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]

Financial Performance - Revenue for the six months ended June 30, 2022, was HK$15,276,210, an increase of 0.6% compared to HK$15,180,233 in the same period of 2021[7] - Gross profit decreased to HK$1,656,358, down 50.4% from HK$3,337,836 in the prior year[7] - Profit for the period was HK$862,595, a significant decline of 56.9% compared to HK$2,000,183 in the previous year[7] - Total comprehensive income for the period was a loss of HK$421,290, compared to a gain of HK$2,585,932 in the same period last year[7] - Profit for the period attributable to owners of the Company decreased to HK$797,448,000 from HK$1,935,969,000, representing a decline of 58.8%[8] - Total comprehensive income attributable to owners of the Company was a loss of HK$486,201,000 compared to a profit of HK$2,521,682,000 in the previous year[8] - Earnings per share decreased to HK$18.46 from HK$44.54, a decline of 58.6%[8] - Net profit decreased by 56.9% to HK$863 million, with earnings per share at HK$18.46 cents (2021: HK$44.54 cents)[83] Expenses and Costs - Cost of sales increased to HK$13,619,852, up 15.0% from HK$11,842,397 in 2021[7] - Distribution and selling expenses decreased to HK$446,181, down 11.4% from HK$503,774 in the previous year[7] - General and administrative expenses reduced to HK$598,371, a decrease of 17.3% compared to HK$723,644 in 2021[7] - Finance costs increased to HK$38,243, up 16.8% from HK$32,784 in the previous year[7] - Total employee benefit expenses amounted to HK$857,013,000, an increase from HK$825,998,000 in the previous year[48] Cash Flow and Investments - Net cash from operating activities increased to HK$848,317,000 from HK$353,469,000, showing a significant improvement[12] - Net cash used in investing activities was HK$1,979,983,000, up from HK$1,785,046,000, indicating increased investment in property, plant, and equipment[12] - Dividends paid amounted to HK$474,927,000, down from HK$782,396,000, reflecting a reduction in shareholder returns[12] - Additions to property, plant, and equipment during the period were HK$2,629 million, significantly higher than HK$1,161 million in the previous year, indicating a focus on operational expansion[51] Assets and Liabilities - Total assets less current liabilities decreased to HK$39,675,153,000 from HK$40,263,393,000, reflecting a reduction in overall asset value[11] - Current assets decreased to HK$14,728,771,000 from HK$15,002,699,000, indicating a decline in liquidity[10] - Net current assets decreased to HK$2,012,842,000 from HK$2,812,249,000, reflecting a decline in short-term financial health[11] - Bank borrowings increased to HK$9,744,586,000 from HK$8,674,747,000, indicating higher leverage[10] - Outstanding bank borrowings increased to HK$15,532 million as of June 30, 2022, compared to HK$14,061 million at the end of 2021[105] Shareholder Information - The company declared an interim dividend of HK$0.065 per share, down from HK$0.15 per share in the previous year[49] - The company repurchased a total of 15,116,000 shares during the first half of 2022, with an aggregate consideration of HK$76,194,000[62] - All repurchased shares were cancelled during the period, enhancing the earnings per share of the company[120] - The controlling shareholders must maintain at least 51% ownership of the company to avoid default on loan agreements[123] Market and Operational Insights - The market is facing pressure due to rising raw material prices and weakened demand amid the pandemic, impacting profitability[83] - The Group aims to optimize its industrial chain and diversify its paper and pulp businesses to improve operational stability and strengthen profit bases[86] - The Group is actively expanding its market presence in Southeast Asia, particularly in Vietnam and Malaysia, to optimize operational efficiency[89] - The Group plans to enhance its recycled pulp business and add new pulp production lines in Jiangxi and Chongqing, expected to start operations in 2023[90] Accounting and Compliance - The application of amendments to HKFRSs had no material impact on the Group's financial positions and performance for the current and prior periods[21] - The Group's accounting policies remain consistent with those presented in the annual financial statements for the year ended December 31, 2021[18] - The Audit Committee reviewed the accounting principles and practices adopted by the group and discussed internal control procedures and financial reporting matters[126] - The company has complied with the Corporate Governance Practices as set out in Appendix 14 of the Listing Rules throughout the six months ended 30 June 2022[126]

Production Capacity and Sales - Annual paper production capacity across various locations totals approximately 5.59 million tons, including 2.30 million tons in Guangdong and 1.12 million tons in Jiangsu[4][5][6][7][8]. - Sales volume for packaging paper reached 33,403 thousand tons, while tissue paper sales volume was 700 thousand tons[15]. - The total annual production capacity of consumer tissue paper reached 900,000 tons, with plans to expand production lines at the Jiangxi plant[26]. - The Group's total sales for the year amounted to 6.34 million tons, with a net profit per ton of HK$513[17]. - The Group has expanded its presence in Southeast Asia, establishing production facilities in Vietnam, Malaysia, and Indonesia[19]. Financial Performance - The company reported total equity of HK$35,000 million, reflecting a strong financial position[15]. - In 2021, the Group recorded total revenue of HK$32.5 billion, representing an increase of 25.7% from the previous year[17]. - The profit for the year decreased by 11.0% to HK$3.25 billion due to rising costs, with net profit attributable to ordinary shareholders at HK$3.12 billion[17]. - The earnings per share for the year were HK71.87 cents, down from HK80.99 cents in 2020[17]. - Total assets increased to HK$52.45 billion in 2021, while total liabilities were HK$19.05 billion[16]. Market Expansion and Strategy - Future outlook includes plans for market expansion in Southeast Asia, particularly in Vietnam and Malaysia[3]. - The company is exploring potential mergers and acquisitions to strengthen its market presence in the Asia-Pacific region[3]. - The Group aims to optimize its industrial chain to diversify its paper and pulp business and improve operational stability[19]. - The Group aims to enhance profitability and maintain competitiveness in the paper manufacturing industry by leveraging its leading position and expanding market scale[23]. Environmental Initiatives - Environmental initiatives are being prioritized, with a commitment to sustainable practices in paper production[3]. - The Group 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[100]. - The Group has invested resources in developing environmentally friendly production technologies to respond to climate changes and protect factory workers[98]. - The Group's environmental protection strategies prioritize prevention and integrated governance to minimize pollution and damages[179]. - The Group encourages public participation and accountability in its environmental protection efforts[179]. Corporate Governance - The company plans to enhance its corporate governance framework to align with international standards[3]. - The Company complied with the Code on Corporate Governance Practices throughout the year, ensuring sound governance practices[31]. - The Audit Committee reviewed the Group's consolidated financial statements for the year ended December 31, 2021, discussing auditing and internal controls[33]. - The Board focuses on the overall strategic development and financial performance of the Group[40]. - The Company emphasizes the importance of effective corporate governance through independent non-executive directors[39]. Risk Management - The risk management framework includes the Board, Audit Committee, and Risk Management Taskforce, ensuring effective risk management aligned with strategic objectives[73]. - The Board is responsible for the overall effectiveness of risk management and internal control systems, with annual assessments of significant risks[73]. - The Group has established a risk management structure involving the Board, Audit Committee, and a risk management team, which is responsible for assessing and overseeing risk management and internal control systems[76]. - Risk management and internal control reports are submitted to the Audit Committee and the Board at least annually, ensuring ongoing monitoring and timely remediation of significant deficiencies[75]. Employee Relations and Welfare - The workforce consisted of over 11,000 employees, with competitive salaries and annual performance-based bonuses[30]. - The company maintains a 40-hour work week to ensure reasonable working hours and employee well-being[140]. - Employees enjoy various types of leave, including annual leave, sick leave, and maternity leave, along with medical insurance and performance-based bonuses[139]. - The Group achieved zero work-related fatalities in 2021, maintaining a consistent record over the past three years[167]. - The Group is committed to treating noises and air emissions in accordance with national standards[167]. Training and Development - The Group has customized a training management system to align employee development with company needs, focusing on joint growth[171]. - The training programs include admission training, internal safety training, and environmental protection knowledge, aimed at enhancing employee skills and workplace safety[174]. - The Group finances top-up degree training for production technicians, enhancing their professional knowledge and skills[174]. - In 2021, 61% of male employees and 54% of female employees received training, a decrease from 86% and 83% in 2020 respectively[175]. Community Engagement and Social Responsibility - The Group has launched and funded charity projects to fulfill its corporate social responsibility towards the poor and disabled[98]. - The Group continues to increase investment in public service and community initiatives[100]. - The Group's commitment to quality products and services has been acknowledged through various accolades, reflecting its dedication to both operational excellence and environmental protection[123]. - The Group has established an ESG task force led by senior management to manage ESG risks and opportunities and monitor performance regularly[107].

Financial Performance - Revenue for the six months ended June 30, 2021, was HK$15,180,233, an increase of 37.5% compared to HK$11,070,855 in the same period of 2020[7] - Gross profit for the period was HK$3,337,836, representing a gross margin of 22%[7] - Profit for the period reached HK$2,000,183, a 42.8% increase from HK$1,400,873 in the previous year[7] - Total comprehensive income for the period was HK$2,585,932, significantly up from HK$196,077 in the same period last year[7] - Profit for the period attributable to owners of the Company increased to HK$1,935,969, representing a 45% increase from HK$1,336,120 in 2020[8] - Total comprehensive income attributable to owners of the Company rose to HK$2,521,682, up from HK$131,424 in the previous year, marking a significant increase[8] - Earnings per share improved to HK$44.54, compared to HK$30.68 in 2020, indicating a 45% increase[8] - The profit for the period was HK$1,935,969,000, with a comprehensive income of HK$2,585,932,000 for the six months ended June 30, 2021[15] - The profit for the period rose by 42.8% to HK$2.0 billion, with earnings per share reaching HK$44.54 cents, up from HK$30.68 cents in 2020[77] Income and Expenses - Other income increased to HK$392,801, compared to HK$343,203 in the previous year, reflecting a growth of 14.5%[7] - Distribution and selling expenses rose to HK$503,774, up from HK$307,664, indicating a 63.7% increase[7] - Finance costs decreased to HK$32,784 from HK$81,164, showing a reduction of 59.6%[7] - The income tax expense recognized in profit or loss for the six months ended June 30, 2021, was HK$332,391, compared to HK$240,807 for the same period in 2020, representing an increase of about 38.0%[41] - Total employee benefit expenses amounted to HK$825,998,000, up from HK$591,595,000 in the previous year, reflecting a 39.5% increase[43] - General and administrative expenses increased to HK$724 million, accounting for 4.8% of revenue, compared to 4.5% in the previous year, also due to Southeast Asia market expansion[92] Assets and Liabilities - Current assets increased to HK$14,647,255 from HK$12,002,566, showing a growth of approximately 22%[10] - Non-current assets rose to HK$36,545,208, up from HK$34,797,925, reflecting a growth of about 5%[10] - The company reported a net current assets value of HK$1,980,515, down from HK$3,417,804, indicating a decrease in liquidity[11] - Trade receivables increased to HK$3,682,011,000 from HK$3,296,960,000, representing an increase of 11.7%[51] - Trade and bills payables increased to HK$1,626,168,000 as of June 30, 2021, up from HK$1,455,188,000 as of December 31, 2020, representing an increase of 11.7%[54] - Other payables rose significantly to HK$456,723,000 from HK$219,753,000, marking a 107.5% increase[54] - Outstanding bank borrowings increased to HK$13,990 million from HK$11,327 million at the end of 2020, with a net debt-to-equity ratio rising from 0.33 to 0.38[99] Market and Business Expansion - The company is focused on expanding its market presence and enhancing product offerings to drive future growth[6] - The Group is targeting the Southeast Asian market for international development, with new production capacities introduced in Vietnam, Malaysia, and Indonesia[82] - The tissue paper business has maintained steady growth, with an annual production capacity of about 900,000 tons[83] - The second paper-making machine in the Malaysian plant has an annual production capacity of 350,000 tons and was put into production in April 2021[84] - The Group has acquired a Cambodian company to further expand its local paper-making business[84] Dividends and Shareholder Information - Dividends paid increased to HK$782,396 from HK$565,063, reflecting a 38.5% growth[8] - The Company declared an interim dividend of HK$0.15 per share, an increase from HK$0.12 per share in 2020, marking a 25% rise[45] - 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 31.27% of the issued share capital[106] Compliance and Governance - The Company complied with the Model Code for Securities Transactions throughout the six months ended June 30, 2021[113] - The Company has adopted the Corporate Governance Practices code and complied with it during the reporting period[114] - The Audit Committee reviewed the Group's unaudited interim financial statements for the six months ended June 30, 2021[116]

Production Capacity - Annual paper production capacity across various locations totals approximately 5.59 million tons, including 590,000 tons in Dongguan, 1.12 million tons in Jiangsu, and 2.30 million tons in Guangdong[4][5][6] - Tissue paper production capacity is 110,000 tons in Guangdong, 180,000 tons in Chongqing, and 210,000 tons in Vietnam, contributing to a total of 400,000 tons of pulp board production capacity[6][7][8] - The tissue paper business has reached an annual capacity of 900,000 tons, focusing on improving product quality and meeting consumer demands[19] - Future guidance indicates a targeted increase in production capacity by 10% over the next fiscal year to meet growing market demand[15] - The Group's annual production capacities in Guangdong, Jiangsu, Chongqing, and Vietnam accounted for over 72% of total production, employing thousands of workers[92] Financial Performance - The company reported a sales volume of 5.519 million tons for packaging paper and 663,000 tons for tissue paper in the latest fiscal year[15] - Total equity for the company stands at HK$30,750 million, reflecting a strong financial position[15] - The Group recorded total revenue of HK$25.87 billion in 2020, a decrease of 4.7% from the previous year, while net profit increased by 10.7% to HK$3.65 billion[17] - Revenue for the year ended December 31, 2020, was HK$25.87 billion, with a net profit attributable to owners of HK$3.52 billion, resulting in a net profit per tonne of HK$587[23] - The earnings per share for the year were HK$0.8099, compared to HK$0.7395 in 2019[17] Market Expansion and Strategy - The company is focused on expanding its market presence in Southeast Asia, particularly in Malaysia and Indonesia, to enhance production capabilities[3][8] - Strategic acquisitions are being considered to bolster market share and expand product offerings in the packaging sector[3] - The Group plans to expand its production capacities in Southeast Asia, targeting countries like Vietnam, Malaysia, and Indonesia as part of its international development strategy[18] - The packaging paper business is benefiting from the rise in online consumption and the implementation of plastic limit orders in Mainland China[20] Operational Efficiency and Development - New product development initiatives are underway, particularly in the tissue paper segment, to meet increasing consumer demand[7] - The company aims to improve operational efficiency through technological advancements in production processes[3] - The Group is committed to optimizing its industrial chain to diversify its paper and pulp businesses[18] Corporate Governance - The company has complied with the Code on Corporate Governance Practices as set out in Appendix 14 of the Listing Rules throughout the year[31] - The Board consists of three executive directors, one non-executive director, and three independent non-executive directors, focusing on the overall strategic development of the Group[38] - All directors confirmed compliance with the Model Code for Securities Transactions throughout the year ended December 31, 2020[34] - The Audit Committee reviewed the Group's consolidated financial statements for the year ended December 31, 2020, discussing accounting principles and internal controls[33] Risk Management - The Group has established a risk management framework involving the Board, Audit Committee, and Risk Management Taskforce to effectively manage risks across business operations[70] - The Risk Management Taskforce identifies and prioritizes significant risks at least annually, establishing risk mitigation plans and assigning risk owners[70] - An independent professional advisor is engaged for internal audit services to assist in monitoring the effectiveness of risk management and internal control systems[71] Employee Welfare and Development - The Group maintained a workforce of over 9,300 employees, with competitive salaries and annual reviews based on market conditions[29] - The Group has established an employee welfare fund to assist employees in emergency situations, enhancing employee support[153] - The Group actively supports employee development through training and personal development plans tailored to individual performance[143] - Employees enjoy various benefits including medical insurance, annual leave, and bonuses based on performance and the Group's profit[144] Environmental, Social, and Governance (ESG) Initiatives - The Group's ESG performance is reported based on principles of materiality, quantitative measurement, balance, and consistency[96] - The Group implemented pandemic prevention measures to safeguard employee health and resumed production to ensure the supply of household paper[100] - The Group launched charity projects to fulfill corporate social responsibility, aiding the poor and disabled[101] - The Group's governance structure is continually optimized to promote the implementation of ESG initiatives[99] Safety and Compliance - The Group achieved zero work-related fatalities in 2020, maintaining a consistent record from previous years[171] - The Group has established a comprehensive safety management policy, requiring strict adherence to safety protocols and regular inspections[168] - The Group has not reported any material breaches of safety laws and regulations during the year[175] Training and Development - The Group's training programs include targeted training for potential management candidates, ensuring a pipeline of future leaders[179] - The average training hours for mid-level staff and management rose to 3.10 hours in 2020 from 1.00 hour in 2019[184] - In 2020, 86% of male employees and 83% of female employees received training, showing an increase from 83% and 82% in 2019 respectively[181] Environmental Impact and Goals - The company aims to reduce overall air emissions by 2%, wastewater by 1%, and non-hazardous waste by 2% over the next five years, using 2019 figures as a baseline[103] - The Group's effective wet desulfurization facility reduced sulphur dioxide emissions to much less than 400 mg/m3, complying with national standards[199] - The Group is committed to satisfying all applicable environmental protection laws and regulations, with no breaches reported during the year[197]

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$11,070,855, a decrease of 14.5% compared to HK$12,946,828 in 2019[7] - Gross profit for the same period was HK$2,165,644, down from HK$2,337,144, reflecting a gross margin of approximately 19.6%[7] - Profit for the period was HK$1,400,873, a decline of 16.6% from HK$1,680,082 in 2019[7] - Total comprehensive income for the period was HK$196,077, significantly lower than HK$1,229,589 in 2019, reflecting a decrease of 84.0%[8] - Earnings per share for the period were HK$30.68, down from HK$38.35 in 2019, indicating a decrease of 20.4%[8] - For the six months ended June 30, 2020, the profit for the period was HK$1,336,120,000, reflecting a significant performance despite challenges[14] - The profit for the period attributable to the owners of the Company was HK$1,336,120,000, a decrease of 20.5% compared to HK$1,680,082,000 in the same period last year[41] - Net profit for the same period decreased by 16.6% to HK$1.40 billion, with net profit attributable to owners of the Company at HK$1.34 billion[68] Dividends and Shareholder Returns - The company declared an interim dividend of HK$521,597, compared to HK$569,400 in the previous year, representing a decrease of 8.4%[8] - Dividends recognized as distributions totaled HK$565,063,000, demonstrating the company's commitment to returning value to shareholders[14] - The Board proposed an interim dividend of HK$0.12 per share, down from HK$0.13 in 2019[63] - During the six months ended June 30, 2020, the Company repurchased 20,166,000 shares at an aggregate consideration of approximately HK$95,861,000[102] - All repurchased shares were cancelled during the reporting period, enhancing the earnings per share for the company[105] Assets and Liabilities - As of June 30, 2020, total non-current assets amounted to HK$31,044,887, an increase from HK$31,006,643 as of December 31, 2019[10] - Current assets decreased to HK$11,897,754 from HK$12,490,764, with inventories rising to HK$3,826,901 from HK$3,571,075[10] - Net current assets dropped to HK$2,758,854 compared to HK$4,030,531 in the previous period[11] - Total liabilities decreased to HK$33,803,741 from HK$35,037,174, with non-current liabilities at HK$8,250,717 down from HK$8,954,554[11] - Cash and cash equivalents at the end of the period were HK$2,237,058, down from HK$4,201,622[13] - The company reported a decrease in trade and other payables to HK$2,794,352 from HK$2,832,628[10] - The company’s perpetual capital securities decreased to HK$23,229,987 from HK$23,759,487[11] - Current assets were HK$11,898 million and current liabilities were HK$9,139 million, resulting in a current ratio of 1.30, down from 1.48 at the end of 2019[90] - Outstanding bank borrowings increased to HK$12,657 million from HK$12,336 million as of December 31, 2019, leading to a net debt-to-equity ratio rise from 0.36 to 0.41[90] Expenses and Costs - Distribution and selling expenses increased to HK$307,664 from HK$272,222, an increase of 13.0%[7] - Total employee benefit expenses amounted to HK$504,804,000, slightly down from HK$596,482,000 in the previous year[39] - General and administrative expenses rose to HK$502 million, accounting for 4.5% of revenue, compared to 3.5% in the prior year, also attributed to Southeast Asia market expansion[83] - The Group's total finance costs decreased to HK$167 million from HK$190 million, primarily due to a reduction in average interest rates on bank borrowings[84] Market and Strategic Developments - The paper manufacturing industry continues to face pressure due to ongoing US-China trade tensions and rising production costs[71] - The Group is committed to developing a vertical business model by consolidating upstream resources, including pulp manufacturing and waste paper recycling[71] - The tissue paper business has maintained steady growth, with existing capacity reaching 900,000 tons annually[75] - The Group aims to target the Southeast Asia market for international development and increase new production capacity as part of its strategy[74] - The Group intends to enhance profitability and maximize returns to shareholders while maintaining a focus on environmental protection and sustainability[77] Compliance and Governance - The company applied amendments to HKFRSs, which had no material impact on financial positions and performance for the current and prior periods[21] - The principal accounting policies remained consistent with those presented in the Group's annual financial statements for the year ended December 31, 2019[17] - The Group's financial statements were prepared in accordance with HKAS 34 Interim Financial Reporting, ensuring compliance with relevant standards[16] - The Audit Committee reviewed the accounting principles and practices adopted by the group, including the unaudited interim financial statements for the six months ended June 30, 2020[106] - The company has complied with the Model Code for Securities Transactions throughout the reporting period, ensuring adherence to the required standards[106]

Financial Performance - Revenue for FY2019 was HK$27,144,210, a decrease of 15.7% from HK$32,208,082 in FY2018[19] - Profit for the year in FY2019 was HK$3,300,265, down from HK$4,880,220 in FY2018, representing a decline of 32.3%[20] - For the year 2019, total revenue was HK$27.14 billion, a decrease of 15.7% compared to the previous year[22] - Net profit decreased by 32.4% to HK$3.30 billion, with earnings per share at HK73.95 cents, down from HK109.92 cents in 2018[22][35] - The Group's total sales volume for 2019 was 6.29 million tons, with a net profit per ton of HK$525[22][35] Assets and Liabilities - Total assets as of December 31, 2019, were HK$43,497,407, compared to HK$42,776,828 in 2018, showing a slight increase of 1.7%[21] - Total liabilities decreased to HK$17,414,787 in FY2019 from HK$19,630,977 in FY2018, a reduction of 11.3%[21] - As of 31 December 2019, total shareholders' funds increased to HK$26,083 million from HK$23,146 million in 2018[39] - Outstanding bank borrowings decreased to HK$12,336 million as of 31 December 2019 from HK$13,790 million in 2018[39] - The Group's net debt-to-equity ratio decreased from 0.51 as of 31 December 2018 to 0.36 as of 31 December 2019[39] Production Capacity - The annual production capacity for Guangdong Lee & Man is 2.30 million tons of paper and 110,000 tons of tissue paper[7] - The annual production capacity for Jiangsu Lee & Man is 1.12 million tons of paper[6] - The annual production capacity for Dongguan Lee & Man is 590,000 tons of paper[5] - The new tissue production lines with a capacity of 100,000 tons at the Jiangxi plant have commenced operation, becoming a new growth driver for the Group[30] Market Strategy - The company plans to expand its market presence in Southeast Asia, particularly in Vietnam and Malaysia, to enhance production capabilities[4] - The Group aims to optimize its industrial chain and diversify its paper and pulp businesses in response to market changes[28][29] - The Group plans to target the Southeast Asia market for international development and increase new production capacity as part of the "Belt & Road" initiatives[28][29] Challenges and Risks - The ongoing US-China trade friction has led to a substantial increase in production costs, affecting consumer confidence[26][27] - The packaging paper business remains core, but has faced challenges due to waste paper import restrictions and the impact of the US-China trade war[31] Corporate Governance - The Audit Committee reviewed the Group's consolidated financial statements for the year ended December 31, 2019, discussing accounting principles and internal controls[43] - All directors confirmed compliance with the Model Code for Securities Transactions throughout the year ended December 31, 2019[44] - The Board comprises three executive directors, one non-executive director, and three independent non-executive directors, focusing on the Group's overall strategic development[48] - The Company adheres to high standards of corporate governance, essential for growth and protecting shareholder interests[45] Environmental, Social, and Governance (ESG) Initiatives - The ESG Report for 2019 includes additional focus on climate change, global warming, and employment, with targets set for certain environmental key performance indicators[88] - The Group has enhanced its focus on climate change and social issues, establishing measurable key performance indicators for environmental and social performance[91] - The Group aims to produce sustainable products while reducing emissions through ongoing investment in technology research and development[93] - Stakeholder engagement is prioritized, with seven key groups identified to gather opinions and expectations regarding ESG performance[104] Employee Welfare and Safety - The Group fully complies with the Labour Law and Labour Contract Law of the People's Republic of China, ensuring employees receive compensation, holidays, and occupational safety[124] - The Group has established policies to provide a high-quality work environment, ensuring fairness and respect for employees' rights[124] - The Group has implemented a whistleblowing mechanism for employees to report violations, ensuring independent investigations[119] - The Group's commitment to environmental protection and product quality is reflected in its operational principles[112] Training and Development - The Group's employee training and development plans are tailored based on performance, experience, and job duties to foster talent growth[128] - The Group has established a comprehensive safety education and training mechanism, requiring employees to meet pre-set training hours annually[152] - The Group's training programs include management trainee programs to develop potential successors for management positions[162] Environmental Compliance - The Group adheres to the "Law of the People's Republic of China on Environmental Protection" and other relevant laws to govern its operations[167] - The Group has implemented various environmental protection policies and measures to fulfill its environmental responsibilities[170] - The Group has not found any material breaches of environmental protection laws and regulations during the year[175] Waste Management - The Group has established a "Guidelines for Waste Management" to classify and manage waste produced during paper-making operations[193] - The Group aims for 100% compliance with the waste processing standards set by Guangdong Province for solid, liquid, and hazardous waste[196] - In 2019, the Group generated 189,685.27 tonnes of paper-making residue, a decrease from 360,246.44 tonnes in 2018[197]