Financial Performance - Revenue for 2022 reached RMB 9,538 million, a 19.5% year-on-year increase[8] - Total revenue increased by 19.5% from RMB 7,982.2 million in 2021 to RMB 9,538.2 million in 2022, driven by growth in paper product sales[10] - Gross profit decreased to RMB 1,164.1 million in 2022 from RMB 1,533.7 million in 2021, with gross margin dropping by 7.0 percentage points to 12.2%[13] - The company's net profit attributable to owners decreased by 63.0% to RMB 205.7 million in 2022 from RMB 556.6 million in 2021[16] - Revenue for 2022 was RMB 9,538,229 thousand, an increase from RMB 7,982,231 thousand in 2021[181] - Gross profit for 2022 was RMB 1,164,104 thousand, a decrease from RMB 1,533,689 thousand in 2021[181] - Profit before tax for 2022 was RMB 358,879 thousand, a significant decrease from RMB 747,282 thousand in 2021[181] - Net profit attributable to owners of the company for 2022 was RMB 205,729 thousand, down from RMB 556,621 thousand in 2021[181] - Basic and diluted earnings per share for 2022 were RMB 0.20, compared to RMB 0.63 in 2021[181] - Total comprehensive income for the year 2022 was RMB 235,462 thousand, a decrease from RMB 547,648 thousand in 2021[181] Sales and Market Share - The company achieved a sales volume of 1.95 million tons of machine-made paper in 2022, a 28% increase compared to 1.52 million tons in the previous year[8] - Sales of corrugated paper surged by 79.0% to RMB 1,959.9 million in 2022, accounting for 20.6% of total revenue[11] - Sales of coated white top kraft paper declined by 2.9% to RMB 2,368.9 million in 2022, representing 24.8% of total revenue[11] - Sales of white top kraft paper increased by 9.1% to RMB 1,954.0 million in 2022, accounting for 20.5% of total revenue[11] - Sales of specialty paper products grew by 32.4% to RMB 2,074.9 million in 2022, representing 21.8% of total revenue[11] Cost Management and Efficiency - The company's "three fees" ratio decreased to 10.5%, down 1.9 percentage points from 12.4% in the previous year[8] - Inventory turnover rate improved to 8.4 times, up from 7.5 times in the previous year[8] - The company implemented cost reduction and efficiency improvement measures, optimizing its financial structure and logistics efficiency[8] - The company's sales cost increased by 29.9% to RMB 8,374.1 million in 2022, primarily due to rising costs of raw materials such as waste paper, wood pulp, and coal[12] - The company faced challenges from rising raw material and energy costs, with wood and pulp purchase prices increasing by 4.5% year-on-year[7] Environmental and Sustainability - The company was recognized as a water efficiency leader by the Ministry of Industry and Information Technology in 2022, achieving top-tier water efficiency indicators in the paper industry[8] - The company focused on improving resource utilization efficiency and recycling rates in its high-end packaging paper and new product development[8] - The company's wastewater treatment capacity reaches 55,000 m³ per day, with a reuse rate of over 95% for treated wastewater[72] - The company invested over 70 million yuan in 2021 to upgrade odor control facilities for wastewater treatment[72] - The company achieved a clean production level of Grade B in terms of water consumption, comprehensive energy consumption, and dry fiber consumption[72] - The company's environmental management system is certified, and it complies with national and local environmental laws and regulations[71] - The company uses recycled waste paper as the primary raw material for high-grade packaging paper production, reducing environmental impact and deforestation[64] - The company was listed as a provincial-level water-saving enterprise and a national-level "water efficiency leader" in the paper industry in 2022[69] - The company's total greenhouse gas emissions in 2022 were 1,941,111 tons of CO2 equivalent, with a density of 0.67 tons per unit of production[79] - The company implemented energy system optimization projects in 2014, reducing energy consumption per ton of product, and was recognized as a national key energy-saving project[86] - The company installed a 1.9 MW photovoltaic power generation facility on 40,000 square meters of idle roof space, generating 2 million kWh of electricity annually[86] - The company's wastewater reuse rate reached over 75% in 2022, significantly reducing freshwater consumption[87] - The company's freshwater consumption was 10,439,737 tons in 2022, with a freshwater consumption per ton of paper of 5.52 tons, well below the national first-level standard of 17 tons per ton of paper[87] - The company plans to control freshwater consumption per ton of paper to no more than 6 tons over the next five years[87] Corporate Governance and Board Structure - The Board of Directors consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[37] - Three directors, including Shi Weixin, Wang Changhai, and Ci Xiaolei, will retire and be eligible for re-election at the 2023 Annual General Meeting[39] - Independent non-executive directors Wang Zefeng and Jiao Jie have served for over nine years and will retire, subject to shareholder approval for re-election[39] - The company held a total of 11 board meetings and 1 annual general meeting during the 2022 fiscal year, with all directors attending all meetings[41] - The audit committee held 2 meetings in 2022 to review the annual and interim financial results, as well as risk management and internal control systems[44] - The remuneration committee held 1 meeting in 2022 to determine executive director compensation policies and evaluate their performance[45] - The nomination committee held 1 meeting in 2022 to review board structure, size, and composition, as well as the board diversity policy[47] - The board has a gender diversity ratio of 67% male and 33% female, with an age range of 42 to 66 years old[48] - The company's overall workforce has a gender ratio of 75% male and 25% female, which the board considers relatively reasonable[48] - The board has a balanced mix of skills and expertise, including pulp and paper, business management, finance and accounting, mechanical design, and law[48] - The company provides necessary induction and ongoing training to directors on operations, business, and regulatory responsibilities[42] - Directors received training in 2022 by reading materials on operations, business, relevant laws, rules, regulations, and director duties[43] - The nomination committee is responsible for identifying qualified candidates for board membership and ensuring consideration of the board diversity policy[47] Risk Management and Internal Controls - The company's risk management and internal control systems were deemed effective and sufficient, with no significant issues identified during the annual review[55] - The company's internal audit and control department conducted independent assessments of the adequacy and effectiveness of risk management and internal control systems[55] - The company's risk management process includes identifying risk scope, assessing potential risks, and prioritizing them based on financial impact and operational efficiency[55] - The company's board of directors confirmed its responsibility for the preparation of the consolidated financial statements in accordance with statutory requirements and applicable accounting standards[57] - The company's website provides an "Investor Relations" section for shareholders to access published materials, announcements, and circulars[58] - The company's ESG report for 2022 covers the period from January 1, 2022, to December 31, 2022, and follows consistent disclosure methods for comparability[63] - The company's board of directors reviewed and confirmed the effective implementation of shareholder communication policies during the year[58] - The company's ESG report was prepared with input from key stakeholders and reviewed by the board to ensure accuracy and value creation[62] Employee and Workforce Management - Employee costs amounted to RMB 442.3 million in 2022, with approximately 4,200 full-time employees[29] - Total number of employees in 2022 was 4,176, with 3,127 male employees (75%) and 1,049 female employees (25%)[95] - Employee turnover rate in 2022 was 28.8% for male employees and 8.5% for female employees[96] - Employee turnover rate by age in 2022: 14.7% for employees under 30, 18.8% for employees aged 30-50, and 3.8% for employees over 50[96] - Employee turnover rate by region in 2022: 29.8% within Shandong Province and 7.5% outside Shandong Province[96] - The company provided 119,000 RMB in mutual aid funds to employees in 2022 to alleviate financial pressure[94] - The company conducted 1,521 days of work lost due to work-related injuries in 2022, compared to 1,019 days in 2021[97] - The company implemented targeted epidemic prevention measures during the Omicron outbreak, ensuring employee health and safety[98] - The company established three promotion channels for employees: management, technical, and craftsman, to encourage career development[100] - The company plans to strengthen salary management and establish a competitive and incentive-based salary system, focusing on key and core positions[100] - The company will integrate existing training resources and establish the "Sunshine Training School" to enhance employee skills and capabilities[100] - The company organized a total of 3,439 internal training sessions with 104,954 participants, including 430 senior management and 1,832 middle management participants[102] - The company conducted 4,149 hours of training, with an average of 24 hours per employee, equally distributed between male and female employees[102] - Professional skills training was provided to 31,795 participants, safety training to 31,424 participants, management training to 19,700 participants, and ideological and professional training to 22,035 participants[102] - The company's online learning platform saw a 39.23% increase in account numbers compared to 2021, with a login rate of 77.79%[103] - The company won the "Shandong Light Textile Industry Full Staff Innovation Enterprise" award and the "Shandong Light Textile Industry Model Worker and Craftsman Talent Innovation Studio" award in 2022[103] - The company strictly adheres to labor laws and regulations, with no instances of child labor or forced labor reported during the year[104] Supplier and Customer Management - The company implemented a strict supplier evaluation system, with suppliers classified as unqualified (below 60 points), qualified (60-70 points), good (70-85 points), and excellent (85 points and above)[105] - The company's supplier management includes on-site assessments, performance evaluations, and regular safety and information training to ensure sustainable partnerships[105] - The company's supplier selection process emphasizes cost-effectiveness, low carbon, green, and environmentally friendly criteria[105] - The company's supplier evaluation process involves multiple departments and includes detailed assessments of supplier qualifications, safety protocols, and performance[105] - 2022年公司新增165家供应商，完成102家供应商的现场评估[106] - 公司2022年合作供应商总数为856家，其中国内供应商占比98%，国外供应商占比2%[106] - 国内供应商中，山东本地占比42%，江浙沪占比34%，东北三省占比7%，京津地区占比3%，其他地区占比12%[106] - 公司2022年接到195宗产品及服务投诉，产品质量问题投诉率约为0.016%[108] - 公司在全国设立34个销售办事处，处理客户投诉并建立OA系统质量问题处理流程[108] - 公司取得ISO9001质量管理体系认证和FSC森林认证，2022年无因健康和安全原因导致的回收产品[107] - 公司被伊利集团授予“低碳先锋”荣誉称号，是7家获奖供应商中唯一的造纸企业[107] - 公司建立全面数据保障政策，定期进行数据备份以确保系统数据恢复[109] - 公司实施绿色采购政策，优先选择本地供应商以减少碳足迹[106] - 公司对供应商进行绩效评估，包括价格、交货、质量等方面，并实行分级管理[106] Financial Structure and Liquidity - Net current liabilities decreased to RMB 1,237.4 million in 2022 from RMB 1,730.8 million in 2021, with the current ratio improving to 0.79x from 0.71x[19] - Cash and cash equivalents increased to RMB 2,436.3 million in 2022 from RMB 2,123.1 million in 2021[19] - Inventory decreased to RMB 900.7 million in 2022 from RMB 1,088.2 million in 2021, with inventory turnover days improving to 43 days from 49 days[19] - Trade receivables increased to RMB 630.7 million in 2022 from RMB 527.7 million in 2021, with trade receivables turnover days improving to 22 days from 24 days[20] - Trade payables increased to RMB 1,108.0 million in 2022 from RMB 1,031.3 million in 2021, with trade payables turnover days improving to 47 days from 52 days[20] - Net cash generated from operating activities decreased to RMB 546.4 million in 2022 from RMB 1,067.0 million in 2021[21] - Total borrowings increased to RMB 3,823.7 million in 2022 from RMB 3,331.4 million in 2021[22] - Net gearing ratio increased to 31.4% in 2022 from 29.6% in 2021[25] - Capital expenditure decreased to RMB 337.2 million in 2022 from RMB 698.2 million in 2021[26] - The company's net current liabilities stood at RMB 1,237,377,000 as of the reporting date, with total debt obligations of RMB 4,141,128,000 due within one year[175] - The company secured an agreement to extend the maturity of bank loans amounting to RMB 692,827,000 by one year[175] - Management prepared cash flow forecasts to demonstrate sufficient working capital, with significant judgment exercised in the process[175] - The company's total debt financing included bank loans of RMB 2,978,500,000, other borrowings of RMB 803,452,000, lease liabilities of RMB 41,705,000, and discounted bill financing of RMB 1,739,953,000[175] - The expected credit loss provision for trade and other receivables was RMB 97,793,000[173] - The company's financial statements were prepared in accordance with International Financial Reporting Standards (IFRS) and comply with Hong Kong Companies Ordinance disclosure requirements[170] - The audit confirmed the accuracy of historical financial data used in management's profit and cash flow forecasts[174] - The company's liquidity and ability to continue as a going concern were identified as key audit matters due to high levels of debt financing and net current liabilities[175] Investments and Joint Ventures - The company acquired 45% equity in Top Speed Energy Holding Ltd., with profit guarantees of RMB 30 million for 2022, RMB 45 million for 2023, and RMB 54 million for 2024[31] - The target group recorded a book loss as of December 31, 2022, failing to meet 70% of the 2022 profit guarantee, triggering a buyback clause at RMB 265 million[31] - The company will issue further announcements regarding the exact difference between the 2022 actual profit and the guaranteed profit, as well as the progress of the buyback process[32] - The company's investment in the joint venture, Sunshine Prince (Shouguang) Special Paper Co., Ltd., amounted to RMB 135,729,000, with total financial interests in the joint venture reaching RMB 473,622,000, accounting for 10.7% of the company's net asset value (RMB 4,425,930,000)[173] - The joint venture recorded a loss of RMB 74,398,000 for the year, but management remains optimistic about its future profitability[173] Shareholder and Dividend Policy - The company did not recommend paying a final dividend for the fiscal year 2022[130] - The board considers sustainable returns to shareholders as one of the company's primary goals[130] - The company's dividend policy includes considerations such as financial performance, cash flow, capital requirements, and business strategy[130] - The company will not declare any dividends if it believes it will be unable to repay its debts or fulfill its obligations after payment[130] - The company repurchased a total of 1,686,000 shares at HK$0.1 per share, with a total consideration of approximately HK$3,602,620 during the 2022 fiscal year[139] - The company's distributable reserves, including retained profits, amounted to approximately RMB 171.6 million as of December 31, 2022[135] Regulatory Compliance and Auditing - The company's audit fees for the 2022 fiscal year amounted to RMB 2.1 million for audit services and RMB 0.3 million for non-audit services[54] - The company's risk management and internal control systems were deemed effective and sufficient, with no significant issues identified during the annual review[55] - The company's board of directors confirmed its responsibility for the preparation of the consolidated financial statements in accordance with statutory requirements and applicable accounting standards[57] - The company's website provides an "Investor Relations" section for shareholders to access published materials, announcements, and circulars[58] - The company's ESG report for 2022 covers the period from January 1, 2022, to December 31, 2022, and follows consistent disclosure methods for comparability[63] - The company's board of directors reviewed and confirmed the effective implementation of shareholder communication policies during the year[58] - The company's internal audit and control department conducted independent assessments of the adequacy and effectiveness of risk management and internal control systems[55] - The company's ESG report was prepared with input from key stakeholders and reviewed by the board to ensure accuracy and value creation[

Financial Performance - Revenue increased by 19.5% from approximately RMB 7,982.2 million in the fiscal year 2021 to approximately RMB 9,538.2 million in the fiscal year 2022[2] - Profit attributable to owners of the company decreased by approximately RMB 350.9 million or 63.0% to about RMB 205.7 million in the fiscal year 2022[2] - Total comprehensive income for the year was RMB 235.5 million, down from RMB 547.6 million in the previous fiscal year[4] - Gross profit was RMB 1,164.1 million, compared to RMB 1,533.7 million in the previous year, reflecting a decrease in profitability[5] - Basic and diluted earnings per share for the year were RMB 0.20, down from RMB 0.63 in the previous year[6] - The profit before tax for the year 2022 was RMB 358,879,000, a decrease from RMB 747,282,000 in 2021, indicating a decline of approximately 52%[29] - The annual profit attributable to the owners of the company was approximately RMB 205.7 million in the fiscal year 2022, a decrease of approximately RMB 350.9 million from approximately RMB 556.6 million in the fiscal year 2021[74] Assets and Liabilities - Non-current assets totaled RMB 7,359.1 million, an increase from RMB 6,876.3 million in the previous year[7] - Current assets decreased to RMB 4,745.4 million from RMB 4,151.8 million in the previous year, primarily due to a reduction in inventory[7] - Total equity attributable to owners of the company increased to RMB 4,091.9 million from RMB 3,779.7 million in the previous year[8] - Total liabilities amounted to RMB 5,882,600,000, with current liabilities netting at RMB (1,730,782,000)[20] - The net asset liability ratio increased from approximately 29.6% as of December 31, 2021, to approximately 31.4% as of December 31, 2022[80] - As of December 31, 2022, the current liabilities net amount was approximately RMB 1,237.4 million, down from approximately RMB 1,730.8 million as of December 31, 2021[77] Cash Flow and Liquidity - The company reported a net cash outflow from operating activities, indicating potential liquidity challenges[9] - Net cash generated from operating activities was approximately RMB 546.4 million in the fiscal year 2022, down from approximately RMB 1,067.0 million in the fiscal year 2021[79] - The company maintains a strong liquidity position with a net current liability of approximately RMB 1,237,377,000 as of December 31, 2022[23] Revenue Segmentation - The revenue from external customers for paper products was RMB 9,133,329,000, with the largest segment being coated white cardboard at RMB 2,368,916,000[27] - The total revenue from paper sales was approximately RMB 9,133.3 million, accounting for 95.8% of total revenue in the fiscal year 2022[71] - The total revenue from the electricity and steam segment was RMB 404,900,000 for 2022, compared to RMB 297,685,000 in 2021, marking an increase of approximately 36%[27] Expenses and Costs - Sales cost for the fiscal year 2022 was approximately RMB 8,374.1 million, up from approximately RMB 6,448.5 million in the fiscal year 2021, leading to a decrease in gross profit and gross margin[69] - Employee costs for the fiscal year 2022 amounted to approximately RMB 442.3 million, with around 4,200 full-time employees in China and Hong Kong as of December 31, 2022[83] - The total employee costs, including directors' remuneration, decreased to RMB 442,271,000 in 2022 from RMB 506,095,000 in 2021, a decline of about 12.6%[37] Investments and Acquisitions - The company acquired 98% of Renhe Company, with the fair value of identifiable net assets and goodwill temporarily determined[18] - The company acquired a 45% stake in Top Speed Energy Holding Limited, which has become an associate company, through the issuance of 115,652,359 shares valued at approximately HKD 269.35 million and a cash payment of RMB 100 million[63] Regulatory and Accounting Standards - The amendments to IFRS 3, effective for business combinations occurring on or after January 1, 2022, do not impact the consolidated financial statements as of December 31, 2022[13] - The amendments to IAS 16 prohibit entities from deducting proceeds from the sale of items produced before the asset is ready for its intended use from the cost of property, plant, and equipment[14] - The company expects to adopt all new and revised IFRS standards upon their effective dates, with no significant impact anticipated on the consolidated financial statements[17] Future Outlook and Strategy - The company plans to enhance its market share in existing major products while promoting specialty paper and biological mechanical pulp in 2023[66] - The company aims to optimize its product structure and improve profitability through continuous process optimization and digitalization[66] - The company has successfully launched its first-phase biological mechanical pulp project, which has entered the capacity ramp-up stage[67] Shareholder Actions - The company did not recommend the payment of a final dividend for the year ended December 31, 2022, compared to a final dividend of HKD 0.065 per share in 2021[38] - The company repurchased a total of 1,686,000 shares at a total cost of approximately HKD 3,602,620 during the fiscal year 2022[84]

n un China Sunshine Paper Holdings Company Limited 中國陽光紙業控股有限公司* (於開曼群島註冊成立的有限公司) 股份代號: 2002 年報 2020 "佳供能別 目錄 主要產品 02 04 公司資料 主席報告 08 管理層討論及分析 12 20 企業管治報告 環境、社會及管治報告書 28 39 審核委員會報告 董事及高級管理層 41 董事會報告 46 61 獨立核數師報告 綜合損益及其他全面收益表 67 68 綜合財務狀況表 綜合權益變動表 70 綜合現金流量表 71 綜合財務報表附註 財務概要 73 152 主要產品 白面牛卡紙用作提供瓦楞芯紙的外部面層。此 乃板紙與呈波浪紋的瓦楞芯紙的結合，構成紙 板的堅韌結構及環壓強度。白面牛卡紙一般用 作需精美印刷及環壓強度的箱子的包裝材料。 2020年報 中國陽光紙業控股有限公司 02 塗布白面牛卡紙為一種將塗料塗佈到已漂白 上層組成的多層紙張構成的白面牛卡紙。該塗 料使白面牛卡紙色澤更鮮明及更有光澤，令印 刷更優質，同時具備一流的輸墨質素。輕塗白 面牛卡紙的塗布層遠較傳統塗布白板紙的塗 布層為薄，故被認為更環保。 ...

Financial Performance - In the fiscal year 2018, the company achieved a sales volume of approximately 1.26 million tons of packaging products, an increase from 1.22 million tons in 2017[19]. - The total revenue for the fiscal year 2018 rose to approximately RMB 6,585.7 million, representing an increase of RMB 803.8 million or 13.9% from RMB 5,781.9 million in 2017[29]. - The sales of paper products recorded a growth of 14.2% compared to the previous year, contributing significantly to the total revenue[29]. - Total revenue for the fiscal year 2018 was approximately RMB 6,585.7 million, an increase from RMB 5,781.9 million in 2017, representing a growth of about 13.9%[32]. - Sales cost for fiscal year 2018 was approximately RMB 5,493.9 million, up from RMB 4,534.6 million in 2017, aligning with the overall revenue growth[34]. - Gross profit decreased from approximately RMB 1,247.2 million in 2017 to about RMB 1,091.8 million in 2018, with a gross margin of 16.6%, down from 21.6% in the previous year, a decline of 5.0 percentage points[35]. - Other income for fiscal year 2018 was approximately RMB 246.4 million, compared to RMB 167.1 million in 2017, with government grants contributing RMB 204.5 million[36]. - The net profit attributable to the owners for fiscal year 2018 was approximately RMB 333.0 million, a decrease of about RMB 63.0 million from RMB 396.0 million in 2017[40]. - Operating cash flow for fiscal year 2018 was approximately RMB 1,030.5 million, significantly up from RMB 236.1 million in 2017[45]. - Capital expenditure for fiscal year 2018 was approximately RMB 494.1 million, primarily for the acquisition of new corrugated paper production line equipment and land[47]. Corporate Governance - The board of directors consists of nine members, including five executive directors, one non-executive director, and three independent non-executive directors[60]. - The company held four board meetings and one annual general meeting during the fiscal year 2018[66]. - The company has committed to high standards of corporate governance and has adhered to all provisions of the corporate governance code during the fiscal year 2018[56]. - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and compliance with international financial reporting standards[119]. - In the fiscal year 2018, the audit committee held two meetings with full attendance from all members[121]. - The company has confirmed the independence of all non-executive directors as of December 31, 2018[168]. - The company has established service contracts for its directors, with terms generally lasting three years, subject to termination conditions[169]. - The company has not engaged in any significant transactions or contracts involving directors or related entities during the fiscal year[174]. Environmental Commitment - The company will continue to strengthen its green and environmentally friendly paper-making philosophy, focusing on energy conservation and emission reduction[25]. - The company has achieved an 80% wastewater reuse rate, utilizing advanced wastewater treatment technology[92]. - The group has constructed four fully enclosed ash storage facilities and two fully enclosed slag storage facilities to improve working conditions and protect the surrounding environment[99]. - The company adheres to high environmental protection standards, with all environmental indicators exceeding national standards[89]. - The group actively implements green paper-making practices, focusing on the use of recycled paper as the main raw material[89]. - The group has achieved comprehensive utilization of solid waste generated during the paper production process, with all sludge transported to a subsidiary for co-firing with coal, providing steam and electricity for production[101]. - The group continues to implement paper-saving measures, such as promoting paperless offices and double-sided printing, effectively saving energy through the recycling of office paper[102]. - The group has established an energy management system and optimized energy systems for high-energy-consuming equipment, aiming to reduce water and electricity consumption[103]. - The main raw material for the group's products is waste paper, significantly reducing deforestation and environmental pollution, thus lowering environmental pressure[104]. - The group has invested in low-noise and low-energy equipment during project construction, ensuring compliance with noise emission standards and reducing impact on surrounding residents[106]. Employee and Community Engagement - The group strictly adheres to the Labor Law of the People's Republic of China in recruitment and employment, ensuring fair compensation and benefits for employees[107]. - The group provides equal opportunities in recruitment, training, and promotion, with no discrimination based on gender, race, or other prohibited factors[108]. - The group has implemented a comprehensive health and safety program, providing annual health checks and safety training for employees[111]. - The group has established a mutual aid fund and union organization to represent the interests of grassroots employees[109]. - The company emphasizes customer-centric principles, ensuring high-quality products through strict quality management and testing processes[116]. - The company actively engages with local communities, providing internship opportunities and contributing to local economic development[117]. Shareholder Information - The company reported a proposed final dividend of 4.0 HKD cents per share for the fiscal year 2018, down from 7.0 HKD cents in 2017[147]. - The company has adopted a dividend policy that considers various factors such as financial performance, cash flow, and future operational plans when declaring dividends[148]. - The company will not declare dividends if it believes it cannot meet its debt obligations after payment[148]. - The company’s shareholding structure includes significant control by China Sunrise, holding 321,687,052 shares, representing approximately 39.26% of total shares[178]. - The maximum number of shares that can be issued under the 2018 Share Option Scheme is capped at 81,936,200 shares, representing approximately 10% of the total issued shares as of the adoption date[184]. - The company must seek shareholder approval if the total number of shares issued due to the exercise of options exceeds 30% of the total issued shares at any time[184]. - The 2018 Share Option Scheme aims to incentivize qualified individuals to contribute to the group's performance and success[181]. - The 2018 Share Option Scheme allows the board to grant options to eligible persons for a period of 10 years from the adoption date, with no minimum holding period required before exercising the options[186]. - The board has the discretion to impose conditions on the share options granted, including performance and financial targets[188]. Risk Management - The board confirmed its overall responsibility for the effectiveness of the group's risk management and internal control systems, with no significant issues found during the 2018 fiscal year review[82]. - The group has established a risk management manual to clarify the responsibilities of management, the board, and the audit committee in risk management[87]. - The company faces business risks due to economic downturn pressures in China and price competition within the industry, which may affect sales and gross margin performance[153].