香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 PanAsialum Holdings Company Limited 榮陽實業集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2078） 盈利警告 轉盈為虧 本 公 告 乃 榮 陽 實 業 集 團 有 限 公 司（「本公司」，連 同 其 附 屬 公 司，統 稱 為「本集團」） 根 據 香 港 聯 合 交 易 所 有 限 公 司 證 券 上 市 規 則（「上市規則」）第13.09條以及香港法 例 第571章證券及期貨條例第XIVA部 項 下 內 幕 消 息 條 文（定 義 見 上 市 規 則）而 作 出。 – 1 – 由於本公司仍正在落實本集團截至二零二五年六月三十日止六個月之綜合中 期 業 績，於 本 公 告 內 所 載 的 資 料 僅 以 董 事 會 目 前 所 得 資 料 以 及 董 事 會 對 本 集 團截至二零二五年六月三十日 ...

Group 1 - Apple-related stocks showed strong performance, with Rongyang Industrial (02078.HK) rising over 6% [1] - Weishi Jiajie (00856.HK) increased by more than 5% [1] - Sunny Optical Technology (02382.HK) saw a nearly 4% rise [1] Group 2 - Other companies such as Qiu Tai Technology (01478.HK) and BYD Electronics (00285.HK) also experienced gains [1]

Financial Performance - Revenue for the year ended December 31, 2024, was HK$917,179,000, a decrease of 11.5% from HK$1,036,675,000 in 2023[12] - Gross profit for the same period was HK$164,240,000, resulting in a gross profit margin of 17.9%, up from 15.8% in 2023[12] - EBITDA decreased to HK$68,731,000 from HK$87,751,000, reflecting the challenging market conditions[12] - Profit for the year from continuing operations was HK$28,081,000, slightly up from HK$27,299,000 in 2023[12] - Profit per share attributable to owners of the company was 2.3 HK cents, down from 2.4 HK cents in 2023[12] - The profit attributable to owners of the Company amounted to approximately HK$28.1 million, a decrease of 0.3% compared to 2023[34] - Revenue from Solar Panels was approximately HK$630.9 million, accounting for 68.8% of total revenue, with a decrease of 5.1% compared to 2023[40] - Revenue from Consumer Electronics decreased by 56.0% to approximately HK$63.6 million, while revenue from Electric Vehicles increased by 10.7% to approximately HK$133.2 million[40] - Overall revenue decreased by approximately 29.1% in China and 4.8% in Vietnam, attributed to weak demand for electronic consumer products and a decline in solar frame orders, respectively[49] Cost and Expenses - The Group's cost of sales shrank by 13.7% from approximately HK$872.9 million in 2023 to approximately HK$752.9 million in 2024[46] - Distribution and selling expenses decreased to approximately HK$25.7 million from approximately HK$30.6 million, primarily due to reduced transportation costs and sales commissions[48][52] - Administrative expenses decreased to approximately HK$148.0 million from approximately HK$197.0 million, mainly due to reduced impairment losses on properties and fixed assets[53][58] - Other income significantly decreased from approximately HK$36.1 million to approximately HK$4.9 million, primarily due to a reduction in customs refunds and gains from the write-back of other payables[54][59] - Finance income increased to approximately HK$16.8 million from approximately HK$3.5 million, reflecting improved cash flow management and higher interest earnings from bank deposits[57][61] - Finance costs decreased to approximately HK$9.6 million from approximately HK$13.1 million, due to successful refinancing of higher interest rate loans[62][66] Liquidity and Financial Position - The current ratio decreased to 1.21 from 1.80 in the previous year, indicating a tighter liquidity position[12] - As of December 31, 2024, the Group's cash and cash equivalents increased to approximately HK$291.0 million from HK$226.2 million as of December 31, 2023[73] - Pledged assets amounted to approximately HK$305.9 million as of December 31, 2024, up from approximately HK$206.6 million as of December 31, 2023[80] - The Group's interest-bearing borrowings decreased to approximately HK$251.6 million as of December 31, 2024, down from approximately HK$210.6 million as of December 31, 2023[73] - Interest coverage ratio increased to 1.92 in 2024 from 1.27 in 2023[84] Strategic Initiatives - The company established a new subsidiary in Thailand in 2024 to diversify and strengthen its global footprint[16] - The company aims to assess global expansion opportunities to mitigate business and geopolitical risks[16] - The Group anticipates ongoing trade tensions and the cancellation of export tax rebates to present short to mid-term challenges, but these will accelerate strategic transformation[23] - The Group is committed to enhancing competitiveness through advancements in technical know-how, research and development, and innovation[23] Environmental, Social, and Governance (ESG) - The company is committed to reducing carbon emissions and optimizing resource utilization as part of its ESG responsibilities[17] - The Company is committed to sustainable development and has implemented measures to control emissions, including wastewater and exhaust gas management[141] - The Nanyang plant has adopted the "Emission and Control Procedure for Waste Water, Exhaust Gas and Noise Pollution" to mitigate environmental impacts[141] - The Company has developed "Control Procedures for the Disposal of Hazardous Wastes" to manage environmental pollution from disposed wastes[142] - The Company is committed to integrating environmental management and social care into its business decisions[142] Compliance and Risk Management - The Company recognizes the importance of compliance with regulatory requirements, ensuring adherence to laws in Hong Kong, Cayman Islands, and the PRC[150] - The Board is responsible for ensuring compliance with laws that significantly impact the Company[151] - The Company has implemented measures to mitigate legal risks, including contract approval procedures and regular third-party audits[177] - Environmental and social risks are managed through monitoring and control of emissions and compliance with safety and environmental standards[176] - Legal risks involve potential disputes and compliance issues, with measures in place for contract reviews and third-party audits to mitigate impacts[173] Human Resources - The Company emphasizes the value of human resources, providing a safe working environment and competitive remuneration packages to retain talent[153] - The Company has a key performance index evaluation program to incentivize employee performance and promote career development[153] - The Group employed approximately 721 staff as of December 31, 2024, a decrease from approximately 779 staff in the previous year[98] - Staff costs, including Directors' emoluments, amounted to approximately HK$86.9 million for the year, up from approximately HK$74.5 million for the year ended December 31, 2023[98] Dividend Policy - The Board does not recommend the payment of a final dividend for the Year 2024[90] - The dividend distribution will depend on the Company's earnings, financial condition, and other relevant factors, subject to shareholder approval[174] - No interim dividend was declared for the six months ended June 30, 2024, and no final dividend is recommended for the year ended December 31, 2023[181] - The company had no retained profit available for distribution to shareholders as of December 31, 2024 and 2023, but has a share premium account of HK$1,001,287,000 available for distribution subject to solvency test[184] Share Options - The company's share option scheme expired on January 18, 2023, and no options are available for grant under the scheme as of January 1, 2024[194] - Total number of share options as of December 31, 2024, is 21,232,000, down from 21,632,000 at the beginning of the year, reflecting a decrease of 400,000 options due to lapses[199] - The exercise price for all share options granted is HKD 0.396, with the exercise period spanning from December 23, 2019, to December 22, 2029[199] - Directors hold a total of 2,400,000 share options, which remain unchanged throughout the year[199] - Employees hold 8,032,000 share options after a reduction of 400,000 due to lapses during the year[199] - Service providers maintain a total of 10,800,000 share options, with no changes during the year[199] - The total number of options exercised during the year is also zero, suggesting no options were exercised[199] - The total number of options lapsed during the year is 400,000, indicating a 1.85% lapse rate from the total options[199] - The share option scheme is designed to incentivize directors, employees, and service providers, aligning their interests with the company's performance[199]

Financial Performance - Revenue for the year ended December 31, 2024, was HKD 917,179,000, a decrease of 11.5% compared to HKD 1,036,675,000 in 2023[2] - Gross profit for the same period was HKD 164,240,000, showing a slight increase of 0.3% from HKD 163,782,000[2] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased by 21.7% to HKD 68,731,000 from HKD 87,751,000[2] - Profit attributable to owners of the company was HKD 28,081,000, a marginal increase of 2.9% from HKD 27,299,000 in the previous year[2] - Basic and diluted earnings per share for continuing operations remained stable at HKD 2.3, while for discontinued operations it dropped to zero from HKD 0.1[2] - The company reported a total comprehensive income of HKD 10,857,000 for the year, compared to HKD 5,013,000 in 2023[5] - The group reported a profit attributable to owners of the company of approximately HKD 28.1 million for the fiscal year ending December 31, 2024, a slight decrease of 0.3% compared to HKD 28.2 million for the fiscal year ending December 31, 2023[47] Assets and Liabilities - Total assets as of December 31, 2024, were HKD 1,414,029,000, a slight decrease from HKD 1,431,519,000 in 2023[6] - Current assets decreased to HKD 807,408,000 from HKD 774,114,000, with cash and cash equivalents increasing to HKD 290,996,000 from HKD 226,239,000[6] - Total liabilities decreased from HKD 710,476,000 to HKD 682,129,000, representing a reduction of approximately 4.8% year-over-year[7] - Current liabilities increased to HKD 667,358,000 from HKD 429,467,000, indicating a significant rise of approximately 55.5%[7] - The total equity and liabilities amounted to HKD 1,414,029,000, slightly down from HKD 1,431,519,000, reflecting a decrease of about 1.2%[7] - The total report segment assets for aluminum products as of December 31, 2024, were HKD 1,378,514,000, down from HKD 1,421,812,000 as of December 31, 2023, representing a decrease of about 3.0%[23][24] - The total report segment liabilities for aluminum products decreased to HKD 657,618,000 as of December 31, 2024, from HKD 702,269,000 as of December 31, 2023, indicating a reduction of approximately 6.3%[25] Market and Operational Insights - The company plans to focus on market expansion and new product development in the upcoming fiscal year[3] - Revenue from the Chinese market decreased to HKD 230,713,000 in 2024 from HKD 325,302,000 in 2023, representing a decline of 29.0%[26] - Revenue from solar frame products was approximately HKD 630.9 million, accounting for about 68.8% of total revenue, while revenue from electronic consumer products decreased by 56.0%[48] - The group anticipates continued challenges in the economic environment, characterized by weak domestic demand and overall industry oversupply[46] - The group anticipates ongoing challenges due to trade tensions and the removal of export tax rebates, which will accelerate strategic transformation and innovation development[58] Expenses and Costs - Research and development expenses for the year ending December 31, 2024, were HKD 45,779,000, compared to HKD 43,867,000 for the previous year, showing an increase of about 4.3%[21][22] - The group’s selling costs decreased by 13.7% to approximately HKD 752.9 million for the fiscal year ending December 31, 2024, down from HKD 872.9 million for the fiscal year ending December 31, 2023[49] - The group’s distribution and selling expenses decreased to approximately HKD 25.7 million for the fiscal year ending December 31, 2024, down from HKD 30.6 million for the fiscal year ending December 31, 2023[51] - Administrative expenses decreased from approximately HKD 197.0 million to about HKD 148.0 million, primarily due to reduced impairment losses on properties, plants, and equipment by approximately HKD 13.3 million and HKD 12.2 million respectively[52] Financial Management - Financial income increased from approximately HKD 3.5 million to about HKD 16.8 million, reflecting improved cash flow management and increased interest income from bank deposits[55] - Financial costs decreased from approximately HKD 13.1 million to about HKD 9.6 million, attributed to refinancing high-interest bank loans at more favorable rates[56] - Income tax credits decreased from approximately HKD 24.7 million to about HKD 19.2 million, primarily due to the exemption from income tax in China[57] - The interest coverage ratio increased to 1.92 for the year ended December 31, 2024, up from 1.27 in the previous year[66] Employee and Corporate Governance - Employee costs for the year amounted to approximately HKD 86.9 million, compared to HKD 74.5 million for the year ended December 31, 2023[76] - The company employed approximately 721 employees as of December 31, 2024, down from 779 employees in the previous year[76] - The board of directors does not recommend the payment of a final dividend for the year 2024, compared to no dividend in 2023[73] - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[83] Strategic Developments - The company has no plans for significant future investments or acquisitions of capital assets beyond those disclosed in the "Outlook and Prospects" section[74] - A lease agreement was signed for a factory facility in Thailand with a total area of 15,480 square meters, with a rental rate of THB 2,941,200 per month[61] - The company has appointed Mr. Pan Zhaolong as both Chairman and CEO since July 1, 2022, to enhance decision-making efficiency[81]

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 433.9 million, a decrease of 9.4% compared to HKD 479.0 million in the same period of 2023[5]. - Gross profit increased to HKD 74.6 million, representing a growth of 4.8% from HKD 71.2 million year-on-year, with a gross margin of 17.2% compared to 14.9% in the previous year[5]. - Profit from continuing operations for the period was HKD 5.9 million, a significant increase of 275.1% from HKD 1.6 million in the prior year[5]. - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was HKD 35.3 million, down 11.9% from HKD 40.0 million in the same period last year[5]. - Earnings per share from continuing operations rose to HKD 0.49, compared to HKD 0.13 in the previous year[5]. - The company reported a basic and diluted earnings per share of HKD 0.49 for the period, up from HKD 0.04 in the previous year[14]. - The group reported a profit from continuing operations before tax of approximately HKD 5,896,000 for the six months ended June 30, 2024, compared to HKD 1,572,000 for the same period in 2023[71]. - The group’s net profit attributable to shareholders was approximately HK$5.9 million, a significant increase of about 1,103.3% compared to the same period in 2023[79]. Liquidity and Financial Ratios - Current ratio as of June 30, 2024, was 1.22, down from 1.80 at the end of 2023, indicating a decrease in short-term liquidity[6]. - Quick ratio also decreased to 1.12 from 1.58, reflecting a decline in immediate liquidity[6]. - Interest coverage ratio increased to 2.03, compared to 0.22 in the previous year, indicating better ability to cover interest expenses[5]. - Cash and cash equivalents rose significantly to HKD 420,812,000, compared to HKD 226,239,000 at the end of 2023, indicating improved liquidity[13]. - The total cash and cash equivalents at the end of the period increased to HKD 420,812,000, up from HKD 197,933,000 at the end of June 2023[20]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 1,454,521,000, a slight increase from HKD 1,431,519,000 at the end of 2023[13]. - Total liabilities increased to HKD 733,277,000 from HKD 710,476,000, reflecting a rise of 3.2%[13]. - The total equity attributable to the owners of the company increased to HKD 721,244,000 from HKD 721,043,000, showing stability in shareholder equity[13]. - The company reported total borrowings of HKD 272,387,000 as of June 30, 2024, an increase of 29.3% from HKD 210,603,000 as of December 31, 2023[53]. - The company has a current tax liability of HKD 301,064,000 as of June 30, 2024, compared to HKD 88,425,000 as of December 31, 2023, indicating a significant increase[57]. Segment Performance - For the six months ended June 30, 2024, the reportable segment revenue for aluminum products was HKD 433,942,000, a decrease of 9.4% compared to HKD 478,976,000 for the same period in 2023[36][42]. - The adjusted profit before tax for the aluminum products segment was HKD 21,676,000 for the six months ended June 30, 2024, representing a significant increase from HKD 10,304,000 in the prior year, marking a growth of 110.5%[36][38]. - Revenue from Vietnam remained stable at HKD 287,550,000 for the six months ended June 30, 2024, compared to HKD 287,736,000 in the same period of 2023[42]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 109,742,000, a decrease of 44.7% compared to HKD 198,983,000 for the same period in 2023[20]. - The net cash used in investing activities was HKD 31,153,000, compared to a net cash outflow of HKD 416,000 in the previous year[20]. - The net cash generated from financing activities was HKD 56,514,000, a significant improvement from a net cash outflow of HKD 62,588,000 in the prior year[20]. Shareholder Information - The company has issued a total of 1,200,000,000 ordinary shares as of June 30, 2024, unchanged from December 31, 2023[50]. - Easy Star Holdings Limited holds 900,000,000 shares, accounting for 75% of the company's issued share capital as of June 30, 2024[130]. - The average number of ordinary shares in issue remained stable at 1,199,405,000 shares for both periods[71]. Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code as per the listing rules, with the exception of the chairman and CEO roles being held by the same individual since July 1, 2022[133]. - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group[136]. - The interim financial statements for the period have been reviewed by the audit committee but remain unaudited[137]. Future Outlook - In the second half of 2024, the company expects a more stable environment due to ongoing market rationalization, which will drive profit improvement across product segments[94]. - The company aims to enhance global supply chain capabilities to address global tensions and regulatory issues, thereby strengthening its position in overseas markets[94]. - The company remains committed to achieving strategic goals and continuously seeks growth and profit opportunities[94].

Financial Performance - For the six months ended June 30, 2024, the revenue was HKD 433.9 million, a decrease of 9.4% compared to HKD 479.0 million for the same period in 2023[1]. - The gross profit for the same period was HKD 74.6 million, an increase of 4.8% from HKD 71.2 million in 2023, resulting in a gross margin of 17.2%, up 2.3 percentage points from 14.9%[1]. - The profit attributable to owners of the company was HKD 5.9 million, significantly higher than HKD 0.5 million in the same period of 2023[1]. - Basic earnings per share for the six months ended June 30, 2024, was HKD 0.49, compared to HKD 0.04 for the same period in 2023[1]. - The group reported a loss from the sale of property, plant, and equipment amounting to HKD 782,000 for the six months ended June 30, 2024, significantly lower than HKD 27,876,000 for the same period in 2023[28]. - Employee benefits expenses, including salaries and wages, decreased to HKD 34,138,000 for the six months ended June 30, 2024, down from HKD 39,045,000 in the previous year, representing a decline of approximately 12.3%[28]. - The cost of inventories recognized as an expense was HKD 359,320,000 for the six months ended June 30, 2024, compared to HKD 407,776,000 for the same period in 2023, reflecting a decrease of about 11.9%[28]. - The group’s total financial costs for the six months ending June 30, 2024, were HKD 5,735,000, down from HKD 8,090,000 in the previous year[33]. Assets and Liabilities - Total assets as of June 30, 2024, were HKD 1,454.5 million, compared to HKD 1,431.5 million as of December 31, 2023[2]. - Total liabilities increased to HKD 733.3 million as of June 30, 2024, from HKD 710.5 million as of December 31, 2023[3]. - The company reported cash and cash equivalents of HKD 420.8 million, up from HKD 226.2 million at the end of 2023[2]. - Trade receivables decreased to HKD 160.2 million from HKD 223.1 million in the previous period[2]. - As of June 30, 2024, the company's total borrowings amounted to HKD 272,387,000, an increase from HKD 210,603,000 as of December 31, 2023, reflecting a growth of approximately 29.3%[26]. - Trade payables and notes payable totaled HKD 42,882,000 as of June 30, 2024, compared to HKD 65,896,000 as of December 31, 2023, indicating a reduction of approximately 34.9%[27]. - The group has pledged assets totaling approximately HKD 260.2 million as collateral for loans, compared to HKD 206.6 million on December 31, 2023[60]. Financial Risk Management - The company faces commodity price risk due to aluminum ingots being a major raw material, with price fluctuations potentially impacting financial performance[13]. - The company has entered into futures contracts traded on the Shanghai Futures Exchange to mitigate risks associated with aluminum price volatility[13]. - The financial risk management policies have not changed since the last fiscal year-end, with no significant changes in financial liabilities compared to the previous year[11][12]. - The company does not face significant equity price risk and has maintained its risk management policies[11]. - The unaudited interim financial statements do not include all financial risk management information required for the full-year financial statements[11]. Corporate Governance - The company maintains high standards of corporate governance, with the chairman and CEO roles currently held by the same individual, Mr. Pan Zhaolong, since July 1, 2022[71]. - The audit committee, composed of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group[73]. - The interim financial statements for the period have been reviewed by the audit committee but remain unaudited[74]. Operational Insights - The company primarily engages in the production and trading of aluminum products, registered in the Cayman Islands since October 7, 2005[8]. - The shares of the company have been listed on the Hong Kong Stock Exchange since February 5, 2013[8]. - The group aims to enhance operational capabilities and explore new growth opportunities in 2024, focusing on global supply chain resilience[58]. - The group plans to utilize data analytics and customer insights to improve sales processes and deepen customer relationships[58]. - The group has no significant investments, acquisitions, or sales of subsidiaries during the reporting period[65]. - The group has no contingent liabilities as of June 30, 2024[64]. - The group has not declared an interim dividend for the period[69]. Other Financial Information - The group recorded a foreign exchange gain of HKD 1,537,000 for the six months ending June 30, 2024, compared to a loss of HKD 7,000 in the same period last year[32]. - The group’s operations in China are subject to a corporate income tax rate of 25%, with one subsidiary qualifying for a reduced rate of 15% for three years[34]. - The company did not declare any dividends for the six months ending June 30, 2024, and June 30, 2023[37]. - The group has no plans for significant future investments or capital asset purchases beyond those disclosed in the outlook section[66].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 1,036,675, a decrease of approximately 574.5 million HKD compared to HKD 1,611,202 in 2022[8]. - Gross profit for the same period was HKD 163,782, down from HKD 223,032 in 2022, resulting in a gross margin increase from 13.8% to 15.8%[8][12]. - The company reported a net profit from continuing operations of HKD 27,299, a turnaround from a loss of HKD 51,612 in the previous year[8][12]. - Basic and diluted earnings per share improved to HKD 2.4 from a loss of HKD 8.7 in the previous year[8]. - The group's revenue for the year ended December 31, 2023, was approximately HKD 1,036.7 million, a decrease of about 35.7% compared to the previous year[24]. - The overall sales volume for the year was approximately 34,724 tons, representing a year-on-year decrease of 29.0%[24]. - The gross profit for the year was approximately HKD 163.8 million, down from HKD 223.0 million in the previous year, while the gross margin increased to approximately 15.8% from 13.8%[38]. - The company recorded a net profit attributable to shareholders of approximately HKD 28.2 million, a significant improvement from a net loss of HKD 104.6 million in the previous year, reflecting an increase of 126.9%[24]. - The cost of sales decreased by 37.1% to approximately HKD 872.9 million, primarily due to a decline in sales volume and effective cost control measures[37]. - The group recorded a profit before tax from continuing operations of approximately HKD 2.6 million, compared to a loss of HKD 65.0 million in the previous year[48]. Cash Flow and Financial Position - Operating cash flow significantly increased from HKD 168.4 million in 2022 to HKD 226.8 million in 2023[12]. - The current net asset value stands at HKD 721,043, slightly up from HKD 716,030 in 2022[8]. - As of December 31, 2023, the company had cash and cash equivalents of approximately HKD 226.2 million, an increase from HKD 73.7 million as of December 31, 2022[60]. - The company's interest-bearing borrowings decreased to approximately HKD 210.6 million from HKD 394.0 million as of December 31, 2022, reflecting improved credit management and debt restructuring strategies[60]. - The current ratio increased to 1.80 from 1.53 year-on-year, indicating improved liquidity[63]. - The tax credit increased from approximately HKD 13.4 million for the year ended December 31, 2022, to about HKD 24.7 million for the current year[50]. Strategic Initiatives and Outlook - The company adjusted its strategy by divesting two subsidiaries and optimizing production processes to enhance resilience against external risks[14]. - Future outlook indicates confidence in aluminum market growth, with expectations of rising demand across all major end-use industries[19]. - The company is committed to sustainable development and enhancing operational efficiency while pursuing strategic growth opportunities[19]. - Investment in technology and innovation will continue to drive excellence and market leadership in the aluminum industry[18]. Risk Management and Compliance - The company has not entered into any agreements to hedge foreign exchange risks, which may impact performance due to fluctuations in the USD to RMB exchange rate[69]. - The management believes that long-term fluctuations in aluminum commodity prices will not have a significant impact on the group's profitability and cash flow[70]. - The group has established futures contracts on the Shanghai Futures Exchange to mitigate risks associated with aluminum price fluctuations[70]. - The company has implemented a phased network risk vulnerability control management plan to enhance cybersecurity measures[115]. - The company is focused on compliance with environmental and safety standards in its production processes to mitigate environmental and social risks[120]. Corporate Governance - The company has a robust governance structure with independent non-executive directors overseeing key committees[87][90]. - The audit committee consists of three independent non-executive directors, ensuring oversight of the company's financial reporting and internal controls[194]. - The company is committed to maintaining a high level of corporate governance, which is deemed essential for success and enhancing shareholder value[200]. - The roles of Chairman and CEO have been held by the same individual since July 1, 2022, which is a deviation from the corporate governance code[200]. - The board believes that the current structure does not impair the balance of power between the board and management, allowing for swift and efficient decision-making[200]. Employee and Operational Insights - The group employed approximately 842 employees as of December 31, 2023, down from approximately 1,179 employees a year earlier, with total employee costs for the year amounting to approximately HKD 74.5 million, compared to approximately HKD 115.4 million for the previous year[78]. - The company emphasizes employee development and training as key to its continuous improvement and business growth[112]. - The company is committed to maintaining strong relationships with suppliers, ensuring their values align with the company's quality and ethical standards[112]. Environmental and Social Responsibility - The company emphasizes sustainable development and has implemented various environmental control procedures to minimize operational emissions[101]. - The company has established a waste control program to mitigate environmental pollution and complies with national energy-saving regulations[101]. - The company is focused on exploring sustainable operational models that integrate environmental management and social responsibility into business decisions[101]. Shareholder Information - The board did not recommend the payment of a final dividend for the year, consistent with the previous year[75]. - The company has zero distributable reserves as of December 31, 2023, compared to none as of December 31, 2022[132]. - The company has a share award scheme in place since March 3, 2014, allowing the board to grant shares to eligible employees without a maximum limit on the number of shares awarded[143][146].

Financial Performance - For the year ended December 31, 2023, the revenue from continuing operations was HKD 1,036,675, a decrease of 35.7% compared to HKD 1,611,202 in 2022[2] - The gross profit for the same period was HKD 163,782, down 26.6% from HKD 223,032 in the previous year[2] - The profit attributable to the owners of the company from continuing operations was HKD 27,299, a significant recovery from a loss of HKD 51,612 in 2022[2] - Basic and diluted earnings per share from continuing operations were HKD 2.3, compared to a loss of HKD 4.3 per share in the prior year[2] - Total comprehensive income for the year was HKD 5,013, recovering from a loss of HKD 197,503 in 2022[6] - The group achieved a profit before tax of HKD 12,883,000 from continuing operations in the aluminum segment, compared to a loss of HKD 56,430,000 in the previous year[30] - The group reported a total loss from discontinued operations of HKD 864,000 for the year ended December 31, 2023[28] - The total loss from discontinued operations for the year ended December 31, 2023, was HKD 2,580,000, a significant improvement from a loss of HKD 53,011,000 in 2022[53] - The pre-tax profit from continuing operations for the year ended December 31, 2023, was HKD 27,299,000, compared to a loss of HKD 51,612,000 in 2022[56] - The group recorded a profit before tax from continuing operations of approximately HKD 2.6 million, compared to a loss of approximately HKD 65.0 million for the year ended December 31, 2022[76] Assets and Liabilities - The total assets as of December 31, 2023, were HKD 1,431,519, down from HKD 1,684,003 in 2022[8] - Total liabilities decreased from HKD 967,973,000 in 2022 to HKD 710,476,000 in 2023, representing a reduction of approximately 26.5%[10] - Non-current liabilities decreased from HKD 494,345,000 in 2022 to HKD 281,009,000 in 2023, a decline of about 43.2%[10] - Current liabilities decreased from HKD 473,628,000 in 2022 to HKD 429,467,000 in 2023, showing a decrease of approximately 9.3%[10] - The total equity and liabilities amounted to HKD 1,431,519,000 in 2023, down from HKD 1,684,003,000 in 2022, indicating a decrease of around 15.0%[10] - The company’s total equity attributable to owners was HKD 721,043, slightly up from HKD 716,030 in the previous year[8] - The group’s total borrowings were approximately HKD 210.6 million as of December 31, 2023, a decrease from HKD 394.0 million as of December 31, 2022[88] - The group had total assets pledged of approximately HKD 179.0 million as of December 31, 2023, down from HKD 322.7 million as of December 31, 2022[89] Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 226,239 from HKD 73,665 in the previous year, indicating improved liquidity[8] - The group reported a net exchange gain for the year ended December 31, 2023, was HKD 28,000, a significant decrease from HKD 3,613,000 in 2022[45] - Financial income increased to approximately HKD 3.5 million from approximately HKD 0.7 million, reflecting improved cash flow management[73] Revenue Breakdown - Revenue for the year was approximately HKD 1,036.7 million, a decrease of about 35.7% compared to approximately HKD 1,611.2 million for the year ended December 31, 2022[62] - Revenue from solar frames, electronic consumer products, industrial products, and electric vehicles was approximately HKD 664.7 million, HKD 144.5 million, HKD 107.2 million, and HKD 120.3 million, accounting for 64.1%, 13.9%, 10.4%, and 11.6% of total revenue respectively[63] - The group's total sales volume for the year ended December 31, 2023, was approximately 34,724 tons, a year-on-year decrease of 29.0%[62] Cost Management - The cost of inventory recognized as an expense decreased to HKD 872,893,000 from HKD 1,388,170,000 year-over-year, indicating improved cost management[47] - The group's sales cost decreased by 37.1% to approximately HKD 872.9 million from approximately HKD 1,388.2 million in the previous year[66] - Administrative expenses decreased to approximately HKD 197.0 million from approximately HKD 304.8 million, mainly due to reductions in impairment losses and salary expenses[70] - Research and development expenses for the year ended December 31, 2023, were HKD 43,867,000, down from HKD 50,898,000 in 2022, reflecting a focus on cost control[47] Strategic Initiatives - The company plans to focus on new product development and market expansion strategies to drive future growth[4] - The company completed the sale of a subsidiary for RMB 16,394,000 (approximately HKD 18,609,000) on December 30, 2023, marking a strategic divestment[52] - The company completed the sale of 100% equity in Rongyang Shiye (Jiangmen) Limited for approximately RMB 34.8 million, with a final adjusted price of RMB 35,971,340, resulting in a net gain of approximately HKD 9.6 million[81][82] - The sale of Changji Zhungdong Economic and Technological Development Zone Hongrui Aluminum Co., Ltd. was completed for RMB 16.4 million, generating a net gain of approximately HKD 3.5 million[84] Governance and Compliance - The financial statements were approved for publication on March 26, 2024, ensuring compliance with relevant accounting standards[14] - The company maintains a high level of corporate governance, adhering to the corporate governance code as per Listing Rule Appendix C1[104] - The roles of Chairman and CEO are currently held by the same individual, Mr. Pan Zhaolong, since July 1, 2022, with the board believing this structure does not harm the balance of power[105] - The audit committee consists of three independent non-executive directors, who have reviewed the accounting principles and the audited consolidated financial statements for the year[108] - The annual performance announcement has been published on the Hong Kong Stock Exchange and the company's website, containing all information required by the Listing Rules[109] Market Outlook - The company expresses confidence in the growth of the aluminum market, anticipating a gradual increase in demand across all major end-user industries[79] - The group expects that the new accounting standards issued by the Hong Kong Institute of Certified Public Accountants will not have a significant impact on its financial statements[23] - The group has not adopted any new accounting standards in advance and does not anticipate any major effects from the upcoming amendments[22]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 479.0 million, a decrease of 51.2% compared to HKD 982.0 million in the same period of 2022[8]. - Gross profit for the same period was HKD 71.2 million, down 47.5% from HKD 135.6 million year-on-year, with a gross margin of 14.9%[8]. - The profit attributable to owners of the company was HKD 0.5 million, representing a 25.0% increase from HKD 0.4 million in the previous year[8]. - Operating loss before tax was HKD 6,311,000, compared to a profit of HKD 426,000 in the previous year[14]. - Net profit for the period was HKD 490,000, slightly up from HKD 426,000 in the prior year[17]. - The total comprehensive income for the period was a loss of HKD 30,197,000, compared to a loss of HKD 52,076,000 in the same period last year[17]. - Revenue for the period was approximately HKD 479.0 million, a decrease of about 51.2% compared to the same period in 2022[73]. - Gross profit for the period was approximately HKD 71.2 million, with a gross margin of 14.9%, up from 13.8% in the same period last year[83]. Assets and Liabilities - The company's total assets decreased to HKD 1,397.8 million as of June 30, 2023, from HKD 1,684.0 million as of December 31, 2022[10]. - Current ratio improved to 1.91 as of June 30, 2023, compared to 1.53 at the end of 2022[8]. - The debt-to-equity ratio decreased to 2.8% from 44.7% year-on-year, indicating a significant reduction in leverage[8]. - Cash and cash equivalents increased to HKD 197.9 million from HKD 73.7 million at the end of 2022[10]. - Trade receivables decreased to HKD 199.8 million from HKD 273.5 million, reflecting a decline in sales activity[10]. - As of June 30, 2023, the total borrowings amounted to HKD 217,361,000, a decrease of 44.9% from HKD 393,982,000 as of December 31, 2022[49]. - Trade payables as of June 30, 2023, totaled HKD 33,146,000, a decrease of 38.5% from HKD 53,802,000 as of December 31, 2022[52]. Cash Flow - Cash generated from operating activities was HKD 198,983,000, an increase of 91.1% from HKD 104,050,000 in the same period last year[21]. - The net cash used in investing activities was HKD 416,000, compared to HKD 6,312,000 in the previous year[21]. - The net cash used in financing activities was HKD 62,588,000, a significant decrease from the net cash generated of HKD 4,170,000 in the prior year[21]. - The cash and cash equivalents at the end of the period were HKD 197,933,000, up from HKD 133,217,000 at the end of June 2022[21]. Expenses and Costs - The cost of goods sold for the period was HKD 407,776,000, down 51.9% from HKD 846,390,000 in the previous year[53]. - Employee benefit expenses decreased to HKD 39,045,000 in the first half of 2023 from HKD 66,467,000 in the same period of 2022, a reduction of 41.3%[53]. - Administrative expenses decreased from approximately HKD 98.7 million to HKD 87.4 million, primarily due to reduced salary and welfare expenses[85]. - Financial costs decreased to approximately HKD 8.1 million from HKD 11.8 million, attributed to a reduction in average borrowing balance[89]. Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2023[9]. - The company did not declare any dividends for the six months ended June 30, 2023, and 2022[62]. - The group has issued share capital of HKD 120 million, divided into 1,200 million shares as of June 30, 2023[96]. - As of June 30, 2023, Mr. Pan Zhaolong holds 900,000,000 shares, representing 75% of the issued share capital[122]. Risk Management - The company has not faced significant stock price risk and has maintained its risk management policies since the last fiscal year-end[31]. - Management believes that long-term fluctuations in aluminum prices will not have a significant impact on the company's profitability and cash flow[34]. - The company continues to manage aluminum price risks through aluminum futures contracts, with losses from these contracts decreasing significantly[87]. Corporate Governance - The company has maintained compliance with the corporate governance code, although the roles of Chairman and CEO are held by the same individual since July 1, 2022[127]. - Independent non-executive director Mr. Man Yiu Kwong has been appointed as the chairman of the audit and nomination committees, with an increase in his director's fee from HKD 15,000 to HKD 20,000 per month effective April 1, 2023[128]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[133]. - The interim financial statements for the period have been reviewed by the audit committee but remain unaudited[134].

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本 公告全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 PanAsialum Holdings Company Limited 榮 陽 實 業 集 團 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2078） 截至二零二三年六月三十日止六個月中期業績公告 財務摘要 • 截至二零二三年六月三十日止六個月的收益為479.0百萬港元，與二零二二 年同期的982.0百萬港元相比，減少51.2%； • 截至二零二三年六月三十日止六個月的毛利為71.2百萬港元，與二零二二 年同期的135.6百萬港元相比，減少47.5%； • 截至二零二三年六月三十日止六個月的毛利率為14.9%，與二零二二年同 期的13.8%相比，上升8.0%； • 截至二零二三年六月三十日止六個月的本公司擁有人應佔溢利為0.5百萬港 元，而二零二二年同期則為0.4百萬港元；及 ...