Revenue Growth - The company's revenue for the six months ended June 30, 2021, was approximately RMB 250.7 million, representing a significant increase of about 78.9% compared to the corresponding period in 2020[7]. - Revenue from the Chinese market increased by approximately 79.2%, driven by strong demand from customers[7]. - Overseas market revenue also grew by approximately 78.5%, as major overseas markets began to recover from the adverse effects of COVID-19[7]. - For the six months ended June 30, 2021, the group achieved a revenue of RMB 250.7 million, compared to RMB 140.1 million for the same period in 2020, representing an increase of 78.9%[33]. - Revenue from external customers for the six months ended June 30, 2021, was RMB 250.7 million, a 78.9% increase from RMB 140.1 million in the same period of 2020[67]. - Revenue from China for the six months ended June 30, 2021, was RMB 152.4 million, up 79.0% from RMB 85.1 million in the same period of 2020[67]. Profitability - Gross profit increased to approximately RMB 53.4 million, a rise of about 73.6% from approximately RMB 30.7 million in the corresponding period[11]. - The group’s gross profit for the six months ended June 30, 2021, was RMB 53.4 million, up from RMB 30.7 million in the previous year, indicating a growth of 74.0%[33]. - The operating profit for the six months ended June 30, 2021, was RMB 15.1 million, compared to RMB 5.6 million in the same period of 2020, reflecting an increase of 168.4%[33]. - The company recorded a profit attributable to owners of approximately RMB 9.7 million, compared to RMB 3.4 million in the corresponding period[18]. - The company's net profit attributable to shareholders for the six months ended June 30, 2021, was RMB 9,659,000, compared to RMB 3,362,000 for the same period in 2020, representing an increase of 187.5%[82]. - The basic and diluted earnings per share for the six months ended June 30, 2021, were RMB 1.93, up from RMB 0.67 in the same period of 2020, reflecting a growth of 187.3%[82]. Expenses - Selling expenses rose by approximately 112.2% to about RMB 17.0 million, primarily due to increased transportation, travel, and marketing costs[12]. - Administrative expenses increased by approximately 21.7% to about RMB 21.8 million, mainly due to higher R&D costs for new product development[13]. - The net financial expenses increased by approximately 119.5% to about RMB 3.3 million, attributed to increased bank borrowings and reduced capitalized borrowing costs[16]. Financial Position - The current ratio as of June 30, 2021, was approximately 0.87, down from 0.98 as of December 31, 2020, primarily due to increased bank borrowings[19]. - As of June 30, 2021, total assets increased to RMB 544,238 thousand, up from RMB 501,051 thousand as of December 31, 2020, representing an increase of approximately 8.6%[39]. - Total liabilities increased to RMB 333,094 thousand, up from RMB 299,654 thousand, marking an increase of approximately 11.1%[39]. - The company's equity attributable to owners increased to RMB 211,144 thousand, compared to RMB 201,397 thousand, showing a growth of about 4.0%[41]. - Cash and cash equivalents decreased to RMB 9,322 thousand from RMB 14,839 thousand, a decline of approximately 37.5%[44]. - The group has no significant contingent liabilities as of June 30, 2021, maintaining a stable financial position[27]. Inventory and Receivables - Inventory rose significantly to RMB 60,792 thousand, an increase of 37% from RMB 44,415 thousand in the previous year[39]. - Trade receivables as of June 30, 2021, amounted to RMB 120,122,000, an increase from RMB 103,892,000 as of December 31, 2020, which is a rise of 15.5%[86]. - The total inventory as of June 30, 2021, was RMB 60,792,000, compared to RMB 44,415,000 as of December 31, 2020, indicating a 37% increase[85]. Cash Flow - Operating cash flow for the six months ended June 30, 2021, was a net outflow of RMB 2,345 thousand, compared to an inflow of RMB 11,176 thousand in the previous year[44]. - The company reported a net cash outflow from investing activities of RMB 23,303 thousand, compared to RMB 18,303 thousand in the previous year[44]. - Financing activities generated a net cash inflow of RMB 20,103 thousand, an increase from RMB 15,965 thousand in the previous year[44]. - The group anticipates generating positive operating cash flow in the future due to expected sales orders[54]. Capital Expenditure - The group’s capital expenditure commitments for property, plant, and equipment were approximately RMB 23.4 million as of June 30, 2021, down from RMB 37.8 million at the end of 2020[24]. - The company’s property, plant, and equipment additions during the period were approximately RMB 16,530,000, compared to RMB 11,923,000 in the corresponding period of 2020, marking an increase of 38.8%[83]. - Capital commitments for property, plant, and equipment were RMB 23,360,000 as of June 30, 2021, down 38.3% from RMB 37,843,000 as of December 31, 2020[98]. Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[123]. - The company has adhered to the corporate governance code, except for the deviation regarding the separation of the roles of Chairman and CEO[122]. - The company is committed to high standards of corporate governance to protect shareholder interests and enhance company value[122]. - The audit committee's main responsibilities include reviewing and supervising the company's financial reporting procedures[123]. Shareholder Information - Major shareholders include Mr. Sheng with a 51.89% stake, and Bright Commerce holding 47.99%[114]. - The company has maintained a consistent number of issued ordinary shares at 500,000,000 since December 31, 2020[90]. - The company reported no interim dividend for the six months ended June 30, 2021, consistent with the previous period[97].

Financial Performance - For the three months ended March 31, 2021, the revenue was approximately RMB 100.0 million, an increase of about 64.3% compared to the corresponding period last year[4] - Gross profit for the same period was approximately RMB 21.2 million, representing an increase of about 74.5% from the previous year[4] - Profit attributable to owners of the company was approximately RMB 3.1 million, a significant increase of about 287.1% compared to the corresponding period[4] - The operating profit increased significantly to RMB 5,325 thousand from RMB 1,751 thousand year-over-year, reflecting a rise of approximately 203.4%[27] - Net profit for the period was RMB 3,062 thousand, compared to RMB 791 thousand in the previous year, marking an increase of around 287.4%[29] - The total comprehensive income for the period was RMB 2,872 thousand, compared to RMB 945 thousand in the same period last year, an increase of about 204.4%[29] - Basic and diluted earnings per share were RMB 0.61, up from RMB 0.16 in the same quarter of the previous year[52] Revenue Breakdown - Revenue from the Chinese market increased significantly by approximately 94.1% compared to the same period last year, while overseas market revenue grew by approximately 34.6%[7] - Revenue from Chinese customers saw a substantial increase of approximately 94.1% during the period[24] - Total revenue for the first quarter of 2021 reached RMB 99,965,000, a 64.3% increase compared to RMB 60,860,000 in the same period of 2020[42] - Revenue from China accounted for RMB 58,892,000, representing a 93.9% increase from RMB 30,347,000 year-over-year[42] Expenses and Costs - Selling expenses rose by approximately RMB 3.0 million or 81.5% to RMB 6.6 million, mainly due to increased transportation, travel, and marketing costs[12] - Administrative expenses increased by approximately RMB 2.5 million or 33.4% to RMB 10.2 million, primarily due to higher R&D costs for new product development[13] - Financial expenses net increased by approximately RMB 1.0 million or 143.2% to RMB 1.7 million, mainly due to increased interest expenses from bank borrowings[15] - The company reported a total tax expense of RMB 558,000, compared to RMB 259,000 in the prior year, reflecting an increase in taxable income[47] Operational Developments - The company is engaged in the construction of new facilities with a total contract value of RMB 54 million, with 80% of the project completed[20] - The company plans to enhance production technology and increase capacity and flexibility to support business expansion[24] - The company is focusing on expanding its marketing and sales teams globally to achieve annual sales growth targets[25] - The company will closely monitor product pricing and costs to improve profit margins amid rising material prices[24] Corporate Governance - The company has confirmed compliance with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are currently held by Mr. Sheng[70] - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing the company's financial reporting processes and internal controls[71] - The unaudited consolidated results for the period have been reviewed by the audit committee and deemed to comply with applicable accounting standards[74] Shareholding Structure - The company’s major shareholder, Mr. Sheng, holds 51.89% of the shares, amounting to 259,440,000 shares[59] - As of March 31, 2021, Bright Commerce holds 239,950,000 shares, representing 47.99% of the equity[62] - Mr. Sheng holds 259,440,000 shares, accounting for 51.89% of the equity, and is also the beneficial owner of shares held by his controlled entities[62] - Ms. Chan holds 259,440,000 shares through her spouse, Mr. Sheng, representing 51.89% of the equity[63] - Mr. Chan holds 30,000,000 shares, which is 6.00% of the equity, and his spouse, Ms. Tay, also holds 30,000,000 shares[62] Employee Information - The company had 426 employees as of March 31, 2021, compared to 403 employees at the end of December 2020[19] Other Income - Other income, including sales of scrap and residual materials, totaled RMB 947,000, slightly up from RMB 900,000 in the previous year[44] - The company did not recommend any interim dividend for the period, consistent with the previous year[53] - The company has not issued any stock options since the adoption of the share option scheme in June 2017[55]

Financial Performance - Revenue for the year 2020 was RMB 368.914 million, representing a 6.2% increase from RMB 347.267 million in 2019[8] - Profit before tax decreased by 56.6% to RMB 9.710 million from RMB 22.356 million in the previous year[8] - Profit attributable to owners of the company fell by 51.8% to RMB 9.272 million compared to RMB 19.241 million in 2019[8] - Basic and diluted earnings per share decreased to RMB 1.85, down by 2.0 cents from RMB 3.85[8] - Gross margin decreased to 22.8%, down from 24.6% in the previous year[8] - Net profit margin decreased to 2.5%, down from 5.5% in 2019[8] - Net profit decreased significantly by approximately RMB 10.0 million or 51.8%, from about RMB 19.2 million in 2019 to approximately RMB 9.3 million in the current year[24] - Gross profit decreased by approximately RMB 1.3 million to about RMB 84.1 million, with a gross margin of approximately 22.8%, down from 24.6% in 2019[28] Assets and Liabilities - Non-current assets increased by 14.7% to RMB 301.943 million from RMB 263.167 million[8] - Current liabilities decreased by 17.9% to RMB 203.676 million from RMB 247.976 million[8] - Total equity increased by 5.0% to RMB 201.397 million from RMB 191.891 million[8] - As of December 31, 2020, the group's current assets were approximately RMB 199.1 million, while current liabilities were approximately RMB 203.7 million, resulting in a current ratio of about 0.98[42] - The total bank borrowings amounted to approximately RMB 139.0 million, an increase of about 17.5% from RMB 118.3 million in 2019, leading to a debt-to-equity ratio of approximately 0.69[43] - As of December 31, 2020, the group's net current liabilities amounted to approximately RMB 46 million, with bank borrowings and bills payable due within the next twelve months[177] Expenses - Sales expenses increased by approximately RMB 2.9 million or 12.6%, totaling about RMB 25.9 million, primarily due to increased marketing and exhibition expenses[29] - Administrative expenses rose by approximately RMB 4.1 million or 10.7%, reaching about RMB 42.7 million, mainly due to increased R&D costs for new product development[30] - The financial cost increased by approximately RMB 4.5 million or 215.0%, totaling about RMB 6.6 million, mainly due to increased bank borrowings for business expansion[35] Operational Developments - The company purchased an office property in Hangzhou to support future expansion in the sales of decorative printing materials[18] - A new factory, including a main office building and fully equipped staff dormitory, is expected to be completed around mid-2021, aimed at optimizing management and production processes[18] - The company plans to continue focusing on business expansion and improving production technology to explore new markets, especially overseas[20] - The group invested more resources in new product development and improved production efficiency, which contributed to a solid foundation for business expansion[39] Market and Industry Conditions - The demand for decorative paper has significantly increased, particularly in China, contributing to stable growth in the decorative paper industry[20] - The group faces risks including potential impacts from overseas market shrinkage and reliance on sales agents for customer engagement, which could adversely affect revenue and brand recognition[57] - Fluctuations in raw material prices or unstable supply could negatively impact operations and profitability[58] - The absence of long-term supply contracts with suppliers may lead to adverse effects on production costs and timelines if materials are not secured[59] Corporate Governance - The company has complied with all relevant laws and regulations during the year, with no significant violations reported[101] - The company has a commitment to environmental sustainability and has established compliance procedures to adhere to applicable laws and regulations[85] - The company has adopted a share option scheme since June 22, 2017, aimed at attracting and retaining qualified participants by providing them with opportunities to acquire equity interests in the company[126] - The board consists of four executive directors and three independent non-executive directors, responsible for corporate policy formulation and business strategy planning[142] - The company has not established a corporate governance committee, with the board being responsible for corporate governance matters[144] Shareholder Information - The company does not recommend the distribution of a final dividend for the current year[91] - The sales from the top five customers accounted for less than 30.0% of the total annual sales, while the procurement from the top five suppliers represented approximately 69.1% of the total procurement, with the largest supplier accounting for about 26.9%[103] - As of December 31, 2020, the company had 255,735,000 shares held by Mr. Sheng, representing 51.15% of the total issued shares[116] - The largest shareholder, Bright Commerce, holds 239,950,000 shares, representing 47.99% of the total shares[120] Risk Management - The board has conducted a review of the effectiveness of the internal control and risk management systems, covering financial, operational, compliance, and risk management functions[180] - The company has confirmed that it does not foresee any significant uncertainties that may cast doubt on its ability to continue as a going concern[177] Communication and Reporting - The company has communicated necessary information to shareholders and investors through various channels, including quarterly and annual reports[186] - The company has a dedicated communication channel for shareholders to submit inquiries to the board[188] - The report period for the environmental, social, and governance report aligns with the fiscal year ending December 31, 2020[198] - The report is prepared in accordance with GEM listing rules and provides a summary of the company's performance in environmental, social, and governance aspects[199]

Financial Performance - For the nine months ended September 30, 2020, the company's revenue was approximately RMB 244.9 million, a decrease of about 6.7% compared to RMB 262.4 million for the same period in 2019[6]. - The gross profit for the same period was approximately RMB 55.9 million, an increase of about 3.7% from RMB 53.9 million in 2019, resulting in a gross margin increase to 22.8% from 20.5%[11]. - The profit attributable to the owners of the company was approximately RMB 5.7 million, a decrease of about 53.2% from RMB 12.3 million in the same period of 2019[18]. - The company's basic earnings per share for the nine months ended September 30, 2020, was approximately RMB 1.15, down from RMB 2.45 for the same period in 2019[6]. - The company reported a net operating profit of RMB 5.587 million for the three months ended September 30, 2020, down from RMB 8.443 million in the same period of 2019[33]. - The total comprehensive income for the three months ended September 30, 2020, was RMB 3.049 million, compared to RMB 6.201 million for the same period in 2019[36]. - The company’s basic and diluted earnings per share for the three months ended September 30, 2020, were RMB 0.48, down from RMB 1.32 in the same period of 2019[33]. - Operating profit for the three months ended September 30, 2020, was RMB 2,384,000, a decrease of 63.8% compared to RMB 6,590,000 for the same period in 2019[67]. Revenue Breakdown - The company serves over 500 customers in domestic and international markets, with overseas sales covering more than 40 countries[8]. - Revenue from China for the three months ended September 30, 2020, was RMB 74,662,000, an increase of 13.4% compared to RMB 65,899,000 for the same period in 2019[54]. - The company generated RMB 14,118,000 in revenue from Pakistan for the nine months ended September 30, 2020, representing a 17.5% increase compared to RMB 12,000,000 in the same period of 2019[54]. - Revenue from India decreased to RMB 10,103,000 for the nine months ended September 30, 2020, down 31.5% from RMB 14,723,000 in the same period of 2019[54]. - The company reported a decrease in revenue from other countries to RMB 27,246,000 for the nine months ended September 30, 2020, down 29.7% from RMB 38,716,000 in the same period of 2019[54]. Expenses and Costs - Selling expenses increased by approximately RMB 2.0 million or 16.6% to about RMB 14.2 million due to increased trademark usage fees and hospitality expenses[14]. - Administrative expenses rose by approximately RMB 2.0 million or 7.1% to about RMB 30.5 million, primarily due to organizational restructuring and increased R&D costs for new product development[15]. - Financial expenses increased by approximately RMB 2.4 million or 146.2% to about RMB 4.0 million, mainly due to increased bank borrowings for business expansion[17]. - The company incurred a total income tax expense of RMB 752,000 for the three months ended September 30, 2020, compared to RMB 1,195,000 for the same period in 2019[62]. Investments and Expansion - The company has completed over 50% of the construction of new facilities, with a total contract value of RMB 54 million[21]. - A formal agreement was signed for the purchase of office property in China for RMB 16.3 million, subject to adjustments based on actual measurements[25]. - The company is expanding its production capacity with new facilities expected to be completed in early 2021, which will enhance production quality and operational efficiency[31]. - The company is investing in advanced printing machinery to enhance production flexibility and efficiency, aligning with the Industry 4.0 manufacturing concept[31]. - The company has utilized a total of RMB 44.6 million from its IPO proceeds, with RMB 32.0 million allocated to capacity enhancement and RMB 8.6 million for repaying bank loans[28]. Shareholder Information - As of September 30, 2020, the company had 500 million shares issued, with Mr. Sheng holding 249,940,000 shares, representing 49.99% ownership[75]. - Bright Commerce, a controlled entity of Mr. Sheng, holds 239,950,000 shares, accounting for 47.99% of the total shares[78]. - Mr. Chen holds 15,000,000 shares, which is 3.00% of the total shares[75]. - The company has not granted any share options since the adoption of the share option plan in June 2017[70]. - No interim dividend was recommended for the nine months ended September 30, 2020, consistent with the previous year[68]. Corporate Governance - The company confirmed compliance with the corporate governance code, except for the separation of the roles of Chairman and CEO[85]. - The audit committee has been established in accordance with GEM Listing Rules and consists of three independent non-executive directors[88]. - The unaudited consolidated results have been reviewed by the audit committee and deemed to comply with applicable accounting standards[88]. - The audit committee's main responsibilities include reviewing and supervising the company's financial reporting procedures and internal control systems[88]. - No arrangements were made for directors to acquire shares or debentures of the company during the period[81]. - There were no interests held by directors or major shareholders in any competing businesses as of September 30, 2020[82].

Financial Performance - The group's revenue for the six months ended June 30, 2020, was approximately RMB 140.1 million, a decrease of about 7.4% compared to the same period last year, primarily due to reduced sales in Pakistan and other overseas markets impacted by COVID-19[8]. - The net profit attributable to the company's owners for the period was approximately RMB 3.4 million, a decrease of about 40.4% compared to RMB 5.7 million in the same period last year[16]. - Revenue for the six months ended June 30, 2020, was RMB 140.1 million, a decrease of 7.4% compared to RMB 151.3 million for the same period in 2019[32]. - Gross profit for the six months ended June 30, 2020, was RMB 30.7 million, compared to RMB 31.5 million for the same period in 2019[32]. - The company reported a net profit of RMB 6.0 million for the six months ended June 30, 2020, down from RMB 5.7 million in the same period of 2019[32]. - The total comprehensive income attributable to owners of the company for the six months ended June 30, 2020, was RMB 6,123,000, down from RMB 5,697,000 in 2019, reflecting a decrease of 7.47%[34]. - For the six months ended June 30, 2020, the company's operating profit decreased to RMB 7,926,000 from RMB 8,083,000 in the same period of 2019, representing a decline of approximately 1.9%[68]. - The basic earnings per share for the six months ended June 30, 2020, was RMB 0.67, down from RMB 1.14 in the same period of 2019, indicating a decrease of about 41.2%[76]. Cost and Expenses - The cost of sales decreased by approximately RMB 10.5 million or about 8.8% to approximately RMB 109.3 million, attributed to weakened market demand and reduced product orders[9]. - The gross profit slightly decreased by approximately RMB 0.8 million or about 2.5% to approximately RMB 30.7 million, with a gross margin increase to 21.9% from 20.8% in the previous period due to lower production costs[10]. - Selling expenses decreased by approximately RMB 0.5 million or 5.9% to about RMB 8.0 million, primarily due to reduced travel and entertainment expenses[12]. - Administrative expenses increased by approximately RMB 1.2 million or 7.2% to about RMB 17.8 million, mainly due to higher employee costs and legal and professional fees[13]. - Financial expenses increased by approximately RMB 0.6 million or 66.7% to about RMB 1.5 million, primarily due to increased interest expenses from bank borrowings[15]. Assets and Liabilities - The group's current assets were approximately RMB 182.8 million, including cash and cash equivalents of approximately RMB 24.6 million, while current liabilities were approximately RMB 254.3 million, resulting in a current ratio of about 0.72[18]. - The debt-to-equity ratio as of June 30, 2020, was approximately 0.71, an increase from 0.62 as of December 31, 2019, mainly due to increased secured bank borrowings[18]. - The company's total assets as of June 30, 2020, were RMB 453,045,000, slightly down from RMB 454,637,000 as of December 31, 2019, indicating a decrease of 0.35%[36]. - The company's total liabilities decreased to RMB 258,611,000 as of June 30, 2020, from RMB 262,746,000 as of December 31, 2019, a reduction of 1.29%[38]. - As of June 30, 2020, the group's current liabilities exceeded current assets by RMB 71.5 million[50]. - The company’s inventory decreased to RMB 39,554,000 as of June 30, 2020, from RMB 47,094,000 as of December 31, 2019, reflecting a decline of 16.00%[36]. - The total inventory as of June 30, 2020, was RMB 82,582,000, down from RMB 97,067,000 as of December 31, 2019, indicating a decrease of approximately 14.9%[80]. - The total trade and other receivables as of June 30, 2020, amounted to RMB 89,875,000, compared to RMB 105,485,000 as of December 31, 2019, reflecting a reduction of approximately 14.8%[81]. - The company reported a decrease in trade payables to RMB 40,864,000 as of June 30, 2020, down from RMB 59,798,000 as of December 31, 2019, which is a decline of approximately 31.8%[86]. - As of June 30, 2020, trade payables and other payables amounted to RMB 84,364,000, a decrease of 20.2% from RMB 105,798,000 as of December 31, 2019[89]. Cash Flow and Investments - Cash flow from operating activities increased significantly to RMB 12,396,000 for the six months ended June 30, 2020, compared to RMB 5,852,000 in 2019, marking an increase of 111.63%[42]. - The company reported a net cash inflow from financing activities of RMB 15,965,000 for the six months ended June 30, 2020, compared to RMB 40,710,000 in 2019, indicating a decrease of 60.69%[42]. - The company’s cash flow from investing activities showed a net outflow of RMB 18,303,000 for the six months ended June 30, 2020, compared to RMB 10,675,000 in 2019, indicating an increase in investment activities[42]. - The company invested approximately RMB 11,923,000 in property, plant, and equipment for the six months ended June 30, 2020, compared to RMB 7,536,000 in the same period of 2019, representing an increase of about 58.5%[77]. Future Outlook and Plans - The company plans to utilize approximately RMB 4.7 million of unutilized funds for the construction of a new PVC furniture film lamination production line, which has been delayed due to slow market growth[27]. - The new factory, including the main office building and equipped staff dormitory, is expected to be completed by the end of 2020, enhancing production capacity and efficiency[29]. - The company aims to strengthen its R&D capabilities to optimize its product mix and improve production efficiency, focusing on high-definition product development and production technology improvements[30]. - The company remains optimistic about business recovery despite challenges posed by COVID-19 and ongoing geopolitical tensions[29]. - The group anticipates continued efforts to enhance its working capital situation in the future[51]. Corporate Governance and Compliance - The company has confirmed compliance with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[119]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim consolidated results for the six months ended June 30, 2020[120]. - The interim report for the six months ended June 30, 2020, has been prepared in accordance with applicable accounting standards and regulations[122]. Shareholder Information - The major shareholder, Mr. Sheng, holds 249,940,000 shares, representing 49.99% of the total shares issued[108]. - Bright Commerce, a controlled entity of Mr. Sheng, holds 239,950,000 shares, accounting for 47.99% of the total shares[112]. - The company did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year[94].

SHENGLONG SPLENDECOR INTERNATIONAL LIMITED 盛 龍 錦 秀 國 際 有 限 公 司 (incorporated in the Cayman Islands with limited liability) (Stock Code: 8481) 2020 FIRST QUARTERLY REPORT 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) 第一季度業績 報告 2020 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上市公司一般為中小型公司，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 ...

Financial Performance - Total revenue for the year 2019 was RMB 347.3 million, a slight decrease of 0.6% from RMB 349.4 million in 2018[9] - Profit before tax increased significantly by 49.0% to RMB 22.4 million from RMB 15.0 million in the previous year[9] - Net profit attributable to owners rose by 40.1% to RMB 19.2 million compared to RMB 13.7 million in 2018[9] - Basic and diluted earnings per share increased to RMB 3.85, up from RMB 2.75, representing an increase of 1.10 cents[9] - Gross profit increased to approximately RMB 85.4 million, up by about RMB 14.9 million from RMB 70.5 million in the previous year, resulting in a gross margin of approximately 24.6%[29][30] - Net profit margin increased to 5.5%, compared to 3.9% in 2018, indicating enhanced profitability[9] Assets and Liabilities - Non-current assets grew by 12.0% to RMB 263.2 million from RMB 234.9 million in 2018[9] - Current assets slightly increased by 1.3% to RMB 191.5 million, while current liabilities remained stable at RMB 248.0 million[9] - The current ratio as of December 31, 2019, was approximately 0.77, slightly up from 0.76 in 2018, indicating a stable liquidity position despite current liabilities exceeding current assets by RMB 56.5 million[41] - The total bank borrowings as of December 31, 2019, amounted to approximately RMB 118.3 million, a 6.8% increase from RMB 110.8 million in 2018[41] - The net current liabilities of the group as of December 31, 2019, amounted to approximately RMB 565 million, including RMB 1,083 million in current bank borrowings and RMB 460 million in bank acceptance notes payable, due within the next twelve months[171] Operational Efficiency - Gross profit margin improved to 24.6%, up from 20.2% in the previous year, reflecting better cost management[9] - Interest coverage ratio improved significantly to 10.94 times, up from 7.04 times, showing better ability to meet interest obligations[9] - Inventory turnover days increased to 63.5 days from 57.4 days, indicating a longer holding period for inventory[9] - Sales costs decreased by approximately RMB 17.1 million or 6.1% to about RMB 261.8 million, mainly due to reduced production costs[28] - Administrative expenses increased by approximately RMB 5.8 million or 17.7% to about RMB 38.6 million, primarily due to rising employee costs and travel expenses[32] Market and Sales - Sales of decorative paper and paint paper in the Pakistan market decreased by approximately 5.6% and 34.6% respectively, impacting overall revenue[26] - Trade receivables increased by approximately RMB 7.3 million to RMB 93.3 million as of December 31, 2019, resulting in an increase in trade receivables turnover days to about 94.2 days[43] - The company is focusing on business expansion despite external uncertainties, with a stable performance from team members[20] Construction and Capital Expenditures - The construction contract for a new factory and office building was signed for a total price of RMB 54 million, expected to be completed by the end of 2020[19] - A construction contract for a new factory was signed on December 20, 2019, with a total value of RMB 54 million, aimed at supporting future business expansion[48] - The group has committed capital expenditures of approximately RMB 51.9 million for the acquisition of properties, plants, and equipment as of December 31, 2019[52] COVID-19 Impact - The group's production facilities were shut down from February 1 to February 14, 2020, due to COVID-19, which may impact performance in the first half of 2020[58] - The management believes it is impractical to estimate the financial impact of COVID-19 on the group at this time, but will remain vigilant and maintain close communication with stakeholders[58] Risk Management - The group faces risks including reliance on sales agents for new customer acquisition, which could adversely affect revenue and brand recognition if not managed effectively[60] - Fluctuations in raw material prices or unstable supply may negatively impact the group's operations and profitability[61] - The absence of long-term supply contracts with suppliers could adversely affect production costs and timelines if supply is not secured[62] - Maintaining current utilization levels of production facilities is critical, as failure to do so could significantly impact profit margins and profitability[63] Corporate Governance - The company has established a compliance advisor agreement, with no interests held by the compliance advisor that require disclosure under GEM Listing Rules[131] - The board consists of four executive directors and three independent non-executive directors, responsible for corporate policy, business strategy, and risk management[136] - The company has committed to enhancing corporate governance standards to maintain investor confidence and increase shareholder returns[134] - The board meets quarterly, ensuring regular oversight and governance of the company's activities[144] Environmental Responsibility - The company has established comprehensive waste management systems to prevent pollution and control environmental impact, adhering to various environmental laws and standards[197] - The company focuses on technological innovation and R&D, having obtained multiple invention and design patents over the years[192] - The company is committed to developing environmentally friendly decorative materials, aligning with its mission to create value for customers and opportunities for employees[192] - The company ensured compliance with the "Comprehensive Emission Standard of Air Pollutants" and "Comprehensive Discharge Standard of Pollutants" during the reporting period, with no violations reported[198] Shareholder Relations - 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 from time to time[163] - The company encourages shareholder participation and feedback during meetings to enhance governance practices[146] - The board maintains ongoing communication with shareholders, particularly during annual general meetings[146]

Financial Performance - For the nine months ended September 30, 2019, the company's revenue was approximately RMB 262.5 million, an increase of about 2.7% compared to the same period in 2018[4] - The gross profit for the same period was approximately RMB 53.9 million, representing an increase of about 10.9% year-over-year[4] - The profit attributable to the owners of the company was approximately RMB 12.3 million, a significant increase of about 41.4% compared to RMB 8.7 million for the same period in 2018[16] - The basic earnings per share for the nine months ended September 30, 2019, was approximately RMB 2.45, compared to RMB 1.74 for the same period in 2018[4] - The gross profit margin improved to 20.5% for the nine months ended September 30, 2019, compared to 19.0% for the same period in 2018[9] - The company reported a revenue of RMB 111,120 thousand for the three months ended September 30, 2019, compared to RMB 92,453 thousand for the same period in 2018, representing a year-over-year increase of approximately 20.1%[30] - For the nine months ended September 30, 2019, the company achieved a revenue of RMB 262,455 thousand, up from RMB 255,683 thousand in the same period of 2018, reflecting a growth of about 2.9%[30] - The gross profit for the three months ended September 30, 2019, was RMB 22,391 thousand, compared to RMB 18,377 thousand in 2018, indicating a gross margin improvement[30] - The net profit for the three months ended September 30, 2019, was RMB 6,590 thousand, an increase of 48.2% from RMB 4,445 thousand in the same period of 2018[30] - The company reported a net profit of RMB 12,273 thousand for the nine months ended September 30, 2019, compared to a profit of RMB 0 in the previous period[64] - The total comprehensive income for the nine months ended September 30, 2019, was RMB 11,898 thousand, a decrease from RMB 12,273 thousand in the previous year due to currency translation differences[64] Expenses and Income - Sales expenses for the period were approximately RMB 12.2 million, remaining relatively stable compared to RMB 12.7 million for the same period in 2018[12] - Administrative expenses decreased by approximately RMB 0.9 million or 3.1% to about RMB 28.5 million for the period[13] - Other income and net gains decreased by approximately RMB 2.7 million or 51.9% to about RMB 2.5 million, primarily due to a reduction in foreign exchange gains[14] - Other income for the nine months ended September 30, 2019, totaled RMB 2,477 thousand, down from RMB 5,194 thousand in the same period of 2018, reflecting a decrease of approximately 52.34%[66] Market and Customer Base - The company served over 400 customers in domestic and international markets during the reporting period, with sales across more than 30 countries[6] - Revenue from China for the nine months ended September 30, 2019, was RMB 151,685 thousand, compared to RMB 146,217 thousand in 2018, indicating a growth of about 3.20%[64] - Revenue from Pakistan decreased significantly to RMB 38,875 thousand for the nine months ended September 30, 2019, down from RMB 54,905 thousand in 2018, a decline of approximately 29.16%[64] Future Plans and Investments - The company plans to utilize approximately RMB 2.0 million for solvent recovery equipment and RMB 4.7 million for a new PVC furniture film lamination production line by December 31, 2020[25] - The company has postponed the purchase of solvent recovery equipment and the construction of the new PVC furniture film lamination production line due to slower-than-expected growth in PVC decorative film products[25] - The company aims to enhance its R&D capabilities to optimize product mix and improve production efficiency, focusing on technologies such as plate roller engraving and ink development[27] - The company anticipates that the replacement of the existing production line for decorative paper will be completed by June 30, 2020, with an estimated cost of RMB 1.8 million[25] Shareholder Information - As of September 30, 2019, Mr. Sheng holds 249,940,000 shares, representing 49.99% of the company's equity[88] - Bright Commerce, a controlled entity of Mr. Sheng, holds 239,950,000 shares, accounting for 47.99% of the company's equity[92] - The weighted average number of ordinary shares issued during the period remained constant at 500,000,000 shares[81] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[104] - The company has confirmed adherence to the corporate governance code, except for the combined roles of Chairman and CEO held by Mr. Sheng, which the board believes is in the best interest of the company[100] - The company has adopted the GEM Listing Rules regarding the trading of securities by directors, confirming compliance throughout the reporting period[99] - The company has not established any arrangements for directors to acquire shares or debt securities of the company or any other corporation during the period[96] - The company has not granted any stock options since the adoption of the stock option plan in June 2017[84] - There were no purchases, sales, or redemptions of the company's listed securities during the period[85] - As of September 30, 2019, there were no interests held by directors or controlling shareholders in any competing businesses[97] Taxation - The effective corporate income tax rate for the group entities in China is 25%, while Shenglong Decoration enjoys a preferential tax rate of 15% due to its high-tech enterprise certification[80] Accounting and Reporting - The company has adopted new accounting standards that may impact future financial reporting, particularly regarding lease recognition[55] - The audit committee reviewed the unaudited consolidated results for the period, affirming compliance with applicable accounting standards[104]

Revenue and Profitability - The group's revenue for the six months ended June 30, 2019, was approximately RMB 151.3 million, a decrease of about 7.3% compared to the same period last year, primarily due to reduced sales in the Chinese and Pakistani markets[8] - The net profit attributable to the company's owners for the period was approximately RMB 5.7 million, representing an increase of about 32.6% compared to RMB 4.3 million for the same period last year[18] - Revenue from external customers for the six months ended June 30, 2019, totaled RMB 151.3 million, a decrease of 7.3% compared to RMB 163.2 million for the same period in 2018[81] - The gross profit for the six months ended June 30, 2019, was RMB 31.5 million, compared to RMB 30.3 million for the same period in 2018[37] - The basic and diluted earnings per share for the six months ended June 30, 2019, were RMB 1.14, up from RMB 0.85 for the same period in 2018, reflecting a growth of 34.1%[94] Costs and Expenses - The cost of sales decreased from approximately RMB 133.0 million to about RMB 119.8 million, a reduction of approximately RMB 13.2 million or 9.9%, attributed to weaker market demand[9] - Administrative expenses decreased by approximately RMB 2.1 million or 11.2% to about RMB 16.6 million, mainly due to reduced employee benefits related to the departure of senior finance personnel[15] - Other income and net gains decreased by approximately RMB 1.7 million or 65.4% to about RMB 0.9 million, mainly due to foreign exchange losses from the depreciation of the US dollar against the RMB[16] - The depreciation and amortization expenses for the six months ended June 30, 2019, were RMB 8,083,000, compared to RMB 7,462,000 for the same period in 2018, an increase of 8.3%[85] - The income tax expense for the three months ended June 30, 2019, was RMB 840,000, compared to RMB 550,000 for the same period in 2018, representing a rise of 52.7%[86] Assets and Liabilities - The group's current assets amounted to approximately RMB 233.2 million, with cash and cash equivalents of about RMB 51.6 million, an increase of approximately RMB 34.7 million from the previous year[20] - Total assets increased to RMB 470,174 thousand as of June 30, 2019, compared to RMB 423,869 thousand as of December 31, 2018, representing an increase of approximately 10.9%[43] - Total liabilities increased to RMB 291,941 thousand, compared to RMB 251,333 thousand, reflecting a rise of approximately 16.2%[45] - The company's total equity attributable to owners increased to RMB 178,233 thousand from RMB 172,536 thousand, an increase of approximately 3.9%[45] - As of June 30, 2019, the group's current liabilities exceeded current assets by RMB 16.5 million, with RMB 115.5 million in current bank loans due within the next twelve months[63] Cash Flow and Financing - Net cash flow from operating activities decreased to RMB 4,723 thousand, down from RMB 11,399 thousand, a decline of about 58.5%[53] - The company reported a net cash inflow from financing activities of RMB 40,710 thousand, compared to a net outflow of RMB 7,262 thousand in the previous period[55] - Cash and cash equivalents at the end of the period reached RMB 51,646 thousand, compared to RMB 8,857 thousand at the end of the previous period, marking a substantial increase[55] - The group issued new bank acceptance notes amounting to RMB 7.9 million after the balance sheet date, indicating continued access to bank financing[64] Market and Operational Insights - The company plans to enhance its R&D capabilities to optimize product mix and improve production efficiency[35] - The company aims to manage costs and risks due to rising raw material costs while expanding its market share in the decorative printing materials industry[35] - The group anticipates sufficient sales orders in the coming months to enhance its working capital situation, leading to positive operating cash flow[63] - The group has no irrevocable operating lease commitments as of the reporting date, indicating a flexible financial position[70] Employee and Management Information - The group employed 330 staff as of June 30, 2019, up from 316 employees as of December 31, 2018[23] - The remuneration for key management personnel increased to RMB 1,197,000 from RMB 1,116,000 in the previous period[114] - The company has not granted any share options since the adoption of the share option scheme in June 2017[119] Corporate Governance - The company has complied with all corporate governance code provisions except for the separation of the roles of Chairman and CEO, which are held by Mr. Sheng[139] - The audit committee, consisting of three independent non-executive directors, oversees the company's financial reporting and internal control systems[140] - The interim consolidated results for the six months ended June 30, 2019, were reviewed by the audit committee and deemed to comply with applicable accounting standards[141]

Financial Performance - For the three months ended March 31, 2019, the revenue was approximately RMB 63.1 million, a decrease of about 9.2% compared to the same period in 2018[7]. - The gross profit for the same period was approximately RMB 11.6 million, down about 13.0% year-on-year[7]. - The loss attributable to the owners of the company for the three months ended March 31, 2019, was approximately RMB 0.3 million, compared to a profit of approximately RMB 0.8 million for the same period in 2018[7]. - The basic loss per share for the period was approximately RMB 0.07, while the basic earnings per share for the same period in 2018 was approximately RMB 0.16[7]. - The gross profit margin for the period was 18.3%, a slight decrease from 19.1% for the same period in 2018[12]. - The operating profit decreased significantly to RMB 0.3 million compared to RMB 1.0 million in the previous year, indicating a decline in operational efficiency[27]. - The total comprehensive loss for the period was RMB 0.4 million, compared to a comprehensive income of RMB 0.8 million in the previous year[29]. - The company reported a net loss attributable to owners of RMB (345,000), compared to a profit of RMB 788,000 in Q1 2018[51]. - Basic and diluted loss per share was RMB (0.07), compared to earnings of RMB 0.16 per share in the previous year[51]. - Other income showed a net loss of RMB (568,000) compared to a profit of RMB 600,000 in Q1 2018[45]. Cost Management - The sales cost decreased from approximately RMB 56.2 million for the three months ended March 31, 2018, to approximately RMB 51.6 million, a reduction of about 8.2%[11]. - Administrative expenses for the period were approximately RMB 7.3 million, down about 18.9% from RMB 9.0 million for the same period in 2018[16]. - Financial expenses increased by approximately RMB 0.3 million or 60% to about RMB 0.8 million due to increased interest expenses from bank borrowings[18]. - The company aims to manage rising raw material costs by improving production efficiency and reducing costs to enhance profit margins[25]. Business Strategy and Market Outlook - New production lines are being implemented to increase capacity and provide better production flexibility to meet specific customer requirements[25]. - The company is optimistic about gaining market share in the decorative printing materials industry due to its strong reputation and increasing customer preference for manufacturers with design capabilities and stable production quality[25]. - The company plans to continue exploring new markets and seizing emerging opportunities to support future business expansion[25]. Shareholder Information - The company did not recommend any interim dividend for the three months ended March 31, 2019[7]. - Major shareholders include Mr. Sheng with 47.99% and Mr. Yu with 2.25% of the total shares[58]. - As of March 31, 2019, Bright Commerce holds 239,950,000 shares, representing a 47.99% equity stake in the company[62]. - Mr. Ren Yunan owns 81,300,000 shares, which accounts for 16.26% of the company's equity[62]. - The company has not established any arrangements for directors to acquire shares or debt securities during the reporting period[66]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated results for the period[72]. - The company confirms compliance with the corporate governance code, except for the separation of the roles of chairman and CEO[70]. - The company has adopted trading guidelines for directors in accordance with GEM Listing Rules[69]. - No shareholders or directors have reported any interests in competing businesses as of March 31, 2019[66]. - The company is committed to high standards of corporate governance to protect shareholder interests[69]. - The audit committee's main responsibilities include reviewing financial reporting procedures and internal control systems[72]. - The company has not disclosed any other interests or positions held by directors or major executives in related companies[67].