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].
HSSP INTL(03626) - 2021 - 年度财报