Financial Performance - The Group's revenue decreased by approximately 8.1% to approximately HK$163.7 million for the six months ended 31 December 2020 compared to the same period last year[12]. - Gross profit decreased by approximately 5.9% from approximately HK$66.3 million to approximately HK$62.3 million for the same period[12]. - Despite the decrease in sales, the gross profit margin increased from approximately 37.2% to approximately 38.1% for the six months ended 31 December 2020[13]. - Profit for the period decreased slightly by approximately HK$0.5 million from approximately HK$28.0 million to approximately HK$27.5 million[13]. - The net profit margin increased from approximately 15.7% to approximately 16.8% for the six months ended 31 December 2020[13]. - Basic earnings per share was HK5.74 cents, compared to HK5.84 cents for the corresponding period in 2019[14]. - Revenue for the six months ended December 31, 2020, was HK$163,739,000, a decrease of 8.1% from HK$178,190,000 in 2019[79]. - Gross profit for the same period was HK$62,348,000, down from HK$66,265,000, reflecting a gross margin of 38.1%[79]. - Profit before tax was HK$33,641,000, slightly down from HK$33,681,000, resulting in a profit margin of 20.5%[79]. - Profit for the period was HK$27,530,000, compared to HK$28,017,000 in 2019, indicating a decrease of 1.7%[81]. Revenue Breakdown - Revenue from packaging printing decreased by approximately 6.4% to approximately HK$103.6 million, primarily due to the impact of the COVID-19 pandemic on global retail markets[23]. - Revenue from paper gift set printing increased by approximately 12.1% to approximately HK$29.6 million, benefiting from product cycles and promotional sales[27]. - Revenue from card printing decreased by approximately 28.1% to approximately HK$17.4 million, mainly due to the ongoing effects of the COVID-19 pandemic and postponed product launches[28]. - Revenue from smart package printing decreased by approximately 24.2% to approximately HK$10.0 million, attributed to reduced customer orders during the pandemic[29]. - Revenue from other printing services decreased by approximately 16.2% to approximately HK$3.1 million, influenced by increased environmental awareness among retail customers[34]. - Revenue from Hong Kong decreased to HK$95,045,000, down 12.7% from HK$108,819,000 in 2019[140]. - Revenue from Europe increased significantly to HK$41,990,000, up 295.5% from HK$10,632,000 in 2019[140]. Economic Environment - The printing industry in Hong Kong is facing intense competition due to the unstable economic environment and the COVID-19 pandemic[11]. - Customers have frozen or reduced budgets for new projects until the pandemic is under control[12]. - The Sino-US trade tension continues to threaten customers' willingness to spend on printing and promotion[11]. - The interim period 2020/2021 is expected to be challenging due to the ongoing COVID-19 pandemic and trade tensions between the USA and China[35]. Expenses and Income - Administrative expenses remained stable at approximately HK$29.4 million and HK$30.8 million for the six months ended December 31, 2020, and 2019, respectively[47]. - Selling and distribution expenses decreased from approximately HK$3.1 million to approximately HK$2.9 million due to a drop in sales during the current period[48]. - Other operating expenses were approximately HK$0.1 million for the six months ended December 31, 2020, compared to other operating income of approximately HK$0.3 million for the same period in 2019[51]. - Other income decreased from approximately HK$1.8 million to approximately HK$1.6 million, mainly due to a drop in interest income from time deposits[51]. - Government grants increased to approximately HK$2.6 million for the six months ended December 31, 2020, while there were no such grants in the same period of 2019[51]. - Income tax expenses rose by approximately HK$0.4 million from approximately HK$5.7 million to approximately HK$6.1 million for the six months ended December 31, 2020[51]. Assets and Liquidity - As of December 31, 2020, the Group's net assets amounted to approximately HK$341.2 million, an increase from approximately HK$323.1 million as of June 30, 2020, representing a growth of about 5.4%[10]. - The Group's cash and cash equivalents were approximately HK$208.9 million as of December 31, 2020, compared to approximately HK$204.1 million as of June 30, 2020, indicating a slight increase of about 3.9%[10]. - The current ratio remained stable at approximately 3.9 times as of December 31, 2020, compared to 3.7 times as of June 30, 2020, reflecting strong liquidity management[10]. - The Group had approximately HK$179.7 million in fixed time deposits with maturities within 12 months, enhancing its short-term liquidity position[10]. - Cash and cash equivalents at the end of the period were HK$208,881,000, compared to HK$209,929,000 at the end of the previous year[124]. - The Group's cash and bank balances included time deposits of HK$179,673,000 as of December 31, 2020, down from HK$186,275,000 as of June 30, 2020[187]. Capital Expenditure and Investments - The Group recorded over HK$2.0 million in capital expenditure during the period, primarily allocated for automation and equipment upgrades[10]. - Up to the date of the report, the Group had utilized approximately HK$44.1 million for equipment upgrades, approximately HK$8.3 million for general working capital, and approximately HK$0.7 million for ERP system consultation[61]. - The Group has utilized approximately HK$44.1 million for the purchase of printing machines to enhance overall production efficiency, with full utilization expected by 31 December 2022[68]. - The upgrade of the ERP system has seen HK$0.5 million utilized so far, with full utilization expected by 31 December 2022[68]. - The total planned applications of proceeds amount to HK$124 million, with HK$53.1 million utilized up to the date of the report[68]. - The Group's unlisted fund investment was valued at HK$10,030,000 as of December 31, 2020, slightly down from HK$10,039,000 as of June 30, 2020[174]. Dividends - The Directors recommended an interim dividend of HK1.5 cents per share, an increase from HK1 cent per share in 2019, representing a 50% increase[57]. - The Group's final dividend proposed for the year ended June 30, 2020, was HK3.5 cents per share, an increase from HK2.5 cents in 2019, totaling HK$16,800,000 compared to HK$12,000,000 in the previous year[171]. - An interim dividend of HK1.5 cents per ordinary share was declared for the six months ended December 31, 2020, compared to HK1 cent for the same period in 2019[172]. Trade Receivables and Payables - Trade receivables as of December 31, 2020, amounted to HK$58,621,000, a decrease of 5.66% from HK$61,922,000 as of June 30, 2020[181]. - The ageing analysis of trade receivables showed that HK$26,977,000 was within one month, while HK$1,594,000 was overdue by more than three months as of December 31, 2020[183]. - Trade payables as of December 31, 2020, totaled HK$16,003,000, slightly up from HK$15,950,000 as of June 30, 2020[193]. - Within one month, trade payables were HK$9,513,000 as of December 31, 2020, down from HK$9,796,000 as of June 30, 2020[193]. - The Group's trade payables are non-interest-bearing and are typically settled within three months[193].
新兴印刷(01975) - 2021 - 中期财报