Group 1 - The Hang Seng Index rose by 0.17% to close at 25,165.94 points on August 20 [1] - Hong Kong Entertainment International (08291.HK) closed at HKD 0.118 per share, up 31.11%, with a trading volume of 1.065 million shares and a turnover of HKD 137,200, showing a volatility of 66.67% [1] - Over the past month, Hong Kong Entertainment International has seen a cumulative increase of 12.5%, but a year-to-date decline of 43.75%, underperforming the Hang Seng Index by 25.24% [1] Group 2 - For the fiscal year ending December 31, 2024, Hong Kong Entertainment International reported total revenue of HKD 54.472 million, a year-on-year increase of 12.21% [1] - The company recorded a net profit attributable to shareholders of -HKD 6.914 million, representing a year-on-year increase of 74.43% [1] - The gross profit margin stood at 3.25%, with a debt-to-asset ratio of 300.43% [1] Group 3 - Currently, there are no institutional investment ratings for Hong Kong Entertainment International [1] - The average price-to-earnings (P/E) ratio for the industrial support sector is 14.84 times, with a median of 3.44 times [1] - Hong Kong Entertainment International has a P/E ratio of -1.93 times, ranking 43rd in the industry [1] Group 4 - Hong Kong Entertainment International Holdings Limited is a manufacturer of tinplate packaging products located in Guangdong, China, primarily producing tin cans and steel drums [2] - The company began commercial production of tin cans and steel drums in 1997 and 1998, respectively, with revenue mainly derived from sales in China [2] - The company operates a factory in Foshan, Guangdong, covering approximately 35,936.2 square meters, with 18 production lines [2]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公佈的 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 公佈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。 （股份代號：8291） （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） 董事會會議通告 港娛國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，將於 二零二五年八月二十九日（星期五）舉行董事會會議，以（其中包括）批准本公司 及其附屬公司截至二零二五年六月三十日止六個月的未經審核綜合中期業績及其 刊發，以及考慮派付中期股息（如有）及其他事項。 Hong Kong Entertainment International Holdings Limited 港 娛 國 際 控 股 有 限 公 司 執行董事 王允 香港，二零二五年八月十一日 於本公佈日期，執行董事為王允先生及鄒勇剛先生；獨立非執行董事為黃瑞熾先生、 尹蘇英女士及胡子敬先生。 本公佈乃根據聯交所GEM證券上市規則提供有關本公司的資料。董事願就本公佈 共同及個別承擔全部責任。董事在作出一切合理查詢後確認 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08291 | 說明 | 普通股 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 500,000,000 | HKD | | 0.2 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | | | 本月底結存 | | | 500,000,000 | HKD | | 0.2 | HKD | | 100,000,000 | 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 港娛國際控股有限公司 呈交日期: 2025年8月4日 本月底法定/註冊 ...

Company Overview - 港娱国际控股有限公司 is a manufacturer of tinplate packaging products located in Guangdong, China, primarily producing tin cans and steel drums for storing paints and coatings [2] - The company began commercial production of tin cans and steel drums in 1997 and 1998, respectively, with most revenue generated from sales in China [2] - The company operates a factory in Foshan, Guangdong, covering approximately 35,936.2 square meters, equipped with 18 production lines [2] Financial Performance - As of December 31, 2024, 港娱国际 reported total revenue of 54.472 million yuan, a year-on-year increase of 12.21% [1] - The net profit attributable to shareholders was -6.914 million yuan, showing a year-on-year improvement of 74.43% [1] - The gross profit margin stood at 3.25%, with a high debt-to-asset ratio of 300.43% [1] Market Position and Valuation - 港娱国际's price-to-earnings (P/E) ratio is -1.84, ranking 42nd in its industry, which has an average P/E ratio of 15.81 [1] - The company has underperformed the Hang Seng Index, with a cumulative decline of 46.25% this year, compared to the index's increase of 27.24% [1] - No investment ratings have been issued by institutions for 港娱国际 at this time [1] Industry Context - The tinplate packaging industry primarily serves paint and coating suppliers, with 港娱国际's major clients located in Guangdong province [2] - The industry has a median P/E ratio of 3.59, indicating a significant disparity between 港娱国际's valuation and that of its peers [1]

[Supplemental Announcement Regarding 2024 Annual Report](index=1&type=section&id=Supplemental%20Announcement%20Regarding%20the%20Annual%20Report%20for%20the%20Year%20Ended%20December%2031%2C%202024) This announcement provides supplementary information to the 2024 annual report, specifically detailing the share option scheme [Details of Share Option Scheme](index=1&type=section&id=Share%20Option%20Scheme) This section details the share option scheme, disclosing the number of options available for grant and the total shares issuable under the scheme as required by GEM Listing Rules - This announcement supplements the 2024 annual report, providing additional information on the share option scheme in accordance with GEM Listing Rule 23.07(2)[3](index=3&type=chunk)[4](index=4&type=chunk) Key Data of Share Option Scheme | Item | Quantity / Percentage | | :--- | :--- | | Number of Share Options Available for Grant as of January 1, 2024 | 8,000,000 options | | Number of Share Options Available for Grant as of December 31, 2024 | 8,000,000 options | | Number of Shares Available for Issue as of Annual Report Date | 18,775,352 shares | | Percentage of Issued Shares | 11.73% | - The company explicitly states that no sub-limit has been set for service providers under the share option scheme[4](index=4&type=chunk)

Company Overview - Hongyu International Holdings Limited is a manufacturer of tinplate packaging products located in Guangdong Province, China, primarily producing tin cans and steel drums for storing paints and coatings [2] - The company began commercial production of tin cans and steel drums in 1997 and 1998, respectively, with revenue mainly derived from sales in China [2] - Hongyu International operates a factory in Foshan, Guangdong, covering approximately 35,936.2 square meters, equipped with 18 production lines [2] Financial Performance - As of December 31, 2024, Hongyu International reported total revenue of 54.472 million yuan, a year-on-year increase of 12.21% [1] - The company recorded a net profit attributable to shareholders of -6.914 million yuan, reflecting a year-on-year increase of 74.43% [1] - The gross profit margin stood at 3.25%, with a debt-to-asset ratio of 300.43% [1] Market Position and Valuation - Hongyu International's price-to-earnings (P/E) ratio is -1.65, ranking 42nd in its industry, while the average P/E ratio for the industrial support sector is 16.45 [1] - Other companies in the same sector have P/E ratios ranging from 2.71 to 4.36 [1] Clientele and Operations - The company's primary customers include paint and coating suppliers and other packaging manufacturers, with its five largest clients located in Guangdong Province [2] - Hongyu International sources raw materials from multiple suppliers in China, with tinplate being a key raw material [2] - Certain production processes, such as tinplate printing and lamination, are outsourced to subcontractors [2]

Financial Performance - The group's revenue increased from approximately RMB 485 million for the year ended December 31, 2023, to approximately RMB 545 million for the year ended December 31, 2024, representing a growth of about RMB 60 million or approximately 12.4%[13] - The loss for the year ended December 31, 2024, was approximately RMB 70 million, a significant reduction from the loss of approximately RMB 270 million for the year ended December 31, 2023, primarily due to cost control strategies[13] - Revenue increased from approximately RMB 48.5 million for the year ended December 31, 2023, to approximately RMB 54.5 million for the year ended December 31, 2024, representing a growth of about 12.4%[20] - Cost of sales rose from approximately RMB 47.1 million to approximately RMB 52.7 million, an increase of about 11.9%[21] - Gross profit increased from approximately RMB 1.5 million to approximately RMB 1.8 million, with the gross profit margin rising from about 3.0% to 3.3%[22] - Other losses increased from a loss of approximately RMB 0.7 million to a loss of approximately RMB 3.7 million, representing a rise of about 428.6%[23] - Administrative and other expenses decreased from approximately RMB 13.9 million to approximately RMB 6.9 million, a reduction of about 50.4%[25] - Financing costs decreased from approximately RMB 3.1 million to approximately RMB 1.6 million, a decline of about 48.4%[26] - Loss for the year reduced from approximately RMB 27.0 million to approximately RMB 7.0 million[27] Cash Flow and Financial Position - Total cash and cash equivalents decreased from approximately RMB 20.3 million to approximately RMB 4.1 million[29] - The debt-to-asset ratio increased from 24.6% to 60.0%[29] - The company's issued share capital as of December 31, 2024, is HKD 32 million (approximately RMB 27.909 million), with 160 million ordinary shares issued[40] - The company’s reserves available for distribution to shareholders as of December 31, 2024, were approximately zero million RMB[150] - As of December 31, 2024, the company's net current liabilities and total liabilities were approximately RMB 49,109,000 and RMB 93,598,000, respectively[187] Employee and Workforce Management - The company employed 75 employees as of December 31, 2024, down from 92 employees in the previous year[34] - The employee count at the end of 2024 was 75, down from 92 in 2023, with a turnover rate of 20%[111] - The total employee turnover rate for 2024 was 33%, slightly down from 34% in 2023[113] - The average training hours provided per employee during the reporting period was 2.6 hours, with 87% of employees receiving training[119] - In 2024, the percentage of trained employees increased to 87%, up from 71% in 2023[120] Corporate Governance - The board consists of three executive directors and three independent non-executive directors as of December 31, 2024[51] - The board held a total of 11 meetings during the year ending December 31, 2024[57] - All directors confirmed their commitment to contribute sufficient time and effort to the company's affairs[53] - The company does not have a corporate governance committee; the board as a whole is responsible for corporate governance duties[58] - The board regularly reviews compliance with corporate governance codes and policies[58] Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes the importance of a stable and efficient governance framework to address potential environmental, social, and governance risks[89] - The company has formed an environmental, social, and governance working group to support the board and oversee the implementation of related measures[91] - The company identifies seven key social aspects as crucial, including employment, health and safety, and supply chain management[92] - The company aims to reduce energy intensity by 10% from the 2022 baseline by 2027[94] - The company plans to lower water consumption intensity by 10% from the 2022 baseline by 2027[96] Risk Management - The company has established a risk management framework to mitigate operational risks[68] - The company has identified potential climate-related risks, including acute physical risks from extreme weather events and transitional market risks due to increased demand for environmentally friendly materials[109] - The company has implemented safety training and guidelines to enhance employee safety awareness and minimize the risk of workplace injuries[114] Customer and Supplier Relationships - The largest customer accounted for approximately 21.5% of total revenue for the year ended December 31, 2024, down from 33.6% in 2023[151] - Revenue from the top five customers represented about 47.7% of total revenue for the year ended December 31, 2024, compared to 72.2% in 2023[151] - The largest supplier accounted for approximately 8.2% of total procurement for the year ended December 31, 2024, down from 31.1% in 2023[151] - Procurement from the top five suppliers constituted about 35.0% of total procurement for the year ended December 31, 2024, compared to 80.0% in 2023[151] Compliance and Legal Matters - The company has not reported any significant violations of applicable environmental laws and regulations during the reporting period[102] - The company has maintained strict customer data protection measures, with no significant violations of applicable health and safety, advertising, labeling, and privacy laws reported[131] - The company has not discovered any incidents of corruption or fraud during the reporting period, and there were no violations of relevant laws regarding bribery, extortion, fraud, or money laundering[132] Audit and Financial Reporting - The audit committee reviewed the consolidated financial statements for the fiscal year ending December 31, 2024, confirming compliance with applicable accounting standards[183] - The company appointed a new auditor, Zhongzhi Xin (Hong Kong) CPA Limited, effective January 29, 2024, to fill the vacancy left by the previous auditor[184] - The auditors maintain professional skepticism and communicate significant audit findings to the audit committee[197] Strategic Initiatives - The group plans to expand its sales channels to seek new customers as part of its strategy to diversify its revenue streams and reduce reliance on any single customer group[14] - The management team believes the group is well-positioned to compete against competitors and face future challenges due to its experienced management and market reputation[15] - The company has committed to increasing charitable work to fulfill its corporate social responsibility and is actively seeking opportunities to participate in community programs[134]

Financial Performance - For the fiscal year ending December 31, 2024, the total revenue was RMB 54,472,000, an increase of 12.5% compared to RMB 48,545,000 in 2023[4]. - The gross profit for the same period was RMB 1,771,000, representing a gross margin of approximately 3.25%[4]. - The net loss for the year was RMB 6,954,000, significantly improved from a net loss of RMB 27,038,000 in the previous year, indicating a reduction of 74.3%[4][5]. - The total comprehensive loss for the year was RMB 6,263,000, down from RMB 25,872,000 in 2023, reflecting a 75.7% decrease[5]. - Revenue from customer contracts for tin-plated packaging products was RMB 54,472,000 in 2024, up 12% from RMB 48,545,000 in 2023[22]. - The group reported a net loss before tax of approximately RMB 6,914,000 for 2024, compared to a loss of RMB 27,038,000 in 2023, indicating an improvement of 74%[28]. - The company reported a basic and diluted loss per share of RMB 0.04, improved from RMB 0.17 in 2023[5]. - The group did not declare any dividends for the year ended December 31, 2024, consistent with 2023[27]. Assets and Liabilities - Current assets decreased to RMB 44,614,000 from RMB 90,823,000 in 2023, a decline of 50.9%[6]. - Current liabilities were RMB 93,723,000, slightly down from RMB 108,236,000 in the previous year[6]. - The company’s non-current assets decreased to RMB 2,084,000 from RMB 22,828,000 in 2023, a decline of 90.9%[6]. - The group’s total liabilities net of current liabilities stood at RMB (93,598,000), compared to RMB (87,335,000) in the previous year[6]. - As of December 31, 2024, the company's net current liabilities and total liabilities were approximately RMB 49,109,000 and RMB 93,598,000, respectively[71]. - The company's cash and cash equivalents totaled approximately RMB 41 million as of December 31, 2024, down from RMB 203 million as of December 31, 2023[48]. - The company's debt-to-asset ratio increased from 24.6% as of December 31, 2023, to 60.0% as of December 31, 2024[48]. Operational Developments - The company has commenced operations in product repackaging and sales during the fiscal year ending December 31, 2024[7]. - The group has implemented cost control measures to enhance operational efficiency and improve future profitability and cash flow[17]. - The group continues to seek additional financing resources, including issuing shares or obtaining other credit financing, to meet its due debts and obligations[17]. - The group’s employee costs (excluding directors' remuneration) decreased to RMB 2,417,000 in 2024 from RMB 2,927,000 in 2023, a decline of 17%[26]. - The group employed 115 employees as of December 31, 2024, an increase from 92 employees in 2023[52]. Revenue Sources - Revenue from external customers in mainland China (excluding Hong Kong) was RMB 40,305,000 in 2024, a decrease from RMB 44,843,000 in 2023, while revenue from Hong Kong increased to RMB 14,167,000 from RMB 3,702,000[19]. - Revenue from major customer A1 decreased to RMB 11,735,000 in 2024 from RMB 16,333,000 in 2023, representing a decline of 28%[20]. Financial Management - The total financing costs decreased to RMB 1,566,000 in 2024 from RMB 3,072,000 in 2023, a reduction of 49%[23]. - The group incurred a loss of RMB 3,804,000 from fair value changes of financial assets in 2024, compared to a gain of RMB 414,000 in 2023[23]. - The group’s total borrowings decreased to RMB 74,573,000 in 2024 from RMB 120,750,000 in 2023, a decrease of 38%[32]. - Financing costs decreased from approximately RMB 31 million for the year ended December 31, 2023, to approximately RMB 16 million for the year ended December 31, 2024, a reduction of about 48.4%[45]. Investment and Future Plans - The group plans to diversify its investment portfolio to reduce concentration and investment risks due to recent market volatility[53]. - The group has maintained a cautious investment approach to minimize potential financial risks[54]. - The board believes that the future performance of the group's investments will be volatile and significantly influenced by the overall economic environment and market conditions[54]. - The group has no significant investment or capital asset plans other than those disclosed in the annual report as of December 31, 2024[57]. Compliance and Governance - The audit committee reviewed the consolidated financial statements for the year ended December 31, 2024, confirming compliance with applicable accounting standards and GEM listing rules[69]. - The company has adopted the principles set out in Appendix 15 of the GEM Listing Rules and complied with all applicable code provisions[68]. - There are no known competitive interests from directors or controlling shareholders that may conflict with the company's business as of December 31, 2024[67]. - The independent auditor's report highlighted significant uncertainties regarding the company's ability to continue as a going concern[71]. Miscellaneous - The company has not purchased, sold, or redeemed any of its listed securities during the year ended December 31, 2024[66]. - The company has engaged Consultant A to monitor and improve production efficiency, leveraging their expertise in the technology sector[65].

[Corporate Information](index=4&type=section&id=Corporate%20Information) This section discloses key corporate information including management, board members, registered offices, and auditors - The report discloses the company's core management, board of directors, committee members, and key corporate information such as the registered office, principal place of business, auditor, and share registrar[4](index=4&type=chunk)[6](index=6&type=chunk) - The company changed its name from "Wancheng Metal Packaging Company Limited" to "**Hong Kong Entertainment International Holdings Limited**" on June 4, 2024[14](index=14&type=chunk) - The company's auditor is **ZHONGHUI ANDA CPA Limited**, appointed on January 29, 2024[6](index=6&type=chunk) [Financial Highlights](index=6&type=section&id=Financial%20Highlights) This section presents a summary of key financial results and balance sheet positions for the reporting period Financial Highlights for the Six Months Ended June 30, 2024 | Indicator | H1 2024 | H1 2023 | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | Approx. RMB 38.1 million | Approx. RMB 13.9 million | +174.1% | | Loss attributable to owners of the Company | Approx. RMB 11.1 million | Approx. RMB 5.2 million | Loss widened | | Interim dividend | Not recommended | Nil | - | Summary of Financial Position | Indicator | June 30, 2024 | December 31, 2023 | Change | | :--- | :--- | :--- | :--- | | Cash and bank balances | Approx. RMB 10.6 million | RMB 26.3 million | Decreased | | Gearing ratio | Approx. 29.3% | Approx. 24.6% | Increased | [Financial Statements](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Interim%20Results) This section provides the unaudited condensed consolidated financial statements, including income, financial position, equity changes, and cash flows [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) Revenue grew significantly by 174.1%, but a decline in gross profit and wider other losses led to an increased loss attributable to company owners Key Items of Consolidated Statement of Profit or Loss (For the six months ended June 30) | Indicator (RMB'000) | 2024 (Unaudited) | 2023 (Unaudited) | Change (YoY) | | :--- | :--- | :--- | :--- | | Revenue | 38,080 | 13,923 | +174.1% | | Cost of sales | (37,284) | (12,851) | +190.1% | | Gross profit | 796 | 1,072 | -25.7% | | Other losses, net | (5,516) | (1,445) | +281.7% | | Loss before income tax | (11,133) | (5,153) | +116.0% | | Loss for the period attributable to owners of the Company | (11,133) | (5,153) | +116.0% | | Loss per share (RMB cents) | (6.96) | (3.22) | Loss widened | [Consolidated Statement of Financial Position](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the company was in a net liability position of RMB 98.0 million, an increase from RMB 87.3 million at year-end Key Items of Consolidated Statement of Financial Position (RMB'000) | Indicator | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | Non-current assets | 21,081 | 22,828 | | Current assets | 74,371 | 90,823 | | Current liabilities | 100,685 | 108,236 | | **Net current liabilities** | **(26,314)** | **(17,413)** | | Non-current liabilities | 92,750 | 92,750 | | **Net liabilities** | **(97,983)** | **(87,335)** | [Consolidated Statement of Changes in Equity](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity decreased from negative RMB 87.3 million to negative RMB 98.0 million, primarily due to the loss incurred during the period - The change in total equity was mainly driven by the **loss for the period of RMB 11.1 million**, partially offset by an increase in exchange reserve and the lapse of share options[12](index=12&type=chunk) [Consolidated Statement of Cash Flows](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) The company experienced a net decrease in cash of RMB 12.6 million, driven by a significant increase in cash used in operating activities Summary of Statement of Cash Flows (For the six months ended June 30, RMB'000) | Activity Type | 2024 (Unaudited) | 2023 (Unaudited) | | :--- | :--- | :--- | | Net cash used in operating activities | (14,409) | (4,346) | | Net cash from investing activities | 3,455 | – | | Net cash used in financing activities | (1,659) | (766) | | **Net decrease in cash and cash equivalents** | **(12,613)** | **(5,112)** | | Cash and cash equivalents at end of period | 7,999 | 25,870 | [Notes to the Financial Information](index=12&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Information) This section provides detailed explanations for the key items and accounting policies presented in the financial statements [Note 1: General Information and Basis of Preparation](index=12&type=section&id=1.%20General%20Information%20and%20Basis%20of%20Preparation) A material uncertainty exists regarding the Group's ability to continue as a going concern due to its net loss and net liability position - The company's principal activities are the manufacturing and sale of tinplate packaging products in the PRC and the repackaging and sale of cosmetic products in Hong Kong[14](index=14&type=chunk) - **A material uncertainty related to going concern exists**: as of June 30, 2024, the Group incurred a net loss of approximately RMB 11.1 million, had net current liabilities of approximately RMB 26.3 million, and net liabilities of approximately RMB 98.0 million[16](index=16&type=chunk) - Management believes the Group will have sufficient working capital through measures like seeking other financial resources and tightening cost controls, thus the financial statements are prepared on a going concern basis[16](index=16&type=chunk) [Note 2: Revenue, Other Losses, and Segment Information](index=14&type=section&id=2.%20Revenue,%20Other%20Losses,%20Net%20and%20Segment%20Information) All revenue was generated from the tinplate business in China, with a high concentration from a single customer contributing 37% of total revenue - During the period, all revenue of **RMB 38.1 million** was generated from the sale of tinplate packaging products and tinplates in the PRC, with no revenue from the cosmetics business[18](index=18&type=chunk)[19](index=19&type=chunk) - Net other losses amounted to **RMB 5.5 million**, primarily comprising a loss of RMB 5.6 million on financial assets at fair value through profit or loss, and a gain of RMB 55,000 on the disposal of a subsidiary[18](index=18&type=chunk) Revenue Contribution from Major Customers (RMB'000) | Customer | Revenue in H1 2024 | % of Total Revenue | | :--- | :--- | :--- | | Customer D | 14,094 | 37.0% | | Customer B | 5,636 | 14.8% | [Note 12: Borrowings](index=20&type=section&id=12.%20Borrowings) Total borrowings remained stable at RMB 120.75 million, with a significant unsecured, interest-free loan from a director forming the bulk of non-current liabilities Composition of Borrowings (RMB'000) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Current Liabilities (Secured bank borrowings) | 28,000 | 28,000 | | Non-current Liabilities (Unsecured borrowings) | 92,750 | 92,750 | | **Total** | **120,750** | **120,750** | - The unsecured borrowing of **RMB 92.75 million** is due to a director of the Company's PRC subsidiary, is interest-free, and repayable on June 30, 2026[33](index=33&type=chunk) [Note 15: Disposal of a Subsidiary](index=25&type=section&id=15.%20Disposal%20of%20a%20Subsidiary) The company disposed of a 51% equity interest in its cosmetics repackaging subsidiary for HK$180,000, resulting in a gain of RMB 55,000 - On May 22, 2024, the company sold a **51% equity interest** in Wancheng Group Limited for HK$180,000 to leverage the purchaser's channels to expand the cosmetics business[50](index=50&type=chunk) - Following the disposal, the company retained a **49% interest** in Wancheng Group, which is classified as an interest in an associate[50](index=50&type=chunk) - A **gain on disposal of RMB 55,000** was recognized from this transaction[51](index=51&type=chunk) [Management Discussion and Analysis](index=27&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's perspective on the company's business performance, financial condition, and future outlook [Business Review and Outlook](index=27&type=section&id=Business%20Review%20and%20Outlook) Revenue grew substantially due to economic recovery in China, but the net loss widened; future plans involve upgrading the tinplate business and expanding into food repackaging - Revenue growth was primarily driven by increased sales demand for tinplate packaging products as China's economy gradually recovered[53](index=53&type=chunk) - The widened loss was mainly attributable to increases in selling expenses, administrative expenses, and other net losses[53](index=53&type=chunk) - **Future Strategy**: - **Tinplate Business**: Upgrade production lines for steel pails and tin cans to enhance efficiency and competitiveness - **New Business**: Expand the repackaging and retail business by shifting focus from cosmetics to higher-margin food products like health foods and tea[53](index=53&type=chunk)[54](index=54&type=chunk) [Financial Review](index=29&type=section&id=Financial%20Review) This review details the drivers behind financial changes, including revenue growth from economic recovery and a sharp decline in gross margin due to lower selling prices [Revenue](index=29&type=section&id=Revenue) Revenue increased by 174.1% to approximately RMB 38.1 million, driven by higher product demand from China's economic recovery - **Revenue grew by 174.1% year-on-year**, primarily due to increased sales demand for the Group's products amid China's economic recovery[56](index=56&type=chunk) [Gross Profit and Gross Profit Margin](index=29&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit margin declined sharply from 7.7% to 2.1% as a result of a decrease in the average selling price of the Group's products Gross Profit and Margin Changes | Indicator | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Gross Profit | Approx. RMB 0.8 million | Approx. RMB 1.1 million | | Gross Profit Margin | 2.1% | 7.7% | [Other Losses, Net](index=30&type=section&id=Other%20Losses,%20Net) Net other losses increased from RMB 1.4 million to RMB 5.6 million, mainly due to fair value losses on financial assets - Net other losses increased from approximately RMB 1.4 million to **approximately RMB 5.6 million**, primarily consisting of fair value losses on financial assets[59](index=59&type=chunk) [Finance Costs](index=30&type=section&id=Finance%20Costs) Finance costs rose by 112.5% to RMB 1.7 million, largely due to increased use of bills payable associated with higher procurement volumes - **Finance costs increased by 112.5%** from approximately RMB 0.8 million to approximately RMB 1.7 million, mainly due to the increased use of bills payable[62](index=62&type=chunk) [Loss for the Period](index=31&type=section&id=Loss%20for%20the%20Period) The loss for the period widened from RMB 5.2 million to RMB 11.1 million, driven by higher finance costs, other losses, and lower gross profit - The loss increased from approximately RMB 5.2 million to **approximately RMB 11.1 million**, mainly due to (i) an increase in finance costs; (ii) an increase in other losses, net; and (iii) a decrease in gross profit[63](index=63&type=chunk) [Liquidity and Financial Resources](index=31&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's liquidity tightened as cash balances decreased, while the gearing ratio rose from 25% to 29%, indicating higher leverage Changes in Liquidity Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total cash and bank balances | Approx. RMB 8.0 million | RMB 20.3 million | | Gearing ratio | Approx. 29% | Approx. 25% | [Other Information Disclosure](index=34&type=section&id=Other%20Information%20Disclosure) This section covers additional corporate governance and compliance matters, including the share option scheme and the audit committee's review [Share Option Scheme](index=34&type=section&id=Share%20Option%20Scheme) As of June 30, 2024, 10,775,352 share options remained outstanding, with 2,064,000 options having lapsed during the period Share Option Movements (For the six months ended June 30, 2024) | Item | Number of Share Options | | :--- | :--- | | Outstanding at beginning of period | 12,839,352 | | Lapsed during the period | (2,064,000) | | **Outstanding at end of period** | **10,775,352** | [Audit Committee](index=37&type=section&id=Audit%20Committee) The Audit Committee, comprising two independent non-executive directors, has reviewed the unaudited interim financial information for the period - The Audit Committee consists of Mr. Wong Shui Chi (Chairman) and Mr. Wu Chi King, both of whom are independent non-executive directors[86](index=86&type=chunk) - The Audit Committee has reviewed with management the condensed consolidated interim financial information of the Group for the six months ended June 30, 2024[86](index=86&type=chunk)

Financial Performance - For the six months ended June 30, 2024, the group's revenue was approximately RMB 381 million, an increase of approximately 174.1% compared to RMB 139 million for the same period in 2023[9] - Revenue for the six months ended June 30, 2024, was RMB 38,080,000, compared to RMB 13,923,000 for the same period in 2023, representing a significant increase of 173%[10] - The company recorded a loss attributable to the owners of the company of approximately RMB 111 million for the six months ended June 30, 2024, compared to a loss of approximately RMB 52 million for the same period in 2023[9] - The net loss attributable to the owners of the company for the six months ended June 30, 2024, was RMB 11,133,000, compared to RMB 5,153,000 in 2023, reflecting an increase in losses of 116%[10] - The company recorded a loss of approximately RMB 11.1 million for the six months ended June 30, 2024, compared to a loss of approximately RMB 5.2 million for the same period in 2023[65] - Gross profit for the same period was RMB 796,000, down from RMB 1,072,000 in 2023, indicating a decrease of 26%[10] - Gross profit decreased from approximately RMB 1.1 million for the six months ended June 30, 2023, to approximately RMB 0.8 million for the six months ended June 30, 2024, with the gross margin dropping from approximately 7.7% to 2.1%[60] Cash Flow and Liquidity - As of June 30, 2024, the group's cash and bank balances totaled approximately RMB 106 million, down from RMB 263 million as of December 31, 2023[9] - Cash and cash equivalents decreased to RMB 7,999,000 as of June 30, 2024, from RMB 20,348,000 at the beginning of the period, a decline of 61%[15] - The company reported a net cash outflow from operating activities of RMB 14,409,000 for the six months ended June 30, 2024, compared to RMB 4,346,000 in 2023, indicating a worsening cash flow situation[15] - The group maintains a conservative financial policy and closely monitors its liquidity to meet funding needs[68] Debt and Liabilities - The group's debt-to-asset ratio increased from approximately 24.6% as of December 31, 2023, to approximately 29.3% as of June 30, 2024[9] - Total current assets decreased to RMB 74,371,000 as of June 30, 2024, from RMB 90,823,000 at the end of December 2023, a reduction of 18%[11] - Total liabilities increased to RMB 100,685,000 as of June 30, 2024, compared to RMB 108,236,000 at the end of December 2023, a decrease of 7%[12] - The total borrowings of the company amounted to approximately RMB 120.8 million as of June 30, 2024[57] - The company has secured bank loans of RMB 28,000,000, which remains unchanged from December 31, 2023, while unsecured loans total RMB 92,750,000, also unchanged[34] Inventory and Sales - The company’s inventory increased significantly to RMB 25,858,000 as of June 30, 2024, from RMB 17,477,000 at the end of December 2023, an increase of 48%[11] - The cost of inventory recognized as an expense was RMB 37,284,000 for the six months ended June 30, 2024, compared to RMB 12,851,000 in the same period of 2023, indicating a rise of 190%[25] - Revenue from the sale of tinplate packaging products and tinplate amounted to RMB 38,080,000 for the three months ended June 30, 2024[20] - There was no revenue generated from the repackaging and sale of cosmetics for the six months ended June 30, 2024[20] Corporate Governance and Compliance - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[9] - The company has adopted written guidelines for directors' securities trading, complying with GEM Listing Rules sections 5.48 to 5.67[86] - The board believes that the company has adopted and followed the principles of the Corporate Governance Code as per GEM Listing Rules Appendix 15[87] - An Audit Committee has been established in accordance with GEM Listing Rules section 5.28, responsible for reviewing and supervising the financial reporting process and internal control procedures[88] Employee and Operational Metrics - The group employed 102 employees as of June 30, 2024, compared to 92 employees as of December 31, 2023[73] - Employee costs for the six months ending June 30, 2024, were approximately RMB 1.8 million, down from RMB 2.1 million in the previous year[73] Future Plans and Strategies - The company plans to seek additional financial resources, including issuing shares or obtaining credit financing, to meet its financial obligations[18] - The group aims to improve operational efficiency and profitability through cost control measures[18] - The company plans to upgrade existing production lines for steel drums to enhance sales revenue potential and maintain competitiveness[55] - The company aims to expand its product portfolio in the repackaging and retail business, particularly focusing on food products, which are expected to yield higher profit margins compared to cosmetics[56] - The company intends to participate in several exhibitions related to paints and coatings to expand market share and recruit experienced staff to enhance the sales team[56]