Millennium Group International Holdings Limited

Company Overview

Business Model: Millennium Group International Holdings Limited is a long-established total paper-based packaging solutions supplier. The Company adopts a one-stop integrated services approach, covering the entire value chain for paper-based inner and outer packaging products. This includes market research, research and development, packaging design and development, raw materials procurement, color management, print production, quality control, and delivery services. Revenue is generated from the production and sale of packaging products and corrugated products, as well as packaging products supply chain management solutions, with customers charged based on the total solution rather than individual value-added services.

Market Position: Founded in 1978, Millennium Group International Holdings Limited is a third-generation family-owned business with over 40 years of industry experience in the design and production of packaging and corrugated products. The Company differentiates itself through its integrated service model, aiming for cost-effectiveness and time efficiency for customers. Its key operating subsidiary, Millennium Shenzhen, has been accredited as a High-tech enterprise from December 2020 to December 2026, entitling it to a preferential tax rate of 15%. The Company also operates an ISTA-certified product testing laboratory, compliant with TAPPI standards, and has Amazon recognition for product packaging.

Recent Strategic Developments:

• Operational Consolidation: On April 22, 2024, the Company commenced the voluntary liquidation of Yee Woo Paper Industry (Shenzhen) Co., Ltd. (YWSZ), consolidating part of its corrugated products manufacturing operations into Millennium Printing (Shenzhen) Co., Ltd. (MPSZ). This initiative aims to maximize production efficiency and minimize production costs.
• Vietnam Expansion: The Company has invested in a newly completed manufacturing facility in Vietnam (MP Vietnam factory commenced operations in June 2024) and operates a supply chain management business in Vietnam to service global clients sourcing packaging needs from Vietnam and other ASEAN countries.
• Management Changes: Effective June 30, 2024, Mr. Yau Fai Lai resigned as director and Mr. Sun Wai But resigned as independent director. Mr. Hok Han Ko was appointed to the audit committee and Mr. Hon Wai Ku to the nominating committee.
• Auditor Change: On January 5, 2023, WWC, P.C. was dismissed as the Company's auditor, and Wei, Wei & Co., LLP was appointed as the new independent registered public accounting firm.

Geographic Footprint: The Company is headquartered in Hong Kong with significant operations in the People’s Republic of China (PRC) and Vietnam. It operates two production facilities in Guangdong Province of the PRC and one in Vietnam. The Company also has offices in Hong Kong and Vietnam to service customers outside the PRC. Products are delivered globally to, among others, PRC, Hong Kong, Vietnam, Myanmar, Australia, Indonesia, Cambodia, Taiwan, Thailand, United States, India, and Germany.

Cross-Border Operations: Millennium Group International Holdings Limited operates through a network of wholly-owned subsidiaries across multiple jurisdictions:

• Hong Kong: Millennium Investment International Limited, Millennium Strategic International Limited, Wah Tong Investment International Limited, Yee Woo Paper Investment International Limited, Millennium Printing International Limited, Millennium Packaging Group International Limited, Yee Woo Paper Packaging (HK) Company Limited, and Millennium Holdings International Limited. These entities primarily engage in investment holding and trading of paper-based packaging.
• PRC: Millennium Printing (Shenzhen) Co., Ltd. (investment holding and manufacturing), Putian Xiqi Branding Strategy Co., Ltd. (trading), Millennium Packaging Technology (Huizhou) Co., Ltd. (dormant), Millennium (Huizhou) Technology Co., Ltd. (property holding), and Huizhou Yimeinuo Industry Co., Ltd. (property holding).
• Vietnam: MPG Global Company Limited (trading), Yee Woo Vietnam Paper Products Company Limited (dormant), and Millennium Printing and Packaging Technology (Vietnam) Co., Ltd. (manufacturing).
• British Virgin Islands (BVI): Millennium Group Investment (BVI) Limited (investment holding).
• Singapore: MPG Global Investment PTE.LTD (investment holding), MPG Creative Solution (SG) PTE. LTD (80% owned, dormant).
• Indonesia: PT Millennium Investment Indonesia (investment holding), PT Millennium Printing and Packaging Technology (dormant). The Company's cross-border operations are subject to various regulatory frameworks in Hong Kong, PRC, and Vietnam, including business registration, labor protection, environmental protection, foreign investment, and taxation laws.

Financial Performance

Revenue Analysis

Profitability Metrics (2025):

• Gross Margin: 18.5%
• Operating Margin: -23.7%
• Net Margin: -24.9%

Investment in Growth:

• R&D Expenditure: $241,925 (1.0% of revenue)
• Capital Expenditures: $2,023,740 (Purchases of property, plant and equipment)
• Strategic Investments: The Company made investments in acquisitions of land to build new production plants, including a newly completed manufacturing facility in Vietnam. It also consolidated operations of Yee Woo Paper Industry (Shenzhen) Co., Ltd. into Millennium Printing (Shenzhen) Co., Ltd.

Currency Impact Analysis:

• Foreign exchange impact on revenue and earnings: The Company's reporting currency is the U.S. dollar, while the functional currencies of its subsidiaries are Hong Kong Dollar (HKD), Renminbi (RMB), Vietnamese Dong (VND), and Singapore Dollar (SGD). Fluctuations in these exchange rates affect the reported U.S. dollar value of results.
• Hedging strategies and effectiveness: The Company does not currently engage in currency hedging transactions, and the availability and effectiveness of such hedges in China are limited.
• Functional currency considerations: Gains and losses from the re-measurement of assets and liabilities denominated in currencies other than the functional currency are included in the consolidated statements of operations. Translation adjustments are included in accumulated other comprehensive income (loss).

Business Segment Analysis

(Note: The Company's Chief Executive Officer, as the chief operating decision-maker, reviews consolidated financial results and has determined that the Company has only one reportable segment. The following breakdown is based on revenue by product category as disclosed in the filing.)

Packaging products

Financial Performance:

• Revenue: $15,746,534 (-29.5% YoY)
• Gross Profit: $3,118,254 (-58.2% YoY)
• Gross Margin: 19.8% (vs. 33.4% in 2024)
• Key Growth Drivers: Sales to industries such as footwear, sportswear, cookware, kitchenware, smartphones, and home electronics. The decline in revenue and gross profit was primarily due to higher raw material costs and lower production utilization from decreased sales volume, partially offset by a strategic focus on higher-quality, more creditworthy customers.

Product Portfolio:

• Major product lines and services: Paper-based inner packaging boxes produced using Offset Printing or Flexo Printing technology on raw papers, kraft papers, cardboards, carton papers, or corrugated paperboards.
• New product launches or major updates: Not explicitly detailed, but R&D focuses on structural and product design and production technology.

Market Dynamics:

• Competitive positioning within segment: The Company aims to differentiate through its one-stop integrated services covering the entire value chain.
• Key customer types and regional market trends: Customers include OEM factories, brand factories, and trading companies. Sales volume decreased due to economic slowdown in Mainland China, while average selling price increased due to focus on higher-quality customers.
• Regulatory environment by jurisdiction: Subject to PRC and Vietnam printing regulations, as well as general business and environmental laws.

Geographic Revenue Distribution (2025):

• Mainland China: $12,333,276 (78.3% of segment revenue)
• Hong Kong SAR: $1,533,705 (9.7% of segment revenue)
• Vietnam: $842,890 (5.4% of segment revenue)
• Other Southeast Asian countries: $403,617 (2.6% of segment revenue)
• Australia: $219,659 (1.4% of segment revenue)
• United States of America: $57,456 (0.4% of segment revenue)
• Other countries: $355,931 (2.3% of segment revenue)

Corrugated products

Financial Performance:

• Revenue: $5,173,576 (-56.3% YoY)
• Gross Profit: $708,042 (vs. -$144,322 in 2024)
• Gross Margin: 13.7% (vs. -1.2% in 2024)
• Key Growth Drivers: Sales to industries such as food and beverage, paper and packaging, non-food-and-beverage-consumables, logistics, e-commerce, and home electronics. The significant decrease in revenue was primarily due to the voluntary liquidation of Yee Woo Paper Industry (Shenzhen) Co., Ltd. and consolidation of its operations, during which corrugated products were sold at a lower price to facilitate the process. The gross margin improved from negative in 2024, indicating a stabilization post-consolidation.

Product Portfolio:

• Major product lines and services: Outer packaging boxes made of corrugated paperboards, manufactured in different sizes, shapes, thickness, and strength according to customer specifications.
• New product launches or major updates: Not explicitly detailed.

Market Dynamics:

• Competitive positioning within segment: The Company aims to maintain competitive edge through machinery, technical know-how, and sales capabilities.
• Key customer types and regional market trends: Customers include OEM factories, brand factories, and trading companies. Sales volume decreased due to economic slowdown in Mainland China.
• Regulatory environment by jurisdiction: Subject to PRC and Vietnam printing regulations, as well as general business and environmental laws.

Geographic Revenue Distribution (2025):

• Mainland China: $3,087,022 (59.7% of segment revenue)
• Hong Kong SAR: $241,470 (4.7% of segment revenue)
• Vietnam: $192,948 (3.7% of segment revenue)
• Other Southeast Asian countries: $478,117 (9.2% of segment revenue)
• Australia: $921,896 (17.8% of segment revenue)
• United States of America: $150,004 (2.9% of segment revenue)
• Other countries: $102,119 (2.0% of segment revenue)

Packaging products supply chain management solution

Financial Performance:

• Revenue: $4,414,039 (+1.5% YoY)
• Gross Profit: $858,822 (-13.3% YoY)
• Gross Margin: 19.5% (vs. 22.8% in 2024)
• Key Growth Drivers: Solutions include brand packing design and engineering, production technical consultancy, packaging testing, print version management, packaging pricing management, supply localization, order and production site allocation, delivery and warehousing arrangement, print quality control, sustainability management, and corporate social responsibility management. Revenue saw slight growth, but gross margin declined due to higher raw material costs and lower production utilization.

Product Portfolio:

• Major product lines and services: Comprehensive supply chain management solutions for packaging products, targeting local and distant customers, especially those sourcing from Vietnam and ASEAN countries.
• New product launches or major updates: Creative graphic design solution center and packaging structural design and engineering center.

Market Dynamics:

• Competitive positioning within segment: Focus on integrated services and supply localization to mitigate disruptions and enhance efficiency.
• Key customer types and regional market trends: Global customers, including Amazon sellers, seeking tailored packaging solutions and supply chain efficiency.
• Regulatory environment by jurisdiction: Subject to various trade and business regulations in operating jurisdictions.

Geographic Revenue Distribution (2025):

• Mainland China: $678 (0.02% of segment revenue)
• Hong Kong SAR: $1,624,717 (36.8% of segment revenue)
• Vietnam: $305,467 (6.9% of segment revenue)
• Other Southeast Asian countries: $1,386,043 (31.4% of segment revenue)
• United States of America: $1,097,134 (24.9% of segment revenue)

International Operations & Geographic Analysis

Revenue by Geography:

International Business Structure:

• Subsidiaries: The Company operates through wholly-owned subsidiaries in Hong Kong, PRC, Vietnam, British Virgin Islands, Singapore, and Indonesia. These subsidiaries serve various functions including investment holding, manufacturing of paper-based packaging, trading of paper-based packaging, and property holding.
• Joint Ventures: Not explicitly mentioned in the filing.
• Licensing Agreements: Not explicitly mentioned in the filing.

Cross-Border Trade:

• Export Markets: Products are delivered globally to PRC, Hong Kong, Vietnam, Myanmar, Australia, Indonesia, Cambodia, Taiwan, Thailand, United States, India, and Germany. The Company's supply chain management business in Vietnam services global clients sourcing packaging needs from Vietnam and other ASEAN countries.
• Import Dependencies: Major raw materials, primarily paper, are procured from approved paper manufacturers and suppliers primarily in the PRC and Southeast Asia. The Company anticipates increasing reliance on imported raw materials in the future.
• Transfer Pricing: The Company is subject to Hong Kong's Inland Revenue Ordinance and PRC's Enterprise Income Tax Law provisions requiring arm's length pricing for related party transactions and allowing tax authorities to make adjustments.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Not explicitly mentioned for the fiscal years ended June 30, 2025, 2024, and 2023.
• Dividend Payments: No dividends were declared for the years ended June 30, 2025, and 2024. The Company intends to retain all earnings to support operations and finance business growth and development. Previous recapitalization exercises in 2020 and 2022 involved dividend declarations with waivers and subsequent capitalization as additional paid-in capital to optimize capital structure.
• Dividend Yield: Not applicable as no dividends were paid.
• Future Capital Return Commitments: No specific future capital return commitments are disclosed, as the focus is on reinvestment.

Balance Sheet Position (as of June 30, 2025):

• Cash and Equivalents: $10,689,219
• Total Debt (Bank borrowings): $6,108,552
• Net Cash Position: $4,580,667
• Credit Rating: Not disclosed.
• Debt Maturity Profile: Bank borrowings of $6,108,552 are classified as current liabilities due to repayment on demand clauses, despite contractual maturities extending to November 2027 and June 2027. The weighted-average interest rate for bank borrowings was 6.62% for the year ended June 30, 2025.

Cash Flow Generation:

• Operating Cash Flow: ($1,719,389) (Net cash used in operating activities for 2025)
• Free Cash Flow: ($3,743,129) (Operating Cash Flow of -$1,719,389 minus Capital Expenditures of $2,023,740)
• Cash Conversion Metrics: Not explicitly detailed.

Currency Management:

• Cash holdings by major currencies (as of June 30, 2025): HKD $5,870,022, RMB $2,256,948, USD $2,412,958, VND $149,291.
• Natural hedging through operational diversification: Not explicitly detailed, but operations in multiple countries (PRC, Hong Kong, Vietnam) may offer some natural diversification.
• Financial hedging instruments and strategies: The Company does not currently engage in currency hedging transactions.

Operational Excellence

Production & Service Model: The Company adopts a highly automated production process for both packaging and corrugated products, utilizing high-speed equipment and machinery. Production is planned based on actual purchase orders and delivery schedules, leveraging a computerized production planning system to enhance inventory turnover and efficiency. The one-stop integrated service approach covers the entire value chain, from market research and R&D to product design, raw materials procurement, color management, print production, quality control, and delivery.

Global Supply Chain Architecture: Key Suppliers & Partners:

• Raw Materials: Paper (various types and weights) is procured from approved paper manufacturers and suppliers primarily in the PRC and Southeast Asia. The Company does not typically enter into long-term supply contracts or commit minimum quantities.
• Logistics: Products are delivered by the Company's in-house logistics team, external logistics service providers, or logistics forwarders engaged by customers.

Facility Network:

• Manufacturing:
  • MP Production Site (Shenzhen, PRC): Approximately 36,000 sq.m. GFA, includes one factory, one ISTA-certified product testing laboratory, staff dormitory, and sewage treatment facilities. Houses four offset printing production lines, two flexo printing production lines, and one corrugated production line.
  • Yee Woo Production Site (Shenzhen, PRC): Includes one factory and staff dormitory. Operations were substantially wound down and consolidated into MP Production Site starting April 22, 2024.
  • MP Vietnam Production Site (Vietnam): Houses one corrugated products production line and two offset printing production lines.
  • Huizhou Yimeinuo Industry Co., Ltd. (PRC): Property holding.
• Research & Development: Dedicated R&D department with 40 staff members (as of June 30, 2025), focusing on structural and product design, and production technology.
• Distribution: Warehousing and logistics are managed internally and through external providers, with costs borne by the Company and included in selling prices.

Operational Metrics:

• Production Lead Time: 7 to 10 days for repeated packaging product orders, 10 to 15 days for new packaging products. 3 to 5 days for repeated corrugated product orders, 5 to 7 days for new corrugated products.
• Annual Maximum Production: Approximately 300 million units combined across all production sites.
• Inventory Management: Aims for optimal inventory levels, typically maintaining a 2-month supply of paper. Procurement is primarily back-to-back based on purchase orders, supplemented by buffer procurement based on internal estimations.
• Quality Control: ISO 9001:2015 certified and G7 Master Printer Certificate of Excellence. Comprehensive internal quality control from raw materials to finished goods, with 45 quality control personnel.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: The sales and marketing team (38 members as of June 30, 2025) is responsible for sales, marketing, and customer liaison.
• Channel Partners: Not explicitly detailed, but the Company generates new business through referrals from existing customers.
• Digital Platforms: Not explicitly detailed, but the ISTA-certified laboratory's Amazon recognition suggests engagement with e-commerce businesses.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: The Company had one significant customer (Customer A) accounting for 20.4% of total revenues in 2025. In 2024, Customer B accounted for 18.8% of total revenues.
• Strategic Partnerships: Not explicitly detailed, but long-standing relationships with major customers are critical.
• Customer Concentration: The five largest customers accounted for 48.7% of total revenues in 2025, indicating significant customer concentration risk. Accounts receivable concentration as of June 30, 2025: Customer A (30.8%), Customer C (12.0%), Customer D (10.3%).

Regional Market Penetration:

• Mainland China: 60.9% of total revenue in 2025, but experienced a significant decline in sales volume due to economic slowdown.
• Growth Markets: Other Southeast Asian countries showed 11.1% growth in 2025, indicating emerging market initiatives. The Vietnam office oversees sales transactions in Southeast Asia.
• Competitive Position: The Company faces competition from other packaging suppliers in the PRC and aims to maintain its competitive edge through integrated services and quality.

Competitive Intelligence

Global Market Structure & Dynamics

Industry Characteristics: The paper-based packaging industry is capital and technology intensive. It is dependent on overall global economic conditions and consumer spending. Raw material prices (e.g., paper) are subject to volatility. The industry faces increasing competitive pressure and requires continuous investment in new machinery and technology.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: The filing states the Company faces competition from a number of packaging suppliers in the PRC. Specific competitor names are not disclosed. Regional Competitive Dynamics: The competitive landscape varies by major geographic markets. The Company's ability to maintain its competitive edge depends on its machinery, technical know-how, expertise, and sales and marketing capabilities compared to local and international competitors.

Risk Assessment Framework

Strategic & Market Risks

• Global Market Dynamics: The business is sensitive to global economic conditions, consumer spending, and geopolitical tensions (e.g., Ukraine conflict). A prolonged slowdown in the global or Chinese economy could reduce demand for products and services.
• Technology Disruption: Failure to invest in new machines and technology could adversely affect competitive edge.
• Customer Concentration: High reliance on a few major customers (top five customers accounted for 48.7% of total revenues in 2025). Loss of any major customer or significant reduction in sales could materially affect profitability.
• Business Expansion: Risks associated with managing business expansion, including into new areas, and integrating acquired businesses, which may place substantial demands on resources and may not achieve expected benefits.

Operational & Execution Risks

• Global Supply Chain Vulnerabilities: Dependence on raw material supply (primarily paper) from PRC and Southeast Asia, subject to price volatility, shortages, labor disputes, weather, transportation disruptions, and trade restrictions. Increasing reliance on imported raw materials amplifies these risks.
• Regional Disruptions: Operational risks at production facilities and warehouses (e.g., machinery failure, power disruption, natural disasters, fire, industrial accidents) could lead to temporary or permanent shutdowns.
• Trade Restrictions: Potential for trade restrictions, tariffs, or changes in import policies by governments affecting raw material imports and product exports.
• Product Quality & Liability: Issues or defects with products may lead to claims, recalls, or regulatory actions, harming reputation and financial condition.
• Workforce Management: Challenges in attracting, training, and retaining a skilled workforce and key personnel, as well as increasing labor costs in the PRC.

Financial & Regulatory Risks

• Currency & Financial Risks: Fluctuations in exchange rates (RMB, HKD, VND, SGD against USD) can materially affect reported results. Limited hedging options in China.
• Interest Rate Risk: Bank borrowings have floating interest rates (average 6.62% in 2025).
• Credit & Liquidity: Dependence on bank loans and shareholder equity for capital. Potential disruptions in capital and credit markets could affect availability and cost of funds. Failure to evaluate customer credit profiles or delays in accounts receivable settlement could impact operating cash flow.
• Multi-Jurisdictional Compliance: Subject to complex and evolving laws and regulations in Hong Kong, PRC, and Vietnam, including those related to foreign investment, printing industry, information security, data protection, labor, environmental protection, fire safety, land use, and import/export.
• PRC Regulatory Risks: Uncertainties in interpretation and enforcement of PRC laws (e.g., M&A Rules, Cybersecurity Review Measures, Foreign Investment Law, Article 177 of PRC Securities Law). Potential for additional compliance requirements, fines, or restrictions on operations, dividend payments, or repatriation of funds.
• Tax Regulations: PRC enterprise income tax, dividend withholding tax, and transfer pricing regulations. Uncertainties regarding "de facto management body" status and "beneficial owner" status for tax treaty benefits.
• U.S. Regulatory Scrutiny: As a U.S.-listed Chinese company, subject to scrutiny, criticism, and negative publicity, potentially leading to increased costs, shareholder lawsuits, or delisting risks (e.g., Holding Foreign Companies Accountable Act, PCAOB inspection access).
• PFIC Status: Risk of being classified as a Passive Foreign Investment Company (PFIC) for U.S. federal income tax purposes, which could have adverse tax consequences for U.S. Holders.

Geopolitical & External Risks

• Country-Specific Risks: Social and political instability in Vietnam, high inflation in Vietnam, and less developed legal systems in emerging economies.
• Economic Risk: Prolonged slowdown in global or Chinese economy.
• Geopolitical Events: Impact of war (e.g., Ukraine conflict), terrorist attacks, epidemics (e.g., COVID-19), natural disasters, and extreme weather conditions on operations and global markets.

Innovation & Technology Leadership

Research & Development Focus: Global R&D Network: The Company has a dedicated research and development department comprising 40 staff members as of June 30, 2025. R&D efforts are market-driven and focus on structural and product design, as well as production technology to enhance customer operational efficiency. Innovation Pipeline: R&D has facilitated the successful development and invention of technologies, leading to registered patents. Intellectual Property Portfolio:

• Patent Strategy: As of the date of the annual report, the operating entity holds 36 patents in China, covering various aspects such as protective display stands, tablet box packing, dust removal systems, universal paper racks, UV dryers, internal card supports, mobile phone protection covers, printing computerization methods, ink automatic coding equipment, paper placement and cutting devices, anti-wrinkle treatments, automatic sticky box machine folding calibration, chamfering machines, paper feed mechanisms, humidification devices, display boxes, and packaging boxes for electronic products.
• Licensing Programs: Not explicitly mentioned.
• IP Litigation: Not explicitly mentioned. Technology Partnerships: Not explicitly mentioned.

Leadership & Governance

Executive Leadership Team

International Management Structure: The Company's senior management is based in Hong Kong, where strategies are formulated and key meetings are held. Regional offices in Hong Kong and Vietnam service customer orders outside the PRC, with the Vietnam office overseeing sales in Southeast Asia.

Board Composition: The Board of Directors consists of five directors, with three independent directors (Hok Han Ko, Hon Wai Ku, and Hung Leung Tsang) who satisfy Nasdaq Rule 5605 independence requirements. The Board has established an audit committee, a compensation committee, and a nominating committee, each with a charter. Hon Wai Ku chairs the audit committee, Hung Leung Tsang chairs the compensation committee, and Hok Han Ko chairs the nominating committee. The Company may follow certain home country practices (Cayman Islands) in lieu of some Nasdaq corporate governance requirements.

Regulatory Environment & Compliance

Multi-Jurisdictional Regulatory Framework: Primary Regulatory Environments:

• Hong Kong: Subject to Business Registration Ordinance, Mandatory Provident Fund Schemes Ordinance, Occupational Safety and Health Ordinance, Employees’ Compensation Ordinance, and Inland Revenue Ordinance (including transfer pricing provisions).
• PRC: Subject to Printing Regulations, Interim Provisions on the Qualifications of Printing Operations, Provisions on the Administration of Undertaking of Presswork Printing, Foreign Investment Law (including Negative List), Company Law, regulations on Information Security and Privacy Protection (Cyber Security Law, Data Security Law), House Leasing regulations, Labor Protection laws (Labor Law, Labor Contract Law, social insurance, housing provident fund), Environmental Protection laws (Environmental Protection Law, Environmental Impact Assessment Law, Pollutant Discharge Licensing), Fire Protection Law, Land Use Rights regulations, and Import and Export goods regulations.
• Vietnam: Subject to laws on Foreign Investment (LOI 2020, LOE 2020), Land and Real Properties, Environmental Protection, Employment (Labor Code), Taxation (Corporate Income Tax, Value Added Tax, Business License Tax, Foreign Contractor Tax), Foreign Exchange Control, Trading Activities, and Printing.

Cross-Border Compliance:

• Export Controls: Subject to PRC and Vietnam regulations on import and export of goods.
• Sanctions Compliance: Not explicitly detailed, but general compliance with multi-jurisdictional sanctions is implied by operating in various countries.
• Anti-Corruption: Not explicitly detailed, but general compliance with anti-bribery laws is implied.

International Tax Strategy:

• Transfer Pricing: Subject to Hong Kong's IRO and PRC's EIT Law, which require arm's length pricing for related party transactions and allow tax authorities to make adjustments.
• Tax Treaties: PRC dividends to Hong Kong resident enterprises may be subject to a reduced 5% withholding tax rate under the Double Tax Avoidance Arrangement, provided certain conditions (e.g., beneficial owner status) are met.
• BEPS Compliance: Not explicitly detailed, but the PRC's SAT Bulletin 7 addresses indirect transfers of assets and aims to prevent tax avoidance.
• Corporate Income Tax: Cayman Islands (exempt), BVI (exempt), Hong Kong (16.5%), PRC (25%, with 15% for High-tech enterprises like Millennium Shenzhen), Vietnam (20%, with potential preferential rates).

Environmental & Social Impact

Global Sustainability Strategy: The Company's PRC operations are subject to the Environmental Protection Law of the PRC, which requires measures to prevent and control pollution from waste gas, water, residues, dust, and noise. Construction projects are subject to environmental impact assessments and acceptance checks.

Regional Sustainability Initiatives:

• PRC: Compliance with specific environmental protection laws and regulations, including those on air pollution, solid waste, water pollution, environmental noise, and environmental protection tax.
• Supply Chain: Not explicitly detailed, but the Company's "Packaging products supply chain management solution" includes sustainability management.

Social Impact by Region:

• Community Investment: Not explicitly detailed.
• Labor Standards: The Company is subject to labor laws in Hong Kong (MPFSO, OSHO, ECO) and the PRC (Labor Law, Labor Contract Law, social insurance, housing provident fund). The Company has not adequately paid social insurance and housing provident fund contributions for its employees in the past, but states it has no under-payment accrued for 2025, 2024, and 2023, and has received oral confirmation for a 3-year transitional period to make adequate contributions.

Currency Management & Financial Strategy

Multi-Currency Operations: The Company operates in multiple currencies, with functional currencies including HKD, RMB, VND, and SGD, and a reporting currency of USD.

Currency Exposure (as of June 30, 2025):

Hedging Strategies:

• Transaction Hedging: The Company has not entered into any hedging transactions to reduce its exposure to foreign currency exchange risk.
• Translation Hedging: Not explicitly detailed.
• Economic Hedging: Not explicitly detailed, but operational diversification across multiple countries may provide some natural economic hedging. The Company acknowledges that very limited hedging options are available in China.