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[13]. - 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[14]. - 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[15]. - Basic earnings per share was HK1.18 cents, compared to HK13.77 cents for the corresponding period in 2022[16]. - Profit before tax decreased significantly to HK$7.1 million, compared to HK$84.7 million in the previous year, reflecting a decline of 91.6%[91]. - Profit for the period decreased to HK$5,660,000 for the six months ended December 31, 2023, compared to HK$66,074,000 for the same period in 2022, representing a decline of approximately 91.4%[94]. - Total comprehensive income attributable to owners of the company for the period was HK$3,366,000, down from HK$48,868,000 in the previous year, a decrease of about 93.1%[94]. Revenue Breakdown - Revenue contribution from packaging printing services was 27.7% for the six months ended 31 December 2023, down from 33% in the same period last year[22][24]. - Revenue contribution from paper gift set printing services was 62.5% for the six months ended 31 December 2023, down from 56.8% in the same period last year[22][24]. - Revenue from packaging printing decreased by approximately 62.8% to approximately HK$42.3 million for the six months ended 31 December 2023 compared to the same period in 2022[25]. - 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 compared to the same period in 2022[28]. - Revenue from card printing dropped approximately 78.6% to approximately HK$5.8 million for the six months ended 31 December 2023 compared to the same period in 2022[29]. - Revenue from smart package printing rose by approximately 35.7% to approximately HK$7.6 million for the six months ended 31 December 2023 compared to the same period in 2022[30]. - Revenue from other printing decreased by approximately 39.1% to approximately HK$1.5 million for the six months ended 31 December 2023 compared to the same period in 2022[35]. - Overall revenue decreased by approximately 55.6% to approximately HK$152.7 million for the six months ended 31 December 2023 compared to approximately HK$344.3 million for the same period in 2022[41]. Cost and Expenses - 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[15]. - 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[44]. - Selling and distribution expenses decreased from approximately HK$4.6 million to approximately HK$3.1 million for the same periods, mainly due to a drop in sales[48]. - Employee benefit expenses (excluding directors' remuneration) decreased to HK$36,481,000, down 45.8% from HK$67,113,000 in 2022[135]. Market Conditions - The printing industry in Hong Kong continues to face challenges due to the global economic slowdown and high inflation[8]. - The Group's business operations are affected by geopolitical tensions and uncertainties stemming from the Russo-Ukrainian War[8]. - Customers have adopted a conservative consumption approach, leading to a reduction in spending on printing and promotional products[13]. - The interim period of 2023/2024 is expected to be challenging due to geopolitical tensions, high inflation, and uncertain material supplies[36]. Cash Flow and Assets - Cash and bank balances decreased from approximately HK$305.9 million to approximately HK$282.5 million, with net current assets also declining from approximately HK$308.8 million to approximately HK$298.2 million[60]. - The current ratio improved from approximately 4.1 times to approximately 5.4 times as of 31 December 2023[60]. - Cash generated from operations decreased significantly to HK$26,358,000, compared to HK$120,316,000 in the prior year[102]. - Net cash flows from operating activities were negative at HK$13,473,000, down from positive cash flows of HK$99,514,000 in the previous year[102]. - Cash and cash equivalents at the end of the period stood at HK$282,467,000, an increase from HK$263,907,000 at the end of the previous year[103]. - The company reported a decrease in inventories by HK$3,388,000, compared to a decrease of HK$14,436,000 in the previous year[102]. Dividends - An interim dividend of HK1 cent per share has been proposed, down from HK2.2 cents in the previous year[78]. - The final dividend declared for 2023 was HK$20,640,000, reflecting a significant reduction compared to the previous year's dividend[99]. - Dividends paid decreased to HK$20,640,000 from HK$32,640,000 in the prior year, reflecting a reduction in cash outflow[103]. Shareholding and Management - As of December 31, 2023, Chan Peter Tit Sang holds 360,000,000 shares, representing 75% of the total issued share capital of the Company[190]. - Chan Kenneth Chi Kin also holds 360,000,000 shares, equivalent to 75% of the total issued share capital[198]. - The Group's key management personnel compensation for the six months ended December 31, 2023, totaled HK$15,429,000, a decrease of 51.4% from HK$31,793,000 in the previous year[185].
新兴印刷(01975) - 2024 - 中期财报