Revenue Performance - The Group's revenue decreased by approximately 4.1% to approximately HK$344.3 million for the six months ended December 31, 2022, compared to the same period last year[14]. - Revenue for the six months ended December 31, 2022, decreased by approximately 4.1% to approximately HK$344.3 million compared to HK$358.9 million for the same period in 2021[44]. - For the six months ended 31 December 2022, the company's revenue was approximately HK$344.3 million, a decrease of 4.0% from HK$358.9 million in the same period of 2021[96]. - Revenue contribution from packaging printing services was approximately 56.2%, with a slight decrease of approximately 1.0% to HK$113.7 million[24][25]. - Revenue from packaging printing services was approximately HK$113.7 million, a decrease of about 1.0% year-on-year due to conservative consumer spending[26]. - Revenue from paper gift set printing decreased by approximately 3.0% to approximately HK$195.6 million, attributed to customers tightening their marketing budgets[29]. - Revenue from card printing increased by approximately 26.0% to approximately HK$27.1 million, driven by special promotion campaigns from overseas customers[30]. - Revenue from smart package printing decreased by approximately 67.4% to approximately HK$5.6 million, reflecting reduced orders due to conservative customer spending[34]. - Revenue from other printing services decreased by approximately 36.1% to approximately HK$2.3 million, primarily due to a decline in orders for plastic products[35]. - Revenue from Europe was HK$139,651,000, down 2.4% from HK$143,701,000 in 2021; revenue from the USA increased by 11.4% to HK$88,012,000 from HK$78,864,000[127]. - Revenue from Hong Kong decreased significantly by 51.8% to HK$48,088,000 from HK$99,715,000[127]. Profitability Metrics - Gross profit increased by approximately 11.4% from approximately HK$133.0 million to approximately HK$148.1 million for the same period[15]. - Gross profit margin improved from approximately 37.1% to approximately 43.0% for the six months ended December 31, 2022[16]. - Net profit for the period increased by approximately HK$15.2 million to approximately HK$66.1 million, with a net profit margin rising from approximately 14.2% to approximately 19.2%[16]. - Basic earnings per share rose to HK13.77 cents, compared to HK10.60 cents for the corresponding period in 2021[17]. - Profit before tax increased to approximately HK$84.7 million, up 27.5% from HK$66.4 million in the prior year[96]. - The company reported a profit for the period of approximately HK$66.1 million, an increase of 30.0% compared to HK$50.9 million in the same period of 2021[96]. - Total comprehensive income attributable to owners of the company decreased to HK$48,868,000, down 5.7% from HK$51,814,000 in the previous year[100]. - Profit for the period increased to HK$66,074,000, up 30.0% from HK$50,868,000 in the same period last year[100]. Cost Management - The Group is focused on improving cost efficiency and reducing redundancy costs associated with worker relocation[15]. - Administrative expenses remained stable at approximately HK$61.3 million for the six months ended December 31, 2022[47]. - Selling and distribution expenses decreased to approximately HK$4.6 million, down from approximately HK$5.0 million in the previous year, due to lower sales and redundancy costs[48]. - Direct labor costs for the six months ended 31 December 2022 were approximately HK$37.7 million, slightly up from HK$37.6 million in the same period of 2021[77]. Financial Position - Net assets increased to approximately HK$483.6 million as of December 31, 2022, from HK$467.4 million as of June 30, 2022, primarily due to operational profits[64]. - Cash and bank balances amounted to approximately HK$263.9 million as of December 31, 2022, up from approximately HK$237.4 million as of June 30, 2022[66]. - The current ratio improved to approximately 3.3 times as of December 31, 2022, compared to 3.1 times as of June 30, 2022[66]. - Trade receivables decreased to HK$58,646,000 from HK$79,682,000 as of June 30, 2022[102]. - Current assets decreased to HK$388,138,000 from HK$395,055,000 as of June 30, 2022[102]. - Total assets less current liabilities increased to HK$595,583,000 from HK$590,053,000 as of June 30, 2022[102]. - Cash and cash equivalents increased to HK$263,907,000 from HK$237,159,000 as of June 30, 2022[102]. - Trade payables as of December 31, 2022, totaled HK$21,636,000, down 31.5% from HK$31,563,000 on June 30, 2022[177]. Investment and Capital Expenditure - The group recorded over HK$37.4 million in capital expenditure during the period, mainly for automation and equipment upgrades[68]. - The company utilized approximately HK$80.6 million for equipment upgrades, HK$31.0 million for relocating the Shenzhen factory, and HK$8.3 million for general working capital from the net proceeds of HK$124.0 million from the IPO[86][92]. - The Group acquired property, plant, and equipment at a cost of HK$37,361,000, significantly higher than HK$6,111,000 in the same period last year[159]. Taxation and Finance Costs - Income tax expenses increased by approximately HK$3.0 million to about HK$18.6 million for the six months ended December 31, 2022, with effective tax rates remaining stable at 22.0%[58]. - Total tax charge for the period increased to HK$18,636,000, representing a 19.9% rise from HK$15,559,000 in the previous year[148]. - Finance costs rose to approximately HK$4.3 million for the six months ended December 31, 2022, from HK$1.7 million in the same period of 2021, primarily due to new lease liabilities for a factory[57]. - Interest on lease liabilities increased to HK$4,262,000 from HK$1,684,000, reflecting a significant rise in financing costs[138]. Future Outlook - The outlook for the interim period is challenging due to ongoing global economic concerns, including high inflation and geopolitical tensions[40]. - The printing industry in Hong Kong continues to face challenges from the unfavorable economic climate and geopolitical tensions[10]. Corporate Governance and Compliance - The Company is committed to maintaining transparency in accordance with the Listing Rules and has disclosed relevant interests of directors[200]. - The management's assessment of fair value is crucial for accurate financial reporting and compliance with regulatory requirements[198].
新兴印刷(01975) - 2023 - 中期财报