Financial Performance - The Group's revenue decreased by approximately 55.6% to approximately HK$152.7 million for the six months ended 31 December 2023, compared to the same period last year[17]. - Gross profit dropped by approximately 68.9% from approximately HK$148.1 million for the six months ended 31 December 2022 to approximately HK$46.1 million for the six months ended 31 December 2023[13]. - Net profit for the period decreased by approximately HK$60.4 million from approximately HK$66.1 million for the six months ended 31 December 2022 to approximately HK$5.7 million for the six months ended 31 December 2023[14]. - Basic earnings per share was HK1.18 cents, compared to HK13.77 cents for the corresponding period in 2022[18]. - Profit for the period was HK$5.7 million, a significant decline of 91.4% compared to HK$66.1 million in the same period last year[91]. - Total comprehensive income for the period attributable to owners was HK$3.37 million, down from HK$48.87 million in the previous year[93]. Revenue Breakdown - Revenue from packaging printing decreased by approximately 62.8% to approximately HK$42.3 million for the six months ended 31 December 2023, primarily due to customers' concerns over global economic slowdown and inflation[28]. - Revenue from paper gift set printing decreased by approximately 51.2% to approximately HK$95.5 million for the six months ended 31 December 2023, as customers adopted a conservative consumption approach[32]. - Revenue from card printing dropped approximately 78.6% to approximately HK$5.8 million for the six months ended 31 December 2023, due to the absence of special promotion campaigns by overseas customers[33]. - Revenue from smart package printing rose by approximately 35.7% to approximately HK$7.6 million for the six months ended 31 December 2023, attributed to signs of recovery in the retail market in Hong Kong[34]. - Revenue from other printing services decreased by approximately 39.1% to approximately HK$1.5 million for the six months ended 31 December 2023, mainly due to the decline in sales from packaging and paper gift set printings[44]. Profitability Metrics - Gross profit margin declined from approximately 43.0% for the six months ended 31 December 2022 to approximately 30.2% for the six months ended 31 December 2023[14]. - Net profit margin decreased from approximately 19.2% for the six months ended 31 December 2022 to approximately 3.7% for the six months ended 31 December 2023[14]. - Fixed production costs remained constant despite the revenue decline, impacting overall profitability[13]. Cost Management - Administrative expenses decreased from approximately HK$61.3 million for the six months ended 31 December 2022 to approximately HK$43.1 million for the six months ended 31 December 2023, due to stricter cost control measures[52]. - Selling and distribution expenses decreased from approximately HK$4.6 million to approximately HK$3.1 million, primarily due to a drop in sales[58]. - Direct labor costs amounted to approximately HK$15.7 million for the six months ended December 31, 2023, a decrease from approximately HK$37.7 million for the same period in 2022[79]. Cash Flow and Assets - Cash generated from operations for the six months ended December 31, 2023, was HK$26,358,000, down from HK$120,316,000 in the same period of 2022, representing a decrease of about 78.1%[106]. - Cash and bank balances decreased from approximately HK$305.9 million to approximately HK$282.5 million, with net current assets declining from approximately HK$308.8 million to approximately HK$298.2 million[70][72]. - The current ratio improved from approximately 4.1 times to approximately 5.4 times as of December 31, 2023[70]. - As of December 31, 2023, total current assets were HK$366.0 million, down from HK$407.8 million as of June 30, 2023[98]. Dividends and Shareholder Information - The Directors recommended an interim dividend of HK1 cent per share, down from HK2.2 cents in 2022[80]. - The company declared a final dividend of HK$20,640,000 for 2023, down from HK$32,640,000 for 2022, reflecting a reduction of approximately 36.5%[103]. - As of December 31, 2023, Chan Kenneth Chi Kin holds a 75% interest in the Company with 360,000,000 shares[195]. Market Conditions - The decline in revenue was primarily due to reduced contributions from packaging and paper gift set printing services, influenced by customers' concerns over global economic slowdown and inflation[17]. - The printing industry in Hong Kong continues to face challenges due to the uncertain economic climate, including geopolitical tensions and inflationary pressures[8]. - The Group is actively seeking further business development and advanced printing technology breakthroughs to maintain competitiveness in the printing industry[40].
新兴印刷(01975) - 2024 - 中期业绩