Corporate Information Financial Highlights | Metric | Year Ended March 31, 2025 | Year Ended March 31, 2024 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | Approx. HK$292.6 million | Approx. HK$316.3 million | -7.5% | | Gross Profit | Approx. HK$114.2 million | Approx. HK$119.2 million | -4.2% | | Gross Profit Margin | Approx. 39.0% | Approx. 37.7% | +1.3 percentage points | | Loss for the Year Attributable to Owners of the Company | Approx. HK$6.1 million | Approx. HK$8.3 million | Loss narrowed by 26.5% | | Cash and Cash Equivalents at Period End | Approx. HK$103.1 million | Approx. HK$100.1 million | +3.0% | | Final Dividend | Nil | Nil | - | Chairman's Statement Operating Results Affected by the persistent sluggish Hong Kong market, the Group's revenue for FY2025 decreased by 7.5% year-on-year to HK$292.6 million; despite the revenue decline, loss attributable to owners of the Company narrowed from HK$8.3 million to HK$6.1 million, a reduction of HK$2.2 million, indicating effective cost control | Financial Metric | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | Revenue | HK$292.6 million | HK$316.3 million | -HK$23.7 million | | Loss Attributable to Owners of the Company | HK$6.1 million | HK$8.3 million | Loss reduced by HK$2.2 million | Prospects The Group will continue to invest in advanced paper and digital printing equipment to solidify its market position; facing economic uncertainties, the company will actively optimize cost and risk management, strengthen core printing businesses, and seek new opportunities for revenue diversification to create long-term shareholder value - Continuous investment in advanced machinery strengthens paper and digital printing capabilities to meet customer expectations and market demands1822 - Future strategic priorities include strengthening core printing businesses, optimizing resource allocation, enhancing efficiency and profitability, and actively seeking new opportunities for revenue diversification192426 Management Discussion and Analysis Business Review The Group primarily operates three businesses: paper printing, inkjet printing, and yacht financing; in FY2025, revenue from both paper printing and inkjet printing businesses declined, while yacht financing contributed HK$4.7 million in revenue | Business Segment | FY2025 Revenue (HKD) | FY2024 Revenue (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Paper Printing (e-print) | Approx. HK$197.6 million | Approx. HK$223.6 million | -11.6% | | Inkjet Printing (e-banner) | Approx. HK$90.3 million | Approx. HK$92.7 million | -2.6% | | Yacht Financing | Approx. HK$4.7 million | N/A | New | Materials events occurred during the reporting period During the reporting period, the Group completed several significant transactions, including the acquisition of two properties in Kwun Tong Industrial Centre, capital injection into Top Success BVI making it a non-wholly owned subsidiary, and the extension of a shareholder loan to Top Success Hong Kong - Acquisition of two properties in Kwun Tong Industrial Centre, Hong Kong, for a total consideration of HK$19,560,000, with the transaction completed383940 - Capital injection of HK$14,500,000 into Top Success BVI, increasing shareholding to 77.5%, making it a non-wholly owned subsidiary of the Company44 - Extension of the maturity date for the HK$15,000,000 shareholder loan to Top Success Hong Kong by five years50 Outlook Looking ahead, despite a complex macroeconomic environment, the Group will continue to invest in advanced printing production facilities and innovative technologies, leveraging recently acquired freehold properties to expand operational capacity; concurrently, the company will prioritize enhancing operational efficiency and optimizing resource allocation to address rising costs and competitive pressures, ensuring business resilience and sustained margin improvement - Leveraging recently acquired freehold properties to expand operational capacity and maintain industry competitive advantage52 - Future priorities include enhancing operational efficiency and optimizing resources through stringent cost management and streamlined operational processes to ensure operational resilience and continuous margin improvement53 Financial Review In FY2025, the Group's total revenue decreased by 7.5% to HK$292.6 million, but gross profit margin improved from 37.7% to 39.0% due to cost control measures; net other income significantly increased, primarily from a turnaround in gain on disposal of property, plant and equipment; administrative expenses decreased, but finance income substantially reduced as interest income from Top Success Investment was no longer consolidated post-acquisition; ultimately, loss attributable to owners of the Company narrowed to HK$6.1 million, with capital expenditure significantly increasing due to property additions and the gearing ratio rising | Financial Item | FY2025 (HK$ million) | FY2024 (HK$ million) | Key Reasons for Change | | :--- | :--- | :--- | :--- | | Revenue | 292.6 | 316.3 | Decrease in paper and inkjet printing business revenue | | Gross Profit | 114.2 | 119.2 | Revenue decline led to lower gross profit | | Gross Profit Margin | 39.0% | 37.7% | Implementation of cost control measures | | Net Other Income/(Loss) | 0.4 | (6.2) | Turnaround from loss to gain on disposal of property, plant and equipment, and fair value gain on financial assets | | Administrative Expenses | 90.8 | 92.0 | Decrease in staff welfare expenses | | Finance Income | 1.6 | 5.0 | No longer consolidating interest income from financial assets of Top Success Investment after acquisition | | Share of Profit of Joint Ventures | 1.6 | 1.2 | Improved business performance | | Loss Attributable to Owners of the Company | (6.1) | (8.3) | Loss narrowed | | Capital Expenditure | 49.8 | 27.5 | Significant increase due to property additions | | Financial Ratio | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 1.1 | 1.2 | | Gearing Ratio | 40.8% | 36.1% | - Subsequent to the reporting period, the Company's indirect non-wholly owned subsidiary, Boat Easy International Limited, granted two secured loans totaling HK$11,800,000110111 - The Board does not recommend the payment of a final dividend for the year ended March 31, 2025113 Corporate Governance Report Corporate Governance Practice The Company is committed to maintaining high standards of corporate governance; during the reporting period, the Company complied with most provisions of the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are not separated, both held by Mr. She Siu Kei; the Board believes this arrangement ensures leadership consistency and decision-making efficiency, and the current Board structure adequately balances power - The Company deviates from the Corporate Governance Code's provision on the separation of Chairman and Chief Executive Officer roles, with both positions currently held by the same individual, Mr. She Siu Kei119 - The Board believes that having the Chairman and Chief Executive Officer as the same person helps ensure consistency in the Group's leadership and enables more efficient overall strategic planning119 Board of Directors The Board of Directors comprises eight members, including three executive directors, one non-executive director, and four independent non-executive directors, ensuring a balanced structure; the Board is responsible for leading and overseeing the Company, formulating overall strategy, and reviewing operational and financial performance; five Board meetings were held during the reporting period with good attendance; the Company has adopted mechanisms for directors to obtain independent advice and ensures their participation in continuous professional development - The Board of Directors consists of 8 directors: 3 executive directors, 1 non-executive director, and 4 independent non-executive directors, ensuring the Board's independence127129 - A total of five Board meetings were held during the reporting period, with high director attendance132135 - All directors participated in continuous professional development to update their knowledge and skills148149 Board Committees The Company has established Nomination, Remuneration, and Audit Committees, each chaired by an independent non-executive director, holding regular meetings to fulfill their duties; the Nomination Committee reviews Board structure and diversity and recommends director candidates; the Remuneration Committee formulates remuneration policies for directors and senior management; the Audit Committee oversees financial reporting, risk management, and internal control systems, and has reviewed the annual financial statements - The Nomination Committee comprises three independent non-executive directors and one executive director, responsible for reviewing Board structure, diversity, and director appointments162 - The Remuneration Committee consists of two independent non-executive directors and one executive director, responsible for recommending remuneration policies and structures for directors and senior management to the Board182183 - The Audit Committee comprises four independent non-executive directors, primarily responsible for overseeing financial reporting, risk management, and internal control systems, and has reviewed the current fiscal year's results192193199 Risk Management and Internal Control The Board is responsible for monitoring the Group's risk management and internal control systems, conducting annual effectiveness reviews; the Group has established an enterprise risk management framework and adopted a 'three lines of defense' governance structure; during the reporting period, an external independent professional firm was appointed to review the internal control system, identifying strategic risks (Sino-US trade tensions) and operational risks (asset misappropriation) as key risks; the Board considers the existing systems effective and adequate - The Board, through the Audit Committee, conducts an annual review of the Group's risk management and internal control systems, covering financial, operational, and compliance controls247 - The Group appointed an external independent professional firm (Ming Shun Corporate Consultancy Limited) to conduct an internal control review and adopted improvement measures based on its recommendations251 | Risk Area | Principal Risk | | :--- | :--- | | Strategic Risk | Impact of Sino-US trade tensions on demand for printing products | | Operational Risk | Risk of asset misappropriation by internal and external parties | | Financial Risk | No significant risks identified | | Compliance Risk | No significant risks identified | Environmental, Social and Governance Report ESG Governance and Strategy The Group has established a 'top-down' ESG governance structure led by the Board of Directors, with an ESG working team responsible for implementation; through communication with key stakeholders including government, shareholders, employees, and customers, the Group conducted a materiality assessment, identifying 'resource usage,' 'health and safety in the workplace,' 'supply chain management,' and 'product responsibility' as crucial ESG issues - The Group adopts a 'top-down' ESG governance structure, with the Board bearing ultimate responsibility and an ESG working team supporting strategy formulation and implementation276277 - Through materiality assessment, four crucial ESG issues were identified: resource usage, health and safety in the workplace, supply chain management, and product responsibility288290 Our Environment The Group is committed to sustainable operations, formulating environmental policies to manage emissions, waste, and resource usage; regarding emissions, carbon emissions are reduced by switching to alcohol-free dampening solutions and implementing energy-saving measures; for waste management, hazardous and non-hazardous waste are sorted for treatment and recycling; concerning resource usage, measures include water conservation, use of eco-friendly paper, and environmentally friendly inks; furthermore, the Group has conducted climate risk assessments and developed mitigation strategies for physical and transition risks - By switching to alcohol-free dampening solutions instead of isopropyl alcohol (IPA), hazardous waste and safety hazards were significantly reduced296390 | Environmental Metric | FY2025 | FY2024 | | :--- | :--- | :--- | | Total Greenhouse Gas Emissions (tonnes of CO2e) | 1,191.1 | 1,132.1 | | Total Electricity Consumption (kWh) | 3,031,839.4 | 2,804,271.8 | | Total Water Consumption (cubic meters) | 4,231.0 | 4,194.0 | | Total Hazardous Waste (tonnes) | 2,980.1 | 2,906.0 | | Total Non-Hazardous Waste (tonnes) | 722.6 | 720.7 | - The Group has identified physical risks such as extreme weather and rising average temperatures, and transition risks like changes in environmental regulations and shifting consumer preferences, and has developed corresponding mitigation strategies315319 Our People and Customers (Social) Regarding social responsibility, the Group focuses on employee well-being, customer rights, and business ethics; as of March 31, 2025, the Group had 311 employees and strictly complies with employment laws, adopting a zero-tolerance policy towards child and forced labor; the Group prioritizes occupational health and safety and provides development and training opportunities for employees; concerning customers, the Group emphasizes product responsibility, protects intellectual property and customer privacy, and has established comprehensive customer service and complaint handling mechanisms; concurrently, the Group manages supply chain risks through green procurement and supplier evaluations, and maintains a zero-tolerance stance on corruption, with established whistleblowing procedures - As of March 31, 2025, the Group had 311 full-time employees, a decrease from 340 in the same period last year104321 - The Group adopts a zero-tolerance policy towards child and forced labor, preventing it through measures such as age verification and identity checks during the recruitment process327331 - During the reporting period, lost workdays due to work-related injuries totaled 13.5 days, a significant improvement from 16 days and 205 days in the preceding two years407 - The Group maintains a zero-tolerance stance on corruption, having established anti-corruption policies and whistleblowing procedures, and provides anti-corruption training for new employees360361366 Our Community The Group actively fulfills its community responsibilities, primarily focusing on education; during the reporting period, the Group sponsored scholarship programs for the Hong Kong Vocational Training Council (VTC) Youth College and provided free printing support to various non-governmental organizations, including the Hong Kong Federation of Business Students and Fu Hong Society, contributing to society with its core business capabilities - Sponsorship of scholarship programs for the Hong Kong Vocational Training Council (VTC) Youth College, supporting youth talent development371 - Provision of free printing support to multiple non-governmental organizations (NGOs), leveraging core business capabilities to contribute to society372 Biographical Details of Directors and Senior Management - The Board of Directors and senior management possess extensive industry experience in printing, marketing, corporate management, and financial accounting; founder Mr. She Siu Kei serves as Chairman and Chief Executive Officer, with over 25 years of experience in the printing industry437439445447 Report of the Directors Principal Risks and Uncertainties The Group faces principal risks including decreased market demand and fluctuations in raw material procurement costs; reduced market demand stems from the rise of online media and paperless trends, which the Group addresses by optimizing product portfolios, enhancing value-added services, and expanding new product lines; raw material cost fluctuations are primarily influenced by paper prices, managed through market research, fixed-price contracts with suppliers, and other cost control methods - Principal Risk 1: Decreased market demand; traditional printing demand declines due to the rise of online media and paperless trends; mitigation measures include strengthening customer relationship management, optimizing product portfolios (e.g., digital printing, promotional gifts), and enhancing value-added services (e.g., mobile applications, online platforms)469475478 - Principal Risk 2: Fluctuations in raw material procurement costs; paper is a major cost component, with its price influenced by various factors; mitigation measures include regular market research, supplier price comparisons, signing fixed-price contracts, or changing suppliers to stabilize costs480482 Share Schemes The Company terminated its original share option scheme ('Old Scheme') in August 2023 and adopted a new share option scheme ('New Scheme'); in FY2025, 44,000,000 share options granted under the Old Scheme lapsed; no share options have been granted under the New Scheme since its adoption; the New Scheme's authorized limit is 55,000,000 shares, representing 10% of issued shares - The original share option scheme was terminated on August 22, 2023, with no new share options to be granted534 - During the reporting period, all 44,000,000 share options granted under the Old Scheme lapsed536543 - The Company adopted a new share option scheme with an authorized limit of 55,000,000 shares, representing 10% of issued shares, but no share options have been granted as of the reporting date537539542 Substantial Shareholders As of March 31, 2025, the Company's substantial controlling shareholder is eprint Limited, holding 313,125,000 shares, representing 56.93% of the issued shares; eprint Limited is jointly controlled by several directors and parties acting in concert, including Mr. She Siu Kei, Mr. Chong Cheuk Ki, Mr. Leung Wai Ming, and Mr. Leung Yat Pang | Substantial Shareholder | Capacity/Nature of Interest | Number of Ordinary Shares Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | eprint Limited | Beneficial Owner | 313,125,000 | 56.93% | | Mr. She Siu Kei | Interest in Controlled Corporation | 313,125,000 | 56.93% | | Mr. Chong Cheuk Ki | Interest in Controlled Corporation | 313,125,000 | 56.93% | | Mr. Leung Wai Ming | Interest in Controlled Corporation | 313,125,000 | 56.93% | | Mr. Leung Yat Pang | Interest in Controlled Corporation | 313,125,000 | 56.93% | Independent Auditor's Report - Auditor PricewaterhouseCoopers issued an unmodified opinion, stating that the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of March 31, 2025, and its consolidated financial performance and cash flows for the year then ended620621 - A key audit matter identified in the report is 'Revenue recognition for paper printing and inkjet printing segments'; the auditor focused on this area, including testing internal controls, sampling revenue transactions, and performing cut-off tests, concluding that revenue recognition for this segment was sufficiently supported by evidence626631634 Consolidated Financial Statements Consolidated Statement of Comprehensive Income In FY2025, the Group recorded total revenue of HK$292.6 million, a 7.5% year-on-year decrease; despite the revenue decline, gross profit only slightly decreased by 4.2% to HK$114.2 million due to effective cost control; loss for the year was HK$5.71 million, narrowing from HK$6.90 million last year; loss attributable to owners of the Company was HK$6.13 million, with basic loss per share of 1.11 HK cents | Item (HK$ thousand) | FY2025 | FY2024 | | :--- | :--- | :--- | | Revenue | 292,593 | 316,277 | | Gross Profit | 114,218 | 119,217 | | Operating Loss | (4,535) | (8,537) | | Loss Before Income Tax | (4,872) | (6,084) | | Loss for the Year | (5,714) | (6,900) | | Loss Attributable to Owners of the Company | (6,130) | (8,306) | | Basic and Diluted Loss Per Share (HK cents) | (1.11) | (1.51) | Consolidated Statement of Financial Position As of March 31, 2025, the Group's total assets were HK$378.8 million, largely consistent with the previous year; total equity was HK$243.2 million, a slight decrease; among non-current assets, property, plant and equipment increased due to acquisitions, while right-of-use assets decreased; current assets increased, primarily driven by growth in cash and cash equivalents; total liabilities were HK$135.6 million, with current liabilities rising due to increased borrowings | Item (HK$ thousand) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | 236,788 | 253,280 | | Current Assets | 142,055 | 125,374 | | Total Assets | 378,843 | 378,654 | | Total Equity | 243,244 | 244,068 | | Non-current Liabilities | 11,410 | 28,477 | | Current Liabilities | 124,189 | 106,109 | | Total Liabilities | 135,599 | 134,586 | | Total Equity and Liabilities | 378,843 | 378,654 | Consolidated Statement of Cash Flows In FY2025, net cash generated from operating activities was HK$12.63 million, a decrease from the previous year; net cash outflow from investing activities was HK$7.63 million, primarily for purchasing property, plant and equipment, partially offset by proceeds from redemption of financial assets; net cash outflow from financing activities was HK$2.08 million; overall, cash and cash equivalents at year-end increased by HK$2.91 million, reaching HK$103.1 million | Item (HK$ thousand) | FY2025 | FY2024 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 12,627 | 27,492 | | Net Cash Used in Investing Activities | (7,630) | (45,408) | | Net Cash Used in Financing Activities | (2,084) | (6,995) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 2,913 | (24,911) | | Cash and Cash Equivalents at Beginning of Year | 100,035 | 125,024 | | Cash and Cash Equivalents at End of Year | 103,056 | 100,035 | Five-year Financial Summary | Item (HK$ thousand) | 2025 | 2024 | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | :--- | :--- | | (Loss)/Profit Attributable to Owners of the Company | (6,130) | (8,306) | (14,243) | 2,097 | 19,009 | | Total Assets | 378,843 | 378,654 | 372,608 | 335,568 | 331,152 | | Total Liabilities | (135,599) | (134,586) | (120,818) | (85,300) | (80,497) | | Net Assets | 243,244 | 244,068 | 251,790 | 250,268 | 250,655 |
EPRINT集团(01884) - 2025 - 年度财报