Financial Performance - Group revenue decreased by approximately 26.3% to approximately HK$218.3 million for the year ended 30 June 2025, compared to HK$296.2 million in the previous year[8]. - The Group recorded a loss attributable to owners of the Company of approximately HK$88.6 million, a significant decline from a profit of approximately HK$17.1 million in the prior year[9]. - Gross profit dropped by approximately 26.4% from approximately HK$83.7 million for the year ended 30 June 2024 to approximately HK$61.6 million for the year ended 30 June 2025[28]. - The net loss for the year ended 30 June 2025 was approximately HK$88.6 million, a turnaround from a profit of approximately HK$17.1 million for the year ended 30 June 2024[29]. - The net profit margin decreased from approximately 5.8% for the year ended 30 June 2024 to a net loss margin of approximately 40.6% for the year ended 30 June 2025[29]. - Basic loss per share for the year ended 30 June 2025 was HK18.47 cents, compared to basic earnings per share of HK3.57 cents for the year ended 30 June 2024[30]. Asset and Liability Management - The total assets of the Group decreased to approximately HK$515.3 million as of 30 June 2025, down from HK$632.4 million in the previous year[5]. - Total liabilities decreased to approximately HK$143.9 million as of 30 June 2025, compared to HK$152.7 million in the previous year[5]. - Equity attributable to owners of the Company was approximately HK$371.4 million as of 30 June 2025, down from HK$479.7 million in the previous year[5]. - The Group's net assets decreased from approximately HK$479.7 million as of 30 June 2024 to approximately HK$371.4 million as of 30 June 2025, primarily due to impairment losses[71]. Cash Flow and Dividends - Cash and cash equivalents as of 30 June 2025 were approximately HK$276.7 million, down from approximately HK$317.0 million in the previous year[10]. - The Board recommended a special dividend of HK1.0 cent per share and a final dividend of HK2.5 cents per share, bringing the total dividend for the year to HK4.5 cents per share, up from HK3.5 cents in the previous year[11]. - The Directors recommended a total dividend of HK4.5 cents per share for the current year, up from HK3.5 cents per share in the previous year[83]. Operational Strategy - Strategic initiatives are in place to navigate uncertain market conditions and capture future opportunities in the 2025/2026 financial year[12]. - The Group is advancing the establishment of a manufacturing hub in Indonesia to enhance cost competitiveness and strengthen supply chain resilience[23]. - A strategic investment in ESG Print Limited is being completed to address the growing demand for ESG-related printing solutions[23]. - The Group plans to invest in advanced printing technologies and automation to enhance quality and turnaround times while expanding smart packaging and sustainable product offerings[50]. - The Group is evaluating Indonesia as a second manufacturing hub to diversify production and improve supply chain robustness[50]. Revenue Breakdown - The revenue contribution from packaging printing services was 42.2% for the year ended 30 June 2025, compared to 24.8% for the year ended 30 June 2024[36][38]. - The contribution from card printing services decreased significantly from 6.4% in 2024 to 5.3% in 2025, reflecting changing customer sentiment[36][38]. - Revenue from packaging printing increased by approximately 25.8% to approximately HK$92.2 million for the year ended 30 June 2025, compared to approximately HK$73.3 million for the year ended 30 June 2024[39]. - Revenue from paper gift set printing decreased by approximately 45.9% to approximately HK$102.0 million for the year ended 30 June 2025, down from approximately HK$188.4 million for the year ended 30 June 2024[40]. - Revenue from card printing services decreased by approximately 39.5% to approximately HK$11.5 million for the year ended 30 June 2025[41]. - Revenue from smart package printing dropped by approximately 45.3% to approximately HK$5.2 million for the year ended 30 June 2025[42]. - Revenue from other printing increased by approximately 23.3% to approximately HK$7.4 million for the year ended 30 June 2025[43]. Cost Management - Gross profit margin remained stable at approximately 28.2%, compared to approximately 28.3% in the previous year, indicating effective cost management[10]. - Administrative expenses decreased from approximately HK$72.1 million for the year ended 30 June 2024 to approximately HK$65.2 million for the year ended 30 June 2025, due to a deterioration in overall results and stricter cost control policies[65]. - Other operating income dropped from approximately HK$3.7 million for the year ended 30 June 2024 to approximately HK$0.6 million for the year ended 30 June 2025, primarily due to an impairment loss of trade receivables of approximately HK$2.0 million[66]. - Impairment losses of property, plant and equipment and right-of-use assets increased significantly from approximately HK$1.2 million for the year ended 30 June 2024 to approximately HK$87.7 million for the year ended 30 June 2025, reflecting worsened operating performance[67]. - Other income and government grants decreased from approximately HK$17.3 million for the year ended 30 June 2024 to approximately HK$14.3 million for the year ended 30 June 2025, attributed to lower time deposit balances[68]. - Finance costs reduced from approximately HK$7.9 million for the year ended 30 June 2024 to approximately HK$7.0 million for the year ended 30 June 2025, mainly due to continuous repayment of lease liabilities[69]. Corporate Governance - The Company emphasizes accountability and transparency in its corporate governance practices, aiming to continuously improve these practices[100]. - The board consists of 8 directors, including 4 executive directors, 3 independent non-executive directors, and 1 non-executive director, ensuring a balanced composition for effective management[102]. - All independent non-executive directors have confirmed their independence in accordance with the guidelines set out in the Listing Rules[104]. - The attendance record for board meetings shows a 100% attendance rate for all directors since June 30, 2024[118]. - The Company Secretary ensures compliance with procedures and regulations, maintaining minutes of board meetings available for inspection[119]. - Directors have full access to Group information and can obtain independent professional advice when necessary[120]. - Newly appointed directors receive comprehensive induction and ongoing professional development to understand the Company's operations and responsibilities[121]. - The Company has engaged AE Majoris Corporate Services Company Limited for compliance and company secretarial services to adapt to regulatory changes[127]. - The Company Secretary completed no less than 15 hours of relevant professional training for the year ended June 30, 2025, as required by the Listing Rules[128]. Audit and Remuneration - The auditors received approximately HK$1,398,000 for audit services for the year ended June 30, 2025, compared to HK$1,358,000 in 2024[145]. - Non-audit services provided to the Group amounted to approximately HK$65,500 for the year, down from HK$80,000 in 2024[145]. - The Remuneration Committee reviewed the remuneration policy and structure for all directors and senior management, which includes basic salary and performance bonuses[153]. - The Remuneration Committee held two meetings since June 30, 2024, with a 100% attendance rate by all members[155]. Shareholder Engagement - The Company emphasizes the importance of communication with shareholders and has adopted a Shareholders Communication Policy to provide timely information[189]. - Voting at general meetings will be conducted by poll, with detailed procedures explained to shareholders at the start of the meeting[191]. - The Company has established procedures for shareholders to move resolutions at general meetings through requisitioning an EGM[200]. - The Company’s governance report highlights the importance of shareholder engagement and the presence of external auditors at the AGM to address shareholder inquiries[190].
新兴印刷(01975) - 2025 - 年度财报