Samfine Creation's H1 net loss rises to HK$14.8M
Other gains of HK$3.2 million shifted to losses of HK$2.3 million, which SFHG attributed mainly to foreign-exchange losses and equipment write-offs.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Samfine Creation Holdings Group Limited (SFHG) reported revenue of HK$77.2 million for the six months ended June 30, 2026, down 6.0% year over year, and gross profit of HK$14.9 million, down 5.6%. Gross margin was 19.3%, compared with 19.2% a year earlier. Net loss rose 75.6% to HK$14.8 million. Other gains of HK$3.2 million in 2025 shifted to losses of HK$2.3 million in 2026; SFHG attributed the change mainly to RMB-related foreign-exchange losses and write-offs and disposals of specialized equipment. General and administrative expenses declined 9.0% to HK$18.3 million, which SFHG attributed mainly to lower office expenses and professional fees.
Net cash used in operating activities was HK$12.5 million for the six months ended June 30, 2026, versus HK$22.8 million in the prior-year period. As of June 30, 2026, cash and cash equivalents were HK$28.9 million, current borrowings were HK$24.1 million, and working capital was HK$6.7 million. Management concluded it had sufficient liquidity to meet working capital needs and financial obligations for at least twelve months from issuance, citing expected short-term facility renewals, cost measures, and a controlling shareholder’s support undertaking.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointOperating cash used fell to HK$12.5 million from HK$22.8 million.
Negative
- Major pointNet loss increased 75.6% to HK$14.8 million.
- Moderate pointRevenue declined 6.0% to HK$77.2 million.
- Moderate pointGross profit decreased 5.6% to HK$14.9 million.
Filing Explained
The September 29, 2026 report says Samfine granted 160,000 unrestricted Class A stock awards on
Key Figures
Key Terms
restricted cash financial
expected credit losses financial
contract liability financial
going concern basis financial
operating lease right-of-use assets financial
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did SFHG report for the first half of 2026?
Why did SFHG’s net loss increase in the first half of 2026?
What were SFHG’s main product categories by revenue in the first half of 2026?
How much of SFHG’s banking facilities remained available at June 30, 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16
OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of September
Commission File Number
(Registrant’s Name)
Flat B, 8/F, Block 4
Kwun Tong Industrial Centre
436-446 Kwun Tong Road
Kwun Tong, Kowloon
Hong Kong
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Financial Statements and Exhibits
Set forth in this report are the registrant’s Unaudited Interim Condensed Consolidated Financial Statements and the related notes thereto, in each case as of and for the six months ended June 30, 2026. The earning release attached as Exhibit 99.1 includes additional information regarding the foregoing and is incorporated by reference.
EXHIBIT INDEX
| Exhibit No. | Description | |
| 99.1 | Earning Release, dated as of September 29, 2026. | |
| 101.INS | Inline XBRL Instance Document - this instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | |
| 104 | Cover Page Interactive Data File (embedded within the Inline IXBRL document) |
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SAMFINE CREATION HOLDINGS GROUP LIMITED | ||
| By: | /s/ Wing Wah Cheng, Wayne | |
| Name: | Wing Wah Cheng, Wayne | |
| Title: | Chairman of the Board, Executive Director and Chief Executive Officer | |
Date: September 29, 2026
2
SAMFINE CREATION HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES
INDEX TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
INDEX
| Page | ||
| Unaudited Interim Condensed Consolidated Balance Sheets As of December 31, 2025 and June 30, 2026 | F-2 | |
| Unaudited Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Six Months Ended June 30, 2025 and 2026 | F-3 | |
| Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders’ Equity for the Six Months Ended June 30, 2025 and 2026 | F-4 | |
| Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2026 | F-5 | |
| Notes to Unaudited Interim Condensed Consolidated Financial Statements | F-6 |
F-1
SAMFINE CREATION HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2025 AND JUNE 30, 2026
As of December 31, 2025 |
As of June 30, 2026 |
As of June 30, 2026 |
||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS | ||||||||||||
| Cash and cash equivalents | ||||||||||||
| Restricted cash | ||||||||||||
| Accounts receivable, net | ||||||||||||
| - Third parties | ||||||||||||
| - Related party | ||||||||||||
| Prepayments and other current assets, net | ||||||||||||
| Inventories, net | ||||||||||||
| Prepaid income tax | ||||||||||||
| Total current assets | ||||||||||||
| NON-CURRENT ASSETS | ||||||||||||
| Plant and equipment, net | ||||||||||||
| Intangible assets, net | ||||||||||||
| Investment in life insurance contract, net | ||||||||||||
| Prepayments | ||||||||||||
| Prepayment for acquisition of plant and equipment | ||||||||||||
| Operating lease right-of-use assets, net | ||||||||||||
| Deferred tax asset | ||||||||||||
| Total non-current assets | ||||||||||||
| Total assets | ||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| CURRENT LIABILITIES | ||||||||||||
| Accounts and bills payables | ||||||||||||
| Accruals and other payables | ||||||||||||
| Bank and other borrowings | ||||||||||||
| Due to related parties | ||||||||||||
| Operating lease liabilities | ||||||||||||
| Total current liabilities | ||||||||||||
| NON-CURRENT LIABILITIES | ||||||||||||
| Bank and other borrowings | ||||||||||||
| Deferred tax liabilities | ||||||||||||
| Operating lease liabilities | ||||||||||||
| Total non-current liabilities | ||||||||||||
| Total liabilities | ||||||||||||
| COMMITMENTS AND CONTINGENCIES (Note 18) | ||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||
| Class A Ordinary shares: US$ | ||||||||||||
| Class B Ordinary shares: US$ | ||||||||||||
| Additional paid-in capital | ||||||||||||
| Statutory reserve | ||||||||||||
| Accumulated other comprehensive income | ||||||||||||
| Accumulated losses | ( | ) | ( | ) | ( | ) | ||||||
| Total shareholders’ equity | ||||||||||||
| Total liabilities and shareholders’ equity | ||||||||||||
| * |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-2
SAMFINE CREATION HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
| Six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| HK$ | HK$ | US$ | ||||||||||
| REVENUE | ||||||||||||
| COST OF REVENUE | ( | ) | ( | ) | ( | ) | ||||||
| Gross profit | ||||||||||||
| OPERATING EXPENSES | ||||||||||||
| Selling and marketing | ( | ) | ( | ) | ( | ) | ||||||
| General and administrative | ( | ) | ( | ) | ( | ) | ||||||
| Total operating expenses | ( | ) | ( | ) | ( | ) | ||||||
| LOSS FROM OPERATIONS | ( | ) | ( | ) | ( | ) | ||||||
| OTHER INCOME (EXPENSE) | ||||||||||||
| Interest income | ||||||||||||
| Interest expense | ( | ) | ( | ) | ( | ) | ||||||
| Other income | ||||||||||||
| Other gains (losses), net | ( | ) | ( | ) | ||||||||
| Total other income (expense), net | ( | ) | ( | ) | ||||||||
| LOSS BEFORE INCOME TAX EXPENSE | ( | ) | ( | ) | ( | ) | ||||||
| INCOME TAX BENEFITS | ||||||||||||
| NET LOSS | ( | ) | ( | ) | ( | ) | ||||||
| FOREIGN CURRENCY TRANSLATION ADJUSTMENT | ( | ) | ||||||||||
| TOTAL COMPREHENSIVE LOSS | ( | ) | ( | ) | ( | ) | ||||||
| Weighted average number of ordinary shares: | ||||||||||||
| Basic and diluted | ||||||||||||
| LOSS PER SHARE: | ||||||||||||
| BASIC AND DILUTED* | ( | ) | ( | ) | ( | ) | ||||||
| * |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-3
SAMFINE CREATION HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
Ordinary shares |
Class A Ordinary Shares |
Class B Ordinary Shares |
Additional | Accumulated Other |
Retained Earnings |
|||||||||||||||||||||||||||||||||||||||
| No. of Shares* |
Par Value |
No. of Shares* |
Par Value |
No. of Shares* |
Par Value |
Paid-in Capital |
Statutory Reserve |
Comprehensive Income |
(Accumulated Losses) |
Total Equity |
||||||||||||||||||||||||||||||||||
| HK $ | HK $ | HK $ | HK $ | HK $ | HK$ | HK$ | HK$ | |||||||||||||||||||||||||||||||||||||
| BALANCE, January 1, 2025 (Audited) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | — | — | — | — | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
| Re-designation of Ordinary shares into Class A and Class B Ordinary Shares | ( | ) | ( | ) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Foreign currency translation | — | — | — | — | — | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||||||||||
| BALANCE, June 30, 2025 (Unaudited) | — | — | ( | ) | ||||||||||||||||||||||||||||||||||||||||
| BALANCE, January 1, 2026 (Audited) | — | — | ( | ) | ||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | — | — | — | — | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
| Foreign currency translation | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| BALANCE, June 30, 2026 | — | — | ( | ) | ||||||||||||||||||||||||||||||||||||||||
| BALANCE, June 30, 2026 (US$) | ( | ) | ||||||||||||||||||||||||||||||||||||||||||
| * |
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-4
SAMFINE CREATION HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
| Six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| HK$ | HK$ | US$ | ||||||||||
| Cash flows from operating activities | ||||||||||||
| Net loss | ( | ) | ( | ) | ( | ) | ||||||
| Adjustments to reconcile net loss to net cash used in operating activities | ||||||||||||
| Depreciation of plant and equipment | ||||||||||||
| Amortization of intangible assets | ||||||||||||
| Allowance for expected credit losses, net | ||||||||||||
| Loss (gain) on disposal of plant and equipment | ( | ) | ||||||||||
| Deferred income tax | ( | ) | ( | ) | ( | ) | ||||||
| Changes in operating assets and liabilities | ||||||||||||
| Accounts receivable | ( | ) | ( | ) | ( | ) | ||||||
| Prepayments | ||||||||||||
| Inventories | ( | ) | ( | ) | ||||||||
| Accounts and bills payables | ( | ) | ||||||||||
| Accruals and other payables | ( | ) | ||||||||||
| Net cash used in operating activities | ( | ) | ( | ) | ( | ) | ||||||
| Cash flows from investing activities | ||||||||||||
| Purchase of plant and equipment | ( | ) | ( | ) | ( | ) | ||||||
| Prepayment for acquisition of plant and equipment | ( | ) | ( | ) | ( | ) | ||||||
| Proceeds from disposal of plant and equipment | ||||||||||||
| Net cash used in investing activities | ( | ) | ( | ) | ( | ) | ||||||
| Cash flows from financing activities | ||||||||||||
| Proceeds from bank and other borrowings | ||||||||||||
| Repayment for bank and other borrowings | ( | ) | ( | ) | ( | ) | ||||||
| Repayment to a related party | ( | ) | ( | ) | ( | ) | ||||||
| Net cash generated from financing activities | ||||||||||||
| Net decrease in cash and cash equivalents | ( | ) | ( | ) | ( | ) | ||||||
| Cash and cash equivalents at the beginning of the period | ||||||||||||
| Restricted cash at the beginning of the period | ||||||||||||
| Cash and cash equivalents and restricted cash at the beginning of the period | ||||||||||||
| Cash and cash equivalents at the end of the period | ||||||||||||
| Restricted cash at the end of the period | ||||||||||||
| Cash and cash equivalents and restricted cash at the end of the period | ||||||||||||
| Supplementary cash flows information | ||||||||||||
| Interest received | ||||||||||||
| Interest paid | ( | ) | ( | ) | ( | ) | ||||||
| Income tax paid | ( | ) | — | — | ||||||||
The accompanying notes are an integral part of these unaudited interim condensed consolidated financial statements.
F-5
SAMFINE CREATION HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES
NOTES TO THE UNAUDITED INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
1. Organization and Business Background
Samfine Creation Holdings Group Limited (the “Company,” or “SFHG”), through its wholly-owned subsidiaries (collectively, the “Group”), is engaged in commercial printing services in Hong Kong and the People’s Republic of China (the “PRC”).
SFHG is a holding company incorporated on
The unaudited interim condensed consolidated financial statements reflect the activities of each of the following entities:
| Name | Background | % of Ownership | ||
| SFHG or the Company | — Incorporated in the Cayman Islands — Incorporated on January 20, 2022 — Holding company — Investment holding | |||
| New Achiever | — Incorporated in the BVI — Incorporated on January 13, 2022 — Intermediate holding company — Investment holding | |||
| Samfine HK | — Incorporated in Hong Kong — Incorporated on March 12, 1997 — Provision of commercial printing services | |||
| Samfine SZ | — Incorporated in the PRC — Established on February 5, 1993 — Provision of commercial printing services | |||
| Samfine SZ Technology | — Incorporated in the PRC — Incorporated on April 21, 2021 — Printing and trading of personalized printing products |
F-6
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES
Basis of presentation
The accompanying unaudited interim condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission. The results of operations for the six months ended June 30, 2026 are not necessarily indicative of results to be expected for any other interim period or for the full year of 2026. Accordingly, these statements should be read in conjunction with the Company’s audited financial statements and note thereto as of and for the years ended December 31, 2024 and 2025.
Principles of consolidation
The unaudited interim condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All inter-company transactions and balances are eliminated upon consolidation.
Use of estimates and assumptions
The preparation of unaudited interim condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, related disclosures of contingent assets and liabilities as of the date of the unaudited interim condensed consolidated financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Significant accounting estimates include, but not limited to, useful life of plant and equipment, impairment of obsolete inventories, allowance for expected credit losses against financial assets, investment in life insurance contract and allowance for deferred tax assets. Changes in facts and circumstances may result in revised estimates. Actual results could differ from those estimates, and as such, differences may be material to the unaudited interim condensed consolidated financial statements.
Earnings (loss) per share
Basic earnings (loss) per share is computed by dividing net income (loss) attributable to the holders of ordinary shares by the weighted average number of ordinary shares outstanding during period presented. Diluted income (loss) per share is calculated by dividing net income (loss) attributable to the holders of ordinary shares as adjusted for the effect of dilutive ordinary share equivalents, if any, by the weighted average number of ordinary shares and dilutive ordinary share equivalents outstanding during the period. However, ordinary share equivalents are not included in the denominator of the diluted earnings (loss) per share calculation when inclusion of such shares would be anti-dilutive, such as in a period in which a net loss is recorded.
On February 27, 2026, the Company effected a 1-for-5 share consolidation (reverse stock split) of its ordinary shares. Consequently, all share and per-share numbers for all periods presented in the unaudited interim condensed consolidated financial statements and notes thereto have been retroactively adjusted to reflect the share consolidation as if it had occurred at the beginning of the earliest period presented.
Functional currency and foreign currency translation
The Company uses Hong Kong dollars (“HK$”) as its reporting currency. The functional currency of the Company and its subsidiaries incorporated in the Cayman Islands and BVI is United States dollars (“US$”). The functional currency of its Hong Kong subsidiary is HK$, and the functional currency of its PRC subsidiaries is the Renminbi (the “RMB”). The determination of the respective functional currency is based on the criteria of Accounting Standards Codification (“ASC”) 830, Foreign Currency Matters.
Transactions denominated in currencies other than functional currency are translated into functional currency at the exchange rates quoted by authoritative banks prevailing at the dates of the transactions. Exchange gains and losses resulting from those foreign currency transactions denominated in a currency other than the functional currency are recorded as other income (loss), net in the unaudited interim condensed consolidated statements of operations.
F-7
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (cont.)
Functional currency and foreign currency translation (cont.)
The unaudited interim condensed consolidated financial statements of the Company are translated from the functional currency into HK$. Assets and liabilities are translated at the exchange rates at the balance sheet date. Equity accounts other than earnings generated in the current period are translated into HK$ using the appropriate historical rates. Revenue and expenses, gains and losses are translated into HK$ using the periodic average exchange rate for the year. Translation adjustments are reported as foreign currency translation adjustments and are shown as a component of other comprehensive loss in the unaudited interim condensed consolidated statements of comprehensive income (loss).
Convenience translation
Translations of balances in the unaudited interim condensed consolidated balance sheets, unaudited interim condensed consolidated statements of operations and comprehensive income (loss), unaudited interim condensed consolidated statements of changes in shareholders’ equity and unaudited interim condensed consolidated statements of cash flows from HK$ into US$ as of June 30, 2026 are solely for the convenience of the readers and are calculated at the rate of US$
Cash and cash equivalents
Cash primarily consists of bank deposits with original maturities of three months or less, which are unrestricted as to withdrawal and use. The Company maintains its bank accounts in Hong Kong and the PRC.
Restricted cash
Cash and time deposits that are restricted as to withdrawal for use or pledged as security is reported separately as restricted cash. The restricted cash primarily represents deposits pledged to banks to secure the bills repayable which have a maximum length of eight months.
Accounts receivable and allowance for expected credit loss
Accounts receivable represents amounts invoiced and revenue recognized prior to invoicing when the Company has satisfied its performance obligation and has the unconditional right to payment, which are recorded net of allowance for expected credit losses on such receivables. The credit term is negotiable with different customers which is generally within 90 days after delivery of products are completed.
The expected credit losses charged are classified as “General and administrative expenses” in the unaudited interim condensed consolidated statements of operations and comprehensive income (loss). In determining the amount of expected credit losses, the Company considers historical collectability based on past due status, age of the accounts receivable balances, credit quality of the customers based on ongoing credit evaluations, as well as reasonable and supportable forecasts of future losses. Accounts receivable are written off after all collection efforts have ceased.
Prepayments
Prepayments are cash deposited or advanced to suppliers or vendors for the purchase of goods or services. This amount is refundable and bears no interest. Deposits consist of (i) security payments made to utilities companies and are refundable upon termination of services; (ii) security payments made to a lessor for the Company’s office lease agreement. The security deposit will be refunded to the Company upon the termination or expiration of the lease agreement as well as the delivery of the vacant leased properties to the lessor by the Company; and (iii) deposit to suppliers for services provision, which are refundable.
F-8
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (cont.)
Investment in life insurance policy, net
The Company invests in corporate-owned life insurance policy. The Company accounts for the purchase of life insurance policy in accordance with ASC 325-30, Investment in Insurance Contracts, which requires the Company to use either the investment method or the fair value method. The election is made on an instrument-by-instrument basis and is irrevocable. The Company has elected to account for all of its life insurance policy using the investment method.
Under the investment method, the Company recognizes the initial investment at the transaction price plus all initial direct external costs. Continuing costs (payments of policy premiums and direct external costs, if any) necessary to keep the policy in force are capitalized. Gain recognition is deferred until the death of the insured. At that time the Company recognizes in net income (or other applicable performance indicator) the difference between the carrying amount of the investment and the policy proceeds. The Company is required to test the investment for impairment upon the availability of new or updated information that indicates that, upon the death of the insured, the expected proceeds from the insurance policy may not be sufficient for the investor to recover the carrying amount of the investment plus anticipated gross future premiums (undiscounted for the time value of money) and capitalizable external direct costs, if any. Indicators to be considered include, but are not limited to a change in the life expectancy of the insured and a change in the credit standing of the insurer. As a result of performing an impairment test, if the undiscounted expected cash inflows (the expected proceeds from the policy) are less than the carrying amount of the investment plus the undiscounted anticipated gross future premiums and capitalizable external direct costs, an impairment loss is recognized.
Inventories, net
Inventories, which are primarily comprised of raw materials, work-in-progress and finished goods for sale, are stated at the lower of cost or net realizable value, using the weighted average method. As of December 31, 2025 and June 30, 2026, the Company has not recognized any impairment for obsolete inventories.
Plant and equipment, net
Property and equipment are stated at cost less accumulated depreciation and impairment if applicable. Depreciation is computed using the straight-line method after consideration of the estimated useful lives. The Company maintains a salvage value of
| Estimated Useful Life | ||
| Plant machineries | ||
| Motor Vehicles | ||
| Office equipment |
The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the unaudited interim condensed consolidated statements of operations and comprehensive income (loss). Expenditure for maintenance and repairs is charged to earnings as incurred, while additions, renewals and betterment, which are expected to extend the useful life of assets, are capitalized. The Company also re-evaluates the periods of depreciation to determine whether subsequent events and circumstances warrant revised estimates of useful lives.
F-9
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (cont.)
Intangible assets, net
Intangible assets that are acquired are stated at cost less accumulated amortization (where the estimated useful life is finite) and accumulated impairment losses. Amortization is calculated by writing off the cost of intangible assets with finite useful lives using straight-line method over their estimated useful lives and is generally recognized in the unaudited interim condensed consolidated statements of operations and comprehensive income (loss). Amortization methods and useful lives are reviewed at each reporting date and adjusted if appropriate.
| Estimated Useful Life | ||
| Computer software | ||
| Patent |
Impairment for long-lived assets
Long-lived assets such as property and equipment, intangible assets with finite lives and operating lease right-of-use assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be fully recoverable or that the useful life is shorter than the Group had originally estimated. When these events occur, the Group evaluates the impairment for the long-lived assets or asset groups by comparing the carrying value of the assets or asset groups with an estimate of future undiscounted cash flows expected to be generated from the use of the assets or asset groups and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets or asset groups, the Group recognizes an impairment loss based on the excess of the carrying value of the assets or asset groups over the fair value of the assets or asset groups. As of December 31, 2025 and June 30, 2026, no impairment of long-lived assets was recognized.
Contract liabilities
The Group recognizes a contract liability when the customer pays the consideration before the Group recognizes the related revenue or when the Group has an unconditional right to receive the consideration before the Group recognizes the related revenue, and in such case a corresponding receivable will be recognized.
Fair value measurement
The accounting standard regarding fair value of financial instruments and related fair value measurements defines financial instruments and requires disclosure of the fair value of financial instruments held by the Company.
The accounting standards define fair value, establish a three-level valuation hierarchy for disclosures of fair value measurement and enhance disclosure requirements for fair value measures. The three levels are defined as follow:
| ● | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |
| ● | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the assets or liability, either directly or indirectly, for substantially the full term of the financial instruments. | |
| ● | Level 3 inputs to the valuation methodology are unobserved and significant to the fair value. |
Financial instruments included in current assets and current liabilities are reported in the balance sheets at face value or cost because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest.
F-10
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (cont.)
Leases
The Group adopts ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”) for all periods presented, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements.
The Group is a lessee of non-cancellable leases for workshop and staff dormitory. The Group determines if an arrangement is a lease at inception. A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. As a result, both the lease of workshop and staff dormitory are currently classified as operating leases.
Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the implicit rate for the Group’s operating leases is not readily determinable, the Group uses its incremental borrowing rate, based on information available at the lease commencement date, to determine the present value of lease payments. The incremental borrowing rate represents the interest rate that the Group would pay to borrow an amount equivalent to the lease payments on a collateralized basis, over a similar term and in a comparable economic environment.
Lease terms used to calculate the present value of lease payments generally include options to extend, renew, or terminate the lease, as the Group has reasonable certainty at lease inception that these options will be exercised. The Group generally considers the economic life of its operating lease ROU assets to be comparable to the useful life of similar owned assets. The Group has elected the short-term lease exception, therefore operating lease ROU assets and liabilities do not include leases with a lease term of twelve months or less. Its leases generally do not provide a residual guarantee. The operating lease ROU asset also excludes lease incentives. For operating leases, lease expense is recognized on a straight-line basis over the lease term. Interest expense on the lease liability is determined each period during the lease term as the amount that results in a constant periodic interest rate of the bank loans on the remaining balance of the liability.
Bank and other borrowings
Borrowings are initially recognized at fair value, net of upfront fees incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in unaudited interim condensed consolidated statements of operations and comprehensive income (loss) over the period of the borrowings using the effective interest method.
Employee benefit plan
Under Hong Kong Mandatory Provident Fund Schemes Ordinance, an employer shall enroll their regular employees in Mandatory Provident Fund Schemes. Regular employees are those who are at between 18 and 65 years of age and have been employed for consecutive 60 days or more. An employer is required to make regular mandatory contributions at least
Full time employees of the PRC entities participate in a government mandated multi-employer defined contribution plan pursuant to which certain pension benefits, medical care, unemployment insurance and other welfare benefits are provided to employees.
F-11
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (cont.)
Related parties
The Company accounts for related party transactions in accordance with FASB Accounting Standards Codification (ASC) Topic 850 (Related Party Disclosures). A party is considered to be related to the Company if the party directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. A party which can significantly influence the management or operating policies of the transacting parties or if it has an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests is also a related party.
Revenue recognition
The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers, and subsequently issued additional related Accounting Standards Updates (collectively, “ASC 606”). The Company derives revenue principally from the provision of commercial printing services. The Company enters into agreements with customers that create enforceable rights and obligations and for which it is probable that the Company will collect the consideration to which it will be entitled as services are transferred to the customer. The Company recognizes revenue based on the consideration specified in the applicable agreement.
Revenue from contracts with customers is recognized using the following five steps:
| 1. | Identify the contract(s) with a customer; | |
| 2. | Identify the performance obligations in the contract; | |
| 3. | Determine the transaction price; | |
| 4. | Allocate the transaction price to the performance obligations in the contract; and | |
| 5. | Recognize revenue when (or as) the entity satisfies a performance obligation. |
A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct. The transaction price is the amount of consideration a company expects to be entitled from a customer in exchange for providing the goods or services.
The unit of account for revenue recognition is a performance obligation (a good or service). A contract may contain one or more performance obligations. Performance obligations are accounted for separately if they are distinct. A good or service is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and the good or service is distinct in the context of the contract. Otherwise, performance obligations are combined with other promised goods or services until we identify a bundle of goods or services that is distinct. Promises in contracts which do not result in the transfer of a good or service are not performance obligations, as well as those promises that are administrative in nature, or are immaterial in the context of the contract. The Company has addressed whether various goods and services promised to the customer represent distinct performance obligations. The Company applied the guidance of ASC Topic 606-10-25-16 through 18 in order to verify which promises should be assessed for classification as distinct performance obligations.
The transaction price is allocated to each performance obligation in the contract on the basis of the relative stand-alone selling prices of the promised goods or services. The individual standalone selling price of a good or service that has not previously been sold on a stand-alone basis, is determined based on the residual portion of the transaction price after allocating the transaction price to goods and/or services with observable stand-alone selling price.
F-12
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (cont.)
Revenue recognition (cont.)
Transaction price is the amount of consideration in the contract to which the Company expect to be entitled in exchange for transferring the promised goods or services. Consideration payable to a customer is deducted from the transaction price if the Company do not receive a separate identifiable benefit from the customer.
Revenue may be recognized at a point in time or over time following the timing of satisfaction of the performance obligation. If a performance obligation is satisfied over time, revenue is recognized based on the percentage of completion reflecting the progress towards complete satisfaction of that performance obligation. Typically, performance obligation for products where the process is described as below, the performance obligation is satisfied at point in time.
The Company typically receives purchase orders from its customers which will set forth the terms and conditions including the transaction price, products to be delivered, terms of delivery, and terms of payment. The terms serve as the basis of the performance obligations that the Company must fulfil in order to recognize revenue. The key performance obligation is the delivery of the finished product to the customer at customer’s truck at the Company’s inventory warehouse or their specified location at which point title to that asset passes to the customer. The completion of this earning process is evidenced by a written customer acceptance indicating receipt of the product. Typical payment terms set forth in the purchase order ranges from
The transaction price does not include variable consideration related to returns or refunds as the Company’s contracts do not include provisions that allow for sales refunds or returns of products.
Following the adoption of ASC 606, the Company considered the guidance set forth in ASC 340-40, and determined that an asset would be recognized from costs incurred to fulfill a contract under ASC 340-40-25-5 only if those costs meet all of the following criteria:
| ● | The costs relate directly to a contract or an anticipated contract that the entity can specifically identify (for example, costs relating to services to be provided under the renewal of an existing contract or costs of designing an asset to be transferred under a specific contract that has not yet been approved). | |
| ● | The costs generate or enhance resources of the entity that will be used in satisfying (or continuing to satisfy) performance obligations in the future. | |
| ● | The costs are expected to be recovered. |
The Company elected to apply the practical expedient to recognize the incremental costs of obtaining a contract as an expense if the amortization period of the asset would have been one year or less.
Costs that relate directly to a contract include direct material, labor cost, subcontracting fee and allocated overhead including utilities, depreciation, and other overhead costs.
The Company elected to treat shipping and handling costs undertaken by the Company after the customer has obtained control of the related goods as a fulfilment activity and has been presented as transportation costs which is include in selling and marketing expenses.
F-13
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (cont.)
Cost of revenue
Cost of revenue of printing products, which are directly related to revenue generating transactions, primarily consists of direct material cost such as paper cost, labor cost, subcontracting fee and allocated overhead including utilities, depreciation, and other overhead costs.
Selling and marketing expenses
Selling and marketing expenses consist primarily of staff costs, transportation costs, customs expense, commission, rental expense, advertising expense and other expenses related to the Company’s selling and marketing activities. During the six months ended June 30, 2025 and 2026, the Company incurred shipping and handling costs which are classified as transportation costs and customs expense totaling HK$
General and administrative expenses
General and administrative expenses consist primarily of staff costs, including salaries and related social insurance costs for the Company’s operations and support personnel, office rental and property management fees, repair and maintenance, depreciation, professional services fees, bank charge, utilities, entertainment expense, office expense, low value consumables, motor vehicle expense and expenses related to general operations as well as research and development costs in connection with the technology development for the commercial printing services. Research and development expenses are charged to expense as incurred and have no alternative future uses in accordance with ASC 730, “Research and Development”. During the six months ended June 30, 2025 and 2026, the Company incurred research and development cost totaling HK$
Government grants
Government grants are recognized as income in other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated statements of operations upon receipt and when all conditions attached to the grants are fulfilled.
Income taxes
Current income taxes are recorded in accordance with the laws of the relevant tax jurisdictions.
Deferred income taxes are provided using the liability method. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset deferred tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle deferred tax liabilities and assets on a net basis or their deferred tax assets and liabilities will be realized simultaneously.
A valuation allowance is provided to reduce the amount of deferred income tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred income tax assets will not be realized. The effect on deferred income taxes arising from a change in tax rates is recognized in the consolidated statements of comprehensive loss in the period of change.
F-14
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (cont.)
Income taxes (cont.)
The Group applies a “more likely than not” recognition threshold in the evaluation of uncertain tax positions. The Group recognizes the benefit of a tax position in its consolidated financial statements if the tax position is “more likely than not” to prevail based on the facts and technical merits of the position. Tax positions that meet the “more likely than not” recognition threshold are measured at the largest amount of tax benefit that has a greater than fifty percent likelihood of being realized upon settlement. Unrecognized tax benefits may be affected by changes in interpretation of laws, rulings of tax authorities, tax audits, and expiry of statutory limitations. In addition, changes in facts, circumstances and new information may require the Group to adjust the recognition and measurement estimates in relation to individual tax positions. Accordingly, unrecognized tax benefits are periodically reviewed and re-assessed. Adjustments, if required, are recorded in the Group’s consolidated financial statements in the period in which the change that necessities the adjustments occur. The ultimate outcome for a particular tax position may not be determined with certainty prior to the conclusion of a tax audit and, in certain circumstances, a tax appeal or litigation process. The Group records interest and penalties related to unrecognized tax benefits (if any) in interest expenses and general and administrative expenses, respectively. As of June 30, 2026, the Group did not have any significant unrecognized uncertain tax positions.
Commitments and contingencies
In the normal course of business, the Company is subject to contingencies, including legal proceedings and claims arising out of the business that relate to a wide range of matters, such as government investigations and tax matters. The Company recognizes a liability for such contingency if it determines it is probable that a loss has occurred and a reasonable estimate of the loss can be made. The Company may consider many factors in making these assessments including historical and the specific facts and circumstances of each matter. There were no material commitments or contingencies as of December 31, 2025 and June 30, 2026.
Recently issued accounting pronouncements
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which enhances disclosures about significant segment expenses and information used by the chief operating decision maker (CODM). The guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Group is evaluating the impact of adopting this guidance on its consolidated financial statement disclosures.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires disaggregated rate reconciliation disclosure and additional details on income taxes paid. The guidance is effective for public business entities for annual periods beginning after December 15, 2024, with early adoption permitted. The Company has adopted this guidance during the period, and the adoption did not have a material impact on its consolidated financial statements and related disclosures.
In November 2024, FASB issued ASU 2024-03, “Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”. The amendments require disaggregation disclosure for certain expense captions presented on the face of income statement, as well as additional disclosure about selling expenses. The guidance is effective for the years beginning after December 15, 2026 and interim reporting periods during the year ending December, 2027. The Company is evaluating the impact of the adoption of this guidance on its disclosures.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The update introduces practical expedients for estimating allowances for credit losses on trade receivables and contract assets. The guidance is effective for years beginning after December 15, 2025. The Company has adopted this guidance during the period, and the adoption did not have a material impact on its consolidated financial statements and related disclosures.
In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). The guidance modernizes capitalization criteria for internal-use software. The update is effective for years beginning after December 15, 2027. The Company is evaluating the impact of the adoption of this guidance on its disclosures.
All other newly issued accounting pronouncements but not yet effective have been deemed either immaterial or not applicable.
Liquidity and Going Concern Evaluation
For the six months ended June 30, 2026, the Group incurred a net loss of HK$
F-15
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES (cont.)
Liquidity and Going Concern Evaluation (cont.)
In accordance with ASC 205-40, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, management evaluated whether there are conditions or events that raise substantial doubt about the Group's ability to continue as a going concern within one year after the date these unaudited interim condensed consolidated financial statements are issued.
Management actively negotiates with lending financial institutions to renew or extend existing short-term facilities upon maturity. Based on historical credit records and ongoing relationships, management expects these short-term facilities will be successfully renewed. Management continues to implement cost-optimization measures and streamline supply chain processes to enhance operating cash flows. The controlling shareholder of the Company has undertaken to provide continuous financial support as necessary to enable the Group to meet its liabilities as they fall due.
Based on the evaluation of these factors and available financial resources, management concluded that the Group will have sufficient liquidity to meet its working capital requirements and financial obligations as they become due for at least twelve months from the issuance date of these financial statements. Accordingly, the financial statements have been prepared on a going concern basis.
3. SEGMENT INFORMATION
ASC 280, “Segment Reporting”, establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker (the Chief Executive Office, or “CODM”) for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of different products or services. Based on management's assessment, the Company has determined that the production line for commercial printing is situated in the PRC, while the major sales operations are located in Hong Kong. Since the majority (approximately
In accordance with ASU 2023-07, Improvements to Reportable Segment Disclosures, single-segment entities are required to disclose significant segment expenses reviewed by the CODM. For the six months ended June 30, 2025 and 2026, the primary segment performance measure reviewed by the CODM is loss from operations as reported on the unaudited interim condensed consolidated statements of operations. The significant expense categories reviewed by the CODM primarily comprise cost of revenue, selling and marketing expenses, and general and administrative expenses as presented in the unaudited interim condensed consolidated statements of operations.
The following table shows disaggregated revenue by major merchandise categories for the six months ended June 30, 2025 and 2026, respectively:
| Six months ended June 30, | ||||||||||||||||||||||||
| 2025 | 2026 | |||||||||||||||||||||||
| HK$ | US$ | % | HK$ | US$ | % | |||||||||||||||||||
| Book products | % | % | ||||||||||||||||||||||
| Novelty and packaging products | % | % | ||||||||||||||||||||||
| % | % | |||||||||||||||||||||||
The following tables present total revenue disaggregated by geographic market based on the location of customers, and long-lived assets (comprising plant and equipment, net and operating lease right-of-use assets, net) by physical location:
| Six months ended June 30, | ||||||||||||||||||||||||
| 2025 | 2026 | |||||||||||||||||||||||
| HK$ | US$ | % | HK$ | US$ | % | |||||||||||||||||||
| Hong Kong | % | % | ||||||||||||||||||||||
| Mainland China | % | % | ||||||||||||||||||||||
| England | % | % | ||||||||||||||||||||||
| Total Revenue | % | % | ||||||||||||||||||||||
| As of December 31, 2025 | As of June 30, 2026 | |||||||||||||||||||||||
| HK$ | US$ | % | HK$ | US$ | % | |||||||||||||||||||
| Hong Kong | % | % | ||||||||||||||||||||||
| Mainland China | % | % | ||||||||||||||||||||||
| Total Long-lived assets | % | % | ||||||||||||||||||||||
F-16
4. RESTRICTED CASH
Restricted cash was HK$
5. ACCOUNTS RECEIVABLE, NET
Accounts receivable, net is comprised of the following:
| As of December 31, 2025 | As of June 30, 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Accounts receivable | ||||||||||||
| - Third parties | ||||||||||||
| - Related party | ||||||||||||
| Allowance for expected credit losses, net | ( | ) | ( | ) | ( | ) | ||||||
| Total | ||||||||||||
Allowance for expected credit losses, net consists of the following:
As of December 31, 2025 | As of June 30, 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Beginning balance | ||||||||||||
| Addition | ||||||||||||
| Reversal | ( | ) | ( | ) | ( | ) | ||||||
| Written-off | — | — | — | |||||||||
| Exchange alignment | ||||||||||||
| Ending balance | ||||||||||||
6. PREPAYMENTS AND OTHER CURRENT ASSETS, NET
Prepayments and other current assets, net consist of the following:
As of December 31, 2025 | As of June 30, 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Deposits | ||||||||||||
| Prepayments to suppliers | ||||||||||||
| Prepaid expenses (Note 1) | ||||||||||||
| Input VAT | ||||||||||||
| Others | ||||||||||||
| Total | ||||||||||||
| Less: non-current portion | ( | ) | ( | ) | ( | ) | ||||||
| Current portion | ||||||||||||
| Note 1: | The prepaid expenses mainly represented the amount prepaid to service providers for advertising, marketing and consultancy services of the Company for a period ranging from one to three years. The amounts paid were non-refundable and non-cancellable and will be charged to the unaudited interim condensed consolidated statements of operations and comprehensive income (loss) over the service period in which the services are expected to be evenly received during the service periods. |
F-17
7. INVESTMENT IN LIFE INSURANCE CONTRACT, NET
Investment in life insurance contract, net consists of the following:
| As of December 31, 2025 | As of June 30, 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Investment in life insurance contract | ||||||||||||
| Allowance for expected credit losses | — | — | — | |||||||||
| Investment in life insurance contract, net | ||||||||||||
The Company entered into a life insurance contract with an insurance company to insure Mr. Wing Wah Cheng, Wayne (“Mr. Cheng”), the Chief Executive Director of the Company. The Company is the owner and beneficiary of the life insurance contract. The Company could terminate the policy at any time and receive cash back on the cash value of the policy at the date of withdrawal, which was determined by the premium payment plus accumulated interest earned and minus the accumulated insurance policy charges and surrender charges. As of June 30, 2026, the directors of the Company considered the Group will not terminate the life insurance contract within the next twelve months from the end of the reporting period and the balance is therefore classified as non-current assets.
8. INVENTORIES, NET
Inventories, net is comprised of the following:
As of December 31, 2025 | As of June 30, 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Raw materials | ||||||||||||
| Work-in-progress | ||||||||||||
| Finished goods | ||||||||||||
| Inventories, net | ||||||||||||
9. PLANT AND EQUIPMENT, NET
Plant and equipment, net consists of the following:
| As of December 31, 2025 | As of June 30, 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Plant and machinery | ||||||||||||
| Motor vehicles | ||||||||||||
| Office equipment | ||||||||||||
| Construction-in-progress | — | |||||||||||
| Total | ||||||||||||
| Less: accumulated depreciation | ( | ) | ( | ) | ( | ) | ||||||
| Plant and equipment, net | ||||||||||||
Construction-in-progress is primarily comprised of equipment and tooling related to the manufacturing of the Company’s products which have not yet been placed in service. Completed assets are transferred to their respective asset classes and depreciation begins when an asset is ready for its intended use.
Depreciation expenses recognized for the six months ended June 30, 2025 and 2026 were HK$
F-18
10. INTANGIBLE ASSETS, NET
Intangible assets, net consist of the following:
As of December 31, 2025 | As of June 30, 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Software | ||||||||||||
| Patent | ||||||||||||
| Total | ||||||||||||
| Less: accumulated amortization | ( | ) | ( | ) | ( | ) | ||||||
| Intangible assets, net | ||||||||||||
Amortization expenses recognized for the six months ended June 30, 2025 and 2026 were HK$
11. ACCRUALS AND OTHER PAYABLES
Accruals and other payables consist of the following:
As of December 31, 2025 | As of June 30, 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Payroll payable | ||||||||||||
| Accrued expenses | ||||||||||||
| Customer deposits | ||||||||||||
| Contract liabilities | ||||||||||||
| Other tax payables | ||||||||||||
| Total | ||||||||||||
Changes in the Group’s contract liabilities are presented as follows:
As of December 31, 2025 | As of June 30, 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Beginning balance | ||||||||||||
| Addition | — | |||||||||||
| Recognized as revenue | ( | ) | ( | ) | ( | ) | ||||||
| Exchange alignment | — | — | ||||||||||
| Ending balance | ||||||||||||
F-19
12. BANK AND OTHER BORROWINGS
Outstanding balances of the bank and other borrowings as of December 31, 2025 and June 30, 2026 consisted of the following:
As of December 31, 2025 | As of June 30, 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Bank borrowings: | ||||||||||||
| Guaranteed | ||||||||||||
| Collateralized and guaranteed | ||||||||||||
| Other borrowing: | ||||||||||||
| Collateralized and guaranteed | ||||||||||||
| Less: current portion | ( | ) | ( | ) | ( | ) | ||||||
| Non-current portion | ||||||||||||
Bank and other borrowings as of December 31, 2025 and June 30, 2026 are as follows:
| Balance as at | ||||||||||||||||||||||
| Lender | Type | Maturity date | Currency | Effective interest rate | December 31, 2025 | June 30, 2026 | ||||||||||||||||
| HK $ | HK $ | US$ | ||||||||||||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||
| Bank of China(i) | Bank borrowing | % | — | — | ||||||||||||||||||
| Bank of China(ii) | Bank borrowing | % | — | |||||||||||||||||||
| Bank of China(iii) | Bank borrowing | % | ||||||||||||||||||||
| Shenzhen Rural Commercial Bank(iv) | Bank borrowing | % | — | — | ||||||||||||||||||
| Livi Bank Limited(v) | Bank borrowing | % | ||||||||||||||||||||
| The Bank of East Asia Limited(vi) | Bank borrowing | % | ||||||||||||||||||||
| The Bank of East Asia Limited(vii) | Bank borrowing | % | — | — | ||||||||||||||||||
| The Bank of East Asia Limited(viii) | Bank borrowing | % | — | |||||||||||||||||||
| Ping An International Financial Leasing Co., Ltd.(ix) | Other borrowing | % | ||||||||||||||||||||
| Yongying Financial Leasing Co., Ltd. (x) | Other borrowing | % | — | |||||||||||||||||||
| Yongying Financial Leasing Co., Ltd. (xi) | Other borrowing | % | — | |||||||||||||||||||
| (i) |
F-20
12. BANK AND OTHER BORROWINGS (cont.)
| (ii) |
| (iii) |
| (iv) |
| (v) |
| (vi) |
| (vii) |
| (viii) |
| (ix) |
| (x) |
| (xi) |
F-21
12. BANK AND OTHER BORROWINGS (cont.)
| Loan type in terms of currency (in HK$) - Unaudited | Carrying value | Within 1 year | 1 to 2 years (July 1, 2027 – June 30, 2028) | 2 to 3 years (July 1, 2028 – June 30, 2029) | More than 3 years (After June 30, 2029) | |||||||||||||||
| in HK$ | ||||||||||||||||||||
| In US$ | — | — | — | |||||||||||||||||
| in RMB | — | |||||||||||||||||||
| June 30, 2026 | ||||||||||||||||||||
| Loan type in terms of currency (in US$) – Unaudited | Carrying value | Within 1 year | 1 to 2 years (July 1, 2027 – June 30, 2028) | 2 to 3 years (July 1, 2028 – June 30, 2029) | More than | |||||||||||||||
| in HK$ | ||||||||||||||||||||
| In US$ | — | — | — | |||||||||||||||||
| in RMB | — | |||||||||||||||||||
| June 30, 2026 | ||||||||||||||||||||
| Loan type in terms of currency (in HK$) – Audited | Carrying value | Within 1 year | 2027 | 2028 | 2029 | |||||||||||||||
| in HK$ | ||||||||||||||||||||
| In US$ | — | — | — | |||||||||||||||||
| in RMB | — | — | ||||||||||||||||||
| December 31, 2025 | ||||||||||||||||||||
Banking facilities and financial covenants
As of June 30, 2026, the Group maintained aggregate banking and credit facilities of HK$
F-22
13. LEASES
Operating leases as lessee
The operating leases of the Company primarily consist of leases of plants and staff dormitory.
As of December 31, 2025 | As of June 30, 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Assets | ||||||||||||
| Operating lease right-of-use assets, net | ||||||||||||
| Liabilities | ||||||||||||
| Operating lease liabilities, current | ||||||||||||
| Operating lease liabilities, non-current | ||||||||||||
| Total lease liabilities | ||||||||||||
The following table presents the maturity of the Group’s operating lease liabilities as of June 30, 2026:
| Operating lease payments | ||||||||
| HK$ | US$ | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Six months ending December 31, 2025 | ||||||||
| Twelve months ending December 31, 2026 | ||||||||
| Twelve months ending December 31, 2027 | ||||||||
| Twelve months ending December 31, 2028 | ||||||||
| Twelve months ending December 31, 2029 | ||||||||
| Thereafter | ||||||||
| Total operating lease payments | ||||||||
| Less: imputed interest | ( | ) | ( | ) | ||||
| Present value of operating lease liabilities | ||||||||
Operating lease expense for the six months ended June 30, 2025 and 2026 was HK$
Other supplemental information about the Group’s operating lease as follows:
December 31, 2025 | June 30, 2026 | |||||||
| (Audited) | (Unaudited) | |||||||
| Weighted average discount rate | % | % | ||||||
| Weighted average remaining lease term (years) | ||||||||
F-23
14. RELATED PARTY BALANCES AND TRANSACTIONS
Relationships with related parties
| Name of related parties | Relationship with the Group | |
| Jiamei Cultural and Creative (Shenzhen) Co., Ltd (“Jiamei”) | ||
| Mr. Cheng | ||
| Mrs. Cheng | ||
| Mr. Zheng Hongrong |
(a) Major transactions with related parties
For the Six Months Ended June 30, | ||||||||||||||
| Name of related party | Transaction nature | 2025 | 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Jiamei | Sales | |||||||||||||
| Mrs. Cheng | Rental expenses | |||||||||||||
| Mr. Cheng | Commission paid | |||||||||||||
| Mrs. Cheng | Commission paid | |||||||||||||
(b)
As of December 31, 2025 and June 30, 2026, the balance of amount due from a related party was as follows:
| Name of a related party | As of December 31, 2025 | As of June 30, 2026 | ||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Jiamei | ||||||||||||
The balance represents the account receivable of the sales of printing materials to Jiamei. The amount was unsecured, interest-free and repayable on demand.
F-24
14. RELATED PARTY BALANCES AND TRANSACTIONS (cont.)
(c) Due to related parties
As of December 31, 2025 and June 30, 2026, the balances of amounts due to related parties were as follows:
| Name of related parties | As of December 31, 2025 | As of June 30, 2026 | ||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Mr. Cheng(i) | ||||||||||||
| Mrs. Cheng(i) | ||||||||||||
| (i) |
15. INCOME TAX BENEFITS
Income tax
Cayman Islands
Under the current laws of the Cayman Islands, the Group is not subject to tax on income or capital gain. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.
BVI
New Achiever is incorporated in the BVI and is not subject to tax on income or capital gains under current BVI law. In addition, upon payments of dividends by these entities to their shareholders, no BVI withholding tax will be imposed.
Hong Kong
Samfine HK is incorporated in Hong Kong and is subject to Hong Kong Profits Tax on the taxable income as reported in its statutory financial statements adjusted in accordance with relevant Hong Kong tax laws. The applicable tax rate is
PRC
The PRC subsidiaries are incorporated under PRC law and, as such, are subject to PRC enterprise income tax on their taxable income in accordance with the relevant PRC income tax laws. Pursuant to the PRC Enterprise Income Tax Law, a uniform
Samfine SZ applied and officially obtained a preferential tax concession for being a high technology enterprise whereby Samfine SZ was entitled to have a tax concession at
Since 2022, according to a notice jointly released by the Ministry of Finance and two other government departments, high and new technology enterprise entitled to the pre-tax deduction of
F-25
15. INCOME TAX INCOME (cont.)
PRC (cont.)
Dividends, interests, rent or royalties payable by the Group’s PRC subsidiaries, to non-PRC resident enterprises, and proceeds from any such non-resident enterprise investor’s disposition of assets (after deducting the net value of such assets) shall be subject to
Although there are undistributed earnings of the Company’s subsidiaries in the PRC that are available for distribution to the Company, the undistributed earnings of the Company’s subsidiaries located in the PRC are considered to be indefinitely reinvested, because the Company does not have any present plan to pay any cash dividends on its ordinary shares in the foreseeable future and intends to retain most of its available funds and any future earnings for use in the operation and expansion of its business. Accordingly, no deferred tax liability has been accrued for the PRC dividend withholding taxes that would be payable upon the distribution of those amounts to the Company as of December 31, 2025 and June 30, 2026.
Significant components of the provision for income taxes are as follows:
| For the six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| HK$ | HK$ | US$ | ||||||||||
| Current: | ||||||||||||
| Hong Kong | — | — | — | |||||||||
| PRC | — | — | ||||||||||
| Deferred: | ||||||||||||
| Hong Kong | ( | ) | ( | ) | ( | ) | ||||||
| PRC | — | — | ||||||||||
| ( | ) | ( | ) | ( | ) | |||||||
| Income tax benefit | ( | ) | ( | ) | ( | ) | ||||||
Deferred tax
The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of:
| Tax losses | Allowance for expected credit losses | Total | ||||||||||
| HK$ | HK$ | HK$ | ||||||||||
| As of January 1, 2025 | ||||||||||||
| Credited to the unaudited interim condensed consolidated statements of operations | 1,741,133 | |||||||||||
| As of June 30, 2025 (Unaudited) | ||||||||||||
| As of June 30, 2025 (US$) (Unaudited) | ||||||||||||
| As of January 1, 2026 | ||||||||||||
| Credited to the unaudited interim condensed consolidated statements of operations | 112,425 | |||||||||||
| As of June 30, 2026 (Unaudited) | ||||||||||||
| As of June 30, 2026 (US$) (Unaudited) | ||||||||||||
Movements of deferred tax asset were as follows:
As of December 31, 2025 | As of June 30, 2026 | |||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Deferred tax asset: | ||||||||||||
| Beginning balance | ||||||||||||
| (Utilized)/recognised | ( | ) | ||||||||||
| Ending balance | ||||||||||||
The management believes the Company will be able to full utilize the assets in the foreseeable future.
F-26
16. RISKS AND UNCERTAINTIES
Concentration of credit risk
Financial instruments that potentially expose the Group to concentrations of credit risk consist principally of cash and cash equivalents and accounts receivable, net.
The Group places its cash in various commercial banks in the PRC and Hong Kong. The Group believes that no significant credit risk exists as these banks are principally government-owned financial institutions with high credit ratings.
The Group deposits its cash with reputable banks located in the PRC and Hong Kong. As of December 31, 2025 and June 30, 2026, HK$
Accounts receivable primarily comprises of amounts receivable from the clients. To reduce credit risk, the Company performs on-going credit evaluations of the financial condition of these service clients. The Company establishes a provision for credit losses based upon estimates, factors surrounding the credit risk of specific clients and other information.
Customer concentration risk
For the six months ended June 30, 2025, three customers accounted for
As of December 31, 2025, three customers accounted for
Vendor concentration risk
For the six months ended June 30, 2025, one vendor accounted for
As of December 31, 2025, one vendor accounted for
Interest rate risk
Fluctuations in market interest rates may negatively affect the Group’s financial condition and results of operations. The Group is exposed to floating interest rate risk on floating rate borrowings, and the risks due to changes in interest rates are not material. The Group has not used any derivative financial instruments to manage its interest risk exposure.
Foreign currency risk
We are exposed to foreign currency risk primarily through sales that are denominated in a currency other than the functional currency of the operations to which they relate. The currencies giving rise to this risk are primarily US$. As HK$ is currently pegged to US$, the Company’s exposure to foreign exchange fluctuations is minimal.
While the reporting currency of the Company is HK$, certain of the revenue and costs of revenues and expenses are denominated in RMB. Certain of the Company’s assets and liabilities are denominated in RMB. As a result, the Company are exposed to foreign exchange risk as its revenues and results of operations may be affected by fluctuations in the exchange rate between HK$ and RMB. If RMB depreciates against HK$, the value of the RMB revenues of the Company, net income and assets as expressed in its HK$ financial statements will decline. Assets and liabilities are translated at exchange rates at the balance sheet dates while revenues and expenses are translated at the average exchange rates and equity is translated at historical exchange rates. Any resulting translation adjustments are not included in determining net income but are included in determining other comprehensive loss, a component of equity. We have not entered into any hedging transactions in an effort to reduce its exposure to foreign exchange risk.
F-27
17. SHAREHOLDERS’ EQUITY
Ordinary shares
For the sake of undertaking a public offering of the Company’s ordinary shares, the Company has performed a series of re-organizing transactions including a share split of 1-to-1.6 performed on September 5, 2023, As a result of the share split, the Company had
On October 16, 2024, the Company announced the closing of its initial public offering (“IPO”) of
On October 22, 2024, the over-allotment option of
During the process of IPO and over-allotment, the Company incurred an aggregate of approximately HK$
On May 13, 2025, the Company held the extraordinary general meeting to approve: (a) the issued
On December 30, 2025, the Company held its annual general meeting to approve every five issued and unissued shares (namely, both class A ordinary shares of a par value of US$
Dividend distributions
During the six months ended June 30, 2025 and 2026, no interim dividend was declared nor paid.
F-28
18. COMMITMENTS AND CONTINGENCIES
Commitments
The Company’s commitments related to purchase of plant and machineries. Total commitments contracted for but not yet reflected in the unaudited interim condensed consolidated financial statements amounted to
Contingencies
As of June 30, 2026, the Group was involved in various legal proceedings and disputes with labor contract and workers, all awaiting court decisions. The Group has reviewed each case to evaluate the likelihood of potential losses and estimate the corresponding amounts.
Samfine SZ was involved in litigation with an ex-staff regarding claims totaling CNY
One ongoing litigation with a worker remains under negotiation. The plaintiff claims the compensation of injury totaling CNY
Samfine SZ was involved in litigation with another worker regarding injury compensation totaling CNY
Any potential losses related to these proceedings are not expected to have a material adverse effect on the Group consolidated financial position, cash flows, or results of operations, either individually or in the aggregate. While the litigations are in early stage and the outcome of these matters is uncertain, based on currently available information, the Group is unable to reasonably estimate the possible loss or range of loss, if any, at the date of this report. The Group continues to monitor these matters and will recognize a liability if and when a loss becomes probable and reasonably estimate.
19. SUBSEQUENT EVENTS
On September 8, 2026, the Compensation Committee of the Company adopted the 2026 Equity Incentive Plan of Samfine Creation Holdings Group Limited (the “Plan”), reserving a total of
The Company evaluates all events and transactions that occurred after June 30, 2026 and up through September 29, 2026. Other than the event disclosed elsewhere in the unaudited interim condensed consolidated financial statements, there is no other material subsequent event occurred that would require recognition or disclosure in the Company’s unaudited interim condensed consolidated financial statements.
F-29
Exhibit 99.1
SAMFINE CREATION HOLDINGS GROUP LIMITED Announces First Half 2026 Unaudited Financial Results
HONG KONG, September 29, 2026 (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, 2026.
Overview:
| ● | Revenue was HK$77.2 million (US$9.8 million) for the six months ended June 30, 2026, representing a decrease of 6.0% from HK$82.1 million for the same period in 2025. | |
| ● | Net loss was HK$14.8 million (US$1.9 million) for the six months ended June 30, 2026, as compared with a net loss of HK$8.5 million for the same period in 2025. |
Six Months Ended June 30, 2026 Financial Results
Revenue. Revenue remained relatively stable at HK$77,204,628 (US$9,845,018) for the six months ended June 30, 2026, representing a marginal decrease of 6.0% compared to HK$82,121,233 for the six months ended June 30, 2025.
Cost of revenue. Cost of revenue remained relatively stable at HK$62,311,470 (US$7,945,865) for the six months ended June 30, 2026, representing a marginal decrease of 6.1% compared to HK$66,340,565 for the six months ended June 30, 2025. The decrease was generally in line with the decline in overall sales volume.
Gross Profit. Gross profit decreased by 5.6% from HK$15,780,668 for the six months ended June 30, 2025 to HK$14,893,158 (US$1,899,153) for the six months ended June 30, 2026, driven primarily by lower revenue contribution. Gross profit margin remained relatively stable at 19.3% compared to 19.2% for the prior period.
General and administrative expenses. General and administrative expenses decreased by 9.0% from HK$20,105,220 for the six months ended June 30, 2025 to HK$18,286,670 (US$2,331,889) for the six months ended June 30, 2026, principally due to a decrease in office expenses and professional fees incurred during the period.
Selling and marketing expenses. Selling and marketing expenses remained relatively stable at HK$8,648,044 (US$1,102,786) for the six months ended June 30, 2026, representing a marginal decrease of 0.8% compared to HK$8,720,599 for the six months ended June 30, 2025.
Other gains (losses), net. Other gains (losses), net shifted significantly from net other gains of HK$3,213,799 for the six months ended June 30, 2025 to net other losses of HK$2,292,546 (US$292,342) for the six months ended June 30, 2026. This change was a key driver of the increase in net loss for the period, primarily resulting from foreign exchange losses driven by RMB fluctuations and write-offs and disposals of specialized equipment.
Net loss. Net loss increased by 75.6% from HK$8,457,024 for the six months ended June 30, 2025 to HK$14,849,336 (US$1,893,566) for the six months ended June 30, 2026. Ongoing trade tensions and market uncertainties negatively affected the Company’s sales growth as outlined in its strategic plan, leading to an operating loss for the six months ended June 30, 2026.
About SAMFINE CREATION HOLDINGS GROUP LIMITED
SAMFINE CREATION HOLDINGS GROUP LIMITED is an established one-stop printing service provider which principally provides printing services in Hong Kong and the PRC. With over 20 years of experience in the printing industry, its operating subsidiaries offer a wide range of printed products such as book products, novelty and packaging products. Its operating subsidiaries’ customers principally comprise of book traders located in Hong Kong whose clients are located around the world, mainly in the U.S. and Europe.
Exchange Rate Information
The Company is a holding company with operations conducted in Hong Kong and the PRC through its operating subsidiaries in Hong Kong and the PRC, Samfine HK and Samfine SZ, respectively. SFHG’s reporting currency is HK$. These unaudited interim condensed consolidated financial statements contains translations of HK$ into U.S. dollars solely for the convenience of the reader. Unless otherwise noted, all translations from HK$ to U.S. dollars and from U.S. dollars to HK$ in these unaudited interim condensed consolidated financial statements were calculated at the noon buying rate of US$1 = HK$7.842 on June 30, 2026, as published in H.10 statistical release of the United States Federal Reserve Board. We make no representation that the HK$ or U.S. dollar amounts referred to in these unaudited interim condensed consolidated financial statements could have been or could be converted into U.S. dollars or HK$, as the case may be, at any particular rate or at all.
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. The Company cautions investors that actual results may differ materially from the anticipated results, and encourages investors to read the risk factors contained in the Company’s unaudited interim condensed consolidated financial statements and other reports it files with the SEC before making any investment decisions regarding the Company’s securities. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law.
Rounding Amounts and Percentages
Certain amounts and percentages included in this press release have been rounded for ease of presentation. Percentage figures included in this press release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding.
For investor and media inquiries, please contact:
SAMFINE CREATION HOLDINGS GROUP LIMITED
Investor Relations
Email: 888@1398.cn
Telephone: (852) 3589 1500
2
SAMFINE CREATION HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2025 AND JUNE 30, 2026
As of December 31, 2025 | As of June 30, 2026 | As of June 30, 2026 | ||||||||||
| HK$ | HK$ | US$ | ||||||||||
| (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS | ||||||||||||
| Cash and cash equivalents | 31,172,798 | 28,929,438 | 3,689,038 | |||||||||
| Restricted cash | 15,023,582 | 4,741,909 | 604,681 | |||||||||
| Accounts receivable, net | ||||||||||||
| - Third parties | 28,739,851 | 33,221,527 | 4,236,359 | |||||||||
| - Related party | 516,920 | 208,508 | 26,589 | |||||||||
| Prepayments and other current assets, net | 13,517,496 | 20,321,780 | 2,591,403 | |||||||||
| Inventories, net | 12,849,149 | 13,093,535 | 1,669,668 | |||||||||
| Prepaid income tax | 277,570 | 277,570 | 35,395 | |||||||||
| Total current assets | 102,097,366 | 100,794,267 | 12,853,133 | |||||||||
| NON-CURRENT ASSETS | ||||||||||||
| Plant and equipment, net | 26,984,809 | 29,049,194 | 3,704,309 | |||||||||
| Intangible assets, net | 650,700 | 592,977 | 75,616 | |||||||||
| Investment in life insurance contract, net | 1,559,502 | 1,567,745 | 199,916 | |||||||||
| Prepayments | 9,804,167 | 2,166,667 | 276,290 | |||||||||
| Prepayment for acquisition of plant and equipment | 4,056,564 | 2,074,456 | 264,531 | |||||||||
| Operating lease right-of-use assets, net | 25,679,797 | 24,031,706 | 3,064,487 | |||||||||
| Deferred tax asset | 1,495,836 | 1,608,261 | 205,083 | |||||||||
| Total non-current assets | 70,231,375 | 61,091,006 | 7,790,232 | |||||||||
| Total assets | 172,328,741 | 161,885,273 | 20,643,365 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| CURRENT LIABILITIES | ||||||||||||
| Accounts and bills payables | 53,960,626 | 54,133,583 | 6,903,033 | |||||||||
| Accruals and other payables | 6,444,731 | 10,433,876 | 1,330,512 | |||||||||
| Bank and other borrowings | 23,549,661 | 24,056,502 | 3,067,648 | |||||||||
| Due to related parties | 100,000 | 80,000 | 10,201 | |||||||||
| Operating lease liabilities | 5,113,112 | 5,426,949 | 692,036 | |||||||||
| Total current liabilities | 89,168,130 | 94,130,910 | 12,003,430 | |||||||||
| NON-CURRENT LIABILITIES | ||||||||||||
| Bank and other borrowings | 10,783,889 | 11,710,416 | 1,493,295 | |||||||||
| Deferred tax liabilities | 6,526 | 4,868 | 621 | |||||||||
| Operating lease liabilities | 20,566,685 | 18,604,757 | 2,372,451 | |||||||||
| Total non-current liabilities | 31,357,100 | 30,320,041 | 3,866,367 | |||||||||
| Total liabilities | 120,525,230 | 124,450,951 | 15,869,797 | |||||||||
| COMMITMENTS AND CONTINGENCIES (Note 18) | ||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||
| Class A Ordinary shares: US$0.0003125 par value,158,200,000 shares authorized, 2,260,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025* | 5,505 | 5,505 | 709 | |||||||||
| Class B Ordinary shares: US$0.0003125 par value, 1,800,000 shares authorized, 1,800,000 shares issued and outstanding as of June 30, 2026 and December 31, 2025* | 4,384 | 4,384 | 564 | |||||||||
| Additional paid-in capital | 68,647,780 | 68,647,780 | 8,753,861 | |||||||||
| Statutory reserve | 278,740 | 278,740 | 35,545 | |||||||||
| Accumulated other comprehensive income | 2,244,558 | 2,724,705 | 347,439 | |||||||||
| Accumulated losses | (19,377,456 | ) | (34,226,792 | ) | (4,364,550 | ) | ||||||
| Total shareholders’ equity | 51,803,511 | 37,434,322 | 4,773,568 | |||||||||
| Total liabilities and shareholders’ equity | 172,328,741 | 161,885,273 | 20,643,365 | |||||||||
| * | Giving retroactive effect to the 1-for-5 share consolidation. |
3
SAMFINE CREATION HOLDINGS GROUP LIMITED AND ITS SUBSIDIARIES
UNAUDITED INTERIM CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (LOSS)
FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2026
| Six months ended June 30, | ||||||||||||
| 2025 | 2026 | 2026 | ||||||||||
| HK$ | HK$ | US$ | ||||||||||
| REVENUE | 82,121,233 | 77,204,628 | 9,845,018 | |||||||||
| COST OF REVENUE | (66,340,565 | ) | (62,311,470 | ) | (7,945,865 | ) | ||||||
| Gross profit | 15,780,668 | 14,893,158 | 1,899,153 | |||||||||
| OPERATING EXPENSES | ||||||||||||
| Selling and marketing | (8,720,599 | ) | (8,648,044 | ) | (1,102,786 | ) | ||||||
| General and administrative | (20,105,220 | ) | (18,286,670 | ) | (2,331,889 | ) | ||||||
| Total expenses | (28,825,819 | ) | (26,934,714 | ) | (3,434,675 | ) | ||||||
| LOSS FROM OPERATION | (13,045,151 | ) | (12,041,556 | ) | (1,535,522 | ) | ||||||
| OTHER INCOME (EXPENSE) | ||||||||||||
| Interest income | 43,856 | 67,770 | 8,642 | |||||||||
| Interest expense | (445,562 | ) | (801,083 | (102,153 | ) | |||||||
| Other income | 78,252 | 103,996 | 13,261 | |||||||||
| Other gain, net | 3,213,799 | 2,292,546 | (292,342 | ) | ||||||||
| Total other income, net | 2,890,345 | (2,921,863 | ) | (372,592 | ) | |||||||
| LOSS BEFORE INCOME TAX EXPENSE | (10,154,806 | ) | (14,963,419 | ) | (1,908,114 | ) | ||||||
| INCOME TAX INCOME | 1,697,782 | 114,083 | 14,548 | |||||||||
| NET LOSS | (8,457,024 | ) | (14,849,336 | ) | (1,893,566 | ) | ||||||
| FOREIGN CURRENCY TRANSLATION ADJUSTMENT | (597,455 | ) | 480,147 | 61,228 | ||||||||
| TOTAL COMPREHENSIVE LOSS | (9,054,479 | ) | (14,369,189 | ) | (1,832,338 | ) | ||||||
| Weighted average number of ordinary shares: | ||||||||||||
| Basic and diluted | 4,060,000 | 4,060,000 | 4,060,000 | |||||||||
| LOSS PER SHARE: | ||||||||||||
| BASIC AND DILUTED* | (2.08 | ) | (3.66 | ) | (0.47 | ) | ||||||
| * | Giving retroactive effect to the 1-for-5 share consolidation. |
4