万里印刷(08385) - 2024 - 中期业绩

Company Information Company Basic Information and Governance Structure This section details the company's administrative and governance framework, including board composition and key operational contacts - The board comprises three executive directors (Mr. Lam Sam Ming, Ms. Yiu Yuen, Ms. Chan Sau Po) and three independent non-executive directors (Ms. Cheung Yin, Mr. Wong Hei Chiu, Mr. Leung Ka Chun)[5] - The company's registered office and principal place of business are located at 3/F, Yip Cheong Centre, 10 Fung Yip Street, Chai Wan, Hong Kong[5] - The company's stock code is 8385, and its website is **www.prosperous-printing-group.com.hk**[5](index=5&type=chunk) Summary Interim Results Overview The company's revenue nearly halved, gross profit plummeted over 80%, and losses significantly widened, with no interim dividend proposed Major Financial Highlights for H1 2024 (Unaudited) | Metric | H1 2024 (HKD '000) | H1 2023 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 43,500 | 86,200 | -49.5% | | Gross Profit | 3,700 | 19,800 | -81.3% | | Loss for the Period | (29,500) | (12,700) | 132.3% (Loss widened) | - The board does not recommend declaring an interim dividend for the current period[6] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Profit or Loss Performance Analysis H1 2024 performance showed significant revenue and gross profit declines, resulting in a substantially expanded loss Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30, Unaudited) | Metric | 2024 (HKD '000) | 2023 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 43,495 | 86,163 | -49.5% | | Cost of Sales | (39,753) | (66,333) | -40.0% | | Gross Profit | 3,742 | 19,830 | -81.1% | | Other Income | 1,354 | 6,839 | -80.2% | | Distribution Costs | (4,414) | (9,621) | -54.1% | | Administrative Expenses | (27,031) | (24,662) | 9.6% | | Operating Loss | (26,349) | (7,614) | 246.1% (Loss widened) | | Finance Costs | (3,039) | (4,920) | -38.2% | | Loss Before Tax | (29,388) | (12,534) | 134.5% (Loss widened) | | Income Tax | (76) | (133) | -42.9% | | Loss for the Period | (29,464) | (12,667) | 132.6% (Loss widened) | | Other Comprehensive Income for the Period | 4,147 | 19,938 | -79.2% | | Total Comprehensive (Expense) / Income for the Period | (25,317) | 7,271 | From income to expense | | Basic and Diluted Loss Per Share (HK cents) | (35.65) | (15.8) | 125.6% (Loss widened) | Condensed Consolidated Statement of Financial Position Assets and Liabilities Analysis Total assets decreased, net current liabilities increased, and total equity significantly declined, reflecting a worsening financial health Condensed Consolidated Statement of Financial Position (As at June 30, 2024 and December 31, 2023, Unaudited/Audited) | Metric | June 30, 2024 (HKD '000) | December 31, 2023 (HKD '000) | Change (%) | | :--- | :--- | :--- | :--- | | ASSETS | | | | | Non-current Assets | 150,000 | 180,103 | -16.8% | | Current Assets | 37,301 | 53,674 | -30.5% | | Total Assets | 187,301 | 233,777 | -19.9% | | EQUITY | | | | | Total Equity | 8,944 | 34,261 | -73.9% | | LIABILITIES | | | | | Non-current Liabilities | 11,946 | 22,093 | -45.9% | | Current Liabilities | 166,416 | 177,423 | -6.2% | | Total Liabilities | 178,362 | 199,516 | -10.5% | - As of June 30, 2024, the Group's net current liabilities were approximately HKD 132.7 million, indicating significant liquidity pressure[14] Condensed Consolidated Statement of Changes in Equity Equity Movement Analysis Total equity significantly decreased due to the loss for the period and other comprehensive expenses, expanding accumulated losses Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2024, Unaudited) | Equity Item | Balance as at January 1, 2024 (HKD '000) | Loss for the Period (HKD '000) | Other Comprehensive Expense for the Period (HKD '000) | Balance as at June 30, 2024 (HKD '000) | | :--- | :--- | :--- | :--- | :--- | | Share Capital | 106,319 | – | – | 106,319 | | Exchange Reserve | (17,795) | – | 4,147 | (13,648) | | Statutory Surplus Reserve | 5,125 | – | – | 5,125 | | Capital Reserve | 3,318 | – | – | 3,318 | | Retained Profits / Accumulated Losses | (62,706) | (29,464) | – | (92,170) | | Total Equity | 34,261 | (29,464) | 4,147 | 8,944 | - As of June 30, 2024, accumulated losses expanded from HKD 62.7 million on January 1, 2024, to HKD 92.2 million[10] Condensed Consolidated Statement of Cash Flows Cash Flow Analysis Operating activities showed net cash outflow, investment inflow reduced, and financing outflow decreased, leading to a net decrease in cash Condensed Consolidated Statement of Cash Flows (For the six months ended June 30, Unaudited) | Cash Flow Activity | 2024 (HKD '000) | 2023 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (1,874) | (1,869) | (5) | | Net Cash From Investing Activities | 385 | 8,426 | (8,041) | | Net Cash Used in Financing Activities | (251) | (6,278) | 6,027 | | Net (Decrease) / Increase in Cash and Cash Equivalents | (1,740) | 279 | (2,019) | | Cash and Cash Equivalents at June 30 | (10,649) | (11,078) | 429 | - Net cash used in operating activities was HKD 1.874 million, remaining largely consistent with the prior period[11] - Net cash from investing activities significantly decreased from HKD 8.426 million in 2023 to HKD 0.385 million in 2024, primarily due to reduced proceeds from the disposal of property, plant, and equipment[11] Notes to the Condensed Consolidated Financial Statements General Information The company, incorporated in Hong Kong in 1992 and listed on GEM in 2017, primarily produces and trades books and paper products - The company was incorporated as a limited company in Hong Kong on December 23, 1992[12] - The company's shares were listed on GEM of The Stock Exchange of Hong Kong Limited on December 13, 2017[12] - The Group is principally engaged in the production and trading of books and paper products[12] Basis of Preparation The interim financial report, prepared under HKAS 34, highlights significant going concern uncertainties, with board measures to ensure sufficient working capital - This interim financial report is prepared in accordance with HKAS 34 "Interim Financial Reporting" and applicable GEM Listing Rules disclosure provisions[13] - For H1 2024, the Group recorded a loss of approximately HKD 29.464 million and net current liabilities of approximately HKD 132.748 million, indicating significant going concern uncertainties[14] - The board has adopted measures to address going concern uncertainties, including monitoring operating costs, negotiating bank facility renewals, disposing of properties, and reviewing capital structure to raise funds[14] Changes in Accounting Policies Revisions to Hong Kong Financial Reporting Standards effective this period had no significant impact on the Group's financial statement preparation or presentation - Certain amendments to Hong Kong Financial Reporting Standards effective this period had no significant impact on the interim financial report's preparation or presentation[15] Revenue and Segment Reporting The Group's H1 2024 revenue of HKD 43.5 million primarily from books and paper products, with Hong Kong and US as key contributors Revenue Classification (For the six months ended June 30, Unaudited) | Revenue Source | 2024 (HKD '000) | 2023 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Sale of books and paper products | 41,013 | 86,154 | -45,141 | | Provision of subcontracting services | 2,482 | 9 | 2,473 | | Total Revenue | 43,495 | 86,163 | -42,668 | Revenue from Contracts with Customers by Geographical Location (For the six months ended June 30, Unaudited) | Region | 2024 (HKD '000) | 2023 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Hong Kong | 23,782 | 46,051 | -22,269 | | Mainland China | 2,482 | 9 | 2,473 | | United States | 16,920 | 39,511 | -22,591 | | United Kingdom | 311 | 472 | -161 | | Other Countries | – | 120 | -120 | | Total Revenue | 43,495 | 86,163 | -42,668 | - The Group operates as a single operating segment, focusing on the production of books and paper products[18] Other Income H1 2024 other income totaled HKD 1.354 million, a significant decrease due to reduced gains from various sources Other Income Details (For the six months ended June 30, Unaudited) | Income Source | 2024 (HKD '000) | 2023 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Bank interest income | 39 | 106 | -67 | | Profit from disposal of scrap materials | 431 | 726 | -295 | | Government grants - PRC government subsidies | 176 | 898 | -722 | | Gain on disposal of property, plant and equipment | 346 | 2,785 | -2,439 | | Net exchange (loss) / gain | (32) | 2,124 | -2,156 | | Rental income | 274 | – | 274 | | Miscellaneous income | 120 | 200 | -80 | | Total | 1,354 | 6,839 | -5,485 | Income Tax H1 2024 income tax was HKD 76 thousand, mainly Hong Kong profits tax, with Chinese subsidiaries taxed at 25% and BVI subsidiaries tax-exempt - Income tax for H1 2024 was HKD 76 thousand, primarily Hong Kong profits tax, compared to HKD 133 thousand in H1 2023, mainly PRC corporate income tax[21] - Hong Kong businesses are subject to a two-tiered profits tax system, with the first HKD 2 million taxed at 8.25% and the remainder at 16.5%[21] - Chinese subsidiaries are subject to a 25% corporate income tax rate, while British Virgin Islands subsidiaries are tax-exempt[21][22] Loss Per Share H1 2024 basic and diluted loss per share significantly widened to HKD 35.65 cents due to increased loss for the period - H1 2024 basic loss per share was HKD 35.65 cents, based on a HKD 29.464 million loss and 82.659 million weighted average shares[24] - Diluted loss per share is identical to basic loss per share due to the absence of dilutive potential ordinary shares[25] Dividends The board does not recommend declaring an interim dividend for the six months ended June 30, 2024 - The board does not recommend declaring a dividend for the six months ended June 30, 2024[26] Property, Plant and Equipment H1 2024 saw HKD 346 thousand gain from machinery disposal, significantly less than HKD 2.785 million in the prior year - For H1 2024, a gain of HKD 346,000 was recognized from the disposal of machinery with a carrying amount of zero[27] - For H1 2023, a gain of HKD 2,785,000 was recognized from the disposal of machinery with a carrying amount of HKD 1,725,000[27] Trade and Other Receivables As of June 30, 2024, total trade and other receivables increased to HKD 36.657 million, with trade receivables at HKD 22.483 million Trade and Other Receivables (As at June 30, 2024 and December 31, 2023, Unaudited/Audited) | Item | June 30, 2024 (HKD '000) | December 31, 2023 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Trade receivables, net of loss allowance | 22,483 | 28,952 | -6,469 | | Other receivables | 13,670 | 1,866 | 11,804 | | Prepayments | – | 34 | -34 | | Utility and other deposits | 504 | 942 | -438 | | Other refundable taxes | – | 2,006 | -2,006 | | Total | 36,657 | 33,800 | 2,857 | Ageing Analysis of Trade Receivables (As at June 30, 2024 and December 31, 2023, Unaudited/Audited) | Ageing | June 30, 2024 (HKD '000) | December 31, 2023 (HKD '000) | | :--- | :--- | :--- | | Within 1 month | 4,277 | 6,679 | | 1 to 3 months | 3,423 | 5,936 | | 3 to 6 months | 3,093 | 3,847 | | 6 to 12 months | 1,011 | 1,076 | | Over 1 year | 10,679 | 11,414 | | Total | 22,483 | 28,952 | Trade and Other Payables As of June 30, 2024, total trade and other payables slightly increased to HKD 45.231 million, with trade payables at HKD 19.138 million Trade and Other Payables (As at June 30, 2024 and December 31, 2023, Unaudited/Audited) | Item | June 30, 2024 (HKD '000) | December 31, 2023 (HKD '000) | Change (HKD '000) | | :--- | :--- | :--- | :--- | | Trade payables | 19,138 | 20,553 | -1,415 | | Other payables and accrued expenses | 26,093 | 24,172 | 1,921 | | Total | 45,231 | 44,725 | 506 | Ageing Analysis of Trade Payables (As at June 30, 2024 and December 31, 2023, Unaudited/Audited) | Ageing | June 30, 2024 (HKD '000) | December 31, 2023 (HKD '000) | | :--- | :--- | :--- | | Within 1 month | 2,882 | 2,966 | | 1 to 3 months | 4,311 | 4,332 | | 3 to 6 months | 6,277 | 5,931 | | 6 to 12 months | 4,271 | 5,828 | | Over 1 year | 1,397 | 1,496 | | Total | 19,138 | 20,553 | Fair Value Measurement of Financial Instruments This note explains the three-level fair value hierarchy for financial instruments measured on a recurring basis at the reporting period end - Fair value measurements are categorized into a three-level hierarchy as defined by HKFRS 13 "Fair Value Measurement", including Level 1 (active market quotes), Level 2 (observable inputs), and Level 3 (significant unobservable inputs)[32] Management Discussion and Analysis Business Review and Future Prospects The company faced significant revenue decline, closed its Shenzhen factory, and shifted to outsourcing and leveraging its Hong Kong facility - The Group's revenue decreased by approximately 49.5% from HKD 86.2 million to HKD 43.5 million, primarily due to challenging business conditions and reduced customer orders[33] - The Shenzhen factory ceased operations in June 2024, with the business model shifting to outsourcing printing orders to external subcontractors in China while continuing production at the Hong Kong factory[33] - Future strategies include leveraging the Hong Kong factory for specific orders, securing overseas clients using international standards and project management, and outsourcing to mainland China subcontractors to reduce fixed costs[33] Financial Review This review analyzes changes in revenue, costs, and expenses, highlighting significant declines and a substantially expanded loss for the period Revenue Revenue, primarily from overseas printed products, decreased by 49.5% to HKD 43.5 million due to challenging business conditions - Revenue decreased by approximately 49.5% from HKD 86.2 million to HKD 43.5 million[34] - The revenue decrease was primarily due to challenging business conditions and reduced sales orders[34] Cost of Sales Cost of sales, including raw materials and staff costs, decreased by 40.0% to HKD 39.8 million due to reduced revenue and sales orders - Cost of sales decreased by approximately 40.0% from HKD 66.3 million to HKD 39.8 million[35] - The decrease in cost of sales was primarily due to reduced revenue and sales orders[35] Gross Profit and Gross Profit Margin Gross profit significantly decreased by 81.3% to HKD 3.7 million, with the gross profit margin falling from 23.0% to 8.6% - Gross profit for the period was approximately HKD 3.7 million, an 81.3% decrease from HKD 19.8 million in the prior period[36] - Gross profit margin decreased from 23.0% in the prior period to 8.6% in the current period[36] Other Income Other income decreased by 79.4% to HKD 1.4 million, primarily due to reduced gains from various sources - Other income decreased by approximately 79.4% from HKD 6.8 million to HKD 1.4 million[37] - The decrease was due to reduced scrap material sales, foreign exchange gains, government subsidies, and machinery disposal gains[37] Distribution Costs Distribution expenses decreased to HKD 4.4 million from HKD 9.6 million, primarily due to reduced sales orders - Distribution expenses for the period were approximately HKD 4.4 million, a decrease from HKD 9.6 million in the prior period, primarily due to reduced sales orders[38] Administrative Expenses Administrative expenses increased by 9.3% to HKD 27.0 million, primarily due to increased write-offs of fixed assets and inventory - Administrative expenses increased by approximately 9.3% from HKD 24.7 million to HKD 27.0 million[39] - The increase was primarily due to increased write-offs of fixed assets and inventory[39] Finance Costs Finance costs for the period decreased to approximately HKD 3.0 million from HKD 4.9 million - The Group recorded finance costs of approximately HKD 3.0 million, compared to HKD 4.9 million in the prior period[40] Income Tax Income tax for the period was approximately HKD 0.1 million, consistent with the prior period, influenced by Hong Kong and China tax rates - Income tax for the period was approximately HKD 0.1 million, consistent with the prior period[41] - Hong Kong businesses are subject to a two-tiered profits tax system, while Chinese businesses are subject to a 25.0% corporate income tax rate[41] Loss for the Period A loss of approximately HKD 29.5 million was recorded for the period, a significant increase from HKD 12.7 million in the prior period - A loss of approximately HKD 29.5 million was recorded for the period, compared to a loss of HKD 12.7 million in the prior period[42] Liquidity and Financial Resources As of June 30, 2024, net current liabilities were HKD 132.7 million, with a current ratio of 0.2 and a gearing ratio of 13.9, indicating deteriorated liquidity - As of the period end, the Group's net current liabilities were approximately HKD 132.70 million (December 31, 2023: HKD 123.7 million)[43] - The current ratio was 0.2 (December 31, 2023: 0.3), and the gearing ratio was 13.9 (December 31, 2023: 4.0)[43] - Total bank borrowings, overdrafts, and lease liabilities were approximately HKD 124.6 million, with HKD 122.7 million repayable within one year[43] Foreign Exchange Management The company faces foreign exchange risks from USD, RMB, GBP, and JPY transactions, with no hedging undertaken, and the board continuously monitors these risks - The Group's foreign exchange risk primarily arises from receivables, payables, and cash balances denominated in USD, RMB, GBP, and JPY[44] - The Group did not enter into or trade any financial instruments for hedging purposes during the period[44] Pledge of the Group's Assets As of June 30, 2024, HKD 159.4 million of HKD 175.9 million total bank facilities were utilized, primarily secured by various assets - As of the period end, total bank facilities were HKD 175.9 million, with HKD 159.4 million utilized[45] - Collateral includes bank deposits, financial assets at FVTPL, trade receivables, property, plant and equipment, Hong Kong property rental assignments, key management insurance proceeds, and corporate guarantees[45] - As of June 30, 2024, property and machinery with a carrying amount of HKD 150.0 million were pledged as collateral for bank facilities[45] Capital Structure The company's shares were listed on GEM in 2017, followed by a share consolidation in August 2023, with no further capital structure changes this period - The company's shares were listed on GEM on December 13, 2017[46] - On August 29, 2023, the company completed a 10-to-1 share consolidation, merging 869,980,000 existing shares into 86,998,000 consolidated shares[46] - Subsequent to the share consolidation, there were no changes to the Group's capital structure during the period[46] Capital Expenditure Capital expenditure for property, plant, and equipment was funded by internal resources, finance leases, and bank borrowings, totaling HKD 150.0 million - Capital expenditure primarily comprises payments for the acquisition of property, plant, and equipment, such as production machinery[47] - Capital expenditure during the period was funded through internal resources, finance leases, and bank borrowings[47] - As of June 30, 2024, capital expenditure for property, plant, and equipment was HKD 150.0 million (December 31, 2023: HKD 184.155 million)[47] Contingent Liabilities There were no significant contingent liabilities during the current period - There were no significant contingent liabilities during the period[48] Commitments As of the period end, capital commitments contracted but not provided for in the financial statements amounted to zero - As of the period end, capital commitments contracted but not provided for in the financial statements amounted to zero[48] Employees and Remuneration Policies Employee count significantly decreased to 23 due to the Shenzhen factory's closure; remuneration is reviewed based on market levels, responsibilities, and company performance - As of June 30, 2024, the Group had 23 employees, a significant decrease from 448 as of December 31, 2023, primarily due to the cessation of operations at the Shenzhen factory[49] - Director and senior management remuneration is based on directors' fees, salaries, benefits in kind, and/or discretionary bonuses, determined by comparable companies, time commitment, and Group performance[49] Significant Investments, Acquisitions and Disposals and Future Plans for Significant Investments or Capital Assets The company disposed of machinery assets due to the Shenzhen factory's closure, with no other significant investment or acquisition plans disclosed - The Group disposed of machinery on May 6, 2024, for a total consideration of RMB 1,360,000[50] - The company signed an agreement on June 9, 2024, to dispose of assets due to the cessation of operations at the Shenzhen factory[50] - Other than disclosed, the Group has no other significant investments, acquisitions, or disposals, nor any future plans for significant investments or capital assets[50] Material Subsequent Events To the best of the board's knowledge, there were no material subsequent events requiring disclosure after the current period - To the best of the board's knowledge, there were no matters requiring disclosure after the period[50] Dividends The board does not recommend declaring an interim dividend for the current period - The board does not recommend declaring an interim dividend for the current period[50] Other Information Corporate Governance Practices The company complied with Corporate Governance Code principles and provisions, except for the unsegregated roles of Chairman and Chief Executive Officer - The company complied with Corporate Governance Code principles and provisions, except for the unsegregated roles of Chairman and Chief Executive Officer[51] Chairman and Chief Executive Officer Mr. Lam Sam Ming serves as both Chairman and CEO, a deviation from the Corporate Governance Code, but the board believes it is in the company's best interest - Mr. Lam Sam Ming concurrently serves as Chairman and Chief Executive Officer, deviating from Corporate Governance Code provision C.2.1[52] - The board believes Mr. Lam's dual role is in the Group's best interest, with an experienced board (including three independent non-executive directors) ensuring a balance of power and authority[52] Code of Conduct for Directors' Securities Transactions The company adopted the GEM Listing Rules' code of conduct, with all directors confirming full compliance during the period - The company adopted GEM Listing Rules 5.48 to 5.67 as the code of conduct for directors' securities transactions[53] - All directors confirmed full compliance with the required dealing standards of the code of conduct during the period[53] Share Option Scheme No share options were granted, exercised, cancelled, lapsed, or forfeited under the company's share option scheme, and no outstanding options existed - No share options were granted, exercised, cancelled, lapsed, or forfeited under the scheme during the period[55] - There were no outstanding share options as of the period end[55] Purchase, Sale or Redemption of Shares Neither the company nor its subsidiaries purchased, sold, or redeemed any shares during the period - Neither the company nor its subsidiaries purchased, sold, or redeemed any shares during the period[56] Changes in Directors' Biographical Details Independent non-executive director Mr. Leung Ka Chun was appointed as an independent non-executive director of China Evergrande New Energy Vehicle Group Limited - Independent non-executive director Mr. Leung Ka Chun was appointed as an independent non-executive director of China Evergrande New Energy Vehicle Group Limited (708.hk), effective August 5, 2024[57] Disclosure of Interests This section discloses directors' and substantial shareholders' interests, including Chairman Mr. Lam Sam Ming and Ms. Yiu Yuen's 55.17% stake via First Tech, part of which is pledged Directors' Interests and/or Short Positions in Shares, Underlying Shares or Debentures of the Company and its Associated Corporations Chairman and Executive Director Mr. Lam Sam Ming and his spouse Ms. Yiu Yuen hold 55.17% of the company's shares via First Tech, with a portion pledged Directors' Interests in the Company (As at the end of the current period) | Director Name | Capacity | Number of Shares | Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Lam Sam Ming | Interest in controlled corporation | 48,000,000 (L) | 55.17% | | Ms. Yiu Yuen | Spouse's interest | 48,000,000 (L) | 55.17% | - Mr. Lam Sam Ming holds 48,000,000 shares through First Tech Inc., and Ms. Yiu Yuen is deemed to have the same interest as his spouse[59] - First Tech has pledged shares (representing 8.28% of the company's issued share capital) to Easy Credit Limited as loan collateral[59] Substantial Shareholders' Interests and/or Short Positions in Shares Discloseable Under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance Substantial shareholder First Tech holds 55.17% of the company's shares, and Easy Credit Limited holds 8.28% due to pledged interests Substantial Shareholders' Interests in the Company (As at the end of the current period) | Substantial Shareholder Name | Capacity | Number of Shares | Percentage of Interest | | :--- | :--- | :--- | :--- | | First Tech | Beneficial owner | 48,000,000 (L) | 55.17% | | Easy Credit Limited | Person with security interest over shares | 7,200,000 (L) | 8.28% | - First Tech is wholly-owned by Mr. Lam Sam Ming, an executive director[62] - Easy Credit Limited is wholly-owned by Easy Credit International Holdings Limited, which is 50% owned by Mr. Chiu Chi Sang and Mr. Cheung Ting Kin respectively[63] Directors' Interests in Competing Businesses No directors or their close associates hold interests in any business directly or indirectly competing with the Group, except for Group members - No directors or their close associates hold interests in any business that directly or indirectly competes with the Group's business[64] Audit Committee The Audit Committee reviewed the Group's unaudited consolidated financial results for the period, confirming compliance with applicable accounting standards and GEM Listing Rules - The Audit Committee has reviewed the Group's unaudited consolidated financial results for the period[65] - The Audit Committee believes the financial results comply with applicable accounting standards and GEM Listing Rules and are adequately disclosed[65]