Revenue and Profitability - The Group's revenue increased by approximately 1.0% to approximately HK$152.7 million for the six months ended December 31, 2018, compared to the same period last year[12]. - Gross profit increased by approximately 8.7% from approximately HK$50.5 million to approximately HK$54.9 million due to a drop in raw material costs[12]. - Gross profit margin improved by approximately 2.5% from approximately 33.4% to approximately 35.9% for the same period[13]. - Profit for the period rose by approximately HK$15.5 million to approximately HK$19.0 million, with a net profit margin increase from approximately 2.3% to approximately 12.5%[13]. - Basic earnings per share increased to HK3.97 cents from HK0.90 cents for the corresponding period in 2017[14]. - Profit before tax increased significantly to HK$23.1 million, up from HK$7.5 million in the previous year, marking a growth of 207.5%[86]. - The profit for the period was HK$19.0 million, compared to HK$3.5 million in 2017, reflecting a substantial increase of 442.5%[86]. - The total comprehensive income for the period attributable to equity holders was HK$14.5 million, compared to HK$6.0 million in 2017[88]. Revenue Breakdown - Revenue from packaging printing increased by approximately 0.1% to approximately HK$113.6 million for the six months ended December 31, 2018[26]. - Revenue from booklet printing increased by approximately 6.1% to approximately HK$18.3 million due to more customer orders[29]. - Revenue from card printing decreased by approximately 13.0% to approximately HK$10.8 million compared to the same period in 2017[30]. - Revenue from IT Technology printing increased by approximately 51.9% to approximately HK$3.1 million for the six months ended 31 December 2018 compared to the same period in 2017[31]. - Revenue from other printing services increased by approximately 14.4% to approximately HK$6.9 million for the six months ended 31 December 2018 compared to the same period in 2017[32]. - Revenue from Hong Kong customers was HK$115,488,000, up 26% from HK$91,507,000 in 2017, while revenue from the United States decreased by 57% to HK$16,869,000 from HK$39,174,000[144]. Expenses and Costs - Administrative expenses increased from approximately HK$27.1 million to approximately HK$30.5 million for the six months ended December 31, 2018, primarily due to increased professional fees and salary increments[40]. - The cost of inventories sold for the period was HK$97,846,000, compared to HK$87,036,000 in 2017, reflecting an increase of 12%[153]. - Employee benefit expenses for the period amounted to HK$31,653,000, an increase of 17% from HK$26,955,000 in the previous year[153]. - The direct labor cost for the six months ended December 31, 2018, was approximately HK$15.7 million, compared to approximately HK$14.7 million for the same period in 2017[69]. Cash Flow and Financial Position - As of 31 December 2018, cash and cash equivalents amounted to approximately HK$187.9 million, a slight decrease from approximately HK$190.7 million as of 30 June 2018[55]. - The current ratio increased to approximately 6.2 times as of 31 December 2018, up from approximately 6.0 times as of 30 June 2018[55]. - Cash generated from operations for the six months ended December 31, 2018, was HK$26,370,000, compared to a cash used in operations of HK$53,384,000 for the same period in 2017[127]. - The net cash flows from operating activities for the period were HK$15,906,000, a significant improvement from the net cash used of HK$67,384,000 in the previous year[127]. - The Group's current assets amounted to approximately HK$233.4 million, resulting in a current ratio of approximately 6.2 times, an increase from 6.0 times as of June 30, 2018[59]. - The total equity at December 31, 2018, was HK$289,802,000, reflecting an increase from HK$289,690,000 at July 1, 2018[109]. Dividends - The Directors recommended an interim dividend of HK1 cent per share, compared to no dividend in the previous year[70]. - The company declared a final dividend of HK$14,400,000 for 2018[106]. - A final dividend of HK$3 cents per ordinary share was proposed for the year ended June 30, 2018, amounting to HK$14,400,000, which was paid before December 31, 2018[170]. - An interim dividend of HK$1 cent per ordinary share was declared for the six months ended December 31, 2018, while no interim dividend was declared for the same period in 2017[171]. Challenges and Market Conditions - The ongoing trade war between China and the USA has negatively influenced customer spending on printing and promotion, posing challenges to the Group's operations[11]. - The management anticipates challenges due to the trade war between China and the USA, impacting market sentiments and posing global economic uncertainty[38]. Capital Expenditure and Investments - The Group recorded over HK$3.1 million in capital expenditure during the period, primarily for automation and equipment upgrades[61]. - The Group used approximately HK$14.0 million for equipment upgrades, approximately HK$8.3 million for general working capital, and approximately HK$0.2 million for ERP system consultation from the net proceeds of the IPO[78]. - The Group intends to use the net proceeds to purchase four presses, relocate the Shenzhen Factory, and upgrade the ERP system[78]. - The relocation plan for the new plant has been delayed due to the sale of the land to an independent third party, affecting approximately HK$33.9 million of the proceeds[80]. Taxation - Income tax expenses increased by approximately HK$0.1 million to approximately HK$4.1 million for the six months ended December 31, 2018[52]. - The total tax charge for the period was HK$4,068,000, slightly up from HK$4,033,000 in the previous year, reflecting a marginal increase of 0.87%[162]. - The Group's current tax charge for Hong Kong was HK$2,934,000 for the period, slightly down from HK$3,043,000 in the previous year[162]. Employee and Workforce - The Group had 678 employees as of December 31, 2018, with an increase in production staff during the peak season from June to September[68]. - The Group's trade payables are non-interest-bearing and are typically settled within three months[193]. - The ageing analysis of trade receivables showed that HK$40,637,000 were neither past due nor impaired as of December 31, 2018[180]. - The directors believe no provision for impairment is necessary for receivables that are past due but not impaired, as the credit quality has not significantly changed[182].
新兴印刷(01975) - 2019 - 中期财报