Financial Performance - The Group recorded a slight profit for the full year of 2020, rebounding from a loss in the first half due to a significant drop in domestic demand and raw material shortages [15]. - Revenue fell substantially in the first half of 2020 compared to the first half of 2019, but increased sharply in the second half as the Chinese economy recovered [13]. - In 2020, the Group recorded a revenue decrease of HK$153.7 million, representing a fall of 12.9% from HK$1,194.1 million in 2019 to HK$1,040.4 million in 2020 [33]. - The average selling price and sales volume rebounded in the second half of 2020, with revenue rising by 120.7% compared to the first half of 2020 and by 19.9% compared to the second half of 2019 [27]. - The gross profit increased from HK$115.3 million in 2019 to HK$127.9 million in 2020, representing an increase of 10.9%, with gross profit margin rising from 9.7% to 12.3% [34]. - Profit for the year was HK$1.4 million in 2020, compared to a loss of HK$7.9 million in 2019, representing an increase of profit by HK$9.3 million [41]. - The Group's main raw materials costs were slightly lower in 2020 compared to 2019, despite an increase in finance costs due to higher borrowing levels [29]. Cash and Liquidity - The Group's balance sheet ended 2020 with a net cash position, with total bank balances and cash exceeding total bank borrowings [15]. - As of December 31, 2020, the Group's bank balances and cash were HK$291.5 million, with over 80% held in Renminbi [42]. - As of December 31, 2020, the Group's bank borrowings increased from HK$216.9 million in 2019 to HK$282.6 million in 2020, with a net cash level of HK$8.9 million compared to HK$75.4 million in 2019 [43][47]. - The Group's net current assets rose to HK$265.8 million in 2020 from HK$186.6 million in 2019, resulting in a current ratio of 1.7, up from 1.5 in the previous year [44][47]. Production and Operations - The Group's corrugated packaging business primarily relies on domestic sales in China, which faced challenges due to the pandemic and government restrictions on waste paper imports [12]. - A new production line for converting waste paper into pulp was officially started in the second half of 2020 to secure raw materials for production [19]. - The Group plans to lease a new facility for a larger pulp line, expected to start trial operations at the end of 2021, to meet production needs and comply with import regulations [20]. - The Group plans to install a new large-scale pulp production line in the Philippines, expected to commence trial production by the end of 2021, to meet raw material needs and comply with import regulations [24]. - The Group aims to improve production processes and reduce wastage while controlling costs to mitigate rising operating expenses [22]. - The Group's focus remains on enhancing production efficiency, increasing sales volume, and reducing raw material and energy wastage to improve overall earnings [50][52]. Economic Outlook - The outlook for 2021 indicates that the Chinese economy will face pressure from the Sino-US trade war, but the Group remains optimistic about government policies supporting economic growth [21]. - The Group anticipates a global economic recovery in 2021, driven by mass vaccinations, which is expected to boost demand for corrugated packaging in China [50][52]. Corporate Governance - The Company has adopted the principles and code provisions of the Corporate Governance Code as the basis of its corporate governance practices [83]. - The Company has established a corporate governance framework and policies based on the Corporate Governance Code to enhance oversight on business conduct [84]. - The Company has complied with all code provisions of the Corporate Governance Code for the year ended December 31, 2020, except for provisions A.2.1, B.1.2, and C.3.3 [85]. - The Company has adopted a code of conduct regarding Directors' dealings in the Company's securities, which is no less exacting than the Model Code [86]. - All Directors have confirmed compliance with the Model Code and the Code of Conduct throughout the year ended December 31, 2020 [87]. - The Company has established written guidelines for employees regarding securities transactions, which are no less exacting than the Model Code [92]. - The Company has a senior management team with extensive experience in the corrugated packaging industry, including Mr. Tsui Yung Wai as General Manager [75]. - The Board currently comprises six Directors, consisting of three Executive Directors and three Independent Non-executive Directors [94]. - The Board consists of at least three Independent Non-executive Directors, representing one-third of the Board, with one possessing appropriate professional qualifications or financial management expertise [101]. Risk Management - The Company has developed various risk management procedures and guidelines for key business processes, including financial reporting and project management [173]. - Internal control assessments are conducted regularly across all divisions to identify risks impacting the business [174]. - The management has reported to the Board on the effectiveness of the risk management and internal control systems for the year ended December 31, 2020 [175]. - The Internal Audit Department is responsible for reviewing the adequacy and effectiveness of the risk management and internal control systems [176]. - The Company has implemented effective risk management and internal control systems, covering financial, operational, and compliance controls for the year ended December 31, 2020 [177]. Shareholder Engagement - The Company engages with shareholders through various communication channels to safeguard their interests and rights [189]. - Shareholders holding at least one-tenth of the paid-up capital can requisition an extraordinary general meeting for specified business transactions [193]. - The Company will reimburse reasonable expenses incurred by requisitionists if the Board fails to convene a requested extraordinary general meeting within 21 days [193]. - Detailed procedures for shareholders to propose a person for election as a Director are available on the Company's website [195].

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$324,394,000, a decrease of 45.5% compared to HK$596,889,000 for the same period in 2019[12]. - Gross profit for the same period was HK$26,934,000, down 61.6% from HK$70,278,000 in 2019[12]. - Loss before taxation was HK$27,670,000, compared to a profit of HK$3,098,000 in the previous year[12]. - Loss attributable to owners of the Company for the period was HK$27,852,000, compared to a profit of HK$1,720,000 in 2019[12]. - Total comprehensive loss for the period attributable to owners was HK$58,357,000, compared to a comprehensive income of HK$1,931,000 in 2019[14]. - The company reported a loss for the period of HK$27,852,000, compared to a profit of HK$1,720,000 for the same period in 2019, indicating a significant downturn[22]. - The Group reported a segment loss of HK$11,573,000 for the first half of 2020, compared to a segment profit of HK$24,487,000 in the same period of 2019[56][59]. - The Group recorded a loss of HK$27.9 million in the first half of 2020, compared to a profit of HK$1.7 million in the same period of 2019[130]. Assets and Liabilities - Non-current assets decreased to HK$1,411,999,000 as of June 30, 2020, from HK$1,435,759,000 at the end of 2019[16]. - Current assets increased to HK$608,752,000 as of June 30, 2020, compared to HK$561,511,000 at the end of 2019[16]. - Total equity attributable to owners of the company decreased to HK$1,473,827,000 from HK$1,531,283,000, reflecting a decline of 3.8%[22]. - The company's unsecured bank borrowings increased significantly to HK$168,242,000 from HK$33,593,000, marking a rise of 400.0%[20]. - Total assets less current liabilities rose to HK$1,699,320,000 from HK$1,622,387,000, reflecting an increase of 4.7%[20]. - Unsecured bank borrowings increased to HK$328,174,000 as of June 30, 2020, compared to HK$216,856,000 as of December 31, 2019, reflecting an increase of approximately 51%[104]. Cash Flow - Operating cash flows before movements in working capital were HK$21,791,000, down 59.0% from HK$53,131,000 in the previous year[28]. - Cash generated from operations was negative at HK$21,340,000, contrasting sharply with positive cash flow of HK$115,768,000 in the prior year[28]. - Net cash used in investing activities was HK$51,370,000, which is an increase from HK$42,137,000 in the previous year, indicating higher investment outflows[29]. - The net cash from financing activities was HK$104,935,000, compared to a net cash outflow of HK$6,441,000 in the same period last year[31]. - Cash and cash equivalents at 30th June 2020 were HK$322,182,000, up from HK$285,656,000 at the end of the previous year, indicating an increase of 12.8%[31]. - Total cash and cash equivalents increased to HK$322.2 million as of June 30, 2020, up from HK$292.3 million at the end of 2019[133]. Inventory and Receivables - Inventories rose to HK$128,945,000 as of June 30, 2020, from HK$93,861,000 at the end of 2019[16]. - Trade and other receivables decreased to HK$106,039,000 as of June 30, 2020, from HK$168,833,000 at the end of 2019[16]. - Trade receivables decreased to HK$94,084,000 as of June 30, 2020, from HK$146,560,000 as of December 31, 2019[89]. - The average age of trade receivables increased to 68 days as of June 30, 2020, compared to 49 days as of December 31, 2019[94]. Segment Performance - The external sales for Containerboard segment were HK$98,902,000, while the Corrugated Packaging segment generated HK$225,492,000[56]. - Revenue from containerboard sales decreased by 67% and revenue from corrugated packaging sales fell by 25% compared to the first half of 2019[122]. - Containerboard and corrugated packaging accounted for 30% and 70% of revenue, respectively, with equipment utilization at 35% and 40%[122]. Corporate Governance and Shareholder Information - The Company did not engage its Auditor to review the financial information in its interim report, leading to a deviation from Code Provision C.3.3[189]. - The Remuneration Committee reviews and makes recommendations on the remuneration packages of Directors only, not senior management, which is a deviation from Code Provision B.1.2[189]. - The Company has adopted a code of conduct for Directors' dealings in the Company's securities that is no less exacting than the Model Code for Securities Transactions[194]. - The Group employed around 1,000 full-time staff as of June 30, 2020, maintaining the same workforce level as of December 31, 2019[180]. Future Outlook - The Group anticipates a subdued global economy in the second half of 2020 due to the COVID-19 pandemic and ongoing Sino-US trade tensions[139]. - The Group aims to improve production efficiency and reduce costs to enhance long-term profitability despite rising operational costs[141]. - A new pulp production line is under construction in Southeast Asia, expected to start production by the end of 2020, to meet upstream raw material requirements[140].

Financial Performance - The group's other expenses for the year ended December 31, 2019, amounted to approximately HKD 18,200,000, a decrease of 23.5% from HKD 23,700,000 in 2018[2] - The total other expenses for 2019 were HKD 18,168,000 compared to HKD 23,665,000 in 2018, indicating a significant reduction[3] Expense Breakdown - Breakdown of other expenses includes: China other taxes at HKD 6,652,000 (down from HKD 11,585,000), depreciation at HKD 8,936,000 (up from HKD 6,876,000), legal and professional fees at HKD 1,280,000 (up from HKD 942,000), and other expenses at HKD 1,300,000 (down from HKD 4,262,000)[3] Strategic Developments - The company has not disclosed any new product developments or technological advancements in this announcement[4] - There are no updates on market expansion or mergers and acquisitions in the provided information[4] - The board of directors remains unchanged as of the announcement date, with no new strategic initiatives mentioned[4]

Financial Performance - The Group's overall sales volume remained stable in 2019, but average selling prices declined, leading to a decrease in revenue[18]. - The Group recorded a loss for the year due to insufficient waste paper for production and less reduction in recurring expenses, despite a decline in raw material prices[18]. - The Group recorded a revenue decrease of HK$229.8 million in 2019, representing a fall of 16.1% from HK$1,423.9 million in 2018 to HK$1,194.1 million in 2019[30]. - Gross profit declined from HK$200.2 million in 2018 to HK$115.3 million in 2019, representing a 42.4% decrease, with gross profit margin falling from 14.1% to 9.7%[31]. - The Group recorded a loss of HK$7.9 million in 2019, compared to a profit of HK$30.5 million in 2018, representing a decrease of HK$38.4 million[37]. - The company recorded a loss of HK$7.9 million for the year ended December 31, 2019, a decrease of HK$38.4 million compared to a profit of HK$30.5 million in 2018, resulting in a profit margin drop from 2.1% to -0.7%[42]. Financial Position - The Group maintained a healthy financial position with total bank balances and cash exceeding total bank borrowings at the end of 2019[18]. - As of December 31, 2019, the Group's bank balances and cash were HK$292.3 million, an increase from HK$219.4 million in 2018[38]. - The Group's net cash level was HK$75.4 million, calculated as total bank balances and cash less total bank borrowings[39]. - The Group's current ratio decreased to 1.50 from 1.64 in 2018, with net current assets at HK$186.6 million[39]. - The company’s current assets net value and current ratio were HK$186.6 million and 1.50, respectively, down from HK$262.8 million and 1.64 in 2018[43]. Production and Operations - A new production site in Southeast Asia is under construction to convert waste paper into pulp, expected to start production in mid-2020, to meet Chinese government import requirements[19]. - The Group plans to improve production processes and reduce wastage to alleviate rising operating costs and provide high-quality products[21]. - The Group plans to relocate part of its production process overseas to ensure sufficient raw materials for corrugated paper production, with new facilities expected to start operations by mid-2020[23]. - The company plans to install new production facilities in Southeast Asia to convert waste paper into pulp, aiming to reduce production costs and increase sales volume[46]. - The company aims to improve production efficiency and reduce raw material wastage and energy use to offset rising costs and enhance profitability[46]. Market Conditions - The Chinese corrugated packaging industry faced a decline in production volume and sales due to a 30-40% reduction in waste paper imports in 2019[12]. - The Group anticipates that the Chinese economy will remain under pressure from the Sino-US trade war and the novel coronavirus in the first half of 2020[20]. - The Renminbi exchange rates in 2019 were significantly lower than in 2018, negatively impacting the corrugated packaging industry[14]. - Average selling prices fell, leading to a 28.7% decline in downstream revenue, while upstream revenue rose by 3.6% despite lower prices[26]. - The average price of the main raw material, waste paper, fell by approximately 20% compared to 2018 levels[27]. Corporate Governance - The Group's management is committed to maintaining high corporate governance standards to safeguard shareholder interests and enhance corporate value[84]. - The Company has adopted the principles and code provisions of the Corporate Governance Code as the basis of its corporate governance practices[85]. - The Board believes that throughout the year ended December 31, 2019, the Company has complied with all code provisions except for specific provisions A.2.1, B.1.2, and C.3.3[87]. - The Company has established a corporate governance framework and policies based on the CG Code to enhance oversight on business conduct[86]. - The Company has adopted its own code of conduct regarding Directors' dealings in the Company's securities, aligning with the Model Code for Securities Transactions[88]. Board and Management - The Company has a senior management team with extensive experience in the corrugated packaging industry, enhancing operational efficiency[78]. - The Group's executive team includes members with over 35 years of experience in the corrugated packaging industry, contributing to strategic planning and business development[65]. - The Board consists of six Directors, including three Executive Directors and three Independent Non-executive Directors[97]. - The Company has received written annual confirmation from each Independent Non-executive Director regarding their independence, in accordance with the independence guidelines[105]. - The Independent Non-executive Directors are appointed for a specific term of around two years, subject to renewal after the expiry of the current term[106]. Risk Management - The Board reviewed the effectiveness of risk management and internal control systems for the year ended December 31, 2019, and deemed them effective and adequate[181]. - The Company has established various risk management procedures and guidelines across key business processes, including project management and financial reporting[171]. - The management reported to the Audit Committee and the Board on the effectiveness of risk management and internal control systems for the year ended December 31, 2019[173]. - All divisions conduct regular internal control assessments to identify risks impacting business operations, regulatory compliance, and information security[172]. - The Company has a disclosure policy to guide Directors and management in handling confidential information and monitoring disclosures[182]. Shareholder Engagement - The Company engages with shareholders through various communication channels to safeguard their interests and rights[191]. - Shareholders have the right to propose matters for discussion at general meetings, requiring at least 10% of the paid-up capital to call for an extraordinary general meeting[195]. - The company will publish detailed procedures for shareholders to propose candidates for election as Directors on its website[198]. - Shareholders can submit written inquiries to the Board, but verbal or anonymous inquiries will not be addressed[199]. - The company has established communication channels to engage with shareholders and ensure their rights are protected[194].

Financial Performance - Revenue for the six months ended June 30, 2019, was HK$596,889,000, a decrease of 6.6% compared to HK$638,922,000 for the same period in 2018[11]. - Gross profit for the period was HK$70,278,000, down 22.3% from HK$90,532,000 in the previous year[11]. - Profit before taxation decreased significantly to HK$3,098,000, compared to HK$24,209,000 for the same period in 2018, representing a decline of 87.2%[11]. - Profit attributable to owners of the Company was HK$1,720,000, a decrease of 91.5% from HK$20,206,000 in the prior year[11]. - Total comprehensive income for the period attributable to owners was HK$1,931,000, down 96.9% from HK$61,739,000 in the same period last year[13]. - Earnings per share decreased to HK$0.21 from HK$2.54, reflecting a decline of 91.7%[13]. - EBITDA decreased by HK$20.6 million, from HK$71.0 million to HK$50.4 million, while profit for the period dropped by 91.6%, from HK$20.2 million to HK$1.7 million[122]. Assets and Liabilities - Non-current assets as of June 30, 2019, were HK$1,417,637,000, slightly up from HK$1,415,531,000 at the end of 2018[16]. - Current assets decreased to HK$587,524,000 from HK$673,846,000, a decline of 12.8%[16]. - Inventories decreased significantly to HK$138,738,000 from HK$258,661,000, a reduction of 46.3%[16]. - Bank balances and cash increased to HK$285,656,000 from HK$219,398,000, an increase of 30.1%[16]. - As of June 30, 2019, the total equity attributable to owners of the Company increased to HK$1,564,776,000, up from HK$1,550,222,000 at the end of 2018, representing a growth of approximately 0.9%[19]. - The net current assets as of June 30, 2019, were HK$254,745,000, a slight decrease from HK$262,817,000 at the end of 2018[19]. - The total assets less current liabilities as of June 30, 2019, were HK$1,672,382,000, slightly down from HK$1,678,348,000 at the end of 2018[19]. - The Company’s unsecured bank borrowings increased to HK$175,333,000 as of June 30, 2019, from HK$166,333,000 at the end of 2018, representing an increase of approximately 5.9%[19]. - Total bank borrowings decreased to HK$208.4 million as of June 30, 2019, down from HK$221.1 million at the end of 2018, with a gearing ratio falling from 14.3% to 13.3%[128]. Cash Flow - Operating cash flows before movements in working capital for the six months ended June 30, 2019, were HK$53,131,000, down from HK$62,973,000 in the same period of 2018, indicating a decline of about 15%[27]. - Cash generated from operations for the six months ended June 30, 2019, was HK$115,768,000, compared to a cash usage of HK$101,553,000 in the same period of 2018, showing a significant turnaround[27]. - The net cash used in financing activities was HK$6,441,000, compared to a net cash generated of HK$10,110,000 in the previous year[29]. - The cash and cash equivalents at June 30, 2019, were HK$285,656,000, an increase from HK$219,398,000 at January 1, 2019[29]. Operational Highlights - The Group's manufacturing operations are all located in the People's Republic of China[43]. - The Group faced challenges in the corrugated packaging business due to the trade war between China and the US, leading to a decline in demand and increased costs from overseas purchases[109]. - The fluctuation in the Renminbi exchange rate impacted the Group's cost structure, with the currency appreciating slightly in Q1 2019 but falling back in Q2[110]. - The Group's inventory levels decreased significantly due to a lack of wastepaper for production, reflecting the challenges in the supply chain[114]. - The Group plans to move some production processes overseas to address raw material shortages and intends to build new plants to convert wastepaper into pulp for delivery to China[133]. - The Group aims to implement technological improvements on production lines to produce higher value-added products and mitigate cost pressures[135]. Shareholder Information - As of June 30, 2019, Mr. Hui Sum Ping holds 124,844,681 shares, representing approximately 15.26% of the issued share capital of the company[140]. - Mr. Hui Sum Tai owns 150,556,430 shares, accounting for about 18.41% of the issued share capital[142]. - The total issued share capital of Hop Fung GM is HK$3,000,100, divided into 100 ordinary shares and 3,000,000 non-voting deferred shares[149]. - The total number of shares that may be issued upon exercise of all options under the share option scheme must not exceed 10% of the shares in issue at the time of the scheme's adoption[163]. - The number of shares that may be issued upon exercise of all outstanding options shall not exceed 30% of the issued share capital at any time[163]. - The share option scheme was approved on June 3, 2013, to incentivize selected participants for their contributions to the Group[161]. Governance and Compliance - The Company has met the corporate governance code provisions throughout the six months ended June 30, 2019, with some deviations noted[182]. - The Audit Committee has met with the Company's Auditor once during the six months ended 30th June, 2019, instead of the required twice a year[198]. - The Company did not purchase, sell, or redeem any of its listed securities during the six months ended 30th June, 2019[193]. - The Company did not recommend the payment of an interim dividend for the six months ended June 30, 2019, consistent with the previous year[180].

Financial Performance - The Group's revenue declined sharply in 2018, while the cost of sales increased simultaneously [19]. - The Group's revenue decreased by HK$99.3 million, representing a 6.5% decline from HK$1,523.2 million in 2017 to HK$1,423.9 million in 2018 [28]. - Gross profit dropped from HK$405.5 million to HK$200.2 million, a decrease of 50.6%, with gross profit margin falling from 26.6% to 14.1% [33]. - Profit for the year declined from HK$137.7 million to HK$30.5 million, representing a decrease of 77.9% [35]. - The average cost of wastepaper rose by over 30% in 2018 compared to 2017, leading to a 9.5% increase in cost of sales from HK$1,117.7 million to HK$1,223.6 million [29]. - Sales volume fell by 10% due to raw material shortages, while the average selling price increased [25]. Financial Health - The net gearing ratio remains low at 0.1%, indicating a healthy financial situation despite the challenges faced [19]. - The Group's net gearing ratio was 0.1% as of December 31, 2018, with total unsecured bank borrowings increasing from HK$155.9 million to HK$221.1 million [37]. - The Group's net current assets were HK$262.8 million, with a current ratio of 1.64 as of December 31, 2018 [42]. - The Group's net current assets were HKD 262.8 million, down from HKD 299.2 million in 2017, with a current ratio of 1.64 compared to 1.76 in 2017 [47]. Market Conditions - The Group anticipates a slowdown in global trade and the Chinese economy due to the Sino-US trade war [20]. - The corrugated packaging industry in China faced significant pressure due to increased prices of imported wastepaper and domestic supply shortages [12]. - The Group anticipates a slight decline in overall demand due to a slowdown in the global and Chinese economies [45][49]. Strategic Initiatives - The Group will focus on improving production processes and reducing wastage to combat rising operating costs [21]. - The Group aims to leverage its vertically integrated business model for sustainable long-term earnings growth [21]. - To address raw material shortages, the Group is considering overseas pulp purchases or establishing pulp production lines abroad to reduce production costs and increase sales [45][49]. - The Group aims to improve production efficiency, increase sales volume, and reduce raw material wastage and energy use to counter rising costs and enhance profitability [45][49]. - The Group's strategy includes exploring overseas locations for new facilities to secure raw material supply [14]. Corporate Governance - The company has established a corporate governance framework based on the Corporate Governance Code, ensuring compliance with all provisions except for A.2.1, B.1.2, and C.3.3 [81][87]. - The Board consists of six Directors, including three Executive Directors and three Independent Non-executive Directors, meeting the Listing Rules requirements [91][97]. - The company has a senior management team with over 23 years of experience in the corrugated packaging industry, enhancing operational oversight [72][75]. - The company has implemented strict guidelines for securities transactions by Directors and employees, ensuring compliance throughout the year [82][84]. - The company has maintained high corporate governance standards to safeguard shareholder interests and enhance corporate value [79]. Risk Management - The Board is responsible for evaluating and determining the nature and extent of risks in achieving the Company's strategic objectives [166]. - The Company has developed various risk management procedures and guidelines for key business processes [167]. - Internal control assessments are conducted regularly to identify risks impacting the Group's business [168]. - The management reports to the Audit Committee and the Board on the effectiveness of risk management and internal control systems [169]. - The Board, supported by the Audit Committee, reviewed the risk management and internal control systems for the year ended December 31, 2018, and deemed them effective and adequate [178]. Shareholder Engagement - The company engages with shareholders through various communication channels to safeguard their interests and rights [188]. - Shareholders holding at least one-tenth of the paid-up capital may requisition an extraordinary general meeting within two months of deposit [190]. - Detailed procedures for shareholders to propose a person for election as a Director are published on the company's website [196]. - Shareholders must provide their full name, contact details, and identification when submitting written requisitions or enquiries [198].