Annual Report 2019

MANAGEMENT DISCUSSION AND ANALYSIS 管理層討論及分析 ANNUAL REPORT 2019 年度報告 9 FINANCIAL REVIEW (Continued) Contingent Liabilities Tax audits were conducted by the Inland Revenue Department (“IRD”) on the Company and its subsidiaries for the years of assessment from 2004/2005 to 2012/2013 in the previous years. On 28th October, 2019, a settlement proposal (the “Settlement Proposal”) regarding the above tax audits and the year of assessment from 2013/2014 to 2018/2019 was submitted by the Company to the IRD, which was approved by the IRD on 17th December, 2019. Based on the Settlement Proposal, no additional tax provision need to be provided by the Group and previous years’ tax provision amounting to HK$8,310,000 and interest payable of HK$1,773,000 were settled by the tax reserve certificates of HK$11,171,000 purchased in prior years. Further, a tax penalty of HK$1,385,000 was charged by the IRD. OUTLOOK We expect the global economy and the Chinese economy to slow going forward, and for overall demand to decline slightly. In order to resolve the raw materials shortage facing our Group, we are now actively pursuing the installation of brand new production facilities at a new factory leasing in Southeast Asia, to convert waste paper into pulp prior to shipping back to our Chinese Mainland facilities for production of containerboard, in order to reduce production cost and increase our sales volume. We will continue to strive to gain pricing power and reasonably transfer our operating costs to our customers. We promise that we will continue to strive to improve production efficiency, increase our sales volume, reduce raw materials wastage and energy use, in order to offset the impact of rising costs, and endeavor to improve the Group’s profitability. CLARIFICATION TO PROFIT WARNING ANNOUNCEMENTS Reference is made to the announcements of the Company dated 28th February, 2020 and 5th March, 2020 (the “Profit Warning Announcements”) in relation to the profit warning of the results of the Company for the year ended 31st December, 2019. The Company would like to clarify that the actual loss attributable to owners of the Company for the year ended 31st December, 2019 is amounted to HK$7.9 million, which is less than the expected amount stated in the Profit Warning Announcements. 財務回顧 （續） 或然負債 香港稅務局（「稅務局」）已於過往年度就本公司及其附 屬公司之二零零四年╱二零零五年至二零一二年╱二 零一三年課稅年度進行稅務稽查。於二零一九年十月 二十八日，本公司就上述稅務稽查及二零一三年╱二 零一四年至二零一八年╱二零一九年課稅年度向稅務 局提交和解建議書（「和解建議書」），且和解建議書於 二零一九年十二月十七日獲稅務局批准。根據和解建 議書，本集團無須計提額外稅項撥備，而往年之稅 項撥備 8,310,000 港元及應付利息 1,773,000 港元已通 過於過往年度購買之 11,171,000 港元之儲稅券結算， 此外，稅務局已徵收 1,385,000 港元稅款罰金。 展望 我們預期環球及中國經濟放緩，整體需求略為下跌。 集團為了解決原材料短缺問題，現已積極籌備於東 南亞租用新廠房安裝全新的生產線，將廢紙造成紙 漿後運送到國內之現有廠房生產箱板紙，藉此降低 生產成本及增加銷售量。我們會繼續爭取在價格上 的主導性，並把經營成本合理地轉嫁予客戶。我們 承諾繼續以提升生產效率、增加銷量、降低原料損 耗及能源消耗以抗衡成本上漲為重點策略，竭力提 高集團的利潤。 盈利警告公佈之澄清 茲提述本公司日期為二零二零年二月二十八日及二零 二零年三月五日的公佈（「盈利警告公佈」），內容有關 本公司截至二零一九年十二月三十一日止年度的業績 盈利警告。本公司謹此澄清，截至二零一九年十二 月三十一日止年度，本公司擁有人應佔的實際虧損為 7,900,00 港元，低於盈利警告公佈所述的預期金額。