Company Overview - Shenglong Jinxiu International (08481.HK) reported a closing price of HKD 0.39 per share, with a significant increase of 27.87% on June 19 [1] - The company experienced a cumulative decline of 35.11% over the past month, while year-to-date, it has seen a modest increase of 1.67%, underperforming the Hang Seng Index by 18.2% [1] - Financial results for the year ending December 31, 2024, indicate total revenue of HKD 586 million, representing a year-on-year growth of 8.34%, and a net profit attributable to shareholders of HKD 47.51 million, up 67.58% [1] Financial Metrics - Shenglong Jinxiu International has a gross margin of 32.5% and a debt-to-asset ratio of 68.13% [1] - The company's price-to-earnings (P/E) ratio stands at 2.54, ranking first in its industry, compared to the industry average P/E of 19.19 and median of 3.68 [2] Industry Context - The industrial support sector has a P/E ratio average of 19.19, with Shenglong Jinxiu International significantly below this average [2] - The company is recognized as one of the few global leaders in decorative materials production, specializing in a comprehensive range of technologies including color design, printing, and coating [2] Major Shareholder Activity - On June 13, 2025, major shareholder Chen Deqin reduced his holdings by 2.8 million shares at an average price of HKD 0.3, now holding 301.3 million shares, which constitutes 61.43% of the company [3]

Financial Performance - The company's revenue reached RMB 585.6 million, an increase of 8.3% compared to RMB 540.5 million in the previous year[7]. - Profit before tax increased by 67.7% to RMB 55.3 million from RMB 33.0 million[7]. - Net profit attributable to the owners of the company rose by 67.6% to RMB 47.5 million from RMB 28.4 million[7]. - Basic and diluted earnings per share increased to RMB 9.87, up by RMB 4.20 from RMB 5.67[7]. - The gross profit margin improved to 32.5%, up from 28.9%[7]. - The net profit margin increased to 8.1%, compared to 5.2% in the previous year[7]. - Gross profit rose significantly to approximately RMB 190.3 million, an increase of about 21.9% from RMB 156.1 million, with the gross margin improving to approximately 32.5% from 28.9%[23]. - Other income and gains increased to approximately RMB 9.0 million, mainly due to higher government grants and foreign exchange gains[27]. Assets and Liabilities - Non-current assets increased by 40.8% to RMB 550.5 million from RMB 390.9 million[7]. - As of December 31, 2024, the group's current assets were approximately RMB 324.4 million, with a current ratio of about 1.13, down from 1.28 in the previous year[32]. - Total bank borrowings increased by approximately 51.7% to RMB 380.8 million, resulting in a debt-to-equity ratio of about 1.37, up from 0.98[33]. - The company has committed capital expenditures of approximately RMB 158.9 million for the acquisition of properties, plants, and equipment, up from RMB 20.9 million in 2023[41]. Operational Developments - The company acquired land use rights for approximately 122,836 square meters in the Shexian Economic Development Zone for new factory and industrial research center construction[16]. - Construction contracts for the new factory and research center were signed, with completion expected by December 30, 2026[16]. - The group plans to establish a new production facility in Shexian, Anhui Province, to enhance capacity and flexibility, aligning with its business expansion strategy[31]. Customer and Supplier Relations - The company served over 500 customers in domestic and international markets during the year[19]. - The top five customers accounted for approximately 51.3% of the total sales for the year, with the largest customer contributing about 19.1%[79]. - The top five suppliers represented about 64.3% of total procurement, with the largest supplier accounting for approximately 30.5%[79]. Employee and Compensation - Employee costs, including director remuneration, amounted to approximately RMB 92.9 million, up from RMB 74.0 million in 2023, reflecting market standards and individual performance[37]. - The company has established competitive compensation packages to attract and retain talented employees[83]. - The board of directors has recommended that the remuneration of directors be based on the company's performance and market competitiveness[84]. - Total number of employees as of December 31, 2024, is 396, an increase from 381 in 2023, with male employees making up 76% and female employees 24%[188]. Environmental, Social, and Governance (ESG) - The company has committed to environmental sustainability and has complied with relevant environmental laws and regulations during the year[62]. - The company emphasizes transparency in its Environmental, Social, and Governance (ESG) report, which covers the fiscal year from January 1, 2024, to December 31, 2024[162]. - The group has developed a series of environmentally friendly decorative materials under the SPLENDECOR brand, catering to customer needs[167]. - The company aims to enhance its ESG performance through continuous communication with stakeholders and improving social responsibility management[170]. Corporate Governance - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[109]. - The company has implemented a robust internal control and risk management system as part of its governance practices[113]. - The board is committed to enhancing corporate governance standards and believes it is crucial for maintaining investor confidence and increasing shareholder returns[107]. - The company has established compliance procedures to ensure adherence to applicable laws and regulations impacting its operations[62]. Risk Management - The management discussion and analysis section includes insights into the major risks and uncertainties faced by the company, as well as potential future developments[61]. - The company continues to monitor foreign exchange risk exposure and will make necessary hedging arrangements to mitigate potential risks from currency fluctuations[35]. - The company has identified climate-related risks that could impact operations and has developed response measures to mitigate these risks[185]. Health and Safety - The company is committed to providing a safe working environment and has not reported any major occupational health and safety incidents during the reporting period[200]. - The number of work-related injury cases increased to 22 in 2024 from 15 in 2023, resulting in an injury rate of 5.6% per 100 employees[198]. - The company has implemented measures to enhance employee safety awareness and strengthen safety training to prevent future incidents[198].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 585,649,000, representing an increase of 8.3% compared to RMB 540,544,000 in 2023[12] - Profit before tax increased by 67.7% to RMB 55,259,000 from RMB 32,950,000 in the previous year[12] - Net profit attributable to owners of the company rose by 67.6% to RMB 47,513,000, up from RMB 28,353,000[12] - Basic and diluted earnings per share increased to RMB 9.87, compared to RMB 5.67, reflecting a rise of RMB 4.20[12] - Gross profit margin improved to 32.5%, up from 28.9%, an increase of 3.6%[12] - Net profit margin increased to 8.1%, compared to 5.2%, reflecting a rise of 2.9%[12] - Gross profit increased significantly to approximately RMB 190.3 million, up by about RMB 34.2 million or 21.9% from RMB 156.1 million in the previous fiscal year, resulting in a gross margin of approximately 32.5%[28] Assets and Liabilities - Non-current assets grew by 40.8% to RMB 550,477,000 from RMB 390,880,000[12] - Current assets increased by 7.0% to RMB 324,439,000, up from RMB 303,191,000[12] - Total equity rose by 9.1% to RMB 278,831,000 from RMB 255,537,000[12] - The group's total bank borrowings increased by approximately 51.7% to RMB 380.8 million as of December 31, 2024, compared to RMB 251.1 million in 2023[38] - The group's current ratio decreased to approximately 1.13 times as of December 31, 2024, down from 1.28 times in 2023[37] Operational Efficiency - Interest coverage ratio improved to 5.4 times, up from 4.2 times, an increase of 1.2 times[12] - Sales costs increased by approximately RMB 10.9 million or 2.8% to RMB 395.3 million, primarily due to increased production volume[27] - Administrative expenses rose significantly by approximately RMB 8.3 million or 11.2% to RMB 82.6 million, mainly due to increased salaries and professional service costs[30] - Financial costs increased by approximately RMB 2.4 million or 23.1% to RMB 12.7 million, attributed to higher interest expenses from increased bank borrowings[33] Strategic Developments - The company acquired approximately 122,836 square meters of industrial land in the Shexian Economic Development Zone for the construction of a new factory and industrial research center, expected to be completed by December 30, 2026[21] - The company plans to establish another production facility in Shexian to meet the growing demand for decorative printing materials[21] - The group plans to establish a new production facility in Shexian, Anhui Province, to enhance capacity and flexibility, aligning with its business expansion strategy[36] Environmental Impact - The total amount of non-hazardous waste generated was 542.0 tons, with a density of 0.00093 tons per RMB thousand, compared to 413.7 tons and 0.00077 tons per RMB thousand in 2023[178] - The total amount of hazardous waste generated was 36.0 tons, with a density of 0.000061 tons per RMB thousand, compared to 11.6 tons and 0.000021 tons per RMB thousand in 2023[178] - The company aims to reduce the density of hazardous waste and greenhouse gas emissions by 5% in the fiscal year 2025 compared to the fiscal year 2024[178] - Total greenhouse gas emissions reached 5,928.6 tons in 2024, compared to 4,822.7 tons in 2023, with a density of 0.010 tons per RMB thousand[180] - The company has established comprehensive management systems for waste gas, wastewater, and solid waste to minimize environmental impact[177] Corporate Governance - The company has complied with all relevant laws and regulations during the year without any significant violations[82] - The board consists of three executive directors and three independent non-executive directors, responsible for corporate policy and major financial matters[114] - The company has established compliance procedures to ensure adherence to applicable environmental laws and regulations[67] - The company has implemented a strict insider trading policy to prevent unauthorized use of confidential information[165] Employee Relations - The group employed 396 staff as of December 31, 2024, an increase from 381 staff in 2023, with employee costs totaling approximately RMB 92.9 million[42] - The employee count as of December 31, 2024, was 396, up from 381 in the previous year, with a gender distribution of 76% male and 24% female[193] - The company recognizes the importance of maintaining strong relationships with employees, customers, and business partners for sustainable development[69] - The group provides fair and competitive compensation to employees, with a commitment to recognizing outstanding performance[198] Market Position - Revenue from decorative paper sales was RMB 438.0 million, accounting for 74.8% of total revenue, while melamine-impregnated paper sales reached RMB 117.1 million, representing 20.0% of total revenue[25] - The company has over 22 years of experience in manufacturing and selling decorative printing materials, emphasizing quality and customer satisfaction[172] - The company is focused on expanding its market presence globally, with products widely used in furniture, cabinets, and flooring[172] Shareholder Information - The company has not declared a final dividend for the year[72] - As of December 31, 2024, the company's distributable reserves were approximately RMB 79.0 million, down from RMB 103.9 million in 2023[80] - The company repurchased a total of 48,550,000 shares for a total amount of HKD 26,451,000 during the year[76] - The company has retained 40,420,000 repurchased shares as treasury stock for potential rewards to eligible participants and other uses[77]

SHENGLONG 盛 龙 SHENGLONG SPLENDECOR INTERNATIONAL LIMITED 盛 龍 錦 秀 國 際 有 限 公 司 (於附曼群島註冊成立的有限公司) (殷份代號: 8481) ::::::: 2024 中期報告 香港聯合交易所有限公司（「聯交所」）GEM特色 GEM乃為較其他於聯交所上市的公司帶有較高投資風險的中小型公司提供一個上市市場。 有意投資者應了解投資該等公司的潛在風險，並經過審慎周詳考慮後方才作出投資決定。 由於GEM上市公司通常為中小型公司，於GEM買賣的證券可能會較於聯交所主板買賣的證 券承受較大的市場波動風險，同時無法保證於GEM買賣的證券會有高流通市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示，概不就因本報告全部或任何部份內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 本報告乃遵照聯交所GEM證券上市規則（「GEM上市規則」）的規定而提供有關盛龍錦秀國際 有限公司（「本公司」）的資料，本公司之董事（「董事」）願就本報告共同及個別地承擔全部責 任。董事在作出一切合理查詢後，確認就 ...

Revenue and Profitability - The company's revenue for the six months ended June 30, 2024, was approximately RMB 260.6 million, representing an increase of about 13.6% compared to the corresponding period in 2023[8]. - Revenue from overseas markets increased by approximately 5.7%, driven by demand from the United Arab Emirates, Indonesia, and other overseas markets[8]. - Revenue from Chinese customers maintained strong demand, with a slight increase of about 17.6% compared to the corresponding period[8]. - Gross profit increased significantly by approximately RMB 16.1 million or about 27.7% to approximately RMB 74.1 million, with a gross margin rising to approximately 28.4% from 25.3% in the corresponding period[10]. - Profit attributable to the owners of the company was approximately RMB 15.1 million, compared to approximately RMB 6.9 million in the corresponding period[17]. - Operating profit increased to RMB 21,589,000, up 63.2% from RMB 13,248,000 in the previous year[29]. - Net profit for the period was RMB 15,134,000, a significant increase of 117.5% compared to RMB 6,933,000 in the same period of 2023[30]. - The company reported earnings per share of RMB 3.03 for the period, compared to RMB 1.39 in the previous year[29]. Expenses and Costs - The cost of sales increased by approximately RMB 15.1 million or about 8.8% to approximately RMB 186.5 million, primarily due to increased production volume[9]. - Selling expenses increased by approximately RMB 3.2 million or 17.9% to approximately RMB 21.1 million, mainly due to increased salaries and benefits for sales personnel and higher transportation and entertainment expenses[12]. - Administrative expenses increased by approximately RMB 7.2 million or 24.5% to approximately RMB 36.6 million during the period[13]. - Employee costs increased to approximately RMB 40.2 million from RMB 30.9 million in the corresponding period, reflecting market standards and individual performance[22]. - Depreciation and amortization expenses rose to RMB 18,408,000 from RMB 17,703,000, an increase of 4.0%[50]. Financial Position - Current assets were approximately RMB 299.4 million, with a current ratio of approximately 1.63, up from 1.28[19]. - Total bank borrowings increased by approximately 33.3% to RMB 334.8 million, with an asset-to-liability ratio of approximately 1.25[19]. - The company’s total equity increased to RMB 268,886,000 from RMB 255,537,000 at the end of 2023[31]. - Total assets as of June 30, 2024, were RMB 720,456,000, an increase from RMB 694,071,000 as of December 31, 2023[31]. - Long-term bank borrowings increased to RMB 264,800,000 as of June 30, 2024, up 33.7% from RMB 197,900,000 as of December 31, 2023[68]. - Short-term bank borrowings rose to RMB 70,000,000 as of June 30, 2024, compared to RMB 50,000,000 as of December 31, 2023, reflecting a 40% increase[69]. Cash Flow and Investments - For the six months ended June 30, 2024, the company reported a net cash outflow from operating activities of RMB (48,871) thousand, compared to a net inflow of RMB 3,709 thousand in the same period of 2023[34]. - The company experienced a significant increase in cash inflow from financing activities, totaling RMB 77,901 thousand for the six months ended June 30, 2024, compared to RMB 17,606 thousand in the prior year, marking a growth of approximately 341%[34]. - The company incurred RMB 41,041 thousand in cash outflow for the purchase of land use rights during the reporting period, which was not present in the previous year[34]. - The company reported a decrease in cash and cash equivalents, with a net decrease of RMB (16,551) thousand for the six months ended June 30, 2024, compared to an increase of RMB 17,741 thousand in the same period of 2023[35]. - The company’s total cash and cash equivalents at the end of the reporting period stood at RMB 68,520 thousand, down from RMB 84,448 thousand at the beginning of the period[35]. Business Expansion and Development - The company plans to expand production facilities to meet the increasing demand for decorative printing materials[25]. - The company plans to establish another production facility in Shexian to meet the growing demand for decorative printing materials, enhancing capacity and flexibility[27]. - The company acquired land use rights for approximately 122,836 square meters at a cost of RMB 36,850,890 to establish a production factory and industrial research center[23]. - A construction contract was signed for the factory and research center with a total price of RMB 220.0 million[24]. - The company is actively seeking opportunities to expand its business in the global decorative printing materials market and develop beneficial partnerships[27]. Shareholder Information and Corporate Governance - The company repurchased a total of 9,580,000 shares at a total cash consideration of approximately HKD 4.5 million, which will enhance the company's net asset value[86]. - The company holds 65.81% of its ordinary shares, with 322,760,000 shares held by a key individual[88]. - Bright Commerce holds a beneficial interest of 239,950,000 shares, representing 48.93% of the company[92]. - Mr. Sheng has a beneficial interest of 322,760,000 shares, accounting for 65.81% of the company[92]. - Ms. Chen, as Mr. Sheng's spouse, is deemed to have an interest in the same 322,760,000 shares, also representing 65.81%[94]. - The company has adopted GEM Listing Rules for securities trading standards, confirming compliance by all directors during the reporting period[97]. - The company has adhered to the corporate governance code, with the exception of the separation of roles between the Chairman and CEO[99]. - An audit committee has been established, consisting of three independent non-executive directors, to oversee financial reporting and internal controls[100]. - The interim results for the reporting period have been reviewed by the audit committee and deemed compliant with applicable accounting standards[101].

Financial Performance - The company's revenue reached RMB 540.5 million, an increase of 20.4% compared to RMB 448.8 million in the previous year[13]. - The profit before tax surged to RMB 32.95 million, reflecting a significant increase of 171.1% from RMB 12.15 million[13]. - Net profit attributable to the owners of the company rose to RMB 28.35 million, a 135.1% increase from RMB 12.06 million[13]. - Basic and diluted earnings per share increased to RMB 5.67, up by RMB 3.26 from RMB 2.41[13]. - Gross profit margin improved to 28.9%, an increase of 6.2 percentage points from 22.7%[13]. - The group's revenue for the year was approximately RMB 540.5 million, an increase of about 20.4% compared to RMB 448.8 million in the previous fiscal year[20]. - Gross profit increased by approximately RMB 54.2 million or 53.1% to about RMB 156.1 million, with a gross margin of approximately 28.9% compared to 22.7% in the previous fiscal year[24]. - The net profit attributable to the company's owners was approximately RMB 28.3 million, a significant increase of about 135.1% from RMB 12.1 million in the previous fiscal year[32]. Business Operations - The company plans to focus on business expansion and enhance R&D and production technology to maintain market position[16]. - The company served over 500 customers in domestic and international markets during the year[19]. - Revenue from decorative paper increased significantly by approximately 50.3%, while revenue from melamine-impregnated paper, paint paper, and PVC furniture film decreased by approximately 30.6%, 92.3%, and 100.0% respectively[21]. - The company plans to enhance operational efficiency and quality control through advanced technology and is considering expanding its production facilities to meet growing product demand[34]. - The company aims to explore opportunities to expand its presence in the global decorative printing materials market and develop beneficial partnerships[35]. - The company's main business activities include the manufacturing and sales of decorative printing materials, specifically decorative paper, melamine-impregnated paper, paint paper, PVC furniture film, and PVC flooring film[70]. Financial Position - Current assets increased by 59.3% to RMB 303.19 million from RMB 190.27 million[13]. - Non-current liabilities rose by 25.5% to RMB 201.45 million from RMB 160.46 million[13]. - The interest coverage ratio improved to 4.2 times, an increase of 1.9 times from 2.3 times[13]. - As of December 31, 2023, the group had current assets of approximately RMB 303.2 million, an increase from RMB 190.3 million in 2022, with cash and cash equivalents of RMB 77.3 million compared to RMB 10.3 million in 2022[37]. - The current ratio as of December 31, 2023, was approximately 1.28, up from 0.98 in 2022, indicating improved liquidity[37]. - Total bank borrowings as of December 31, 2023, were approximately RMB 251.1 million, a 15.9% increase from RMB 216.6 million in 2022[37]. - Trade receivables increased by approximately RMB 29.7 million to RMB 168.0 million as of December 31, 2023, with turnover days rising to 103.4 days from 101.5 days in 2022[39]. Expenses and Costs - Selling expenses rose by approximately RMB 8.1 million or 21.5% to about RMB 46.2 million, primarily due to increased salaries and benefits for sales personnel[25]. - Administrative expenses increased by approximately RMB 24.6 million or 49.3% to about RMB 74.3 million, mainly due to higher salaries and maintenance costs[26]. - Financial costs increased by approximately RMB 0.6 million or 6.8% to about RMB 10.3 million, primarily due to increased bank borrowing and decreased interest income[30]. - Employee costs, including director remuneration, amounted to approximately RMB 74.0 million, an increase from RMB 63.8 million in 2022[43]. Corporate Governance - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[128]. - The company has complied with the GEM Listing Rules and corporate governance code throughout the year[131]. - The board is committed to enhancing corporate governance standards and believes it is crucial for maintaining investor confidence and increasing shareholder returns[126]. - The remuneration committee held one meeting during the year to discuss compensation packages for executive directors and senior management[140]. - All independent non-executive directors confirmed their independence annually, in accordance with GEM Listing Rules[131]. - The company has established a dividend policy aimed at balancing shareholder expectations with prudent capital management, with the payout rate determined by the board[157]. Risk Management - The group faced various risks, including reliance on sales agents and fluctuations in raw material prices, which could negatively impact operations and profitability[53]. - The management discussion and analysis section provides insights into the major risks and uncertainties faced by the group, as well as potential future developments[72]. Shareholder Information - The company did not recommend the distribution of a final dividend for the year[79]. - The reserves available for distribution as of December 31, 2023, were approximately RMB 103.9 million, a slight decrease from RMB 104.6 million in 2022[88]. - Sales to the top five customers accounted for approximately 48.7% of total annual sales, with the largest customer contributing about 14.5%[92]. - Purchases from the top five suppliers represented about 70.7% of total annual purchases, with the largest supplier accounting for approximately 36.8%[92]. Compliance and Ethics - The company has complied with all relevant laws and regulations during the year, with no significant violations reported[90]. - The company has established a set of codes of conduct for securities trading by directors, ensuring compliance with GEM listing rules[185]. - The company has implemented a policy for insider information disclosure, adhering to the Securities and Futures Ordinance and GEM listing rules[189]. - The company has not engaged in any business activities with sanctioned countries during the year, ensuring compliance with international sanctions[177]. Environmental and Social Responsibility - The company is committed to developing green enterprises and environmentally friendly materials, focusing on health, safety, and environmental responsibility[197]. - The board of directors is responsible for overseeing the company's environmental, social, and governance strategies and performance[198]. - The company emphasizes gender diversity in hiring senior staff and aims to provide career development opportunities for female employees[156].

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 540,544 thousand, representing a 20.4% increase from RMB 448,796 thousand in 2022[20] - Profit before tax increased by 171.1% to RMB 32,950 thousand from RMB 12,154 thousand in the previous year[20] - Net profit attributable to owners of the company rose by 135.1% to RMB 28,353 thousand compared to RMB 12,058 thousand in 2022[20] - Basic and diluted earnings per share increased to RMB 5.67 from RMB 2.41, an increase of RMB 3.26[20] - Gross profit margin improved to 28.9%, up by 6.2 percentage points from 22.7% in the previous year[20] - Net profit margin increased to 5.2%, a rise of 2.5 percentage points from 2.7%[20] - Gross profit increased significantly to approximately RMB 156.1 million, up 53.1% from RMB 101.9 million in the previous fiscal year, resulting in a gross margin of approximately 28.9%[31] Assets and Liabilities - Total equity increased by 12.5% to RMB 255,537 thousand from RMB 227,155 thousand in 2022[20] - Current assets rose by 59.3% to RMB 303,191 thousand compared to RMB 190,268 thousand in the previous year[20] - Non-current liabilities increased by 25.5% to RMB 201,450 thousand from RMB 160,462 thousand in 2022[20] - As of December 31, 2023, the company's current assets amounted to approximately RMB 303.2 million, an increase from RMB 190.3 million in 2022, with cash and cash equivalents at RMB 77.3 million compared to RMB 10.3 million in 2022[44] - The current ratio as of December 31, 2023, was approximately 1.28, up from 0.98 in 2022, indicating improved liquidity[44] - The company's total bank borrowings increased by approximately 15.9% to RMB 251.1 million as of December 31, 2023, compared to RMB 216.6 million in 2022[44] Operational Efficiency - Interest coverage ratio improved to 4.2 times, up from 2.3 times, indicating better ability to cover interest expenses[20] - Inventory turnover days decreased to approximately 26.5 days in 2023 from 36.0 days in 2022, reflecting efficient inventory management despite revenue growth[46] - Trade receivables increased by approximately RMB 29.7 million to RMB 168.0 million as of December 31, 2023, with turnover days slightly increasing to 103.4 days from 101.5 days in 2022[46] Market and Sales - The demand for decorative paper in China increased by approximately 18.6%, contributing to the overall revenue growth[27] - Revenue from overseas markets grew by approximately 24.5%, with significant demand from Pakistan, India, UAE, and Indonesia[27] - The overall sales of decorative paper increased by approximately 50.3%, while sales of melamine-impregnated paper, paint paper, and PVC furniture film saw declines of approximately 30.6%, 92.3%, and 100.0% respectively[28] - Sales expenses rose by 21.5% to approximately RMB 46.2 million, primarily due to increased salaries and marketing expenses[32] - Administrative expenses increased by 49.3% to approximately RMB 74.3 million, driven by higher salaries and maintenance costs[33] Strategic Plans - The company plans to focus on business expansion and enhance R&D and production technologies to maintain market position and improve shareholder returns[23] - The company plans to enhance its R&D capabilities and optimize its product portfolio to maintain product quality and customer satisfaction[44] - The company is exploring opportunities to expand its presence in the global decorative printing materials market and develop beneficial partnerships[42] Corporate Governance - The company has complied with all relevant laws and regulations during the year, with no significant violations reported[97] - The board consists of three executive directors and three independent non-executive directors, responsible for corporate policy, business strategy, and risk management[135] - The company has not established a corporate governance committee, with the board responsible for governance matters[136] - The board holds meetings quarterly, ensuring all members receive adequate notice and materials for discussion[143] - The board of directors held 4 out of 4 meetings, with all members present except for independent non-executive director Mr. Cao Bingchang, who attended 3 out of 4 meetings[144] Shareholder Information - The company reported a profit for the year, with total reserves available for distribution amounting to approximately RMB 103.9 million as of December 31, 2023, compared to RMB 104.6 million in 2022[95] - The company did not recommend the distribution of a final dividend for the year[86] - The company has a total of 500,000,000 shares issued, with Mr. Sheng holding 322,760,000 shares, representing 64.55% ownership[114] - Bright Commerce, a company controlled by Mr. Sheng, holds 239,950,000 shares, accounting for 47.99% of the total shares[117] Risk Factors - The group's business and financial condition may be adversely affected by the contraction or losses in overseas markets[60] - Fluctuations in raw material prices or unstable supply may negatively impact the group's operations and profitability[60] - The group does not have long-term supply contracts with suppliers, which could adversely affect production costs and timelines if materials are not secured[60] - Failure to maintain the current utilization rate of production facilities may significantly impact the group's profit margins and profitability[60] Environmental and Social Responsibility - The company is committed to environmental sustainability and has established compliance procedures to adhere to applicable laws and regulations[80] - The report period for the environmental, social, and governance report is from January 1, 2023, to December 31, 2023[198] Audit and Compliance - The group's financial statements for the year have been audited by Tianjian International CPA Limited, which was appointed on July 21, 2020[130] - The external auditor received approximately RMB 850,000 for audit services during the year, with no non-audit services provided[173] - The board will continue to regularly review its corporate governance principles to ensure compliance with relevant codes and guidelines[195]

Financial Performance - For the nine months ended September 30, 2023, revenue was approximately RMB 383.3 million, an increase of about 15.4% compared to the same period in 2022[6]. - Gross profit for the period was approximately RMB 94.9 million, representing an increase of about 37.7% from the corresponding period[6]. - Profit attributable to owners of the company was approximately RMB 18.4 million, a significant increase of about 167.3% compared to the same period last year[6]. - Basic earnings per share for the period were approximately RMB 3.67, compared to RMB 1.37 for the corresponding period[6]. - The company reported a net profit of RMB 18,364,000 for the nine months ended September 30, 2023, compared to RMB 6,871,000 for the same period in 2022, marking an increase of 167.5%[56]. - The company reported a basic and diluted earnings per share of RMB 2.29 for the three months ended September 30, 2023, compared to RMB 0.85 in the same period last year[29]. - The total comprehensive income for the three months ended September 30, 2023, was RMB 11,419,000, compared to RMB 3,030,000 in the previous year, reflecting an increase of 276.5%[30]. Revenue Growth - Revenue growth was driven by increased sales in overseas markets, which rose by approximately 17.0%, and strong demand from Chinese customers, which increased by about 14.6%[9]. - The company's revenue for the three months ended September 30, 2023, was RMB 153,872,000, representing a 28.5% increase compared to RMB 119,762,000 for the same period in 2022[29]. - Revenue for the three months ended September 30, 2023, was RMB 153,872,000, an increase of 28.5% compared to RMB 119,762,000 for the same period in 2022[44]. - The company experienced a significant increase in revenue from external customers in China, which rose to RMB 98,114,000 for the three months ended September 30, 2023, up 27% from RMB 77,229,000 in 2022[44]. - The company’s revenue from Pakistan increased by 72.5% to RMB 25,676,000 for the three months ended September 30, 2023, compared to RMB 14,862,000 in the same period of 2022[44]. Cost and Expenses - Administrative expenses increased by approximately RMB 11.9 million or 31.5% to about RMB 49.7 million, primarily due to increased depreciation and maintenance costs[14]. - Financial expenses net increased by approximately RMB 0.7 million or 11.2% to about RMB 7.8 million, mainly due to increased interest expenses from higher bank borrowings[16]. - The gross profit margin improved to approximately 24.7%, up from 20.7% in the corresponding period, due to stable production material prices and effective cost reduction measures[11]. Corporate Governance - The company is committed to high corporate governance standards and has adhered to the GEM Listing Rules throughout the reporting period[76]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the period and found them to comply with applicable accounting standards[79]. - The company has maintained compliance with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by Mr. Sheng[76]. - The company has not reported any violations of trading regulations by its directors during the reporting period[73]. Employee and Shareholder Information - As of September 30, 2023, the company had 375 employees, an increase from 347 employees as of December 31, 2022[22]. - As of September 30, 2023, the company has 500,000,000 shares issued, with Mr. Sheng holding 322,760,000 shares, representing 64.55% ownership[66]. - Mr. Sheng directly owns 82,810,000 shares and has control over an additional 239,950,000 shares held by Bright Commerce, which accounts for 47.99% of the total shares[66]. - The company has confirmed that there are no other interests or short positions held by directors or key executives in the company or its subsidiaries as of September 30, 2023[68]. - There are no interests held by directors or major shareholders in any competing businesses as of September 30, 2023[72]. Strategic Initiatives - The company aims to enhance operational efficiency and product quality through advanced technologies and flexible strategies in production, supply chain, and marketing[26]. - The company is committed to increasing R&D capabilities and optimizing its product portfolio, including new products and materials, to maintain competitiveness and profitability[26]. - The company is exploring opportunities to expand its business footprint in the global decorative printing materials market and develop beneficial partnerships[26]. Dividends and Stock Options - The company did not recommend any dividend payment for the period, consistent with the previous period[6]. - The company has not granted any stock options since the adoption of the stock option plan in June 2017[61]. - The company has not established any arrangements for directors to acquire shares or debt securities during the reporting period[71]. - The company has not disclosed any new product developments or market expansion strategies in the current report[79].

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告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 SHENGLONG SPLENDECOR INTERNATIONAL LIMITED 盛 龍 錦 秀 國 際 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8481） 截 至 二 零 二 三 年 九 月 三 十 日 止 九 個 月 之 第 三 季 度 業 績 公 告 盛龍錦秀國際有限公司（「本公司」連同其附屬公司，為「本集團」）之董事（「董事」） 會（「董事會」）欣然宣佈本集團截至二零二三年九月三十日止九個月之未經審 核簡明綜合業績。本公告載有本公司二零二三年第三季度報告全 文，符合香 港聯合交易所有限公司（「聯交所」）GEM證券上市規則（「GEM上市規則」）有關季 度業績初步公告之資料之相關規定。本公司二零二三年第三季度報告之印刷 版將適時寄發予本公司股東，並可於聯交所網站www.hkexnews.hk及本公司網站 www.splendecor.com閱覽。 承董事會命 ...

Financial Performance - The group's revenue for the six months ended June 30, 2023, was approximately RMB 229.5 million, an increase of about 8.0% compared to the corresponding period[5]. - Revenue from overseas markets increased by approximately 8.5%, driven by demand from Pakistan, India, UAE, and Indonesia[5]. - Gross profit rose to approximately RMB 55.3 million, an increase of about 28.3% from RMB 43.1 million in the corresponding period, with a gross margin of approximately 24.1%[7]. - The operating profit for the six months ended June 30, 2023, increased to RMB 13,248 thousand, compared to RMB 7,450 thousand for the same period in 2022, reflecting an increase of 77.4%[28]. - The net profit attributable to the owners of the company for the six months ended June 30, 2023, was RMB 6,933 thousand, significantly higher than RMB 2,645 thousand for the same period in 2022, marking a growth of 162.5%[28]. - The total comprehensive income for the first half of 2023 was RMB 8,783,000, compared to RMB 1,619,000 in the same period of 2022, marking a substantial increase[33]. - The company reported a profit of RMB 6,933,000 for the first half of 2023, up from RMB 2,645,000 in the same period of the previous year, indicating a year-on-year growth of approximately 162%[33]. Expenses and Costs - Selling expenses decreased by approximately RMB 1.1 million or 6.8% to RMB 15.2 million, primarily due to reduced licensing fees from related product sales[9]. - Administrative expenses increased by approximately RMB 6.3 million or 27.3% to RMB 29.4 million, mainly due to maintenance costs related to new factory renovations[10]. - Other income and gains decreased by approximately RMB 1.2 million or 32.4% to RMB 2.6 million, primarily due to a reduction in government subsidy income[11]. - Net finance costs increased by approximately RMB 1.3 million or 28.4% to RMB 6.0 million, mainly due to increased interest expenses from higher bank borrowings[12]. - The company reported a depreciation and amortization expense of RMB 17,703,000 for the six months ended June 30, 2023, compared to RMB 13,756,000 in 2022, indicating an increase of 28.5%[54]. Assets and Liabilities - The company had a total asset value of RMB 590,641 thousand as of June 30, 2023, compared to RMB 580,956 thousand as of December 31, 2022[31]. - As of June 30, 2023, the total liabilities of Shenglong Jinxi International Limited amounted to RMB 354,703,000, slightly up from RMB 353,801,000 as of December 31, 2022[32]. - The company's total equity increased to RMB 590,641,000 as of June 30, 2023, compared to RMB 580,956,000 at the end of 2022, reflecting a growth of approximately 1.2%[32]. - Long-term bank loans increased to RMB 206,537,000 as of June 30, 2023, from RMB 154,613,000 at the end of 2022, representing a rise of about 33.5%[32]. - The company's current assets minus current liabilities improved to RMB 70,450,000 as of June 30, 2023, compared to a negative net of RMB 3,071,000 at the end of 2022[32]. Cash Flow - The net cash flow from operating activities for the first half of 2023 was RMB 3,709,000, a significant improvement from a cash outflow of RMB 31,352,000 in the same period of 2022[34]. - The net increase in cash and cash equivalents for the first half of 2023 was RMB 17,741,000, compared to a modest increase of RMB 739,000 in the first half of 2022[36]. - Cash flow from financing activities for the first half of 2023 was RMB 17,606,000, compared to RMB 12,733,000 in the same period of 2022, indicating a growth of approximately 38%[34]. Workforce and Development - The group employed 368 staff as of June 30, 2023, an increase from 347 staff as of December 31, 2022, reflecting a focus on workforce development[21]. - The group plans to enhance operational efficiency and product quality control through advanced technology in the second half of 2023[26]. - The company is committed to optimizing its R&D capabilities and product offerings, including new products and materials, to maintain competitiveness and profitability[26]. Corporate Governance - The company confirms compliance with corporate governance standards, except for the separation of the roles of Chairman and CEO, which are held by Mr. Sheng[96]. - The audit committee, consisting of three independent non-executive directors, oversees the financial reporting process and internal controls[97]. - The company has adhered to all corporate governance code provisions during the reporting period, except for the aforementioned role separation[96]. - The audit committee has reviewed the unaudited interim consolidated results, affirming compliance with applicable accounting standards[99]. Shareholder Information - The company has a total of 500,000,000 shares issued, with Mr. Sheng holding 322,760,000 shares, representing 64.55% ownership[88]. - Bright Commerce, fully owned by Mr. Sheng, holds 239,950,000 shares, accounting for 47.99% of the total shares[89]. - The company has not granted any share options since the adoption of the share option scheme in June 2017[84]. - The company did not recommend any interim dividend for the period, consistent with the previous period[75].