Financial Performance - For the year ended June 30, 2024, the Group recorded revenue of approximately HK$70.0 million, representing an increase of approximately 28.7% compared to the previous year[10]. - The gross profit margin for the year ended June 30, 2024, was approximately 29.5%, which is approximately 12.2 percentage points higher than the previous year[10]. - The Group recorded a loss and total comprehensive expense of approximately HK$2.3 million for the year ended June 30, 2024, compared to a loss of approximately HK$26.0 million for the year ended June 30, 2023[10]. - Revenue from the manufacturing and sale of apparel labels and packaging printing products increased by approximately 6.4% to around HK$48.3 million for FY2024[20]. - Revenue from the sale and distribution of food, daily necessities, and utility products increased significantly by 76.4% to approximately HK$15.9 million[20]. - The new catering business segment in Hong Kong contributed approximately HK$5.8 million to the Group's revenue in FY2024[20]. - Gross profit for FY2024 increased to approximately HK$20.7 million, compared to HK$9.4 million in FY2023[32]. - Loss and total comprehensive expense for FY2024 amounted to approximately HK$2.3 million, a significant improvement from HK$26.0 million in FY2023[21]. - The Group's cost of sales over total revenue decreased to approximately 70.5% for FY2024, down from approximately 82.7% for FY2023[28]. - Selling expenses decreased by approximately HK$1.3 million to approximately HK$5.7 million for FY2024 due to stringent cost control measures[31]. Business Environment - Geopolitical tensions and slowed global economic growth have significantly impacted the global retail sector, including the apparel market, leading to a drop in demand for apparel labels and packaging printing products[11]. - The business environment facing the Group is expected to remain challenging in the near term due to ongoing geopolitical issues and economic slowdowns[11]. - The Group is actively considering business diversification and seeking other business opportunities or partners beneficial to its interests[14]. - The Group will continue to strengthen its existing printing business and the trading and online distribution of food, daily necessities, and utility products[14]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to enhance shareholder value[88]. - The Company has complied with the Corporate Governance Code throughout the year ended June 30, 2024, except for certain disclosed deviations[90]. - The Board has a fiduciary duty and statutory responsibility towards the Company, including formulating overall strategy and monitoring financial performance[97]. - The Company ensures that all Directors can seek independent professional advice at the Company's expense when necessary[103]. - The Board comprises three executive directors and three independent non-executive directors (INEDs) as of June 30, 2024[128]. - The roles of chairman and chief executive officer are not separated, with Mr. Samson Fung holding both positions, which the Board believes ensures consistent leadership[122]. - The company emphasizes integrity, transparency, and quality of disclosure in its corporate governance practices[89]. - The Company has arranged liability insurance for Directors against legal actions arising from corporate activities, with regular reviews of coverage[99]. Risk Management - The Group's risk management framework follows the COSO Enterprise Risk Management – Integrated Framework, allowing effective management of identified risks[199]. - The Board considers the Group's risk management and internal control system as adequate and effective for the year ended June 30, 2024[195]. - No significant risks were identified in market rate, liquidity, operational, legal and compliance, or listing risks for the year ended June 30, 2024[197]. - The management is responsible for identifying, analyzing, and communicating risks associated with the Group's activities[192]. - The Group has engaged an external professional consultant for an independent internal control review for the year ended June 30, 2024[195]. - The Directors are responsible for preparing financial statements that provide a true and fair view of the Group's financial position[189]. - The Group's risk management process includes risk identification, evaluation, management, and control[191]. - The Board has reviewed the effectiveness of the internal control system and currently sees no immediate need for an internal audit function[194]. Staffing and Employment - As of June 30, 2024, the group employed 67 full-time management, administrative, and operational staff in Hong Kong, a slight decrease from 68 staff as of June 30, 2023[57]. - The group has maintained its employee compensation policy without significant changes, offering bonuses based on performance[57]. - The Nomination Committee reported that approximately 58% of the Company's workforce is male and approximately 42% is female, which is considered satisfactory[135]. - The Company plans to invest more resources in training female staff with relevant experience to promote them to senior management or directorship[134]. Board and Committee Activities - The Audit Committee, comprising three independent non-executive directors, oversees the financial reporting process and internal control systems[141]. - The Audit Committee held two meetings during the year ended June 30, 2024, to review financial statements and internal controls[144]. - The Remuneration Committee also comprises five members, with a majority being INEDs, focusing on remuneration and compensation arrangements for Directors and senior management[161]. - The Nomination Committee consists of five members, including two Executive Directors and three Independent Non-Executive Directors (INEDs), ensuring a majority of INEDs[152]. - The Board held a total of 4 regular meetings during the year ended June 30, 2024[104]. - All Directors attended 100% of the Board meetings, with each Executive Director attending 4 out of 4 meetings[107]. - The Company Secretary provides updates on regulatory requirements to the Directors, ensuring they are well-informed[101]. - The Company plans to seek shareholder approval for the reappointment of its external auditor for the year ending June 30, 2025[151].
HSSP INTL(03626) - 2024 - 年度财报