Financial Performance - Revenue for the six months ended June 30, 2025, was HK$82,121,233, a slight increase from HK$81,934,259 in the same period of 2024, representing a growth of approximately 0.23%[15] - Gross profit decreased to HK$15,780,668 for the six months ended June 30, 2025, down from HK$17,038,630 in 2024, reflecting a decline of about 7.4%[15] - Operating expenses surged to HK$28,825,819 in the first half of 2025, compared to HK$16,555,929 in 2024, marking an increase of approximately 74.1%[15] - The net loss for the six months ended June 30, 2025, was HK$8,457,024, compared to a net income of HK$828,511 in the same period of 2024[15] - The company reported a total comprehensive loss of HK$9,054,479 for the six months ended June 30, 2025, compared to a total comprehensive income of HK$291,631 in 2024[15] Assets and Liabilities - Total current assets decreased to HK$99,248,172 as of June 30, 2025, from HK$117,506,815 as of December 31, 2024, a decline of about 15.5%[13] - Total liabilities increased to HK$105,870,714 as of June 30, 2025, up from HK$91,693,931 as of December 31, 2024, representing an increase of approximately 15.4%[13] - Cash and cash equivalents dropped significantly to HK$21,016,175 as of June 30, 2025, from HK$44,637,131 as of December 31, 2024, a decrease of about 53%[13] - Total shareholders' equity decreased to HK$63,180,117 as of June 30, 2025, down from HK$72,234,596 as of January 1, 2025, a decline of about 12.5%[14] Cash Flow - Cash generated from operating activities decreased to HK$11,393,670 in 2024, turning into a cash outflow of HK$22,840,814 in 2025[19] - The company reported a net cash used in investing activities of HK$4,560,095 in 2025, compared to HK$5,402,136 in 2024[19] - The company’s total cash and cash equivalents and restricted cash at the end of the period was HK$36,141,717 in 2025, compared to HK$25,416,754 in 2024[19] Revenue Breakdown - For the six months ended June 30, 2025, total revenue was HK$82,121,233 (approximately US$10,461,437), a slight increase from HK$81,934,259 (approximately US$10,493,226) in the same period of 2024[79] - Book products revenue decreased to HK$34,020,084 (approximately US$4,333,824), representing 41.4% of total revenue, down from 53.3% in the prior year[79] - Novelty and packaging products revenue increased to HK$48,101,149 (approximately US$6,127,613), accounting for 58.6% of total revenue, up from 46.7%[79] Accounts Receivable and Inventories - As of June 30, 2025, accounts receivable from third parties increased to HK$33,416,531 (approximately US$4,256,937) from HK$23,658,209[81] - Total inventories decreased to HK$10,380,189 (approximately US$1,322,334) as of June 30, 2025, down from HK$11,757,137[85] Borrowings and Lease Liabilities - Proceeds from bank and other borrowings increased to HK$10,673,035 in 2025, up from HK$8,451,651 in 2024[19] - As of June 30, 2025, total bank and other borrowings amounted to HK$21,649,529 (approximately US$2,757,937), an increase from HK$17,179,545 (approximately US$2,200,000) as of December 31, 2024[89][92] - Operating lease right-of-use assets rose significantly to HK$25,901,013 (approximately US$3,299,534) as of June 30, 2025, from HK$6,960,066 (approximately US$890,000) as of December 31, 2024[93] - Total operating lease liabilities also increased to HK$25,901,013 (approximately US$3,299,534) as of June 30, 2025, compared to HK$6,960,066 (approximately US$890,000) as of December 31, 2024[93] Taxation - For the six months ended June 30, 2025, the income tax expense was a credit of HK$1,697,782 (approximately US$216,281) compared to an expense of HK$222,794 for the same period in 2024[107] - As of June 30, 2025, the total deferred tax assets amounted to HK$3,611,952 (approximately US$460,127) after recognizing a credit of HK$1,741,133[108] Customer Concentration - Three customers accounted for 42.1%, 19.6%, and 18.9% of the Company's total revenue for the six months ended June 30, 2025, indicating increased customer concentration risk[113] - As of June 30, 2025, four customers accounted for 36.8%, 23.6%, 20.4%, and 12.1% of the total balance of accounts receivable[114] IPO and Legal Standing - The Company raised total net proceeds of approximately HK$63.9 million (US$8.2 million) from its IPO and over-allotment after deducting expenses[119] - The Company incurred approximately HK$18.6 million (US$2.4 million) in underwriting discounts and commissions and offering expenses during the IPO process[120] - The Company has no outstanding lawsuits or claims as of June 30, 2025, indicating a stable legal standing[124] - There are no material subsequent events requiring recognition or disclosure in the financial statements as of October 30, 2025[125]
Samfine Creation Holdings Group Limited(SFHG) - 2025 Q2 - Quarterly Report