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].
HSSP INTL(03626) - 2021 - 中期财报