[Company Information](index=2&type=section&id=Company%20Information) This section provides fundamental details about Weili Holdings Limited, an investment holding company primarily engaged in manufacturing and selling cigarette packaging paper in China [Company Basic Information](index=2&type=section&id=Company%20Basic%20Information) Weili Holdings Limited is an investment holding company incorporated in the Cayman Islands, listed on the Main Board of the Hong Kong Stock Exchange (Stock Code: 2372), primarily engaged in the manufacturing and sale of cigarette packaging paper in China - The Company is an investment holding company, with its subsidiaries primarily engaged in the manufacturing and sale of cigarette packaging paper in the People's Republic of China[46](index=46&type=chunk) - The Company's shares have been listed on the Main Board of The Stock Exchange of Hong Kong Limited since June 30, 2022, under stock code **2372**[46](index=46&type=chunk)[23](index=23&type=chunk) [Interim Condensed Consolidated Financial Statements](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's interim financial performance, financial position, and cash flows for the period, along with detailed notes on key accounting items [Interim Condensed Consolidated Statement of Profit or Loss](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss) For the six months ended June 30, 2024, the company reported revenue of RMB 57.061 million, a 10.2% decrease year-on-year, while net loss narrowed from RMB 3.864 million to RMB 2.263 million due to reduced administrative expenses, resulting in a basic loss per share of RMB 0.3 cents Interim Condensed Consolidated Statement of Profit or Loss | Indicator | H1 2024 (Unaudited) | H1 2023 (Unaudited) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 57,061 Thousand RMB | 63,631 Thousand RMB | -10.2% | | Gross Profit | 5,027 Thousand RMB | 5,202 Thousand RMB | -3.4% | | Operating Loss | (3,273) Thousand RMB | (4,765) Thousand RMB | Loss narrowed | | Loss for the Period | (2,263) Thousand RMB | (3,864) Thousand RMB | Loss narrowed | | Basic and Diluted Loss Per Share | (0.3) Cents RMB | (0.5) Cents RMB | Loss narrowed | [Interim Condensed Consolidated Statement of Financial Position](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets were RMB 309.6 million, a 15.2% decrease from year-end 2023, while total liabilities significantly decreased by 36.7% to RMB 91.7 million, with total equity remaining stable at RMB 217.9 million and net current assets at RMB 173.6 million Interim Condensed Consolidated Statement of Financial Position | Balance Sheet Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **309,645 Thousand RMB** | **365,136 Thousand RMB** | **-15.2%** | | Non-current Assets | 45,916 Thousand RMB | 46,045 Thousand RMB | -0.3% | | Current Assets | 263,729 Thousand RMB | 319,091 Thousand RMB | -17.4% | | **Total Liabilities** | **91,698 Thousand RMB** | **144,926 Thousand RMB** | **-36.7%** | | Current Liabilities | 90,136 Thousand RMB | 143,342 Thousand RMB | -37.1% | | **Total Equity** | **217,947 Thousand RMB** | **220,210 Thousand RMB** | **-1.0%** | [Interim Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2024, net cash used in operating activities expanded to RMB 16.485 million, net cash used in investing activities was RMB 0.844 million, and net cash used in financing activities was RMB 10.65 million primarily due to bank loan repayments, leading to a decrease in period-end cash and cash equivalents to RMB 67.168 million Interim Condensed Consolidated Statement of Cash Flows | Cash Flow Item | H1 2024 (Unaudited) | H1 2023 (Unaudited) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (16,485) Thousand RMB | (7,148) Thousand RMB | | Net Cash Used in Investing Activities | (844) Thousand RMB | (419) Thousand RMB | | Net Cash Used in Financing Activities | (10,650) Thousand RMB | - | | Net Decrease in Cash and Cash Equivalents | (27,979) Thousand RMB | (7,567) Thousand RMB | | Cash and Cash Equivalents at End of Period | 67,168 Thousand RMB | 102,897 Thousand RMB | [Notes to the Interim Condensed Consolidated Financial Information](index=11&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Information) The financial notes detail accounting policies, financial risk management, segment information, and specific components and changes of financial statement items, highlighting the company's single business segment with all revenue from China, high customer concentration, extended trade receivables aging, and disclosures on asset pledges and related party transactions [Revenue and Segment Information](index=16&type=section&id=5.%20Revenue%20and%20Segment%20Information) The Group's business is considered a single operating segment, manufacturing and selling cigarette packaging paper in China, with all revenue derived from external customers in China and high customer concentration, as the top two customers contributed 60% of revenue - Management considers the business as a single segment for resource allocation and performance assessment, with all operations and revenue generated in China[62](index=62&type=chunk)[63](index=63&type=chunk) Customer Revenue Contribution | Customer | H1 2024 Revenue Contribution | H1 2023 Revenue Contribution | | :--- | :--- | :--- | | Customer 1 | 41% | 17% | | Customer 2 | 19% | 23% | | Customer 3 | * | 15% | | Customer 4 | * | 12% | *This customer contributed less than 10% of total revenue in the respective period. [Trade Receivables](index=23&type=section&id=14.%20Trade%20Receivables) As of June 30, 2024, net trade receivables decreased to RMB 105 million from RMB 132 million at year-end, yet the proportion of receivables over 180 days significantly increased from 24.5% to 36.5% based on aging analysis Trade Receivables Aging Analysis | Aging | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Within 30 days | 29,459 Thousand RMB | 58,064 Thousand RMB | | 31 to 90 days | 19,367 Thousand RMB | 24,871 Thousand RMB | | 91 to 180 days | 21,176 Thousand RMB | 21,037 Thousand RMB | | 181 days to 1 year | 35,996 Thousand RMB | 7,496 Thousand RMB | | Over 1 year | 4,192 Thousand RMB | 26,226 Thousand RMB | | **Total** | **110,190 Thousand RMB** | **137,694 Thousand RMB** | [Bank Borrowings](index=28&type=section&id=21.%20Bank%20Borrowings) As of June 30, 2024, the Group's secured bank borrowings decreased to RMB 19.8 million from RMB 30 million at year-end, denominated in RMB, repayable within one year, with a weighted average effective annual interest rate of 3.56% - As of June 30, 2024, total bank borrowings amounted to **RMB 19.8 million**, all of which were secured, representing a decrease from **RMB 30 million** at December 31, 2023[116](index=116&type=chunk) - The weighted average effective annual interest rate for bank borrowings was **3.56%**, lower than **3.65%** at December 31, 2023[116](index=116&type=chunk) [Dividends](index=29&type=section&id=23.%20Dividends) The Board did not recommend the declaration of any interim dividend for the six months ended June 30, 2024, consistent with the prior period - The company did not declare any interim dividend for the six months ended June 30, 2024[120](index=120&type=chunk) [Management Discussion and Analysis](index=30&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's operational performance, financial results, liquidity, and capital structure, along with future outlook and human resources information [Business Review and Future Outlook](index=30&type=section&id=Business%20Review%20and%20Future%20Outlook) The Group, a cigarette packaging paper manufacturer in China, experienced revenue decline and loss due to temporary order reductions from key customers, which the Board expects to recover in H2 2024, maintaining an optimistic outlook for the industry driven by inelastic demand for tobacco products and growth in mid-to-high-end cigarette markets - During the reporting period, temporary order reductions from certain major customers led to a decrease in the Group's revenue and a recorded loss; the Board anticipates orders to recover in the second half of 2024[122](index=122&type=chunk) - The Board expects a favorable near-term outlook for the cigarette packaging paper industry, driven by inelastic demand for tobacco products, increased demand for mid-to-high-end cigarettes, and enhanced purchasing power of Chinese citizens[122](index=122&type=chunk) [Financial Review](index=31&type=section&id=Financial%20Review) The Group's H1 2024 revenue decreased by 10.2% year-on-year to RMB 57.1 million, primarily due to reduced key customer orders, while sales costs decreased by 11.0%, gross margin slightly rose from 8.2% to 8.8%, and significantly lower administrative expenses, coupled with income tax credits, narrowed net loss from RMB 3.9 million to RMB 2.3 million Financial Review Summary | Item | H1 2024 | H1 2023 | Reason for Change | | :--- | :--- | :--- | :--- | | Revenue | 57.1 Million RMB | 63.6 Million RMB | Temporary reduction in key customer orders | | Gross Profit | 5.0 Million RMB | 5.2 Million RMB | Decrease in sales orders | | Gross Margin | 8.8% | 8.2% | Sales costs decreased proportionally with revenue | | Administrative Expenses | 7.3 Million RMB | 8.8 Million RMB | Decrease in product development, staff, and consultant fees | | Loss for the Period | 2.3 Million RMB | 3.9 Million RMB | Reduced administrative expenses and relatively stable gross profit | [Liquidity, Financial Resources and Capital Structure](index=33&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2024, the Group held cash and cash equivalents of approximately RMB 67.2 million and bank borrowings of RMB 19.8 million, with the gearing ratio (total borrowings/total equity) decreasing from 13.6% at year-end 2023 to approximately 9.1%, indicating reduced financial leverage Liquidity and Capital Structure | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 67.2 Million RMB | 95.1 Million RMB | | Bank Borrowings | 19.8 Million RMB | 30.0 Million RMB | | Gearing Ratio | 9.1% | 13.6% | [Use of Proceeds](index=35&type=section&id=Use%20of%20Proceeds) Net IPO proceeds were approximately HKD 90.3 million, with HKD 36.9 million utilized and HKD 53.4 million remaining unutilized as of June 30, 2024; due to temporary customer order reductions, some capacity expansion plans are delayed, with remaining funds expected to be utilized by December 31, 2025 Use of IPO Proceeds | Item | Total Allocation (Million HKD) | Utilized (Million HKD) | Unutilized (Million HKD) | | :--- | :--- | :--- | :--- | | Enhance production capacity and expand product portfolio | 33.3 | 1.3 | 32.0 | | Strengthen R&D capabilities | 17.6 | 0.9 | 16.7 | | Acquire printing and cross-cutting machines | 22.9 | 20.6 | 2.3 | | Others | 16.5 | 14.1 | 2.4 | | **Total** | **90.3** | **36.9** | **53.4** | - Due to temporary reductions in customer orders and revisions to QR code packaging, the company was unable to expand production capacity as originally planned, with the remaining unutilized proceeds expected to be used by the end of 2025[133](index=133&type=chunk) [Employees and Remuneration Policy](index=36&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the Group had 109 employees, a decrease from 117 in the prior period, with total staff costs of approximately RMB 5.6 million, slightly lower than RMB 5.8 million in the prior period, while providing on-the-job training and participating in retirement schemes as required - As of June 30, 2024, the Group's total number of employees was **109**, a decrease of **8** employees compared to the prior period[134](index=134&type=chunk) - Total staff costs for the reporting period were approximately **RMB 5.6 million**, representing a year-on-year decrease of approximately **3.4%**[134](index=134&type=chunk) [Corporate Governance and Other Information](index=37&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section covers the company's adherence to corporate governance standards, details on directors' and major shareholders' interests, share option schemes, and the audit committee's review of financial information [Corporate Governance and Compliance](index=37&type=section&id=Corporate%20Governance%20and%20Compliance) During the reporting period, the company complied with applicable provisions of the Corporate Governance Code, all directors confirmed adherence to the Model Code for securities transactions, and neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities - The company has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules during the reporting period[135](index=135&type=chunk) - All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers[136](index=136&type=chunk) - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[137](index=137&type=chunk) [Directors', Chief Executive's and Major Shareholders' Interests](index=38&type=section&id=Directors%27%2C%20Chief%20Executive%27s%20and%20Major%20Shareholders%27%20Interests) As of June 30, 2024, Chairman Mr. Chan Wai Chong and CEO Mr. Yu Tianbing indirectly held 42.38% and 12.00% of the company's shares respectively, with major shareholders including City Ease Limited and Kai Tung Limited controlled by Mr. Chan, and the company maintained sufficient public float Directors', Chief Executive's and Major Shareholders' Interests | Name/Entity | Capacity/Nature of Interest | Number of Shares Held | Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Chan Wai Chong | Interest in controlled corporation | 339,040,000 (L) | 42.38% | | Mr. Yu Tianbing | Interest in controlled corporation | 96,000,000 (L) | 12.00% | | City Ease Limited | Beneficial owner | 339,040,000 (L) | 42.38% | | Kai Tung Limited | Beneficial owner | 146,960,000 (L) | 18.37% | | Wing Ning Limited | Beneficial owner | 96,000,000 (L) | 12.00% | [Share Option Scheme](index=40&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme on June 2, 2022, and no share options have been granted under the scheme since its adoption, resulting in no outstanding share options as of the end of the reporting period - No share options have been granted under the share option scheme since its adoption[145](index=145&type=chunk) [Review by Audit Committee](index=40&type=section&id=Review%20by%20Audit%20Committee) The interim financial information, though unaudited by external auditors, has been reviewed by the Audit Committee, comprising three independent non-executive directors, who concurred with the accounting treatments adopted and deemed the financial information prepared and disclosed in compliance with relevant standards and requirements - The unaudited interim consolidated financial information for the six months ended June 30, 2024, has been reviewed by the Audit Committee[150](index=150&type=chunk) - The Audit Committee believes that the financial information has been prepared in compliance with applicable accounting standards and requirements and is adequately disclosed[150](index=150&type=chunk)

Financial Performance - For the six months ended June 30, 2024, revenue decreased by approximately 10.2% to about RMB 57.1 million, compared to RMB 63.6 million for the same period in 2023[1] - Gross profit for the same period decreased by approximately 3.8% to about RMB 5.0 million, down from RMB 5.2 million in the prior year[1] - The company recorded a loss attributable to shareholders of approximately RMB 2.3 million, compared to a loss of RMB 3.9 million for the same period in 2023[1] - Basic loss per share for the six months ended June 30, 2024, was approximately RMB 0.3 cents, compared to RMB 0.5 cents for the same period in 2023[1] - Total revenue decreased from approximately RMB 63.6 million for the six months ended June 30, 2023, to approximately RMB 57.1 million for the current reporting period, a decline of about RMB 6.5 million or 10.2%[28] - The total loss and comprehensive loss decreased from approximately RMB 3.9 million to about RMB 2.3 million, mainly due to cost control measures[38] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 309.6 million, down from RMB 365.1 million as of December 31, 2023[5] - Current assets decreased to RMB 263.7 million from RMB 319.1 million at the end of the previous year[5] - Cash and cash equivalents decreased to RMB 67.2 million from RMB 95.1 million as of December 31, 2023[5] - The total equity attributable to shareholders was RMB 217.9 million, slightly down from RMB 220.2 million at the end of 2023[6] - Non-current liabilities decreased to RMB 90.1 million from RMB 143.3 million at the end of the previous year[6] - Trade receivables (net) as of June 30, 2024, were RMB 105,247,000, down from RMB 131,766,000 as of December 31, 2023, indicating a decrease of approximately 20.2%[23] Expenses - Total expenses for the six months ended June 30, 2024, amounted to RMB 61,858 thousand, down from RMB 69,431 thousand in the previous year, reflecting a decrease of 10.1%[15] - The cost of raw materials and goods used was RMB 49,310 thousand, a decrease of 11.5% from RMB 55,879 thousand in the prior year[15] - Employee costs were RMB 5,557 thousand, slightly down from RMB 5,807 thousand, indicating a reduction of 4.3%[15] - Sales expenses increased from approximately RMB 2.2 million to about RMB 2.5 million, an increase of approximately RMB 0.3 million or 13.6%[31] - Administrative expenses decreased from approximately RMB 8.8 million to about RMB 7.3 million, primarily due to reductions in product development costs and employee expenses[32] Taxation and Financial Policies - The group has been granted a preferential income tax rate of 15% as a high-tech enterprise in China for the six months ended June 30, 2024[18] - The group has implemented a 200% super deduction for eligible R&D expenses when determining taxable profits, which may positively impact future financial results[18] - The group expects no significant impact from the adoption of new accounting standards effective from January 1, 2024[10] - The group has not adopted new standards that will take effect in 2025 and 2027, which are not expected to have a significant impact on financial results[10] Shareholder Information - The board has resolved not to declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[1] - The company did not declare any interim dividends for the six months ended June 30, 2024, consistent with the previous year[22] - The company’s director, Mr. Chen, holds 339,040,000 shares, representing 42.38% of the total equity[55] - Director Mr. Yu holds 96,000,000 shares, accounting for 12.00% of the total equity[55] - Major shareholder Cheng Yi Limited owns 339,040,000 shares, which is 42.38% of the total equity[57] - Major shareholder Kai Dong Limited holds 146,960,000 shares, representing 18.37% of the total equity[57] - Major shareholder Yong Ning Limited owns 96,000,000 shares, which is 12.00% of the total equity[57] Employment and Workforce - The group had 109 employees as of June 30, 2024, down from 117 employees a year earlier[49] - Employee costs for the group totaled approximately RMB 5.6 million during the reporting period, compared to RMB 5.8 million in the same period of 2023[49] Corporate Governance - The company has established an audit committee to oversee financial reporting and compliance, consisting of three independent non-executive directors[63] - The audit committee has reviewed the unaudited interim financial results for the six months ending June 30, 2024, and agrees with the accounting treatment adopted by the company[64] - The company confirms compliance with the standard code for securities trading as of June 30, 2024[52] - There are no management or administrative contracts related to significant portions of the company's business during the reporting period[61] Future Outlook - The company anticipates a recovery in orders during the second half of 2024, as the reduction in orders is considered temporary[28] - The company expects stable demand for tobacco products in the foreseeable future, despite government smoking control policies[27] - The company is positioned to benefit from the shift towards mid-to-high-end tobacco products, which typically require advanced packaging materials[27] - The company has a strong R&D capability to provide customized products to its clients in the tobacco packaging industry[27] Capital and Investments - Capital expenditures during the reporting period included approximately RMB 0.6 million for machinery and about RMB 0.4 million for electronic and other equipment[42] - As of June 30, 2024, the group's capital commitments amounted to approximately RMB 2.1 million, an increase from RMB 1.9 million as of December 31, 2023[43] - The group reported no significant contingent liabilities as of June 30, 2024, and December 31, 2023[43] - The group had no major acquisitions or disposals during the reporting period, and there are no significant future investment plans as of June 30, 2024[43] - The group’s net cash available from the IPO, after deducting related expenses, was approximately HKD 90.3 million, with HKD 53.4 million remaining unutilized as of June 30, 2024[47] - The group has pledged assets including properties valued at approximately RMB 10.5 million and machinery valued at RMB 5.9 million as collateral for bank loans as of June 30, 2024[44] Stock Options - The company has adopted a stock option plan, allowing for the issuance of 80,000,000 shares, representing 10% of the issued shares as of January 1, 2024, and June 30, 2024[60] - No stock options have been granted under the stock option plan since its adoption, resulting in no exercised, canceled, or expired options as of June 30, 2024[60] - The company has not set any secondary limits for service providers under the stock option plan[60] Miscellaneous - The company has not reported any new strategies or market expansions in the provided documents[53] - The company expresses gratitude to its management team and employees for their hard work and dedication during the reporting period[66] - The interim report for the six months ending June 30, 2024, will be published in accordance with listing rules[65] - The company has not engaged in any purchases, sales, or redemptions of its listed securities[53] - The group has no significant events occurring after the reporting period[50]

Financial Performance - The total revenue for the fiscal year 2023 was approximately RMB 1.909 billion, a decrease of approximately RMB 981 million or 33.9% compared to RMB 2.890 billion in fiscal year 2022[10]. - Gross profit fell from approximately RMB 604 million in fiscal year 2022 to about RMB 176 million in fiscal year 2023, a decrease of approximately RMB 428 million or 70.9%[10]. - The gross profit margin decreased from approximately 20.9% in fiscal year 2022 to about 9.2% in fiscal year 2023[10]. - The company recorded a net loss attributable to shareholders of approximately RMB 26 million in fiscal year 2023, compared to a profit of approximately RMB 250 million in fiscal year 2022[10]. - The group reported a total comprehensive loss of approximately RMB 2.6 million in FY2023, compared to a profit of approximately RMB 25.0 million in FY2022, mainly due to the decrease in revenue and gross profit[27]. Cost Management - Sales costs decreased from approximately RMB 2.285 billion in fiscal year 2022 to about RMB 1.733 billion in fiscal year 2023, a reduction of approximately RMB 552 million or 24.1%[18]. - Sales expenses decreased from approximately RMB 9.1 million in FY2022 to approximately RMB 8.2 million in FY2023, primarily due to reduced shipping costs from lower sales volume and increased marketing expenses related to new tenders[20]. - Administrative expenses decreased from approximately RMB 30.0 million in FY2022 to approximately RMB 17.7 million in FY2023, mainly due to a reduction in listing expenses of about RMB 7.1 million and a decrease in R&D expenses of about RMB 4.8 million[21]. Market Outlook - The decline in orders was primarily due to a temporary reduction in orders from several major customers, attributed to the National Tobacco Monopoly Administration's revision of cigarette packaging policies[17]. - The company anticipates stable demand for tobacco products in the foreseeable future, despite government smoking control policies[11]. - There is an expected increase in demand for mid-to-high-end cigarettes due to rising purchasing power among Chinese citizens[11]. - The company aims to develop effective strategies to increase market share in the evolving tobacco packaging industry[14]. Capital Expenditures and Financial Position - Capital expenditures for FY2023 amounted to approximately RMB 22.4 million, significantly up from approximately RMB 0.7 million in FY2022, primarily for the purchase of property, plant, and equipment[34]. - As of December 31, 2023, the group had cash and cash equivalents totaling approximately RMB 95.1 million, down from approximately RMB 110.3 million as of December 31, 2022[31]. - The group recorded a net provision for financial asset losses of approximately RMB 2.0 million in FY2023, compared to a reversal of approximately RMB 0.9 million in FY2022, primarily due to an increase in the total value of trade receivables and a rise in expected loss rates[22]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules, ensuring compliance as of December 31, 2023[69]. - The board of directors consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[72]. - The company provides ongoing professional development for directors to ensure they are informed and compliant with corporate governance codes[88]. - The board has established mechanisms to ensure strong independence, including appointing at least three independent non-executive directors[81]. Employee and Remuneration Policies - The company has 113 employees as of December 31, 2023, a decrease from 117 employees in the previous year[46]. - The remuneration range for senior management members (excluding directors) for the year ending December 31, 2023, includes three individuals earning up to RMB 1,000,000[106]. - The company is committed to providing competitive and fair remuneration to attract and retain high-quality employees[109]. Shareholder Communication and Dividend Policy - The company emphasizes effective communication with shareholders to enhance investor relations and transparency[127]. - The board of directors has proposed not to declare a final dividend for the year ending December 31, 2023[161]. - The company has adopted a dividend policy aimed at balancing shareholder interests with prudent capital management, with no predetermined dividend payout ratio[160]. Risk Management and Compliance - The company has implemented sufficient and effective risk management and internal control systems to ensure effective business operations[121]. - The audit committee is responsible for reviewing the integrity of the company's financial statements and the effectiveness of its internal controls[97]. - The company has no significant or systemic non-compliance issues with relevant laws and regulations as of December 31, 2023[152].

Financial Performance - For the year ended December 31, 2023, revenue decreased by approximately 33.9% to about RMB 190.9 million, compared to RMB 289.0 million in 2022[3] - For the same period, gross profit fell by approximately 70.9% to about RMB 17.6 million, down from RMB 60.4 million in 2022[3] - The company recorded a loss attributable to shareholders of approximately RMB 2.6 million, compared to a profit of RMB 25.0 million in 2022[3] - Basic loss per share for the year was approximately RMB 0.3 cents, compared to basic earnings of RMB 3.6 cents per share in 2022[3] - The total revenue for the year ended December 31, 2023, was RMB 190,944 thousand, a decrease from RMB 288,962 thousand in 2022, representing a decline of approximately 34%[29] - Revenue from the sale of cigarette packaging paper and raw materials was RMB 190,752 thousand, down from RMB 288,726 thousand in the previous year, indicating a significant drop of about 34%[29] - The group recorded a net loss of approximately RMB 2.6 million in FY2023, compared to a profit of about RMB 25.0 million in FY2022, mainly due to the decrease in revenue and gross profit[72] Dividends and Shareholder Returns - The board has resolved not to recommend the payment of a final dividend for the year ended December 31, 2023[3] - The company did not declare or pay any dividends for the year ended December 31, 2023, consistent with 2022[46] - The board has resolved not to recommend the payment of final dividends for fiscal years 2022 and 2023[87] Assets and Liabilities - Total assets increased to RMB 365.1 million in 2023 from RMB 322.8 million in 2022[12] - Total liabilities rose to RMB 144.9 million in 2023 from RMB 100.0 million in 2022[12] - The net current assets decreased to RMB 175.7 million in 2023 from RMB 198.6 million in 2022[12] - As of December 31, 2023, the net book value of property, plant, and equipment is RMB 21,941,000, a decrease from RMB 24,362,000 in 2022, reflecting a reduction of approximately 10%[47] - The total inventory as of December 31, 2023, is RMB 57,726,000, compared to RMB 55,718,000 in 2022, indicating an increase of about 3.6%[49] - Trade receivables as of December 31, 2023, amount to RMB 137,694,000, an increase from RMB 111,346,000 in 2022, which is an increase of about 23.6%[52] - Trade payables as of December 31, 2023, are RMB 69,599,000, up from RMB 62,221,000 in 2022, reflecting an increase of approximately 11.5%[54] Expenses and Cost Management - The company reported a significant reduction in administrative expenses, which decreased to RMB 17.7 million from RMB 30.0 million in 2022[5] - Total expenses for the year 2023 amounted to RMB 199,244 thousand, a decrease of 25.5% from RMB 267,595 thousand in 2022[33] - Research and development expenses decreased to RMB 7,267 thousand in 2023 from RMB 12,045 thousand in 2022, reflecting a reduction of 39.5%[33] - The company recorded a decrease in material and goods costs to RMB 166,123 thousand in 2023 from RMB 226,471 thousand in 2022, a reduction of 26.7%[33] - The cost of sales for the year ended December 31, 2023, is RMB 169,245,000, down from RMB 227,756,000 in 2022, representing a decrease of approximately 25.7%[50] Operational Insights - The company operates primarily in China, with all business activities conducted within this market during the reporting period[28] - The company has a single operating segment for strategic decision-making purposes, focusing on the manufacturing and sales of cigarette packaging paper[28] - The company anticipates stable demand for tobacco products despite government smoking control policies, with an expected increase in demand for mid-to-high-end cigarette packaging materials[58] - The company plans to continue optimizing resources and developing effective strategies to increase market share in the future[58] - The company has experienced a temporary decrease in orders for transfer paper and composite paper due to regulatory changes in cigarette packaging policies[57] Financial Position and Commitments - As of December 31, 2023, the group had cash and cash equivalents totaling approximately RMB 95.1 million, down from RMB 110.3 million as of December 31, 2022[73] - The group's bank borrowings amounted to RMB 30.0 million as of December 31, 2023, compared to zero on December 31, 2022[73] - The capital debt ratio as of December 31, 2023, was approximately 13.6%, compared to zero on December 31, 2022[74] - The group has no significant future investment or capital asset plans as of December 31, 2023[82] - The group has not made any significant investments, acquisitions, or sales involving subsidiaries or joint ventures during fiscal year 2023[83] Employee and Operational Metrics - The group had a total of 113 employees as of December 31, 2023, a decrease from 117 employees on December 31, 2022[88] - Total employee costs for fiscal year 2023 were approximately RMB 12.4 million, compared to RMB 13.7 million in fiscal year 2022, reflecting a decrease of about 9.5%[88] Compliance and Governance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance[18] - The Group's annual performance for the fiscal year 2023 has been reviewed by the Audit Committee, confirming compliance with applicable accounting standards and listing rules[97] - The annual general meeting is scheduled for May 24, 2024, with a suspension of share transfer registration from May 21 to May 24, 2024[98] - There have been no purchases, sales, or redemptions of the company's listed securities as of December 31, 2023[99] - The financial figures in the preliminary announcement for the year ending December 31, 2023, have been agreed upon by the Group's auditor, consistent with the audited consolidated financial statements[102]

WEILI HOLDINGS LIMITED 偉立控股有限公司 （於開曼群島註冊成立的有限公司） 股份代號：2372 中期 報告 Interim Report 中期報告 2023 WEIli Holdings Limited 偉立控股有限公司 偉立控股有限公司 二零二三年中期報告 目 錄 | 公司資料 | 2 | | --- | --- | | 中期簡明綜合收益表 | 4 | | 中期簡明綜合全面收益表 | 5 | | 中期簡明綜合財務狀況表 | 6 | | 中期簡明綜合權益變動表 | 8 | | 中期簡明綜合現金流量表 | 9 | | 中期簡明綜合財務資料附註 | 10 | | 管理層討論及分析 | 31 | | 企業管治及其他資料 | 38 | 偉立控股有限公司 二零二三年中期報告 偉立控股有限公司 二零二三年中期報告 公司資料 董事會 執行董事 陳偉莊先生 （主席） 余天兵先生 （行政總裁） 非執行董事 胡浩然先生 劉一敏先生 （主席） 馮苑女士 余天兵先生 公司秘書 余子敖先生 (HKICPA) 授權代表 獨立非執行董事 劉一敏先生 陳仰德先生 馮苑女士 審核委員會 陳仰德先生 （主席） 劉一敏先生 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不 就因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任 何損失承擔任何責任。 WEIli Holdings Limited 偉 立 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：2372） 截 至2023年6月30日 止 六 個 月 之 中 期 業 績 公 告 中 期 業 績 摘 要 • 截 至2023年6月30日 止 六 個 月，收 益 減 少 約67.5%至 約 人 民 幣63.6百 萬元（截至2022年6月30日止六個月：約人民幣195.5百萬元）。 • 截 至2023年6月30日 止 六 個 月，毛 利 減 少 約88.2%至 約 人 民 幣5.2百 萬元（截至2022年6月30日止六個月：約人民幣43.9百萬元）。 • 截 至2023年6月30日 止 六 個 月，本 集 團 錄 得 本 公 司 股 東 應 佔 虧 損 約 人 民 幣3.9百 萬 元（截 至2022年6月30日 止 六 個 月：本 公 司 股 東 應 佔 溢利約人民幣20.0百萬元 ...

Financial Performance - The total revenue for the fiscal year 2022 was approximately RMB 289.0 million, a decrease of about 22.0% compared to RMB 370.3 million in the fiscal year 2021[11]. - Gross profit for the fiscal year 2022 was approximately RMB 60.4 million, down RMB 21.4 million or 26.2% from RMB 81.8 million in the fiscal year 2021, resulting in a gross margin decrease from 22.1% to 20.9%[11]. - The profit attributable to shareholders for the fiscal year 2022 was approximately RMB 25.0 million, compared to RMB 35.7 million in the fiscal year 2021[11]. - The overall revenue of the company decreased by approximately RMB 81.3 million or 22.0% to about RMB 289.0 million for the fiscal year 2022, compared to approximately RMB 370.3 million for fiscal year 2021[20]. - Total comprehensive income decreased by approximately RMB 10.7 million or 30.0% to about RMB 25.0 million for fiscal year 2022, compared to approximately RMB 35.7 million for fiscal year 2021[31]. - The cost of sales decreased by approximately RMB 60.0 million or 20.8% to about RMB 228.5 million for fiscal year 2022, from approximately RMB 288.5 million in fiscal year 2021[21]. - Employee costs for the fiscal year 2022 totaled approximately RMB 137 million, an increase from RMB 121 million in the previous fiscal year[49]. Operational Challenges - The company faced operational challenges due to power shortages in Hubei Province and COVID-19 restrictions, impacting customer orders and overall performance[15][16]. - The operational adjustments made in response to local government requests during power shortages posed challenges to maintaining optimal production levels[16]. Market Outlook - Future demand for tobacco products is expected to remain stable despite government anti-smoking policies, with an anticipated increase in demand for mid-to-high-end cigarette packaging due to rising consumer purchasing power[12]. - The company expects stable demand for tobacco products in China despite government smoking control policies, with an anticipated increase in demand for mid-to-high-end cigarettes due to rising purchasing power[50]. Corporate Governance - The company adheres to high standards of corporate governance and has complied with the applicable code provisions since the listing date[71]. - The board is responsible for formulating business policies and strategies, ensuring sufficient resources, and the effectiveness of internal control systems[73]. - The board consists of six directors, including two executive directors, one non-executive director, and three independent non-executive directors[74]. - The board is committed to ensuring at least three independent non-executive directors, meeting the independence requirements of the listing rules[80]. - All independent non-executive directors confirmed their independence and there are no circumstances affecting their independence[80]. - The company has established a mechanism to ensure strong independence elements within the board[81]. - The board has adopted a diversity policy to enhance performance quality and support strategic goals[89]. Shareholder Communication - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of the group's operational performance and strategies[126]. - The company has adopted a shareholder communication policy to ensure transparency and timely disclosure of information to facilitate optimal investment decisions[128]. - The company encourages shareholders to provide updated contact information to ensure timely and effective communication[131]. - Shareholders holding at least 10% of the paid-up capital can request the board to convene a special general meeting within two months of the request[122]. - The company has established procedures for shareholders to propose inquiries and convene special meetings, ensuring transparency and shareholder rights[120]. Capital Management - The company decided not to declare a final dividend for fiscal year 2022, while a dividend of approximately RMB 37.9 million was declared for fiscal year 2021[44]. - The company has adopted a dividend policy aimed at balancing shareholder interests with prudent capital management, with no predetermined dividend payout ratio[158]. - The company had cash and cash equivalents totaling approximately RMB 110.3 million as of December 31, 2022, compared to approximately RMB 58.6 million as of December 31, 2021[34]. - The company had no bank borrowings as of December 31, 2022, down from RMB 10.0 million as of December 31, 2021[34]. Board Composition and Diversity - Liu Yimin appointed as independent non-executive director on June 2, 2022, with over 8 years of corporate management experience[60]. - Chen Yangde appointed as independent non-executive director on June 2, 2022, with over 15 years of experience in auditing, accounting, and financial management[63]. - Feng Yuan appointed as independent non-executive director on June 2, 2022, with over 10 years of experience in IT business management[64]. - Li Xiaoli serves as Chief Financial Officer with over 30 years of experience in accounting and financial management[65]. - Bao Zhigang serves as Chief Technology Officer with over 15 years of experience in the paper industry[67]. - Song Zhengmei serves as Chief Product Officer with over 10 years of experience in product quality control[68]. - As of December 31, 2022, the gender ratio of the company's employees (including senior management) is approximately 80:37, indicating a commitment to gender diversity[91]. - The company has established a board diversity policy, ensuring at least one female board member and plans to increase this number over the next five years[90]. Risk Management - The company faced various risks and uncertainties as outlined in the "Risk Factors" section of the prospectus[160]. - The board is responsible for maintaining effective internal controls and risk management systems, ensuring shareholder interests and asset protection[118]. - The audit committee assists the board in reviewing the effectiveness of the internal control and risk management systems, with annual assessments conducted[118]. Related Party Transactions - The group reported that the largest customer accounted for approximately 21.1% of total revenue in the year, down from 25.4% in 2021, while the top five customers represented 74.9% of total revenue, slightly decreasing from 75.4% in 2021[145]. - The group’s largest supplier accounted for about 23.4% of total procurement, an increase from 22.6% in 2021, and the top five suppliers represented approximately 55.8% of total procurement, up from 54.0% in 2021[145]. - The related party transactions disclosed in the financial statements do not meet the definitions of "connected transactions" or "continuing connected transactions" under the listing rules[200].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內 容概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不 就因本公告全部或任何部分內容而產生或因依賴該等內容而引致的任 何損失承擔任何責任。 WEIli Holdings Limited 偉 立 控 股 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：2372） 截 至2022年12月31日 止 年 度 的 年 度 業 績 公 告 財 務 摘 要 • 截 至2022年12月31日 止 年 度，收 益 減 少 約22.0%至 約 人 民 幣289.0百 萬元（2021年：約人民幣370.3百萬元）。 • 截 至2022年12月31日 止 年 度，毛 利 減 少 約26.2%至 約 人 民 幣60.4百 萬 元（2021年：約人民幣81.8百萬元）。 • 截至2022年12月31日止年度，本集團錄得本公司股東應佔溢利約人 民幣25.0百萬元（2021年：約人民幣35.7百萬元）。 • 截至2022年12月31日止年度，每股基本盈利約為人民幣3.6分（2021年： 約人民幣5.9分）。 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 195,529 thousand, a decrease of 6.3% from RMB 208,001 thousand in the same period of 2021[14]. - Gross profit for the same period was RMB 43,888 thousand, down 13.7% from RMB 50,866 thousand in 2021[14]. - Operating profit decreased to RMB 23,590 thousand, a decline of 20.2% compared to RMB 29,548 thousand in the previous year[14]. - Net profit for the period was RMB 19,966 thousand, representing a decrease of 19.5% from RMB 24,865 thousand in 2021[14]. - Basic and diluted earnings per share were RMB 0.03, down from RMB 0.04 in the same period last year[14]. - The company achieved a profit of RMB 19,966 thousand for the six months ended June 30, 2022, compared to a profit of RMB 24,865 thousand for the same period in 2021, showing a decrease of approximately 19.1%[28]. - Total profit and comprehensive income decreased from approximately RMB 24.9 million for the six months ended June 30, 2021, to approximately RMB 20.0 million in the reporting period, a decrease of approximately RMB 4.9 million or 19.7%[147]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 27,056 thousand, a decrease from RMB 28,607 thousand at the end of 2021[19]. - As of June 30, 2022, total assets amounted to RMB 383,058 thousand, an increase from RMB 293,726 thousand as of December 31, 2021, representing a growth of approximately 30.4%[23]. - Total equity reached RMB 218,130 thousand as of June 30, 2022, compared to RMB 100,997 thousand as of December 31, 2021, indicating a significant increase of about 116.5%[28]. - The total liabilities decreased to RMB 164,928 thousand as of June 30, 2022, down from RMB 192,729 thousand as of December 31, 2021, reflecting a reduction of approximately 14.5%[25]. - The company's total liabilities, including trade payables and bank borrowings, amounted to RMB 149,168,000 as of June 30, 2022, compared to RMB 128,258,000 as of December 31, 2021[113]. Cash Flow and Financing - The company reported a net cash inflow from operating activities of RMB 23,802 thousand for the six months ended June 30, 2022, a recovery from a cash outflow of RMB 13,535 thousand in the same period of 2021[30]. - The company incurred financing costs of RMB 209 thousand, a significant decrease from RMB 545 thousand in the previous year[14]. - The company's cash and cash equivalents at the end of the period were RMB 45,925 thousand, a decrease from RMB 58,578 thousand at the beginning of the period, representing a decline of about 21.6%[30]. - The weighted average effective interest rate on bank borrowings was 3.85% as of June 30, 2022, down from 5.32% as of December 31, 2021[116]. Revenue Sources - For the six months ended June 30, 2022, the revenue from cigarette packaging paper sales was RMB 195,283,000, a decrease of 6% from RMB 207,914,000 in the same period of 2021[60]. - The processing service income increased significantly to RMB 246,000, compared to RMB 87,000 in the previous year, marking a growth of 183%[60]. - The company received government subsidies related to revenue amounting to RMB 333,000, while other income totaled RMB 1,078,000 for the first half of 2022, compared to RMB 653,000 in 2021[65]. Operational Challenges - The company faces challenges in operations due to COVID-19 outbreaks and record high temperatures leading to power shortages in key regions[136]. - The company has voluntarily adjusted its operating hours to comply with local government requests to manage electricity supply, which may impact production capacity[136]. Employee and Governance - The total employee cost incurred by the company was approximately RMB 62 million, compared to RMB 60 million for the same period in 2021, reflecting a year-on-year increase of about 3.33%[164]. - The company had a total of 125 employees as of June 30, 2022, up from 114 employees as of June 30, 2021, indicating an increase of approximately 9.65% in workforce size[164]. - The company has complied with the corporate governance code as per the listing rules since its listing date on June 30, 2022[167]. Shareholder Information - As of June 30, 2022, Mr. Chen Wei Zhuang held 339,040,000 shares, representing 42.38% of the company's equity, through a controlled corporation[171]. - Mr. Yu Tian Bing held 96,000,000 shares, representing 12.00% of the company's equity, also through a controlled corporation[171]. - The major shareholder, Cheng Yi, holds 339,040,000 shares, which is 42.38% of the company's equity[176].