Financial Performance - The Group recorded revenue of approximately HK$75.5 million for the year ended 30 June 2022, representing an increase of approximately 20.5% compared to HK$62.7 million for the year ended 30 June 2021[14]. - Revenue from the manufacturing and sale of apparel labels and packaging printing products increased by approximately 11.2% to approximately HK$69.7 million for FY 2022[25]. - The new business segment related to the sale and distribution of food, daily necessities, and utility products contributed approximately HK$5.8 million to the Group's revenue for FY 2022[25]. - The gross profit margin was approximately 29.9% for FY 2022, which is a slight increase of 0.3 percentage points from 29.6% in FY 2021[26]. - Loss and total comprehensive expense for FY 2022 was approximately HK$3.8 million, compared to a loss of approximately HK$3.0 million for FY 2021[14]. - Selling expenses increased due to higher freight charges during the pandemic period[26]. - Administrative and other operating expenses rose by approximately HK$0.5 million to approximately HK$20.8 million for FY 2022, attributed to the new business operations[47]. - Total comprehensive expense for FY 2022 was approximately HK$3.8 million, compared to approximately HK$3.0 million for FY 2021[48]. Business Environment - The Group's performance was impacted by the COVID-19 pandemic and ongoing geopolitical tensions, leading to decreased demand for apparel labels and packaging printing products[15]. - The business environment is expected to remain challenging in the near term due to ongoing global uncertainties[15]. - The Group plans to actively consider business diversification and seek beneficial partnerships to maximize shareholder interests[20]. - The Group plans to continue exploring suitable business opportunities to diversify and strengthen its business foundation[32]. Liquidity and Financial Position - As of June 30, 2022, the total cash and cash equivalents were approximately HK$57.9 million, a decrease of approximately HK$4.1 million from the previous year[49]. - The current ratio as of June 30, 2022, was 4.53 times, down from 5.80 times in 2021, indicating a decrease in liquidity[54]. - As of June 30, 2022, the current ratio was 4.53 (2021: 5.80) and the quick ratio was 4.27 (2021: 5.47) indicating a decrease in liquidity[58]. - The Group had no outstanding share options granted as of June 30, 2022, and no share options were granted during FY 2022[57]. - As of June 30, 2022, the Group had not pledged any assets, maintaining a clean balance sheet[65]. - The Group does not hedge its foreign currency risks as the HKD is pegged to the USD, minimizing exposure to significant currency risk[66]. - There were no material contingent liabilities identified as of June 30, 2022[73]. Corporate Governance - The company is committed to maintaining high standards of corporate governance with independent non-executive directors overseeing key committees[99]. - The company is committed to maintaining high standards of corporate governance to enhance shareholder value[123]. - The Board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[125]. - The company has complied with the Corporate Governance Code throughout the year ended June 30, 2022, with some deviations disclosed[124]. - The company has established appropriate liability insurance for directors against legal actions arising from corporate activities[134]. - The Board is responsible for formulating the Group's overall strategy and policies, including monitoring operational and financial performance[132]. - The company has a commitment to transparency and quality of disclosure in its financial reporting[123]. - The Board delegates day-to-day management to the management of principal subsidiaries while retaining final decision-making authority[133]. - The company aims to present a clear assessment of its performance, position, and prospects in its annual and interim reports[131]. - The Board held 4 regular meetings during the year ended June 30, 2022, to review overall strategy and monitor financial performance[144]. - All Directors attended 1 out of 1 general meetings, indicating full participation in shareholder engagement[160]. - Independent Non-executive Directors confirmed their independence annually, ensuring compliance with Rule 3.13 of the Listing Rules[145]. - Directors are regularly updated on governance and regulatory matters to enhance their awareness of corporate governance practices[164]. - Continuous professional development for Directors was emphasized, with training records required to be submitted annually[165]. - The Company Secretary provides updates on listing rules and regulatory requirements to all Directors[146]. - The Board is responsible for maintaining ongoing dialogue with shareholders, particularly during annual general meetings[161]. - All Directors participated in continuous professional development to refresh their knowledge and skills related to their roles[163]. - The attendance of Directors at meetings is documented, ensuring transparency and accountability[149]. - The Company ensures that all Directors are properly briefed on issues arising at board meetings[152]. - The company has maintained a board composition of three executive directors and three independent non-executive directors (INEDs), meeting the minimum requirement of the Listing Rules[177]. - All INEDs have confirmed their independence annually, and the board considers all of them to remain independent[171]. - The company has adopted a Board Diversity Policy aimed at enhancing performance quality through diversity in gender, age, cultural background, and professional experience[179]. - The Nomination Committee has reviewed the Board Diversity Policy and confirmed that the group achieved its objectives for the year ended June 30, 2022[184]. - The roles of chairman and chief executive officer are currently held by Mr. Samson Fung, which the board believes ensures consistent leadership and effective strategic planning[169]. - All directors are subject to retirement by rotation and re-election at least once every three years, ensuring accountability to shareholders[186]. Audit and Financial Oversight - The Audit Committee, comprising three INEDs, has been established in compliance with the Listing Rules[188]. - The company has received annual written confirmations of independence from all INEDs, ensuring compliance with regulatory requirements[174]. - The Audit Committee consists of three independent non-executive directors, chaired by Dr. Lu Hailin, and held two meetings during the year ended June 30, 2022[197]. - The Audit Committee reviewed the 2022 consolidated financial statements and discussed new accounting policies and significant management judgments affecting the Group's financial statements[198]. - The external auditor assessed the Group's internal controls and discussed the impact of new or revised accounting policies with the Audit Committee[198]. - The Audit Committee recommended the Board to approve the consolidated financial statements for the year ended June 30, 2022, along with the independent auditor's report[198]. - The Audit Committee serves as a vital link between the Board and the Company's auditors, ensuring the independence and objectivity of the auditors are maintained[200]. - The terms of reference for the Audit Committee were updated in 2022 to comply with Code Provision C.3.3 of the Code[197]. - The Audit Committee's responsibilities include overseeing the financial reporting process, risk management, and internal control systems of the Company[199]. - The management is responsible for preparing the Group's financial statements, while the external auditor is tasked with auditing them[199]. - The Audit Committee assists the Board by providing an independent review of the financial statements and supervising the financial reporting and internal control systems[199]. - The Audit Committee held discussions with management regarding significant judgments that impacted the Group's financial statements[198]. Leadership and Management - Mr. David Fung has over 21 years of experience in the apparel label and packaging printing industry, having co-founded Hang Sang (Siu Po) in November 1999[91]. - The company acquired A W Printing in December 1997, which specializes in trading apparel labels and packaging printing products[92]. - Mr. Alex Fung, appointed as vice president and executive director, has a background in private banking with J.P. Morgan Chase Bank, N.A.[95]. - Dr. Loke Yu, an independent non-executive director, has over 43 years of experience in accounting and auditing for private and public companies[97]. - Ms. Fung Po Yee, appointed as an independent non-executive director, has a legal background and co-founded CFN Lawyers in January 2013[107]. - The company has a strong leadership team with directors having diverse backgrounds in finance, law, and management[106]. - The leadership team includes members with international education and professional experience, enhancing the company's strategic direction[108]. - The company has established a solid foundation for future growth through strategic acquisitions and experienced management[93].
HSSP INTL(03626) - 2022 - 年度财报