公告表示，公司预期的净亏损主要由于(i)深圳厂房于2024年5月关闭以及惠州厂房于2025年5月才取得印 刷牌照，导致收益减少；及(ii)集团于2025年上半年融资成本增加。展望未来，公司将于技术更先进的 印刷业务探索及寻找其他机会，以开拓集团的收入来源。 格隆汇8月26日丨万里印刷(08385.HK)发布公告，公司预期于2025年上半年录得权益持有人应占除税后 净亏损不少于2640万港元，而2024年上半年则录得除税后净亏损约2900万港元。集团的收益预计由2024 年上半年的约4350万港元减少至2025年上半年的约120万港元。 ...

根据目前可得资料，公司预期之净亏损主要由于(i)深圳厂房于2024年5月关闭以及惠州厂房于2025年5月 才取得印刷牌照，导致收益减少;及(ii)集团于2025年上半年融资成本增加。展望未来，公司将于技术更 先进的印刷业务探索及寻找其他机会，以开拓集团的收入来源。 万里印刷(08385)发布公告，公司预期于2025年上半年录得权益持有人应占除税后净亏损不少于2640万 港元，而截至2024年6月30日止六个月则录得除税后净亏损约2900万港元。集团的收益预计由2024年上 半年的约4350万港元减少至2025年上半年的约120万港元。 ...

根据目前可得资料，公司预期之净亏损主要由于(i)深圳厂房于2024年5月关闭以及惠州厂房于2025年5月 才取得印刷牌照，导致收益减少;及(ii)集团于2025年上半年融资成本增加。展望未来，公司将于技术更 先进的印刷业务探索及寻找其他机会，以开拓集团的收入来源。 智通财经APP讯，万里印刷(08385)发布公告，公司预期于2025年上半年录得权益持有人应占除税后净亏 损不少于2640万港元，而截至2024年6月30日止六个月则录得除税后净亏损约2900万港元。集团的收益 预计由2024年上半年的约4350万港元减少至2025年上半年的约120万港元。 ...

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 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Prosperous Printing Company Limited 萬 里 印 刷 有 限 公 司 （ 於 香 港 註 冊 成 立 的 有 限 公 司 ） （股份代號：8385） 預期虧損減少及收益下滑 本公佈乃由萬里印刷有限公司（「本公司」，連同其附屬公司統稱為「本集團」）根據香港聯 合交易所有限公司GEM證券上市規則（「GEM上市規則」）第17.10條及香港法例第571章證 券及期貨條例第XIVA部項下內幕消息條文（定義見GEM上市規則）而作出。 本公司董事（「董事」）會（「董事會」）謹此知會本公司股東（「股東」）及本公司潛在投資者， 根據對本集團截至2025年6月30日止六個月（「2025年上半年」）未經審核綜合管理賬目的初 步審閱及董事會現有可得資料，本公司預期於2025年上半年錄得權益持有人應佔除稅後 淨虧損不少於26.4百萬港元，而截至2024年6月30日止六個月（「2024年上半年」） ...

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佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部分內容 而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 Prosperous Printing Company Limited 董事會會議通告 萬里印刷有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，董事會會議將於 2025年8月29日（星期五）舉行，藉以（其中包括）考慮及批准本公司及其附屬公司截至2025 年6月30日止六個月的未經審核中期業績及其於香港聯合交易所有限公司GEM之網站及本 公司之網站之發佈，以及處理任何其他事務（如有）。 承董事會命 萬里印刷有限公司 主席兼執行董事 林三明 香港，2025年8月18日 於本公佈日期，執行董事為林三明先生、姚遠女士、陳秀寶女士、許鈺玲女士及陸偉先生； 及獨立非執行董事為張延女士、黃禧超先生及梁家進先生。 本公佈乃遵照香港聯合交易所有限公司GEM證券上市規則之規定，提供有關本公司之資料， 董事願共同及個別對此負全責。董事在作出一切合理查詢後，確認就其所深知及所確信， 本公佈所載資料在各重大方面均 ...

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 | 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: | 萬里印刷有限公司（於香港註冊成立的有限公司） | | | | 呈交日期: | 2025年8月1日 | | | | 不適用 I. 法定/註冊股本變動 | | | | | 備註： | | | | | | 自新《公司條例》(香港法例第622章) 於2014年3月3日實施後, 萬里印刷有限公司, 作为於香港註册成立的公司, 不再有法定股本。 | | | | 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) | 08385 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | ...

Financial Performance - The company recorded a loss of approximately HKD 45,607,000 for the year ended December 31, 2024[3]. - As of December 31, 2024, the company's net current liabilities amounted to approximately HKD 134,213,000[3]. - Total bank loans and overdrafts were approximately HKD 107,580,000, which are due for repayment within one year[3]. - The company's cash and cash equivalents were only about HKD 849,000 as of the same date[3]. Cost Management - Administrative expenses decreased from approximately HKD 50.9 million in 2023 to about HKD 43.1 million in 2024 due to strict cost control measures[6]. - The company has shifted its business model from in-house production to outsourcing orders to a factory in Huizhou, significantly reducing fixed costs for 2025[6]. Financial Support and Restructuring - The chairman has signed a continuous financial support letter to ensure the company can meet its debt obligations[6]. - The company is actively seeking alternative financing opportunities, including share placements and convertible bonds[6]. - The company has engaged in discussions with banks to resolve loan repayment issues and has had vacant properties taken over by banks[6]. Audit Concerns - The auditor was unable to obtain necessary information to assess the feasibility of the company's plans, resulting in a disclaimer of opinion[5].

Financial Performance - The group's revenue for the year ended December 31, 2024, was approximately HKD 50.1 million, a decrease of about 65.7% compared to HKD 146.2 million for the year ended December 31, 2023[7]. - The gross loss for the year ended December 31, 2024, was approximately HKD 2.0 million, compared to a gross profit of approximately HKD 34.9 million for the year ended December 31, 2023[7]. - The net loss for the year ended December 31, 2024, was approximately HKD 45.6 million, compared to a net loss of approximately HKD 23.0 million for the year ended December 31, 2023[7]. - Revenue decreased by approximately 65.7% from about HKD 146.2 million for the year ended December 31, 2023, to about HKD 50.1 million for the year ended December 31, 2024, primarily due to a reduction in sales orders[29]. - Net loss for the year ended December 31, 2024, was approximately HKD 45.6 million, compared to a net loss of about HKD 23.0 million for the year ended December 31, 2023, mainly due to decreased customer orders[39]. - Gross loss of approximately HKD 2.0 million was recorded for the year ended December 31, 2024, with a gross margin of -3.9%, compared to a gross profit of about HKD 34.9 million and a gross margin of 23.9% for the previous year[34]. - Other income decreased by approximately 82.1% from about HKD 6.7 million for the year ended December 31, 2023, to about HKD 1.2 million for the year ended December 31, 2024, primarily due to the absence of one-time government subsidies[35]. Operational Changes - The group ceased operations at its Shenzhen factory in June 2024 and has also stopped operations at its Hong Kong factory, transferring operations to a commercial bank[10]. - The group plans to outsource printing orders to the Huizhou factory and other subcontractors in mainland China following the cessation of its own factory operations[10]. - The company closed its Shenzhen factory in June 2024 due to a significant decrease in customer orders and low profit margins[115]. - The Hong Kong office's production facilities were also closed in December 2024[115]. - The company entered into a joint venture agreement to invest in a printing factory in Huizhou, Guangdong, holding a 28% stake in the joint venture[116]. - The Huizhou factory will cover an area of 9,640 square meters and is planned to be equipped with five printing machines, binding machines, folding machines, and sewing machines[116]. Business Strategy and Future Outlook - The group aims to adapt to a new business model through the Huizhou factory to maintain operations, despite facing challenges such as global economic uncertainty and technological advancements in publishing[11]. - The group believes that outsourcing will significantly reduce fixed cash flow costs, thereby improving cash flow[11]. - The company has set a future revenue guidance of HKD 1.5 billion for the next fiscal year, indicating a projected growth of 25%[18]. - The company is exploring potential acquisitions in the Southeast Asian market to diversify its service offerings[21]. - A new product line focused on eco-friendly printing solutions is expected to launch in Q2 2024, targeting a 10% market share within the first year[22]. - The company has implemented a new strategy to enhance customer engagement through digital platforms, aiming for a 15% increase in customer retention rates[23]. Financial Health and Risks - The group will continue to face risks in regaining customer orders due to weak market demand and geopolitical tensions, including the Russia-Ukraine conflict and US-China trade disputes[13]. - The company recorded a loss of approximately HKD 45,607,000 for the year ending December 31, 2024, with net current liabilities of about HKD 134,213,000[41]. - Total bank loans and overdrafts amounted to approximately HKD 107,580,000, which are due for repayment within one year, while cash and bank balances were only about HKD 849,000[41]. - The company is facing significant uncertainty regarding its ability to continue as a going concern due to its financial situation[42]. - The company plans to implement cost control measures to improve cash flow and is exploring alternative financing options to meet existing financial obligations[99]. - The group is actively negotiating with banks to seek continued support and avoid immediate repayment due to loan covenant breaches[99]. Corporate Governance and Compliance - The board does not recommend the payment of a final dividend for the year ended December 31, 2024[7]. - The company has complied with the corporate governance code principles for the year ending December 31, 2024, except for a deviation regarding the separation of roles between the chairman and CEO[61]. - The board held four meetings during the reporting period, with full attendance from all directors[70]. - The audit committee held four meetings during the reporting period, with all members attending all meetings, and reviewed the audited consolidated financial statements for the reporting period[81]. - The company has established a robust internal control and risk management system aimed at managing risks rather than eliminating them[92]. - The company has not received any reports of fraud or corruption activities in the fiscal years 2024 and 2023, reflecting its commitment to fair business practices[189]. Environmental and Social Responsibility - The company emphasizes environmental protection and compliance with relevant environmental regulations, including the Environmental Protection Law of the People's Republic of China[117][118]. - The company aims to create long-term value for stakeholders through sustainable development and social responsibility initiatives[112]. - The company’s environmental, social, and governance report covers the fiscal year 2024, with comparative data from the fiscal year 2023[112]. - The company aims to reduce greenhouse gas emissions and hazardous waste levels to create a cleaner environment and mitigate severe weather sources[122]. - The company encourages double-sided copying and electronic documentation to reduce paper usage in office settings[129]. - The company is committed to responsible corporate citizenship and aims to support local community economic and social vitality[190]. Employee Management and Safety - The employee count at the end of FY2024 decreased to 9 from 397 in FY2023, representing a reduction of 97.73%[149]. - Employee costs in FY2024 totaled HKD 39.56 million, down 39.16% from HKD 59.66 million in FY2023, primarily due to the closure of the Shenzhen factory[153]. - The company reported zero work-related injuries and zero lost workdays in the 2024 fiscal year, compared to 20 reported injuries and 185 lost workdays in the previous year[174]. - The company has established a health prevention program at the Shenzhen factory, including temperature checks and sanitation measures for all personnel entering the facility[172]. - The company has implemented health and safety training programs to promote workplace safety awareness[175]. - The company is committed to respecting labor rights and human rights, ensuring voluntary employment conditions and prohibiting forced labor[164].

Financial Performance - The group's revenue for the year ended December 31, 2024, was approximately HKD 50.1 million, a decrease of about 65.7% from approximately HKD 146.2 million for the year ended December 31, 2023[10]. - The gross loss for the year ended December 31, 2024, was approximately HKD 2.0 million, compared to a gross profit of approximately HKD 34.9 million for the year ended December 31, 2023[10]. - The net loss for the year ended December 31, 2024, was approximately HKD 45.6 million, compared to a net loss of approximately HKD 23.0 million for the year ended December 31, 2023[10]. - Other income decreased by approximately 82.1% from about HKD 6.7 million for the year ended December 31, 2023, to about HKD 1.2 million for the year ending December 31, 2024, mainly due to the absence of one-time government subsidies[38]. - Administrative expenses decreased from approximately HKD 50.9 million for the year ended December 31, 2023, to about HKD 43.1 million for the year ending December 31, 2024, primarily due to reduced employee salaries[39]. - Financial costs decreased from about HKD 9.8 million for the year ended December 31, 2023, to approximately HKD 3.8 million for the year ending December 31, 2024, mainly due to a reduction in loan amounts[40]. - The group recorded a loss of approximately HKD 45,607,000 for the year ending December 31, 2024[100]. - As of December 31, 2024, the group's net current liabilities amounted to approximately HKD 134,213,000[100]. - Total bank loans and overdrafts amounted to approximately HKD 107,580,000, which are due for repayment within one year[100]. - The group's cash and bank balances were only approximately HKD 849,000 as of the same date[100]. Operational Changes - The group ceased operations at its Shenzhen factory in June 2024 and has transferred its Hong Kong factory operations to a commercial bank[12][13]. - The remaining operations of the group will continue to provide printing services, shifting from in-house production to outsourcing printing orders to Huizhou factory or other external contractors in China[13]. - The Huizhou factory has commenced operations and has started receiving subcontract orders from the group[13]. - The Shenzhen factory ceased operations in June 2024, and the Hong Kong factory has also stopped operations, with orders being redirected to the Huizhou factory and other subcontractors in mainland China[33]. - The company aims to adapt its business model through the Huizhou factory to maintain operations, despite facing risks from global economic uncertainties and industry challenges[34]. - The company plans to outsource printing orders to the Huizhou factory and other external subcontractors to reduce fixed cash flow costs and improve cash flow[34]. - The company has a long history in the printing industry since its establishment in 1992 and intends to leverage its competitive advantages to secure orders from overseas clients[34]. Risk Management - The group will face several risks in the future, including the need to regain customer orders due to weak market demand and economic uncertainties stemming from the Russia-Ukraine conflict and US-China trade disputes[16]. - The company faced significant uncertainty regarding its ability to continue as a going concern due to potential violations of loan covenants and the need to repay approximately HKD 96.062 million in current bank borrowings[44]. - The group is actively seeking financial support from banks to avoid immediate repayment due to loan covenant breaches[102]. - A financial support letter from shareholder Mr. Lin was obtained, agreeing not to demand repayment of approximately HKD 16,859,000 and to provide additional financial support[102]. Corporate Governance - The company has complied with the corporate governance code principles for the year ending December 31, 2024, with a noted deviation regarding the separation of the roles of chairman and CEO[64]. - The board held four meetings during the reporting period, with all members attending all meetings[73]. - The audit committee reviewed and recommended the approval of the audited consolidated financial statements for the reporting period[84]. - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee[81]. - Independent non-executive directors constitute at least one-third of the board, ensuring strong independent judgment[74]. - The company has a commitment to continuous professional development for all directors, with training sessions held on regulatory responsibilities[79]. - The board is responsible for overseeing the company's business strategy and performance, ensuring alignment with shareholder interests[77]. - The company approved an annual budget covering strategy, finance, and business performance[70]. Environmental, Social, and Governance (ESG) Initiatives - The group is committed to sustainable development and social responsibility, focusing on creating long-term value for stakeholders, including employees and business partners[115]. - The environmental, social, and governance (ESG) report for the fiscal year 2024 will not include data on greenhouse gas emissions or waste generation due to the closure of the Shenzhen factory[118]. - The company emphasizes the importance of stakeholder engagement to inform business strategies and address stakeholder needs and expectations[118]. - The company aims to reduce greenhouse gas emissions and hazardous waste levels as part of its green production goals, contributing to a cleaner environment[122]. - The company has engaged external qualified testing firms to monitor emissions from its main production facilities, ensuring compliance with current regulations[125]. Employee and Workforce Management - As of December 31, 2024, the group had a total of 9 employees, a significant decrease from 397 employees in 2023, with employee costs amounting to approximately HKD 39.1 million, down from HKD 59.7 million in 2023[56]. - Employee costs for FY2024 decreased by 31.17% to HKD 37.10 million from HKD 53.90 million in FY2023, primarily due to the closure of the Shenzhen factory[156]. - Social and retirement benefits payments fell by 57.21% from HKD 5.77 million to HKD 2.47 million, attributed to calculations based on basic salaries[156]. - A total of 82 employees resigned in FY2023, with no data available for FY2024 due to the factory's closure[159]. - The company has implemented health prevention measures at the Shenzhen factory, including temperature checks and sanitation protocols for all personnel entering the facility[175]. - The company reported zero injuries and accidents in fiscal year 2024, compared to 20 in fiscal year 2023[177]. Production and Resource Management - The company aims to enhance resource efficiency and production capacity through automation and effective production management[141]. - The company has implemented measures to encourage the recycling of materials and reduce waste, including the use of double-sided copying and electronic documentation[132]. - The company has established centralized mechanical equipment for compressing and bundling waste paper to improve collection efficiency and recycling rates[132]. - Total paper material purchases for FY2024 amounted to HKD 8.0 million, a significant decrease of 77.22% from HKD 35.13 million in FY2023, primarily due to the closure of the Shenzhen factory[132]. - The average output per worker decreased by 10.46% to 16,487 kg in FY2023, attributed to reduced production orders and underutilization of capacity[144]. Strategic Direction - The company is focused on international markets, indicating a strategic direction towards global expansion[199]. - The company has established a joint venture to operate a factory in Huizhou, enhancing its production capabilities[199]. - The board emphasizes the importance of environmental, social, and governance (ESG) responsibilities in its new business strategy[194].

[Financial Highlights](index=5&type=section&id=%E6%91%98%E8%A6%81) [Key Financial Indicators](index=5&type=section&id=%E6%91%98%E8%A6%81) During the reporting period, the Group experienced significant declines in revenue and gross profit, with an expanded loss, primarily due to challenging business conditions and reduced customer orders; revenue decreased by 49.5% year-on-year, gross profit by 81.3%, and the loss for the period widened from HK$12.7 million to HK$29.5 million, with no interim dividend recommended by the Board | Indicator | Six Months Ended June 30, 2024 (HKD million) | Six Months Ended June 30, 2023 (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 43.5 | 86.2 | -49.5% | | Gross Profit | 3.7 | 19.8 | -81.3% | | Loss for the Period | 29.5 | 12.7 | +132.3% | | Interim Dividend | Not Recommended | Nil | - | [Financial Statements](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2024, the company's revenue was HK$43.5 million, a 49.5% decrease year-on-year; gross profit was HK$3.7 million, an 81.3% sharp decline; operating loss expanded from HK$7.6 million to HK$26.3 million due to increased administrative expenses; ultimately, loss for the period widened to HK$29.5 million, with basic loss per share at 35.65 HK cents | Item (HKD '000) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | 43,495 | 86,163 | | Gross Profit | 3,742 | 19,830 | | Operating Loss | (26,349) | (7,614) | | Loss Before Tax | (29,388) | (12,534) | | Loss for the Period | (29,464) | (12,667) | | Basic and Diluted Loss Per Share (HK cents) | (35.65) | (15.8) | [Condensed Consolidated Statement of Financial Position](index=7&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2024, the company's total assets decreased to HK$187 million from HK$234 million at the end of 2023; total liabilities were HK$178 million, and total equity significantly shrank from HK$34.26 million at the beginning of the year to HK$8.94 million; notably, the company reported a net current liability of approximately HK$133 million, indicating severe liquidity pressure | Item (HKD '000) | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 150,000 | 180,103 | | Current Assets | 37,301 | 53,674 | | **Total Assets** | **187,301** | **233,777** | | **Equity and Liabilities** | | | | Total Equity | 8,944 | 34,261 | | Non-current Liabilities | 11,946 | 22,093 | | Current Liabilities | 166,416 | 177,423 | | **Total Liabilities** | **178,362** | **199,516** | | **Total Equity and Liabilities** | **187,306** | **233,777** | [Condensed Consolidated Statement of Changes in Equity](index=9&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Due to a loss of HK$29.5 million recorded during the reporting period, the Group's total equity significantly decreased by 73.9% from HK$34.3 million at the beginning of the year to HK$8.9 million at period-end - As of June 30, 2024, total equity decreased from **HK$34,261 thousand** at the beginning of the year to **HK$8,944 thousand**, primarily due to a **loss of HK$29,464 thousand** recorded during the period[8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) During the reporting period, net cash outflow from operating activities was HK$1.9 million, largely consistent with the prior year; investment activities generated a small net cash inflow, while net cash outflow from financing activities significantly decreased; cash and cash equivalents (including bank overdrafts) at period-end were negative HK$10.6 million, indicating tight liquidity | Item (HKD '000) | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (1,874) | (1,869) | | Net Cash From Investing Activities | 385 | 8,426 | | Net Cash Used in Financing Activities | (251) | (6,278) | | Cash and Cash Equivalents at End of Period | (10,649) | (11,078) | [Notes to the Financial Statements](index=11&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [Basis of Preparation and Going Concern Risk](index=12&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%EF%BC%88%E7%BA%8C%EF%BC%89) While the financial statements are prepared on a going concern basis, management explicitly highlights significant uncertainties that may cast substantial doubt on the ability to continue as a going concern; key risks include a significant loss for the period, substantial net current liabilities of approximately HK$133 million, and large bank loans of approximately HK$123 million repayable within one year; to address this, the company has formulated several measures, including cost control, negotiating loan renewals with banks, planning property disposals, and seeking new financing when appropriate - The company faces significant going concern risks, primarily evidenced by a **loss of HK$29.464 million** as of June 30, 2024, **net current liabilities of approximately HK$133 million**, and bank loans and overdrafts of approximately **HK$123 million** repayable within one year[12](index=12&type=chunk) - To improve its financial position, the directors have taken or plan to take measures including strict cash flow monitoring, implementing cost controls, negotiating loan renewals with banks, disposing of certain properties, and seeking additional financing[12](index=12&type=chunk) [Revenue and Segment Reporting](index=13&type=section&id=4.%20%E6%94%B6%E7%9B%8A%E5%8F%8A%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) All company revenue is derived from a single operating segment, the production of books and paper products; geographically, Hong Kong and the United States are the primary revenue sources, both experiencing significant declines of 48.4% and 57.2% respectively during the reporting period - The Group operates in a single business segment: the production of books and paper products[16](index=16&type=chunk) | Region (HKD '000) | H1 2024 | H1 2023 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Hong Kong | 23,782 | 46,051 | -48.4% | | United States | 16,920 | 39,511 | -57.2% | | Mainland China | 2,482 | 9 | +27477.8% | | United Kingdom | 311 | 472 | -34.1% | | **Total** | **43,495** | **86,163** | **-49.5%** | [Loss Per Share and Dividends](index=16&type=section&id=7.%20%E6%AF%8F%E8%82%A1%E8%99%A7%E6%90%8D) During the reporting period, basic and diluted loss per share significantly widened to 35.65 HK cents from 15.8 HK cents in the prior year, reflecting a deterioration in the company's profitability; the Board decided not to declare an interim dividend for the six months ended June 30, 2024 - Basic loss per share expanded from **HK$12,667,000** in the prior year to **HK$29,464,000**, calculated based on a weighted average of **82,659,000 shares**[22](index=22&type=chunk) - The Board does not recommend the payment of a dividend for the six months ended June 30, 2024[24](index=24&type=chunk) [Management Discussion and Analysis](index=19&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) [Business Review and Future Prospects](index=19&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E5%8F%8A%E6%9C%AA%E4%BE%86%E5%89%8D%E6%99%AF) Challenging business conditions and reduced customer orders led to a significant decline in company revenue and expanded losses; the core strategic adjustment during the reporting period was the cessation of operations at the Group's Shenzhen factory in June 2024; going forward, remaining operations will outsource some production orders to Chinese subcontractors while utilizing the Hong Kong factory for specialized orders (e.g., religious, political prints) not feasible in mainland China, aiming to significantly reduce fixed costs and improve cash flow - The Group's Shenzhen factory ceased operations in **June 2024**[31](index=31&type=chunk) - The business model will shift from in-house factory production to outsourcing printing orders to external subcontractors in China, while continuing production at the Hong Kong factory, aiming to significantly reduce the company's fixed overhead costs and improve its cash flow[31](index=31&type=chunk) [Financial Review](index=19&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section details the reasons for changes in various financial indicators; revenue decreased by 49.5% primarily due to reduced sales orders; cost of sales decreased by 40.0% but at a slower rate than revenue, causing gross profit margin to sharply decline from 23.0% to 8.6%; other income fell by 79.4% due to reduced scrap sales, government subsidies, and asset disposal gains; administrative expenses, conversely, increased by 9.3% due to write-offs of fixed assets and inventories | Item | Change | Primary Reason | | :--- | :--- | :--- | | Revenue | -49.5% | Challenging business environment, reduced sales orders | | Cost of Sales | -40.0% | Reduced revenue and sales orders | | Gross Profit and Gross Margin | Gross Profit -81.3%, Gross Margin from 23.0% to 8.6% | Reduced sales orders | | Other Income | -79.4% | Reduced scrap sales, foreign exchange gains, government subsidies, and machinery disposal gains | | Administrative Expenses | +9.3% | Increased write-offs of fixed assets and inventories | [Liquidity, Financial Resources, and Capital Structure](index=21&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group faces severe liquidity challenges, with net current liabilities of approximately HK$133 million and cash and cash equivalents of only HK$0.64 million at period-end; the gearing ratio (total borrowings/total equity) sharply deteriorated from 4.0 at the end of 2023 to 13.9; total bank borrowings, overdrafts, and lease liabilities amounted to approximately HK$125 million; additionally, the company completed a share consolidation (10 shares into 1) in August 2023 | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Net Current Liabilities | HK$132.7 million | HK$123.7 million | | Cash and Cash Equivalents | HK$0.64 million | - | | Current Ratio | 0.2 | 0.3 | | Gearing Ratio | 13.9 | 4.0 | - On **August 29, 2023**, the company completed a **share consolidation** where every 10 shares were consolidated into 1 share[44](index=44&type=chunk) [Employees and Remuneration Policy](index=23&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) Due to the cessation of operations at the Shenzhen factory, the Group's organizational scale underwent drastic changes, with the number of employees significantly decreasing from 448 as of December 31, 2023, to 23 as of June 30, 2024, a reduction of 94.9% - Due to the cessation of operations at the Shenzhen factory, the Group's employee count significantly decreased from **448** at the end of 2023 to **23** at the end of the reporting period[47](index=47&type=chunk) [Significant Investments, Acquisitions, and Disposals](index=24&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E7%9A%84%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) During the reporting period, the Group disposed of certain machinery and assets in conjunction with the cessation of operations at the Shenzhen factory; no other significant investment, acquisition, or disposal plans exist beyond those already disclosed - In **May and June 2024**, the Group disposed of certain machinery and assets to facilitate the cessation of operations at the Shenzhen factory[48](index=48&type=chunk) [Other Information](index=25&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Corporate Governance](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company complied with the Corporate Governance Code during the reporting period, with one deviation: the roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Lam Sam Ming; the Board believes this arrangement, given Mr. Lam's extensive industry experience and founder status, facilitates effective management and business development, aligning with the company's best interests - The company deviated from the Corporate Governance Code's provision requiring separation of the Chairman and Chief Executive Officer functions, with both roles held by **Mr. Lam Sam Ming**[50](index=50&type=chunk) - The Board believes that Mr. Lam holding both positions is in the Group's best interest, and the Board, comprising three independent non-executive directors, is sufficient to ensure a balance of power[50](index=50&type=chunk) [Directors' and Major Shareholders' Interests](index=26&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) Mr. Lam Sam Ming, the company's Chairman and Executive Director, is the controlling shareholder, holding **48,000,000 shares** through his wholly-owned company First Tech Inc., representing **55.17%** of the company's issued share capital; First Tech has pledged a portion of its shares (equivalent to **8.28%** of total share capital) to third-party Easy Credit Limited as collateral for a loan | Shareholder Name | Capacity | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Lam Sam Ming | Interest in Controlled Corporation | 48,000,000 | 55.17% | | First Tech Inc. | Beneficial Owner | 48,000,000 | 55.17% | | Easy Credit Limited | Chargee | 7,200,000 | 8.28% | - Controlling shareholder First Tech has pledged a portion of its shares (**8.28%** of total share capital) to **Easy Credit Limited** as collateral for a loan[57](index=57&type=chunk)[60](index=60&type=chunk)