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].
HSSP INTL(03626) - 2019 - 中期财报