Prosperous Printing Company Limited released an update regarding the auditor’s disclaimer of opinion attached to its 2024 financial statements and detailed the corrective actions already in place.
The board reported six main measures:
1. Governance and banking engagement: Non-executive director Lam John Cheung-wah, with extensive banking experience, is advising on loan matters. Management is negotiating with lenders to waive technical breaches and extend or restructure defaulted borrowings.
2. Liquidity initiatives: Operations continue to be funded by internal cash flow and existing facilities while alternative financing channels are actively pursued. A new lender provided additional funding in Q4 2025.
3. Operational resumption in Hong Kong: Production activities have restarted at a newly rented Chai Wan factory unit covering typesetting, colour matching, design, quality control, logistics and clerical functions.
4. Business diversification: Since Q3 2025 the group has added design services, 3D paper printing and packaging solutions, incorporating eco-friendly materials to broaden its product mix and expand value-added services.
5. Revenue rebound: Group revenue reached HK$22.20 million in 2025, with HK$21.00 million generated during the second half, versus HK$1.20 million for the first six months.
6. Cost discipline: Administrative expenses and capital outlays are being reviewed continually, with further discretionary spending cuts under assessment to preserve liquidity.
Quarterly progress announcements will be issued until the auditor’s disclaimer is fully resolved.