| RIGHT-OF-USE ASSETS AND LEASE LIABILITIES |
| 9. |
RIGHT-OF-USE ASSETS AND LEASE LIABILITIES |
The operating leases primarily consist of leases
of office premises in Hong Kong and PRC, and printing machines in Hong Kong.
Supplemental balance sheet information related
to operating leases are as follows:
| | |
As of December 31, | |
| | |
2024 | | |
2025 | | |
2025 | |
| | |
HK$ | | |
HK$ | | |
US$ | |
| Operating lease right-of-use assets | |
| | |
| | |
| |
| Office premises | |
| 5,166,836 | | |
| 18,978,978 | | |
| 2,438,423 | |
| Printing machines | |
| 1,309,309 | | |
| 946,127 | | |
| 121,559 | |
| Operating lease right-of-use assets | |
| 6,476,145 | | |
| 19,925,105 | | |
| 2,559,982 | |
| | |
| | | |
| | | |
| | |
| Current operating lease obligation | |
| | | |
| | | |
| | |
| Office premises | |
| 2,473,161 | | |
| 9,639,602 | | |
| 1,238,498 | |
| Printing machines | |
| 363,182 | | |
| 373,529 | | |
| 47,991 | |
| Total current operating lease obligation | |
| 2,836,343 | | |
| 10,013,131 | | |
| 1,286,489 | |
| | |
| | | |
| | | |
| | |
| Non-current operating lease obligation | |
| | | |
| | | |
| | |
| Office premises | |
| 2,693,675 | | |
| 9,923,031 | | |
| 1,274,913 | |
| Printing machines | |
| 946,127 | | |
| 572,598 | | |
| 73,568 | |
| Total non-current operating lease obligation | |
| 3,639,802 | | |
| 10,495,629 | | |
| 1,348,481 | |
| | |
| | | |
| | | |
| | |
| Total operating lease obligation | |
| 6,476,145 | | |
| 20,508,760 | | |
| 2,634,970 | |
Operating lease expense for the years ended December
31, 2023, 2024 and 2025 was HK$572,229, HK$295,374 and HK$10,397,657 (US$1,335,893), respectively.
The undiscounted future minimum lease payment
schedule are as follows:
| | |
As of December 31, 2025 | |
| For the years ending December 31, | |
HK$ | | |
US$ | |
| 2026 | |
| 10,502,899 | | |
| 1,349,415 | |
| 2027 | |
| 9,733,729 | | |
| 1,250,591 | |
| 2028 | |
| 899,214 | | |
| 115,531 | |
| 2029 | |
| 36,720 | | |
| 4,718 | |
| Total minimum lease payments | |
| 21,172,562 | | |
| 2,720,255 | |
| Less: imputed interest component | |
| (663,802 | ) | |
| (85,285 | ) |
| Lease liabilities recognized in the consolidated balance sheets | |
| 20,508,760 | | |
| 2,634,970 | |
Other supplemental information about the Company’s
operating lease as of December 31, 2024 and 2025:
| | | As of
December 31,
2024 | | | As of
December 31,
2025 | | | Weighted average discount rate* | | | 4.56 | % | | | 3.20 | % | | Weighted average remaining lease term (years) | | | 2.48 | | | | 2.22 | |
| * | The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments as the implicit rate cannot be readily determined. |
|