Financial Performance - Revenue for the six months ended December 31, 2023, was HKD 28,377,000, an increase of 7.1% compared to HKD 26,487,000 for the same period in 2022[3] - Gross profit for the same period was HKD 8,388,000, representing a gross margin of 29.6%, up from HKD 5,520,000 in 2022[3] - Loss before tax decreased to HKD 3,392,000 from HKD 11,395,000 in the previous year, indicating a significant improvement in financial performance[3] - The net loss attributable to equity holders per share improved to HKD 0.0184 from HKD 0.0598 year-on-year[3] - The group reported a net loss before tax of HKD 3,392,000 for the six months ended December 31, 2023, compared to a net loss of HKD 11,395,000 for the same period in 2022[25] - The total loss and comprehensive expenses for the period were approximately HKD 3,400,000, significantly reduced from HKD 11,000,000 in the previous period[54] - The group recorded a total loss and comprehensive expenses of approximately HKD 3,400,000 for the period ending December 31, 2023, compared to HKD 11,000,000 for the same period in 2022, primarily due to increased revenue from the sale and distribution of food, daily necessities, and utility products[63] Revenue Breakdown - Revenue from the sale of clothing labels and packaging printing products was HKD 20,271,000, down 12.1% from HKD 23,029,000 in the previous year[18] - Revenue from the sale of food, daily necessities, and public utility products increased significantly to HKD 8,106,000, up 134.3% from HKD 3,458,000 in the previous year[18] - Revenue from the manufacturing and sales of clothing labels and packaging printing products decreased by approximately 12% to about HKD 20,300,000 due to global economic uncertainties[54] - Revenue from the sales and distribution of food, daily necessities, and public products increased by approximately 134.4% to about HKD 8,100,000, attributed to customer accumulation since mid-2021[54] - Hong Kong contributed HKD 11,706,000 to the total revenue, representing a significant increase of 49.5% from HKD 7,826,000 in the previous year[28] Assets and Liabilities - Total assets as of December 31, 2023, were HKD 48,576,000, down from HKD 53,547,000 as of June 30, 2023[4] - Total assets as of December 31, 2023, were HKD 54,449,000, a decrease from HKD 60,797,000 as of June 30, 2023[25] - Total liabilities as of December 31, 2023, were HKD 16,083,000, down from HKD 19,044,000 as of June 30, 2023[25] - Trade receivables amounted to HKD 5,427,000, with a provision for losses of HKD 1,460,000, leading to a net trade receivable of HKD 3,967,000[42] - Trade receivables as of December 31, 2023, totaled HKD 3,967,000, a decrease from HKD 4,239,000 as of June 30, 2023[44] - Trade payables as of December 31, 2023, amounted to HKD 2,733,000, down from HKD 2,911,000 as of June 30, 2023[49] Cash Flow and Liquidity - Cash and cash equivalents decreased to HKD 37,609,000 from HKD 43,152,000 over the same period[4] - As of December 31, 2023, the total cash and cash equivalents amounted to approximately HKD 37,600,000, a decrease of about HKD 5,600,000 from June 30, 2023, mainly due to reduced net cash inflow from operating activities[64] - The current ratio as of December 31, 2023, was 3.51 times, up from 3.35 times on June 30, 2023, while the quick ratio was 3.23 times, compared to 3.15 times on June 30, 2023[64] - The board of directors has maintained a prudent financial management policy, ensuring a stable liquidity position throughout the period[65] Operational Highlights - The company is primarily engaged in the manufacturing and sales of garment labels and packaging printing products, as well as the sale and distribution of food and daily necessities[5] - The company did not declare an interim dividend for the six months ended December 31, 2023, consistent with the previous year[36] - The company has not issued any share options as of December 31, 2023, and there are no unexercised share options[67] - The group employed 64 full-time management, administrative, and operational staff as of December 31, 2023, down from 68 on June 30, 2023[77] Accounting and Reporting - The company anticipates that the adoption of revised Hong Kong Financial Reporting Standards will not have a significant impact on its financial statements[12] - The group expects to adopt new accounting guidelines related to the Mandatory Provident Fund contributions in the annual financial statements for the year ending June 30, 2024[15] - The group has begun implementing changes to accounting policies in response to new guidelines, including additional data collection and impact assessment[15] - The interim financial report for the period of 2023 is unaudited but has been reviewed by Deloitte (Hong Kong) according to the Hong Kong Institute of Certified Public Accountants' standards[84] - The interim results announcement will be published on the Hong Kong Stock Exchange website and the company's website[85] - The interim report will be sent to shareholders and will be timely published on the aforementioned websites[85] Other Information - The company did not receive any government subsidies under the Employment Support Scheme in the current period, compared to HKD 593,000 received in the previous year[30] - The company’s management conducted an impairment review, concluding that the recoverable amount of assets exceeded their carrying value, thus no impairment loss was recognized[39] - There were no significant contingent liabilities known to the group as of December 31, 2023[72] - The company does not foresee any significant foreign exchange risk due to its transactions primarily being conducted in USD and HKD, with the exchange rate expected to remain stable[71]
HSSP INTL(03626) - 2024 - 中期业绩