香港交易及結算所有限公司及香港聯合交易所有限公司對本公告內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示概不會就本公告全部或任何部分內容而產生或因依賴該等內容而 引致的任何損失承擔任何責任。 HANG SANG (SIU PO) INTERNATIONAL HOLDING COMPANY LIMITED （於開曼群島註冊成立的有限公司） （股份代號：3626） 截至二零二三年六月三十日止年度之全年業績公告 Hang Sang (Siu Po) International Holding Company Limited（「本公司」）董事（「董事」）會（「董事會」）謹 此公佈本公司及其附屬公司（統稱「本集團」）截至二零二三年六月三十日止年度之綜合財務業績，連 同上年度之比較數字如下： 綜合損益及其他全面收益表 截至二零二三年六月三十日止年度 二零二三年 二零二二年 附註 千港元 千港元 收益 4 54,414 75,510 銷售成本 (45,01 6) (52,901) 毛利 9,398 22,609 ...

Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 15%[14]. - The net profit for the period was reported at HKD 50 million, representing a 10% increase compared to the previous period[14]. - Revenue for the six months ended 31 December 2022 was HK$26,487,000, a decrease of 33.2% compared to HK$39,864,000 in the same period of 2021[23]. - Gross profit for the same period was HK$5,520,000, down 60.9% from HK$14,110,000 in 2021[23]. - The Group's revenue for the six months ended December 31, 2022, was HK$26,487,000, a decrease of 33.5% compared to HK$39,864,000 for the same period in 2021[68]. - The Group reported a loss before income tax of HK$11,010,000 for the six months ended December 31, 2022, compared to a profit of HK$1,413,000 in the same period of 2021[106]. - The Group reported a loss and total comprehensive expense of approximately HK$11.0 million for Period 2022, compared to a profit of approximately HK$1.4 million for Period 2021[178]. User and Market Data - User data showed an increase in active users by 20%, reaching a total of 1.2 million[14]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[14]. Product and Technology Development - New product launches are expected to contribute an additional HKD 30 million in revenue for the next fiscal year[14]. - The company is investing in new technology development, allocating HKD 10 million for R&D in the upcoming year[14]. Strategic Initiatives - A strategic acquisition is in progress, which is anticipated to enhance the company's service offerings and increase customer base by 15%[14]. - The management has provided an optimistic outlook, projecting a revenue growth of 20% for the next fiscal year[14]. - The company aims to improve operational efficiency, targeting a reduction in costs by 5% through process optimization[14]. Cash Flow and Financial Position - The total cash and cash equivalents at the end of the period decreased to HK$52,775,000 from HK$61,893,000, reflecting a net decrease of HK$5,171,000[37]. - The company reported a decrease in cash generated from operations, with a cash outflow of HK$1,012,000 compared to an inflow of HK$1,040,000 in the previous year[37]. - The net cash used in financing activities was HK$4,156,000, significantly higher than HK$1,421,000 in the prior period, primarily due to increased lease rental payments[37]. - The current ratio as of December 31, 2022, was 4.01 times, down from 4.53 times as of June 30, 2022, while the quick ratio was 3.71 times, down from 4.27 times[185][189]. Assets and Liabilities - Non-current assets decreased to HK$12,039,000 from HK$18,654,000 as of 30 June 2022, reflecting a decline of 35.4%[27]. - Current assets totaled HK$63,487,000, down from HK$67,803,000 as of 30 June 2022, a decrease of 6.8%[27]. - Total equity decreased to HK$56,708,000 from HK$67,718,000, a reduction of 16.3%[28]. - Trade payables rose to HK$3,592,000 as of December 31, 2022, representing a significant increase of 27.4% from HK$2,820,000 as of June 30, 2022[136]. Impairment and Losses - The company reported an impairment loss on non-financial assets of HK$3,946,000 during the period[23]. - The Group recorded a write-down of slow-moving inventories amounting to HK$511,000 during the reporting period[74]. - The loss allowance for trade receivables increased to HK$1,436,000 as of December 31, 2022, up from HK$1,367,000 as of June 30, 2022, reflecting a 5.04% increase[131]. Revenue Segmentation - Revenue from the sale of apparel labels and packaging printing products was HK$23,029,000, down 38.5% from HK$37,434,000 in the previous year[68]. - Revenue from the sale of food, daily necessities, and utility products increased by 42.3% to HK$3,458,000 from HK$2,430,000[68]. - Reportable segment revenue for food and daily necessities was HK$23,142,000, while printing segment revenue was HK$3,458,000, resulting in a total reportable segment revenue of HK$26,600,000[74]. Operational Expenses - Selling expenses decreased by approximately HK$0.5 million to approximately HK$3.2 million for Period 2022, mainly due to reduced freight charges and sales commissions[176]. - Administrative and other operating expenses increased by approximately HK$0.6 million to approximately HK$10.7 million for Period 2022, primarily due to increased depreciation on property, plant, and equipment[177]. Compliance and Governance - The interim financial report was prepared in accordance with HKAS 34 and has been reviewed by the Audit Committee, ensuring compliance with applicable disclosure provisions[42]. - The Group has not adopted any new or amended HKFRSs that are not yet effective, and anticipates no material impact on its financial statements from future pronouncements[63].

Financial Performance - The Group recorded revenue of approximately HK$75.5 million for the year ended 30 June 2022, representing an increase of approximately 20.5% compared to HK$62.7 million for the year ended 30 June 2021[14]. - Revenue from the manufacturing and sale of apparel labels and packaging printing products increased by approximately 11.2% to approximately HK$69.7 million for FY 2022[25]. - The new business segment related to the sale and distribution of food, daily necessities, and utility products contributed approximately HK$5.8 million to the Group's revenue for FY 2022[25]. - The gross profit margin was approximately 29.9% for FY 2022, which is a slight increase of 0.3 percentage points from 29.6% in FY 2021[26]. - Loss and total comprehensive expense for FY 2022 was approximately HK$3.8 million, compared to a loss of approximately HK$3.0 million for FY 2021[14]. - Selling expenses increased due to higher freight charges during the pandemic period[26]. - Administrative and other operating expenses rose by approximately HK$0.5 million to approximately HK$20.8 million for FY 2022, attributed to the new business operations[47]. - Total comprehensive expense for FY 2022 was approximately HK$3.8 million, compared to approximately HK$3.0 million for FY 2021[48]. Business Environment - The Group's performance was impacted by the COVID-19 pandemic and ongoing geopolitical tensions, leading to decreased demand for apparel labels and packaging printing products[15]. - The business environment is expected to remain challenging in the near term due to ongoing global uncertainties[15]. - The Group plans to actively consider business diversification and seek beneficial partnerships to maximize shareholder interests[20]. - The Group plans to continue exploring suitable business opportunities to diversify and strengthen its business foundation[32]. Liquidity and Financial Position - As of June 30, 2022, the total cash and cash equivalents were approximately HK$57.9 million, a decrease of approximately HK$4.1 million from the previous year[49]. - The current ratio as of June 30, 2022, was 4.53 times, down from 5.80 times in 2021, indicating a decrease in liquidity[54]. - As of June 30, 2022, the current ratio was 4.53 (2021: 5.80) and the quick ratio was 4.27 (2021: 5.47) indicating a decrease in liquidity[58]. - The Group had no outstanding share options granted as of June 30, 2022, and no share options were granted during FY 2022[57]. - As of June 30, 2022, the Group had not pledged any assets, maintaining a clean balance sheet[65]. - The Group does not hedge its foreign currency risks as the HKD is pegged to the USD, minimizing exposure to significant currency risk[66]. - There were no material contingent liabilities identified as of June 30, 2022[73]. Corporate Governance - The company is committed to maintaining high standards of corporate governance with independent non-executive directors overseeing key committees[99]. - The company is committed to maintaining high standards of corporate governance to enhance shareholder value[123]. - The Board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[125]. - The company has complied with the Corporate Governance Code throughout the year ended June 30, 2022, with some deviations disclosed[124]. - The company has established appropriate liability insurance for directors against legal actions arising from corporate activities[134]. - The Board is responsible for formulating the Group's overall strategy and policies, including monitoring operational and financial performance[132]. - The company has a commitment to transparency and quality of disclosure in its financial reporting[123]. - The Board delegates day-to-day management to the management of principal subsidiaries while retaining final decision-making authority[133]. - The company aims to present a clear assessment of its performance, position, and prospects in its annual and interim reports[131]. - The Board held 4 regular meetings during the year ended June 30, 2022, to review overall strategy and monitor financial performance[144]. - All Directors attended 1 out of 1 general meetings, indicating full participation in shareholder engagement[160]. - Independent Non-executive Directors confirmed their independence annually, ensuring compliance with Rule 3.13 of the Listing Rules[145]. - Directors are regularly updated on governance and regulatory matters to enhance their awareness of corporate governance practices[164]. - Continuous professional development for Directors was emphasized, with training records required to be submitted annually[165]. - The Company Secretary provides updates on listing rules and regulatory requirements to all Directors[146]. - The Board is responsible for maintaining ongoing dialogue with shareholders, particularly during annual general meetings[161]. - All Directors participated in continuous professional development to refresh their knowledge and skills related to their roles[163]. - The attendance of Directors at meetings is documented, ensuring transparency and accountability[149]. - The Company ensures that all Directors are properly briefed on issues arising at board meetings[152]. - The company has maintained a board composition of three executive directors and three independent non-executive directors (INEDs), meeting the minimum requirement of the Listing Rules[177]. - All INEDs have confirmed their independence annually, and the board considers all of them to remain independent[171]. - The company has adopted a Board Diversity Policy aimed at enhancing performance quality through diversity in gender, age, cultural background, and professional experience[179]. - The Nomination Committee has reviewed the Board Diversity Policy and confirmed that the group achieved its objectives for the year ended June 30, 2022[184]. - The roles of chairman and chief executive officer are currently held by Mr. Samson Fung, which the board believes ensures consistent leadership and effective strategic planning[169]. - All directors are subject to retirement by rotation and re-election at least once every three years, ensuring accountability to shareholders[186]. Audit and Financial Oversight - The Audit Committee, comprising three INEDs, has been established in compliance with the Listing Rules[188]. - The company has received annual written confirmations of independence from all INEDs, ensuring compliance with regulatory requirements[174]. - The Audit Committee consists of three independent non-executive directors, chaired by Dr. Lu Hailin, and held two meetings during the year ended June 30, 2022[197]. - The Audit Committee reviewed the 2022 consolidated financial statements and discussed new accounting policies and significant management judgments affecting the Group's financial statements[198]. - The external auditor assessed the Group's internal controls and discussed the impact of new or revised accounting policies with the Audit Committee[198]. - The Audit Committee recommended the Board to approve the consolidated financial statements for the year ended June 30, 2022, along with the independent auditor's report[198]. - The Audit Committee serves as a vital link between the Board and the Company's auditors, ensuring the independence and objectivity of the auditors are maintained[200]. - The terms of reference for the Audit Committee were updated in 2022 to comply with Code Provision C.3.3 of the Code[197]. - The Audit Committee's responsibilities include overseeing the financial reporting process, risk management, and internal control systems of the Company[199]. - The management is responsible for preparing the Group's financial statements, while the external auditor is tasked with auditing them[199]. - The Audit Committee assists the Board by providing an independent review of the financial statements and supervising the financial reporting and internal control systems[199]. - The Audit Committee held discussions with management regarding significant judgments that impacted the Group's financial statements[198]. Leadership and Management - Mr. David Fung has over 21 years of experience in the apparel label and packaging printing industry, having co-founded Hang Sang (Siu Po) in November 1999[91]. - The company acquired A W Printing in December 1997, which specializes in trading apparel labels and packaging printing products[92]. - Mr. Alex Fung, appointed as vice president and executive director, has a background in private banking with J.P. Morgan Chase Bank, N.A.[95]. - Dr. Loke Yu, an independent non-executive director, has over 43 years of experience in accounting and auditing for private and public companies[97]. - Ms. Fung Po Yee, appointed as an independent non-executive director, has a legal background and co-founded CFN Lawyers in January 2013[107]. - The company has a strong leadership team with directors having diverse backgrounds in finance, law, and management[106]. - The leadership team includes members with international education and professional experience, enhancing the company's strategic direction[108]. - The company has established a solid foundation for future growth through strategic acquisitions and experienced management[93].

Financial Reporting - The interim financial report for the six-month period ended December 31, 2021, includes a condensed consolidated statement of profit or loss and other comprehensive income[12]. - The Group's financial position as of December 31, 2021, is detailed in the condensed consolidated statement of financial position[12]. - The report complies with Hong Kong Accounting Standard 34 "Interim Financial Reporting" as required by the Hong Kong Stock Exchange[12]. - The independent review concluded that nothing has come to attention that causes belief that the interim financial report is not prepared in accordance with HKAS 34[18]. - The report includes a condensed consolidated statement of changes in equity and a condensed consolidated statement of cash flows for the reporting period[12]. - The Group's management discussion and analysis section provides insights into performance and future outlook[12]. - The report outlines the responsibilities of the directors in preparing the interim financial report[12]. - The independent auditor conducted the review in accordance with Hong Kong Standard on Review Engagements 2410[17]. - The report is prepared for the board of directors and does not assume responsibility towards any other person[13]. - The interim financial report was authorized for issue on 25 February 2022 and has been reviewed by the Audit Committee[41]. - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[54]. - The adoption of new and amended HKFRSs had no material impact on the Group's results and financial position for the current and prior periods[56]. - Certain new and amended HKFRSs have been published but are not yet effective and have not been adopted early by the Group[64]. Financial Performance - Revenue for the six months ended 31 December 2021 was HK$39,864,000, representing a 32.5% increase from HK$30,077,000 in the same period of 2020[21]. - Gross profit for the same period was HK$14,110,000, up 37.5% from HK$10,242,000 in 2020[21]. - Profit before income tax increased to HK$1,396,000, a 59.5% rise compared to HK$876,000 in the previous year[21]. - Profit and total comprehensive income for the period was HK$1,413,000, reflecting a 25.6% increase from HK$1,125,000 in 2020[21]. - Basic and diluted earnings per share attributable to equity owners of the Company rose to HK$0.77 cents, up from HK$0.61 cents in the prior year[21]. - The profit attributable to equity owners for the six months ended December 31, 2021, was HK$1,413,000, up 25.6% from HK$1,125,000 in the same period of 2020[107]. - The gross profit margin for Period 2021 was approximately 35.4%, an increase of approximately 1.3 percentage points from 34.1% in Period 2020[156]. - The total income tax credit for the period was HK$17,000, a decrease from HK$249,000 in the previous year[104]. Financial Position - Total assets less current liabilities as of 31 December 2021 were HK$75,436,000, slightly up from HK$75,395,000 as of 30 June 2021[25]. - Net assets increased to HK$72,966,000 from HK$71,553,000, indicating a growth of 1.96%[26]. - Cash and cash equivalents were HK$61,893,000, showing a slight decrease from HK$62,047,000[25]. - The current ratio as of December 31, 2021, was 5.66 times, slightly down from 5.80 times as of June 30, 2021[187]. - The quick ratio as of December 31, 2021, was 5.29 times, compared to 5.47 times as of June 30, 2021[187]. - There were no bank or other borrowings as of December 31, 2021[186]. - The Group has not pledged any assets as of December 31, 2021, consistent with the previous period[193]. - The Group's financial instruments carried at cost or amortized cost were not materially different from their fair values as of December 31, 2021, and June 30, 2021, due to short-term maturities[152]. Cash Flow - Net cash from operating activities decreased to HK$1,344,000 from HK$5,514,000, representing a decline of approximately 75.7% year-over-year[36]. - Cash generated from operations fell to HK$1,040,000, down 77% from HK$4,547,000 in the previous year[36]. - The company reported a net cash outflow from investing activities of HK$77,000 compared to a cash inflow of HK$105,000 in the prior period[36]. - The company recorded a net decrease in cash and cash equivalents of HK$154,000, contrasting with an increase of HK$5,246,000 in the previous year[36]. - Cash and cash equivalents at the end of the period were HK$61,893,000, slightly up from HK$61,765,000 year-over-year[36]. Revenue Segmentation - Revenue from the sale of apparel labels and packaging printing products was HK$37,434,000, up from HK$30,077,000, representing a growth of 24.5%[78]. - Revenue from the sale of food, daily necessities, and utility products was HK$2,430,000, a new segment introduced in 2021[78]. - The reportable segment profit for printing was HK$3,256,000, while the food and daily necessities segment incurred a loss of HK$1,180,000, resulting in a total profit of HK$2,076,000[87]. - As of December 31, 2021, reportable segment assets totaled HK$90,490,000, with HK$86,962,000 from printing and HK$3,528,000 from food and daily necessities[87]. - Reportable segment liabilities amounted to HK$76,484,000, with HK$71,447,000 attributed to printing and HK$5,037,000 to food and daily necessities[87]. Expenses and Costs - Staff costs for the period were HK$12,076,000, slightly down from HK$12,221,000 in the previous year[100]. - The company reported a cost of inventories recognized as an expense of HK$25,754,000, an increase from HK$19,835,000 in the previous year[100]. - Selling expenses increased by approximately HK$0.4 million to approximately HK$3.7 million due to increased freight charges caused by COVID-19 disruptions[174]. - Administrative and other operating expenses rose by approximately HK$0.2 million to approximately HK$10.1 million, primarily due to the new business segment's additional costs[175]. Management and Governance - The company did not recommend any interim dividend for the six months ended December 31, 2021, compared to HK$0 for the same period in 2020[106]. - Key management personnel remuneration totaled HK$4,393,000 for the six months ended December 31, 2021, slightly down from HK$4,614,000 in the same period of 2020, a decrease of 4.8%[151]. - Discretionary bonuses for key management were not paid in 2021, compared to HK$232,000 in 2020[151]. Market Conditions - The ongoing COVID-19 pandemic and geopolitical tensions are expected to influence market confidence and lead to cautious business strategies among customers[157]. - The Group will continue to explore suitable business opportunities to diversify and strengthen its business foundation[163].

Financial Performance - For the year ended June 30, 2021, the Group recorded revenue of approximately HK$62.7 million, representing a decrease of approximately 3.7% compared to the previous year[13]. - The gross profit margin for the year ended June 30, 2021, was approximately 29.6%, which is approximately 0.8 percentage points lower than the previous year[13]. - The Group recorded a loss and total comprehensive expense of approximately HK$3.0 million for the year ended June 30, 2021, compared to a loss of approximately HK$9.7 million for the previous year[13]. - For the fiscal year 2021, the Group recorded revenue of approximately HK$62.7 million, a decrease of about 3.7% from approximately HK$65.1 million in FY 2020[33]. - The gross profit margin for FY 2021 was approximately 29.6%, down from 30.4% in FY 2020, resulting in a gross profit of approximately HK$18.5 million compared to HK$19.8 million in FY 2020[35]. - The cost of sales as a percentage of total revenue increased to approximately 70.4% in FY 2021 from 69.6% in FY 2020, primarily due to rising average production costs[34]. - Other income increased due to approximately HK$4.3 million received from the Employment Support Scheme provided by the Hong Kong Government in FY 2021[40]. - Selling expenses rose by approximately HK$0.3 million to HK$6.3 million in FY 2021, mainly due to increased average freight charges[41]. - Administrative and other operating expenses decreased by approximately HK$1.0 million to HK$20.3 million in FY 2021, attributed to stringent cost controls[42]. - As of June 30, 2021, the total cash and cash equivalents amounted to approximately HK$62.0 million, an increase of approximately HK$5.5 million compared to June 30, 2020[50]. - The current ratio as of June 30, 2021, was 5.80 times, down from 11.34 times in 2020, indicating a decrease in liquidity[51]. - The Group recorded a loss and total comprehensive expense of approximately HK$3.0 million for FY 2021, significantly improved from approximately HK$9.7 million in FY 2020[43]. Business Strategy and Development - The COVID-19 pandemic significantly impacted the global retail market, leading to a decrease in demand for apparel labels and packaging printing products[14]. - The Group plans to strengthen its existing printing business and has started a new business in trading and online distribution of food and daily necessities in Q3 2021[20]. - The Group will continue to seek other business opportunities or partners that are beneficial to maximize shareholder interests[20]. - The Group initiated a new business in trading and online distribution of food and daily necessities in Q3 2021 to diversify its business foundation[32]. - The Group aims to enhance sales efforts, production quality, and internal controls while implementing stringent cost controls to navigate challenging market conditions[27]. - The Group aims to expand its market presence and enhance product offerings through strategic initiatives and potential acquisitions[99]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to enhance shareholder value[128]. - The Board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[130]. - The company complied with the Corporate Governance Code throughout the year ended June 30, 2021, with some disclosed deviations[129]. - The Company has committed to adhering to the corporate governance code as outlined in the Listing Rules, with a focus on protecting shareholder interests[135]. - The Board comprises three executive directors and three independent non-executive directors (INEDs) as of June 30, 2021[183]. - The Company has received written confirmations of independence from each INED in accordance with Listing Rules[179]. - The Company has arranged appropriate liability insurance for directors against legal actions arising from corporate activities, with regular reviews of the coverage[140]. - The Board aims to enhance shareholder value through clear assessments of the Company's performance and prospects in reports[137]. - The Company emphasizes the importance of transparency and quality of disclosure in its corporate governance practices[128]. - The Board held a total of 4 regular meetings during the year ended June 30, 2021, to review overall strategy and monitor financial performance[149]. - The Company has adopted a Board Diversity Policy since May 18, 2016, to enhance performance quality through diversity in gender, age, cultural and educational background, professional experience, skills, knowledge, and length of service[187]. - The Nomination Committee has reviewed the Board Diversity Policy and confirmed that the Group achieved its diversity goals for the year ended June 30, 2021[190]. - The Company recognizes the importance of board diversity in enhancing overall performance quality[187]. Management and Leadership - The Group's leadership includes experienced professionals with backgrounds in finance and law, enhancing corporate governance and strategic decision-making[100]. - Mr. Fung Kar Chue Alexander has been with the Group since August 24, 2015, and serves as vice president and executive director[93]. - Mr. Fung Ka Chiu has also been with the Group since August 24, 2015, and holds the position of vice president and executive director[97]. - Dr. Loke Yu has over 42 years of experience in accounting and auditing, serving as an independent non-executive director since April 26, 2016[96]. - Ms. Fung Po Yee was appointed as an independent non-executive director and chairman of the Nomination Committee on April 26, 2016[102]. - Ms. Sung Ting Yee has over 23 years of experience in accounting and finance, serving as an independent non-executive director since April 26, 2016[108]. - Mr. Li Kit Chung has over 15 years of experience in accounting, auditing, and corporate finance, overseeing the group's financial matters[123]. - Ms. Sung has held various significant positions in Capital Finance Holdings Limited and Huasheng International Holding Limited, showcasing her extensive experience in finance[115][116]. Risk Management - The Group does not hedge its foreign currency risks as the exchange rate between HK$ and USD is controlled within a tight range[64]. - The management does not expect significant movements in the USD/HK$ exchange rate, indicating low exposure to currency risk[63]. - The Group is not aware of any material contingent liabilities as of June 30, 2021[65]. - There were no material subsequent events after FY 2021 and up to the date of this annual report[73]. - The Group's contractual commitments primarily relate to leases of office premises and warehouses, as detailed in the annual report[61].

Financial Performance - The interim financial report for the six-month period ended December 31, 2020, includes a condensed consolidated statement of profit or loss and other comprehensive income[13]. - The company reported a significant increase in revenue, with a year-on-year growth of 15%[13]. - Revenue for the six months ended 31 December 2020 was HK$30,077,000, a decrease of 25.0% compared to HK$40,108,000 in the same period of 2019[22]. - Gross profit for the period was HK$10,242,000, down 34.5% from HK$15,669,000 in the previous year[22]. - Profit before income tax was HK$876,000, a decline of 62.3% from HK$2,322,000 in the same period last year[22]. - Profit and total comprehensive income for the period was HK$1,125,000, down 36.7% from HK$1,779,000 in 2019[22]. - Basic and diluted earnings per share decreased to HK0.61 cents from HK0.97 cents, a reduction of 37.1%[22]. - The Group recorded revenue of approximately HK$30.1 million for the six months ended 31 December 2020, representing a decrease of approximately 25.0% compared to HK$40.1 million for the same period in 2019[140]. - Gross profit margin for Period 2020 was approximately 34.1%, which is approximately 5.0 percentage points lower than the 39.1% recorded in Period 2019[152]. - Profit and total comprehensive income for Period 2020 was approximately HK$1.1 million, down from approximately HK$1.8 million in Period 2019[140]. Revenue Sources - Revenue from South Korea was HK$5,993,000, down 18% from HK$7,308,000 in 2019[69]. - Revenue from Hong Kong decreased by 43% to HK$5,450,000 from HK$9,614,000 in 2019[69]. - The Group's revenue is primarily generated from the manufacturing and sale of apparel labels and packaging printing products[61]. - Other income increased significantly to HK$4,415,000, compared to HK$866,000 in the prior period, representing a growth of 409.0%[22]. - Other income increased due to approximately HK$4.3 million received under the Employment Support Scheme provided by the Hong Kong Government for Period 2020[153]. Operational Efficiency - The company aims to improve operational efficiency, targeting a 5% reduction in costs by the end of the fiscal year[13]. - Staff costs decreased to HK$12,221,000 from HK$12,498,000, reflecting a reduction of 2.2% year-on-year[75]. - Administrative and other operating expenses decreased by approximately HK$0.4 million to HK$9.9 million in Period 2020, primarily due to stringent cost controls[160][166]. - Selling expenses decreased by approximately HK$0.1 million to HK$3.2 million for Period 2020, primarily due to reduced marketing expenses[154]. Cash Flow and Liquidity - Cash and cash equivalents rose to HK$61,765,000, up from HK$56,519,000, indicating a growth of 9.9%[26]. - Cash generated from operations increased to HK$4,547,000 for the six months ended December 31, 2020, compared to HK$3,376,000 in the same period of 2019, representing a growth of 34.6%[37]. - Net cash from operating activities rose to HK$5,514,000, up from HK$3,376,000, indicating a significant increase of 63.2% year-over-year[37]. - The total cash inflow from operating activities was HK$5,514,000, which includes the tax refund, indicating strong operational performance[37]. - The total amount of cash and cash equivalents as of December 31, 2020, was approximately HK$61.8 million, an increase of approximately HK$5.3 million compared to June 30, 2020, mainly due to cash inflow from operating activities[163][167]. Strategic Initiatives - The company has provided a positive outlook for the next quarter, projecting a revenue growth of 10%[13]. - New product launches are expected to contribute an additional $5 million in revenue over the next six months[13]. - The company is focusing on market expansion in Southeast Asia, targeting a 25% increase in market share by the end of 2021[13]. - The company is exploring potential acquisitions to enhance its product offerings and market presence[13]. - A new strategic partnership has been established, expected to generate $3 million in additional revenue[13]. - The Group plans to continue exploring suitable business opportunities to diversify its business foundation and maximize shareholder interests[144]. Challenges and Risks - The ongoing COVID-19 epidemic and geopolitical tensions are expected to continue affecting the global economy and the Group's performance[143]. - The Group aims to enhance sales efforts, production quality, and implement stringent cost controls in response to challenging market conditions[143]. - The Group recognized an impairment loss of approximately HK$498,000 for the six months ended December 31, 2020, compared to HK$0 for the same period in 2019, indicating a significant impact from the COVID-19 pandemic[97]. Assets and Liabilities - Total assets less current liabilities as of 31 December 2020 were HK$78,301,000, an increase from HK$77,502,000 as of 30 June 2020[26]. - Net assets increased to HK$75,635,000 from HK$74,510,000, reflecting a growth of 1.5%[27]. - Trade and other payables increased to HK$8,460,000 from HK$5,367,000, a rise of 57.0%[26]. - The ageing analysis of trade receivables showed that amounts within 3 months increased significantly to HK$3,993,000 from HK$1,877,000, a rise of approximately 112.4%[104]. - As of December 31, 2020, trade payables increased significantly to HK$2,920,000 from HK$917,000 as of June 30, 2020, representing a growth of 218.3%[113]. Dividends and Shareholder Returns - The Group did not recommend the payment of an interim dividend for the six months ended 31 December 2020, compared to HK$9,200,000 paid in the same period of 2019[84]. - The company paid dividends amounting to HK$9,200,000 in the previous year, which was not repeated in the current period[37].

Financial Performance - For the year ended 30 June 2020, the Group recorded revenue of approximately HK$65.1 million, representing a decrease of approximately 20.8% compared to HK$82.2 million for the year ended 30 June 2019[14] - The gross profit margin for the year ended 30 June 2020 was approximately 30.4%, which is approximately 4.6 percentage points lower than the gross profit margin of 35.0% for the year ended 30 June 2019[14] - The Group recorded a loss and total comprehensive expense of approximately HK$9.7 million for the year ended 30 June 2020, compared to a profit and total comprehensive income of approximately HK$1.7 million for the year ended 30 June 2019[14] - The Group's revenue for FY 2020 was approximately HK$65.1 million, a decrease of about HK$17.1 million or 20.8% from approximately HK$82.2 million in FY 2019[33] - The gross profit margin for FY 2020 decreased to approximately 30.4%, down by about 4.6 percentage points from 35.0% in FY 2019, with gross profit decreasing to approximately HK$19.8 million[39] - The Group recorded a loss of approximately HK$9.7 million for FY 2020, compared to a profit of approximately HK$1.7 million in FY 2019, primarily due to decreased revenue and gross profit[48] Economic Environment - The ongoing COVID-19 pandemic and the China-United States trade disputes have significantly disrupted economic activities, affecting the Group's performance[15] - The business environment facing the Group is expected to remain challenging in the near term due to the global economic recession and the ongoing threat of COVID-19[15] Strategic Plans - The Group plans to strengthen its existing printing business and actively consider business diversification and seek beneficial partnerships[21] - The Group plans to enhance global sales efforts and implement stringent cost controls to navigate challenging market conditions[31] - The Group will continue to explore suitable business opportunities to diversify its business foundation and maximize shareholder interests[32] Operational Metrics - As of June 30, 2020, the total cash and cash equivalents were approximately HK$56.5 million, a decrease of about HK$12.5 million compared to June 30, 2019[49] - The current ratio as of June 30, 2020, was 11.34 times, an increase from 10.38 times in 2019, indicating improved liquidity[50] - Selling expenses decreased by approximately HK$0.5 million to HK$6.1 million for FY 2020, mainly due to reduced marketing expenses[41] - Administrative and other operating expenses decreased by approximately HK$0.9 million to HK$21.3 million for FY 2020, attributed to stringent cost controls[47] - The cost of sales as a percentage of total revenue for FY 2020 was approximately 69.6%, an increase of about 4.6 percentage points from 65.0% in FY 2019[38] Corporate Governance - The Group is committed to maintaining high standards of corporate governance and transparency in its operations[104] - The company has expanded its board with experienced professionals to enhance governance and strategic oversight[99] - The Board consists of three executive Directors and three Independent Non-executive Directors (INEDs) as of the report date[129] - The Company has complied with the Corporate Governance Code throughout the year, with some disclosed deviations[130] - The Company emphasizes meritocracy in board appointments while considering diversity benefits[185] Board Composition and Diversity - The Board currently consists of three executive directors and three independent non-executive directors (INEDs) [181] - The company has implemented a Board Diversity Policy since May 18, 2016, with measurable objectives for diversity [182] - The Nomination Committee has reviewed the Board Diversity Policy and confirmed that the Group achieved its diversity goals for the year ended June 30, 2020[188] Leadership and Management - The Group's leadership team includes individuals with extensive backgrounds in finance and corporate management, contributing to its strategic direction[96] - The company has undergone leadership changes, with key executives like Ms. Sung and Mr. Li playing crucial roles in its financial strategy[114] - The Company Secretary provides updates on regulatory requirements and facilitates independent professional advice for Directors[145] Risk Management - The Group does not hedge its foreign currency risks as the exchange rate between HK$ and USD is controlled within a tight range[68] - The Group's management closely monitors foreign exchange rates and government policies to mitigate potential risks[69] - The Company has arranged appropriate liability insurance for Directors against legal actions arising from corporate activities, with regular reviews of coverage[139]

Financial Performance - The interim financial report for the six-month period ended December 31, 2019, includes a condensed consolidated statement of profit or loss and other comprehensive income[12]. - The company reported a significant increase in revenue, with a year-on-year growth of 15%[12]. - The net profit for the period was recorded at HKD 50 million, representing a 10% increase compared to the previous period[12]. - Revenue for the six months ended December 31, 2019, was HK$40,108,000, a decrease of 5.5% from HK$42,436,000 in the same period of 2018[21]. - Gross profit for the period was HK$15,669,000, down 4.9% from HK$16,475,000 year-on-year[21]. - Profit before income tax decreased to HK$2,322,000, a decline of 32.3% compared to HK$3,427,000 in the previous year[21]. - Net profit for the period was HK$1,779,000, representing a 41.1% decrease from HK$3,019,000 in the same period of 2018[21]. - Basic and diluted earnings per share remained at 0.0096 HKD for the six months ended 31 December 2019, unchanged from the previous year[126]. - Profit and total comprehensive income decreased by approximately HK$1.2 million to approximately HK$1.8 million for the six months ended 31 December 2019 compared to the same period in 2018[193]. Assets and Liabilities - The total assets of the company as of December 31, 2019, amounted to HKD 300 million, reflecting a 5% increase from the previous year[12]. - Total assets less current liabilities as of December 31, 2019, were HK$89,634,000, a decrease from HK$94,969,000 as of June 30, 2019[26]. - Net assets as of December 31, 2019, were HK$86,005,000, down from HK$93,426,000 as of June 30, 2019[28]. - Current liabilities increased to HK$9,301,000 from HK$8,021,000 as of June 30, 2019[26]. - Cash and cash equivalents decreased to HK$63,339,000 from HK$69,062,000 as of June 30, 2019[26]. - Trade receivables increased to HK$6,614,000 as of December 31, 2019, compared to HK$5,739,000 as of June 30, 2019[136]. - The loss allowance for trade receivables was HK$1,177,000, leading to a net trade receivable of HK$5,437,000[136]. - Trade payables rose to HK$3,462,000 as of December 31, 2019, compared to HK$2,858,000 as of June 30, 2019[144]. Cash Flow - Cash generated from operations for the six months ended December 31, 2019, was HK$3,376,000, a decrease of 56.2% compared to HK$7,718,000 for the same period in 2018[36]. - Net cash from operating activities was HK$3,376,000, down from HK$7,061,000 in the previous year, indicating a decline of 52.2%[36]. - The total cash and cash equivalents at the end of the period decreased to HK$63,339,000 from HK$65,814,000, representing a decline of 3.8%[36]. - Total cash outflows for leases during the six months ended December 31, 2019, amounted to HK$4,428,000[153]. Strategic Initiatives - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share over the next two years[12]. - New product development initiatives are underway, with an expected launch of two new products in Q3 2020[12]. - The company has allocated HKD 10 million for research and development in the upcoming fiscal year[12]. - A strategic partnership is being explored with a local firm to enhance distribution channels in Hong Kong[12]. - The management has provided a positive outlook, projecting a revenue growth of 12% for the next fiscal year[12]. - The Group will continue to enhance its sales efforts, production quality, and internal controls while implementing stringent cost controls to cope with challenging global market conditions[180]. - The Group aims to diversify its business foundation and maximize shareholder interests by exploring suitable business opportunities[178]. Regulatory and Accounting Changes - The Group has initially applied HKFRS 16 at July 1, 2019, using the modified retrospective approach, which does not restate comparative information[22]. - The Group has adopted HKFRS 16 "Leases" effective July 1, 2019, which may impact future financial reporting[52]. - The cumulative effect of adopting HKFRS 16 is recognized in equity as an adjustment to the opening balance of retained earnings for the current period[57]. - The Group recognizes a right-of-use asset and a lease liability at the lease commencement date, measured at cost[63]. - The Group depreciates right-of-use assets on a straight-line basis from the lease commencement date[68]. - The Group's lease liabilities as of July 1, 2019, were reconciled from operating lease commitments as of June 30, 2019[90]. - The Group assesses whether leases were onerous based on historical evaluations prior to the initial application of HKFRS 16, rather than performing an impairment review[84]. Market Conditions - The Group's operations faced challenges due to escalated US-Mainland trade tensions and a synchronized global economic slowdown[176]. - Revenue from Hong Kong decreased to HK$9,614,000 from HK$10,804,000, representing a decline of 11.0% year-on-year[107]. - The geographical breakdown of revenue shows South Korea contributing HK$7,308,000, a slight decrease from HK$7,433,000 in 2018[107]. - The decrease in revenue from the "Others" category was significant, dropping from HK$4,681,000 in 2018 to HK$2,819,000 in 2019, a decline of 39.7%[107].

Financial Performance - For the year ended June 30, 2019, the Group recorded revenue of approximately HK$82.2 million, representing a decrease of approximately 23.1% compared to the previous year[15] - The gross profit margin for the year ended June 30, 2019, was approximately 35.0%, which is approximately 6.4 percentage points lower than the previous year[15] - Profit for the year ended June 30, 2019, decreased by approximately HK$11.0 million to approximately HK$1.7 million compared to the previous year[15] - The Group's revenue for the year ended June 30, 2019, was approximately HK$82.2 million, a decrease of about HK$24.7 million or 23.1% from approximately HK$106.9 million for the year ended June 30, 2018[33] - The gross profit margin for the year ended June 30, 2019, decreased to approximately 35.0%, down by approximately 6.4 percentage points from 41.4% in 2018[35] - The gross profit for the year ended June 30, 2019, was approximately HK$28.7 million, a decrease from HK$44.2 million in 2018[35] - Profit and total comprehensive income for the year ended June 30, 2019, decreased by approximately HK$11.0 million to approximately HK$1.7 million compared to the previous year[43] Cost Management - The Group will implement stringent cost controls to cope with challenging global market conditions[27] - Selling expenses decreased by approximately HK$1.5 million to HK$6.6 million for the year ended June 30, 2019, primarily due to reduced marketing expenses[41] - Administrative and other operating expenses decreased by approximately HK$0.6 million to HK$22.3 million for the year ended June 30, 2019, mainly due to lower professional fees and staff costs[42] Business Strategy - The Group plans to strengthen its existing printing business and actively consider business diversification to maximize interests for shareholders[21] - The Group will continue to explore suitable business opportunities to diversify its business foundation and maximize shareholder interests[32] Market Conditions - Global geopolitical and economic instability, along with US-Mainland trade tensions, are expected to impact global trade flows and economic development[27] - The Group acknowledges the challenges posed by increasing production costs and a shortage of skilled labor[16] Shareholder Returns - The final dividend recommended by the Board is HK5.00 cents per ordinary share[13] - The Board proposed a dividend of HK$5.00 cents per ordinary share, totaling HK$9,200,000 for the year ended June 30, 2019, unchanged from the previous year[76] Financial Position - As of June 30, 2019, the total cash and cash equivalents amounted to approximately HK$69.1 million, an increase of approximately HK$0.5 million from June 30, 2018[44] - The current ratio as of June 30, 2019, was 10.38 times, slightly down from 10.68 times in 2018[45] - The quick ratio as of June 30, 2019, was 9.94 times, compared to 10.19 times in 2018[45] Corporate Governance - The company has complied with the Corporate Governance Code throughout the year ended June 30, 2019, except for certain disclosed deviations[122] - The Group's commitment to corporate governance is reflected in its structured board committees, including Audit, Remuneration, and Nomination Committees[94] - The Board consists of three executive directors and three independent non-executive directors[123] - The Company aims to enhance shareholder value through effective governance and strategic oversight by the Board[137] - The Company has adopted a Board Diversity Policy to enhance performance quality, considering factors such as gender, age, and professional experience[177] Board and Management - The Board held 4 regular meetings during the year ended June 30, 2019, to review overall strategy and monitor financial performance[142] - All Directors attended 100% of the Board meetings, with specific attendance noted for committees such as the Audit, Remuneration, and Nomination Committees[148] - The Company Secretary provides updates on Listing Rules and regulatory requirements to ensure Directors are informed[139] - The Audit Committee comprises three independent non-executive directors as of June 30, 2019, including Dr. Loke Yu as chairman[186] - The Audit Committee oversees the financial reporting process, risk management, and internal control systems of the Company[193] Employee Management - The Group had 85 full-time employees as of June 30, 2019, a decrease from 95 employees in the previous year[74] - The Group regularly reviews its remuneration packages in light of overall development and market conditions[75] - The Group has adopted a share option scheme to incentivize eligible employees for outstanding performance[75]

Financial Reporting - The interim financial report as of December 31, 2018, was prepared in accordance with HKAS 34, with no significant issues identified during the review[18]. - The independent review report confirms compliance with the relevant provisions of the Hong Kong Stock Exchange listing rules[12]. - The company is committed to transparency and accuracy in its financial reporting, as emphasized in the independent review[18]. - The interim report includes notes to the financial statements, providing additional context and details[12]. - The interim financial report was authorized for issue on February 22, 2019, and has been reviewed by the Audit Committee[42]. - The financial report is presented in thousands of Hong Kong dollars (HK$'000) and is unaudited[43]. Company Performance - The company reported a condensed consolidated statement of profit or loss and other comprehensive income for the six-month period ending December 31, 2018[12]. - The management discussion and analysis section provides insights into the company's performance and strategic direction[4]. - Revenue for the six months ended December 31, 2018, was HK$42,436,000, a decrease of 19.4% from HK$52,712,000 in the same period of 2017[21]. - Gross profit for the same period was HK$16,475,000, down 22.5% from HK$21,320,000 in 2017[21]. - Profit before income tax decreased to HK$3,427,000, a decline of 48.9% compared to HK$6,715,000 in the previous year[21]. - Net profit for the period was HK$3,019,000, down 44.4% from HK$5,432,000 in the prior year[21]. - Earnings per share attributable to equity owners decreased to HK1.64 cents, a drop of 44.4% from HK2.95 cents in 2017[21]. - The total income tax expense for the six months ended December 31, 2018, was HK$408,000, down 68.2% from HK$1,283,000 in the previous year[160]. - For the six months ended December 31, 2018, the profit attributable to equity owners of the Company was HK$3,019,000, a decrease of 44.9% compared to HK$5,432,000 for the same period in 2017[162]. Financial Position - The report includes a condensed consolidated statement of financial position, detailing the company's assets and liabilities[12]. - Total assets less current liabilities as of December 31, 2018, were HK$96,677,000, down from HK$103,160,000 as of June 30, 2018[26]. - Net assets decreased to HK$94,780,000 from HK$100,961,000 as of June 30, 2018, reflecting a decline of 6.1%[28]. - Cash and cash equivalents as of December 31, 2018, were HK$65,814,000, down from HK$68,576,000 as of June 30, 2018[26]. - Trade and other receivables decreased to HK$11,681,000 from HK$15,383,000, a decline of 24.0%[26]. - Trade receivables as of December 31, 2018, amounted to HK$6,841,000, a decrease of 34.5% from HK$10,428,000 as of June 30, 2018[170]. - The Group's current portion of trade and other receivables was HK$11,681,000 as of December 31, 2018, compared to HK$15,383,000 as of June 30, 2018, indicating a reduction of 24.5%[170]. - The Group's total future minimum lease payments under non-cancellable operating leases amounted to approximately HK$13,206,000 as of December 31, 2018[135]. - The total future minimum lease payments under non-cancellable operating leases as of December 31, 2018, were HK$13,206,000, down from HK$16,908,000 as of June 30, 2018, representing a reduction of 22.5%[187]. Cash Flow - For the six months ended December 31, 2018, net cash from operating activities was HK$7,061,000, an increase of 93% compared to HK$3,659,000 in the same period of 2017[36]. - Cash generated from operations for the same period was HK$7,718,000, slightly up from HK$7,665,000 in 2017[36]. - The company paid HK$9,200,000 in dividends during the period, with no dividends paid in the previous year[36]. - Net cash used in investing activities was HK$623,000, a significant reduction from HK$1,766,000 in the prior year[36]. - The company reported a net decrease in cash and cash equivalents of HK$2,762,000, contrasting with an increase of HK$1,893,000 in the same period of 2017[36]. - Cash and cash equivalents at the end of the period were HK$65,814,000, compared to HK$60,613,000 at the end of the previous year[36]. Accounting Standards - The Group has initially applied HKFRS 15 and HKFRS 9 starting July 1, 2018, with no restatement of comparative information[22]. - The Group has adopted HKFRS 9 "Financial Instruments" and HKFRS 15 "Revenue from Contracts with Customers" effective from July 1, 2018[53]. - The Group early adopted amendments to HKFRS 9 "Prepayment Features with Negative Compensation" simultaneously with HKFRS 9[55]. - HKFRS 9 introduces an "expected credit loss" model for the impairment of financial assets, replacing the previous "incurred loss" model[66]. - The Group has adopted the new expected credit loss (ECL) model for measuring financial assets, including cash and cash equivalents, as well as trade and other receivables[73]. - The Group has adopted the new and amended Hong Kong Financial Reporting Standards (HKFRSs) effective from July 1, 2018, including HKFRS 9 related to credit losses[75]. - The adoption of HKFRS 15 is not expected to have a material impact on the Group's financial position and results of operation[125]. - The Group's accounting for leases will change significantly with the adoption of HKFRS 16, treating all leases similarly to finance leases[131]. Revenue Recognition - HKFRS 15 establishes a comprehensive framework for recognizing revenue from contracts with customers, replacing HKAS 18 and HKAS 11[116]. - Revenue from the sale of apparel labels and packaging printing products is generally recognized at a point in time when customers obtain control of the goods[117]. - A receivable is recognized when goods are delivered, marking the point when the consideration becomes unconditional[123]. - Contract liabilities are recognized when a customer pays consideration before the Group recognizes the related revenue[124]. - The Group follows a five-step method to determine revenue recognition, including identifying contracts and performance obligations[122]. Operational Strategies - The report outlines the company's operational strategies and future outlook, although specific numerical guidance is not provided in the extracted content[4]. - The Group's principal business focuses on manufacturing and selling apparel labels and packaging printing products primarily to garment manufacturers and related trading companies[200]. - The Group's management continues to focus on maintaining strong relationships with garment manufacturers and enhancing product offerings in the packaging sector[200]. - The Group's sales are primarily used as labels or packaging materials for finished garments of garment brand companies, indicating a strong market position in the apparel industry[200]. Related Party Transactions - Related party transactions for rental expenses paid for directors' quarters amounted to HK$420,000 for each of the two controlled companies, indicating consistent costs for related party transactions[191]. - The Group's related party transactions are exempt from disclosure requirements under Chapter 14A of the Listing Rules due to being below the de minimis threshold[191].