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

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: [email protected]

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 equivalents	17,349,390		17,564,301		2,249,440
Restricted cash	6,347,680		7,852,453		1,005,655
Accounts receivable, net	31,670,733		47,182,229		6,042,574
Prepayments and other current assets, net	10,302,355		13,698,032		1,754,291
Investment in life insurance policy, net	1,564,333		1,565,203		200,454
Due from a related party	2,086,415		2,416,977		309,540
Inventories, net	8,293,287		10,464,922		1,340,231
Prepaid income tax	8,003		8,003		1,025
Total current assets	77,622,196		100,752,120		12,903,210
NON-CURRENT ASSETS
Plant and equipment, net	15,817,168		18,934,526		2,424,923
Intangible assets, net	869,832		651,620		83,452
Other non-current assets	1,985,940		—		—
Prepayment for acquisition of plant and equipment	1,357,434		290,668		37,226
Right-of-use assets, net	5,022,022		4,615,352		591,083
Deferred tax assets, net	2,640,387		2,417,601		309,620
Total non-current assets	27,692,783		26,909,767		3,446,304
Total assets	105,314,979		127,661,887		16,349,514
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts and bills payable	47,485,156		67,107,440		8,594,373
Accruals and other payables	7,203,230		13,863,430		1,775,474
Banks and other borrowings	9,559,450		12,095,674		1,549,079
Due to related parties	2,032,193		1,494,193		191,360
Operating lease liabilities	3,928,046		3,492,618		447,296
Finance lease liabilities	145,240		9,509		1,218
Tax payable	10,095		—		—
Total current liabilities	70,363,410		98,062,864		12,558,800
NON-CURRENT LIABILITIES
Banks and other borrowings	10,514,517		4,841,582		620,056
Operating lease liabilities	1,093,976		1,122,734		143,787
Total non-current liabilities	11,608,493		5,964,316		763,843
Total liabilities	81,971,903		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, 2024	8,775		8,775		1,125
Additional paid-in capital	15,491,225		15,491,225		1,983,281
Accumulated other comprehensive income	4,465,962		3,929,082		503,856
Retained earnings	3,377,114		4,205,625		538,609
Total shareholders' equity	23,343,076		23,634,707		3,026,871
Total liabilities and shareholders' equity	105,314,979		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$
REVENUE	50,800,321			81,934,259			10,493,226
COST OF REVENUE	(40,455,750	)		(64,895,629	)		(8,311,109	)
Gross profit	10,344,571			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 income	66,229			66,785			8,553
Interest expense	(693,483	)		(682,011	)		(87,344	)
Other income	368,773			291,314			37,308
Other gain, net	252,386			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 diluted	18,000,000			18,000,000			18,000,000
(LOSS) EARNINGS PER SHARE:
BASIC AND DILUTED	(0.21	)		0.05			0.01