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)

Company Information [Company Basic Information and Governance Structure](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) This section details the company's administrative and governance framework, including board composition and key operational contacts - The board comprises **three executive directors** (Mr. Lam Sam Ming, Ms. Yiu Yuen, Ms. Chan Sau Po) and **three independent non-executive directors** (Ms. Cheung Yin, Mr. Wong Hei Chiu, Mr. Leung Ka Chun)[5](index=5&type=chunk) - The company's registered office and principal place of business are located at **3/F, Yip Cheong Centre, 10 Fung Yip Street, Chai Wan, Hong Kong**[5](index=5&type=chunk) - The company's stock code is **8385**, and its website is **www.prosperous-printing-group.com.hk**[5](index=5&type=chunk) Summary [Interim Results Overview](index=6&type=section&id=%E6%91%98%E8%A6%81) The company's revenue nearly halved, gross profit plummeted over 80%, and losses significantly widened, with no interim dividend proposed Major Financial Highlights for H1 2024 (Unaudited) | Metric | H1 2024 (HKD '000) | H1 2023 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 43,500 | 86,200 | -49.5% | | Gross Profit | 3,700 | 19,800 | -81.3% | | Loss for the Period | (29,500) | (12,700) | 132.3% (Loss widened) | - The board does not recommend declaring an interim dividend for the current period[6](index=6&type=chunk) Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Profit or Loss Performance Analysis](index=7&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) H1 2024 performance showed significant revenue and gross profit declines, resulting in a substantially expanded loss Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, Unaudited) | Metric | 2024 (HKD '000) | 2023 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 43,495 | 86,163 | -49.5% | | Cost of Sales | (39,753) | (66,333) | -40.0% | | Gross Profit | 3,742 | 19,830 | -81.1% | | Other Income | 1,354 | 6,839 | -80.2% | | Distribution Costs | (4,414) | (9,621) | -54.1% | | Administrative Expenses | (27,031) | (24,662) | 9.6% | | Operating Loss | (26,349) | (7,614) | 246.1% (Loss widened) | | Finance Costs | (3,039) | (4,920) | -38.2% | | Loss Before Tax | (29,388) | (12,534) | 134.5% (Loss widened) | | Income Tax | (76) | (133) | -42.9% | | Loss for the Period | (29,464) | (12,667) | 132.6% (Loss widened) | | Other Comprehensive Income for the Period | 4,147 | 19,938 | -79.2% | | Total Comprehensive (Expense) / Income for the Period | (25,317) | 7,271 | From income to expense | | Basic and Diluted Loss Per Share (HK cents) | (35.65) | (15.8) | 125.6% (Loss widened) | Condensed Consolidated Statement of Financial Position [Assets and Liabilities Analysis](index=8&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) Total assets decreased, net current liabilities increased, and total equity significantly declined, reflecting a worsening financial health Condensed Consolidated Statement of Financial Position (As at June 30, 2024 and December 31, 2023, Unaudited/Audited) | Metric | June 30, 2024 (HKD '000) | December 31, 2023 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | **ASSETS** | | | | | Non-current Assets | 150,000 | 180,103 | -16.8% | | Current Assets | 37,301 | 53,674 | -30.5% | | **Total Assets** | **187,301** | **233,777** | **-19.9%** | | **EQUITY** | | | | | Total Equity | **8,944** | **34,261** | **-73.9%** | | **LIABILITIES** | | | | | Non-current Liabilities | 11,946 | 22,093 | -45.9% | | Current Liabilities | 166,416 | 177,423 | -6.2% | | **Total Liabilities** | **178,362** | **199,516** | **-10.5%** | - As of June 30, 2024, the Group's **net current liabilities** were approximately **HKD 132.7 million**, indicating significant liquidity pressure[14](index=14&type=chunk) Condensed Consolidated Statement of Changes in Equity [Equity Movement Analysis](index=10&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) Total equity significantly decreased due to the loss for the period and other comprehensive expenses, expanding accumulated losses Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2024, Unaudited) | Equity Item | Balance as at January 1, 2024 (HKD '000) | Loss for the Period (HKD '000) | Other Comprehensive Expense for the Period (HKD '000) | Balance as at June 30, 2024 (HKD '000) | | :--- | :--- | :--- | :--- | :--- | | Share Capital | 106,319 | – | – | 106,319 | | Exchange Reserve | (17,795) | – | 4,147 | (13,648) | | Statutory Surplus Reserve | 5,125 | – | – | 5,125 | | Capital Reserve | 3,318 | – | – | 3,318 | | Retained Profits / Accumulated Losses | (62,706) | (29,464) | – | (92,170) | | **Total Equity** | **34,261** | **(29,464)** | **4,147** | **8,944** | - As of June 30, 2024, accumulated losses expanded from **HKD 62.7 million** on January 1, 2024, to **HKD 92.2 million**[10](index=10&type=chunk) Condensed Consolidated Statement of Cash Flows [Cash Flow Analysis](index=11&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) Operating activities showed net cash outflow, investment inflow reduced, and financing outflow decreased, leading to a net decrease in cash Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, Unaudited) | Cash Flow Activity | 2024 (HKD '000) | 2023 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (1,874) | (1,869) | (5) | | Net Cash From Investing Activities | 385 | 8,426 | (8,041) | | Net Cash Used in Financing Activities | (251) | (6,278) | 6,027 | | Net (Decrease) / Increase in Cash and Cash Equivalents | (1,740) | 279 | (2,019) | | Cash and Cash Equivalents at June 30 | (10,649) | (11,078) | 429 | - **Net cash used in operating activities** was **HKD 1.874 million**, remaining largely consistent with the prior period[11](index=11&type=chunk) - **Net cash from investing activities** significantly decreased from **HKD 8.426 million** in 2023 to **HKD 0.385 million** in 2024, primarily due to reduced proceeds from the disposal of property, plant, and equipment[11](index=11&type=chunk) Notes to the Condensed Consolidated Financial Statements [General Information](index=12&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) The company, incorporated in Hong Kong in 1992 and listed on GEM in 2017, primarily produces and trades books and paper products - The company was incorporated as a limited company in Hong Kong on **December 23, 1992**[12](index=12&type=chunk) - The company's shares were listed on **GEM of The Stock Exchange of Hong Kong Limited** on **December 13, 2017**[12](index=12&type=chunk) - The Group is principally engaged in the **production and trading of books and paper products**[12](index=12&type=chunk) [Basis of Preparation](index=12&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim financial report, prepared under HKAS 34, highlights significant going concern uncertainties, with board measures to ensure sufficient working capital - This interim financial report is prepared in accordance with **HKAS 34 "Interim Financial Reporting"** and applicable GEM Listing Rules disclosure provisions[13](index=13&type=chunk) - For H1 2024, the Group recorded a **loss of approximately HKD 29.464 million** and **net current liabilities of approximately HKD 132.748 million**, indicating significant going concern uncertainties[14](index=14&type=chunk) - The board has adopted measures to address going concern uncertainties, including **monitoring operating costs**, **negotiating bank facility renewals**, **disposing of properties**, and **reviewing capital structure** to raise funds[14](index=14&type=chunk) [Changes in Accounting Policies](index=13&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E7%9A%84%E8%AE%8A%E5%8B%95) Revisions to Hong Kong Financial Reporting Standards effective this period had no significant impact on the Group's financial statement preparation or presentation - Certain amendments to **Hong Kong Financial Reporting Standards** effective this period had **no significant impact** on the interim financial report's preparation or presentation[15](index=15&type=chunk) [Revenue and Segment Reporting](index=14&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) The Group's H1 2024 revenue of **HKD 43.5 million** primarily from books and paper products, with Hong Kong and US as key contributors Revenue Classification (For the six months ended June 30, Unaudited) | Revenue Source | 2024 (HKD '000) | 2023 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Sale of books and paper products | 41,013 | 86,154 | -45,141 | | Provision of subcontracting services | 2,482 | 9 | 2,473 | | **Total Revenue** | **43,495** | **86,163** | **-42,668** | Revenue from Contracts with Customers by Geographical Location (For the six months ended June 30, Unaudited) | Region | 2024 (HKD '000) | 2023 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Hong Kong | 23,782 | 46,051 | -22,269 | | Mainland China | 2,482 | 9 | 2,473 | | United States | 16,920 | 39,511 | -22,591 | | United Kingdom | 311 | 472 | -161 | | Other Countries | – | 120 | -120 | | **Total Revenue** | **43,495** | **86,163** | **-42,668** | - The Group operates as a **single operating segment**, focusing on the production of books and paper products[18](index=18&type=chunk) [Other Income](index=16&type=section&id=5.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) H1 2024 other income totaled **HKD 1.354 million**, a significant decrease due to reduced gains from various sources Other Income Details (For the six months ended June 30, Unaudited) | Income Source | 2024 (HKD '000) | 2023 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Bank interest income | 39 | 106 | -67 | | Profit from disposal of scrap materials | 431 | 726 | -295 | | Government grants - PRC government subsidies | 176 | 898 | -722 | | Gain on disposal of property, plant and equipment | 346 | 2,785 | -2,439 | | Net exchange (loss) / gain | (32) | 2,124 | -2,156 | | Rental income | 274 | – | 274 | | Miscellaneous income | 120 | 200 | -80 | | **Total** | **1,354** | **6,839** | **-5,485** | [Income Tax](index=16&type=section&id=6.%20%E6%89%80%E5%BE%97%E7%A8%85) H1 2024 income tax was **HKD 76 thousand**, mainly Hong Kong profits tax, with Chinese subsidiaries taxed at 25% and BVI subsidiaries tax-exempt - **Income tax** for H1 2024 was **HKD 76 thousand**, primarily Hong Kong profits tax, compared to **HKD 133 thousand** in H1 2023, mainly PRC corporate income tax[21](index=21&type=chunk) - Hong Kong businesses are subject to a **two-tiered profits tax system**, with the first **HKD 2 million** taxed at **8.25%** and the remainder at **16.5%**[21](index=21&type=chunk) - Chinese subsidiaries are subject to a **25% corporate income tax rate**, while British Virgin Islands subsidiaries are **tax-exempt**[21](index=21&type=chunk)[22](index=22&type=chunk) [Loss Per Share](index=17&type=section&id=7.%20%E6%AF%8F%E8%82%A1%E虧%E6%90%8D) H1 2024 basic and diluted loss per share significantly widened to **HKD 35.65 cents** due to increased loss for the period - H1 2024 **basic loss per share** was **HKD 35.65 cents**, based on a **HKD 29.464 million loss** and **82.659 million weighted average shares**[24](index=24&type=chunk) - Diluted loss per share is **identical to basic loss per share** due to the absence of dilutive potential ordinary shares[25](index=25&type=chunk) [Dividends](index=17&type=section&id=8.%20%E8%82%A1%E6%81%AF) The board does not recommend declaring an interim dividend for the six months ended June 30, 2024 - The board does not recommend declaring a dividend for the six months ended June 30, 2024[26](index=26&type=chunk) [Property, Plant and Equipment](index=17&type=section&id=9.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) H1 2024 saw **HKD 346 thousand** gain from machinery disposal, significantly less than **HKD 2.785 million** in the prior year - For H1 2024, a **gain of HKD 346,000** was recognized from the disposal of machinery with a carrying amount of zero[27](index=27&type=chunk) - For H1 2023, a **gain of HKD 2,785,000** was recognized from the disposal of machinery with a carrying amount of **HKD 1,725,000**[27](index=27&type=chunk) [Trade and Other Receivables](index=17&type=section&id=10.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2024, total trade and other receivables increased to **HKD 36.657 million**, with trade receivables at **HKD 22.483 million** Trade and Other Receivables (As at June 30, 2024 and December 31, 2023, Unaudited/Audited) | Item | June 30, 2024 (HKD '000) | December 31, 2023 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Trade receivables, net of loss allowance | 22,483 | 28,952 | -6,469 | | Other receivables | 13,670 | 1,866 | 11,804 | | Prepayments | – | 34 | -34 | | Utility and other deposits | 504 | 942 | -438 | | Other refundable taxes | – | 2,006 | -2,006 | | **Total** | **36,657** | **33,800** | **2,857** | Ageing Analysis of Trade Receivables (As at June 30, 2024 and December 31, 2023, Unaudited/Audited) | Ageing | June 30, 2024 (HKD '000) | December 31, 2023 (HKD '000) | | :--- | :--- | :--- | | Within 1 month | 4,277 | 6,679 | | 1 to 3 months | 3,423 | 5,936 | | 3 to 6 months | 3,093 | 3,847 | | 6 to 12 months | 1,011 | 1,076 | | Over 1 year | 10,679 | 11,414 | | **Total** | **22,483** | **28,952** | [Trade and Other Payables](index=18&type=section&id=11.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2024, total trade and other payables slightly increased to **HKD 45.231 million**, with trade payables at **HKD 19.138 million** Trade and Other Payables (As at June 30, 2024 and December 31, 2023, Unaudited/Audited) | Item | June 30, 2024 (HKD '000) | December 31, 2023 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Trade payables | 19,138 | 20,553 | -1,415 | | Other payables and accrued expenses | 26,093 | 24,172 | 1,921 | | **Total** | **45,231** | **44,725** | **506** | Ageing Analysis of Trade Payables (As at June 30, 2024 and December 31, 2023, Unaudited/Audited) | Ageing | June 30, 2024 (HKD '000) | December 31, 2023 (HKD '000) | | :--- | :--- | :--- | | Within 1 month | 2,882 | 2,966 | | 1 to 3 months | 4,311 | 4,332 | | 3 to 6 months | 6,277 | 5,931 | | 6 to 12 months | 4,271 | 5,828 | | Over 1 year | 1,397 | 1,496 | | **Total** | **19,138** | **20,553** | [Fair Value Measurement of Financial Instruments](index=19&type=section&id=12.%20%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E4%B9%8B%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F) This note explains the **three-level fair value hierarchy** for financial instruments measured on a recurring basis at the reporting period end - Fair value measurements are categorized into a **three-level hierarchy** as defined by **HKFRS 13 "Fair Value Measurement"**, including Level 1 (active market quotes), Level 2 (observable inputs), and Level 3 (significant unobservable inputs)[32](index=32&type=chunk) Management Discussion and Analysis [Business Review and Future Prospects](index=20&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) The company faced significant revenue decline, closed its Shenzhen factory, and shifted to outsourcing and leveraging its Hong Kong facility - The Group's revenue decreased by approximately **49.5%** from **HKD 86.2 million** to **HKD 43.5 million**, primarily due to challenging business conditions and reduced customer orders[33](index=33&type=chunk) - The **Shenzhen factory ceased operations in June 2024**, with the business model shifting to **outsourcing printing orders** to external subcontractors in China while continuing production at the Hong Kong factory[33](index=33&type=chunk) - Future strategies include leveraging the **Hong Kong factory** for specific orders, securing overseas clients using **international standards and project management**, and **outsourcing to mainland China subcontractors** to reduce fixed costs[33](index=33&type=chunk) [Financial Review](index=20&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This review analyzes changes in revenue, costs, and expenses, highlighting significant declines and a substantially expanded loss for the period [Revenue](index=20&type=section&id=%E6%94%B6%E7%9B%8A) Revenue, primarily from overseas printed products, decreased by **49.5%** to **HKD 43.5 million** due to challenging business conditions - Revenue decreased by approximately **49.5%** from **HKD 86.2 million** to **HKD 43.5 million**[34](index=34&type=chunk) - The revenue decrease was primarily due to **challenging business conditions** and **reduced sales orders**[34](index=34&type=chunk) [Cost of Sales](index=21&type=section&id=%E9%8A%B7%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales, including raw materials and staff costs, decreased by **40.0%** to **HKD 39.8 million** due to reduced revenue and sales orders - Cost of sales decreased by approximately **40.0%** from **HKD 66.3 million** to **HKD 39.8 million**[35](index=35&type=chunk) - The decrease in cost of sales was primarily due to **reduced revenue and sales orders**[35](index=35&type=chunk) [Gross Profit and Gross Profit Margin](index=21&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit significantly decreased by **81.3%** to **HKD 3.7 million**, with the gross profit margin falling from **23.0% to 8.6%** - Gross profit for the period was approximately **HKD 3.7 million**, an **81.3% decrease** from **HKD 19.8 million** in the prior period[36](index=36&type=chunk) - Gross profit margin decreased from **23.0%** in the prior period to **8.6%** in the current period[36](index=36&type=chunk) [Other Income](index=21&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5) Other income decreased by **79.4%** to **HKD 1.4 million**, primarily due to reduced gains from various sources - Other income decreased by approximately **79.4%** from **HKD 6.8 million** to **HKD 1.4 million**[37](index=37&type=chunk) - The decrease was due to reduced **scrap material sales**, **foreign exchange gains**, **government subsidies**, and **machinery disposal gains**[37](index=37&type=chunk) [Distribution Costs](index=21&type=section&id=%E5%88%86%E9%8A%B7%E6%88%90%E6%9C%AC) Distribution expenses decreased to **HKD 4.4 million** from **HKD 9.6 million**, primarily due to reduced sales orders - Distribution expenses for the period were approximately **HKD 4.4 million**, a decrease from **HKD 9.6 million** in the prior period, primarily due to reduced sales orders[38](index=38&type=chunk) [Administrative Expenses](index=21&type=section&id=%E8%A1%8C%E6%94%BF%E9%96%8B%E6%94%AF) Administrative expenses increased by **9.3%** to **HKD 27.0 million**, primarily due to increased write-offs of fixed assets and inventory - Administrative expenses increased by approximately **9.3%** from **HKD 24.7 million** to **HKD 27.0 million**[39](index=39&type=chunk) - The increase was primarily due to **increased write-offs of fixed assets and inventory**[39](index=39&type=chunk) [Finance Costs](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E6%88%90%E6%9C%AC) Finance costs for the period decreased to approximately **HKD 3.0 million** from **HKD 4.9 million** - The Group recorded **finance costs of approximately HKD 3.0 million**, compared to **HKD 4.9 million** in the prior period[40](index=40&type=chunk) [Income Tax](index=22&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85) Income tax for the period was approximately **HKD 0.1 million**, consistent with the prior period, influenced by Hong Kong and China tax rates - Income tax for the period was approximately **HKD 0.1 million**, consistent with the prior period[41](index=41&type=chunk) - Hong Kong businesses are subject to a **two-tiered profits tax system**, while Chinese businesses are subject to a **25.0% corporate income tax rate**[41](index=41&type=chunk) [Loss for the Period](index=22&type=section&id=%E6%9C%9F%E5%85%A7%E虧%E6%90%8D) A loss of approximately **HKD 29.5 million** was recorded for the period, a significant increase from **HKD 12.7 million** in the prior period - A loss of approximately **HKD 29.5 million** was recorded for the period, compared to a loss of **HKD 12.7 million** in the prior period[42](index=42&type=chunk) [Liquidity and Financial Resources](index=22&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) As of June 30, 2024, net current liabilities were **HKD 132.7 million**, with a **current ratio of 0.2** and a **gearing ratio of 13.9**, indicating deteriorated liquidity - As of the period end, the Group's **net current liabilities** were approximately **HKD 132.70 million** (December 31, 2023: HKD 123.7 million)[43](index=43&type=chunk) - The **current ratio** was **0.2** (December 31, 2023: 0.3), and the **gearing ratio** was **13.9** (December 31, 2023: 4.0)[43](index=43&type=chunk) - Total bank borrowings, overdrafts, and lease liabilities were approximately **HKD 124.6 million**, with **HKD 122.7 million** repayable within one year[43](index=43&type=chunk) [Foreign Exchange Management](index=23&type=section&id=%E5%A4%96%E5%8C%AF%E7%AE%A1%E7%90%86) The company faces foreign exchange risks from USD, RMB, GBP, and JPY transactions, with no hedging undertaken, and the board continuously monitors these risks - The Group's foreign exchange risk primarily arises from **receivables, payables, and cash balances denominated in USD, RMB, GBP, and JPY**[44](index=44&type=chunk) - The Group did not enter into or trade any financial instruments for **hedging purposes** during the period[44](index=44&type=chunk) [Pledge of the Group's Assets](index=23&type=section&id=%E6%9C%AC%E9%9B%86%E5%9C%98%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2024, **HKD 159.4 million** of **HKD 175.9 million** total bank facilities were utilized, primarily secured by various assets - As of the period end, total bank facilities were **HKD 175.9 million**, with **HKD 159.4 million utilized**[45](index=45&type=chunk) - Collateral includes **bank deposits, financial assets at FVTPL, trade receivables, property, plant and equipment, Hong Kong property rental assignments, key management insurance proceeds, and corporate guarantees**[45](index=45&type=chunk) - As of June 30, 2024, **property and machinery with a carrying amount of HKD 150.0 million** were pledged as collateral for bank facilities[45](index=45&type=chunk) [Capital Structure](index=23&type=section&id=%E8%B3%87%E6%9C%AC%E6%9E%B6%E6%A7%8B) The company's shares were listed on GEM in 2017, followed by a share consolidation in August 2023, with no further capital structure changes this period - The company's shares were listed on **GEM** on **December 13, 2017**[46](index=46&type=chunk) - On **August 29, 2023**, the company completed a **10-to-1 share consolidation**, merging **869,980,000 existing shares** into **86,998,000 consolidated shares**[46](index=46&type=chunk) - Subsequent to the share consolidation, there were **no changes to the Group's capital structure** during the period[46](index=46&type=chunk) [Capital Expenditure](index=24&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure for property, plant, and equipment was funded by internal resources, finance leases, and bank borrowings, totaling **HKD 150.0 million** - Capital expenditure primarily comprises payments for the **acquisition of property, plant, and equipment**, such as production machinery[47](index=47&type=chunk) - Capital expenditure during the period was funded through **internal resources, finance leases, and bank borrowings**[47](index=47&type=chunk) - As of June 30, 2024, capital expenditure for property, plant, and equipment was **HKD 150.0 million** (December 31, 2023: HKD 184.155 million)[47](index=47&type=chunk) [Contingent Liabilities](index=24&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) There were no significant contingent liabilities during the current period - There were **no significant contingent liabilities** during the period[48](index=48&type=chunk) [Commitments](index=24&type=section&id=%E6%89%BF%E6%93%94) As of the period end, capital commitments contracted but not provided for in the financial statements amounted to zero - As of the period end, capital commitments contracted but not provided for in the financial statements amounted to **zero**[48](index=48&type=chunk) [Employees and Remuneration Policies](index=24&type=section&id=%E5%83%B1%E5%93%A1%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) Employee count significantly decreased to **23** due to the Shenzhen factory's closure; remuneration is reviewed based on market levels, responsibilities, and company performance - As of June 30, 2024, the Group had **23 employees**, a significant decrease from **448** as of December 31, 2023, primarily due to the **cessation of operations at the Shenzhen factory**[49](index=49&type=chunk) - Director and senior management remuneration is based on **directors' fees, salaries, benefits in kind, and/or discretionary bonuses**, determined by **comparable companies, time commitment, and Group performance**[49](index=49&type=chunk) [Significant Investments, Acquisitions and Disposals and Future Plans for Significant Investments or Capital Assets](index=25&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) The company disposed of machinery assets due to the Shenzhen factory's closure, with no other significant investment or acquisition plans disclosed - The Group disposed of machinery on **May 6, 2024**, for a total consideration of **RMB 1,360,000**[50](index=50&type=chunk) - The company signed an agreement on **June 9, 2024**, to dispose of assets due to the **cessation of operations at the Shenzhen factory**[50](index=50&type=chunk) - Other than disclosed, the Group has **no other significant investments, acquisitions, or disposals**, nor any future plans for significant investments or capital assets[50](index=50&type=chunk) [Material Subsequent Events](index=25&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) To the best of the board's knowledge, there were no material subsequent events requiring disclosure after the current period - To the best of the board's knowledge, there were **no matters requiring disclosure** after the period[50](index=50&type=chunk) [Dividends](index=25&type=section&id=%E8%82%A1%E6%81%AF) The board does not recommend declaring an interim dividend for the current period - The board does not recommend declaring an **interim dividend** for the current period[50](index=50&type=chunk) Other Information [Corporate Governance Practices](index=26&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 Corporate Governance Code principles and provisions, except for the unsegregated roles of Chairman and Chief Executive Officer - The company complied with Corporate Governance Code principles and provisions, except for the **unsegregated roles of Chairman and Chief Executive Officer**[51](index=51&type=chunk) [Chairman and Chief Executive Officer](index=26&type=section&id=%E4%B8%BB%E5%B8%AD%E5%8F%8A%E8%A1%8C%E6%94%BF%E7%B8%BD%E8%A3%81) Mr. Lam Sam Ming serves as both Chairman and CEO, a deviation from the Corporate Governance Code, but the board believes it is in the company's best interest - Mr. Lam Sam Ming concurrently serves as **Chairman and Chief Executive Officer**, deviating from **Corporate Governance Code provision C.2.1**[52](index=52&type=chunk) - The board believes Mr. Lam's dual role is in the Group's best interest, with an **experienced board (including three independent non-executive directors)** ensuring a balance of power and authority[52](index=52&type=chunk) [Code of Conduct for Directors' Securities Transactions](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E9%80%B2%E8%A1%8C%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%93%8D%E5%AE%88%E5%AE%88%E5%89%87) The company adopted the GEM Listing Rules' code of conduct, with all directors confirming full compliance during the period - The company adopted **GEM Listing Rules 5.48 to 5.67** as the code of conduct for directors' securities transactions[53](index=53&type=chunk) - All directors confirmed **full compliance** with the required dealing standards of the code of conduct during the period[53](index=53&type=chunk) [Share Option Scheme](index=27&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) No share options were granted, exercised, cancelled, lapsed, or forfeited under the company's share option scheme, and no outstanding options existed - No share options were **granted, exercised, cancelled, lapsed, or forfeited** under the scheme during the period[55](index=55&type=chunk) - There were **no outstanding share options** as of the period end[55](index=55&type=chunk) [Purchase, Sale or Redemption of Shares](index=27&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E8%82%A1%E4%BB%BD) Neither the company nor its subsidiaries purchased, sold, or redeemed any shares during the period - Neither the company nor its subsidiaries **purchased, sold, or redeemed any shares** during the period[56](index=56&type=chunk) [Changes in Directors' Biographical Details](index=27&type=section&id=%E8%91%A3%E4%BA%8B%E5%B1%A5%E6%AD%B7%E8%AE%8A%E6%9B%B4) Independent non-executive director Mr. Leung Ka Chun was appointed as an independent non-executive director of China Evergrande New Energy Vehicle Group Limited - Independent non-executive director **Mr. Leung Ka Chun** was appointed as an independent non-executive director of **China Evergrande New Energy Vehicle Group Limited (708.hk)**, effective **August 5, 2024**[57](index=57&type=chunk) [Disclosure of Interests](index=27&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) This section discloses directors' and substantial shareholders' interests, including Chairman Mr. Lam Sam Ming and Ms. Yiu Yuen's 55.17% stake via First Tech, part of which is pledged [Directors' Interests and/or Short Positions in Shares, Underlying Shares or Debentures of the Company and its Associated Corporations](index=27&type=section&id=(a)%20%E8%91%A3%E4%BA%8B%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%85%B6%E7%9B%B8%E8%81%AF%E6%B3%95%E5%9C%98%E4%B9%8B%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E2%95%B1%E6%88%96%E6%B7%A1%E5%80%89) Chairman and Executive Director **Mr. Lam Sam Ming** and his spouse **Ms. Yiu Yuen** hold **55.17%** of the company's shares via First Tech, with a portion pledged Directors' Interests in the Company (As at the end of the current period) | Director Name | Capacity | Number of Shares | Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Lam Sam Ming | Interest in controlled corporation | 48,000,000 (L) | 55.17% | | Ms. Yiu Yuen | Spouse's interest | 48,000,000 (L) | 55.17% | - **Mr. Lam Sam Ming** holds **48,000,000 shares** through **First Tech Inc.**, and **Ms. Yiu Yuen** is deemed to have the same interest as his spouse[59](index=59&type=chunk) - **First Tech** has pledged shares (representing **8.28% of the company's issued share capital**) to **Easy Credit Limited** as loan collateral[59](index=59&type=chunk) [Substantial Shareholders' Interests and/or Short Positions in Shares Discloseable Under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance](index=29&type=section&id=(b)%20%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E8%82%A1%E4%BB%BD%E4%B8%AD%E6%93%81%E6%9C%89%E6%A0%B9%E6%93%9A%E8%AD%89%E5%88%B8%E5%8F%8A%E6%9C%9F%E8%B2%A8%E6%A2%9D%E4%BE%8B%E7%AC%ACXV%E9%83%A8%E7%AC%AC2%E5%8F%8A%E7%AC%AC3%E5%88%86%E9%83%A8%E9%A0%88%E4%BA%88%E6%8A%AB%E9%9C%B2%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E2%95%B1%E6%88%96%E6%B7%A1%E5%80%89) Substantial shareholder **First Tech** holds **55.17%** of the company's shares, and **Easy Credit Limited** holds **8.28%** due to pledged interests Substantial Shareholders' Interests in the Company (As at the end of the current period) | Substantial Shareholder Name | Capacity | Number of Shares | Percentage of Interest | | :--- | :--- | :--- | :--- | | First Tech | Beneficial owner | 48,000,000 (L) | 55.17% | | Easy Credit Limited | Person with security interest over shares | 7,200,000 (L) | 8.28% | - **First Tech** is wholly-owned by **Mr. Lam Sam Ming**, an executive director[62](index=62&type=chunk) - **Easy Credit Limited** is wholly-owned by **Easy Credit International Holdings Limited**, which is **50% owned by Mr. Chiu Chi Sang and Mr. Cheung Ting Kin** respectively[63](index=63&type=chunk) [Directors' Interests in Competing Businesses](index=30&type=section&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E7%AB%B6%E7%88%AD%E6%A5%AD%E5%8B%99%E4%B8%AD%E7%9A%84%E5%88%A9%E7%9B%8A) No directors or their close associates hold interests in any business directly or indirectly competing with the Group, except for Group members - No directors or their close associates hold interests in any business that **directly or indirectly competes** with the Group's business[64](index=64&type=chunk) [Audit Committee](index=30&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee reviewed the Group's unaudited consolidated financial results for the period, confirming compliance with applicable accounting standards and GEM Listing Rules - The Audit Committee has reviewed the Group's **unaudited consolidated financial results** for the period[65](index=65&type=chunk) - The Audit Committee believes the financial results **comply with applicable accounting standards and GEM Listing Rules** and are adequately disclosed[65](index=65&type=chunk)

Financial Performance - The group's revenue for the year ended December 31, 2023, was approximately HKD 146.2 million, a decrease of about 24.9% compared to HKD 194.8 million for the year ended December 31, 2022, primarily due to reduced sales orders influenced by global economic uncertainty [11]. - The gross profit for the year ended December 31, 2023, was approximately HKD 34.9 million, down from HKD 57.1 million for the year ended December 31, 2022, attributed to aggressive pricing policies and decreased sales orders due to global economic uncertainty [11]. - The net loss for the year ended December 31, 2023, was approximately HKD 23.0 million, an improvement from a net loss of approximately HKD 59.7 million for the year ended December 31, 2022, mainly due to reduced impairment losses on receivables and cost savings in distribution and administrative expenses [11]. - The company reported a significant increase in revenue, achieving a total of 48 million shares held through First Tech, which is fully owned by Mr. Lin [21]. - Other income increased by approximately 12.6% to about HKD 6.7 million for the year ended December 31, 2023, primarily due to a one-time government subsidy received in China [43]. - Administrative expenses decreased from approximately HKD 55.7 million for the year ended December 31, 2022, to HKD 50.9 million for the year ended December 31, 2023 [44]. - The company recorded a loss of approximately HKD 23.0 million for the year ended December 31, 2023, compared to a loss of HKD 59.7 million for the year ended December 31, 2022 [47]. - The total amount of bank loans, other loans, overdrafts, and lease liabilities as of December 31, 2023, was approximately HKD 135.8 million, down from HKD 172.4 million in the previous year [49]. - The group's capital expenditure for the year ended December 31, 2023, was HKD 132.83 million, a decrease from HKD 202.92 million in 2022 [55]. - The group maintained a current ratio of 0.3 as of December 31, 2023, compared to 0.4 as of December 31, 2022 [49]. Corporate Governance - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with the previous year [11]. - The company has complied with the corporate governance code during the reporting period, except for a deviation regarding the separation of the roles of Chairman and CEO [75]. - The board held four meetings during the reporting period, with all directors attending all meetings [86]. - The company aims to maintain high standards of corporate governance to ensure transparency and accountability, which is crucial for long-term shareholder value creation [74]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance during the reporting period [79]. - The board believes that the current structure, with the Chairman also serving as the CEO, is in the best interest of the company for effective management and business development [76]. - The company has appointed three independent non-executive directors, ensuring they constitute at least one-third of the board, with at least one possessing appropriate professional qualifications [87]. - The independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules, and their initial term is set for two years starting from December 13, 2023 [87]. - 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 [99]. - The remuneration committee held one meeting during the reporting period to provide recommendations on the remuneration of all directors and senior management [102]. - The nomination committee was established to provide recommendations for filling vacancies on the board and senior management, having held one meeting during the reporting period [106]. - The risk management committee assists the board in overseeing compliance with laws and regulations related to business operations, having held one meeting during the reporting period [109]. - The board is responsible for assessing and determining the nature and extent of risks the company is willing to take to achieve its strategic objectives [110]. - The company has established a robust internal control and risk management system aimed at managing risks rather than eliminating them [110]. - The board has reviewed and discussed the effectiveness of the corporate governance policies in place [91]. Future Strategies - The company remains cautiously optimistic about the future, believing that the printing market will continue to be stable and healthy, while planning to enhance its competitive advantages to increase market share and profitability [15]. - Future business strategies include improving equipment and increasing automation, expanding the customer base, enhancing sales and marketing coverage, and continuing to attract and retain high-end talent in the industry [15]. - The company aims to expand its customer base and strengthen sales and marketing coverage as part of its future strategies [38]. - The management is committed to developing new products and technologies to stay competitive in the printing industry [22]. Risk Factors - The company faces several risks in future development, including weak market demand, economic uncertainties from the Russia-Ukraine conflict, rising paper costs, and challenges from technological advancements in the publishing and information dissemination sectors [15]. - The company faced various risks including economic uncertainties due to tightening monetary policy and geopolitical tensions, but remains cautiously optimistic about the printing market's stable development [38]. Environmental Sustainability - The company emphasizes sustainable development and social responsibility, aiming to create long-term value for stakeholders [134]. - The Shenzhen factory has been certified to comply with environmental management standards ISO 14001:2015 since February 2019 [142]. - The company has received a 5-year pollution discharge permit from the Shenzhen Ecological Environment Bureau, allowing internal monitoring of wastewater and gas emissions during production [143]. - The company is committed to reducing greenhouse gas emissions and hazardous waste levels to create a cleaner environment and minimize adverse weather conditions [143]. - The company ensures compliance with multiple environmental regulations, including the Environmental Protection Law of the People's Republic of China and various pollution control ordinances in Hong Kong [140]. - The company has implemented a quality management system certified to ISO 9001:2015 standards since February 2019 [142]. - The company continues to promote digital data usage to save on printing and enhance recycling of waste paper [165]. - The company has installed more efficient digital printing machines to increase production capacity and reduce energy and ink consumption compared to traditional printing methods [167]. - The total amount of FSC paper used in production decreased from 673.23 tons in FY2022 to 321.34 tons in FY2023, representing a decline of 52.4% [174]. - The percentage of FSC paper in total production dropped from 14.31% in FY2022 to 10.15% in FY2023 [174]. - Total greenhouse gas emissions for FY2023 were 6,048.30 tons CO2 equivalent, a decrease of 2.37% from 6,195.03 tons in FY2022 [148]. - The total waste collected in FY2023 was 1,725,050 kg, a reduction of 23.22% from 2,246,656 kg in FY2022 [155]. - The amount of hazardous waste generated decreased by 30.30% to 4.05 tons in FY2023 from 5.81 tons in FY2022 [159]. - The chemical oxygen demand in wastewater decreased to 17.75 mg/L in FY2023 from 62 mg/L in FY2022 [152]. - The company achieved a recycling rate of 99.77% for waste materials in FY2023, slightly up from 99.74% in FY2022 [155]. - The company installed environmental air filters in its Shenzhen factory to reduce VOC emissions, which include benzene, toluene, and xylene [148]. - Environmental monitoring costs increased by 5.31% from HKD 657,699 in FY2022 to HKD 692,628 in FY2023, primarily due to higher testing fees for emissions at the Shenzhen factory [161]. Employee Management - The company aims to provide a safe and healthy working environment for employees, recognizing them as valuable assets [134]. - Employee headcount at the end of FY2023 was 393, down from 454 in FY2022, a reduction of 13.44% [180]. - Total employee costs decreased from HKD 59.85 million in FY2022 to HKD 55.86 million in FY2023, a decline of 6.66% [186]. - The number of employees resigning in FY2023 increased to 82 from 79 in FY2022, a rise of 3.80% [188]. - The average number of employees in FY2023 was 423, down from 467 in FY2022, a decrease of 9.42% [180]. - The company aims to enhance production efficiency by increasing output per worker by 5% [176]. - The company plans to maintain competitive compensation to attract and retain employees [182]. - Employee training participation increased from 3,500 in FY2022 to 3,566 in FY2023, with total training hours rising from 3,558 to 3,566 hours [196]. - Average training hours per employee increased to 8.4 hours in FY2023 from 7.6 hours in FY2022 [196]. - Employee turnover rate for those with over 2 years of service maintained below 10% [193]. - The company conducted fraud alert training in FY2023 due to the rise in various forms of fraud [196]. - No employee disputes were recorded during FY2023, and the audit committee chair received no assistance requests [191]. - The company emphasizes open communication channels for employees to express opinions and suggestions [193]. - The company provides training on industry safety, fire drills, and emergency procedures to enhance employee preparedness [195]. - The company respects labor rights and human rights, ensuring voluntary employment conditions [199]. - The company does not employ forced or child labor, adhering to local and international laws [200]. - The company encourages employees to explore their potential and provides opportunities for skill development [197].

Financial Performance - The group's revenue for the year ended December 31, 2023, was approximately HKD 146.2 million, a decrease of about 24.9% compared to HKD 194.8 million for the year ended December 31, 2022, primarily due to reduced sales orders influenced by global economic uncertainty [15]. - The gross profit for the year ended December 31, 2023, was approximately HKD 34.9 million, down from HKD 57.1 million for the year ended December 31, 2022, attributed to aggressive pricing policies and decreased sales orders due to overall economic uncertainty [15]. - The net loss for the year ended December 31, 2023, was approximately HKD 23.0 million, an improvement from a net loss of approximately HKD 59.7 million for the year ended December 31, 2022, mainly due to reduced impairment losses on receivables and cost savings in distribution and administrative expenses [15]. - The company recorded a loss of approximately HKD 23.0 million for the year ended December 31, 2023, compared to a loss of approximately HKD 59.7 million for the year ended December 31, 2022, primarily due to a decrease in impairment losses on receivables and cost savings in distribution and administrative expenses offset by increased financing costs [51]. - Other income increased by approximately 12.6% to about HKD 6.7 million for the year ended December 31, 2023, primarily due to a one-time government subsidy received in China [47]. - Administrative expenses decreased from approximately HKD 55.7 million for the year ended December 31, 2022, to HKD 50.9 million for the year ended December 31, 2023 [48]. - Financial costs increased from approximately HKD 7.1 million for the year ended December 31, 2022, to HKD 9.8 million for the year ended December 31, 2023, mainly due to increased loan interest [49]. Dividend and Shareholder Information - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with the previous year [15]. - The company will publish its annual report on its website and the GEM website for shareholder access [5]. - The group encourages effective communication with shareholders and stakeholders to enhance business strategies and meet expectations [140]. - The group provides shareholders with options for receiving company communications, ensuring transparency and accessibility of information [135]. Business Operations and Strategy - The company operates as a supplier of printed products to international publishers primarily located in the United States, the United Kingdom, Australia, and Europe, with significant reliance on paper and ink as raw materials [17]. - The company has two production bases located in Shenzhen and Hong Kong, both of which are self-operated printing facilities [17]. - The group remains cautiously optimistic about the future, believing that the printing market will continue to be stable and healthy despite facing risks such as weak market demand and rising paper costs [19]. - The company plans to enhance its competitive advantage to increase market share and profitability through strategies like improving equipment and increasing automation [19]. - The group aims to expand its customer base and strengthen sales and marketing coverage as part of its business strategy [19]. - The company faces several risks in the future, including economic uncertainties due to tightening monetary policy, the Russia-Ukraine war, and challenges from technological advancements in the publishing industry [42]. Environmental and Sustainability Efforts - The group is committed to sustainable development and social responsibility, aiming to create long-term value for stakeholders [138]. - The group has obtained certifications for environmental management systems and quality management standards, including ISO 14001:2015 and ISO 9001:2015 [146]. - The group emphasizes compliance with environmental regulations, including the Environmental Protection Law of the People's Republic of China and various Hong Kong laws [144]. - The group has not reported any significant non-compliance issues regarding air and greenhouse gas emissions during the fiscal year 2023 [145]. - Total greenhouse gas emissions for FY2023 amounted to 6,048.30 tons of CO2 equivalent, a decrease from 6,195.03 tons in FY2022, representing a reduction of approximately 2.37% [152]. - The total amount of purchased paper materials decreased by 13.61% from HKD 40.67 million in FY2022 to HKD 35.13 million in FY2023, primarily due to lower inventory levels [157]. - The recycling rate for waste materials in FY2023 was 99.77%, slightly up from 99.74% in FY2022 [159]. - The company aims to use more environmentally friendly materials and reduce the use of non-recyclable materials in production [177]. - The company continues to promote the use of soy ink in all printing processes, which significantly reduces VOC emissions compared to traditional solvent-based inks [179]. Corporate Governance - The board of directors held four meetings during the reporting period, with all members attending all meetings [90]. - The audit committee reviewed the audited consolidated financial statements for the reporting period and recommended approval to the board [103]. - The company has appointed three independent non-executive directors, ensuring independent judgment within the board [91]. - The board is responsible for formulating business strategies and monitoring the group's performance [95]. - The company regularly reviews and determines the remuneration of directors and senior management based on market levels and group performance [107]. - The audit committee consists of three members, ensuring compliance with corporate governance codes [102]. Employee and Workforce Management - The company employed 397 staff as of December 31, 2023, down from 459 in 2022, with total employee costs of approximately HKD 59.7 million compared to HKD 64.2 million in the previous year [67]. - Employee headcount at the end of FY2023 was 393, down from 454 in FY2022, reflecting a decrease of 61 employees or 13.44% [184]. - The number of employees resigning in FY2023 increased to 82 from 79 in FY2022, with those employed for less than 2 years decreasing from 36 to 30 [192]. - Total training hours increased from 3,558 in FY2022 to 3,566 in FY2023 [200]. - 1,558 employees participated in fire and chemical leak drills in FY2023, up from 1,426 in FY2022 [200]. - Employee turnover rate for those with over 2 years of service maintained below 10% [197].

Financial Performance - For the three months ended September 30, 2023, the company reported revenue of HKD 35,769,000, a decrease of 22.9% compared to HKD 46,431,000 in the same period of 2022[7]. - The gross profit for the same period was HKD 8,987,000, down 47.9% from HKD 17,243,000 year-on-year[7]. - Operating loss for the three months was HKD 2,357,000, compared to an operating profit of HKD 6,423,000 in the previous year[7]. - The company recorded a net loss of HKD 4,947,000 for the three months, compared to a profit of HKD 4,537,000 in the same period of 2022[7]. - For the nine months ended September 30, 2023, total revenue was HKD 121,933,000, a decline of 21.1% from HKD 154,665,000 in the same period of 2022[7]. - The net loss for the nine months was HKD 17,615,000, compared to a loss of HKD 16,671,000 in the previous year[7]. - Revenue for the nine months ended September 30, 2023, was approximately HKD 121.9 million, a decrease of about 21.2% from approximately HKD 154.7 million for the same period in 2022[30]. - The group reported a revenue of HKD 35.7 million for the three months ended September 30, 2023, down from HKD 46.4 million for the same period in 2022, representing a decline of approximately 23.1%[22]. - The group’s basic loss per share for the nine months ended September 30, 2023, was based on a loss attributable to equity holders of HKD 17.6 million[26]. - The company recorded a loss of approximately HKD 17.6 million for the nine months ended September 30, 2023, compared to a loss of HKD 16.7 million for the same period in 2022[41]. Equity and Shareholder Information - The company’s total equity as of September 30, 2023, was HKD 39,653,000, down from HKD 101,548,000 a year earlier[8]. - The company issued new shares amounting to HKD 4,275,000 during the nine months[8]. - The chairman and CEO, Mr. Lin, holds 48,000,000 shares, representing 55.17% of the company's equity, through First Tech Inc., which he fully owns[61]. - The major shareholder, First Tech, holds 55.17% of the company's equity, while another entity, Yili Credit Limited, holds 8.28% as a secured creditor[63][64]. - The company has a pledged share arrangement where 48,000,000 shares, equivalent to 8.28% of the issued share capital, are secured as collateral for a loan[61][63]. - The company completed a share consolidation, merging every ten existing shares into one, resulting in 86,998,000 consolidated shares[46]. - The company has no outstanding share options as of September 30, 2023, indicating no potential dilution from options[57]. Operational Challenges and Strategies - The company continues to face challenges in the market, impacting its financial performance and future outlook[7]. - The management is focused on cost control and exploring new market opportunities to improve financial results moving forward[7]. - The group plans to implement various measures to improve its financial position, including cost control and monitoring operational expenses[19]. - The group will actively negotiate with banks to renew or extend existing credit facilities and may sell certain properties to enhance liquidity[19]. - The group’s operational challenges are attributed to a decrease in sales orders influenced by overall global economic uncertainty[30]. - The company plans to improve equipment and increase automation to enhance market share and profitability[31]. Expenses and Financial Costs - Cost of sales decreased by approximately 18.1% from about HKD 113.6 million to about HKD 93.1 million during the same period[34]. - Gross profit for the nine months ended September 30, 2023, was approximately HKD 28.8 million, down from HKD 41.0 million, with gross margin decreasing from 26.5% to 23.6%[35]. - Other income decreased by approximately 25.2% from about HKD 17.3 million to about HKD 12.9 million, primarily due to reduced foreign exchange gains[36]. - Administrative expenses decreased from approximately HKD 44.1 million to HKD 40.7 million, mainly due to reduced employee salaries and depreciation[37]. - Financial costs increased from about HKD 4.8 million to HKD 7.4 million, primarily due to increased loan interest[39]. Governance and Compliance - The board of directors does not recommend the payment of a dividend for the nine months ended September 30, 2023, consistent with the previous year[28]. - The board believes that the deviation from the corporate governance code regarding the separation of roles of chairman and CEO is appropriate for effective management[54]. - The board consists of experienced individuals, including three independent non-executive directors, ensuring a balance of power and authority[53]. - The audit committee was established on November 15, 2017, and has reviewed the unaudited consolidated financial performance for the three and nine months ended September 30, 2023[66]. - The audit committee believes that the financial performance complies with applicable accounting standards and GEM listing rules, ensuring adequate disclosure[66]. - The company has confirmed compliance with the GEM Listing Rules regarding securities trading by directors for the nine months ended September 30, 2023[55]. - The company has not disclosed any interests or positions held by directors in competing businesses[65].