Financial Performance - For the fiscal year ending June 30, 2024, the company reported a loss of HKD 2,306,000, a significant improvement from a loss of HKD 25,965,000 in the previous year, representing a reduction of approximately 91.1%[1][2] - Total revenue for the year was HKD 70,028,000, compared to HKD 54,414,000 in the previous year, indicating an increase of about 28.7%[1] - Gross profit for the year was HKD 20,669,000, up from HKD 9,398,000, reflecting a growth of approximately 120.9%[1] - The company reported a basic and diluted loss per share of HKD 1.30, a significant improvement from HKD 14.11 in the previous year[2] - The total loss for the year ending June 30, 2024, is reported at HKD 2,306,000, which includes an adjustment of HKD 34,000 due to the new accounting guidelines[14] - The group reported a loss before tax of HKD 2,395,000 for the year ended June 30, 2024, compared to a loss of HKD 25,965,000 for the previous year[30] - The total loss and comprehensive expenses for fiscal year 2024 were approximately HKD 2,300,000, a significant reduction from approximately HKD 26,000,000 in fiscal year 2023, mainly due to improved performance in the printing and food and daily necessities divisions[48] Revenue Breakdown - Revenue from the sale of clothing labels and packaging printing products was HKD 48,299,000, up 6.2% from HKD 45,398,000 in 2023[15] - Revenue from food, daily necessities, and public products sales increased significantly to HKD 15,901,000, compared to HKD 9,016,000 in 2023, marking a 76.5% growth[15] - The restaurant operations segment generated revenue of HKD 5,828,000, with no revenue reported in the previous year[15] - Total revenue for the fiscal year 2024 reached HKD 70,028,000, a 28.7% increase from HKD 54,414,000 in 2023[15] - Revenue from the manufacturing and sales of clothing labels and packaging printing products increased by approximately 6.4% to about HKD 48,300,000 in the fiscal year 2024, up from approximately HKD 45,400,000 in fiscal year 2023[43] - Sales and distribution revenue from food, daily necessities, and public products surged by 76.4% to approximately HKD 15,900,000 in fiscal year 2024, compared to approximately HKD 9,000,000 in fiscal year 2023[43] Assets and Liabilities - The company's total assets as of June 30, 2024, were HKD 48,996,000, compared to HKD 46,068,000 in the previous year, showing an increase of about 6.3%[3] - Current assets decreased to HKD 44,870,000 from HKD 53,547,000, a decline of approximately 16.1%[3] - The company's cash and cash equivalents decreased to HKD 33,565,000 from HKD 43,152,000, representing a decrease of about 22.3%[3] - The net asset value of the company was HKD 40,419,000, down from HKD 42,719,000, indicating a decrease of approximately 5.4%[3] - The company reported total liabilities of HKD 11,674,000 as of June 30, 2024, compared to HKD 7,710,000 in the previous year[38] Accounting and Compliance - The adoption of the new Hong Kong Financial Reporting Standard No. 18 is expected to significantly impact the presentation of financial statements, particularly the consolidated income statement and other comprehensive income statement, starting from the annual reporting period after January 1, 2027[10] - The implementation of the new guidelines regarding the offsetting mechanism for long service payments is anticipated to affect the accounting policies related to long service payment liabilities, with adjustments made to the financial statements as of June 30, 2022, and June 30, 2023[11] - As of June 30, 2024, trade and other payables are projected to be adjusted from HKD 12,735,000 to HKD 11,674,000 after the adoption of the new accounting guidelines, reflecting a decrease of HKD 1,061,000[13] - The basic and diluted loss per share for the year is expected to increase from 1.27 HKD cents to 1.30 HKD cents after the adoption of the new guidelines[14] - The long service payment liability is expected to be recorded at HKD 336,000 as of June 30, 2024, reflecting the impact of the new accounting guidelines[13] - The total reserves are projected to increase from HKD 37,733,000 to HKD 38,458,000 after the adoption of the new guidelines, indicating an increase of HKD 725,000[13] - The administrative expenses for the year are expected to be adjusted from HKD 22,288,000 to HKD 22,322,000, reflecting a minor increase due to the new guidelines[14] - The impact of the new accounting guidelines on the consolidated financial position as of June 30, 2023, includes a reduction in trade and other payables from HKD 8,951,000 to HKD 7,710,000[12] - The company is currently assessing the impact of the new standards and preparing data for implementation, indicating a proactive approach to compliance with upcoming regulations[10] Operational Efficiency - Employee costs decreased to HKD 24,933,000 in 2024 from HKD 26,342,000 in 2023, reflecting a reduction of approximately 5.3%[26] - Depreciation expenses for property, plant, and equipment were HKD 9,727,000 in 2024, down from HKD 10,590,000 in 2023, indicating a decrease of about 8.1%[26] - The group acquired property, plant, and equipment worth approximately HKD 1,040,000 in 2024, compared to HKD 2,819,000 in 2023, showing a significant reduction in capital expenditure[31] - Selling expenses decreased by approximately HKD 1,300,000 to about HKD 5,700,000, attributed to stringent cost control measures leading to reduced freight and sales commission payments[46] - The cost of sales as a percentage of total revenue for the fiscal year 2024 is approximately 70.5%, a decrease of about 12.2 percentage points from approximately 82.7% in fiscal year 2023, primarily due to the addition of a new division and improvements in pricing and operational efficiency[44] Strategic Initiatives - The company plans to focus on enhancing marketing, improving product quality, and implementing strict cost control measures in response to challenging market conditions[42] - The company aims to continue seeking suitable business opportunities to diversify and strengthen its business foundation for maximizing shareholder value[42] - The company completed the acquisition of 91% of Tian Yao Group Limited for a cash consideration of HKD 8,645,000 and a contingent consideration of HKD 1,110,000, diversifying its business into the food and beverage sector[41] - The geographical revenue distribution shows significant growth in Hong Kong, with revenue increasing to HKD 30,256,000 from HKD 16,940,000 in 2023[23] - The company did not have any single external customer contributing more than 10% of total revenue for both fiscal years 2024 and 2023[24] Governance and Compliance - The audit committee consists of three independent non-executive directors, responsible for reviewing accounting standards and internal controls for the fiscal year 2024[61] - The auditors have agreed that the financial figures for the fiscal year 2024 are based on the consolidated financial statements of the group[62] - The company did not purchase, sell, or redeem any of its listed securities during the year[63] - The company has maintained sufficient public float since its listing until June 30, 2024[64] - The board does not recommend the payment of a final dividend for the fiscal year 2024[64] - The annual results announcement will be published on the Hong Kong Stock Exchange and the company's website[65] - The company expresses gratitude to shareholders, suppliers, and customers for their continued support[66]
HSSP INTL(03626) - 2024 - 年度业绩