Financial Performance - The company reported a significant increase in revenue, with a year-on-year growth of 15%[14]. - The net profit for the period was reported at HKD 50 million, representing a 10% increase compared to the previous period[14]. - Revenue for the six months ended 31 December 2022 was HK$26,487,000, a decrease of 33.2% compared to HK$39,864,000 in the same period of 2021[23]. - Gross profit for the same period was HK$5,520,000, down 60.9% from HK$14,110,000 in 2021[23]. - The Group's revenue for the six months ended December 31, 2022, was HK$26,487,000, a decrease of 33.5% compared to HK$39,864,000 for the same period in 2021[68]. - The Group reported a loss before income tax of HK$11,010,000 for the six months ended December 31, 2022, compared to a profit of HK$1,413,000 in the same period of 2021[106]. - The Group reported a loss and total comprehensive expense of approximately HK$11.0 million for Period 2022, compared to a profit of approximately HK$1.4 million for Period 2021[178]. User and Market Data - User data showed an increase in active users by 20%, reaching a total of 1.2 million[14]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share over the next two years[14]. Product and Technology Development - New product launches are expected to contribute an additional HKD 30 million in revenue for the next fiscal year[14]. - The company is investing in new technology development, allocating HKD 10 million for R&D in the upcoming year[14]. Strategic Initiatives - A strategic acquisition is in progress, which is anticipated to enhance the company's service offerings and increase customer base by 15%[14]. - The management has provided an optimistic outlook, projecting a revenue growth of 20% for the next fiscal year[14]. - The company aims to improve operational efficiency, targeting a reduction in costs by 5% through process optimization[14]. Cash Flow and Financial Position - The total cash and cash equivalents at the end of the period decreased to HK$52,775,000 from HK$61,893,000, reflecting a net decrease of HK$5,171,000[37]. - The company reported a decrease in cash generated from operations, with a cash outflow of HK$1,012,000 compared to an inflow of HK$1,040,000 in the previous year[37]. - The net cash used in financing activities was HK$4,156,000, significantly higher than HK$1,421,000 in the prior period, primarily due to increased lease rental payments[37]. - The current ratio as of December 31, 2022, was 4.01 times, down from 4.53 times as of June 30, 2022, while the quick ratio was 3.71 times, down from 4.27 times[185][189]. Assets and Liabilities - Non-current assets decreased to HK$12,039,000 from HK$18,654,000 as of 30 June 2022, reflecting a decline of 35.4%[27]. - Current assets totaled HK$63,487,000, down from HK$67,803,000 as of 30 June 2022, a decrease of 6.8%[27]. - Total equity decreased to HK$56,708,000 from HK$67,718,000, a reduction of 16.3%[28]. - Trade payables rose to HK$3,592,000 as of December 31, 2022, representing a significant increase of 27.4% from HK$2,820,000 as of June 30, 2022[136]. Impairment and Losses - The company reported an impairment loss on non-financial assets of HK$3,946,000 during the period[23]. - The Group recorded a write-down of slow-moving inventories amounting to HK$511,000 during the reporting period[74]. - The loss allowance for trade receivables increased to HK$1,436,000 as of December 31, 2022, up from HK$1,367,000 as of June 30, 2022, reflecting a 5.04% increase[131]. Revenue Segmentation - Revenue from the sale of apparel labels and packaging printing products was HK$23,029,000, down 38.5% from HK$37,434,000 in the previous year[68]. - Revenue from the sale of food, daily necessities, and utility products increased by 42.3% to HK$3,458,000 from HK$2,430,000[68]. - Reportable segment revenue for food and daily necessities was HK$23,142,000, while printing segment revenue was HK$3,458,000, resulting in a total reportable segment revenue of HK$26,600,000[74]. Operational Expenses - Selling expenses decreased by approximately HK$0.5 million to approximately HK$3.2 million for Period 2022, mainly due to reduced freight charges and sales commissions[176]. - Administrative and other operating expenses increased by approximately HK$0.6 million to approximately HK$10.7 million for Period 2022, primarily due to increased depreciation on property, plant, and equipment[177]. Compliance and Governance - The interim financial report was prepared in accordance with HKAS 34 and has been reviewed by the Audit Committee, ensuring compliance with applicable disclosure provisions[42]. - The Group has not adopted any new or amended HKFRSs that are not yet effective, and anticipates no material impact on its financial statements from future pronouncements[63].
HSSP INTL(03626) - 2023 - 中期财报