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SAMFINE CREATION HOLDINGS GROUP LIMITED Announces First Half 2024 Unaudited Financial Results

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Samfine Creation Holdings Group (SFHG), a Hong Kong-based printing service provider, reported strong financial growth for H1 2024. Revenue increased by 61.3% to HK$81.9 million (US$10.5 million), up from HK$50.8 million in H1 2023. The company turned profitable with a net income of HK$0.8 million, compared to a net loss of HK$3.8 million in the same period last year.

The revenue growth was primarily driven by increased demand for book products and novelty and packaging products. General and administrative expenses rose 9.2% to HK$11.1 million, while selling and marketing expenses increased 37.5% to HK$5.5 million due to higher transportation costs.

Samfine Creation Holdings Group (SFHG), un fornitore di servizi di stampa con sede a Hong Kong, ha riportato una forte crescita finanziaria per il primo semestre del 2024. I ricavi sono aumentati del 61,3%, raggiungendo HK$81,9 milioni (US$10,5 milioni), rispetto ai HK$50,8 milioni nel primo semestre del 2023. L'azienda è tornata in attivo con un reddito netto di HK$0,8 milioni, rispetto a una perdita netta di HK$3,8 milioni nello stesso periodo dell'anno scorso.

La crescita dei ricavi è stata principalmente guidata dall'aumento della domanda per prodotti editoriali e prodotti di novità e imballaggio. Le spese generali e amministrative sono aumentate del 9,2%, raggiungendo HK$11,1 milioni, mentre le spese di vendita e marketing sono aumentate del 37,5%, raggiungendo HK$5,5 milioni, a causa dei costi di trasporto più elevati.

Samfine Creation Holdings Group (SFHG), un proveedor de servicios de impresión con sede en Hong Kong, reportó un fuerte crecimiento financiero para el primer semestre de 2024. Los ingresos aumentaron un 61,3% hasta HK$81,9 millones (US$10,5 millones), frente a HK$50,8 millones en el primer semestre de 2023. La empresa se volvió rentable con un ingreso neto de HK$0,8 millones, en comparación con una pérdida neta de HK$3,8 millones en el mismo período del año pasado.

El crecimiento de los ingresos fue impulsado principalmente por un aumento en la demanda de productos de libros y productos novedosos y de embalaje. Los gastos generales y administrativos aumentaron un 9,2% hasta HK$11,1 millones, mientras que los gastos de venta y marketing aumentaron un 37,5% hasta HK$5,5 millones debido a los mayores costos de transporte.

Samfine Creation Holdings Group (SFHG)는 홍콩에 본사를 둔 인쇄 서비스 제공업체로, 2024년 상반기 강력한 재무 성장을 보고했습니다. 수익은 61.3% 증가하여 HK$81.9백만(미화 10.5백만 달러)으로 2023년 상반기 HK$50.8백만에서 증가했습니다. 회사는 순이익 HK$0.8백만을 기록하며 흑자로 전환했으며, 지난해 같은 기간에는 순손실 HK$3.8백만을 기록했습니다.

수익 성장의 주된 원인은 도서 제품과 신제품 및 포장 제품에 대한 수요 증가 때문이었습니다. 일반 및 관리비는 9.2% 증가하여 HK$11.1백만에 이르렀고, 판매 및 마케팅 비용은 운송 비용 증가로 인해 37.5% 증가하여 HK$5.5백만에 달했습니다.

Samfine Creation Holdings Group (SFHG), un fournisseur de services d'impression basé à Hong Kong, a rapporté une forte croissance financière pour le premier semestre 2024. Le chiffre d'affaires a augmenté de 61,3% pour atteindre HK$81,9 millions (10,5 millions de dollars américains), contre HK$50,8 millions au premier semestre 2023. L'entreprise a réalisé un bénéfice net de HK$0,8 million, comparé à une perte nette de HK$3,8 millions au même période l'année dernière.

La croissance des revenus a été principalement soutenue par une demande accrue pour les produits livres et les produits novateurs et d'emballage. Les frais généraux et administratifs ont augmenté de 9,2% pour atteindre HK$11,1 millions, tandis que les frais de vente et de marketing ont augmenté de 37,5% pour atteindre HK$5,5 millions en raison de l'augmentation des coûts de transport.

Samfine Creation Holdings Group (SFHG), ein in Hongkong ansässiger Anbieter von Druckdienstleistungen, hat für das erste Halbjahr 2024 ein starkes finanzielles Wachstum gemeldet. Der Umsatz stieg um 61,3% auf HK$81,9 Millionen (US$10,5 Millionen), im Vergleich zu HK$50,8 Millionen im ersten Halbjahr 2023. Das Unternehmen wurde profitabel mit einem Nettogewinn von HK$0,8 Millionen, verglichen mit einem Nettoverlust von HK$3,8 Millionen im gleichen Zeitraum des Vorjahres.

Das Umsatzwachstum wurde hauptsächlich durch die gestiegene Nachfrage nach Buchprodukten sowie Neuheiten und Verpackungsprodukten angetrieben. Die allgemeinen und Verwaltungskosten stiegen um 9,2% auf HK$11,1 Millionen, während die Verkaufs- und Marketingausgaben aufgrund höherer Transportkosten um 37,5% auf HK$5,5 Millionen zunahmen.

Positive
  • Revenue grew significantly by 61.3% to HK$81.9 million
  • Turned profitable with HK$0.8 million net income vs HK$3.8 million loss in H1 2023
  • Strong demand growth in book products and novelty packaging segments
Negative
  • General and administrative expenses increased 9.2% to HK$11.1 million
  • Selling and marketing expenses rose 37.5% due to higher transportation costs

Insights

The financial turnaround at Samfine Creation Holdings is noteworthy, with revenue surging 61.3% to HK$81.9 million. More importantly, the company has shifted from a HK$3.8 million loss to a modest profit of HK$828,511, demonstrating improved operational efficiency despite rising costs.

The revenue growth stems from increased demand in their core book products and packaging segments. However, the thin profit margins (approximately 1% net margin) indicate significant operational challenges, particularly with rising costs. The 37.5% increase in selling and marketing expenses, driven by higher transportation costs and the 9.2% rise in administrative expenses are eating into potential profits.

For a company with a market cap of $14.16 million, the current revenue run rate suggests a price-to-sales ratio of about 0.67x, which is relatively low for the printing services sector. This could indicate either market skepticism about growth sustainability or concerns about the thin margins. The company needs to focus on cost management and operational efficiency to improve profitability and justify a higher valuation.

HONG KONG, Dec. 20, 2024 (GLOBE NEWSWIRE) -- SAMFINE CREATION HOLDINGS GROUP LIMITED (Nasdaq: SFHG) (the “Company” or “Samfine”), a printing service provider headquartered in Hong Kong, today announced its unaudited financial results for the six months ended June 30, 2024.

Overview:

  • Revenue was HK$81.9 million (US$10.5 million) for the six months ended June 30, 2024, representing an increase of 61.3% from HK$50.8 million for the same period in 2023.
  • Net income was HK$0.8 million (US$106,105) for the six months ended June 30, 2024, as compared with a net loss of HK$3.8 million for the same period in 2023.

Six Month Financial Results Ended June 30, 2024

Revenue. Revenue increased by 61.3% to HK$81,934,259 (US$10,493,226) for the six months ended June 30, 2024 from HK$50,800,321 for the six months ended June 30, 2023. The overall increase in revenue was mainly driven by the increase in demand of book products and novelty and packaging products from customers.

General and administrative expenses. General and administrative expenses increased by 9.2% to HK$11,081,674 (US$1,419,217) for the six months ended June 30, 2024 from HK$10,152,410 for the six months ended June 30, 2023, principally due to increase in legal and professional fee.

Selling and marketing expenses. Selling and marketing expenses increased by 37.5% to HK$5,474,255 (US$701,082) for the six months ended June 30, 2024 from HK$3,982,211 for the six months ended June 30, 2023. The overall increase in selling and marketing expenses was mainly driven by the increase in transportation costs.

Net income. Net income increased by 121.8% to a net income of HK$828,511 (US$106,105) for the six months ended June 30, 2024 from a net loss of HK$3,797,489 for the six months ended June 30, 2023. The increase in net income was mainly due to the increase in assessable profit resulting from the increase in revenue.

About SAMFINE CREATION HOLDINGS GROUP LIMITED

SAMFINE CREATION HOLDINGS GROUP LIMITED is an established one-stop printing service provider which principally provides printing services in Hong Kong and the PRC. With over 20 years of experience in the printing industry, its operating subsidiaries offer a wide range of printed products such as book products and novelty and packaging products. Its operating subsidiaries’ customers principally comprise of book traders located in Hong Kong whose clients are located around the world, mainly in the U.S. and Europe.

Exchange Rate Information

The Company is a holding company with operations conducted in Hong Kong and the PRC through its operating subsidiaries in Hong Kong and the PRC, Samfine HK and Samfine SZ, respectively. SFHG’s reporting currency is HKD. This prospectus contains translations of HKD into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from HKD to U.S. dollars and from U.S. dollars to HKD in this prospectus were calculated at the noon buying rate of US$1 = HK$7.8083 on June 28, 2024, as published in H.10 statistical release of the United States Federal Reserve Board. We make no representation that the HKD or U.S. dollar amounts referred to in this prospectus could have been or could be converted into U.S. dollars or HKD, as the case may be, at any particular rate or at all.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. The Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to read the risk factors contained in the Company’s final prospectus and other reports it files with the SEC before making any investment decisions regarding the Company’s securities. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.

Rounding Amounts and Percentages

Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding.

For investor and media inquiries, please contact:

SAMFINE CREATION HOLDINGS GROUP LIMITED

Investor Relations

Email: 888@1398.cn

Telephone: (852) 3589 1500


SAMFINE CREATION HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF DECEMBER 31, 2023 AND JUNE 30, 2024
      
 As of
December 31,
2023
 As of
June 30,
2024
 As of
June 30,
2024
 HK$ HK$ US$
ASSETS (Audited) (Unaudited) (Unaudited)
CURRENT ASSETS     
Cash and cash equivalents17,349,390 17,564,301 2,249,440
Restricted cash6,347,680 7,852,453 1,005,655
Accounts receivable, net31,670,733 47,182,229 6,042,574
Prepayments and other current assets, net10,302,355 13,698,032 1,754,291
Investment in life insurance policy, net1,564,333 1,565,203 200,454
Due from a related party2,086,415 2,416,977 309,540
Inventories, net8,293,287 10,464,922 1,340,231
Prepaid income tax8,003 8,003 1,025
Total current assets77,622,196 100,752,120 12,903,210
      
NON-CURRENT ASSETS     
Plant and equipment, net15,817,168 18,934,526 2,424,923
Intangible assets, net869,832 651,620 83,452
Other non-current assets1,985,940  
Prepayment for acquisition of plant and equipment1,357,434 290,668 37,226
Right-of-use assets, net5,022,022 4,615,352 591,083
Deferred tax assets, net2,640,387 2,417,601 309,620
Total non-current assets27,692,783 26,909,767 3,446,304
Total assets105,314,979 127,661,887 16,349,514
      
LIABILITIES AND SHAREHOLDERS’ EQUITY     
CURRENT LIABILITIES     
Accounts and bills payable47,485,156 67,107,440 8,594,373
Accruals and other payables7,203,230 13,863,430 1,775,474
Banks and other borrowings9,559,450 12,095,674 1,549,079
Due to related parties2,032,193 1,494,193 191,360
Operating lease liabilities3,928,046 3,492,618 447,296
Finance lease liabilities145,240 9,509 1,218
Tax payable10,095  
Total current liabilities70,363,410 98,062,864 12,558,800
      
NON-CURRENT LIABILITIES     
Banks and other borrowings10,514,517 4,841,582 620,056
Operating lease liabilities1,093,976 1,122,734 143,787
Total non-current liabilities11,608,493 5,964,316 763,843
Total liabilities81,971,903 104,027,180 13,322,643
      
COMMITMENTS AND CONTINGENCIES     
      
SHAREHOLDERS’ EQUITY     
Ordinary shares: US$0.0000625 par value, 800,000,000 shares authorized, 18,000,000 shares issued and outstanding as of December 31, 2023 and June 30, 20248,775 8,775 1,125
Additional paid-in capital15,491,225 15,491,225 1,983,281
Accumulated other comprehensive income4,465,962 3,929,082 503,856
Retained earnings3,377,114 4,205,625 538,609
Total shareholders’ equity23,343,076 23,634,707 3,026,871
Total liabilities and shareholders’ equity105,314,979 127,661,887 16,349,514
 


SAMFINE CREATION HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
AND OTHER COMPREHENSIVE INCOME (LOSS)

FOR THE SIX MONTHS ENDED JUNE 30, 2023 AND 2024
   
 Six months ended June 30,
 2023 2024 2024
 HK$ HK$ US$
REVENUE50,800,321  81,934,259  10,493,226 
         
COST OF REVENUE(40,455,750) (64,895,629) (8,311,109)
Gross profit10,344,571  17,038,630  2,182,117 
         
OPERATING EXPENSES        
Selling and marketing(3,982,211) (5,474,255) (701,082)
General and administrative(10,152,410) (11,081,674) (1,419,217)
Total expenses(14,134,621) (16,555,929) (2,120,299)
(LOSS) INCOME FROM OPERATION(3,790,050) 482,701  61,818 
         
OTHER EXPENSES        
Interest income66,229  66,785  8,553 
Interest expense(693,483) (682,011) (87,344)
Other income368,773  291,314  37,308 
Other gain, net252,386  892,516  114,303 
Total other (expenses) income, net(6,095) 568,604  72,820 
(LOSS) INCOME BEFORE INCOME TAX EXPENSE(3,796,145) 1,051,305  134,638 
INCOME TAX EXPENSE(1,344) (222,794) (28,533)
NET (LOSS) INCOME(3,797,489) 828,511  106,105 
FOREIGN CURRENCY TRANSLATION ADJUSTMENT(777,889) (536,880) (68,758)
TOTAL COMPREHENSIVE (LOSS) INCOME(4,575,378) 291,631  37,347 
Weighted average number of ordinary shares:        
Basic and diluted18,000,000  18,000,000  18,000,000 
(LOSS) EARNINGS PER SHARE:        
BASIC AND DILUTED(0.21) 0.05  0.01 
 

FAQ

What was SFHG's revenue growth in H1 2024?

SFHG's revenue grew by 61.3% to HK$81.9 million (US$10.5 million) in H1 2024, compared to HK$50.8 million in H1 2023.

How much profit did SFHG report in H1 2024?

SFHG reported a net income of HK$0.8 million (US$106,105) in H1 2024, compared to a net loss of HK$3.8 million in H1 2023.

What drove SFHG's revenue increase in H1 2024?

The revenue increase was mainly driven by higher demand for book products and novelty and packaging products from customers.

How much did SFHG's marketing expenses increase in H1 2024?

SFHG's selling and marketing expenses increased by 37.5% to HK$5.47 million, primarily due to higher transportation costs.

What caused the increase in SFHG's administrative expenses?

SFHG's general and administrative expenses increased by 9.2% to HK$11.1 million due to higher legal and professional fees.

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