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].

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].