The Stock Exchange of Hong Kong Limited and the Securities and Futures Commission take no responsibility for the contents of this Application Proof, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Application Proof. Application Proof of Shenzhen Hosonsoft Co., Ltd. 深圳市漢森軟件股份有限公司 (A joint stock company incorporated in the People's Republic of China wi ...

Core Insights - The packaging printing industry is experiencing a significant transformation driven by technology, sustainability, and consumer expectations [1] - Modern packaging serves as a communication tool that enhances customer experience and conveys brand values [1] Digital Printing Expansion - Digital printing is the most dynamic sector in packaging, revolutionizing product market entry by eliminating the need for plates, allowing for faster setup and shorter production runs [3] - This flexibility appeals particularly to small and medium-sized enterprises and e-commerce brands that require rapid turnaround and lower inventory risk [3] - Next-generation inkjet and hybrid presses are leading the transformation, delivering print quality comparable to conventional flexography and combining digital speed with analog decorative options [4] - Direct-to-pack printing is gaining traction, allowing brands to print directly onto packaging, reducing waste and simplifying logistics, especially for promotional and limited-edition products [5] Emphasis on Sustainability - Sustainability is a critical driver of innovation in packaging printing, influenced by consumer awareness and regulations like the European Union's Packaging and Packaging Waste Regulation (PPWR) [6] - Eco-friendly inks, such as water-based, soy-based, and UV-cured varieties, are replacing solvent-based alternatives, reducing chemical emissions and environmental impact [7] - The industry is increasingly adopting paper-based packaging solutions to phase out single-use plastics, with recyclable, single-layer paper materials featuring high-performance barrier coatings becoming more common [8]

Financial Data and Key Metrics Changes - The company reported a significant increase in net income and earnings per share, growing well over 100% despite inflationary pressures and competition for labor [6][15] - Earnings before taxes increased by $1.5 million, reflecting a 200 basis points increase in operating margins, with EPS more than doubling from $2.2 last year to nearly $0.05 this year [17] Business Line Data and Key Metrics Changes - The company achieved a 12% year-over-year growth in top line sales, with all four business lines growing [9] - Scanning and imaging services stood out with a remarkable growth rate of 38% [15] Market Data and Key Metrics Changes - The demand for digital printing services remains high, with expectations for continued growth as companies adapt to hybrid work models [7][10] - The company noted a shift in customer behavior, with many reducing office footprints, which presents both challenges and opportunities for service offerings [11] Company Strategy and Development Direction - The company is focused on diversifying its addressable market and expanding its customer base, particularly in digital printing and scanning services [5][8] - The strategy includes leveraging a national footprint to provide comprehensive services to both paperless and paper-reliant companies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges, citing a solid capital structure and low debt levels [6][7] - The expectation is for solid sales growth throughout the year, with margins remaining strong and earnings continuing to grow [18] Other Important Information - The company ended the quarter with over $50 million in cash, maintaining a strong balance sheet [18] - The company is committed to returning shareholder value, having spent $2.4 million on dividends during the first quarter [18] Q&A Session Summary - The call concluded without any questions being raised by participants, indicating a lack of inquiries or concerns from investors during this session [19]