Financial Performance - Revenue for 2023 decreased to RMB 2,390,517 thousand, a 20.7% decline compared to RMB 3,013,957 thousand in 2022[7] - Net loss attributable to owners of the company was RMB 17,553 thousand in 2023, compared to a profit of RMB 47,167 thousand in 2022[7] - Return on equity attributable to owners of the company was -1.61% in 2023, down from 4.24% in 2022[7] - Dividend per share decreased to RMB 1.00 cents in 2023 from RMB 1.42 cents in 2022[7] - Total turnover for 2023 was approximately RMB 2,390,517,000, a decrease of 20.69% year-on-year[34] - Gross profit for 2023 was RMB 269,996,000 with a gross profit margin of 11.29%[34] - Loss attributable to owners of the company amounted to RMB 17,553,000, marking the first annual operating loss[34] - The company's total revenue for 2023 was RMB 2,390,517,000, a decrease from RMB 3,013,957,000 in 2022, with a gross profit margin of 11.29% compared to 11.34% in 2022[60] - Revenue for 2023 decreased by 20.69% to RMB 2,390,517,000 compared to RMB 3,013,957,000 in 2022, primarily due to a 24.22% decline in paper product sales[85] - Gross profit for 2023 was RMB 269,996,000, a decrease of 20.99% from RMB 341,730,000 in 2022, with gross profit margin slightly declining from 11.34% to 11.29%[92] - The Group's revenue in 2023 was approximately RMB2,390,517,000, a decrease of 20.69% compared to 2022, mainly due to a 24.22% decrease in sales revenue from the paper production segment[82] - The Group recorded an operation loss for the first time in 2023, with a loss attributable to owners of the Company of RMB17,553,000[83] - The company recorded a net loss attributable to owners of RMB 17,553,000 in 2023, a significant decline from a profit of RMB 47,167,000 in 2022[109] Business Segments Performance - Packaging business gross profit margin increased by 1.07% to 22.57% compared to the previous year[35] - Paper production business operating revenue decreased by 24.22% to RMB 1,728,660,000 in 2023[48] - Gross profit margin for the paper production business decreased to 6.98% from 8.08% in the previous year[48] - The company's paper manufacturing business recorded a revenue of RMB 1,728,660,000 in 2023, a significant decrease of 24.22% compared to RMB 2,281,249,000 in 2022[50] - The gross profit margin of the paper manufacturing business dropped to 6.98% in 2023 from 8.08% in 2022, resulting in an annual loss for the first time[50] - The paper packaging business generated revenue of RMB 661,857,000 in 2023, a decrease of 9.67% from RMB 732,708,000 in 2022[56] - The gross profit margin of the paper packaging business increased to 22.57% in 2023, up by 1.07% from 21.50% in 2022, due to a 21.5% decrease in raw paper prices[56] - Packaging paper gross profit decreased by 34.54% to RMB 120,589,000 in 2023, with gross profit margin dropping from 8.08% to 6.98%[93] - Paper-based packaging products gross profit decreased by 5.14% to RMB 149,407,000 in 2023, but gross profit margin increased from 21.50% to 22.57%[94] - Cost of sales for packaging paper decreased by 23.32% to RMB 1,608,071,000 in 2023[90] Cost Management and Efficiency - Cost reduction measures and improved steam supply from biomass boilers helped reduce energy costs and improve performance in the second half of 2023[28] - The company implemented cost-saving measures and increased biomass boiler steam supply to reduce energy costs[31][45] - Research and development expenses decreased to RMB 90,235,000 in 2023, representing 3.77% of sales revenue, down from 3.86% in 2022[108] - Distribution and selling expenses decreased by 6.26% to RMB 86,334,000 in 2023, mainly due to reduced sales[105] - Administrative expenses increased by 5.57% to RMB 138,972,000 in 2023, driven by higher salaries and staff welfare costs[106] - Finance costs decreased by 12.02% to RMB 52,434,000 in 2023, primarily due to lower bank loan amounts and interest rates[107] Cash Flow and Financial Position - The company maintained a stable capital structure and operating cash flow despite the challenging conditions[28] - The Group's net cash outflow for 2023 was RMB25,925,000, compared to a net cash inflow of RMB50,259,000 in 2022[129] - Operational activity net cash outflow for 2023 was RMB120,773,000, a significant decrease from the net cash inflow of RMB148,762,000 in 2022[124][126] - Net cash outflow for investment activities in 2023 was RMB150,039,000, primarily for the acquisition and construction of long-term assets[124][126] - Net cash inflow from financing activities in 2023 was RMB244,887,000, mainly from borrowings and repayment of borrowings[125][126] - The Group's net gearing ratio decreased to 61.96% in 2023 from 63.78% in 2022[123] - Bank balances and cash decreased to RMB253,915,000 in 2023 from RMB279,840,000 in 2022[123] - Total borrowings decreased to RMB1,022,062,000 in 2023 from RMB1,054,185,000 in 2022[123] - Equity attributable to the owners of the company decreased to RMB1,089,036,000 in 2023 from RMB1,113,689,000 in 2022[123] - If the Group had not applied certain accounting policies, net cash from operating activities would have increased by approximately RMB418,571,000 in 2023[131][133] - Operating cash flows before movements in working capital decreased to RMB150,307,000 in 2023 from RMB244,330,000 in 2022, a decline of 38.5%[137] - Net cash from operating activities decreased to RMB297,798,000 in 2023 from RMB473,389,000 in 2022, a decline of 37.1%[137] - Inventories decreased by 10.09% to RMB205,308,000 in 2023 from RMB228,353,000 in 2022, with inventory turnover days increasing to 37 days from 30 days[143][151] - Trade receivables not backed by bills decreased to RMB304,545,000 in 2023 from RMB423,150,000 in 2022, with turnover days improving to 55 days from 61 days[144][152] - Trade receivables backed by bills increased to RMB476,490,000 in 2023 from RMB324,100,000 in 2022, a significant rise of 47%[145][153] - Trade payables increased to RMB234,277,000 in 2023 from RMB173,872,000 in 2022, with turnover days increasing to 35 days from 19 days[146][154] - Bank and other borrowings decreased slightly to RMB1,022,062,000 in 2023 from RMB1,054,185,000 in 2022[147][155] - Gross gearing ratio improved to 34.15% in 2023 from 35.33% in 2022, while net gearing ratio decreased to 61.96% from 63.78%[148][156] - Capital commitments decreased significantly to RMB12,611,000 in 2023 from RMB36,367,000 in 2022, all related to property, plant, and equipment acquisitions[150][158] Strategic Plans and Future Outlook - The company plans to focus on developing packaging businesses for fast-moving consumer goods and household appliances in 2024[37] - The company aims to establish itself as a competitive leader in integrated paper production and packaging in the Greater Bay Area[37] - The Group plans to invest in R&D for low-grammage high-strength corrugated paper products and expand its customer base in industries such as home appliances and fast-moving consumer goods in 2024[81] - The Group aims to enhance operational efficiency of paper machines and increase market share of low-grammage high-strength corrugated paper products in the Greater Bay Area[81] Operational Challenges and Risks - The company experienced its most challenging year since listing, with slow recovery in domestic demand and exports impacting the paper and packaging industries[28] - The paper production segment recorded an operating loss due to high natural gas costs[28] - The Group faces operational risks from macroeconomic control, particularly due to China's environmental protection policy tightening, which increases costs for the paper packaging industry[172][177] - Fluctuations in raw material prices pose a business risk, as raw material costs account for a high proportion of production costs[173][178] - The Group's packaging business faces fierce market competition, with industry players expanding production capacity and market share[174][179] - Quality risks exist due to potential failure to meet industry product quality standards, leading to batch waste or inventory losses[175][180] Corporate Governance and Board Activities - The Board of Directors comprises nine members, including five Executive Directors, one Non-Executive Director, and three Independent Non-executive Directors, with a balance of skills and experience[189] - The Company has adopted a Share Award Scheme to motivate employees and reward their contributions to the Group[171][176] - The Board consists of 9 members, including 5 executive directors, 1 non-executive director, and 3 independent non-executive directors as of December 31, 2023[193] - Independent Non-executive Director Mr. Chung Kwok-wu has served for more than 9 years, and the Board believes his independence is not affected by tenure[194] - Ms. Chen Wei, appointed as an executive director in 2023, obtained legal advice confirming her understanding of her responsibilities as a director of a listed issuer[195] - The Board held 4 meetings during the financial year, with all directors actively participating in person, via phone, or video conferencing[199] - Regular Board meetings for 2023 were scheduled with at least 14 days' notice, and Board papers were sent to directors at least 3 days before meetings[200] Employee and Workforce Information - The Group had 2,615 employees as of 31 December 2023, an increase from 2,484 employees in 2022, with 495 being engineers and technical staff or employees with higher education backgrounds[163][166] - Total staff costs for 2023 amounted to RMB 287,052,000, compared to RMB 281,497,000 in 2022[163][166] - Employees by function: Management and Administration (397, 15.18%), Sales and Marketing (138, 5.28%), Research and Development in Technology and Engineering (495, 18.93%), Production and Quality Control (1,585, 60.61%)[167] Market and Industry Position - The company operates 8 packaging paper production lines with a total designed annual capacity of 900,000 tons, making it one of the leading packaging paper producers in the Guangdong region[69] - The company's vertically integrated industrial chain includes waste paper recycling, packaging paper manufacturing, and paper-based packaging production, providing a one-stop service solution[66] - The Group's total designed annual capacity for packaging paper reached 900,000 tons, with 8 production lines located in Zhongshan and Jiangxi[70] - The actual operation rate of No. 1 paper machine in Zhongshan Yong Fa was 91.31% in 2023, slightly higher than 91.07% in 2022[71] - The Group's planned annual capacity for corrugated cartons was 191,617,000 square meters, and for honeycomb paper-based products was 11,008,000 square meters[72] - The capacity utilization rate of the new No. 2 corrugated cartons production line in Zhongshan was 91.91% in 2023, up from 78.48% in 2022[76] - The packaging paper segment accounted for 72.31% of total revenue in 2023, with AA grade packaging paper contributing 57.87% of total revenue[60] - The paper-based packaging products segment accounted for 27.69% of total revenue in 2023, with craft cartons contributing 19.30% of total revenue[60] - Home appliance packaging accounted for 75.82% of the paper-based packaging products revenue in 2023, while FMCG packaging accounted for 19.21%[64] Currency and Financial Risks - The Group's revenue and expenditures are primarily in RMB, with minimal exposure to foreign currency fluctuations, and currently does not have a foreign currency hedging policy[162][165]

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 2,390,517, a decrease of 20.7% compared to RMB 3,013,957 in 2022[3] - The company reported a loss attributable to owners of the company of RMB (17,553) for 2023, compared to a profit of RMB 47,167 in 2022, representing a significant decline[3] - Basic loss per share for 2023 was RMB (0.04), compared to earnings of RMB 0.09 per share in 2022[3] - The group reported a pre-tax loss of RMB 17,678 thousand for the year ended December 31, 2023, compared to a pre-tax profit of RMB 76,867 thousand in 2022[25] - The company recorded a net loss attributable to shareholders of RMB 17,553,000 for the year, a decline of 137.21% compared to a profit of RMB 47,167,000 in 2022[76] Profitability Metrics - Gross profit margin for 2023 was 11.29%, slightly down from 11.34% in 2022[3] - The gross profit for the packaging paper segment was RMB 120,589,000 in 2023, down 34.54% from RMB 184,231,000 in 2022, with a gross profit margin of 6.98%[69] - The gross profit margin for the paper business decreased from 8.08% in the previous year to 6.98%, resulting in a gross profit drop of RMB 63,642,000[55] Dividends - The board proposed a final dividend of RMB 0.010 per share, down from RMB 0.0142 per share in 2022[3] - The company declared a final dividend of RMB 1.00 per share for 2023, down from RMB 1.42 per share in 2022, totaling RMB 5,000,000 compared to RMB 7,100,000 in the previous year[41] Expenses and Costs - Research and development expenses decreased to RMB 90,235 in 2023 from RMB 116,388 in 2022, indicating a reduction in investment in new technologies[5] - The group’s depreciation and amortization expenses totaled RMB 122,716 thousand for the year ended December 31, 2023, compared to RMB 127,499 thousand in 2022, reflecting a slight decrease[27][29] - Total financing costs decreased to RMB 52,434,000 in 2023 from RMB 59,600,000 in 2022, representing a reduction of 12.3%[35] Assets and Liabilities - Total assets less current liabilities amounted to RMB 1,651,565 in 2023, down from RMB 1,688,783 in 2022[6] - Current liabilities increased to RMB 1,340,883 in 2023 from RMB 1,294,880 in 2022, reflecting a rise in financial obligations[6] - The company’s equity attributable to owners decreased to RMB 1,089,036 in 2023 from RMB 1,113,689 in 2022, showing a reduction in shareholder value[7] - The total asset-liability ratio as of December 31, 2023, was approximately 34.15%, down from 35.33% on December 31, 2022[86] - As of December 31, 2023, the net debt-to-equity ratio was 61.96%, a decrease from 63.78% on December 31, 2022[86] Revenue Breakdown - The packaging paper segment generated external sales of RMB 1,728,660 thousand, while the paper packaging segment generated RMB 661,857 thousand, contributing to a total segment revenue of RMB 2,467,246 thousand[25] - Revenue from AA-grade corrugated core paper was RMB 1,383,350 thousand in 2023, down from RMB 1,787,161 thousand in 2022, a decline of approximately 22.6%[30] - The packaging division generated revenue of RMB 661,857,000, a decrease of 9.67% from RMB 732,708,000 in the previous year, despite a gross profit margin increase to 22.57% due to a 21.5% drop in raw paper prices[59] Market and Economic Conditions - In 2023, the paper and paper products packaging industry faced significant challenges, with the group's paper business recording an annual loss for the first time due to a 24.22% decline in revenue to RMB 1,728,660,000 compared to RMB 2,281,249,000 in the previous year[55] - The macroeconomic policies in China are expected to support steady recovery, with domestic demand anticipated to continue improving in 2024[60] Compliance and Governance - The audit committee has confirmed that the financial statements for the year ended December 31, 2023, fairly present the financial position and performance of the group[99] - The company has maintained compliance with the public float requirement, with over 25% of shares held by the public[97] Future Outlook - The company plans to continue investing in the development of low-grammage high-strength corrugated paper products and enhance supply chain management to improve product competitiveness in 2024[62] - The group aims to expand its customer base in the home appliance and fast-moving consumer goods sectors while increasing packaging production capacity in the Greater Bay Area[62]

Financial Performance - In the first half of 2023, the Group's sales revenue amounted to RMB 1,164,940,000, a decrease of 26.02% compared to the same period last year [15]. - Total revenue for the period ended June 30, 2023, was RMB 1,164,940,000, down from RMB 1,574,698,000 in the same period of 2022 [30]. - EBITDA for the first half of 2023 was RMB 71,397,000, compared to RMB 154,827,000 in the first half of 2022 [30]. - The profit attributable to the owners of the Company for the period was a loss of RMB 15,583,000, compared to a profit of RMB 41,940,000 in the same period last year [30]. - The Group reported a segment profit of RMB (15,307,000) for the first half of 2023, compared to a profit of RMB 68,074,000 in the same period of 2022 [73][75]. - The Group's loss attributable to equity holders amounted to approximately RMB 15,583,000, compared to a profit of RMB 41,940,000 in the same period of 2022 [187][189]. Gross Profit and Margins - The gross profit margin of the Group's paper manufacturing business dropped significantly by 5.29% year-on-year to 5.88% for the current period [15]. - The Group's gross profit margin for the first half of 2023 was 11.31%, down 2.8% from approximately 14.11% in the same period last year, primarily due to a 5.29% drop in the paper making business's gross profit margin [183][184]. - The gross profit for the same period was RMB 131,706, down 41% from RMB 222,187 year-over-year [39]. - The gross profit margin for the paper-based packaging business was 23.33%, an increase of 1.54% compared to the same period last year, despite lower sales volumes [177][178]. Economic Environment - Global economic growth was weak, with significant impacts on the banking industries in the US and Europe, leading to a lack of confidence that may affect the real economy [14]. - China's economic growth momentum remained weak, with low growth rates in residents' income and consumption expenditure [15]. - The economic environment is expected to remain severe in the second half of 2023, but the Chinese government will implement measures to stimulate private consumption and investment [22]. - The macroeconomic environment remains challenging, with global economic growth slowing and various geopolitical factors impacting market conditions [173]. - The outlook for the global economy remains bleak, with risks of prolonged slow growth due to high inflation and geopolitical tensions [191]. Operational Challenges - The Group recorded an operating loss for the first time in its history due to high energy costs and declining product prices [15]. - Market consumption willingness and consumer demand in China remained weak, affecting the paper and paper products industry [15]. - The decline in the price of raw material wastepaper failed to offset the decline in the price of finished products [15]. - The Group's performance was impacted by extreme climate risks and geopolitical risks threatening global supply chains [14]. - The Group's management anticipates a challenging economic environment ahead, requiring strategic adjustments [14]. Segment Performance - The Group's packaging segment sales revenue decreased by 16.94% to RMB 362,131,000 due to sluggish domestic consumption and export demand, while the gross profit margin increased by 1.54% to 23.33% [18]. - The Group's paper segment sales revenue fell sharply by 29.5% year-on-year to RMB 802,809,000, with a gross profit margin decline of 5.29%, resulting in an operating loss for the first time [21]. - The paper making business reported operating revenue of RMB 802,809,000, a significant decline of 29.50% compared to the previous year, marking the first loss for this segment [180][181]. Cash Flow and Liquidity - Operating cash flows before movements in working capital were RMB 68,953,000, down from RMB 147,859,000 in the previous year, indicating a decline of approximately 53% [47]. - The company experienced a net cash inflow from operating activities of RMB 109,905,000, a substantial increase from RMB 5,435,000 in the same period last year [49]. - Current assets decreased to RMB 1,251,145 from RMB 1,395,212, indicating a reduction in liquidity [40]. - The company reported a net current asset value of RMB 57,744, down from RMB 100,332, indicating a tighter working capital situation [41]. Strategic Initiatives - The Group plans to intensify efforts in developing high-quality color box packaging and enhance technical and marketing capabilities in the second half of 2023 [26]. - The Group will continue to invest in research and development of new papermaking products to provide stable quality and cost-effective products [26]. - The Group is focusing on developing cost-effective new products and implementing cost-saving measures to mitigate financial risks in a challenging market environment [186]. - The Group plans to implement comprehensive measures to reduce headcount, cut costs, and enhance efficiency in the second half of the year [199]. Shareholder Value - Return on equity attributable to the owners of the Company decreased to -1.42% from 3.64% in the previous year [30]. - Total equity attributable to owners of the company decreased to RMB 1,098,106 from RMB 1,113,689, reflecting a decline in shareholder value [43]. - The company did not declare any interim dividends for the six months ended June 30, 2023, consistent with the previous year [93].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 ZHENGYE INTERNATIONAL HOLDINGS COMPANY LIMITED 正 業 國 際 控 股 有 限 公 司 （於百慕達註冊成立的有限公司） （股份代號：3363） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 告 財務摘要 截至六月三十日止六個月 二零二三年 二零二二年 人民幣千元 人民幣千元 收入 1,164,940 1,574,698 毛利率 11.31% 14.11% 稅息折舊及攤銷前盈利 71,397 154,827 本公司擁有人期間應佔全面收益總額 (15,583) 41,940 本公司擁有人期間應佔權益回報率 (1.42%) 3.64% ...

Financial Performance - For the year ended 31 December 2022, the Group recorded a total revenue of approximately RMB 3,013,957,000, representing a decrease of 15.29% year-on-year from RMB 3,558,009,000 in 2021[21]. - Profit attributable to the owners of the Company for the same period was RMB 47,167,000, a significant decrease of 70.67% compared to RMB 160,841,000 in 2021[21]. - The Group's gross profit was RMB 341,730,000, with a gross profit margin of approximately 11.34%, down by 7.69 percentage points year-on-year[21]. - Basic earnings per share for 2022 were approximately RMB 9 cents, compared to RMB 16 cents in 2021[21]. - The Board has recommended a final dividend of RMB 1.42 cents per share, a decrease from RMB 9.00 per share in the previous year[21]. - Return on equity attributable to the owners of the Company was 4.24% in 2022, down from 14.47% in 2021[6]. - The gross profit margin for 2022 was 11.34%, down 7.69 percentage points from 19.03% in 2021, primarily due to decreased market demand and increased energy costs[90]. - The gross profit from packaging paper decreased by 63.37% to RMB 184,231,000 in 2022, with an overall gross profit margin of 8.08%[91]. Market Conditions - The market demand for packaging paper declined due to sluggish consumption, leading to a significant drop in sales prices[20]. - The overall economic environment remains challenging, with short-term uncertainties and long-term structural problems impacting global economic recovery[22]. - The ongoing geopolitical tensions and inflationary pressures have led to a slowdown in domestic exports, consumption, and investment, impacting the packaging industry[44]. - In 2023, the demand from the consumer end is expected to improve, but new policies reducing tariffs on certain finished papers and pulp to zero may lead to lower prices and increased market competition[81]. - The implementation of the "Plastic Restriction Order" in Mainland China is anticipated to boost demand for paper packaging, benefiting the industry[80]. Strategic Initiatives - The Group's management acknowledges the need for strategic adjustments in response to the evolving market conditions[22]. - The Group aims to strengthen digital and intelligent transformation, enhance R&D of new products and materials, and improve product technical content[30]. - The Group plans to strengthen the integration of the packaging and paper production industry chain to create core competitive products that continuously add value for customers in 2023[79]. - The Group is committed to becoming one of the world's leading eco-friendly packaging enterprises, with a focus on innovative design and consistent quality[39]. Production and Capacity - The Group had a total designed annual capacity of 900,000 tons for packaging paper, maintaining its position as one of the leading producers in the Guangdong region[70]. - The actual capacity utilization rate for the No. 1 paper machine in Zhongshan was 91.07% in 2022, compared to 90.99% in 2021[72]. - The total production capacity for corrugated cartons in 2022 was 150,229 '000 sq.m., with a utilization rate of 78.40%, compared to 189,373 '000 sq.m. and 89.69% in 2021[76]. - The Group operates five production lines for paper-based packaging products, including three for corrugated cartons and two for honeycomb products, located in Zhongshan, Zhuhai, and Wuhan[73]. Financial Position - As of December 31, 2022, the group reported net assets of RMB 1,402,556,000, an increase from RMB 1,381,952,000 in 2021[121]. - The total borrowings decreased to RMB 1,054,185,000 in 2022 from RMB 1,191,454,000 in 2021, resulting in a net gearing ratio of 63.78%, down from 78.23%[121]. - The current ratio decreased to 1.08 in 2022 from 1.19 in 2021, indicating a decline in short-term liquidity[121]. - The gross gearing ratio improved to approximately 35.33% as of December 31, 2022, compared to 39.27% as of December 31, 2021[140]. Human Resources - The total number of employees is 2,484, with 1,659 in Production and Quality Control, accounting for 66.79% of the workforce[158]. - The Group's total staff costs for the year ended December 31, 2022, were RMB 281,497,000, down from RMB 323,577,000 for the year ended December 31, 2021[153]. - The number of employees decreased to 2,484 as of December 31, 2022, from 2,812 as of December 31, 2021[153]. - The Group's remuneration packages are linked to financial performance and individual contributions, with a focus on sustainable professional development[160]. Governance and Compliance - The Company has complied with the Corporate Governance Code and Listing Rules throughout the year ended December 31, 2022[175]. - The Board of Directors consists of eight members, ensuring a balanced composition of skills and experience[178]. - The Company promotes a culture of openness, encouraging Directors to voice differing opinions and engage fully in Board affairs[197]. - The Company emphasizes high standards of business ethics and corporate governance across all activities and operations[199].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 ZHENGYE INTERNATIONAL HOLDINGS COMPANY LIMITED 正 業 國 際 控 股 有 限 公 司 （於百慕達註冊成立的有限公司） （股份代號：3363） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 告 財務摘要 截至十二月三十一日止年度 二零二二年 二零二一年 人民幣千元 人民幣千元 收入 3,013,957 3,558,009 毛利率 11.34% 19.03% 稅息折舊及攤銷前盈利 263,428 417,080 本公司擁有人年內應佔全面收益總額 47,167 160,841 本公司擁有人應佔權益回報率 4.24% 14.47% ...

Financial Performance - For the six months ended June 30, 2021, the Group's turnover was approximately RMB 1,609,364,000, representing a significant increase of 63.8% year-on-year compared to RMB 982,522,000 for the same period in 2020[23]. - The gross profit for the same period was RMB 303,187,000, with a gross profit margin of approximately 18.84%, compared to RMB 140,098,000 in the previous year[23]. - Profit and comprehensive income attributable to equity owners amounted to approximately RMB 51,633,000, a significant increase of RMB 42,890,000 year-on-year[23]. - Revenue for the six months ended June 30, 2021, was RMB 1,609,364, an increase of 63.7% compared to RMB 982,522 in 2020[29]. - EBITDA for the same period was RMB 166,708, up from RMB 85,335 in 2020, representing a growth of 95.5%[29]. - Profit attributable to the owners of the company for the period was RMB 51,633, compared to RMB 8,743 in 2020, marking a significant increase of 590.5%[29]. - Return on equity attributable to the owners of the company improved to 5.08% in 2021 from 0.94% in 2020[29]. - Total comprehensive income for the period was RMB 67,623, significantly higher than RMB 7,520 in 2020[41]. - For the six months ended June 30, 2021, profit before tax was RMB 78,880, compared to the restated profit before tax of RMB 30,616 in the same period of 2020[56]. Production and Operations - The Group's paper production increased by more than 50% due to the completion of upgrades at two papermaking bases in Zhongshan City, Guangdong Province[22]. - The increase in raw paper prices in the first half of the year contributed to the significant year-on-year increase in turnover, reaching a record high[22]. - The Group aims to strengthen the integration of the paper packaging and papermaking industry chain while controlling quality and costs to maintain competitive advantages in the market[25]. - The company is focusing on internal management integration and enhancing the paper packaging and paper production industry chain[27]. - The management team is actively seeking new business growth opportunities to create higher returns for shareholders[27]. Assets and Liabilities - Current assets increased to RMB 1,728,367 as of June 30, 2021, from RMB 1,402,887 at the end of 2020[44]. - Non-current assets rose to RMB 1,324,369 as of June 30, 2021, compared to RMB 1,279,888 at the end of 2020[44]. - As of June 30, 2021, total equity attributable to owners of the company was RMB 1,017,314, an increase from RMB 965,681 as of December 31, 2020, representing a growth of 5.35%[48]. - The total liabilities, including non-current liabilities, were RMB 1,490,950 as of June 30, 2021, compared to RMB 1,361,256 as of December 31, 2020, indicating a rise of 9.54%[48]. - The total trade and other receivables as of 30 June 2021 amounted to RMB 961,836,000, an increase from RMB 922,741,000 as of 31 December 2020[160]. - Trade payables amounted to RMB 164,414,000 as of June 30, 2021, up from RMB 139,194,000 as of December 31, 2020[183]. - Total bank borrowings amounted to 1,009,693,000, with secured borrowings at 882,594,000 and unsecured borrowings at 127,099,000[192]. - The total borrowings reached 1,289,191,000, an increase from 1,111,343,000 in the previous period[196]. Cash Flow and Financing - Operating cash flows before movements in working capital for the six months ended June 30, 2021, were RMB 162,098, showing a significant increase compared to the previous year[58]. - The company reported a net cash outflow from investing activities of RMB 189,721 for the six months ended June 30, 2021, compared to RMB 110,452 in the same period of 2020[60]. - Net cash from financing activities increased significantly to RMB 504,148,000 in 2021 from RMB 132,250,000 in 2020, representing a growth of approximately 280%[62]. - Cash and cash equivalents at June 30, 2021, reached RMB 338,745,000, up from RMB 144,534,000 at the same date in 2020, indicating an increase of about 134%[62]. - The repayment of bank and other borrowings was RMB 924,850,000 in 2021, a significant increase from RMB 432,271,000 in 2020, marking an increase of about 114%[62]. - The net increase in cash and cash equivalents for the first half of 2021 was RMB 153,378,000, contrasting with a net decrease of RMB 86,555,000 in the same period of 2020[62]. Accounting and Compliance - The company has maintained consistent accounting policies in preparing its financial statements, aligning with the standards set by the Hong Kong Institute of Certified Public Accountants[69]. - The amendments to accounting standards applied in the current period had no material impact on the Group's financial positions and performance[88]. - The income tax expense for the six months ended 30 June 2021 was RMB 11,257,000, with no provision for Hong Kong Profits Tax as the Group had no assessable profits for both periods[133]. - The Group's subsidiaries in China are subject to a corporate income tax rate of 25%, with certain subsidiaries benefiting from a reduced rate of 15% as advanced-technology enterprises[137]. - The Group did not declare any interim dividends for the six months ended 30 June 2021, consistent with the previous year[138].

ZHENGYE INTERNATIONAL 正業國際控股有限公司 ZHENGYE INTERNATIONAL HOLDINGS COMPANY LIMITED (Incorporated in Bermuda with limited Tability)《於百慕達註冊成立的狗限公司) Stock Code 股份代號 : 3363.HK www.zhengye-cn.com 2020 INTERIM REPORT中期報告 Contents 2 6 7 8 12 16 Corporate Information 公司資料 | --- | --- | |-----------------------------------------------------------------------------------|-------------------------------| | | | | | | | Financial Highlights | 財務摘要 | | Condensed Consolidated Statement of Profit or Loss and Other Comprehensi ...

Financial Performance - Revenue for the year ended December 31, 2019, was RMB 2,367,151, a decrease of 16.8% from RMB 2,848,016 in 2018[8] - Profit attributable to the owners of the company for 2019 was RMB 82,184, down 25% from RMB 109,358 in 2018[8] - Return on equity attributable to the owners of the company decreased to 8.88% in 2019 from 12.24% in 2018[10] - Dividend per share for 2019 was RMB 3.00, reduced from RMB 10.00 in 2018[12] - The financial summary highlights a significant decline in both revenue and profit, indicating challenges in the market environment[4] - The Group's total revenue for the year was approximately RMB2,367,151,000, representing a year-on-year decrease of 16.88% compared to RMB2,848,016,000 in 2018[26] - Profit attributable to equity owners amounted to RMB82,184,000, a decrease of 24.85% year-on-year[26] - The Group's profit before tax for 2019 was approximately RMB119,180,000, a decrease of 22.62% from RMB154,014,000 in 2018[83] - The gross profit for 2019 was RMB448,813,000, a decrease of 11.95% compared to RMB509,702,000 in 2018[91] Operational Efficiency - The Group is committed to improving production efficiency and reducing costs to cope with market uncertainties[31] - The Group's efforts in production deployment and upgrading facilities led to enhanced operational efficiency and cost advantages[70] - The Group plans to promote technological research and development to improve operational efficiency and overall competitiveness[86] - The gross profit margin increased to 18.96% during the year, up from 17.9% in the previous year[26] - The average gross profit margin increased from 17.90% in 2018 to 18.96% in 2019[91] Market and Product Development - The management discussion and analysis section indicates a focus on market expansion and new product development strategies[13] - The company is actively pursuing new technologies in its product offerings to enhance competitiveness[13] - The Company aims to enhance its product research and development to address the impacts of the economic downturn[31] - The Group successfully developed 48 g/m2 low-gram-weight high-strength corrugated medium paper products in 2019, which gained customer recognition for its market scarcity and high cost performance[43] Corporate Governance - The company is committed to improving its corporate governance and risk management practices[17] - The board of directors consists of seven members, including three executive directors and three independent non-executive directors, ensuring a balanced composition of skills and experience[171] - The company has complied with the Corporate Governance Code throughout the year ended December 31, 2019[167] - The Board established five committees: Audit Committee, Remuneration Committee, Nomination Committee, Risk Management Committee, and Budget Management Committee, which adhered to their principles throughout the year ended December 31, 2019[186] - The company has adopted a board diversity policy to enhance the effectiveness of the Board by considering factors such as gender, age, cultural background, and professional experience[184] Challenges and Risks - The company faces fierce market competition in the packaging and papermaking industries, with major players expanding production capacity[160] - Fluctuations in raw material prices significantly impact profits, as raw material costs account for a high proportion of production costs[160] - Quality risks are present due to the inability to meet industry product quality standards, leading to potential losses from waste or inventory[161] - The management is closely monitoring operational risks arising from macroeconomic control, which may indirectly affect sales and profits due to policy adjustments[159] Employee and Staff Management - The Group employed 2,684 employees as of December 31, 2019, a decrease from 2,956 employees in the previous year[151] - Staff costs for the year ended December 31, 2019, amounted to RMB 239,911,000, down from RMB 261,922,000 in the previous year[151] - The company has adopted a share option scheme and a share award scheme to motivate employees and reward their contributions[155] - The company is committed to providing appropriate training and professional development opportunities for all employees[154] Financial Position - The Group's bank borrowings and other borrowings amounted to RMB873,312,000 as of December 31, 2019, a decrease of RMB91,605,000 from RMB964,917,000[84] - The net gearing ratio was reported at 54.25%[112] - Total borrowings amounted to RMB873,312,000, compared to RMB957,471,000 in the previous year[118] - The inventories decreased by 15.15% to RMB 137,275,000 compared to RMB 161,778,000 as of December 31, 2018[134] - Trade receivables amounted to RMB 429,804,000, down from RMB 502,272,000 as of December 31, 2018, with trade receivables turnover days extending to 72 days[135]

Revenue and Profitability - Revenue for the period ended June 30, 2019, was RMB 1,188,875, a decrease of 15.6% compared to RMB 1,409,130 in 2018[20] - The Group's total revenue for the six months ended June 30, 2019, was approximately RMB 1,188,875,000, representing a year-on-year decrease of 15.63% compared to RMB 1,409,130,000 for the same period in 2018[31] - Profit attributable to the owners of the Company for the period was RMB 51,382,000, representing a year-on-year increase of approximately 1.74%[31] - Total comprehensive income for the period was RMB 64,673, an increase of 12.8% compared to RMB 57,354 in 2018[50] - The profit for the period attributable to owners of the Company for the six months ended 30 June 2019 was RMB 51,382,000, compared to RMB 50,503,000 for the same period in 2018, representing an increase of 1.7%[195] Earnings and Financial Metrics - EBITDA for the period attributable to owners of the company was RMB 143,951, an increase of 10.0% from RMB 130,679 in 2018[20] - Basic earnings per share amounted to approximately RMB 0.10[31] - Earnings per share remained stable at RMB 0.10 for both 2019 and 2018[50] - Segment profit for corrugated paper was RMB 71,744,000, while medium paper-based packaging generated a profit of RMB 14,402,000, leading to a total segment profit of RMB 86,146,000[148] Assets and Liabilities - Non-current assets totaled RMB 1,080,685, an increase from RMB 1,052,206 as of December 31, 2018[53] - Current assets decreased to RMB 1,360,964 from RMB 1,505,617 at the end of 2018[53] - Total liabilities were RMB 1,269,522, down from RMB 1,438,339 at the end of 2018[55] - Equity attributable to owners of the Company increased to RMB 895,107 from RMB 893,725 at the end of 2018[56] - The total carrying amount of non-current assets, including property, plant, and equipment, was RMB 886,948,000 after adjustments related to HKFRS 16[142] Cash Flow and Financing - The net cash from operating activities for the six months ended June 30, 2019, was RMB 60,054,000, a decline from RMB 140,036,000 in the previous year[66] - The company reported a net cash used in financing activities of RMB 41,304,000, compared to RMB 20,660,000 in the previous year, indicating an increase of approximately 100%[69] - The company paid dividends totaling RMB 50,000,000 during the period, consistent with the previous year[69] - Interest income increased to RMB 2,161,000 from RMB 1,417,000 year-over-year, reflecting a growth of approximately 52%[67] - The company incurred finance costs of RMB 20,825,000, a decrease from RMB 23,898,000 in the prior year, showing a reduction of approximately 13%[69] Accounting Policies and Changes - The Group has applied HKFRS 16 for the first time in the current interim period, superseding HKAS 17 Leases[82] - Key changes in accounting policies include the recognition of right-of-use assets at the commencement date of the lease, measured at cost less accumulated depreciation and impairment losses[85] - The application of HKFRS 16 has resulted in significant changes in accounting policies affecting the Group's financial statements[82] - The Group recognizes right-of-use assets as a separate line item on the condensed consolidated statement of financial position[90] - The Group has applied HKFRS 16 retrospectively with the cumulative effect recognized at the date of initial application, January 1, 2019, without restating comparative information[110] Market and Industry Trends - The market for corrugated core paper and cardboard paper has entered a new production cycle after nearly three years of rapid price increases, leading to increased pressure on sales during the period[25] - The paper-based packaging industry is expected to benefit from China's rigorous environmental protection policies, which will favor recyclable paper packaging over plastic[45] - The concentration of the domestic paper packaging industry is expected to increase, with large-scale enterprises gaining competitive advantages[45] - Zhengye International is exploring upstream and downstream supply chain services in the paper and packaging industry, including R&D, procurement, manufacturing, and waste paper recycling[33] - The Group aims to continuously optimize its industrial chain and enrich its product portfolio to enhance market position[47]