Financial Performance - For the fiscal year ended June 30, 2025, the Group recorded revenue of approximately HK$95.2 million, representing an increase of approximately 35.9% compared to the previous year[19]. - The gross profit margin for FY2025 was approximately 38.2%, which is approximately 8.7% higher than that for FY2024[19]. - The Group achieved a profit and total comprehensive income of approximately HK$2.3 million for FY2025, in contrast to a loss of approximately HK$2.3 million for FY2024[19]. - Revenue growth in the printing segment was approximately 16.0%, reaching approximately HK$56.0 million despite geopolitical tensions and sluggish global economic growth[20]. - The Group recorded revenue of approximately HK$95.2 million for FY2025, representing an increase of approximately 35.9% compared to FY2024[37]. - The gross profit margin increased to approximately 38.2% for FY2025, up from 29.5% in FY2024, reflecting effective cost control[37]. - Profit and total comprehensive income for FY2025 was approximately HK$2.3 million, a turnaround from a loss of approximately HK$2.3 million in FY2024[37]. - Revenue from the manufacturing and sale of apparel labels and packaging printing products increased by approximately 16.0% to approximately HK$56.0 million, with gross profit margin rising by approximately 16.5 percentage points to 49.9%[38]. - Revenue from the sales and distribution of food and daily necessities increased by approximately 36.6% to approximately HK$21.7 million, although gross profit margin dropped by approximately 0.9 percentage points to 24.4%[39]. - The restaurant operation, acquired in February 2024, contributed approximately HK$16.4 million in revenue for FY2025, with a gross profit margin of around 24.4%[25]. - The E-cigarette business generated approximately HK$1.0 million in revenue after sales commenced in February 2025[55]. - The overall cost of sales as a percentage of total revenue decreased from approximately 70.5% in FY2024 to approximately 61.8% in FY2025, a reduction of approximately 8.7 percentage points[56]. Strategic Focus and Market Conditions - The Group's strategic focus remains on expanding its product offerings and market presence despite external challenges[20]. - The overall market has been affected by escalated trade conflicts and uncertainties in demand for apparel labels and packaging printing products[20]. - The Group acknowledges the impact of geopolitical tensions and sluggish consumer demand on its business segments, particularly in the catering and consumer-led industries[24]. - The Group plans to allocate additional resources to grow international sales of its existing vaping device business, which is expected to see a compound growth rate of approximately 9.3% from US$12,444.9 million in 2024 to US$19,435.0 million in 2029[27][29]. - The Group is committed to optimizing its strategy and exploring business diversification and collaboration opportunities to ensure sustained growth[32]. Corporate Governance and Board Changes - Wade Investment SPC Limited became the controlling shareholder of the Company following the close of the Offer on June 16, 2025[17]. - Significant changes in the Board of Directors occurred in connection with the close of the Offer[17]. - Following the resignation of Mr. Fung Man Wai Samson, Mr. Lu Xiaoma was appointed as chairman and Ms. Xin Yue Jasmine Geffner as CEO effective June 16, 2025[102]. - The company has complied with the Corporate Governance Code provisions, except for the deviations disclosed, and has appointed new independent non-executive directors to meet listing requirements[108]. - The company has committed to enhancing corporate governance standards to safeguard shareholder interests and improve group performance[101]. - The company does not recommend the payment of a final dividend for FY2025[116]. - The company has adopted the Model Code for Securities Transactions by Directors and confirmed compliance by all directors during FY2025[110]. - The company will continue to review and improve its corporate governance practices and standards[109]. - The Board has complied with the Corporate Governance Code throughout the year ended June 30, 2025, with some deviations noted[161]. - The Board consists of two executive Directors and three independent non-executive Directors, ensuring a balanced governance structure[163]. Financial Position and Cash Flow - As of June 30, 2025, the total cash and cash equivalents amounted to approximately HK$15.0 million, a decrease of approximately HK$18.5 million compared to June 30, 2024, mainly due to a special dividend payment of approximately HK$19.9 million during the year[70]. - The current ratio as of June 30, 2025, was 1.66 times, down from 2.36 times as of June 30, 2024; the quick ratio was 1.52 times, down from 2.23 times as of June 30, 2024[71]. - The Group has guaranteed a total accumulated net profit after taxation of no less than HK$9,200,000 for Sky Honor Holdings Limited for the period from March 1, 2024, to September 30, 2027[80]. - The net profit after taxation for the 2024 and 2025 profit guarantee periods exceeded HK$1,300,000 and HK$2,600,000, respectively, fulfilling the guaranteed profit for those periods[81]. - As of June 30, 2025, the Group had not pledged any assets, consistent with the previous fiscal year[89]. - The Group does not hedge its foreign currency risks as the exchange rate between HK$ and USD is controlled within a tight range, minimizing significant currency risk exposure[90]. Human Resources - The Group had 71 full-time staff as of June 30, 2025, an increase from 67 as of June 30, 2024, with no significant changes in emolument policies[94]. - The company employed 71 full-time management, administrative, and operational staff in Hong Kong as of June 30, 2025, an increase from 67 staff as of June 30, 2024[100]. Director Profiles and Experience - Ms. Xin Yue Jasmine Geffner has over 20 years of experience in management, financing, fundraising, and mergers and acquisitions[125]. - Ms. Geffner served as CFO for Dorsett Hospitality International Services Limited from February 2019 to March 2025, and GreenTree Hospitality Group Limited from October 2017 to December 2018[126]. - Ms. Geffner is currently an independent director of Aureus Greenway Holdings Inc. and Helport AI Limited, both listed on Nasdaq[128]. - Mr. Ye Changqing has over 30 years of experience in professional accounting, financial advisory, and investment[132]. - Mr. Ye has been an independent non-executive director of Baozun Inc. since May 2016 and Jinxin Fertility Group Limited since June 2019[132]. - Ms. Pickett Heidi Verrill has over 30 years of experience in business strategy, global development, and financial management[139]. - Ms. Pickett is currently the Chief Business Officer at The Tie, a leading provider of information services for digital assets[139]. - Mr. Huang has more than 20 years of experience in private equity and investment banking, currently serving as CEO of Vcanbio Capital Management LLC since October 2017[147]. - Mr. Li, the CFO, has over 19 years of experience in accounting and corporate finance, overseeing financial and budget control for the Group since joining in August 2015[156]. Board Responsibilities and Meetings - The Board is responsible for enhancing shareholder value and presenting a clear assessment of the Company's performance[168]. - The Board has fiduciary duty and statutory responsibility towards the Company and the Group[169]. - The Company has arranged appropriate liability insurance cover for Directors against legal actions arising from corporate activities[175]. - The Board delegates day-to-day management to the management of principal subsidiaries[170]. - The Board held 4 regular meetings during the year ended June 30, 2025[180]. - All Directors are regularly updated on governance and regulatory matters[182]. - The Company Secretary provides updates on developments regarding the Listing Rules and other applicable regulatory requirements[177]. - Independent Non-executive Directors (INEDs) ensure effective corporate governance and monitor the Group's performance[178]. - The attendance of Directors at meetings is documented, ensuring accountability and engagement[185].
HSSP INTL(03626) - 2025 - 年度财报