香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）對本公告 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 六 月 三 十 日 止 六 個 月 之 中 期 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六月三十日止六個月之未經審核 簡明綜合業績。本公告載有本公司二零二三年中期報告全文，符合聯交所 GEM 證券上市規則（「GEM上市規則」）有關 中期業績初步公告之資料之相關規定。本 公司二零二三年中期報告之印刷版將寄發予本公司股東，並可適時於聯交所 網站www.hkexnews.hk及本公司網站www.splendecor.com閱覽。 承董事會命 盛龍錦秀國際有限公司 ...

Financial Performance - For the three months ended March 31, 2023, revenue was approximately RMB 96.1 million, an increase of about 1.4% compared to the same period in 2022[5] - Gross profit for the same period was approximately RMB 20.0 million, representing an increase of approximately 30.8% from the corresponding period[5] - The loss attributable to the company's owners was approximately RMB 0.6 million, a significant improvement from a loss of approximately RMB 3.8 million in the same period last year[5] - Basic loss per share for the period was approximately RMB 0.13, compared to RMB 0.77 in the corresponding period[5] - Revenue for the first quarter of 2023 was RMB 96,068 thousand, a 1.4% increase from RMB 94,702 thousand in the same period of 2022[25] - Gross profit increased to RMB 20,026 thousand, up 30.5% from RMB 15,313 thousand year-over-year[25] - Operating profit turned positive at RMB 1,961 thousand compared to an operating loss of RMB 2,239 thousand in Q1 2022[25] - Net loss for the period was RMB 640 thousand, significantly improved from a net loss of RMB 3,845 thousand in the previous year[26] - The company reported a total comprehensive loss of RMB 1,682 thousand, compared to RMB 3,937 thousand in Q1 2022[26] - Basic and diluted loss per share improved to RMB 0.13 from RMB 0.77 in the previous year[25] - For the three months ended March 31, 2023, the company reported a loss attributable to owners of the company of RMB 640,000, compared to a loss of RMB 3,845,000 for the same period in 2022, representing a 83.4% improvement in losses year-over-year[46] - The basic and diluted loss per share for the current period was RMB 0.13, significantly improved from RMB 0.77 in the prior year period, indicating a reduction of 83.1%[46] Expenses and Costs - The gross profit margin increased to approximately 20.8% from 16.2% in the same period last year, driven by improved production efficiency[9] - Sales expenses decreased by approximately RMB 0.6 million or 7.6% to approximately RMB 6.5 million due to reduced licensing fees from related products[11] - Administrative expenses increased by approximately RMB 0.9 million or 7.8% to approximately RMB 12.4 million, primarily due to increased depreciation and amortization from office facility upgrades[12] - The company incurred depreciation and amortization expenses of RMB 8,603,000 for the three months ended March 31, 2023, compared to RMB 7,120,000 in the same period of 2022, reflecting an increase of 20.8%[41] - The company reported a total tax expense of RMB 86,000 for the current period, compared to a tax credit of RMB 636,000 in the prior year, indicating a shift from a tax benefit to a tax expense[43] Business Strategy and Operations - The company plans to enhance its R&D capabilities and optimize its product portfolio, colors, patterns, and specifications to improve product quality and customer satisfaction[23] - The company aims to explore opportunities to expand its business presence in the global decorative printing materials market and develop beneficial partnerships for overall business growth[23] - The company continues to focus on manufacturing and selling decorative printing materials, with all revenue generated from product sales in China[36] - The company had no significant investments or acquisitions during the period, maintaining a focus on operational efficiency and product quality control[20] Shareholder Information - As of March 31, 2023, the major shareholder, Mr. Sheng Yingming, holds 322,760,000 shares, representing 64.55% of the total shareholding[53] - Bright Commerce, a controlled entity of Mr. Sheng, holds 239,950,000 shares, accounting for 47.99% of the total shareholding[56] - The weighted average number of ordinary shares issued during the period remained constant at 500,000,000 shares[46] - The company has not granted any share options under its share option scheme since its adoption in June 2017[50] - The company did not recommend any interim dividend for the current period, consistent with the prior year[47] Corporate Governance - The company has adhered to all principles and code provisions of the corporate governance code, except for the separation of the roles of Chairman and CEO, which are currently held by the same individual[63] - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing and supervising the company's financial reporting procedures and internal controls[64] - The unaudited consolidated results for the period have been reviewed by the audit committee, which confirmed that the report was prepared in accordance with applicable accounting standards and regulations[66] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the period[51]

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 三 月 三 十 一 日 止 三 個 月 之 第 一 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三月三十一日止三個月之未經審 核簡明綜合業績。本公告載有本公司二零二三年第一季度報告全文，符合香港 聯合交易所有限公司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一季度報告之印刷版將於適當 時侯寄發予本公司股東，並可於香港聯合交易所有限公司網站www.hkexnews.hk 及本公司網站www.splendecor.com閱覽。 承董事會命 ...

Financial Performance - The total revenue for the year 2022 was RMB 448.8 million, a decrease of 9.3% compared to RMB 494.96 million in 2021[14] - The net profit for the year was RMB 12.1 million, down from RMB 13.6 million in 2021, representing a decrease of approximately 11.3%[14] - The company's revenue for the year was approximately RMB 448.8 million, a decrease of about 9.3% compared to RMB 495.0 million in the previous fiscal year[23] - Gross profit increased by approximately RMB 7.5 million or 8.0% to about RMB 101.9 million, with a gross margin of approximately 22.7%, up from 19.1% in the previous fiscal year[27] - The company recorded a profit attributable to owners of approximately RMB 12.1 million, a decrease of about 11.3% from RMB 13.6 million in the previous fiscal year[35] Asset and Liability Management - Non-current assets increased by 3.9% to RMB 390.7 million, while current assets decreased by 12.6% to RMB 190.3 million[14] - The company experienced a significant increase in non-current liabilities, which rose by 207.1% to RMB 160.5 million[14] - The group's current liabilities were approximately RMB 193.3 million, down 40.6% from RMB 326.3 million in 2021, resulting in a current ratio of 0.98, up from 0.67 in 2021[40] - Total bank borrowings increased by approximately 13.9% to RMB 216.6 million as of December 31, 2022, compared to RMB 190.1 million in 2021, leading to a debt-to-equity ratio of 0.95, up from 0.88 in 2021[41] - The group's net current liabilities as of December 31, 2022, amounted to approximately RMB 31 million, with RMB 62 million and RMB 33 million in current bank borrowings and payables, respectively, due within the next twelve months[176] Operational Efficiency - Trade receivables turnover days increased to 101.5 days, up by 22.6 days from the previous year, indicating slower collection of receivables[14] - Inventory turnover days decreased to approximately 36.0 days from 38.8 days in 2021, with inventory value dropping by 32.3% to RMB 27.6 million[42] - The group employed 347 staff as of December 31, 2022, a decrease from 417 in 2021, with employee costs totaling approximately RMB 63.8 million[46] Revenue Breakdown - Revenue from decorative paper increased by approximately 12.8%, while revenue from melamine-impregnated paper, paint paper, and PVC flooring film decreased by approximately 30.2%, 39.7%, and 29.8% respectively[24] Expenses and Costs - Selling expenses rose by approximately RMB 3.9 million or 11.3% to about RMB 38.1 million, primarily due to increased salaries and marketing expenses[28] - Administrative expenses increased by approximately RMB 10.0 million or 25.3% to about RMB 49.7 million, attributed to maintenance and depreciation costs related to a new factory[29] - Net finance costs rose by approximately RMB 2.2 million or 29.0% to about RMB 9.7 million, driven by increased bank borrowings[33] Corporate Governance - The board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[133] - The company has complied with the GEM Listing Rules and has not established a corporate governance committee, delegating responsibilities to the board[134] - All independent non-executive directors have confirmed their independence, meeting the requirements of GEM Listing Rules[136] - The board is committed to enhancing corporate governance standards and believes it is crucial for maintaining investor confidence and increasing shareholder returns[131] Risk Management - The management discussion and analysis section of the annual report includes a review of the major risks and uncertainties faced by the group, as well as indications of potential future developments[76] - The audit committee noted a significant uncertainty regarding the group's ability to continue as a going concern, as highlighted in the independent auditor's report[178] - The board has conducted an annual review of the effectiveness of the internal control and risk management systems, covering financial, operational, compliance procedures, and risk management functions[187] Future Outlook - The company remains cautiously optimistic about the economic recovery in China, which may lead to increased demand for decorative printing materials[17] - The company aims to enhance R&D capabilities and optimize product offerings while exploring opportunities for market expansion and partnerships to improve profitability[37] Compliance and Regulations - The company complied with all relevant laws and regulations during the year, with no significant violations reported[94] - The company has established compliance procedures to ensure adherence to applicable environmental laws and regulations[77] Shareholder Information - The company did not recommend the distribution of a final dividend for the year[84] - The company has established a dividend policy to balance shareholder expectations with prudent capital management, with the dividend payout ratio determined by the board[165]

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2022年12月31日 止 年 度 之 年 度 業 績 公 告 盛龍錦秀國際有限公司（「本公司」連同其附屬公司統稱為「本集團」）之董事（「董 事」）會（「董 事 會」）欣 然 宣 佈 本 集 團 截 至2022年12月31日 止 年 度 之 經 審 核 簡 明 綜 合 業 績。本 公 告 載 有 本 公 司2022年 年 度 報 告 全 文，符 合 香 港 聯 合 交 易 所 有 限公司GEM證券上市規則（「GEM上市規則」）有關年度業績初步公告附載資料 之 相 關 規 定。本 公 司2022年 年 度 報 告 之 印 刷 版 將 寄 發 予 本 公 司 股 東，並 可 於 2023年3月29日或之前於香港聯合交易 ...

Financial Performance - For the nine months ended September 30, 2022, the revenue was approximately RMB 332.2 million, a decrease of about 11.2% compared to the corresponding period in 2021[6]. - The gross profit for the same period was approximately RMB 68.9 million, down about 5.8% from the previous year[6]. - The profit attributable to the owners of the company was approximately RMB 6.9 million, a decrease of approximately 40.8% compared to the corresponding period[6]. - The basic earnings per share for the period were approximately RMB 1.37, compared to RMB 2.32 in the corresponding period[6]. - The group recorded a revenue decline of 11.2% during the period, resulting in a minimal profit attributable to the company's owners[24]. - For the three months ended September 30, 2022, the group reported revenue of RMB 119,762 thousand, compared to RMB 123,304 thousand in the same period of 2021, reflecting a decrease of approximately 3.9%[26]. - The gross profit for the nine months ended September 30, 2022, was RMB 68,879 thousand, down from RMB 73,142 thousand in the previous year, indicating a decline of about 5.2%[26]. - Operating profit for the three months ended September 30, 2022, was RMB 6,774 thousand, significantly higher than RMB 3,103 thousand in the same period of 2021, representing an increase of approximately 118%[26]. - The net profit attributable to the company's owners for the nine months ended September 30, 2022, was RMB 6,871 thousand, down from RMB 11,605 thousand in the previous year, a decrease of about 40.3%[29]. - The total comprehensive income for the three months ended September 30, 2022, was RMB 3,030 thousand, compared to RMB 1,756 thousand in the same period of 2021, an increase of approximately 72.5%[29]. - Basic earnings per share for the three months ended September 30, 2022, was RMB 0.85, up from RMB 0.39 in the same period last year[56]. Revenue Sources - Revenue from overseas markets decreased by approximately 16.4%, primarily due to reduced demand in Pakistan, India, and other overseas markets[9]. - Revenue from domestic customers in China slightly decreased by about 8.2%, despite maintaining strong demand[9]. - Revenue from China was RMB 77,229,000, down 10% from RMB 85,856,000 year-on-year[43]. - Revenue from Pakistan increased by 18% to RMB 14,862,000 compared to RMB 12,633,000 in the same period last year[43]. Cost and Expenses - The cost of sales decreased by approximately RMB 37.5 million or about 12.5% to approximately RMB 263.3 million, mainly due to reduced production volume[10]. - Financial expenses increased by approximately RMB 1.8 million or 33.7% to approximately RMB 7.1 million, primarily due to increased interest expenses from higher bank borrowings[17]. - Other income and gains increased significantly by approximately RMB 4.0 million or 184.6% to approximately RMB 6.1 million, mainly due to foreign exchange gains[16]. - Other income for the three months ended September 30, 2022, was RMB 2,322,000, compared to RMB 1,743,000 in the same period last year[45]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[76]. - The company confirms compliance with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by Mr. Sheng[75]. - The unaudited consolidated results for the period have been reviewed by the audit committee and deemed to comply with applicable accounting standards[79]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance company value[75]. Shareholder Information - As of September 30, 2022, Mr. Sheng holds 322,760,000 shares, representing 64.55% of the company's ordinary shares[63]. - Bright Commerce, a company wholly owned by Mr. Sheng, holds 239,950,000 shares, accounting for 47.99% of the total[67]. - The total number of issued shares as of September 30, 2022, is 500,000,000[64]. - No other directors or key executives hold any shares or related securities that require disclosure under the Securities and Futures Ordinance[66]. - The company has not issued any share options since adopting the share option plan in June 2017[59]. - No arrangements have been made for directors to acquire shares or securities of the company during the reporting period[72]. - The company has not identified any interests held by directors or major shareholders in competing businesses[72]. Future Outlook - The company plans to closely monitor product pricing and costs to maximize profit margins and maintain profitability amid challenging global economic conditions[24]. - The management remains optimistic about exploring new markets and seizing emerging opportunities in the decorative printing materials industry[24]. - The group will continue to focus on sustainable development strategies in China while monitoring potential developments in overseas markets[24].

Financial Performance - The group's revenue for the six months ended June 30, 2022, was approximately RMB 212.4 million, a decrease of about 15.3% compared to the corresponding period[6] - Revenue from overseas markets decreased by approximately 27.8%, primarily due to reduced demand in Pakistan, India, and other overseas markets[6] - The gross profit decreased by approximately RMB 10.3 million or 19.2% to about RMB 43.1 million, with a gross margin of approximately 20.3% compared to 21.3% in the corresponding period[10] - The group recorded a profit attributable to the owners of the company of approximately RMB 2.6 million, down from RMB 9.7 million in the corresponding period[16] - The group recorded a revenue decline of 15.3% during the period, resulting in a slight profit attributable to the owners of the company[29] - The group reported a net profit of RMB 2.645 million for the six months ended June 30, 2022, compared to RMB 9.659 million for the same period in 2021[31] - The basic and diluted earnings per share attributable to the owners of the company for the six months ended June 30, 2022, were RMB 0.53, down from RMB 1.93 for the same period in 2021[31] - For the six months ended June 30, 2022, the profit was RMB 2,645,000, down from RMB 9,659,000 in the same period of 2021, indicating a decline of approximately 72.6%[33] - Total comprehensive income for the three months ended June 30, 2022, was RMB 5,556,000, compared to RMB 6,531,000 in the prior year, a decrease of about 14.9%[33] Expenses and Costs - The group's net financial expenses increased by approximately RMB 1.4 million or 40.5% to about RMB 4.7 million, mainly due to increased interest expenses from bank borrowings[14] - Sales costs decreased by approximately RMB 28.0 million or 14.2% to about RMB 169.3 million, consistent with the decrease in revenue[7] - Administrative expenses increased by approximately RMB 1.3 million or 6.2% to about RMB 23.1 million, primarily due to increased depreciation and amortization expenses after the completion of new factory construction[12] - The group recorded a depreciation and amortization expense of RMB 13.8 million for the six months ended June 30, 2022, compared to RMB 9.0 million for the same period in 2021[71] Assets and Liabilities - As of June 30, 2022, the group's current assets were approximately RMB 176.0 million, a decrease from RMB 217.8 million as of December 31, 2021[17] - The total current liabilities as of June 30, 2022, were approximately RMB 287.9 million, down from RMB 326.3 million as of December 31, 2021[17] - The current ratio as of June 30, 2022, was approximately 0.61, down from 0.67 as of December 31, 2021, primarily due to a decrease in financial assets and restricted bank deposits[17] - The total bank borrowings as of June 30, 2022, were approximately RMB 207.5 million, an increase of about 9.2% from RMB 190.1 million as of December 31, 2021[17] - The debt-to-equity ratio as of June 30, 2022, was approximately 0.96, up from 0.88 as of December 31, 2021, mainly due to an increase in short-term bank borrowings[17] - The total assets as of June 30, 2022, amounted to RMB 554,905,000, down from RMB 593,945,000 as of December 31, 2021, reflecting a reduction of approximately 6.6%[35] - The total liabilities as of June 30, 2022, were RMB 337,897,000, compared to RMB 378,556,000 at the end of 2021, indicating a decrease of about 10.7%[37] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2022, was RMB (31,352,000), compared to RMB (2,345,000) in the same period of 2021, indicating a significant increase in cash outflow[43] - The company reported a net cash inflow from investing activities of RMB 19,358,000 for the six months ended June 30, 2022, compared to a net cash outflow of RMB (23,303,000) in the prior year[43] - Cash and cash equivalents at the end of June 30, 2022, were RMB 13,677,000, an increase from RMB 9,322,000 at the end of June 30, 2021, representing a growth of approximately 46.5%[45] Customer and Market Insights - The demand from Chinese customers remained strong but slightly decreased by about 7.1% compared to the corresponding period[6] - The group served over 500 customers in domestic and overseas markets, with sales spanning over 40 countries[5] - Revenue from China for the six months ended June 30, 2022, was RMB 141.6 million, down 7.1% from RMB 152.4 million in the same period last year[66] Future Outlook and Plans - The group plans to continue exploring new markets and seizing emerging business opportunities in the decorative paper industry[29] - The group expects to secure sufficient sales orders in the coming months to enhance its working capital position[53] - The group anticipates continued access to bank financing and successful refinancing of bank loans due[53] - The group has not experienced any significant difficulties in renewing existing bank borrowings[52] - The company plans to expand its operations outside of China in the foreseeable future[76] Shareholder and Governance Information - Major shareholders include Bright Commerce with a beneficial interest of 239,950,000 shares, representing 47.99% of the total shares[114] - As of June 30, 2022, the total number of shares issued was 500,000,000, with the percentage calculations based on this figure[111] - The company has confirmed compliance with the GEM Listing Rules and has not encountered any violations during the reporting period[120] - The company has adhered to the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual, Mr. Sheng[122] - The Audit Committee, consisting of three independent non-executive directors, has been established to review and supervise the company's financial reporting procedures[123] - The unaudited interim consolidated results for the period have been reviewed by the Audit Committee, which believes the report complies with applicable accounting standards[126]

Financial Performance - For the three months ended March 31, 2022, the revenue was approximately RMB 94.7 million, a decrease of about 5.3% compared to the same period in 2021[5] - The gross profit for the same period was approximately RMB 15.3 million, down approximately 27.9% from RMB 21.2 million in the corresponding period[10] - The loss attributable to the company's owners was approximately RMB 3.8 million, compared to a profit of approximately RMB 3.1 million in the corresponding period[18] - The basic loss per share for the period was approximately RMB 0.77, while the basic earnings per share for the corresponding period was approximately RMB 0.61[5] - The company recorded a slight revenue decline of 5.3% for the period, resulting in a loss attributable to shareholders[23] - Revenue for the three months ended March 31, 2022, was RMB 94,702 thousand, compared to RMB 99,965 thousand for the same period in 2021, indicating a decrease of approximately 5.3%[25] - The company reported a net loss of RMB 3,845 thousand for the current period, compared to a profit of RMB 3,062 thousand in the same period last year[27] - The total comprehensive loss for the period was RMB (3,937) thousand, compared to a total comprehensive income of RMB 2,872 thousand in the previous year[27] - Basic and diluted loss per share was RMB (0.77), compared to earnings of RMB 0.61 per share in the previous year[52] - Total revenue for the period was RMB 94,702,000, a decrease of 5% compared to RMB 99,965,000 in the same period last year[41] Expenses and Costs - The sales expenses increased by approximately RMB 0.4 million or 6.3% to approximately RMB 7.0 million due to higher salaries and benefits for sales staff[13] - Administrative expenses rose by approximately RMB 1.3 million or 12.5% to approximately RMB 11.5 million, primarily due to increased depreciation and amortization expenses from the new factory completed in 2021[14] - Financial expenses increased by approximately RMB 0.5 million or 31.5% to approximately RMB 2.2 million, primarily due to increased interest expenses from higher bank borrowings[16] - The increase in production costs was attributed to rising prices of key raw materials, increased depreciation and amortization expenses from new plant construction, and higher financing costs due to increased bank borrowings[23] - The depreciation and amortization expenses increased to RMB 7,120,000 from RMB 4,148,000, reflecting a rise of 72% year-on-year[45] Income and Gains - Other income and net other gains increased by approximately RMB 0.1 million or 5.2% to approximately RMB 1.0 million, mainly due to increased government subsidy income offset by foreign exchange losses[15] - The net financial expenses for the period were RMB 2,242 thousand, compared to RMB 1,705 thousand in the previous year, reflecting an increase in financing costs[25] - Other income and gains totaled RMB 996,000, slightly up from RMB 947,000 in the previous year[44] Market and Strategic Outlook - The company aims to closely monitor product pricing and costs to maximize profit margins and maintain profitability[23] - The management remains optimistic about capturing a larger market share in the decorative printing materials industry, focusing on sustainable development strategies in China and potential overseas markets[23] - The company will continue to explore new markets and seize emerging business opportunities[23] Corporate Governance and Structure - The company confirms compliance with corporate governance codes, except for the separation of the roles of Chairman and CEO[70] - The audit committee consists of three independent non-executive directors, responsible for reviewing financial reporting and internal controls[71] - The unaudited consolidated results for the period have been reviewed by the audit committee[74] Shareholding and Ownership - Bright Commerce holds 239,950,000 shares, representing 47.99% ownership[63] - Mr. Sheng holds 279,440,000 shares, representing 55.89% ownership[63] - Ms. Chen holds 279,440,000 shares as spouse, representing 55.89% ownership[63] - The weighted average number of ordinary shares issued during the period was 500,000,000[52] - The company has not engaged in any share buybacks or repurchases during the period[56] - The company has not established any arrangements for directors to acquire shares or debentures during the reporting period[67] Employment and Investments - The company had 413 employees as of March 31, 2022, a slight decrease from 417 employees as of December 31, 2021[20] - There were no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the period[20] - The effective corporate tax rate for the group entities in China is 25%, while a subsidiary enjoys a preferential rate of 15% due to high-tech enterprise certification[48] - The company did not recommend any interim dividend for the period, consistent with the previous year[53]

Financial Performance - The company's total revenue for the year reached RMB 494.96 million, representing a significant increase of 34.2% compared to RMB 368.91 million in the previous year[8]. - Profit before tax increased by 50.9% to RMB 14.66 million from RMB 9.71 million year-on-year[8]. - Net profit attributable to the owners of the company rose by 46.6% to RMB 13.60 million, up from RMB 9.27 million in the previous year[8]. - Basic and diluted earnings per share increased to RMB 2.72, an increase of RMB 0.87 from RMB 1.85[8]. - The total equity increased by 6.9% to RMB 215.39 million, indicating a stable financial position[8]. - Revenue from the Chinese market increased by approximately 35.0%, driven by strong demand from customers[23]. - Overseas market revenue grew by approximately 32.5%, as major overseas markets gradually recovered from the adverse effects of COVID-19[23]. - The sales of decorative paper, melamine-impregnated paper, and paint paper increased by approximately 39.7%, 39.9%, and 19.1% respectively[24]. - Gross profit increased by approximately RMB 10.2 million or 12.2% to about RMB 94.4 million, with a gross margin of approximately 19.1%, down from 22.8% in the previous year[27]. Cost and Asset Management - The cost of sales increased by approximately RMB 115.8 million or 40.7% to about RMB 400.6 million, mainly due to rising material prices and increased production volume[26]. - Non-current assets grew by 24.6% to RMB 376.16 million, while current assets increased by 9.4% to RMB 217.78 million[8]. - The group has approximately RMB 217.8 million in current assets as of December 31, 2021, an increase from RMB 199.1 million in 2020, while current liabilities rose to RMB 326.3 million from RMB 203.7 million, resulting in a current ratio of 0.67, down from 0.98 in 2020[42]. - The total bank borrowings of the group amounted to approximately RMB 190.1 million, a 36.8% increase from RMB 139.0 million in 2020, leading to a debt-to-equity ratio of 0.88 compared to 0.69 in the previous year[43]. - Inventory turnover days decreased to approximately 38.8 days from 58.6 days in 2020, with inventory value dropping by 8.2% to approximately RMB 40.8 million[44]. - Trade receivables increased by approximately RMB 8.9 million to RMB 111.4 million, with turnover days reduced to 78.9 days from 96.8 days in 2020 due to strict credit control[44]. Operational Developments - The construction of a new factory, including a main office building and fully equipped staff dormitories, has been completed, enhancing management and production processes[16]. - The relocation to the new facility is expected to optimize management and production processes, improving product quality and operational efficiency[16]. - The company plans to continue focusing on business expansion and upgrading R&D and production technologies to enhance shareholder returns[23]. - The company has invested significant resources in overseas markets, achieving notable business growth during the year[38]. - The company aims to enhance production efficiency and capacity through upgraded and automated facilities, focusing on sustainable strategies in the domestic and overseas markets[39]. - The group is actively negotiating with banks to ensure the renewal of short-term borrowings, with RMB 66.5 million due in mid-2022[184]. - The company is implementing key plans to improve liquidity and cash flow to maintain ongoing operations[184]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors, responsible for corporate policy, business strategy, and risk management[147]. - The company has not established a corporate governance committee, with the board responsible for corporate governance tasks[148]. - All independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules[150]. - The company encourages continuous professional development for all directors to enhance their knowledge and skills related to corporate governance[153]. - The board meets quarterly, ensuring all members receive adequate notice and materials for discussion[156]. - The company held 4 out of 4 board meetings and 1 out of 1 shareholder meetings attended by Mr. Sheng, Mr. Fang, and Mr. Ma, while independent non-executive directors Mr. Cao and Ms. Huang did not attend the shareholder meeting due to scheduling conflicts[157]. - The remuneration committee held one meeting during the year, with all members attending, and assessed the performance of executive directors, finding existing employment contracts to be fair and reasonable[162]. - The nomination committee was established on June 22, 2017, and held one meeting during the year, focusing on the selection and recommendation of director candidates based on qualifications and market conditions[163]. - The company has adopted a nomination policy that outlines the selection criteria and procedures for director candidates, considering factors such as character, qualifications, and commitment[166]. - The board is committed to maintaining ongoing dialogue with shareholders, particularly through annual general meetings to address shareholder inquiries and gather feedback[158]. - The company ensures that all board members have access to necessary resources and can seek external professional advice when needed[158]. - The company emphasizes the importance of good corporate governance for maintaining investor confidence and sustainable development[187]. Compliance and Risk Management - The company has complied with all relevant laws and regulations during the year, with no significant violations reported[104]. - The company has taken measures to monitor and assess transaction risks related to sanctioned countries and individuals[195]. - The board is responsible for maintaining the effectiveness of the internal control and risk management systems, which aim to manage risks rather than eliminate them[187]. - The company has implemented internal control procedures to protect assets from unauthorized use and ensure the reliability of financial information[188]. - The board has reviewed the effectiveness of the internal control and risk management systems, covering financial, operational, compliance, and risk management functions[194]. - The company has no immediate need to establish an internal audit function due to the current scale and complexity of its operations[187]. - The audit committee held four meetings during the year, with all members attending all meetings[176]. - The audit committee reviewed the group's financial statements, confirming compliance with applicable accounting standards[176]. Shareholder Information - The company reported a profit for the year, with total reserves available for distribution amounting to approximately RMB 102.7 million as of December 31, 2021, compared to RMB 104.7 million in 2020[100]. - The company did not recommend the distribution of a final dividend for the year[93]. - The company has adopted a dividend policy aimed at balancing shareholder expectations with prudent capital management, with the dividend payout ratio determined by the board[174]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within two months[200]. - The company has confirmed that at least 25% of its issued shares are held by the public[135]. Employee and Management Information - The group has 417 employees as of December 31, 2021, with employee costs totaling approximately RMB 62.4 million, an increase from RMB 46.6 million in 2020[48]. - The company has a competitive compensation policy to attract and retain talented employees, with regular reviews of compensation packages[112]. - The management team includes experienced professionals, with over 20 years of experience in financial and accounting management[80].

Financial Performance - For the nine months ended September 30, 2021, revenue was approximately RMB 374.0 million, an increase of about 52.7% compared to the corresponding period in 2020[5]. - Gross profit for the same period was approximately RMB 73.1 million, representing an increase of about 30.8%[5]. - Profit attributable to owners of the company was approximately RMB 11.6 million, a significant increase of about 102.0% compared to the corresponding period[5]. - Revenue from the Chinese market increased by approximately 49.2%, while overseas market revenue grew by about 59.3%[8]. - The group's revenue for the three months ended September 30, 2021, was RMB 123,304 thousand, compared to RMB 104,824 thousand for the same period in 2020, representing a year-over-year increase of 17.5%[29]. - The gross profit for the nine months ended September 30, 2021, was RMB 73,142 thousand, up from RMB 55,898 thousand in the same period of 2020, indicating a growth of 30.7%[29]. - Total revenue for the third quarter of 2021 was RMB 123.3 million, an increase of 17.6% compared to RMB 104.8 million in the same period of 2020[49]. - Revenue from China was RMB 85.9 million for the quarter, representing a 14.3% increase from RMB 74.7 million year-over-year[49]. Costs and Expenses - Sales costs rose by approximately RMB 111.8 million or about 59.2% to RMB 300.8 million, primarily due to increased material prices and production volume[9]. - The gross profit margin decreased to approximately 19.6% from 22.8% in the corresponding period due to rising production costs[10]. - Selling expenses increased by approximately RMB 10.1 million or 71.2% to RMB 24.3 million, mainly due to higher transportation, travel, marketing, and commission costs[13]. - Administrative expenses rose by approximately RMB 2.3 million or 7.6% to RMB 32.8 million, primarily due to increased R&D costs for new product development[14]. Other Income and Gains - Other income and gains increased by approximately RMB 2.0 million or 4,876.7%, mainly due to higher rental income and government subsidies[15]. - Other income, including sales of waste materials and rental income, totaled RMB 1.74 million, compared to a loss of RMB 0.73 million in the same period last year[51]. - The company experienced a significant increase in government grant income, which rose to RMB 727,000 from RMB 103,000 year-over-year[51]. Profitability and Earnings - The operating profit for the three months ended September 30, 2021, was RMB 3,103 thousand, down from RMB 5,587 thousand in the same period of 2020, reflecting a decrease of 44.5%[29]. - The company reported a net profit of RMB 1,946 thousand for the three months ended September 30, 2021, compared to RMB 2,384 thousand in the same period of 2020, a decline of 18.4%[29]. - The company reported a net profit attributable to owners of RMB 1.95 million for the quarter, down 18.4% from RMB 2.38 million in the same period last year[62]. - Basic and diluted earnings per share for the quarter were RMB 0.39, compared to RMB 0.48 in the same quarter of 2020[62]. - The total comprehensive income attributable to the owners of the company for the nine months ended September 30, 2021, was RMB 11,503 thousand, compared to RMB 5,592 thousand in the same period of 2020, an increase of 105.4%[31]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[85]. - The audit committee reviewed the unaudited consolidated results for the period and confirmed compliance with applicable accounting standards[85]. - The company is committed to high corporate governance standards to protect shareholder interests and enhance company value[81]. - No arrangements were made for directors to acquire shares or debt securities during the reporting period[77]. - There were no reported interests or stakes in competing businesses by directors or major shareholders as of September 30, 2021[78]. - The company has adhered to the GEM Listing Rules and corporate governance code throughout the reporting period[81]. - Mr. Sheng serves as both the CEO and Chairman, which the board believes is beneficial for the company and shareholders[82]. Strategic Focus - The company aims to continue executing its business plan to achieve annual sales growth targets[27]. - The group will focus on sustainable strategic customers and growth in the domestic Chinese market[27]. - The group plans to enhance production efficiency and resource management to mitigate adverse operational impacts from government policies[27]. - The company will continue to explore new markets and seize emerging opportunities[27]. Shareholding Structure - As of September 30, 2021, the company had a total of 500,000,000 shares issued, with Mr. Sheng holding 259,440,000 shares, representing 51.89% ownership[70]. - Bright Commerce, a controlled entity by Mr. Sheng, holds 239,950,000 shares, accounting for 47.99% of the total shares[73]. - Mr. Chen holds 30,000,000 shares, which is 6.00% of the total shares[73]. Accounting and Taxation - The company has adopted new accounting standards that did not have a significant impact on its financial policies or require retrospective adjustments[44]. - The company’s effective tax rate for the period was influenced by a deferred tax income of RMB 788,000, compared to RMB 144,000 in the same period last year[57].