第 三 季 度 報 告 2022 Solomon Worldwide Holdings Limited 所羅門環球控股有限公司 (於開曼群島註冊成立的有限公司) 股份代號: 8133 (incorporated in the Cayman Islands with limited liability) Stock Code: 8133 Third Quarterly Report 2022 Solomon Worldwide Holdings Limited 所羅門環球控股有限公司 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公司提供一個 上市的市場。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮 後方作出投資決定。 摘要 • 於截至二零二二年九月三十日止九個月，本集團錄得收益約62.53百萬港元（二零 二一年：約70.59百萬港元）。 • 於截至二零二二年九月三十日止九個月，本公司權益股東應佔虧損約為9.22百萬港 元（二零二一年：4.91百萬港元）。 • 董事會並不建議派付截至二零二二年九月三十日止九個月的中 ...

Financial Performance - The group recorded revenue of approximately HKD 41.98 million for the six months ended June 30, 2022, a decrease of 9.4% compared to HKD 46.43 million for the same period in 2021[4] - The loss attributable to equity shareholders for the six months ended June 30, 2022, was approximately HKD 7.92 million, compared to a loss of HKD 1.75 million for the same period in 2021[4] - Gross profit for the six months ended June 30, 2022, was HKD 6.26 million, down 51.2% from HKD 12.84 million in the same period of 2021[5] - The total comprehensive loss for the six months ended June 30, 2022, was HKD 10.26 million, compared to a total comprehensive income of HKD 2.29 million for the same period in 2021[5] - The company reported a basic loss per share of HKD 4.98 for the six months ended June 30, 2022, compared to a basic loss per share of HKD 1.62 for the same period in 2021[7] - The company reported a loss of HKD (9,719,000) for the six months ended June 30, 2022, compared to a loss of HKD (2,318,000) in the same period of 2021[20] - Total revenue decreased by approximately 9.59% to about HKD 41.98 million compared to the same period in 2021, primarily due to a decline in financial printing revenue by approximately HKD 19.45 million[52] - Gross profit recorded was approximately HKD 6.26 million, a decrease of about HKD 6.57 million from approximately HKD 12.84 million in the same period of 2021[53] - The company reported a loss attributable to equity shareholders of approximately HKD 9.72 million, compared to a loss of approximately HKD 2.32 million in the same period of 2021[58] Revenue Breakdown - Sales of metal casting products increased significantly to HKD 37,094,000, up 67.8% from HKD 22,095,000 in the previous year[18] - The financial printing service revenue dropped to HKD 4,886,000, down 79.9% from HKD 24,338,000 in the prior year[18] - Revenue from Germany increased significantly to HKD 30,288,000, up 48.7% from HKD 20,387,000 in 2021[22] - Revenue from China rose to HKD 5,642,000, a substantial increase from HKD 1,346,000 in the previous year[22] - The revenue from the metal casting business increased by approximately 67.88% compared to the six months ended June 30, 2021, indicating a recovery in the core markets of Europe and the United States[48] - The financial printing services revenue decreased by approximately 79.92% during the same period, primarily due to ongoing restrictions affecting IPO-related printing orders[49] Cash Flow and Assets - Current assets as of June 30, 2022, amounted to HKD 50.10 million, an increase from HKD 48.09 million as of December 31, 2021[9] - The net asset value as of June 30, 2022, was HKD 7.11 million, compared to HKD 5.48 million as of December 31, 2021[9] - The company’s cash and cash equivalents increased to HKD 2.56 million as of June 30, 2022, from HKD 1.31 million as of December 31, 2021[9] - The cash and cash equivalents at the end of the period were HKD 2,561,000, down from HKD 6,128,000 at the end of the previous year[13] - The net cash used in operating activities was HKD (1,774,000), an improvement from HKD (5,806,000) in the previous year[13] - The net cash generated from financing activities was HKD 3,346,000, compared to a net cash used of HKD (1,803,000) in the same period last year[13] - Trade receivables increased to HKD 15,466,000 as of June 30, 2022, compared to HKD 13,208,000 at the end of December 2021[33] - Trade payables amounted to HKD 17,406,000 as of June 30, 2022, slightly down from HKD 17,728,000 at the end of December 2021[36] Shareholder Information - The company has two reportable segments: metal casting and financial printing, with total segment performance showing a significant decline in the financial printing division[20] - The weighted average number of ordinary shares issued was 158,873,000 for the six months ended June 30, 2022, compared to 107,703,000 in 2021[32] - The total equity attributable to equity shareholders as of June 30, 2022, was HKD 13,393,000, a decrease from HKD 23,748,000 as of January 1, 2021[10] - Ms. Hu Lan Ying holds 15,375,000 shares, representing 8.70% of the company's issued share capital as of June 30, 2022[75] - Mr. Fang Jin Huo holds 26,611,500 shares, accounting for 15.05% of the company's issued share capital as of June 30, 2022[77] Corporate Actions and Governance - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2022[4] - The company did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[30] - The company has not granted any stock options under its stock option plan since its adoption on April 10, 2015[79] - The company has established an audit committee consisting of two independent non-executive directors, ensuring compliance with GEM listing rules[84] - The company is actively seeking suitable candidates to fill the vacancy left by the resignation of an independent non-executive director to comply with GEM listing rules[85] - The company confirms compliance with the corporate governance code during the reporting period[86] - The report was reviewed and provided with suggestions and opinions by the audit committee[84] Future Outlook and Strategy - The company remains cautiously optimistic about the recovery of financial printing business amid the ongoing COVID-19 pandemic[51] - The company will continue to monitor the COVID-19 situation and seek potential investment opportunities to diversify its business and create new revenue sources[51] - The company plans to use approximately HKD 1,200,000 from a new placement for loan repayment and HKD 2,900,000 for general working capital and potential new projects[44] - The company raised approximately HKD 9,300,000 through a rights issue at a subscription price of HKD 0.2 per share, increasing the number of issued shares from 104,000,000 to 156,000,000[40] - A placement agreement was established to issue up to 20,800,000 new shares at HKD 0.13 per share, raising approximately HKD 2,704,000 in total proceeds[40] - The company’s financial printing services cater primarily to clients in the financial and capital markets, including listed companies and organizations seeking IPOs in Hong Kong[49] - The company is monitoring potential legal claims and their impact on financial conditions, with no provisions currently deemed necessary[45] Employee Information - As of June 30, 2022, the group employed 179 staff members, an increase from 169 staff members as of December 31, 2021[74] - Employee costs totaled approximately HKD 12.95 million for the period, down from HKD 16.07 million in the previous year, reflecting a decrease of about 19.5%[74] Debt and Liabilities - The debt-to-equity ratio as of June 30, 2022, was approximately 45.43%, an increase from 36.53% as of December 31, 2021[61] - The company has no tax liabilities for the periods ended June 30, 2022, and 2021 due to the absence of taxable profits in Hong Kong and China[27]

Financial Performance - The company recorded revenue of approximately HKD 21.87 million for the three months ended March 31, 2022, compared to HKD 16.01 million for the same period in 2021, representing a year-over-year increase of 36.1%[4] - The attributable loss to the owners of the company for the three months ended March 31, 2022, was approximately HKD 3.92 million, an improvement from a loss of HKD 5.73 million in the same period of 2021, indicating a reduction in loss of 31.6%[4] - The gross profit for the three months ended March 31, 2022, was HKD 2.15 million, down from HKD 3.20 million in the same period of 2021, reflecting a decrease of 32.9%[5] - The total comprehensive loss for the period was HKD 5.09 million, compared to HKD 7.31 million for the same period in 2021, showing a decrease of 30.3%[6] - Basic and diluted loss per share for the three months ended March 31, 2022, was HKD 2.67, an improvement from HKD 5.32 in the same period of 2021[6] - Total revenue for the three months ended March 31, 2022, was HKD 21,873,000, compared to HKD 16,013,000 for the same period in 2021, reflecting an increase of approximately 36.5%[12] - The company reported a basic and diluted loss per share of HKD 0.027, based on a weighted average of 146,756,000 shares issued during the period, compared to a loss of HKD 0.053 per share for 107,703,000 shares in the same period of 2021[17] - The financial printing services revenue decreased by approximately 71.54% in Q1 2022 due to ongoing restrictions affecting IPO-related orders[24] Equity and Capital Management - The company’s total equity attributable to owners increased to HKD 15.47 million as of March 31, 2022, from HKD 9.95 million at the beginning of the year[8] - The company raised approximately HKD 9.26 million through a rights issue during the period[8] - The company completed a placement of 20,800,000 new shares at HKD 0.13 per share, raising approximately HKD 2,704,000, with net proceeds of about HKD 2,600,000 for debt repayment and potential new projects[20] - The company’s total issued and paid-up ordinary shares increased from 104,000,000 to 156,000,000 following a rights issue that raised approximately HKD 9,300,000 for general working capital[21] - The company completed a rights issue on January 17, 2022, raising approximately HKD 9.3 million for general working capital[33] Operational Efficiency and Cost Management - The company continues to focus on improving operational efficiency and reducing costs to enhance profitability in future periods[4] - Administrative expenses decreased by approximately 32.43% to about HKD 5.94 million compared to approximately HKD 8.79 million in the same period in 2021[29] - Sales and distribution expenses for the three months ended March 31, 2022, were approximately HKD 1.08 million, a decrease from approximately HKD 1.73 million in the same period in 2021[28] - The average selling price of products increased, but was nearly offset by rising general material costs[23] Market and Business Outlook - The company’s metal casting business revenue rebounded to pre-pandemic levels, indicating economic recovery in core markets in Europe and the United States[22] - The company remains optimistic about the recovery of financial printing business revenue in 2022, driven by the easing of COVID-19 restrictions and new listing opportunities in Hong Kong[25] - The company plans to continue monitoring the COVID-19 situation and implement flexible strategies to maintain market competitiveness[25] - The company is seeking potential investment opportunities to diversify its business and create new revenue sources[25] Governance and Compliance - The company has adopted a code of conduct for directors' securities trading, confirming compliance with the standards set forth in GEM Listing Rules from January to March 2022[43] - As of the report date, directors and major shareholders have no interests in any business that competes or may compete with the group's business[44] - The company has established an audit committee consisting of three independent non-executive directors, ensuring compliance with GEM Listing Rules[45] - The company has adopted the corporate governance code as per Appendix 15 of the GEM Listing Rules, confirming adherence to the code during the reporting period[46] Dividend Policy - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2022[4] - The company did not recommend an interim dividend for the three months ended March 31, 2022, consistent with the same period in 2021[15] Accounting Standards - The company adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2022, with no significant changes to accounting policies or reported amounts[12]

Financial Performance - Solomon Worldwide Holdings Limited reported a rebound in metal casting business revenue, reaching pre-pandemic levels due to increased overseas market demand[14]. - The financial printing business experienced a decline in revenue compared to the previous year, impacted by strict cross-border control measures in Hong Kong and China[14]. - The group's total revenue for the year ended December 31, 2021, decreased by approximately 2.46% to about HKD 83.49 million, compared to an increase of 68% in 2020[24]. - The metal casting business revenue increased by approximately 24.9% due to the easing of lockdown measures in overseas markets and China, indicating a recovery in core markets in Europe and the United States[20]. - The financial printing services revenue decreased by approximately 25.0% due to ongoing restrictions affecting IPO-related orders[21]. - The gross profit for the year was approximately HKD 20.20 million, a slight decrease from HKD 21.93 million in 2020, maintaining a gross profit margin of about 24%[25]. - The loss attributable to the company's owners for the year was approximately HKD 14.00 million, a decrease of about 38.24% compared to HKD 22.67 million in 2020[29]. - The group's cash and cash equivalents as of December 31, 2021, were approximately HKD 1.31 million, down from HKD 14.32 million in 2020[30]. - The debt-to-equity ratio as of December 31, 2021, was 36.53%, indicating a shift from 0% in the previous year[31]. - The company reported a total revenue of HKD 83.49 million for the year, a slight decrease from HKD 85.60 million in the previous year[5]. Business Outlook - The company remains optimistic about the future of its financial printing business, anticipating a relaxation of cross-border control measures soon[15]. - The Hong Kong Stock Exchange has introduced new measures to optimize and simplify the listing system for overseas issuers, which may boost IPO activities and demand for financial printing services[14]. - The management highlighted the potential for increased demand in the financial printing sector due to the introduction of SPAC listing regulations[14]. - The group will continue to seek potential investment opportunities to diversify its business and create new revenue sources[18]. Corporate Governance - The company is committed to ensuring the accuracy and completeness of the information provided in its annual report[9]. - The board of directors confirmed that the information in the report is true and complete after reasonable inquiries[9]. - The company has adopted corporate governance practices as detailed in the corporate governance report[192]. - The board consists of three executive directors and three independent non-executive directors, with a total of ten board meetings held during the year[56][61]. - The independent non-executive directors represent more than one-third of the board, ensuring compliance with GEM listing rules[65]. - The chairman and CEO roles are clearly separated, with the chairman leading the board and the CEO overseeing overall management and daily operations[66]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee, to oversee specific aspects of the company's affairs[67]. - The audit committee held four meetings during the year, with all members attending every meeting[70]. - The Compensation Committee held four meetings during the year to review the remuneration policies and structures for all directors[71]. - The independent non-executive directors have confirmed their independence annually, in line with GEM listing rules[65]. Risk Management - The company faces various market risks, including currency risk, interest rate risk, credit risk, and liquidity risk, which may impact its business operations and profitability[38]. - The company has implemented a three-tier risk management approach to identify, assess, and manage significant risks[82]. - The board is responsible for overseeing the effectiveness of the risk management and internal control systems, with annual reviews conducted[82]. - The company has established appropriate procedures and internal controls for handling and disclosing inside information, ensuring compliance with relevant regulations[84]. - The board has reviewed and discussed the risk management and internal control systems, finding them sufficient and effective without any significant weaknesses or deficiencies[83]. Sustainability and Environmental Impact - The company is committed to integrating sustainable development principles into its strategic planning and daily operations to maintain competitive advantages in its industries[99]. - The company aims to reduce energy consumption, greenhouse gas emissions, and water resources by 5% by 2030 based on 2021 levels[111]. - In 2021, total greenhouse gas emissions amounted to 2,942.03 tons of CO2 equivalent, with a density of 17.41 tons per employee[112]. - The company consumed 4,159.36 MWh of electricity in 2021, with a density of 9.21 MWh per ton of production[112]. - The company generated 1.44 tons of hazardous waste and 45.88 tons of non-hazardous waste in 2021, with densities of 0.01 tons and 0.27 tons per employee respectively[112]. - The company emphasizes the importance of stakeholder engagement to create sustainable growth and long-term value[107]. - The board is committed to integrating environmental, social, and governance principles into business operations and regularly reviews risk management and internal control systems[105]. Employee and Workforce Management - As of December 31, 2021, the company employed 169 staff members, down from 178 in 2020, with a gender distribution of 71.0% male and 29.0% female[123]. - The employee turnover rate for 2021 was 23.3% for males and 18.4% for females, with the highest turnover rate of 31.8% occurring in the 18 to 30 age group[123]. - The average training hours per employee were 19.96 hours for males and 20.17 hours for females, with 80.8% of male employees and 44.9% of female employees receiving training[130]. - The company has implemented strict policies against child labor and forced labor, ensuring compliance with local employment laws[132]. - The company has not reported any significant violations of occupational safety and health regulations during the reporting period, with no work-related fatalities[127]. - The company has provided training programs covering technical skills, internal systems, safety, and employee onboarding[128]. Financial Transactions and Shareholder Information - The company completed a rights issue on January 17, 2022, raising approximately HKD 9.3 million, with 52,000,000 shares issued at a subscription price of HKD 0.2 per share[33]. - The expected allocation of the net proceeds from the rights issue includes approximately 21.5% (HKD 2.0 million) for employee costs, 37.6% (HKD 3.5 million) for rental expenses, 26.9% (HKD 2.5 million) for repayment of payables, and 14.0% (HKD 1.3 million) for other operational expenses[33]. - The company has a share option plan that allows for the issuance of options up to 10% of the total issued shares as of the listing date[165]. - The company has not issued any share options under the share option plan as of the report date[168]. - The company reported no dividend payment for the fiscal year ending December 31, 2021[156]. - The group reported a loss attributable to equity shareholders of approximately HKD 14,002,000 as of December 31, 2021[200]. - Current liabilities exceeded current assets by approximately HKD 908,000, indicating significant uncertainty regarding the group's ability to continue as a going concern[200]. Compliance and Ethical Standards - The company emphasizes the importance of compliance with regulatory requirements to ensure ongoing business operations[34]. - The group maintains a zero-tolerance policy towards bribery and corruption, with no reported violations of related laws as of December 31, 2021[139]. - The group has implemented regular anti-corruption training for employees to ensure compliance with legal obligations[138]. - The group has a comprehensive code of conduct outlined in its Human Resources Manual to guide employees on anti-bribery and anti-corruption practices[138]. - The group has received certifications from the German TÜV Rheinland for compliance with European pressure equipment directives, ensuring high product quality[134]. - The group has not encountered any major violations of data privacy laws during the reporting period, demonstrating commitment to data protection[137].

Financial Performance - The metal casting business revenue increased by approximately 24.9% compared to the previous year, indicating a recovery in core markets in Europe and the United States [14]. - The financial printing business revenue decreased due to strict cross-border control measures in Hong Kong and China, impacting IPO activities [8]. - The company remains optimistic about the future of its financial printing business, anticipating a relaxation of cross-border control measures soon [9]. - The average selling price of products increased, but was nearly offset by the rise in general raw material costs [14]. - The company’s metal casting business has rebounded to pre-pandemic revenue levels, reflecting a recovery in global business activities [8]. - Revenue from the financial printing business decreased by about 25.0% due to the impact of COVID-19 restrictions on IPO-related orders [15]. - The group's total revenue for the year ended December 31, 2021, decreased by approximately 2.46% to about HKD 83.49 million, compared to HKD 85.60 million in 2020 [18]. - Gross profit for the year was approximately HKD 20.20 million, a slight decrease from HKD 21.93 million in 2020, maintaining a gross profit margin of about 24% [19]. - The company reported a loss attributable to owners of approximately HKD 14.00 million, a decrease of about 38.24% from HKD 22.67 million in 2020 [23]. - The group's cash and cash equivalents were approximately HKD 1.31 million, down from HKD 14.32 million in the previous year [24]. Strategic Plans and Investments - The company plans to maintain a flexible and targeted sales and marketing strategy to enhance its market position and expand its customer base [10]. - The company will seek other potential investment opportunities to enrich its business and create new revenue sources [10]. - The group remains optimistic about a recovery in financial printing revenue next year, contingent on the control of the COVID-19 pandemic [16]. - The company is actively seeking potential investment opportunities to diversify its business and create new revenue sources [16]. - The company plans to use approximately HKD 9.3 million from a rights issue for general working capital, including HKD 2.0 million for employee costs and HKD 3.5 million for rent expenses [27]. Governance and Compliance - The company has adopted corporate governance principles to protect shareholder interests and has complied with all applicable governance codes [48]. - The company has appointed three independent non-executive directors, constituting over one-third of the board, with at least one possessing appropriate professional qualifications in accounting or related financial management [59]. - The board of directors held ten meetings during the year, with full attendance from key members [55]. - The Audit Committee held four meetings during the year, with all members attending all meetings, reviewing the annual financial statements and internal controls [64]. - The Remuneration Committee also held four meetings, reviewing the remuneration policies for all directors, with attendance rates of 100% for most members [65]. - The Nomination Committee conducted three meetings to review the board's structure and diversity policy, with all members attending at least two meetings [68]. - The company has established three board committees: Audit, Remuneration, and Nomination, each with written terms of reference to oversee specific aspects of the company's affairs [61]. - The company ensures compliance with corporate governance codes, including the rotation of directors every three years [57]. - The company has a clear process for filling temporary vacancies on the board, ensuring continuity and compliance with governance standards [58]. Risk Management - The board confirmed its responsibility for overseeing the risk management and internal control systems, which are reviewed at least annually for effectiveness [76]. - The company has implemented a three-tier risk management approach to identify, assess, and manage significant risks, with operational units serving as the first line of defense [76]. - The board has not identified any significant internal control failures or weaknesses during the review process, indicating that the risk management and internal control systems are overall sufficient and effective [77]. Environmental, Social, and Governance (ESG) Initiatives - The board of directors is responsible for overseeing ESG-related risks and opportunities, ensuring compliance with regulatory requirements [99]. - The company aims to create sustainable growth and long-term value for stakeholders, actively engaging with them to gather feedback and improve ESG performance [101]. - The company has implemented a risk management and internal control system to ensure the accuracy, reliability, and timeliness of data related to sustainable development measures [99]. - The company plans to launch multiple environmental protection and social welfare initiatives to promote sustainable development [98]. - The company aims to reduce energy consumption, greenhouse gas emissions, and water resources by 5% by 2030 based on 2021 levels [105]. - The company consumed approximately 4,159.36 MWh of electricity in 2021, with a density of 9.21 MWh per ton of production [106]. - The company generated 1.44 tons of hazardous waste and 45.88 tons of non-hazardous waste in 2021 [106]. - The company strictly adheres to local labor laws and has no reported violations as of December 31, 2021 [115]. - The company promotes equal opportunity employment practices and maintains a diverse workforce [116]. - The company has a zero-tolerance policy for child labor and forced labor, with no reported violations during the reporting period [126]. Employee and Workforce Management - Employee costs, including director remuneration, totaled approximately HKD 32.15 million for the year ending December 31, 2021, slightly down from HKD 32.28 million in the previous year [44]. - The company employed 169 staff members as of December 31, 2021, down from 178 in 2020 [115]. - Total number of employees as of December 31, 2021, is 169, with a gender distribution of 71.0% male (120) and 29.0% female (49) [117]. - Employee turnover rate for males is 23.3% (28 out of 120) and for females is 18.4% (9 out of 49) [117]. - Average training hours per employee in 2021: 19.96 hours for males and 20.17 hours for females [124]. - Percentage of trained employees: 80.8% for males and 44.9% for females [124]. - The company provided training programs covering technical skills, internal systems, safety, and onboarding in 2021 [122]. Financial Position and Shareholder Information - The group's current liabilities exceeded current assets by approximately HKD 908,000, indicating significant uncertainty regarding the group's ability to continue as a going concern [194]. - The group's goodwill balance as of December 31, 2021, was HKD 0, down from HKD 4,305,000 in 2020, with an impairment loss of approximately HKD 4,305,000 recognized during the year [197]. - Trade receivables amounted to HKD 13,208,000 as of December 31, 2021, compared to HKD 10,257,000 in 2020, with a loss provision of HKD 8,078,000, up from HKD 6,642,000 in the previous year [200]. - The company reported no dividend payment for the year ending December 31, 2021 [150]. - The company underwent a name change from "Jete Power Holdings Limited" to "Solomon Worldwide Holdings Limited" as approved by shareholders on November 12, 2021 [149]. - The company has not repurchased any shares during the year ending December 31, 2021 [157]. - The company’s share capital details are included in the consolidated financial statements [152]. - The company’s stock option plan allows for a maximum of 10% of the total issued shares to be granted as options, amounting to 8,750,000 shares [159]. - No stock options were granted, exercised, or canceled during the year [163]. - The top five customers accounted for 40% of total sales for the year, with the largest customer contributing 18% [181]. - The top five suppliers represented 63% of total purchases, with the largest supplier accounting for 28% [181].

Financial Performance - The company recorded revenue of approximately HKD 70.59 million for the nine months ended September 30, 2021, compared to HKD 69.71 million for the same period in 2020, representing a year-over-year increase of 1.26%[4] - The attributable loss to owners for the nine months ended September 30, 2021, was approximately HKD 5.44 million, an improvement from a loss of HKD 7.81 million in the same period of 2020, indicating a reduction in loss by 30.3%[4] - The gross profit for the nine months ended September 30, 2021, was HKD 17.97 million, slightly down from HKD 18.38 million in 2020, reflecting a decrease of 2.2%[5] - The total comprehensive loss for the nine months ended September 30, 2021, was HKD 5.41 million, compared to a total comprehensive loss of HKD 7.67 million for the same period in 2020, showing an improvement of 29.5%[6] - The company reported a basic and diluted loss per share of HKD 0.12 for the nine months ended September 30, 2021, compared to HKD 0.21 for the same period in 2020, indicating a reduction in loss per share by 42.9%[6] - Total revenue for the nine months ended September 30, 2021, was HKD 70,589,000, a slight increase of 1.3% compared to HKD 69,712,000 for the same period in 2020[16] Revenue Breakdown - For the three months ended September 30, 2021, revenue from the sale of cast metal products was HKD 16,240,000, an increase of 65.5% compared to HKD 9,796,000 in the same period of 2020[16] - Revenue from financial printing services for the three months ended September 30, 2021, was HKD 7,916,000, a decrease of 45.4% from HKD 14,529,000 in the same period of 2020[16] - The group’s financial printing service revenue for the nine months ended September 30, 2021, was HKD 32,254,000, down from HKD 37,685,000 in the same period of 2020, reflecting a decrease of 14.5%[16] - The total sales of cast metal products for the nine months ended September 30, 2021, reached HKD 38,335,000, an increase of 19.8% from HKD 32,027,000 in the same period of 2020[16] - Metal casting business revenue increased by approximately 19.70% year-on-year, indicating a slow recovery in the European and US markets[26] - Financial printing service revenue decreased by approximately 14.41% year-on-year due to ongoing restrictions affecting IPO-related orders[27] Expenses and Costs - The company’s administrative expenses decreased to HKD 18.36 million for the nine months ended September 30, 2021, from HKD 26.82 million in 2020, a reduction of 31.5%[5] - The company’s financial costs increased to HKD 1.10 million for the nine months ended September 30, 2021, compared to HKD 0.65 million in 2020, representing an increase of 69.2%[5] - The company experienced a foreign exchange gain of HKD 38, compared to a gain of HKD 141 in the previous year, indicating a decrease of 73.0%[7] Dividends and Shareholder Information - The company did not recommend the payment of an interim dividend for the nine months ended September 30, 2021, consistent with the previous year[4] - The average number of issued ordinary shares for the nine months ended September 30, 2021, was 4,160,000 thousand shares, unchanged from the previous year[22] - As of September 30, 2021, major shareholder Fang Jinhou holds 709,640,000 shares, representing 17.06% of the issued share capital[46] - As of September 30, 2021, Hu Lanying holds 410,000,000 shares, accounting for 9.86% of the issued share capital[43] - The company proposes a share consolidation of every 40 existing shares with a par value of HKD 0.002 into 1 consolidated share with a par value of HKD 0.08, subject to shareholder approval[38] - The company plans to issue up to 52,000,000 rights shares at a subscription price of HKD 0.2 per share, aiming to raise approximately HKD 10.4 million before expenses[41] Corporate Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to review the report and provide recommendations[54] - The company has adopted the corporate governance code as per GEM Listing Rules and confirmed compliance during the reporting period[55][56] - The company has confirmed that there are no competing interests among directors or major shareholders during the reporting period[53] - No purchases, sales, or redemptions of the company's securities were made by the company or its subsidiaries during the period[50] Accounting Standards and Future Outlook - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2021, but these changes are not expected to have a significant impact on the financial statements in the foreseeable future[14] - The group’s financial performance is prepared in accordance with the Hong Kong Accounting Standards and has been consistently applied with no significant changes in accounting policies[11] - The company is currently evaluating the impact of new accounting standards that have been issued but are not yet effective, which may affect future financial performance[13] - The company continues to monitor the development of the COVID-19 pandemic and is implementing flexible strategies to maintain market competitiveness[26] - The company is considering providing additional value-added corporate services to expand its future revenue base[27]

GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公司提供一個 上市的市場。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的考慮 後方作出投資決定。 由於GEM上市公司一般為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣的證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，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報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。 本報告乃根據聯交所GEM證券上市規則（「GEM上市規則」）之規定而刊載，旨在提供有關鑄 能控股有限公司（「本公司」）的資料，本公司董事（「董事」）願就本報告共同及個別地承擔全部 責任。董事在作出一切合理查詢後，確認就彼等所深知及確信，本報告所載資料在所有重要 方面均準確及完整，並無誤導或欺詐成份，且並無遺漏任何其他事項，致使當中所載任何陳 述或本報告有所誤導。 摘要 中期報告 INTERIM REPORT * 僅供識別 * 香港聯合交易所有限公司（「聯交所」）GEM的特色 1 鑄 ...

Financial Performance - The group recorded revenue of approximately HKD 16.01 million for the three months ended March 31, 2021, compared to HKD 19.54 million for the same period in 2020, representing a decrease of 12.9%[5] - The loss attributable to the owners of the company for the three months ended March 31, 2021, was approximately HKD 5.73 million, compared to a loss of HKD 3.28 million for the same period in 2020, indicating an increase in loss of 74.8%[5] - The gross profit for the three months ended March 31, 2021, was HKD 3.196 million, down from HKD 3.891 million in the same period of 2020, reflecting a decline of 17.8%[7] - The total comprehensive loss for the period was HKD 7.309 million, compared to a total comprehensive loss of HKD 4.547 million for the same period in 2020, representing an increase of 60.8%[8] - Basic and diluted loss per share for the period was HKD 0.14, compared to HKD 0.08 for the same period in 2020, indicating a worsening of the loss per share by 75%[8] - Total revenue for the three months ended March 31, 2021, decreased by approximately 18% to about HKD 16.10 million compared to the same period in 2020[23] - Revenue from financial printing services decreased by approximately 55%, primarily due to a reduction in income from IPO-related financial printing services[21] - Gross profit for the three months ended March 31, 2021, was approximately HKD 3.20 million, a decrease of about HKD 0.7 million from approximately HKD 3.89 million in the same period in 2020[24] - The overall gross profit margin remained stable at approximately 20%[24] Administrative and Operational Expenses - The administrative expenses increased to HKD 8.789 million for the three months ended March 31, 2021, compared to HKD 7.886 million for the same period in 2020, an increase of 11.4%[7] - For the three months ended March 31, 2021, the group's sales and distribution expenses were approximately HKD 1.73 million, remaining stable compared to HKD 1.74 million for the same period in 2020[25] - Administrative expenses for the same period were approximately HKD 8.79 million, an increase of about 11% from approximately HKD 7.89 million in the prior year[26] Shareholder Information - The group’s total equity attributable to owners decreased to HKD 18.071 million as of March 31, 2021, from HKD 27.740 million as of January 1, 2020[9] - The company issued 660 million new shares at a price of HKD 0.028 per share, raising approximately HKD 18.48 million, net of expenses[10] - The weighted average number of ordinary shares issued increased to 4,160 million as of March 31, 2021, from 4,116 million in the same period in 2020[16] - As of March 31, 2021, Mr. Cai Zhaoming held 150,320,000 shares, representing 3.61% of the company's issued share capital[33] - Major shareholders include Mr. Fang Jinhui with 709,640,000 shares (17.06%) and Mr. Yuan Yunnan with 410,000,000 shares (9.86%) as of March 31, 2021[36] Dividend and Corporate Governance - The company did not recommend the payment of an interim dividend for the three months ended March 31, 2021[5] - The company did not purchase, sell, or redeem any of its securities during the three months ended March 31, 2021[41] - The audit committee, consisting of three independent non-executive directors, has reviewed the report and provided recommendations[45] - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15 and has complied with its provisions as of March 31, 2021[46] Future Outlook and Strategy - The company will continue to monitor the development of the COVID-19 pandemic and strengthen cost control and resource management to maintain market competitiveness[20] - The company aims to diversify its business and create new revenue sources through potential investment opportunities[20] Other Information - The company is actively communicating with the owner and landlord regarding the rectification of the ownership issues of the leased property, with no commitment on the completion timeline due to pending approvals[30] - The chairman and executive director, Cai Zhaoming, reported on the first quarter of 2021 on May 14, 2021[47]

Business Diversification and Acquisitions - The company completed the acquisition of Solomon Holdings Group Limited, diversifying its business into financial printing services[7] - The company completed the acquisition of Solomon Holdings Group Limited, enhancing its revenue diversification through financial printing services[13] - The company aims to seek potential investment opportunities to diversify its business and create new revenue sources[8] Financial Performance - The total revenue for the year ended December 31, 2020, increased by approximately 68% to about HKD 85.60 million compared to the same period in 2019[17] - Gross profit recorded for the year ended December 31, 2020, was approximately HKD 21.93 million, an increase of about HKD 8.34 million from approximately HKD 13.59 million in 2019, maintaining a stable gross profit margin of around 25%[18] - The company reported a loss attributable to owners of approximately HKD 22.67 million for the year ended December 31, 2020, compared to a loss of approximately HKD 10.49 million in 2019, with the increase mainly due to administrative expenses and asset impairment losses[25] Operational Challenges - The COVID-19 pandemic significantly impacted the business environment, leading to operational challenges and a temporary decline in production during the first quarter[11] - The company anticipates a prolonged period of low demand in the metal casting industry due to ongoing economic uncertainties and lockdown measures in key markets[11] - The entertainment business faced adverse impacts due to social unrest and COVID-19, leading to the termination of the entire entertainment business to prevent further losses[16][14] Cost Management and Strategies - The company has implemented cost control and resource management measures to enhance competitiveness amid the pandemic[11] - The company plans to maintain flexible and targeted sales and marketing strategies to strengthen its market position despite the challenging environment[8] - The company will adopt proactive and prudent strategies to enhance profitability and shareholder value in the long term[16] Employee and Management Information - As of December 31, 2020, the group had 178 employees, with total employee costs amounting to approximately HKD 32.28 million, an increase from HKD 17.32 million in 2019[49] - The company emphasizes employee training and development, investing resources to maintain competitiveness and professional standards[123] - The company provides competitive compensation and adheres to local labor laws, ensuring no violations were reported during the year[116] Environmental Impact and Sustainability - The total greenhouse gas emissions for the year 2020 were 2,360.36 tons of CO2 equivalent, a decrease of 23.6% from 3,092.05 tons in 2019[108] - Direct emissions (Scope 1) were 30.73 tons of CO2 equivalent in 2020, down from 878.68 tons in 2019, representing a significant reduction of 96.5%[108] - The company aims to integrate sustainable development principles into its strategic planning and daily operations[100] Corporate Governance - The board of directors consists of two executive directors and three independent non-executive directors, with no significant relationships among them[56] - The company has established three board committees: audit, remuneration, and nomination, each with defined responsibilities[70] - The independent non-executive directors have confirmed their independence annually, in line with GEM listing rules[68] Risk Management - The group has established a risk management plan to address the ownership deficiency of leased properties in Huizhou, Guangdong[40] - The company has implemented a three-tier risk management approach to identify, assess, and manage significant risks[85] - The board is responsible for overseeing the risk management and internal control systems, which are reviewed at least annually for effectiveness[83] Shareholder Information - Major shareholders include Mr. Fang Jinhua with 709,640,000 shares (17.06%) and Mr. Yuan Yunnan with 660,000,000 shares (15.87%) as of December 31, 2020[172] - The company did not repurchase any of its shares during the fiscal year ending December 31, 2020[152] - The company has no provisions in its articles of association regarding preemptive rights for existing shareholders on new share offerings[149] Community Engagement - The company donated a total of HKD 100,000 to registered charities in 2020 to support community sustainable development[130] - The group made charitable donations amounting to HKD 100,000 during the year ended December 31, 2020[174] Financial Position and Assets - Cash and cash equivalents as of December 31, 2020, were approximately HKD 14.32 million, up from HKD 5.00 million as of December 31, 2019[26] - Trade receivables amounted to HKD 10,257,000 as of December 31, 2020, up from HKD 6,276,000 in 2019, with an impairment loss provision of HKD 6,642,000 compared to zero in 2019[191] - Inventory value decreased to HKD 10,556,000 as of December 31, 2020, down from HKD 17,491,000 in 2019, with a recognized inventory write-down of HKD 4,120,000 for the year[194]

Financial Performance - The company recorded revenue of approximately HKD 70.02 million for the nine months ended September 30, 2020, compared to HKD 44.92 million for the same period in 2019, representing a growth of 55.5%[4] - The loss attributable to the owners of the company for the nine months ended September 30, 2020, was approximately HKD 6.97 million, a slight improvement from a loss of HKD 7.36 million in the same period of 2019[4] - The gross profit for the nine months ended September 30, 2020, was HKD 18.51 million, up from HKD 10.48 million in 2019, indicating a gross margin increase[5] - The total comprehensive loss for the nine months ended September 30, 2020, was HKD 7.67 million, compared to a loss of HKD 8.62 million in the same period of 2019[5] - The company reported a basic and diluted loss per share of HKD 0.17 for the nine months ended September 30, 2020, an improvement from HKD 0.21 in 2019[5] - Revenue for the nine months ended September 30, 2020, was HKD 70,021,000, an increase of 56.1% compared to HKD 44,916,000 in the same period of 2019[13] - Loss attributable to owners for the nine months ended September 30, 2020, was HKD 6,969,000, a decrease of 5.3% compared to HKD 7,362,000 in the same period of 2019[18] - Basic and diluted loss per share for the nine months ended September 30, 2020, was HKD 0.17, compared to HKD 0.21 for the same period in 2019[18] - Total revenue for the nine months ended September 30, 2020, increased by approximately 56% to about HKD 70.02 million compared to the same period in 2019[27] - Gross profit for the same period was approximately HKD 18.51 million, up from about HKD 10.48 million in 2019, resulting in a gross margin increase from 23% to 26%[28] Dividend and Shareholder Information - The company did not recommend any dividend payment for the nine months ended September 30, 2020[4] - The company did not recommend any dividend for the nine months ended September 30, 2020, consistent with the same period in 2019[16] - As of September 30, 2020, Mr. Cai holds 174,320,000 shares, representing 4.19% of the company's issued share capital[37] - Major shareholders include Mr. Fang Jinhui with 709,640,000 shares (17.06%) and Mr. Yuan Yunnan with 660,000,000 shares (15.87%) as of September 30, 2020[39] - The company has not granted any stock options under the stock option plan since its adoption on April 10, 2015[41] - No purchases, sales, or redemptions of the company's securities were made by the company or its subsidiaries during the nine months ended September 30, 2020[43] Expenses and Income - The company incurred administrative expenses of HKD 26.95 million for the nine months ended September 30, 2020, significantly higher than HKD 13.80 million in 2019[5] - Sales and distribution expenses increased by approximately 40% to about HKD 4.46 million, primarily due to expenses from the newly acquired financial printing business[30] - Administrative expenses rose by approximately 95% to about HKD 26.95 million, largely due to costs associated with the acquisition of the financial printing business[32] - The company recognized other income of HKD 4.73 million for the nine months ended September 30, 2020, compared to HKD 0.15 million in the same period of 2019[5] - The company reported no income tax expense for the nine months ended September 30, 2020, compared to HKD 429,000 in the same period of 2019[14] Revenue Sources - The company’s revenue from financial printing services for the nine months ended September 30, 2020, was HKD 37,685,000, compared to no revenue in the same period of 2019[13] - The company’s revenue from concert and event income for the nine months ended September 30, 2020, was HKD 309,000, a decrease of 89.0% compared to HKD 2,794,000 in the same period of 2019[13] - The company’s sales of cast metal products for the nine months ended September 30, 2020, were HKD 32,027,000, a decrease of 24.0% compared to HKD 42,122,000 in the same period of 2019[13] - The financial printing business generated new revenue of approximately HKD 37.68 million, contributing to the overall revenue growth[27] Strategic Outlook - The company anticipates a prolonged downturn in the metal casting business due to the ongoing impact of COVID-19 and economic conditions in core markets like Europe and the US[23] - The company completed the acquisition of Solomon Holdings Group Limited on January 6, 2020, enhancing its revenue diversification in financial printing services[24] - The company plans to continue monitoring the COVID-19 situation and implement flexible strategies to maintain market competitiveness[23] - The company is exploring potential investment opportunities to diversify its business and create new revenue streams[23] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to review and provide recommendations on the report[46] - The company has adopted the corporate governance code as per GEM Listing Rules and has complied with its provisions during the nine months ended September 30, 2020[47]