company has implemented sufficient checks and balances despite deviations from certain corporate governance code provisions[152]. - The company has established a comprehensive internal control and risk management system to address various operational, financial, legal, and market risks[178]. - The board believes that the current risk management and internal control systems are adequate and effective[179]. Shareholder Information - The board proposed a final dividend of HKD 0.1 per share for shareholders listed on July 3, 2019[82]. - A special dividend of HKD 0.3 per share was declared based on retained earnings as of December 31, 2017[85]. - As of December 31, 2018, the company's distributable reserves were approximately RMB 410.6 million[101]. - The company reported a total of 45,094,800 shares held by Mr. Zheng, representing 15% ownership[115]. - Major shareholders include International Jifeng Group Holdings with 180,379,200 shares, accounting for 60% of the total shares[120]. Related Party Transactions - The group has confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms[140]. - Independent non-executive directors have reviewed the related party transactions and confirmed compliance with the relevant regulations[140]. Audit and Compliance - The audit committee has reviewed the group's audited annual performance for the reporting period[145]. - The company has established multiple communication channels with shareholders, investors, and other stakeholders, including annual general meetings and reports[185]. - The auditors conducted procedures to understand management's estimation model for expected credit losses and tested the effectiveness of credit controls and debt recovery measures[193]. - The audit report does not cover other information included in the annual report, which is the responsibility of the directors[194]. - The company confirmed compliance with relevant professional ethical requirements regarding independence and communicated any relationships that could reasonably be perceived to affect independence[199].