佐丹奴国际(00709) - 2024 - 中期财报

Financial Performance - Revenue for the six months ended June 30, 2024, was HK$1,903 million, a decrease of 3.4$1,970 million in 2023[3]. - Operating profit dropped by 26.3% to HK$202 million from HK$274 million in the previous year[3]. - Profit attributable to shareholders decreased by 36.8% to HK$120 million, down from HK$190 million in 2023[3]. - Basic earnings per share were 7.4 HK cents, down from 12.0 HK cents in 2023, representing a decline of 38.3%[3]. - Total comprehensive income for the period was HK$88 million, significantly lower than HK$207 million in the same period of 2023, reflecting a decline of approximately 57.6%[72]. - The Group's operating profit was HK$202 million, down from HK$319 million in the previous year, marking a decrease of about 36.7%[70]. - Profit after income taxes for the period was HK$120 million, compared to HK$190 million for the same period last year, reflecting a decrease of approximately 36.8%[81]. Revenue Breakdown - Revenue growth in the Gulf Cooperation Council was 0.6%, while Southeast Asia and Australia saw a 6.7% increase; Greater China experienced a decline of 5.1%[5]. - Same-store sales amounted to HK$1,444 million, reflecting a decline due to underperformance in Greater China[14]. - Retail revenue in Greater China dropped by 8.3$300 million for the six months ended June 30, 2024[104]. - Sales in Hong Kong and Macau amounted to HK$182 million during the same period[104]. - Southeast Asia and Australia generated sales of HK$739 million for the six months ended June 30, 2024[104]. - The Gulf Cooperation Council (GCC) wholesale to overseas franchisees recorded sales of HK$362 million[104]. Expenses and Margins - Gross margin improved slightly to 58.9$22 million from HK$17 million in the previous year, primarily due to higher imputed interest on lease liabilities[23][24]. Dividends and Shareholder Returns - The Board declared an interim dividend of 8.0 HK cents per share, a reduction of 52.9$129 million compared to HK$272 million in the previous year[128][131]. - The company intends to return surplus cash to shareholders through dividends and share repurchase, aligning with its dividend policy[189]. Inventory and Cash Flow - Group inventory remained stable at HK$514 million, with inventory turnover days increasing by eight days to 119 days[7]. - Net cash flow from operating activities was HK$265 million, with a net cash balance of HK$720 million as of June 30, 2024[7]. - The increase in aged inventory, particularly in Mainland China, has negatively impacted sales performance due to a lack of fresh products[50]. - As of June 30, 2024, cash and bank balance, net of bank loans, was HK$720 million, a significant decrease from HK$1,014 million in 2023, primarily due to reduced operating cash inflow and increased cash outflow from dividend payouts[48]. Strategic Initiatives and Future Outlook - IT upgrades are expected to be completed in the second half of 2024, aiming to drive higher sales in 2025 and beyond[14]. - The company aims to achieve positive growth in the second half of 2024 and work towards a flat full-year revenue growth compared to 2023[55]. - The new strategy 'Giordano – Beyond Boundaries' focuses on four pillars: reset, revitalize, recalibrate, and reconnect to transform the company into a growth business[54]. - The company plans to enhance its digital footprint significantly, particularly in Mainland China, to adapt to the shift towards online consumption[56]. - Giordano aims to achieve a high single to low double-digit compound annual growth rate (CAGR) in revenue between 2025 and 2030[59]. Market Conditions and Challenges - The Hong Kong and Macau markets saw a modest revenue decline due to consumer spending shifting to Mainland China and higher rental costs[29]. - Sales in overseas franchised markets declined by 9.3% due to political tensions affecting traditional franchise markets like Myanmar[46]. - The GCC region showed growth with sales and profits advancing in the first half of 2024, despite geopolitical tensions impacting the macroeconomic environment[41]. Shareholder Information - The total number of ordinary shares held by Director Chan Ka Wai was 7,456,000, representing approximately 0.46% of shareholding[194]. - Cheng Yu Tung Family (Holdings) Limited holds 388,180,000 shares, representing approximately 24.02% of the total shareholding[199]. - The company has a share option scheme for directors, with details provided in the report[197].