Key Insights

• China-Hongkong Photo Products Holdings to hold its Annual General Meeting on 8th of August
• CEO Stanley Sun's total compensation includes salary of HK$2.09m
• The total compensation is 33% higher than the average for the industry
• China-Hongkong Photo Products Holdings' EPS declined by 30% over the past three years while total shareholder return over the past three years was 16%

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Despite positive share price growth of 16% for China-Hongkong Photo Products Holdings Limited (HKG:1123) over the last few years, earnings growth has been disappointing, which suggests something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 8th of August. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for China-Hongkong Photo Products Holdings

How Does Total Compensation For Stanley Sun Compare With Other Companies In The Industry?

Our data indicates that China-Hongkong Photo Products Holdings Limited has a market capitalization of HK$136m, and total annual CEO compensation was reported as HK$3.0m for the year to March 2025. That is, the compensation was roughly the same as last year. In particular, the salary of HK$2.09m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Hong Kong Retail Distributors industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.3m. Accordingly, our analysis reveals that China-Hongkong Photo Products Holdings Limited pays Stanley Sun north of the industry median.

Talking in terms of the industry, salary represented approximately 85% of total compensation out of all the companies we analyzed, while other remuneration made up 15% of the pie. China-Hongkong Photo Products Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

China-Hongkong Photo Products Holdings Limited's Growth

China-Hongkong Photo Products Holdings Limited has reduced its earnings per share by 30% a year over the last three years. It saw its revenue drop 9.2% over the last year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has China-Hongkong Photo Products Holdings Limited Been A Good Investment?

With a total shareholder return of 16% over three years, China-Hongkong Photo Products Holdings Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for China-Hongkong Photo Products Holdings that investors should think about before committing capital to this stock.

Important note: China-Hongkong Photo Products Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.