Group 1: Xpeng Motors - Xpeng Motors delivered 15,613 smart electric vehicles in November, representing a year-on-year increase of 270% [1] - The total cumulative deliveries reached 82,155 vehicles by the end of November, a 285% increase year-on-year [1] - The P7 model accounted for 53,110 of the cumulative deliveries, while the newly launched P5 and G3i models also contributed significantly to the monthly figures [1] Group 2: Li Auto - Li Auto delivered 13,485 units of the Li ONE in November, marking a year-on-year growth of 190.2% [2] - The total deliveries for the first eleven months of 2021 reached 76,404 units, with cumulative deliveries since launch hitting 110,001 units [2] - The Li ONE achieved a record monthly delivery exceeding 13,000 units, becoming a preferred choice among Chinese mid-to-large SUVs [2] Group 3: Sinopec - Sinopec's controlling shareholder increased its stake by acquiring 35 million H-shares, representing approximately 0.03% of the total issued shares [3] - Following the acquisition, the controlling shareholder's total stake rose to 68.80% of the company's issued shares [3] - The shareholder plans to continue increasing its holdings, with a maximum target of 2% of the total issued shares [3] Group 4: Wuling Motors - Wuling Motors and Guangxi Automobile signed a letter of intent for asset restructuring and investment in Wuling New Energy [4] - Guangxi Automobile plans to integrate and restructure its new energy vehicle assets through Wuling New Energy, which will focus on R&D, manufacturing, and sales of new energy vehicles [4] - The investment includes approximately RMB 16 billion from Guangxi Automobile, RMB 10 billion from Wuling Motors, and RMB 3.06 billion from Wuling Industrial [4] Group 5: Cloudthink Technology - Cloudthink Technology reported a total billing amount of approximately RMB 5.116 billion for the first three quarters, reflecting a year-on-year growth of 88.99% [6]

Financial Performance - Revenue for FY2024 reached HK$25,995 million, a 4.3% increase from FY2023's HK$24,937 million[13] - Profit for the year in FY2024 was HK$1,317 million, a decrease of 63.3% compared to FY2023's HK$3,652 million[15] - Total equity as of December 31, 2024, was HK$30,750 million, up from HK$28,607 million in 2022, representing a 7.5% increase[17] - Total assets as of December 31, 2024, amounted to HK$55,350 million, an increase from HK$54,097 million in 2023[22] - For 2024, the Group recorded total revenue of HK$26.0 billion, representing an increase of 4.2% from the previous year, while profit for the year increased by 17.6% to HK$1.4 billion[25][28] - The overall gross profit margin of the Group for the year was 12.0%, up by two percentage points year-on-year[31][34] - For the year ended December 31, 2024, the Group reported revenue of HK$26.00 billion and a profit attributable to ordinary shareholders of HK$1.31 billion, with a net profit per tonne of HK$187[45] - The earnings per share increased to HK30.56 cents for the year ended December 31, 2024, compared to HK24.39 cents for the previous year[48] Production and Sales - Sales volume for packaging paper in FY2024 was 5,629,000 tons, a slight increase from 5,476,000 tons in FY2023[19] - Sales volume for tissue paper in FY2024 was 816,000 tons, up from 676,000 tons in FY2023, indicating a growth of 20.8%[21] - The company has a planned tissue paper production capacity of 100,000 tons in Guangxi Chongzuo Lee & Man[5] - The company operates multiple production facilities with a total annual paper production capacity of 5.59 million tons across various locations[5] - The packaging paper business remains the Group's core focus, supported by government policies aimed at reducing excessive plastic packaging[37][40] - The tissue paper business is expanding with the introduction of natural bamboo unbleached tissue paper to meet market demand for environmentally friendly products[38][40] - The annual production capacities of the company's plants in Guangdong, Jiangsu, Chongqing, Vietnam, and Malaysia account for nearly 70% of total production[171] Cost and Expenses - Distribution and selling expenses rose to HK$656 million, representing approximately 2.5% of revenue, up from 2.4% in the previous year[46] - General and administrative expenses increased to HK$1,297 million, accounting for about 5.0% of revenue, compared to 4.5% in the previous year[47] - Total finance costs for the year were HK$935 million, an increase from HK$831 million in the previous year, primarily due to higher bank borrowing amounts and interest rates[51] Corporate Governance - The Group is committed to high standards of corporate governance and has complied with the Code on Corporate Governance Practices during the year[65] - The Board comprises five executive directors and three independent non-executive directors as of December 31, 2024[73] - The Chairman and the Chief Executive Officer hold separate roles, with the Chairman overseeing the Board's effective functioning[71] - The Board's principal focus is on the overall strategic development and financial performance of the Group[74] - The Company has adopted a new remuneration committee scope effective from January 1, 2023, and reviewed its remuneration policies[68] - The Audit Committee reviewed the Group's consolidated financial statements for the year ended 31 December 2024[86] - The Remuneration Committee was established in 2005 and is responsible for recommending remuneration packages for directors and senior management, ensuring a link to corporate performance[95] Risk Management and Compliance - The Group has established a risk management framework involving the Board, Audit Committee, and Risk Management Taskforce to monitor risks effectively[121] - Risk management and internal control reports are submitted to the Audit Committee and the Board at least annually, ensuring ongoing oversight[127] - The Group's risk management systems are designed to provide reasonable assurance against material misstatement or loss, rather than absolute assurance[128] - The Company emphasizes the importance of compliance management to ensure business operations meet regulatory requirements[196] Employee and Diversity Initiatives - The Group maintained a workforce of over 10,000 employees, with competitive salaries and internal training programs[62] - The Group had over 10,000 employees as of December 31, 2024, with approximately 19% being female, and senior management comprised about 40% female members[150] - The Company is committed to maintaining female representation on the Board and developing a pipeline of potential successors[150] - The Board regularly assesses the diversity profile of all employee levels to attract and retain a wide pool of talent[150] Environmental, Social, and Governance (ESG) Efforts - The company aims to reduce overall air emissions by 2%, wastewater by 1%, and non-hazardous waste by 2% by 2025, using 2019 figures as a baseline[180] - The company has been recognized with the "2024 Energy Efficiency Benchmark of Guangdong Paper Manufacturing Industry" and "Top 100 Green and Sustainable Enterprises 2024" awards[176] - The board is responsible for sustainable development, including evaluating risks and opportunities related to key ESG issues[175] - The company has invested in environmentally friendly production technologies, including ultra-low emission technology and biomass fuel[176] - The Group aims to enhance employee compensation and benefits to increase satisfaction and loyalty[196] - The ESG task force, led by senior management, identifies major ESG issues and monitors the Group's ESG performance regularly[187] - The Group has identified 31 significant ESG issues based on stakeholder assessments, with a focus on environmental concerns due to increased stakeholder interest this year[198]

Financial Performance - The company's revenue for the year was HKD 25.995 billion, an increase of 3.4% from HKD 24.937 billion in 2023[4] - The net profit for the year was HKD 1.358 billion, representing a growth of 17.7% compared to HKD 1.154 billion in 2023[4] - Gross profit for the year was HKD 2.502 billion, down from HKD 3.113 billion in 2023, indicating a decrease of 19.6%[5] - The total comprehensive income for the year was HKD 1.517 billion, compared to HKD 708.6 million in 2023, reflecting a significant increase of 113%[7] - The group reported a pre-tax profit of HKD 1,612,349 for the fiscal year ending December 31, 2024, compared to HKD 1,412,359 in 2023, indicating a growth of about 14.1%[20] - The group reported a net profit of HKD 1,312,839 thousand for 2024, up from HKD 1,050,931 thousand in 2023, reflecting an increase of approximately 25%[42] - Total revenue for 2024 increased by 4.2% to HKD 26 billion, compared to the previous year[60] - Annual profit rose by 17.6% to HKD 1.4 billion, with earnings per share at HKD 30.56, up from HKD 24.39 in 2023[60] Dividends and Equity - The stable dividend payout ratio is approximately 35%, with a final dividend of HKD 0.045 per share[4] - The proposed final dividend for the year ending December 31, 2024, is HKD 0.045 per share, down from HKD 0.061 per share in 2023[41] - Total equity attributable to owners of the company decreased slightly to HKD 28,004,102 thousand in 2024 from HKD 28,757,512 thousand in 2023, a decline of about 2.6%[10] - The group's total equity as of December 31, 2024, was HKD 28.013 billion, a decrease from HKD 28.767 billion in 2023[78] Assets and Liabilities - The company's total assets less current liabilities amounted to HKD 42.767 billion, slightly up from HKD 42.661 billion in 2023[9] - Total assets as of December 31, 2024, amounted to HKD 55,350,359, compared to HKD 54,097,321 in 2023, showing an increase of about 2.32%[23] - The total liabilities for the group as of December 31, 2024, were HKD 27,337,184, up from HKD 25,330,359 in 2023, representing an increase of approximately 7.9%[24] - The company's bank borrowings rose to HKD 8.931 billion from HKD 7.037 billion in 2023, an increase of 27%[9] - Non-current liabilities increased to HKD 13,050,914 thousand in 2024 from HKD 12,256,122 thousand in 2023, representing a growth of approximately 6.5%[10] - The total non-current liabilities, including bank borrowings and lease liabilities, amounted to HKD 14,753,827 thousand in 2024, compared to HKD 13,894,293 thousand in 2023, reflecting an increase of about 6.2%[10] Financial Costs and Expenses - The company's financial costs increased to HKD 326.2 million from HKD 278.1 million in 2023, marking a rise of 17.3%[5] - Total financial costs increased to HKD 935 million, primarily due to higher bank borrowings and average interest rates[75] - Distribution and selling expenses for the year were HKD 656 million, accounting for approximately 2.5% of revenue, up from 2.4% in the previous year[73] - Administrative expenses rose to HKD 1.297 billion, representing 5.0% of revenue, an increase from 4.5% in the previous year[74] Operational Metrics - The inventory turnover period for raw materials and finished goods was 54 days and 14 days, respectively, down from 66 days and 17 days in the previous year[76] - The accounts receivable turnover period was 47 days, compared to 42 days in the previous year, aligning with the credit terms offered to customers[77] - The aging analysis of accounts receivable shows an increase in amounts not exceeding 30 days to HKD 2,178,694,000 in 2024 from HKD 1,809,940,000 in 2023[48] Employee and Operational Insights - The group has over 10,000 employees, with competitive salary levels and annual performance evaluations[81] - The group has not faced any significant employee issues or labor disputes during the year[81] - The group has maintained a strong cash flow and banking facilities to meet operational needs[79] Future Outlook and Strategic Initiatives - The company plans to enhance domestic sales and improve production efficiency through technological upgrades and product development to meet market demand[65] - The company anticipates gradual recovery in downstream demand due to government stimulus policies[60] Regulatory and Reporting Standards - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, which did not have a significant impact on the financial position and performance for the current and prior years[13] - The group is currently assessing the specific impact of the new Hong Kong Financial Reporting Standard No. 18 on its consolidated financial statements, which will take effect from January 1, 2027[19] - The total liabilities classification as current or non-current has been retrospectively applied, with no significant impact on the consolidated financial statements for the year[16] Miscellaneous - The annual general meeting is scheduled for May 8, 2025[88] - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2024[85]

Financial Performance - Revenue for the six months ended June 30, 2024, was HK$12,505,338, an increase of 2.4% compared to HK$12,207,102 in the same period of 2023[7]. - Gross profit for the period was HK$1,628,293, significantly up from HK$979,644, reflecting a gross margin improvement[7]. - Profit for the period reached HK$805,524, representing a 123.5% increase from HK$360,616 in the previous year[7]. - Profit attributable to owners of the Company for the period increased to HK$760,212,000, compared to HK$307,930,000 in the previous year, representing a growth of 147.5%[8]. - Earnings per share rose to HK$17.69, up from HK$7.15, reflecting a significant increase of 147.5%[8]. - Total comprehensive income for the period was HK$542,242, up from HK$487,367 in the previous year, indicating a growth of 11.3%[15]. - The Group's profit for the period attributable to the owners was HK$760,212,000, a significant increase from HK$307,930,000 in the same period of 2023, representing a growth of approximately 147.2%[38]. - Net profit for the same period rose by 123.4% to HK$806 million, with earnings per share at HK$17.69 cents, up from HK$7.15 cents in 2023[75]. Income and Expenses - Other income decreased to HK$344,279 from HK$405,054, indicating a decline of 15.0%[7]. - Finance costs increased to HK$178,268 from HK$100,475, reflecting a rise of 77.3%[7]. - Distribution and selling expenses slightly increased to HK$306,135 from HK$302,250, showing a marginal rise of 1.3%[7]. - General and administrative expenses rose to HK$604,621 from HK$542,498, marking an increase of 11.5%[7]. - Total employee benefit expenses amounted to HK$868,230,000, up from HK$795,774,000 in 2023, indicating an increase of about 9.1%[36]. - The Group's income tax expense for the period totaled HK$102,160,000, compared to HK$77,518,000 in 2023, representing an increase of approximately 31.7%[32]. Assets and Liabilities - Total assets less current liabilities stood at HK$42,963,161,000, compared to HK$42,661,255,000, showing a slight increase of 0.7%[11]. - Non-current assets increased to HK$41,638,088,000 from HK$40,956,128,000, an increase of 1.7%[10]. - Current liabilities decreased to HK$11,885,285,000 from HK$11,436,066,000, a reduction of 3.9%[10]. - The company’s total liabilities as of June 30, 2024, were HK$27,304,904, a decrease from HK$29,256,976 on June 30, 2023[15]. - The Group's current ratio decreased to 1.11 as of June 30, 2024, down from 1.15 at the end of 2023[100]. - Outstanding bank borrowings increased to HK$21,957 million from HK$19,293 million, contributing to a rise in the net debt-to-equity ratio from 0.62 to 0.74[101]. Cash Flow and Dividends - Net cash from operating activities was HK$161,096,000, a decrease from HK$1,699,642,000 in the previous year[12]. - Dividends paid increased to HK$262,015,000 from HK$142,216,000, marking an increase of 84.4%[8]. - A final dividend of HK$0.061 per share was paid for the year ended 31 December 2023, compared to HK$0.033 per share in 2022, marking an increase of approximately 84.8%[38]. - The Group declared an interim dividend of HK$0.062 per share for 2024, compared to HK$0.025 per share in 2023[70]. Market and Operational Outlook - The outlook for the company includes continued focus on market expansion and potential new product development initiatives[6]. - The Group is focusing on expanding markets along the "Belt and Road" to enhance operational efficiency and explore new business opportunities[83]. - The packaging paper business is expected to stabilize and grow due to government policies promoting recyclable packaging and increasing consumer demand[82]. - The Group aims to maintain competitiveness through effective cost control measures while consolidating market share[82]. Shareholder and Governance - The company believes that share buybacks are in the best interest of the company and its shareholders, potentially increasing earnings per share[118]. - The company has complied with the corporate governance code provisions throughout the six months ended June 30, 2024[121]. - The Audit Committee has reviewed the accounting principles and practices adopted by the group and discussed internal control procedures and financial reporting matters[121]. - All board members confirmed compliance with the Model Code throughout the six months ended June 30, 2024[121].

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 12.505 billion, an increase of 2.4% compared to the same period last year[2] - Profit for the period was HKD 806 million, representing a significant increase of 123.4% year-on-year[2] - Earnings per share stood at HKD 0.1769, up from HKD 0.0715 in the previous year[5] - Total revenue for the packaging paper, sanitary paper, and pulp segments amounted to HKD 12,505,338,000, with a segment profit of HKD 1,043,321,000[15] - The company reported a profit of approximately HKD 760,212,000 for the period ending June 30, 2024, compared to HKD 307,930,000 for the same period in 2023, indicating a significant increase in profitability[26] - Net profit surged by 123.4% to HKD 806 million, with earnings per share reaching HKD 0.1769, up from HKD 0.0715 in 2023[38] Dividends - The company declared an interim dividend of HKD 0.062 per share, compared to HKD 0.0107 per share in the same period last year[5] - The company declared an interim dividend of HKD 0.062 per share for the year ending December 31, 2024, compared to HKD 0.025 per share in 2023, representing a 148% increase[25] - The board declared an interim dividend of HKD 0.062 per share for the six months ended June 30, 2024, compared to HKD 0.025 per share in the previous year[51] Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to HKD 41.638 billion, an increase from HKD 40.956 billion at the end of 2023[6] - Current assets totaled HKD 13.210 billion, slightly up from HKD 13.141 billion at the end of 2023[6] - Total liabilities increased to HKD 27.304 billion from HKD 28.767 billion at the end of 2023[7] - The company’s bank borrowings rose to HKD 14.004 billion as of June 30, 2024, compared to HKD 12.256 billion at the end of 2023[7] Income and Expenses - Gross profit for the period was HKD 1.628 billion, compared to HKD 979.6 million in the previous year[4] - Total comprehensive income for the period was HKD 542.2 million, down from HKD 848 million in the previous year[5] - The group recorded net other income of HKD 344,279,000, a decrease from HKD 405,054,000 in the same period of 2023[17] - Financial costs increased to HKD 178,268,000 from HKD 100,475,000 year-on-year, primarily due to higher bank borrowing and discount note interest[19] - The group recognized a total tax expense of HKD 102,160,000 for the six months ended June 30, 2024, compared to HKD 77,518,000 in the previous year[20] - Total employee benefits expenses amounted to HKD 868,230,000 for the six months ending June 30, 2024, up from HKD 795,774,000 in the previous year, reflecting a year-on-year increase of approximately 9.1%[24] - Distribution and selling expenses for the six months ended June 30, 2024, were HKD 0.306 billion, accounting for approximately 2.4% of revenue, slightly down from 2.5% in the previous year[44] - Administrative expenses increased to HKD 0.605 billion, representing 4.8% of revenue, up from 4.4% in the same period last year[45] - Total borrowing costs for the six months ended June 30, 2024, were HKD 0.462 billion, an increase from HKD 0.358 billion in the previous year, primarily due to higher bank borrowing amounts and interest rates[46] Inventory and Receivables - The total inventory as of June 30, 2024, was HKD 4,626,671,000, a decrease from HKD 4,921,137,000 as of December 31, 2023, indicating a reduction of approximately 6%[28] - Trade receivables increased to HKD 3,196,112,000 as of June 30, 2024, from HKD 2,909,541,000 at the end of 2023, marking an increase of about 9.9%[29] - Trade payables rose to HKD 2,175,528,000 as of June 30, 2024, compared to HKD 1,934,565,000 at the end of 2023, reflecting an increase of about 12.4%[31] Operational Insights - The company plans to continue expanding its operations in Southeast Asia, particularly in Vietnam and Malaysia, to enhance overall operational efficiency[40] - The packaging paper business is expected to benefit from government policies promoting the use of recyclable packaging, leading to increased demand[40] - The company aims to optimize its production capacity and cost control measures to maintain competitiveness and market share[39] - The integration of upstream resources and vertical business models is expected to improve profitability and stabilize raw material supply chains[39] - The group aims to capture opportunities from the industry's cyclical turning point and will continue to optimize operational efficiency and expand both domestic and international market opportunities[42] Corporate Governance - The company has adopted the standard code of conduct for securities trading as per the listing rules, and all directors confirmed compliance during the reporting period[56] - The company has adhered to the corporate governance code as stipulated in the listing rules throughout the reporting period[57] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and internal control procedures during the six months ended June 30, 2024[59] - The unaudited interim financial statements for the six months ended June 30, 2024, were discussed and reviewed by the audit committee and management[59] - The board of directors includes five executive directors and three independent non-executive directors as of the announcement date[59] Share Repurchase - The company repurchased a total of USD 27.48 million in securities from June to November 2023[35] - The company repurchased a total of 13,808,000 shares at an average price of HKD 0.025 per share, with a total cost of approximately HKD 28,839,000 including transaction costs[53] - The highest price paid per share during the repurchase was HKD 2.10, while the lowest was HKD 2.00, with a cumulative cost of HKD 26,803,000 in January alone[54] - The company believes that the share repurchase is in the best interest of the company and its shareholders, and it can enhance the earnings per share[53] - No other purchases, sales, or redemptions of the company's listed securities were made during the six months ended June 30, 2024, apart from the repurchase mentioned[55]

Financial Performance - Revenue for FY2023 was HK$29,170 million, an increase from HK$25,868 million in FY2022, representing a growth of 12.8%[16] - Profit for the year in FY2023 was HK$1,317 million, compared to HK$3,252 million in FY2022, indicating a decrease of 59.6%[18] - For 2023, the Group recorded total revenue of HK$24.9 billion, representing a decrease of 14.5% from the previous year[31] - The profit for the year decreased by 12.4% to HK$1.2 billion compared to the previous year, with earnings per share at HK24.39 cents[31] - The Group's revenue for the year ended December 31, 2023, was HK$24.9 billion, with a profit attributable to owners of HK$1.05 billion, resulting in a net profit per tonne of HK$176[55] - Earnings per share decreased to HK$24.39 cents from HK$27.46 cents in the previous year[55] Production Capacity and Operations - The annual production capacity for paper across various locations includes 2.30 million tons in Guangdong and 1.12 million tons in Jiangsu[6] - The company plans to increase tissue paper production capacity by 200,000 tons, enhancing its product offerings[6] - Lee & Man Paper has expanded its operations in Vietnam, with an annual production capacity of 550,000 tons of paper/products[6] - The company reported a significant increase in pulp production capacity, with 300,000 tons in Jiangxi and 400,000 tons in Malaysia[6] - The Group's new pulp production lines in Chongqing, Jiangxi, and Guangxi commenced operation, adding an annual production capacity of 950,000 tons, bringing total pulp production capacity to 1.2 million tons[37] - The fourth paper-making machine production line in Malaysia has commenced operation, with an annual production capacity of 350,000 tons, increasing the total production capacity in Malaysia to 1.4 million tons[38] - The Group's core paper manufacturing operations in Guangdong, Jiangsu, Chongqing, Vietnam, and Malaysia account for nearly 80% of total annual production capacity[198] Financial Position and Ratios - Total assets as of FY2023 amounted to HK$XX million, reflecting a change from the previous fiscal year[19] - The Group's total shareholders' fund increased to HK$28.77 billion from HK$28.61 billion[68] - Current assets rose to HK$13.14 billion, while current liabilities decreased to HK$11.44 billion, resulting in a current ratio of 1.15[68] - Outstanding bank borrowings increased to HK$19.29 billion from HK$16.33 billion, leading to a net debt-to-equity ratio rise from 0.51 to 0.62[69] - The net capital debt ratio increased from 0.51 on December 31, 2022, to 0.62 on December 31, 2023[73] Expenses and Cost Management - Distribution and selling expenses were HK$595 million, representing about 2.4% of revenue, down from 2.7% in the previous year[56] - General and administrative expenses increased to HK$1,118 million, accounting for approximately 4.5% of revenue, up from 4.2% in the previous year[57] - Total finance costs rose significantly to HK$831 million from HK$365 million, primarily due to increased bank borrowings and interest rates[62] - The Group continues to focus on expanding its pulp business and optimizing production costs through vertical integration strategies[47] Governance and Board Structure - Recent changes in the board of directors include the appointment of new independent non-executive directors in August 2023[7] - The Board comprises five executive directors and three independent non-executive directors as of December 31, 2023[89] - The Group has complied with the Code on Corporate Governance Practices as set out in the Listing Rules[79] - The Audit Committee reviewed the Group's consolidated financial statements for the year ended December 31, 2023, discussing accounting principles and internal controls[103] - The Remuneration Committee was established in 2005 and is responsible for advising on the overall policy and structure for the remuneration of directors and senior management[111] - The Nomination Committee was established on March 28, 2012, and reviews the Board composition to ensure a balance of expertise, skills, and experience[116] Employee and Workforce Management - The Group maintained a workforce of over 10,000 employees as of December 31, 2023, with competitive salary levels reviewed annually[75] - The Group has not faced significant employee issues or operational disruptions due to labor disputes[76] - As of December 31, 2023, the Group employed over 10,000 individuals, with approximately 19% being female[172] - The Senior Management team comprised approximately 40% female members, including the Financial Controller and Senior Finance Manager[172] Environmental, Social, and Governance (ESG) Initiatives - The company prepared an Environmental, Social and Governance Report for the period from January 1, 2023, to December 31, 2023, to inform stakeholders about its ESG performance[195] - The Board is responsible for sustainable development, including evaluating risks and opportunities related to key ESG issues[200] - The Group aims to create value for all stakeholders through its ESG efforts[199] - The Group emphasizes the importance of balancing its ESG performance reporting in an objective manner[198] Shareholder Engagement and Dividends - The proposed final dividend for 2023 is HK6.1 cents per share, up from HK3.3 cents in 2022[31] - The board considers sustainable returns to shareholders as a primary objective, with a focus on stable dividend payments[190] - The company will not declare dividends if there are reasonable grounds to believe it would be unable to meet its liabilities after the payment[194] - Shareholders holding at least one-tenth of the paid-up capital can requisition an extraordinary general meeting[176]

Financial Performance - The company's revenue for the year ended December 31, 2023, was HKD 24,937.08 million, a decrease of 15.5% from HKD 29,170.40 million in 2022[2]. - The net profit for the year was HKD 1,153.96 million, down 12.4% from HKD 1,317.19 million in 2022[4]. - The basic earnings per share for the year were HKD 10.24, compared to HKD 24.39 in 2022[5]. - Total revenue for 2023 decreased by 14.5% to HKD 24.9 billion, while annual profit fell by 12.4% to HKD 1.2 billion[45]. - The group's profit before tax for the year ended December 31, 2023, was HKD 1,412,359, compared to HKD 1,458,721 for the year ended December 31, 2022, indicating a decrease of approximately 3.2%[17][18]. - The company’s annual profit attributable to ordinary shareholders decreased to HKD 1,050,931,000 in 2023 from HKD 1,185,236,000 in 2022, reflecting a decline of approximately 11.3%[33]. Dividends - The company maintained a stable dividend payout ratio of approximately 35%, declaring a final dividend of HKD 0.061 per share[2]. - The proposed final dividend per ordinary share for the year ended December 31, 2023, is HKD 0.061, up from HKD 0.033 in 2022, representing an increase of about 84.8%[31]. - The total dividend declared for ordinary shareholders was HKD 249,955,000 in 2023, significantly lower than HKD 755,502,000 in 2022, reflecting a decrease of about 66.9%[32]. Assets and Liabilities - Non-current assets increased to HKD 40,956.13 million in 2023 from HKD 37,404.80 million in 2022[6]. - The company's total liabilities increased to HKD 28,766.96 million in 2023 from HKD 28,606.89 million in 2022[7]. - As of December 31, 2023, total assets amounted to HKD 54,097,321, while total liabilities were HKD 25,330,359, resulting in a net asset position of HKD 28,766,962[20]. - The total liabilities of the group amounted to HKD 21,718,791 in 2023, compared to HKD 18,978,852 in 2022, indicating an increase of about 14.5%[21]. - The net debt-to-equity ratio increased from 0.51 to 0.62 due to business expansion, with outstanding bank loans amounting to HKD 19.293 billion[55]. Revenue Breakdown - For the year ended December 31, 2023, total revenue reached HKD 24,937,083, with packaging paper contributing HKD 19,943,445, hygiene paper HKD 4,682,603, and pulp HKD 311,035[17]. - The revenue from packaging paper, including cardboard and corrugated core paper, was HKD 19,943,445 in 2023, down from HKD 24,453,678 in 2022, a decrease of about 18.5%[22]. - The group’s revenue from external sales for the year ended December 31, 2022, was HKD 29,170,402, with packaging paper contributing HKD 24,453,678, hygiene paper HKD 4,171,819, and pulp HKD 544,905[18]. Operational Highlights - The group reported a total segment profit of HKD 1,651,337 for the year ended December 31, 2023, compared to HKD 1,516,636 for the year ended December 31, 2022, reflecting an increase of approximately 8.9%[17][18]. - The group generated approximately 90% of its revenue from external customers in China, up from 89% in 2022[23]. - The company has initiated a vertical business model covering pulp production and waste paper recycling to ensure raw material supply and control costs[46]. - New pulp production lines in Chongqing, Jiangxi, and Guangxi have been launched, adding a total annual capacity of 950,000 tons, bringing total pulp capacity to 1.2 million tons[46]. - The fourth paper production line in Malaysia, with an annual capacity of 350,000 tons, has commenced production, increasing total capacity in Malaysia to 1.4 million tons[46]. Financial Reporting Standards - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, including HKFRS 17 related to insurance contracts[9]. - The application of HKAS 8 (Revised) clarifies the definition of accounting estimates, which did not have a significant impact on the group's consolidated financial statements this year[10]. - The group has implemented HKAS 1 and HKFRS Practice Statement 2 (Revised) regarding the disclosure of accounting policies, replacing "significant accounting policies" with "material accounting policy information" in financial statements[11]. - The group has not early adopted any of the revised Hong Kong Financial Reporting Standards that have been issued but are not yet effective, with expectations that they will not have a significant impact on the consolidated financial statements[13]. Employee and Governance - As of December 31, 2023, the group employed over 10,000 employees, maintaining competitive salary levels and providing internal training[56]. - The company is committed to maintaining high standards of corporate governance, adhering to the corporate governance code throughout the year[59]. - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2023, discussing internal controls and financial reporting matters[60]. Miscellaneous - The company reported a significant increase in bank borrowings, rising to HKD 12,256.12 million in 2023 from HKD 7,826.55 million in 2022[7]. - The group reported a net gain from foreign exchange of HKD 64,723 for the year ended December 31, 2023[17]. - The company repurchased a total of 757,000 shares at HKD 0.025 per share, with a total cost of approximately HKD 1,547,000, which has been fully canceled[57]. - The highest and lowest prices per share during the repurchase in December were HKD 2.04 and HKD 2.02, respectively[58].

Financial Performance - Revenue for the six months ended June 30, 2023, was HK$12,207,102, a decrease of 20.4% compared to HK$15,276,210 in the same period of 2022[7] - Gross profit for the period was HK$979,644, down 41.0% from HK$1,656,358 in the previous year[7] - Profit before tax was HK$438,134, a decline of 53.8% compared to HK$949,731 in the first half of 2022[7] - Profit for the period was HK$360,616, significantly lower than HK$862,595 in the same period last year, representing a decrease of 58.3%[7] - Profit for the period attributable to ordinary shareholders decreased to HK$307,930,000 from HK$797,448,000, representing a decline of 61.4%[8] - Net profit for the same period decreased by 58.2% to HK$361 million, with earnings per share at HK7.15 cents (2022: HK18.46 cents)[80] Comprehensive Income - Total comprehensive income for the period was HK$847,983, compared to a loss of HK$421,290 in the previous year[7] - Total comprehensive income attributable to ordinary shareholders was HK$795,447,000, compared to a loss of HK$486,201,000 in the previous year[8] - The total comprehensive income for the six months ended June 30, 2023, was impacted by a significant exchange loss of HK$1,283,649 in the previous year[15] Expenses and Costs - Distribution and selling expenses decreased to HK$302,250, down 32.2% from HK$446,181 in the previous year[7] - Finance costs rose to HK$100,475, compared to HK$38,243 in the same period of 2022, indicating an increase of 162.5%[7] - The total employee benefit expense was HK$795,774,000, down from HK$857,013,000 in the previous year, indicating a reduction of 7.1%[48] - General and administrative expenses were HK$542 million, which is 4.4% of revenue, an increase from 3.9% year-on-year[97] - Total finance costs rose significantly to HK$358 million from HK$94 million, attributed to increased borrowing amounts and interest rates[98] Cash Flow and Liquidity - Net cash from operating activities increased significantly to HK$1,699,642,000 from HK$848,317,000, marking a growth of 100.3%[12] - Cash and cash equivalents carried forward amounted to HK$2,230,514,000, up from HK$1,831,514,000, indicating an increase of 21.8%[12] - Current liabilities rose to HK$12,446,903,000 from HK$12,292,979,000, an increase of 1.3%[11] - The Group's total shareholders' fund increased to HK$29,257 million as of June 30, 2023, from HK$28,607 million at the end of 2022[103] - Current ratio improved slightly to 1.06 from 1.05, indicating stable liquidity[103] Investments and Capital Expenditures - The company reported a net cash used in investing activities of HK$2,650,602,000, compared to HK$1,979,983,000 in the previous year, reflecting an increase of 34.0%[12] - Additions to property, plant, and equipment during the period amounted to HK$2,749,000,000, an increase from HK$2,629,000,000 in 2022, indicating ongoing investment in operations[52] - The company has capital commitments of HK$3,799,835,000 for property, plant, and equipment as of 30 June 2023[68] Dividends - The company declared an interim dividend of HK$107,739,000, down from HK$280,575,000, a decrease of 61.6%[8] - The interim dividend declared was HK$0.025 per share, down from HK$0.065 per share in the previous year, reflecting a decrease of 61.5%[50] Assets and Liabilities - Bank borrowings as of June 30, 2023, stood at HK$7,988,586,000, a decrease from HK$8,500,876,000 at the end of 2022[10] - Non-current assets increased to HK$39,973,610,000 from HK$37,404,798,000, reflecting a growth of 6.9%[10] - The company's equity attributable to owners increased to HK$29,248,020,000 from HK$28,598,507,000, a rise of 2.3%[11] - Trade receivables, net of credit loss allowance, decreased to HK$2,791,283,000 as of June 30, 2023, from HK$3,058,560,000 at the end of 2022[56] Market Outlook and Strategy - The outlook for the company includes a focus on market expansion and new product development to enhance revenue streams[6] - The Group aims to enhance its packaging paper business due to expected government regulations tightening control on plastic packaging, which may boost demand for paper packaging[85] - The Group is committed to reducing pollution and carbon emissions through waste paper recycling and advanced production technologies, enhancing its market competitiveness[91] Shareholder Information - The directors and chief executives held significant interests in the company, with Dr. Lee Man Chun Raymond and Mr. Lee Man Bun each owning 1,358,991,040 ordinary shares, representing 31.53% of the issued share capital[112] - As of June 30, 2023, substantial shareholders included Ms. Ho Tsz Wan and Dr. Lee Wan Keung Patrick, holding 1,358,991,040 shares (31.53%) and 434,746,920 shares (10.09%) respectively[117] Compliance and Governance - The company complied with the Model Code for Securities Transactions throughout the six months ended June 30, 2023[121] - The company has adhered to the Corporate Governance Practices Code throughout the reporting period[122] - The Audit Committee reviewed the company's unaudited interim financial statements for the six months ended June 30, 2023[128]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 12.21 billion, a decrease of 20.1% compared to the same period last year[2] - Profit for the period was HKD 361 million, down 58.2% year-on-year[2] - Earnings per share were HKD 0.0715, compared to HKD 0.1846 in the previous year[5] - Total comprehensive income for the period was HKD 847.98 million, compared to a loss of HKD 421.29 million in the previous year[5] - The company reported a net profit of approximately 307,930,000 HKD for the six months ended June 30, 2023, a decrease of 61.4% compared to 797,448,000 HKD in the same period of 2022[27] - Net profit for the same period fell by 58.2% to HKD 361 million, with earnings per share at HKD 0.0715, down from HKD 0.1846 in 2022[36] Dividends - The company declared an interim dividend of HKD 0.025 per share[5] - The company declared an interim dividend of 0.025 HKD per share, down from 0.065 HKD per share in 2022[26] - The interim dividend declared was HKD 0.025 per share, down from HKD 0.065 per share in the previous year[48] Assets and Liabilities - Non-current assets as of June 30, 2023, amounted to HKD 37.53 billion, an increase from HKD 35.13 billion at the end of 2022[6] - Current assets totaled HKD 13.18 billion, compared to HKD 12.92 billion at the end of 2022[6] - Total liabilities increased to HKD 29.26 billion from HKD 28.61 billion at the end of 2022[7] - As of June 30, 2023, the company's total equity was HKD 29.257 billion, up from HKD 28.607 billion at the end of 2022[46] - The current ratio as of June 30, 2023, was 1.06, slightly up from 1.05 at the end of 2022, indicating stable liquidity[46] Costs and Expenses - The company reported a significant increase in financial costs, rising to HKD 100.48 million from HKD 38.24 million in the previous year[4] - Total borrowing costs for the period were HKD 0.358 billion, a substantial increase from HKD 0.094 billion in the previous year, primarily due to rising bank borrowing amounts and interest rates[44] - Total employee benefits expenses amounted to 795,774,000 HKD, down 7.1% from 857,013,000 HKD in the previous year[25] - Distribution and selling expenses for the six months were HKD 0.302 billion, accounting for approximately 2.5% of revenue, down from 2.9% in the same period last year[42] - Administrative expenses were HKD 0.542 billion, representing 4.4% of revenue, an increase from 3.9% year-on-year[43] - The total tax expense recognized in profit or loss for the period was 46,600,000 HKD, compared to 55,968,000 HKD in the previous year, showing a decrease of 16.5%[21] Production and Operations - Total revenue for the packaging paper, sanitary paper, and pulp segments amounted to HKD 12,207,102,000, with external sales contributing HKD 12,207,102,000[16] - Segment profit for packaging paper, sanitary paper, and pulp totaled HKD 527,106,000, with individual contributions of HKD 297,779,000, HKD 217,377,000, and HKD 11,950,000 respectively[16] - The total sales volume for the six months was 3.02 million tons, with an average net profit per ton of HKD 119[36] - New pulp production capacity in Chongqing has commenced operations, contributing to the company's vertical integration strategy[37] - The fourth paper machine in Malaysia has started production, increasing total production capacity in Malaysia to 1.4 million tons[37] - The company is actively integrating upstream resources to ensure raw material supply and control costs, improving profitability[37] - The packaging paper business is expected to benefit from stricter regulations on plastic packaging, providing growth opportunities[38] - The sanitary paper business aims to enhance product quality and production scale, with an annual capacity nearing 1 million tons[39] - New pulp production lines in Jiangxi and Guangxi are expected to commence operations in the second half of the year, stabilizing raw material supply for sanitary paper[39] Financial Reporting and Standards - The company expects no significant impact from the newly adopted accounting standards on its financial statements for the current period[12] - The group has applied the revised Hong Kong Financial Reporting Standards, which took effect on January 1, 2023, with no significant impact on the financial position and performance[11] - The company anticipates that the revised accounting policies will affect the disclosures in its consolidated financial statements for the year ending December 31, 2023[13] Audit and Governance - The audit committee consists of three independent non-executive directors: Mr. Zhou Chengyan, Mr. Wang Qidong, and Mr. Peter A. Davies[53] - The committee reviewed the accounting principles and practices adopted by the group, discussing internal control procedures and financial reporting matters[53] - The group’s unaudited interim financial statements for the six months ended June 30, 2023, were reviewed[53]

Production Capacity - Annual paper production capacity is 5.59 million tons, with specific capacities of 590,000 tons in Dongguan, 2.30 million tons in Guangdong, and 1.12 million tons in Jiangsu[4][5][8] - Tissue paper production capacity is 1.1 million tons, with 400,000 tons in Malaysia and 575,000 tons in Chongqing[7][9] - Planned pulp production capacity includes 300,000 tons in Jiangxi and 350,000 tons in Guangxi[6][9] - The Group's total annual production capacity of consumer tissue paper has reached approximately 1,000,000 tons[25] - The Group's pulp production lines in Jiangxi, Chongqing, and Guangxi are expected to be completed in the second and third quarters of 2023, adding a total annual production capacity of 950,000 tons[25] - The third paper-making machine at the Malaysian plant commenced production in Q3 2022, adding an annual production capacity of 350,000 tons of packaging paper[23] Sales Performance - Sales volume for packaging paper reached 5.63 million tons in FY2022, showing a slight increase from 5.52 million tons in FY2021[18] - Sales volume for tissue paper was 660,000 tons in FY2022, compared to 686,000 tons in FY2021[18] - The Group's revenue for the year ended December 31, 2022, was HK$29.2 billion, with a profit attributable to owners of HK$1.19 billion, resulting in a net profit per tonne of HK$216[29] Financial Overview - The Group recorded total revenue of HK$29.2 billion in 2022, a decrease of 10% compared to the previous year, while profit for the year decreased by 60% to HK$1.3 billion[20] - Earnings per share for the year were HK27.46 cents, down from HK71.87 cents in 2021[20] - Total assets as of December 31, 2022, were HK$50.3 billion, while total liabilities were HK$21.7 billion, resulting in net assets of HK$28.6 billion[19] - Distribution and selling expenses were HK$784 million, representing approximately 2.7% of revenue, down from 3.1% in the previous year[30] - General and administrative expenses decreased to HK$1,239 million, accounting for about 4.2% of revenue, compared to 4.8% in the previous year[30] - Total finance costs increased to HK$365 million due to higher bank borrowing amounts and average interest rates[31] Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, particularly in Malaysia and Indonesia[3] - Future outlook includes increasing production capacities and enhancing product offerings in the pulp and paper sector[3] - The company is focusing on new product development and technological advancements to improve operational efficiency[3] - Strategic initiatives include potential mergers and acquisitions to strengthen market position[3] - The Group continues to support the "Belt and Road" initiative by expanding its business presence in Southeast Asia[23] Environmental Sustainability - The company aims to enhance its environmental sustainability practices in line with global standards[3] - The Group aims to reduce overall air emissions by 2%, wastewater by 1%, non-hazardous waste by 2%, and annual unit product coal and water consumption by 1% each by 2025, using 2019 figures as the baseline[118] - The Group has implemented energy-saving and emission-reducing technologies, including ultra-low emission technology and biomass fuel usage to replace part of coal-fired power generation[116] - The Group was recognized as one of the "Top 10 Enterprises of Paper Industry in China Light Industries" and awarded the "National Green Factory" title, reflecting its commitment to sustainability[117] Corporate Governance - The company has complied with the Code on Corporate Governance Practices as set out in the Listing Rules on The Stock Exchange of Hong Kong Limited during the review year[38] - The Board comprises five executive directors, one non-executive director, and three independent non-executive directors, focusing on overall strategic development and financial performance monitoring[42] - The Chairman leads the Board and ensures effective functioning, with a clear separation of roles from the Chief Executive Officer, who manages day-to-day operations[41] - The company regularly reviews its corporate governance policies to ensure compliance with the Listing Rules and has adopted new Terms of Reference for the Remuneration Committee effective January 1, 2023[39] Employee Management and Development - The Group maintained a workforce of over 10,000 employees, with competitive salaries and internal training programs[36] - The company provides internal training for employees and issues bonuses based on performance and profitability[37] - The Group emphasizes occupational safety, adhering to the "Safety First, with Emphasis on Prevention and Integrated Governance" principle[181] - Employees receive training and development plans based on their performance and expertise, fostering growth within the Company[162] Risk Management - The Group has established a risk management framework involving the Board, Audit Committee, and Senior Management to oversee risk management and internal control systems[69] - The Risk Management Taskforce identifies and prioritizes significant risks at least annually, establishing risk mitigation plans and assigning risk owners[72] - The Board performed an annual review of the effectiveness of the Group's risk management and internal control systems, considering them effective and adequate[74] Diversity and Inclusion - The Company aims to have at least one female director on the Board by December 2023[93] - The Board diversity policy has been in effect since January 1, 2019, focusing on various criteria such as gender, age, and professional experience[82] - The total number of female employees increased to 1,346 in 2022 from 1,283 in 2021, reflecting a commitment to gender diversity[170] Employee Safety and Well-being - The company reported zero work-related fatalities in 2022, maintaining a consistent record from previous years[192] - The company has implemented a comprehensive safety management policy, including regular inspections of equipment and facilities to address potential safety threats[189] - The company has established a pandemic prevention and control team, implementing strict measures to ensure employee safety during COVID-19[193]