Financial Performance - The Group's revenue decreased by approximately 28.9% to approximately HK$108.5 million for the six months ended December 31, 2024, compared to the same period last year[13]. - Gross profit dropped by approximately 28.6% from approximately HK$46.1 million for the six months ended December 31, 2023, to approximately HK$32.9 million for the six months ended December 31, 2024[14]. - Net profit for the period decreased by approximately HK$2.9 million from approximately HK$5.7 million for the six months ended December 31, 2023, to approximately HK$2.8 million for the six months ended December 31, 2024[15]. - Basic earnings per share was approximately HK0.58 cents, compared to approximately HK1.18 cents for the corresponding period in 2023[16]. - Profit for the period was HK$2.8 million, a decline of 51% from HK$5.7 million in the previous year[91]. - Profit before tax for the six months ended December 31, 2024, was HK$3,335, a decrease of 52.8% compared to HK$7,076 in 2023[103]. Revenue Breakdown - Revenue contribution from packaging printing services was 37.6% and from paper gift set printing services was 52.8% for the six months ended December 31, 2024[22]. - Revenue from packaging printing decreased by approximately 3.6% to approximately HK$40.8 million for the six months ended December 31, 2024[25]. - Revenue from paper gift set printing decreased by approximately 40.0% to approximately HK$57.3 million for the six months ended December 31, 2024[28]. - Revenue from card printing dropped approximately 49.6% to approximately HK$2.9 million for the six months ended December 31, 2024[29]. - Revenue from smart package printing decreased by approximately 31.9% to approximately HK$5.2 million for the six months ended December 31, 2024[30]. - Revenue from other printing increased by approximately 57.7% to approximately HK$2.3 million for the six months ended December 31, 2024[35]. - Revenue from Hong Kong decreased by 27% to HK$38,126,000 from HK$52,165,000 year-over-year[121]. - Revenue from Mainland China increased significantly by 120% to HK$14,455,000 from HK$6,571,000 year-over-year[121]. Cost and Expenses - Administrative expenses dropped from approximately HK$43.1 million to approximately HK$32.5 million for the six months ended December 31, 2024[43]. - Selling and distribution expenses slightly decreased from approximately HK$3.1 million to approximately HK$2.8 million, despite an expansion of the sales team to explore new markets[48]. - Other operating income dropped from approximately HK$4.2 million to approximately HK$1.5 million, primarily due to exchange gains from the appreciation of the US Dollar against the Renminbi[49]. - Other income and government grants increased from approximately HK$7.1 million to approximately HK$7.8 million, driven by higher interest rates on time deposits[50]. - Income tax expense decreased by approximately HK$0.9 million from HK$1.4 million to HK$0.5 million, with the effective tax rate declining from 20.0% to 16.5%[57]. Cash Flow and Assets - As of 31 December 2024, total cash amounted to approximately HK$291.4 million, down from HK$317.0 million as of 30 June 2024[60]. - The current ratio was approximately 6.7 times as of 31 December 2024, compared to 7.1 times as of 30 June 2024[60]. - Cash generated from operations was a negative HK$6,962, compared to positive cash flow of HK$26,358 in the same period last year[103]. - Net cash flows used in operating activities amounted to HK$11,357, slightly improved from HK$13,473 in the previous year[104]. - Cash and cash equivalents at the end of the period were HK$291,329, up from HK$282,467 in the previous year[104]. - Total non-current assets decreased from HK$258,780,000 as of June 30, 2024, to HK$242,811,000 as of December 31, 2024, representing a decline of approximately 6.15%[96]. - Current assets remained relatively stable, with a slight decrease from HK$373,656,000 to HK$372,617,000, a change of about 0.28%[96]. Strategic Initiatives - The Group is investing in ESG Print Limited to explore markets related to Environmental, Social, and Governance (ESG) initiatives[9]. - The Group is planning to build a new manufacturing hub in Indonesia to diversify its operations[9]. - The Group anticipates challenges in the interim period of 2024/2025 due to geopolitical tensions and concerns about a slowing global economy[36]. - The Group is exploring opportunities to build a second manufacturing hub in Indonesia to attract new customers and lower costs[37]. Shareholder Information - The company is owned 54.8% by Goody Luck and 20.2% by Goody Capital after the completion of the capitalization issue and share offer[196]. - Goody Luck is owned 75.6% by Mr. Peter Chan and 24.4% by Mr. Kenneth Chan[196]. - Goody Capital is owned 33.3% by Mr. Desmond Chan, 33.3% by Mr. Chan Chi Ming, and 33.3% by Mr. Kenneth Chan[196]. - Each of the controlling shareholders is deemed to be interested in 75.0% of the issued share capital of the company[196]. - The directors and chief executives have disclosed their interests in the company's shares and associated shares[189].
新兴印刷(01975) - 2025 - 中期财报