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].