Financial Reporting - The interim financial report for the six-month period ended December 31, 2021, includes a condensed consolidated statement of profit or loss and other comprehensive income[12]. - The Group's financial position as of December 31, 2021, is detailed in the condensed consolidated statement of financial position[12]. - The report complies with Hong Kong Accounting Standard 34 "Interim Financial Reporting" as required by the Hong Kong Stock Exchange[12]. - The independent review concluded that nothing has come to attention that causes belief that the interim financial report is not prepared in accordance with HKAS 34[18]. - The report includes a condensed consolidated statement of changes in equity and a condensed consolidated statement of cash flows for the reporting period[12]. - The Group's management discussion and analysis section provides insights into performance and future outlook[12]. - The report outlines the responsibilities of the directors in preparing the interim financial report[12]. - The independent auditor conducted the review in accordance with Hong Kong Standard on Review Engagements 2410[17]. - The report is prepared for the board of directors and does not assume responsibility towards any other person[13]. - The interim financial report was authorized for issue on 25 February 2022 and has been reviewed by the Audit Committee[41]. - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[54]. - The adoption of new and amended HKFRSs had no material impact on the Group's results and financial position for the current and prior periods[56]. - Certain new and amended HKFRSs have been published but are not yet effective and have not been adopted early by the Group[64]. Financial Performance - Revenue for the six months ended 31 December 2021 was HK$39,864,000, representing a 32.5% increase from HK$30,077,000 in the same period of 2020[21]. - Gross profit for the same period was HK$14,110,000, up 37.5% from HK$10,242,000 in 2020[21]. - Profit before income tax increased to HK$1,396,000, a 59.5% rise compared to HK$876,000 in the previous year[21]. - Profit and total comprehensive income for the period was HK$1,413,000, reflecting a 25.6% increase from HK$1,125,000 in 2020[21]. - Basic and diluted earnings per share attributable to equity owners of the Company rose to HK$0.77 cents, up from HK$0.61 cents in the prior year[21]. - The profit attributable to equity owners for the six months ended December 31, 2021, was HK$1,413,000, up 25.6% from HK$1,125,000 in the same period of 2020[107]. - The gross profit margin for Period 2021 was approximately 35.4%, an increase of approximately 1.3 percentage points from 34.1% in Period 2020[156]. - The total income tax credit for the period was HK$17,000, a decrease from HK$249,000 in the previous year[104]. Financial Position - Total assets less current liabilities as of 31 December 2021 were HK$75,436,000, slightly up from HK$75,395,000 as of 30 June 2021[25]. - Net assets increased to HK$72,966,000 from HK$71,553,000, indicating a growth of 1.96%[26]. - Cash and cash equivalents were HK$61,893,000, showing a slight decrease from HK$62,047,000[25]. - The current ratio as of December 31, 2021, was 5.66 times, slightly down from 5.80 times as of June 30, 2021[187]. - The quick ratio as of December 31, 2021, was 5.29 times, compared to 5.47 times as of June 30, 2021[187]. - There were no bank or other borrowings as of December 31, 2021[186]. - The Group has not pledged any assets as of December 31, 2021, consistent with the previous period[193]. - The Group's financial instruments carried at cost or amortized cost were not materially different from their fair values as of December 31, 2021, and June 30, 2021, due to short-term maturities[152]. Cash Flow - Net cash from operating activities decreased to HK$1,344,000 from HK$5,514,000, representing a decline of approximately 75.7% year-over-year[36]. - Cash generated from operations fell to HK$1,040,000, down 77% from HK$4,547,000 in the previous year[36]. - The company reported a net cash outflow from investing activities of HK$77,000 compared to a cash inflow of HK$105,000 in the prior period[36]. - The company recorded a net decrease in cash and cash equivalents of HK$154,000, contrasting with an increase of HK$5,246,000 in the previous year[36]. - Cash and cash equivalents at the end of the period were HK$61,893,000, slightly up from HK$61,765,000 year-over-year[36]. Revenue Segmentation - Revenue from the sale of apparel labels and packaging printing products was HK$37,434,000, up from HK$30,077,000, representing a growth of 24.5%[78]. - Revenue from the sale of food, daily necessities, and utility products was HK$2,430,000, a new segment introduced in 2021[78]. - The reportable segment profit for printing was HK$3,256,000, while the food and daily necessities segment incurred a loss of HK$1,180,000, resulting in a total profit of HK$2,076,000[87]. - As of December 31, 2021, reportable segment assets totaled HK$90,490,000, with HK$86,962,000 from printing and HK$3,528,000 from food and daily necessities[87]. - Reportable segment liabilities amounted to HK$76,484,000, with HK$71,447,000 attributed to printing and HK$5,037,000 to food and daily necessities[87]. Expenses and Costs - Staff costs for the period were HK$12,076,000, slightly down from HK$12,221,000 in the previous year[100]. - The company reported a cost of inventories recognized as an expense of HK$25,754,000, an increase from HK$19,835,000 in the previous year[100]. - Selling expenses increased by approximately HK$0.4 million to approximately HK$3.7 million due to increased freight charges caused by COVID-19 disruptions[174]. - Administrative and other operating expenses rose by approximately HK$0.2 million to approximately HK$10.1 million, primarily due to the new business segment's additional costs[175]. Management and Governance - The company did not recommend any interim dividend for the six months ended December 31, 2021, compared to HK$0 for the same period in 2020[106]. - Key management personnel remuneration totaled HK$4,393,000 for the six months ended December 31, 2021, slightly down from HK$4,614,000 in the same period of 2020, a decrease of 4.8%[151]. - Discretionary bonuses for key management were not paid in 2021, compared to HK$232,000 in 2020[151]. Market Conditions - The ongoing COVID-19 pandemic and geopolitical tensions are expected to influence market confidence and lead to cautious business strategies among customers[157]. - The Group will continue to explore suitable business opportunities to diversify and strengthen its business foundation[163].
HSSP INTL(03626) - 2022 - 中期财报