Financial Reporting Compliance - The interim financial report for Hang Sang (Siu Po) International Holding Company Limited as of December 31, 2024, has been reviewed and is in compliance with HKAS 34[20]. - The company is required to prepare the interim financial report in accordance with the relevant provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[14]. - The independent review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, which involves inquiries and analytical procedures[19]. - No significant matters were identified that would lead to a belief that the interim financial report is not prepared in all material respects according to HKAS 34[20]. - The report is part of the interim financial reporting requirements set by the Hong Kong Institute of Certified Public Accountants[14]. - The interim financial report was prepared in accordance with HKAS 34 and has been reviewed by the Company's Audit Committee[40]. - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[51]. - The Group has not adopted any new standards or interpretations that are not yet effective as of the reporting date[55]. Financial Performance - Revenue for the six months ended December 31, 2024, increased to HK$46,902,000, representing a 65% growth compared to HK$28,377,000 in the same period of 2023[23]. - Gross profit for the period was HK$16,118,000, up 92% from HK$8,388,000 year-over-year[23]. - Profit before income tax was HK$1,870,000, a significant recovery from a loss of HK$3,392,000 in the previous year[23]. - Total comprehensive income for the period was HK$1,705,000, compared to a loss of HK$3,387,000 in the same period last year[23]. - Earnings per share attributable to owners of the Company improved to HK$0.87 cents from a loss of HK$1.84 cents[23]. - The Group recorded revenue of approximately HK$46.9 million for the six months ended 31 December 2024, representing an increase of approximately 65.3% compared to HK$28.4 million for the same period in 2023[151]. - Gross profit margin increased to approximately 34.4% for the six months ended 31 December 2024, up from 29.6% for the same period in 2023[151]. - Profit for the six months ended 31 December 2024 was approximately HK$1.7 million, compared to a loss of approximately HK$3.4 million for the same period in 2023[151]. Segment Performance - For the six months ended December 31, 2024, the total reportable segment revenue was HK$46,902,000, with contributions from Printing (HK$28,361,000), Food and Daily Necessities (HK$10,169,000), and Restaurant Operation (HK$8,372,000)[71]. - The reportable segment profit for the same period was HK$2,712,000, with Printing generating a profit of HK$2,303,000, while Restaurant Operation and E-Cigarette segments reported losses of HK$684,000 and HK$265,000 respectively[71]. - Revenue from the printing segment increased by approximately 39.9% to approximately HK$28.4 million, with gross profit margin rising by approximately 11.1 percentage points to 44.5%[152]. - Revenue from the food and daily necessities segment increased by approximately 25.9% to approximately HK$10.2 million, but gross profit margin dropped by approximately 5 percentage points to 15%[153]. - The Group acquired 91% equity interest in a café operation, contributing approximately HK$8.4 million in revenue during the period, with a gross profit margin of around 23%[157]. - The Group established a wholly owned subsidiary for the E-cigarette business, maintaining stocks valued at approximately HK$750,000 as of 31 December 2024[158]. - The Group established a new business segment for E-cigarette sales in New Zealand, with sales commencing in February 2025[165]. Assets and Liabilities - Current assets increased to HK$46,902,000 as of December 31, 2024, compared to HK$44,870,000 as of June 30, 2024[27]. - Total assets increased to HK$70,183,000 as of December 31, 2024, up from HK$68,002,000 as of June 30, 2024, reflecting a growth of 3.4%[81]. - Reportable segment assets rose to HK$87,258,000 as of December 31, 2024, compared to HK$75,722,000 as of June 30, 2024, indicating an increase of 15.5%[81]. - The Group's liabilities totaled HK$28,223,000 as of December 31, 2024, compared to HK$27,583,000 as of June 30, 2024, showing a slight increase of 2.3%[81]. - Trade payables increased to HK$3,810,000 as of December 31, 2024, from HK$2,699,000 as of June 30, 2024, representing a growth of 41.2%[121]. - The total trade and other payables amounted to HK$12,383,000 as of December 31, 2024, compared to HK$11,674,000 as of June 30, 2024, reflecting an increase of 6.1%[121]. Cash Flow - Net cash generated from operating activities for the six months ended December 31, 2024, was HK$6,744,000, compared to a net cash used of HK$2,899,000 in the same period of 2023[36]. - Cash and cash equivalents at the end of the period were HK$34,917,000, down from HK$37,609,000 at the end of the previous period[36]. - Net cash used in investing activities was HK$921,000, a decrease from HK$560,000 generated in the same period of 2023[36]. - Net cash used in financing activities increased to HK$4,471,000 from HK$3,204,000 in the previous year[36]. - As of December 31, 2024, the total cash and cash equivalents amounted to approximately HK$35.0 million, an increase of approximately HK$1.4 million from June 30, 2024[181]. Management and Governance - The company’s directors are responsible for the preparation and presentation of the interim financial report[14]. - The independent auditor is Grant Thornton Hong Kong Limited, which has provided a review conclusion without expressing an audit opinion[21]. - The Board of the Company is the chief operating decision maker, overseeing the Group's performance and segment reporting[66]. - Key management personnel remuneration details were not specified, but it includes amounts paid to directors and senior management[136]. Market and Business Strategy - The company plans to continue expanding its market presence, particularly in the e-cigarette sector, as indicated by the establishment of the new subsidiary[68]. - The Group plans to enhance sales efforts, improve production quality, strengthen internal controls, and implement stringent cost control measures in response to global economic uncertainties[159]. Dividend and Share Capital - The Company declared a dividend to non-controlling interests amounting to HK$164,000 during the period[31]. - The Company maintained a stable share capital of HK$1,840,000 throughout the reporting period[28]. - The company did not recommend the payment of an interim dividend for the six months ended 31 December 2024, consistent with the previous year[98][101]. - No share options were granted during the six months ended December 31, 2024, and there are no outstanding share options as of that date[189][195]. Risks and Financial Management - The Group primarily conducts transactions in USD and HKD, with no significant exposure to foreign exchange risk due to the peg between HKD and USD[192][198]. - Management does not hedge foreign currency risks as the exchange rate between HKD and USD is tightly controlled[193][199]. - The Group has maintained a prudent financial management policy, ensuring a stable liquidity position throughout the period[187].
HSSP INTL(03626) - 2025 - 中期财报