Financial Performance - The revenue of eprint Group Limited for the six months ended 30 September 2022 was approximately HK$163.1 million, an increase of approximately HK$9.0 million compared to the same period in 2021[10]. - The profit attributable to equity holders of the Company was approximately HK$1.0 million, representing a decrease of approximately 77.7% compared to HK$4.5 million for the six months ended 30 September 2021[11]. - The gross profit for the period was HK$64.8 million, compared to HK$59.2 million for the same period in 2021, indicating a growth in gross profit margin[14]. - Operating profit for the period was HK$4.5 million, down from HK$7.8 million in the previous year[14]. - The total comprehensive income for the period attributable to equity holders of the Company was HK$1.2 million, compared to HK$4.4 million for the same period in 2021[17]. - Earnings per share for profit attributable to equity holders of the Company was 0.18 HK cents, down from 0.82 HK cents in the previous year[17]. - The profit before income tax was HK$5.8 million, a decrease from HK$7.4 million in the same period last year[14]. - The company reported a profit for the period of HK$1,003,000, contributing to retained earnings of HK$100,234,000 as of September 30, 2022[26]. - The company reported a share of losses from joint ventures amounting to HK$999,000, indicating challenges in collaborative projects[74]. - The Group's net profit attributable to equity holders decreased to approximately HK$1 million, a decline of about 77.7% compared to the previous period, primarily due to fair value losses on financial assets and foreign exchange losses[174]. Dividends and Shareholder Returns - The Board did not declare any interim dividend for the six months ended 30 September 2022[11]. - The Board resolved not to declare an interim dividend for the six months ended 30 September 2022, compared to HK$0.8 cents per ordinary share in 2021[101]. Assets and Liabilities - Total assets increased to HK$360,876,000 as of September 30, 2022, up from HK$335,568,000 as of March 31, 2022, representing a growth of approximately 7.8%[21]. - Total equity rose to HK$253,203,000, compared to HK$250,268,000 in the previous period, indicating a slight increase of about 1.0%[21]. - Current liabilities increased to HK$107,673,000, up from HK$85,300,000, marking a rise of about 26.2%[23]. - Total liabilities increased by 26.2% to HK$107,673,000 from HK$85,300,000[23]. - Cash and cash equivalents amounted to HK$136,333,000, up from HK$18,106,000, indicating a substantial increase[21]. - The current portion of lease liabilities increased significantly to HK$14,290,000 as of September 30, 2022, compared to HK$6,221,000 as of March 31, 2022, marking an increase of approximately 129.4%[146]. - The total lease liabilities as of September 30, 2022, were HK$22,495,000, significantly higher than HK$9,714,000 as of March 31, 2022, representing an increase of approximately 131.5%[146]. Cash Flow and Financing Activities - Net cash generated from operating activities for the six months ended September 30, 2022, was HK$37,513,000, significantly higher than HK$17,217,000 for the same period in 2021, reflecting an increase of approximately 118.5%[31]. - Net cash used in financing activities amounted to HK$12,316,000 for the six months ended September 30, 2022, compared to HK$8,326,000 in the same period of 2021, representing a 48% increase[33]. - The net increase in cash and cash equivalents was HK$22,603,000 for the six months ended September 30, 2022, up from HK$16,204,000 in 2021, indicating a 39% growth[33]. - The total cash outflow of leases for the six months ended September 30, 2022, was approximately HK$9,752,000, a decrease from HK$10,057,000 for the same period in 2021, reflecting a reduction of about 3.0%[148]. Revenue Segmentation - Revenue for the six months ended 30 September 2022 was HK$163,083,000, an increase from the previous year's HK$110,871,000[70]. - The paper printing segment generated revenue of HK$110,534,000, while the banner printing segment contributed HK$46,280,000 for the same period[71]. - The property agency services segment reported revenue of HK$6,269,000, with no inter-segment revenue recorded[71]. - The total segment results for the period showed a profit of HK$4,547,000, compared to a loss of HK$3,993,000 in the previous year[71]. - Revenue from external customers for the six months ended September 30, 2022, was HK$154,081,000, an increase from HK$119,631,000 in the same period of 2021, representing a growth of approximately 28.8%[74]. - The Group's paper printing segment revenue decreased by approximately 7.4% to approximately HK$110.5 million for the six months ended 30 September 2022, with advertising printing contributing approximately HK$45.1 million, or about 27.7% of total revenue[178]. - The banner printing segment reported revenue of approximately HK$46.3 million, an increase of approximately HK$11.5 million or about 33.0% compared to the previous year, with a gross profit margin increase from approximately 45.2% to approximately 47.8%[179]. - The acquisition of Sakura Japan Property (Hong Kong) Limited contributed approximately HK$6.3 million in revenue for the property agency services segment for the six months ended 30 September 2022, with no revenue recorded in the same period of the previous year[180]. Financial Management and Risks - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[45]. - The Group applies the HKFRS 9 general approach to measure expected credit losses using a 3-stage model for financial assets at amortised cost[9]. - The Group's financial risk management information is not fully included in the interim financial information and should be read in conjunction with the consolidated financial statements for the year ended 31 March 2022[45]. Corporate Structure and Compliance - The company is engaged in providing printing services and solutions, as well as property agency services, targeting a diversified customer base in Hong Kong[36]. - The financial information is prepared in accordance with Hong Kong Accounting Standards (HKAS) 34, ensuring compliance with local regulations[36]. - The company was incorporated in the Cayman Islands on January 10, 2013, and is listed on the Main Board of The Stock Exchange of Hong Kong Limited[36]. Capital Expenditure and Investments - Capital expenditure for the period was HK$9,528,000, with depreciation of right-of-use assets at HK$6,113,000[71]. - Total capital expenditure for the period was HK$24,497,000, which includes additions of HK$2,076,000 and right-of-use assets of HK$22,421,000[106]. - Capital commitments for property, plant, and equipment amounted to HK$12,382,000 as of September 30, 2022, compared to HK$6,565,000 as of March 31, 2022, indicating an increase of approximately 88.5%[153]. Related Party Transactions - The Group's related party transactions were conducted in the normal course of business, with rental expenses for related parties totaling HK$4.8 million for the six months ended 30 September 2022[160]. - Management fee income receivable from e-post Limited was HK$469,000 for the six months ended 30 September 2022[163]. - The total compensation for key management personnel during the period was HK$2.8 million, a decrease from HK$4.4 million in the previous year[166]. - The Group's related party balances are unsecured, interest-free, and repayable on demand, with fair values approximating their carrying values[165].

Financial Performance - Revenue for the year ended March 31, 2022, was HKD 306.02 million, representing a 14.7% increase from HKD 266.90 million in the previous year[5]. - The operating profit (loss) for the year was HKD 10.87 million, down 46.4% from HKD 20.27 million in the previous year[7]. - The e-print segment reported a significant decline in operating profit, down 69.6% to HKD 6.18 million from HKD 20.31 million[7]. - The e-banner segment showed remarkable growth in operating profit, increasing to HKD 4.67 million from a loss of HKD 0.04 million, a change of 11,775.0%[7]. - Net profit attributable to equity holders was HKD 7.67 million, a decrease of 59.7% from HKD 19.01 million in the previous year[7]. - Basic earnings per share decreased to HKD 1.39 from HKD 3.46, reflecting a decline of 59.8%[7]. - The gross profit margin for the year was 37.8%, slightly down from 38.7% in the previous year[7]. - The net profit for the year ended March 31, 2022, was HKD 9,343,000, compared to HKD 19,339,000 in the previous year, indicating a decline of approximately 51.6%[29][31]. - The group recorded a profit attributable to equity holders of approximately HKD 7,700,000 for the year ended March 31, 2022, a decrease of about HKD 11,300,000 compared to HKD 19,000,000 in the previous year[100]. Assets and Liabilities - Total assets as of March 31, 2022, were HKD 335.08 million, a slight increase of 1.2% from HKD 331.15 million in the previous year[7]. - Total equity increased to HKD 255.60 million, up 2.0% from HKD 250.66 million[7]. - Cash and cash equivalents rose to HKD 113.91 million, a 6.9% increase from HKD 106.57 million[7]. - Non-current liabilities increased to HKD 3,493 million in 2022 from HKD 2,053 million in 2021, representing a growth of 70.0%[15]. - Trade payables rose significantly to HKD 11,493 million in 2022, up from HKD 7,186 million in 2021, marking an increase of 59.8%[15]. - Total liabilities decreased slightly to HKD 79,483 million in 2022 from HKD 80,497 million in 2021, a reduction of 1.3%[15]. - The company reported a total of HKD 70,699 million in current liabilities for 2022, a slight decrease from HKD 71,965 million in 2021, down by 1.8%[15]. - Deferred tax liabilities decreased to HKD 5,118 million in 2022 from HKD 6,009 million in 2021, a decline of 14.9%[15]. - The company’s borrowings increased to HKD 26,216 million in 2022, up from HKD 19,904 million in 2021, indicating a rise of 31.5%[15]. - Other payables decreased to HKD 173 million in 2022 from HKD 470 million in 2021, a decrease of 63.2%[15]. - Lease liabilities decreased significantly to HKD 6,221 million in 2022 from HKD 17,513 million in 2021, a drop of 64.5%[15]. - The company’s total assets remained stable, with a slight increase in total equity and liabilities, indicating a stable financial position despite fluctuations in specific liabilities[15]. Revenue Segmentation - Revenue from external customers in the paper printing segment was HKD 229,518,000, while the digital printing segment generated HKD 70,793,000, contributing significantly to the overall revenue[29]. - The paper printing segment generated revenue of approximately HKD 229,500,000, an increase of about HKD 19,100,000 or 9.1% year-on-year, with advertising printing contributing approximately HKD 90,300,000, accounting for about 29.5% of total revenue[69]. - The digital printing segment recorded revenue of approximately HKD 70,800,000, an increase of about HKD 14,300,000 or 25.4%, contributing approximately HKD 59,900,000, which is about 19.6% of total revenue[70]. - Revenue from advertising printing accounted for approximately 29.5% of total revenue for the year ended March 31, 2022, compared to 31.0% for the previous year[87]. - The website remained the primary sales channel, contributing approximately 58.3% of total revenue from printing and other services, an increase of about 3.0% from the previous year[89]. Expenses and Cost Management - Selling and distribution expenses accounted for approximately 9.3% of revenue for the year ended March 31, 2022, compared to 9.6% for the previous year[93]. - Administrative expenses increased significantly by approximately HKD 16.7 million, primarily due to increases in employee benefits and outsourced customer support expenses[94]. - Financing income decreased by approximately HKD 200,000 or about 4.6% due to the repayment of a loan of HKD 13 million during the year[95]. - Financing costs decreased by approximately HKD 500,000 or about 30.5%, mainly due to reduced interest expenses on lease liabilities[96]. - Employee benefit expenses increased by approximately HKD 27,300,000 or 45.6% to about HKD 87,000,000 for the year ended March 31, 2022, mainly due to the absence of a one-time government subsidy received in the previous year[115]. Future Outlook and Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth[29]. - The company plans to diversify its business portfolio and explore new business development opportunities, including the acquisition of properties to expand its digital printing operations[73]. - The company will continue to enhance cost control measures and develop new business lines and customized products to meet market demand[74]. - The management anticipates ongoing challenges due to the COVID-19 pandemic, which may impact economic activities in the coming year[73]. Corporate Governance and Audit - The company has adopted the corporate governance code as per the listing rules, with a noted deviation regarding the separation of the roles of Chairman and CEO[123]. - The audit committee was established in November 2013 and consists of three independent non-executive directors[124]. - The company has not yet completed the preparation and audit of its annual results for the year ended March 31, 2022, due to COVID-19 disruptions affecting employee operations[127]. - The audit committee has reviewed the unaudited financial statements for the year ended March 31, 2022, but these results have not been approved by the auditors[128]. - The company expects to complete the audit procedures by July 29, 2022, and will publish the audited annual results on the Stock Exchange and its website by that date[131]. - The company will issue further announcements regarding the audited annual results and any significant accounting adjustments or differences compared to the unaudited results[129]. Shareholder Information - The company did not declare any final dividend for the year ending March 31, 2022, consistent with the previous year[62]. - The board did not recommend a final dividend for the year ended March 31, 2022[118]. - Shareholders and potential investors are advised to exercise caution when trading the company's securities due to the unaudited financial information[134].

Revenue and Profitability - Revenue for the e-print segment increased by 20.0% to HK$119,331, while the e-banner segment revenue rose by 17.0% to HK$34,750 for the six months ended September 30, 2021[10]. - Operating profit before other losses/gains increased significantly by 31.7% to HK$8,241, with the e-print segment contributing HK$5,147 and the e-banner segment contributing HK$3,094[10]. - Profit for the period attributable to equity holders of the company rose by 11.7% to HK$5,655 compared to HK$5,066 in the same period of 2020[11]. - Total revenue for the six months ended September 30, 2021, was HK$154,081,000, with paper printing contributing HK$119,631,000 and banner printing contributing HK$34,767,000[129]. - The segment results showed a profit of HK$7,769,000 for the period, with paper printing generating HK$4,646,000 and banner printing generating HK$3,123,000[129]. - Profit before income tax for the period was HK$7,400,000, with an income tax expense of HK$1,745,000[129]. - The Group's profit for the period was HK$5,655,000[129]. Assets and Liabilities - Total assets as of September 30, 2021, were HK$331,422, reflecting a slight increase of 0.1% from HK$331,152 as of March 31, 2021[10]. - Total liabilities decreased to HK$75,182,000 from HK$80,497,000, showing a reduction in financial obligations[20]. - Total equity attributable to equity holders of the Company increased to HK$256,240,000 from HK$250,655,000, indicating a positive change in shareholder equity[20]. - Non-current assets decreased to HK$162,952,000 from HK$173,268,000, primarily due to a reduction in property, plant, and equipment[18]. - Segment assets as of 30 September 2021 totaled HK$196,350,000, a decrease from HK$210,828,000 as of 31 March 2021, representing a decline of approximately 6.9%[142]. Cash Flow and Liquidity - Cash and cash equivalents increased by 15.3% to HK$122,828 compared to HK$106,565 as of March 31, 2021[10]. - The net cash generated from operating activities was HK$17,217,000, down from HK$26,526,000, reflecting a decline of 35.3% year-over-year[84]. - Cash flows from investing activities resulted in a net cash inflow of HK$7,313,000, compared to a net cash outflow of HK$22,782,000 in the previous year, indicating a significant improvement[84]. - The company reported a net increase in cash and cash equivalents of HK$16,204,000 for the period, compared to a decrease of HK$8,381,000 in the prior year[86]. - Cash and cash equivalents as of 30 September 2021 amounted to HK$122,828,000, up from HK$106,565,000 as of 31 March 2021, indicating an increase of about 15.2%[142]. Earnings and Dividends - Basic earnings per share decreased by 12.8% to HK$0.82 from HK$0.94 in the same period of 2020[10]. - The company declared an interim dividend of HK$0.8 cents per ordinary share for the six months ended 30 September 2021, compared to no dividend in 2020[165]. - Basic earnings per share for the six months ended 30 September 2021 was HK$0.82, compared to HK$0.94 for the same period in 2020, reflecting a decline of approximately 12.8%[155]. Expenses and Costs - Selling and distribution expenses increased to HK$13,928, up from HK$12,973 in the same period of 2020[11]. - Cost of materials for the six months ended 30 September 2021 was HK$32,183,000, an increase from HK$23,499,000 in 2020, indicating a rise of approximately 37.0%[145]. - Depreciation of property, plant, and equipment amounted to HK$5,450,000, with paper printing at HK$4,852,000 and banner printing at HK$598,000[129]. - Current income tax expense for the six months ended 30 September 2021 was HK$1,628,000, compared to HK$973,000 in 2020, representing an increase of approximately 67.2%[150]. Financial Instruments and Risk Management - The Group's financial risk management includes fair value estimation, which is crucial for assessing the financial instruments held[113]. - The fair value of financial instruments traded in active markets is based on readily available quoted market prices, ensuring transparency and accuracy in financial reporting[117]. - The carrying amounts of the Group's financial assets and liabilities approximate their fair values due to short maturities and market interest rates[112]. - Financial assets and liabilities with a maturity of less than one year are assumed to approximate their fair values, reflecting effective risk management practices[112]. Investments and Joint Ventures - The Group's investment in joint ventures decreased to HK$11,994,000 as of September 30, 2021, from HK$13,078,000 as of March 31, 2021, a decline of about 8.3%[188]. - The share of losses from joint ventures for the six months ended September 30, 2021, was HK$999,000, compared to a profit of HK$375,000 in the same period last year[188]. - The Group's investments in associates as of September 30, 2021, included a 20% stake in a real estate agency in Hong Kong and a 40% stake in a food service company, both measured using the equity method[196]. Compliance and Accounting Standards - The financial information is prepared in accordance with Hong Kong Accounting Standards, ensuring compliance with local regulations and standards[89]. - The Group's accounting policies are consistent with those used for the financial statements for the year ended 31 March 2021, with no significant impacts from the adoption of new amendments[3]. - No new standards or amendments are expected to have a material impact on the Group for the interim period[5].

Financial Performance - For the year ended March 31, 2021, the e-print segment revenue was HK$266.9 million, a decrease of 27.0% from HK$365.8 million in 2020[15]. - The e-banner segment recorded an operating profit of HK$56.5 million, down 32.3% from HK$83.5 million in the previous year[15]. - Profit attributable to equity holders of the Company increased to HK$19.0 million, representing a 233.3% increase from HK$5.7 million in 2020[15]. - The net profit margin attributable to equity holders of the Company improved to 7.1%, compared to 1.6% in the previous year[15]. - Total revenue from all sales channels was HK$266.9 million, with websites contributing approximately 55.3% of total revenue[48]. - Revenue from printing and other services decreased by approximately HK$98.9 million or approximately 27.0%, from approximately HK$365.8 million to approximately HK$266.9 million due to the impact of the macroeconomic downturn and COVID-19[42]. - The paper printing segment reported a revenue decline of approximately 25.5%, while the banner printing segment experienced a decrease of approximately 32.3%[34][35]. Assets and Equity - Total assets as of March 31, 2021, were HK$331.2 million, a slight increase of 1.1% from HK$327.6 million in 2020[15]. - Total equity rose to HK$250.7 million, reflecting a 9.0% increase from HK$230.0 million in the prior year[15]. - Cash and cash equivalents increased to HK$106.6 million, up 5.0% from HK$101.5 million in 2020[15]. - As of 31 March 2021, the current ratio was 2.2, unchanged from the previous year, while the gearing ratio decreased to 15.7% from 25.4%[59][60]. - The Group's bank borrowings were approximately HK$19.9 million as of March 31, 2021, down from HK$21.2 million in the previous year, with a weighted average interest rate of 2.3% for both FY2020/21 and FY2019/20[61][63]. Cost Management - Management implemented cost reduction measures and developed new income sources to mitigate the impact of the pandemic[20]. - Subcontracting costs decreased from approximately HK$111.3 million to approximately HK$58.0 million, representing a reduction of approximately 47.9%[24]. - The gross profit margin increased from approximately 34.8% to approximately 38.7% due to a significant reduction in the cost of sales[32]. - The Group plans to strengthen cost control to maintain a competitive pricing strategy[40]. - The Group will continue to implement measures to control operational costs amid ongoing uncertainties due to the COVID-19 pandemic[27]. Business Challenges and Strategies - The Group faced challenges due to COVID-19, leading to reduced market demand and sales orders throughout the year[19]. - The management expects the operating environment in Hong Kong to remain challenging and uncertain in the coming period[40]. - New business lines and customized products will be developed to meet market demand[40]. - The Group will enhance value-added services, including the e-print app and self-service platforms[40]. - Management plans to explore different business opportunities to enhance long-term growth and maximize shareholder value[27]. Corporate Governance - The company reported compliance with the Corporate Governance Code during FY2020/21, with one deviation regarding the separation of the roles of chairman and CEO[81]. - The Board consists of seven Directors, including two executive Directors, two non-executive Directors, and three independent non-executive Directors[84]. - The company aims to enhance corporate governance practices to ensure proper regulation of business activities and decision-making processes[81]. - The Board will continue to review and improve corporate governance standards to enhance shareholder value[81]. - The company has a balanced board composition to ensure strong independence and effective leadership[86]. Risk Management - The Group's risk management framework follows the COSO Enterprise Risk Management – Integrated Framework, allowing effective management of risks[189]. - For FY2020/21, principal risks identified include strategic risks from potential market volatility and operational risks from the outbreak of coronavirus disease[193]. - The Group maintains a risk register to track major risks, which is updated at least annually based on likelihood and potential impact[195]. - The effectiveness of the Group's risk management framework will be evaluated at least annually, with periodic management meetings to update progress[198]. - The Company will continue to engage external professionals annually to review and enhance the internal control and risk management systems[199]. Shareholder Communication - The Company is committed to open communication and reasonable disclosure of information to its shareholders[177]. - The Board acknowledges its responsibility to prepare consolidated financial statements that provide a true and fair view of the Group's financial position[180]. - The Company will publish annual and interim results and reports to all shareholders[178]. - All shareholder votes at general meetings must be taken by poll, except for procedural matters[173]. - Shareholders holding at least 10% of the paid-up capital can requisition an extraordinary general meeting[167].

2020 INTERIM REPORT 中期報告 g www.e-print.com.hk eprint Group Limited eprint 集 團 有 限 公 司 ( Incorporated in the Cayman Islands with limited liability ) ( 於閱疊群島註冊成立的有限公司 ) Stock Code 股份代號：1884 CONTENTS 目錄 Interim Report 2020 二零二零年中期報告 1 Corporate Information 公司資料 2 | --- | --- | |--------------------------------------------------------------------|--------------------------| | | | | | | | Financial Highlights | 財務摘要 | | Condensed Interim Consolidated Statement of Comprehensive Income | 簡明中期合併綜合收益表 | | Condensed ...

Financial Performance - For the year ended 31 March 2020, eprint Group Limited reported a revenue of HK$365.8 million, a decrease of 10.5% compared to HK$408.7 million in 2019[11]. - The e-print segment revenue decreased by 10.1% to HK$282.3 million, while the e-banner segment revenue decreased by 11.7% to HK$83.5 million[11]. - Operating profit before other losses decreased by 25.8% to HK$15.5 million from HK$20.9 million in the previous year[11]. - The net profit attributable to equity holders of the company decreased by 67.2% to HK$5.7 million, down from HK$17.4 million in 2019[11]. - The gross profit margin improved to 34.8% from 32.7% in the previous year, despite a decrease in overall gross profit[11]. - The Group recorded a profit decrease of 67.2%, primarily due to a fair value loss of approximately HKD 5,300,000 on listed equity investments, which accounted for a profit decrease of about 45.4%[21]. - The profit attributable to equity holders dropped by 67.2% to HK$5.7 million, primarily due to a fair value loss of approximately HK$5.3 million on listed equity investments and a decline in sales volume[30]. - The Group recorded a net loss of HK$8.5 million for the year ended 31 March 2020, an increase in loss of HK$8.2 million compared to a loss of HK$0.3 million for the year ended 31 March 2019[45]. Revenue Breakdown - The paper printing segment's revenue decreased by HK$31.8 million or 10.1%, with advertising printing contributing HK$114.1 million, representing 31.2% of total revenue[30]. - The banner printing segment's revenue decreased by HK$11.0 million or 11.7%, while gross profit only slightly dropped by 5.1% due to cost control measures[30]. - Revenue from the provision of printing and other services decreased by HK$42.9 million or 10.5% during the year ended 31 March 2020[37]. - Revenue from websites increased to HK$192.3 million, representing 52.6% of total revenue, while store revenue decreased to HK$62.0 million, accounting for 16.9%[42]. - The Group's total revenue for the year ended 31 March 2020 was primarily driven by online sales, contributing 52.6% of total revenue, an increase of 7.1% compared to the previous year[45]. Cost Management - The company faced challenges including increased operating costs and the impact of the COVID-19 outbreak, which adversely affected market demand[15][16]. - Subcontracting costs decreased by approximately HK$34.9 million or 24%, from HK$146.2 million in 2019 to HK$111.3 million in 2020 due to strategic changes[17]. - The Group has taken measures to control operating costs and explore various business opportunities to maintain profitability[19]. - Selling and distribution expenses represented 9.1% of revenue for the year ended 31 March 2020, compared to 8.5% for the previous year, with a decrease of HK$1.5 million attributed to reduced staff costs[51]. - Administrative expenses accounted for 22.1% of total revenue for the year ended 31 March 2020, remaining stable at approximately HK$80.8 million compared to the previous year[52]. Cash and Assets - Total assets increased by 5.4% to HK$327.6 million, compared to HK$310.7 million in 2019[11]. - Cash and cash equivalents decreased by 17.9% to HK$101.5 million from HK$123.7 million in the previous year[11]. - The Group's bank balances and cash decreased to HK$101.5 million as at 31 March 2020, a decline of HK$22.1 million compared to HK$123.6 million as at 31 March 2019[60]. - As of 31 March 2020, the Group's bank borrowings were HK$21.2 million, down from HK$25.9 million as of 31 March 2019, representing a decrease of approximately 18.2%[63]. Strategic Initiatives - The Group aims to diversify its business portfolio and explore new business opportunities to improve shareholder value[34]. - The Group's strategy includes diversifying into other industries and nations, as evidenced by previous investments in Sakura Japan Property and e-print Solutions Sdn. Bhd[24]. - The Group maintained a healthy cash balance through effective cash management, which can be utilized for further expansion and investment[24]. - The Group has invested in Top Success Investment Group Limited, which is engaged in finance leasing, providing an opportunity for further business diversification[24]. Governance and Board Structure - The Company complied with the Corporate Governance Code except for the separation of the roles of chairman and chief executive officer, which are held by the same individual[92]. - The Board consists of seven Directors, including two executive Directors, two non-executive Directors, and three independent non-executive Directors[103]. - The Nomination Committee consists of two independent non-executive Directors and one executive Director, focusing on board composition and diversity[140]. - The company emphasizes a formal and transparent procedure for the selection and appointment of Directors to ensure stability[142]. - Independent non-executive Directors have confirmed their independence according to Listing Rules, ensuring a balanced board[134]. Meetings and Professional Development - Five Board meetings were held during the year ended 31 March 2020, allowing Directors to include matters in the agenda and review documents in advance[108]. - All directors participated in continuous professional development through seminars relevant to their roles, ensuring they remain informed and effective[125]. - The Nomination Committee held two meetings during the year ended March 31, 2020, to review board composition and assess the independence of independent non-executive Directors[154]. Audit and Remuneration - The Audit Committee reviewed the audited financial statements for the year ended 31 March 2020, ensuring compliance with applicable accounting standards and Listing Rules[166][174]. - The Remuneration Committee held 2 meetings during the year ended 31 March 2020 to review the remuneration policy and structure for Directors and senior management[160]. - The emolument payable to Directors is determined based on contractual terms and the Group's performance, with details provided in the financial statements[163]. - The Audit Committee comprises three independent non-executive Directors, ensuring oversight of financial reporting and risk management[167]. Dividend Policy - The Company does not have a pre-determined dividend distribution ratio, and past dividend distribution records may not be used as a reference for future dividends[190]. - The Board will continually review the Dividend Policy and reserves the right to update, amend, and modify it at any time[191]. - The declaration and payment of dividends are subject to restrictions under the Companies Law of the Cayman Islands and other applicable laws and regulations[189].

Financial Performance - Revenue for the e-print segment was HK$159,068, and for the e-banner segment was HK$46,090, totaling HK$205,158 for the six months ended September 30, 2019, representing a 0.2% increase from HK$204,789 in the same period of 2018[8]. - Profit for the period attributable to equity holders of the company was HK$5,962, a decrease of 48.0% from HK$11,456 in the previous year[12]. - Basic earnings per share decreased to 1.08 HK cents, down 48.1% from 2.08 HK cents in the same period last year[13]. - Operating profit for the period was HK$7,102, down 44.9% from HK$12,889 in the same period of 2018[10]. - Total comprehensive income for the period was HK$4,876, a decrease of 51.3% from HK$10,022 in the previous year[10]. - Other income for the period was HK$1,297, compared to HK$1,629 in the same period last year[10]. - Total comprehensive income for the period was HK$4,945,000, compared to HK$5,912,000 in the previous year, indicating a decrease of 16.3%[135]. Assets and Liabilities - Total assets increased by 9.3% to HK$339,514 as of September 30, 2019, compared to HK$310,673 as of March 31, 2019[8]. - Current assets rose to HK$180,911,000, compared to HK$142,686,000 in the previous period, indicating a growth of about 26.8%[19]. - Total liabilities increased significantly to HK$108,920,000 from HK$76,155,000, reflecting a rise of approximately 43.0%[19]. - Total equity decreased by 1.7% to HK$230,594 as of September 30, 2019, from HK$234,518 as of March 31, 2019[8]. - Total equity attributable to equity holders of the Company decreased slightly to HK$224,573,000 from HK$228,427,000, a decline of about 1.6%[19]. - Cash and cash equivalents decreased by 11.9% to HK$108,922 as of September 30, 2019, compared to HK$123,664 as of March 31, 2019[8]. - Trade payables amounted to HK$7,699,000, down from HK$9,323,000, indicating a decrease of approximately 17.4%[19]. Cash Flow - For the six months ended September 30, 2019, cash generated from operations was HK$27,793,000, an increase of 76.5% compared to HK$15,747,000 in the same period of 2018[135]. - Net cash generated from operating activities was HK$26,176,000, up from HK$13,346,000, reflecting a significant improvement in operational efficiency[135]. - The company reported a net cash used in investing activities of HK$18,411,000, which is an increase from HK$11,869,000 in the prior year, highlighting increased investment efforts[135]. - The company paid dividends of HK$8,800,000 during the period, a decrease from HK$13,200,000 in the previous year, reflecting a strategic decision to conserve cash[137]. - The company reported a net cash used in financing activities of HK$22,086,000, compared to HK$17,061,000 in the previous year, indicating increased financing costs[137]. Accounting Policies and Standards - The condensed interim consolidated financial information is presented in Hong Kong dollars, with the reporting period ending on September 30, 2019[1]. - The Group's accounting policies are consistent with those used in preparing the financial statements for the year ended March 31, 2019, with the adoption of HKFRS 16 on leases starting from April 1, 2019[143]. - The adoption of new accounting standards and amendments did not have significant impacts on the Group's results and financial position[143]. - The Group has not early adopted any new standards that will become effective for the accounting period beginning on April 1, 2019[149]. - New standards effective from January 1, 2020, include HKFRS 3 (Revised) regarding the definition of a business[150]. Lease Accounting - The Group recognized lease liabilities of HK$46,262,000 as of April 1, 2019, after adopting HKFRS 16, which includes HK$17,013,000 as current liabilities and HK$29,249,000 as non-current liabilities[156]. - Right-of-use assets recognized upon application of HKFRS 16 totaled HK$49,182,000, including HK$44,126,000 related to operating leases and HK$4,448,000 reclassified from property, plant, and equipment[165]. - Lease payments are allocated between the liability and finance cost, with finance costs charged to profit or loss over the lease period[172]. - Payments associated with short-term leases (12 months or less) and leases of low-value assets are recognized as expenses in profit or loss on a straight-line basis[179]. Business Segments - The Company is primarily engaged in providing printing services and solutions for advertisements, bound books, and stationery to a diversified customer base in Hong Kong[1]. - The Group operates in two business segments: paper printing (mainly from the brand "e-print") and banner printing (mainly from the brand "e-banner")[200]. - Performance assessment of operating segments is based on gross profit less selling, distribution, and administrative expenses allocated to each segment[200]. - The Group primarily operates in Hong Kong, with its assets mainly located there, resulting in no geographical segment reporting[200].

Financial Performance - Revenue for the e-print segment was HK$314.1 million, a 1.7% increase from HK$308.8 million in the previous year[11]. - Operating profit before other losses decreased by 38.2% to HK$20.9 million from HK$33.8 million year-on-year[11]. - Profit attributable to equity holders of the company was HK$17.4 million, down 20.9% from HK$22.0 million in the prior year[11]. - Net profit margin decreased to 4.3% from 5.5% year-on-year[11]. - Gross profit margin declined to 32.7% compared to 36.2% in the previous year[11]. - Basic earnings per share fell by 21.2% to 3.16 HK cents from 4.01 HK cents[11]. - The audited profit attributable to equity holders decreased by 20.9% to HK$17.4 million, primarily due to increased operating costs and absence of one-off income from software sales[23]. - Profit for the year attributable to equity holders decreased by HK$4.6 million or 20.9%, from HK$22.0 million in 2018 to HK$17.4 million in 2019, with a net profit margin drop of 1.2%[60]. Revenue Segments - The paper printing segment recorded a slight revenue improvement despite strong competition from digital marketing[13]. - The banner printing segment achieved comparable results to the previous year, indicating successful market penetration and reputation building[13]. - Revenue from printing and other services increased by HK$5.4 million or 1.3%, mainly driven by paper printing services[30]. - The paper printing segment's revenue rose by HK$5.3 million, with advertising printing contributing HK$128.1 million, while the gross profit margin dropped by 3.0% to 32.2%[23]. - The banner printing segment maintained similar revenue levels, but the gross profit margin dropped by 5.1% due to reclassification of delivery charges and increased costs[23]. Assets and Equity - Total assets slightly decreased by 0.2% to HK$310.7 million from HK$311.2 million[11]. - Total equity increased by 1.2% to HK$234.5 million from HK$231.7 million[11]. - As of 31 March 2019, the Group's bank balances and cash increased by HK$34.2 million to HK$123.7 million, primarily due to cash inflow from operating activities[66]. - The Group's current ratio improved to 2.5 as of 31 March 2019, compared to 2.3 as of 31 March 2018, while the gearing ratio decreased to 12.0% from 13.7%[67]. Cash Flow and Investments - Cash and cash equivalents rose by 38.2% to HK$123.7 million from HK$89.5 million[11]. - The Group maintains a healthy cash balance for further expansion and investment opportunities[15]. - The group has diversified investments in bonds issued by listed companies on The Stock Exchange of Hong Kong for capital preservation and higher interest returns compared to bank interest income[50]. Operational Challenges and Strategies - Profit decreased due to the absence of one-off software income from the previous year and increased operational expenses[13]. - The Group anticipates a challenging operating environment in Hong Kong due to global economic uncertainty and rising operating costs[26]. - The management plans to enhance competitiveness through cost control, new business development, and improved value-added services[27]. - The Group plans to adopt a diversification strategy by expanding its product and services portfolio[15]. Corporate Governance - The company complied with the Corporate Governance Code except for the separation of the roles of chairman and CEO, which are held by the same individual[89]. - The board consists of eight directors, including two executive directors, three non-executive directors, and three independent non-executive directors[95]. - The board is responsible for overall strategy, major acquisitions, annual budgets, and significant operational and financial matters[95]. - The Company has established a corporate governance framework to comply with the CG Code and other legal requirements[165]. Board and Committees - The Nomination Committee, established on November 13, 2013, consists of two independent non-executive Directors and one executive Director, focusing on Board composition and diversity[124]. - The Remuneration Committee was established on November 13, 2013, and consists of two independent non-executive Directors and one executive Director[141]. - The Audit Committee reviewed the annual results for the year ended March 31, 2018, and the interim results for the six months ended September 30, 2018, ensuring compliance with applicable accounting standards and Listing Rules[153]. - The Audit Committee is responsible for overseeing the Company's financial reporting system and risk management[156]. Risk Management - The Group has established an enterprise risk management framework to manage various risks faced by the organization[199]. - The Board considers the internal control and risk management systems to be effective and adequate based on findings from the independent review and Audit Committee comments[195]. - The Audit Committee noted that the existing risk management and internal control systems would be reviewed annually[161]. Employee and Shareholder Engagement - The Company provides various employee benefits, including retirement contributions and medical insurance, in compliance with local regulations[84]. - The Company is committed to open communication and reasonable disclosure of information to shareholders[184]. - The general meeting serves as an effective communication channel between the Board and shareholders[184].