Employee Costs and Remuneration - Total employee costs for the reporting period were approximately HKD 69.8 million, compared to HKD 63.9 million in 2021[17] - The company employed 142 employees in Hong Kong, 8 in China, and 10 in Taiwan as of December 31, 2022[17] - The company's remuneration policy is based on operational performance, individual employee performance, and market standards[17] - Gender ratio of employees as of December 31, 2022: 90% male to 100% female, with plans to provide more training to attract male employees in service industries[75] Corporate Governance and Board Structure - The company's board of directors consists of 3 executive directors and 3 independent non-executive directors[26] - The company's board consists of 5 male directors (83%) and 1 female director (17%), maintaining gender diversity[33] - The company has established a corporate governance framework and policies in accordance with the GEM Listing Rules Appendix 15 Corporate Governance Code[30] - The board is responsible for the company's leadership, control, and management, overseeing business strategy, performance, and major transactions[31] - The company has appointed a female director in 2021, meeting the GEM Listing Rules' gender diversity requirement effective from January 1, 2022[33] - The board chairman is responsible for overall financial and strategic planning, while the CEO focuses on business management and operational decisions[35] - The board includes at least three independent non-executive directors, with one having appropriate professional qualifications or accounting/financial management expertise[36] - Directors are appointed for fixed terms, with executive directors having initial three-year service contracts and independent non-executive directors having initial three-year appointments[37] - One-third of directors will retire by rotation at each annual general meeting, with retiring directors eligible for re-election[39] - Directors receive formal induction upon appointment and ongoing professional development to stay updated on regulatory and business changes[40] - All directors have complied with the continuous professional training requirements as per the Corporate Governance Code, with details provided in the training records[42] - Attendance records for board and committee meetings show full attendance by all directors during the reporting period[43] - The Chairman and independent non-executive directors held one meeting without the presence of executive directors during the reporting period[45] Audit and Financial Reporting - The company's audit committee reviewed the group's accounting principles, internal controls, and financial reporting matters[24] - The company's auditor, KPMG, will retire at the upcoming annual general meeting and is eligible for re-appointment[28] - The Audit Committee reviewed the consolidated financial statements for the periods ending December 31, 2021, March 31, 2022, June 30, 2022, and September 30, 2022[53] - The Audit Committee met with the external auditor once without the presence of executive directors during the reporting period[57] - The company's external auditors have provided a statement regarding their responsibility for the consolidated financial statements, as detailed in the "Independent Auditor's Report" section of the annual report[73] - There are no disagreements between the Board of Directors and the Audit Committee regarding the selection, appointment, resignation, or dismissal of external auditors[74] - The independent auditor's report confirms that the consolidated financial statements for 2022 were prepared in accordance with Hong Kong Financial Reporting Standards and present a true and fair view of the company's financial position[92] - The company's directors are responsible for ensuring the financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance[101] - The company's audit committee assists the board in overseeing the financial reporting process[102] - The company's auditors conducted procedures to assess the accuracy of cost data and the reasonableness of judgments and estimates related to budgeted costs and expected gross margins[97] - The company's auditors reviewed the accuracy of the aging analysis of trade receivables as of December 31, 2022, by comparing relevant invoices and supporting documents[98] - The company's auditors evaluated the appropriateness of the accounting policies and the reasonableness of accounting estimates and related disclosures made by the directors[105] - The company's auditors assessed the overall presentation, structure, and content of the financial statements, including disclosures, to ensure they fairly reflect the transactions and events[107] Risk Management and Internal Controls - The company's risk management and internal control systems are designed to manage risks in accordance with the COSO Integrated Framework 2013 principles, ensuring effective monitoring across different business units[67][69] - The company has established a risk management policy to identify, assess, and manage major risks affecting the business[68] - The company conducts quarterly risk assessments at the departmental level, with management overseeing risk management and internal control activities to ensure proper management of identified risks[70] - The Board of Directors is responsible for reviewing and confirming the effectiveness and adequacy of the company's risk management and internal control systems[70] - The company has adopted a disclosure policy to handle confidential information, monitor information disclosure, and respond to inquiries, with strict procedures to prevent unauthorized access and use of insider information[69] - The company's internal control consultant has evaluated the internal control systems, including reviewing operational processes and policies, to provide assessment conclusions and improvement recommendations to the Audit Committee[69] Financial Performance and Key Metrics - Revenue for 2022 increased to 190,286 thousand HKD, up from 172,804 thousand HKD in 2021, representing a growth of approximately 10.1%[131] - Gross profit for 2022 was 68,537 thousand HKD, compared to 63,862 thousand HKD in 2021, reflecting a 7.3% increase[131] - Net profit for 2022 rose to 7,138 thousand HKD, up from 3,920 thousand HKD in 2021, marking an 82.1% increase[131] - Earnings per share (basic and diluted) for 2022 were 1.78 HKD, compared to 0.97 HKD in 2021[131] - Total assets increased to 133,196 thousand HKD in 2022 from 127,399 thousand HKD in 2021, reflecting growth in both non-current and current assets[132] - Net profit attributable to the company's owners rose to 7,103 thousand HKD in 2022, up from 3,884 thousand HKD in 2021, indicating a significant improvement in profitability[134] - Cash and bank balances remained stable at 58,585 thousand HKD in 2022 compared to 58,935 thousand HKD in 2021, showing consistent liquidity[132] - The company's equity value increased to 89,248 thousand HKD in 2022 from 85,246 thousand HKD in 2021, driven by higher retained earnings[133] - Operating cash flow from business activities decreased to 17,379 thousand HKD in 2022 from 20,634 thousand HKD in 2021, reflecting changes in working capital[136] - The company paid dividends of 3,000 thousand HKD in 2022, compared to no dividends paid in 2021[134] - Lease liabilities increased significantly to 15,256 thousand HKD in 2022 from 6,940 thousand HKD in 2021, indicating higher commitments under lease agreements[132] - Intangible assets decreased to 4,933 thousand HKD in 2022 from 7,275 thousand HKD in 2021, reflecting amortization and potential impairments[132] - The company raised new bank loans of 2,617 thousand HKD in 2022, compared to no new loans in 2021, to support its financing activities[138] - Net cash used in financing activities increased to 15,497 thousand HKD in 2022 from 13,415 thousand HKD in 2021, primarily due to higher lease liability repayments[138] Shareholder and Investor Relations - The company has established a website (www.hetermedia.com) as a communication platform for shareholders and investors, providing updates on business development and operations[80] - Shareholders can request an extraordinary general meeting (EGM) by submitting a written request, and the EGM must be held within two months of the request[86] - The company has adopted a dividend policy, but there is no predetermined payout ratio, with dividends subject to approval by shareholders[90] - The company maintained sufficient public float in accordance with GEM Listing Rules[116] Revenue and Customer Concentration - Revenue from comprehensive printing services for the year ended December 31, 2022, was approximately HKD 190,286,000[96] - The company's revenue recognition is based on the percentage of completion method, measured by the value of work performed to date as a proportion of the total transaction price[97] - The top five customers accounted for approximately 24.7% of the company's total revenue in 2022, up from 21.0% in 2021[122] - The largest customer contributed approximately 13.9% of the company's total revenue in 2022, compared to 8.0% in 2021[122] Supplier and Procurement Information - The top five suppliers accounted for 36.8% of the company's total purchases in 2022, down from 42.2% in 2021[122] - The largest supplier accounted for 9.5% of the company's total purchases in 2022, down from 12.2% in 2021[122] Share Options and Awards - The company plans to issue 40,000,000 shares under the share option plan, representing 10% of the total issued shares as of the report date[141] - The share option plan allows each participant to receive no more than 1% of the total issued shares within any 12-month period[141] - As of December 31, 2022, the total number of unexercised share options was 900,000, with 75,000 options expiring during the year[143] - The company adopted a share award plan on July 4, 2022, which will remain effective for ten years, with the total number of shares granted not exceeding 10% of the issued shares as of the adoption date[145][147] - The maximum number of shares that can be granted to any selected participant under the share award plan is 1% of the issued share capital as of the adoption date, which was 400,000,000 shares[147] Ownership and Shareholding Structure - As of December 31, 2022, Yu Zhiming and Chen William jointly held 222,760,000 shares, representing 55.69% of the company's issued shares[55] - Yu Zhiming holds a 70.2% beneficial interest in HM Ultimate Holdings Limited, while Chen William holds a 29.8% interest[56] - HM Ultimate holds 222,760,000 shares, representing 55.69% of the company's shares, with Yu and Chen jointly controlling all shares held by HM Ultimate[150] Legal and Compliance - No significant contracts or arrangements involving directors' interests were entered into during the reporting period[10] - The company's controlling shareholders confirmed compliance with non-compete commitments during the reporting period[13] - No shares were pledged by controlling shareholders during the reporting period[14] - No significant events requiring disclosure occurred between December 31, 2022, and the date of the annual report[27] - No employees were found to have violated the written guidelines for trading the company's securities during the reporting period[47] - The company has implemented an anti-bribery and corruption policy, along with a whistleblowing system to ensure high standards of professional conduct[83] Accounting Policies and Financial Reporting Standards - The company was incorporated in the Cayman Islands on January 13, 2016, and its shares were initially listed on the GEM of the Hong Kong Stock Exchange[153] - The company's functional currency is Hong Kong dollars (HKD), and all values are rounded to the nearest thousand HKD unless otherwise stated[153] - The company applied several amendments to Hong Kong Financial Reporting Standards (HKFRS) effective from January 1, 2022, which did not have a significant impact on the financial statements[154] - The company has not early adopted certain new and amended HKFRS that have been issued but are not yet effective, with no expected significant impact on future financial statements[156] - The consolidated financial statements are prepared on a historical cost basis, except for certain financial instruments measured at fair value[159] - Fair value measurements are categorized into Level 1, Level 2, and Level 3 based on the observability of inputs[160] - The company consolidates entities it controls, and control is reassessed if there are changes in the factors indicating control[162] - Control is determined based on the ability to exercise power over an investee, exposure to variable returns, and the ability to influence those returns through power[163] - The company considers various factors when assessing control, including the size and dispersion of voting rights, potential voting rights, and contractual arrangements[164] - Subsidiaries' financial statements are adjusted to align with the group's accounting policies, and all intra-group transactions are fully eliminated in consolidation[166] - Non-controlling interests in subsidiaries are presented separately from the group's equity, representing the proportionate share of net assets in liquidation[166] - Business combinations are accounted for using the acquisition method, with consideration transferred measured at fair value[167] - Goodwill is measured as the excess of the sum of consideration transferred, non-controlling interests, and previously held equity interests over the net identifiable assets acquired[170] - Contingent consideration in business combinations is measured at fair value at the acquisition date and included as part of the consideration transferred[172] - If a business combination is achieved in stages, previously held equity interests are remeasured to fair value at the acquisition date, with any gain or loss recognized in profit or loss or other comprehensive income[173] - Investments in associates and joint ventures are accounted for using the equity method, with any excess of cost over the fair value of identifiable net assets recognized as goodwill[174] - Goodwill is allocated to cash-generating units and tested for impairment annually or more frequently if there are indications of impairment[176] - Impairment losses are first allocated to reduce the carrying amount of goodwill, and then to other assets in the cash-generating unit on a pro-rata basis[176] - The company recognizes revenue when control of goods or services is transferred to the customer, based on the progress of fulfilling performance obligations[185][188][191] - Revenue from comprehensive printing services, including financial printing and marketing-related product printing, is recognized over time using the input method[193] - Contract assets arise when the company has a right to consideration that is not yet unconditional, while contract liabilities arise when the company has an obligation to transfer goods or services after receiving consideration[188][189] - The company uses the equity method to account for investments in associates and joint ventures, recognizing its share of profits, losses, and other comprehensive income[179][181] - When the company disposes of an associate or joint venture, any difference between the carrying amount and the fair value of retained interests is recognized in profit or loss[183] - Goodwill is allocated to cash-generating units and is considered in determining the gain or loss on disposal of a cash-generating unit[177] - A lease is defined as a contract that conveys the right to control the use of an identified asset for a period of time in exchange for consideration[194] - The company assesses whether a contract contains a lease based on the definition in HKFRS 16 at the inception, modification, or acquisition date[194] - The company ceases to recognize its share of further losses in an associate or joint venture when its share of losses exceeds its interest in the entity[181] - The company reclassifies gains or losses previously recognized in other comprehensive income to profit or loss upon disposal of an associate or joint venture[183] - The company allocates contract consideration to lease and non-lease components based on their relative standalone prices[195] - Short-term leases with a duration of 12 months or less and low-value asset leases are exempt from recognition requirements[196] - Lease payments for short-term and low-value asset leases are recognized as expenses on a straight-line or systematic basis over the lease term[196] - Right-of-use assets are measured at cost less accumulated depreciation and impairment losses, adjusted for any remeasurement of lease liabilities[199] - Right-of-use assets are depreciated over the shorter of their useful life or lease term, unless ownership is reasonably certain at lease end[199] - Right-of-use assets are presented as a separate line item in the consolidated financial position statement[200] Charitable Contributions - Charitable donations in 2022 totaled approximately 62,000 HKD, up from 53,000 HKD in 2020[117] Auditor Fees - Total fees paid to external auditor for audit services: HKD 800,000, and for non-audit services: HKD 150,000, totaling HKD 950,000[77] Credit and Receivables Management - The company assessed the recoverability of trade receivables by reviewing credit history, settlement records, and aging analysis of individual customers[98] - The company evaluated the expected credit losses for trade receivables and contract assets, considering the potential impact of COVID-19 on historical and forward-looking data[98]

HM International Holdings Limited （於開曼群島註冊成立的有限公司） （股份代號：8416） 二零二二年第三季度報告 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM之定位，乃為相比起其他在聯交所上市之公司帶有較高投資風險之中小 型公司提供一個上市之市場。有意投資之人士應了解投資於該等公司之潛在 風險，並應經過審慎周詳之考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣之證券可能會較於聯交 所主板買賣之證券承受較大的市場波動風險，同時無法保證在GEM買賣之證 券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本報告全部或任何部分 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。 本報告（HM International Holdings Limited（「本公司」）各董事（「董事」）願共同 及個別對此負全責）乃遵照聯交所GEM證券上市規則（「GEM上市規則」）的規 定而提供有關本公司及其附屬公司（統稱「本集團」）的資料。各董事在作出一 切合理查詢後，確認 ...

Financial Performance - For the six months ended June 30, 2022, the group reported revenue of HKD 100,702,000, an increase of 12.4% compared to HKD 89,540,000 for the same period in 2021[6] - Gross profit for the six months ended June 30, 2022, was HKD 41,064,000, representing a gross margin of 40.7%, up from HKD 36,382,000 in 2021[6] - The net profit attributable to owners of the company for the six months ended June 30, 2022, was HKD 13,852,000, a significant increase of 95.5% compared to HKD 7,080,000 in 2021[7] - For the six months ended June 30, 2022, the company reported a total comprehensive income of HKD 14,873,000, compared to HKD 7,069,000 for the same period in 2021, representing an increase of 110%[12] - The company's total revenue for the three months ended June 30, 2022, was HKD 18,462,000, up from HKD 10,924,000 in the same period of 2021, indicating a growth of 68.5%[33] - The net profit after tax surged by 109.3% to approximately HKD 14.9 million for the six months ended June 30, 2022, compared to HKD 7.1 million for the same period in 2021[49] Assets and Equity - The total assets of the group as of June 30, 2022, amounted to HKD 145,735,000, an increase from HKD 127,399,000 as of December 31, 2021[9] - The total equity attributable to owners of the company increased to HKD 98,150,000 as of June 30, 2022, from HKD 87,309,000 at the end of 2021[10] - The total equity attributable to owners of the company as of June 30, 2022, was HKD 98,150,000, an increase from HKD 90,490,000 as of June 30, 2021, representing an increase of 8%[12] Cash Flow and Investments - The group’s cash and bank balances as of June 30, 2022, were HKD 54,180,000, down from HKD 58,935,000 at the end of 2021[9] - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 7,967,000, compared to HKD 6,261,000 in 2021, indicating an increase of 27%[14] - The company’s investment activities resulted in a net cash outflow of HKD 5,564,000 for the six months ended June 30, 2022, compared to HKD 1,720,000 in 2021[14] Revenue Segmentation - Revenue from financial printing services for the six months ended June 30, 2022, was HKD 84,448,000, up from HKD 79,026,000 in 2021, reflecting a growth of 6%[23] - The company’s revenue from marketing-related printing services increased to HKD 9,613,000 for the six months ended June 30, 2022, from HKD 8,027,000 in 2021, marking a growth of 20%[23] Liabilities and Expenses - The group reported a tax expense of HKD 619,000 for the six months ended June 30, 2022, compared to HKD 601,000 in 2021[6] - Employee benefits expenses totaled HKD 32,724,000 for the six months ended June 30, 2022, compared to HKD 31,047,000 in 2021, reflecting an increase of 5.4%[30] - The group’s administrative expenses increased by 3.0% to approximately HKD 21.2 million for the six months ended June 30, 2022, compared to HKD 20.6 million in the previous year[46] Shareholder Information - As of June 30, 2022, the major shareholders include HM Ultimate Holdings Limited, holding approximately 222,760,000 shares, representing 55.69% of the total issued shares[65] - The company’s directors and key executives hold significant interests in the company, with the largest shareholder, Yu Zhiming, holding 55.69% of the shares[65] Corporate Governance - The company has adopted all principles and code provisions of the corporate governance code as per GEM Listing Rules Appendix 15[74] - The board confirmed compliance with all code provisions of the corporate governance code for the six months ended June 30, 2022[76] - The Audit Committee, established on December 15, 2016, consists of three independent non-executive directors and is responsible for reviewing financial reporting processes and risk management[80] Market Strategy and Operations - The company operates primarily in Hong Kong, with most of its revenue and assets located there, indicating a focused market strategy[24] - The group plans to monitor market developments closely and adapt its business strategies to maintain a competitive edge amid ongoing economic uncertainties[40]

Financial Performance - For the three months ended March 31, 2022, the group reported revenue of HKD 29,853,000, a slight increase of 1.02% compared to HKD 29,551,000 for the same period in 2021[4] - The gross profit for the same period was HKD 8,390,000, down 3.77% from HKD 8,720,000 in the previous year[4] - The group incurred a loss before tax of HKD 5,191,000, which is a marginal increase of 1.75% compared to a loss of HKD 5,102,000 in the prior year[4] - The net loss for the period was HKD 5,244,000, compared to a loss of HKD 5,173,000 in the same quarter of 2021, reflecting a 1.37% increase in losses[4] - Basic and diluted loss per share for the period was HKD 1.16, slightly higher than HKD 1.15 for the same period last year[4] - The total comprehensive loss for the period amounted to HKD 5,244,000, compared to HKD 5,181,000 in the previous year[4] - The company reported a loss attributable to owners of HKD 4,621 thousand for the three months ended March 31, 2022, compared to a loss of HKD 4,588 thousand in the same period of 2021[22] - Basic and diluted loss per share for the three months ended March 31, 2022, was HKD (1.16), slightly worse than HKD (1.15) for the same period in 2021[22] Revenue Breakdown - Revenue from financial printing services was HKD 22,638 thousand, a decrease from HKD 22,978 thousand in the previous year[27] - Revenue from marketing peripheral printing services decreased to HKD 4,266 thousand from HKD 5,680 thousand in the previous year[27] - Revenue from other services increased significantly by approximately 230.2%, rising to HKD 2,949 thousand from HKD 893 thousand[27] Expenses and Costs - Administrative expenses increased to HKD 10,607,000 from HKD 10,193,000, reflecting a rise of 4.07% year-on-year[4] - Sales expenses decreased by approximately HKD 0.3 million or 9.7% to about HKD 2.9 million for the three months ended March 31, 2022, from HKD 3.2 million for the same period in 2021, due to a reduction in hospitality expenses[29] - Administrative expenses increased by approximately HKD 0.4 million or 4.1% to about HKD 10.6 million for the three months ended March 31, 2022, compared to HKD 10.2 million for the same period in 2021[30] - Financing costs decreased by approximately HKD 0.4 million to about HKD 0.2 million for the three months ended March 31, 2022, from HKD 0.6 million for the same period in 2021, primarily due to a reduction in interest on lease liabilities[31] - Income tax expenses decreased by approximately HKD 18,000 to about HKD 53,000 for the three months ended March 31, 2022, from HKD 71,000 for the same period in 2021, mainly due to the provision for current tax of a subsidiary[32] Shareholder Information - The group’s total equity attributable to owners decreased to HKD 82,688,000 as of March 31, 2022, down from HKD 87,309,000 at the beginning of the year[5] - As of March 31, 2022, major shareholders HM Ultimate held approximately 55.69% of the company's shares, totaling 222,760,000 shares[40] - The company did not recommend any dividend for the three months ended March 31, 2022, consistent with the previous year[21] - The board did not recommend the payment of any dividends for the three months ended March 31, 2022, consistent with the same period in 2021[34] Business Strategy and Market Conditions - The group continues to focus on providing integrated printing services, including financial printing and marketing collateral printing, as part of its core business strategy[8] - The company maintains a solid recurring customer base, which is seen as a key factor for success in the market[24] - The company plans to continue focusing on providing integrated printing services and exploring business mergers to enhance shareholder value[25] - The ongoing COVID-19 pandemic continues to pose challenges to the business environment, affecting potential clients' activities in Hong Kong[25] Corporate Governance - The company has complied with all applicable corporate governance codes as per GEM listing rules during the three months ended March 31, 2022[44] - The company has adopted the trading compliance standards as per GEM Listing Rules 5.48 to 5.67, confirming adherence by all directors for the three months ending March 31, 2022[46] - The Audit Committee, established on December 15, 2016, consists of three independent non-executive directors and is responsible for reviewing the financial reporting process and risk management[48] - The unaudited condensed consolidated financial statements for the three months ending March 31, 2022, were reviewed by the Audit Committee in conjunction with management[48]

Financial Performance - For the three months ended September 30, 2021, the company reported revenue of HKD 41,530,000, a 34% increase from HKD 30,981,000 in the same period of 2020[6] - Gross profit for the same period was HKD 16,312,000, representing a 31% increase compared to HKD 12,406,000 in 2020[6] - The company achieved a profit before tax of HKD 2,349,000, up 59% from HKD 1,477,000 in the prior year[6] - Net profit for the three months was HKD 2,397,000, a 71% increase from HKD 1,400,000 in the same quarter of 2020[6] - For the nine months ended September 30, 2021, total revenue reached HKD 131,059,000, a 43% increase from HKD 91,503,000 in 2020[6] - The company reported a net profit of HKD 9,508,000 for the nine-month period, compared to HKD 511,000 in the same period last year, marking a significant increase[6] - Revenue for the three months ended September 30, 2021, was HKD 41,518,000, representing a 34% increase from HKD 30,981,000 in the same period of 2020[17] - Revenue for the nine months ended September 30, 2021, was HKD 131,059,000, up 43% from HKD 91,503,000 in the same period of 2020[17] - The company reported a profit attributable to owners of HKD 2,218,000 for the three months ended September 30, 2021, compared to HKD 1,218,000 in the same period of 2020[27] - For the nine months ended September 30, 2021, profit attributable to owners was HKD 9,298,000, significantly up from HKD 289,000 in the same period of 2020[27] - Basic earnings per share for the three months ended September 30, 2021, was HKD 0.55, compared to HKD 0.30 for the same period in 2020[27] - Basic earnings per share for the nine months ended September 30, 2021, was HKD 2.32, a substantial increase from HKD 0.07 in the same period of 2020[27] Expenses and Costs - Employee benefit expenses totaled HKD 15,343,000 for the three months ended September 30, 2021, compared to HKD 13,840,000 in the same period of 2020[24] - Sales expenses increased by approximately HKD 2.7 million or 34.9% to HKD 10.5 million for the nine months ended September 30, 2021, in line with revenue growth[36] - Administrative expenses rose by approximately HKD 1.1 million or 3.7% to HKD 30.8 million for the nine months ended September 30, 2021[37] - Financing costs decreased from approximately HKD 2.4 million to HKD 1.0 million for the nine months ended September 30, 2021, primarily due to reduced lease liabilities[38] Strategic Focus - The company continues to focus on expanding its integrated printing services, including financial printing and marketing collateral[11] - The financial results reflect the company's ongoing strategy to enhance operational efficiency and market presence[12] - The company remains optimistic about maintaining core business despite uncertainties from the COVID-19 pandemic and will explore potential opportunities for growth[31] Governance and Compliance - The company has complied with all corporate governance code provisions applicable during the nine months ended September 30, 2021[57] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2021[61] - The company has established a governance framework in accordance with GEM listing rules, ensuring adherence to all applicable governance codes[57] - The company has adopted trading compliance standards for directors and relevant employees, with no violations reported during the nine months ended September 30, 2021[59] Shareholder Information - HM Ultimate holds 222,760,000 shares, representing 55.69% of the total issued shares as of September 30, 2021[51] - The company has granted a total of 1,000,000 stock options, with 975,000 options remaining unexercised as of September 30, 2021[54] - The stock options granted in 2018 have an exercise price of HKD 0.70, with the exercise period for Group A options ending on March 15, 2022, and for Group B options ending on March 15, 2023[54] - As of September 30, 2021, there were no other individuals holding any interests in shares or related securities apart from those disclosed[52] Dividend Policy - The company did not recommend any dividend for the nine months ended September 30, 2021, consistent with the same period in 2020[25] - The board does not recommend the distribution of dividends for the nine months ended September 30, 2021[43] Other Income - Other income decreased from a net gain of approximately HKD 4.5 million to a net loss of HKD 0.3 million for the nine months ended September 30, 2021[35] Operating Segments - The group has identified only one operating segment, which is the provision of comprehensive printing services, with most revenue generated from Hong Kong[18] Financial Reporting Standards - The company expects that the application of new Hong Kong Financial Reporting Standards will not have a significant impact on the consolidated financial statements in the foreseeable future[16]

Financial Performance - For the six months ended June 30, 2021, the group reported revenue of HK$89,540,000, a 48% increase from HK$60,522,000 in the same period of 2020[6] - Gross profit for the six months ended June 30, 2021, was HK$36,382,000, representing a 52% increase compared to HK$23,928,000 in 2020[6] - The group achieved a profit before tax of HK$7,712,000 for the six months ended June 30, 2021, compared to a loss of HK$626,000 in the same period of 2020[6] - The net profit attributable to owners of the company for the six months ended June 30, 2021, was HK$7,080,000, compared to a loss of HK$929,000 in 2020[7] - For the six months ended June 30, 2021, the company reported a net profit of HKD 7,038,000, compared to a loss of HKD 943,000 for the same period in 2020, representing a significant turnaround[12] - The company reported a profit of HKD 10,924,000 for the three months ended June 30, 2021, compared to HKD 6,848,000 for the same period in 2020, representing a 59.8% increase[33] - For the six months ended June 30, 2021, the profit attributable to owners was HKD 6,336,000, a significant recovery from a loss of HKD 929,000 in the same period of 2020[33] Assets and Equity - Total assets as of June 30, 2021, amounted to HK$139,196,000, an increase from HK$128,782,000 as of December 31, 2020[9] - The group’s total equity increased to HK$87,868,000 as of June 30, 2021, compared to HK$80,798,000 at the end of 2020[10] - The company’s total equity attributable to owners increased to HKD 90,490,000 as of June 30, 2021, up from HKD 87,637,000 at the beginning of the year[12] Cash Flow and Liquidity - The group's cash and bank balances decreased to HK$50,089,000 as of June 30, 2021, down from HK$65,314,000 at the end of 2020[9] - Cash generated from operating activities for the six months ended June 30, 2021, was HKD 6,261,000, compared to HKD 1,313,000 in 2020, indicating improved operational efficiency[14] - The company’s cash and cash equivalents decreased to HKD 50,089,000 as of June 30, 2021, down from HKD 55,869,000 at the end of June 2020[14] - The company’s current ratio was approximately 2.1 times as of June 30, 2021, down from 2.4 times as of December 31, 2020[54] Expenses - Total employee benefit expenses increased to HKD 31,047,000 for the six months ended June 30, 2021, up from HKD 23,528,000 in 2020, marking a 31.8% rise[30] - Selling expenses increased by approximately HKD 2.2 million or 44.0% to HKD 7.1 million for the six months ended June 30, 2021[46] - Administrative expenses rose by approximately HKD 2.0 million or 11.0% to HKD 20.6 million for the six months ended June 30, 2021[47] Taxation - The total tax expense for the six months ended June 30, 2021, was HKD 601,000, compared to HKD 263,000 in 2020, reflecting a 128.5% increase[27] Trade and Receivables - Trade receivables rose to HKD 34,072,000 as of June 30, 2021, compared to HKD 22,952,000 at the end of 2020, indicating a 48.5% increase[37] - Trade payables increased to HKD 20,165,000 as of June 30, 2021, from HKD 13,703,000 at the end of 2020, representing a 47.2% rise[38] Corporate Strategy and Governance - The company plans to continue expanding its market presence and investing in new product development to drive future growth[5] - The company is in the final stages of acquiring an art and graphic design company in Singapore to enhance its design services[41] - The company has complied with all corporate governance codes as per GEM listing rules during the six months ending June 30, 2021[73] - No directors or major shareholders have engaged in any competing business activities during the six months ending June 30, 2021[74] Shareholder Information - As of June 30, 2021, the company has a total of 222,760,000 shares held by HM Ultimate Holdings Limited, representing 55.69% of the issued shares[62] - The beneficial ownership of HM Ultimate is split between Yu Zhiming (70.2%) and Chen Weilian (29.8%)[64] - The beneficial ownership of Chen Weilian is also reflected in the spouse's rights, with 222,760,000 shares attributed to Huang Meizhi[65] Audit and Compliance - The Audit Committee was established on December 15, 2016, to oversee financial reporting processes and risk management[77] - The Audit Committee consists of three independent non-executive directors, including Mr. Wu Haoyun as the chairman[77] - The committee reviewed the accounting principles adopted by the group and discussed matters related to audit, risk management, and internal controls[77] - The unaudited condensed consolidated financial statements for the six months ended June 30, 2021, were reviewed by the committee[77]

Acquisitions and Partnerships - The company completed the acquisition of 70% of i.Link Group Limited, a financial printing company, in August 2020[11]. - The company also acquired 50% of the shares in Lingzhi Translation Company, which provides translation services for the financial and capital markets, in August 2020[11]. - The acquisition of 70% of I.Link Group Limited was agreed upon for HKD 5 million, which is expected to broaden the group's revenue sources and customer base[39][40]. - The company plans to enhance its unique financial translation solutions in collaboration with Wordbee, aiming to position itself as a comprehensive solution provider for financial and corporate marketing clients[18]. - The group increased its stake in Wordbee S.A. from 12.9% to 22.85% by acquiring 4,078 shares for EUR 500,000 (approximately HKD 4.3 million) in February 2020[39]. Financial Performance - The company's revenue decreased from approximately HKD 130.5 million to about HKD 119.5 million, a decline of 8.4% due to the impact of COVID-19[19]. - Gross profit fell from approximately HKD 58.5 million to about HKD 43.6 million, a decrease of 25.5%[22]. - The company's net loss after tax increased from approximately HKD 2.5 million to a loss of about HKD 5.0 million, representing a decline of 298.1%[28]. - Other income rose from a loss of approximately HKD 0.5 million to about HKD 8.8 million, an increase of HKD 9.3 million[23]. - The total assets decreased to approximately HKD 128.8 million from HKD 132.8 million, while total equity increased to about HKD 80.8 million from HKD 87.6 million[31]. Operational Challenges and Strategies - The business faced a significant decline in revenue due to the COVID-19 pandemic, with clients becoming more cautious and reducing expenditures[11]. - The company is focused on technology development and enhancing operational flexibility to adapt to the changing business environment[10]. - The company aims to maintain a strong core business while minimizing losses during challenging times[10]. - The company will continue to monitor the impact of the pandemic on its operations and financial condition[11]. - The company recognizes the need for flexibility in its workforce, allowing remote work to attract talent[10]. Governance and Compliance - The company has established a corporate governance framework in compliance with the GEM Listing Rules, ensuring transparency and accountability[136]. - The board of directors is responsible for the leadership, control, and management of the company, ensuring effective operation and growth to enhance shareholder value[137]. - The company has received annual confirmations of independence from all independent non-executive directors, affirming their status as independent individuals[117]. - The audit committee reviewed the accounting principles and practices adopted by the group, ensuring proper oversight of financial reporting[131]. - The company has established a risk management policy to identify and assess key risks affecting the business[169]. Employee and Workforce Management - As of December 31, 2020, the total employee cost (including directors' remuneration) was approximately HKD 52.6 million, slightly up from HKD 52.3 million in 2019[35]. - The group employed 145 staff in Hong Kong, 8 in China, and 11 in Taiwan as of December 31, 2020, compared to 129, 5, and 11 respectively in 2019[35]. - The group provided competitive compensation packages to attract and retain employees, with annual reviews to assess performance[93]. - The company emphasizes the importance of training and development for its staff, which is crucial for maintaining high service standards in the competitive financial printing sector[51]. - The company has integrated sustainability into its daily operations and invested in technology to support remote work, aiming to reduce paper usage through electronic document management[69]. Shareholder Relations and Communication - The company emphasizes effective communication with shareholders to strengthen investor relations and understanding of business performance[179]. - Shareholders can contact the company through various channels for inquiries or to express opinions[180]. - The company has established a shareholder communication policy to effectively address shareholder concerns[187]. - All resolutions presented at the shareholders' meeting will be voted on individually, ensuring transparency and adherence to GEM listing rules[183]. - The board has the authority to propose and declare dividends based on the group's financial status and conditions outlined in the dividend policy[187]. Environmental and Social Responsibility - The company is focused on sustainable business practices, aligning its operations with environmental governance standards to enhance corporate responsibility[53]. - The company has established a comprehensive environmental policy and performance metrics[65]. - The company has implemented various environmental impact mitigation measures, including obtaining FSC certification for most office paper used by employees[69]. - The group made charitable donations totaling approximately HKD 33,000 for the year ended December 31, 2020, compared to HKD 46,000 in 2019[92]. - The company has not recommended the distribution of a final dividend for the year ended December 31, 2020, consistent with the previous year[73].

HM International Holdings Limited （於開曼群島註冊成立的有限公司） （股份代號：8416） 二零二零年第三季度報告 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM之定位，乃為相比起其他在聯交所上市之公司帶有較高投資風險之中小 型公司提供一個上市之市場。有意投資之人士應了解投資於該等公司之潛在 風險，並應經過審慎周詳之考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣之證券可能會較於聯交 所主板買賣之證券承受較大的市場波動風險，同時無法保證在GEM買賣之證 券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部分內 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。 本報告（HM International Holdings Limited（「本公司」）各董事（「董事」）願共同 及個別對此負全責）乃遵照聯交所GEM證券上市規則（「GEM上市規則」）的規 定而提供有關本公司及其附屬公司（統稱「本集團」）的資料。各董事在作出一 切合理查詢後，確認就 ...

HM International Holdings Limited （於開曼群島註冊成立的有限公司） （股份代號：8416） 二零二零年中期報告 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM之定位，乃為相比起其他在聯交所上市之公司帶有較高投資風險之中小 型公司提供一個上市之市場。有意投資之人士應了解投資於該等公司之潛在 風險，並應經過審慎周詳之考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣之證券可能會較於聯交 所主板買賣之證券承受較大的市場波動風險，同時無法保證在GEM買賣之證 券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本報告全部或任何部份內 容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 本報告（HM International Holdings Limited（「本公司」）各董事（「董事」）願共同 及個別對此負全責）乃遵照聯交所GEM證券上市規則（「GEM上市規則」）的規 定而提供有關本公司及其附屬公司（統稱「本集團」）的資料。各董事在作出一 切合理查詢後，確認就其所 ...

Financial Performance - For the three months ended March 31, 2020, the company reported revenue of HKD 19,721,000, a decrease of 25.9% compared to HKD 26,568,000 for the same period in 2019[4] - The gross profit for the same period was HKD 5,213,000, down 54.4% from HKD 11,407,000 in the previous year[4] - The company recorded a loss before tax of HKD 7,734,000, compared to a loss of HKD 2,222,000 in the prior year, representing a significant increase in losses[4] - The net loss for the period was HKD 7,740,000, compared to a net loss of HKD 2,317,000 in the same quarter of 2019, indicating a year-over-year increase of 233.5%[4] - Basic and diluted loss per share for the period was HKD 1.94, compared to HKD 0.57 for the same period last year[4] - The company reported total comprehensive loss of HKD 7,735,000 for the period, compared to a total comprehensive loss of HKD 2,324,000 in the previous year[4] - The company's revenue for the three months ended March 31, 2020, was approximately HKD 19.7 million, a decrease of about 25.8% compared to HKD 26.6 million for the same period in 2019[22] - The gross profit decreased from approximately HKD 11.4 million for the three months ended March 31, 2019, to approximately HKD 5.2 million for the same period in 2020, representing a decline of about 54.3%[26] - The company reported a loss attributable to owners of approximately HKD 7.8 million for the three months ended March 31, 2020, compared to a loss of HKD 2.3 million for the same period in 2019[20] - The group's loss increased from approximately HKD 2.3 million for the three months ended March 31, 2019, to approximately HKD 7.7 million for the three months ended March 31, 2020, representing an increase of approximately 234.1% or about HKD 5.4 million, primarily due to a decrease in gross profit[31] Expenses and Costs - The company’s financing costs increased to HKD 801,000 from HKD 11,000 in the previous year, indicating a significant rise in financial expenses[4] - The company's sales expenses decreased by approximately 31.0% from HKD 3.3 million for the three months ended March 31, 2019, to HKD 2.3 million for the same period in 2020[27] - Administrative expenses decreased from approximately HKD 10.3 million for the three months ended March 31, 2019, to HKD 9.7 million for the same period in 2020, a reduction of about 6.0%[28] - The income tax expense decreased by approximately 93.7% from HKD 95,000 for the three months ended March 31, 2019, to HKD 6,000 for the same period in 2020[30] Shareholder Information - As of March 31, 2020, major shareholders HM Ultimate held 297,045,000 shares, representing approximately 74.26% of the company's total issued shares[38] - The company had no share options granted, exercised, lapsed, or cancelled during the three months ended March 31, 2020, with a total of 1,200,000 share options remaining unexercised[40] - There were no purchases, sales, or redemptions of the company's listed securities by the company or any of its subsidiaries during the three months ended March 31, 2020[41] Corporate Governance - The company confirmed compliance with all corporate governance codes applicable during the three months ended March 31, 2020[42] - No directors, management, or controlling shareholders participated in any competing businesses or had any conflicts of interest during the three months ended March 31, 2020[43] - The company adopted the GEM Listing Rules for securities trading standards, and all directors confirmed compliance during the three months ended March 31, 2020[44] - The Audit Committee was established on December 15, 2016, to oversee financial reporting processes and risk management[46] - The Audit Committee consists of three independent non-executive directors, including Mr. Wu Haoyun as the chairman[46] - The committee reviewed the accounting principles adopted by the group and discussed audit, risk management, and internal control matters[46] - The group reviewed its unaudited condensed consolidated financial statements for the three months ended March 31, 2020[46] Business Outlook - The company has not disclosed any new product developments or market expansion strategies during this reporting period[4] - The company continues to operate in the integrated printing services sector, focusing on financial printing and marketing-related products[7] - The company is optimistic about maintaining its core business despite economic uncertainties and is actively seeking business development opportunities through mergers and existing customer bases[23] Dividends - The company did not propose any dividend for the three months ended March 31, 2020, consistent with the previous year[19] - The board did not propose any dividend for the three months ended March 31, 2020, consistent with the previous year[32]