谢瑞麟(00417) - 2025 - 中期财报

Financial Performance - Turnover for the six months ended 30 September 2024 was HK$864.392 million, a decrease from HK$1,346.534 million in the same period last year[15] - Gross profit for the period was HK$296.936 million, down from HK$469.996 million in the previous year[17] - Loss from operations was HK$1.257 million, compared to a loss of HK$8.078 million in the prior year[19] - Loss before tax was HK$39.937 million, an improvement from HK$53.687 million in the same period last year[21] - Loss for the period was HK$43.784 million, compared to HK$58.294 million in the previous year[23] - Basic and diluted loss per share attributable to owners of the company was HK$0.176, compared to HK$0.234 in the prior year[26] - Total comprehensive loss for the six months ended 30 September 2024 was HK$20.429 million, compared to HK$115.932 million in the same period last year[29] - The company reported a loss before tax of HK$39.937 million and a net loss of HK$43.784 million for the six months ended 30 September 2024[70] - The Group recorded a loss attributable to owners of the Company of HK$43.8 million for the Period, compared to a loss of HK$58.2 million for the same period last year[156] Cash Flow and Liquidity - Net cash flows from operating activities increased significantly to HK$60.8 million in 2024, compared to HK$7.4 million in 2023, reflecting improved operational efficiency[51] - Net cash flows used in investing activities decreased to HK$8.2 million in 2024 from HK$18.7 million in 2023, indicating reduced capital expenditures[51] - Net cash flows used in financing activities increased to HK$129.6 million in 2024 from HK$111.5 million in 2023, primarily due to higher repayments of interest-bearing bank borrowings[51] - The company reported a net decrease in cash and cash equivalents of HK$76.9 million in 2024, compared to HK$122.8 million in 2023, showing a slower rate of cash outflow[53] - Cash and cash equivalents at the end of the period stood at HK$110.1 million in 2024, down from HK$219.8 million in 2023, reflecting reduced liquidity[53] - As of 30 September 2024, the company had cash and bank balances (including pledged time deposits) of HK$399 million, while total interest-bearing bank borrowings amounted to HK$983 million[57] - The company's directors have reviewed cash flow projections covering at least 12 months from 30 September 2024, concluding sufficient working capital to meet financial obligations during this period[59] - Net debt position as of 30 September 2024 was approximately HK$601.6 million, compared to HK$602.3 million as of 31 March 2024[179] - Net gearing ratio increased to 113.0% as of 30 September 2024, up from 108.9% as of 31 March 2024[179] Assets and Liabilities - Net current assets as of 30 September 2024 decreased to HK$536.030 million from HK$639.046 million as of 31 March 2024[31] - Total assets less current liabilities stood at HK$1,021.604 million as of 30 September 2024, down from HK$1,127.666 million as of 31 March 2024[31] - Net assets decreased to HK$532.533 million as of 30 September 2024 from HK$552.962 million as of 31 March 2024[34] - Equity attributable to owners of the company decreased to HK$533.255 million as of 30 September 2024 from HK$553.725 million as of 31 March 2024[35] - Cash and cash equivalents decreased to HK$110.146 million as of 30 September 2024 from HK$179.967 million as of 31 March 2024[31] - Non-current liabilities decreased to HK$489.071 million as of 30 September 2024 from HK$574.704 million as of 31 March 2024[35] - Total equity decreased to HK$532.533 million as of 30 September 2024 from HK$552.962 million as of 31 March 2024[35] - Total financial liabilities including gold loans and interest-bearing bank borrowings amounted to HK$1,000,420,000 as of 30 September 2024, down from HK$1,076,394,000 as of 31 March 2024[135] - Interest-bearing bank borrowings decreased to HK$982,785,000 as of 30 September 2024 from HK$1,060,209,000 as of 31 March 2024[135] - The company's assets, including property, plant, and equipment, were mortgaged or pledged for approximately HK$606,962,000 as of 30 September 2024[120] Segment Performance - The Group operates in four reportable segments: Retail Business, Wholesale Business, E-business, and Other Businesses[67] - Retail Business includes direct retail sales of jewelry products through physical outlets under the TSL, DUO by TSL, and TSL TOSI trademarks, as well as retail management service fees[67] - Wholesale Business includes wholesale sales of jewelry products to customers, including franchisees[67] - E-business includes sales of jewelry products to customers on e-commerce platforms[67] - Segment performance is evaluated based on adjusted profit/(loss) before tax, excluding unallocated expenses, fair value gains/(losses) on investment properties, and non-lease-related finance costs[69] - Segment assets exclude deferred tax assets and tax recoverable, which are managed on a group basis[69] - Segment liabilities exclude gold loans, interest-bearing bank borrowings, tax payable, deferred tax liabilities, and employee benefit obligations, which are managed on a group basis[69] - Total revenue for the six months ended 30 September 2024 was HK$864.392 million, with retail business contributing HK$607.270 million, wholesale business HK$116.621 million, e-business HK$135.994 million, and other businesses HK$4.507 million[70] - Revenue from external customers in Hong Kong and Macau was HK$236.790 million, Mainland China HK$548.193 million, and other countries HK$79.409 million for the six months ended 30 September 2024[76] - Revenue from sales of jewelry products was HK$817.905 million, while service income was HK$46.487 million for the six months ended 30 September 2024[78] - The retail business segment revenue was HK$560.783 million from sales of jewelry products and HK$46.487 million from service income for the six months ended 30 September 2024[82] - Total revenue for the six months ended 30 September 2023 was HK$1,346,534,000, with retail business contributing HK$935,714,000, wholesale business HK$242,705,000, e-business HK$165,560,000, and other businesses HK$2,555,000[83] - Sales of jewellery products accounted for HK$1,306,254,000 of the total revenue, while service income contributed HK$40,280,000[83] - The Group's retail business in Malaysia showed desirable growth in sales turnover and profitability during the Period[168] - Retail business in Malaysia showed strong performance with sales turnover and profitability growing compared to the same period last year, driven by economic recovery, strong brand equity, improved product mix, and increased demand for 24K gold products[171] - Wholesale business experienced a slowdown due to a significant decline in demand for natural diamonds, leading to decreased sales turnover, and franchise network expansion was impacted by poor retail market sentiment in Mainland China[173] - E-business sales turnover declined during the period due to market downturn and planned inventory adjustments, with gross profit margin affected by increased sales of 24K gold products and clearance of aged gem-set jewellery[175] Cost and Expense Management - Cost of goods sold for the six months ended 30 September 2024 was HK$580,903,000, compared to HK$897,276,000 in the same period in 2023[85] - Employee benefit expense, including wages, salaries, and other benefits, was HK$171,479,000 for the six months ended 30 September 2024, down from HK$257,596,000 in the same period in 2023[85] - Finance costs for the six months ended 30 September 2024 were HK$38,680,000, including HK$31,904,000 in interest on bank loans and overdrafts and HK$3,418,000 in interest on lease liabilities[92] - Selling and distribution expenses and administration expenses were reduced by approximately 38.3$188.6 million during the Period[156] - The Group closed several underperforming retail stores in Hong Kong and Macao to save costs and improve efficiency[158] - Total number of employees decreased to 1,325 as of 30 September 2024, down from 2,240 as of 30 September 2023[181] Strategic Initiatives and Business Transformation - The company is restructuring its store network and transforming its business model, especially in Mainland China, to improve sales and mitigate liquidity pressure[57] - Cost control strategies, including staff relocations and headcount reductions, have been implemented to streamline operations and reduce expenses[57] - The company will continue to closely monitor compliance with financial covenants for banking facilities and bank borrowings, actively negotiating with banks to obtain waivers as needed to avoid immediate repayment requests[59] - The Group expects sales performance and overall profitability of its retail stores in Hong Kong and Macao to improve progressively in coming years[159] - The Group operates 390 stores in Mainland China, with approximately 85% being franchised stores[167] - The Group plans to expand its franchised store network, close non-performing self-operated stores, and maintain a balanced inventory mix of 24-karat gold and gem-set jewellery products in Mainland China[167] - The Group reopened 2 newly renovated flagship stores in Malaysia, located at Elite Pavilion in Kuala Lumpur and Gurney Plaza in Penang[169] - The Group will continue to expand its store network gradually at optimal locations in Malaysia to realize market potential[169] - The company is strategically transforming from a retail-focused model to a balanced retail-and-wholesale model to support rapid franchise network expansion in the coming years[173] - The company strengthened cooperation with popular e-commerce platforms in Mainland China, driving traffic to its online stores and transforming its e-business team for quicker market response[175] - The company plans to expand its franchise network in Mainland China with a mix of self-operated and franchised stores, aiming to improve sales performance and profitability in the coming years[177] Accounting Standards and Financial Reporting - The company has adopted revised HKFRSs, including amendments to HKFRS 16, HKAS 1, and HKAS 7, which did not impact the financial position or performance due to the absence of relevant transactions[60][62] - The 2020 and 2022 amendments to HKAS 1 clarified the classification of liabilities as current or non-current, with no impact on the company's financial position or performance[62] - Amendments to HKAS 7 and HKFRS 7 require additional disclosures for supplier finance arrangements, but the company has no such arrangements, resulting in no impact on the financial information[63] - The Group has no supplier financing arrangements, and the amendments to HKFRS 7 have no impact on the condensed consolidated interim financial data[64] - The Group has not yet applied the new and revised HKFRSs, including HKFRS 18, HKFRS 19, and amendments to HKFRS 9, HKFRS 7, HKFRS 10, and HKAS 28, which will become effective between 2025 and 2027[66] - The Group is assessing the impact of adopting the new and revised HKFRSs and has concluded that their adoption is unlikely to have a significant impact on the consolidated financial statements[66] - The interim financial report was approved by the board of directors on 14 November 2024[150] Shareholding and Ownership - 180,691,775 ordinary shares of the company are held by Partner Logistics Limited, controlled by Blink Technology Limited, which is owned by Mr. Tse Tat Fung, Tommy[187] - Ms. Yau On Yee, Annie, an executive director, is deemed to be interested in 180,691,775 ordinary shares held by Partner Logistics Limited, representing approximately 72.57% of the total issued share capital[189][190] - 5,219 ordinary shares are held by Mr. Tse Tat Fung, Tommy, and Ms. Yau On Yee, Annie is deemed to be interested in these shares[191][192] - Partner Logistics Limited holds 180,691,775 ordinary shares, representing 72.51% of the total issued share capital[199] - Blink Technology Limited holds 180,691,775 ordinary shares, representing 72.51% of the total issued share capital[199] - Tse Tat Fung, Tommy holds 180,691,775 ordinary shares through controlled corporations, representing 72.57% of the total issued share capital[199] - Rosy Blue Overseas Holdings Limited holds 180,691,775 ordinary shares, representing 72.51% of the total issued share capital[199] - Rosy Blue Jewellery (HK) Limited holds 180,691,775 ordinary shares, representing 72.51% of the total issued share capital[199] - Prime Investments S.A. holds 180,691,775 ordinary shares, representing 72.51% of the total issued share capital[199] - Elmas Hong Kong Limited holds 180,691,775 ordinary shares as a trustee, representing 72.51% of the total issued share capital[199] - The total issued share capital as of 30 September 2024 is 249,182,030 ordinary shares[200] Other Financial Information - Exchange differences on translation of foreign operations resulted in a gain of HK$23.355 million, compared to a loss of HK$57.638 million in the previous year[28] - Other comprehensive income for the period, net of tax, was HK$23.355 million, compared to a loss of HK$57.638 million in the same period last year[29] - Retained profits decreased to HK$122.931 million as of 30 September 2024 from HK$166.721 million as of 1 April 2024[47] - The company did not recommend the payment of any interim dividend for the six months ended 30 September 2024, consistent with the previous year[97] - Basic loss per share for the six months ended 30 September 2024 was HK$0.176, based on a loss attributable to owners of HK$43,790,000 and 249,182,030 ordinary shares in issue[99] - Inventories as of 30 September 2024 totaled HK$1,210,472,000, including HK$95,408,000 in raw materials, HK$11,860,000 in work in progress, and HK$1,103,204,000 in finished goods[104] - Trade receivables as of 30 September 2024 amounted to HK$84,472,000, with an impairment of HK$11,950,000, resulting in a net amount of HK$72,522,000[108] - Trade receivables aged within 1 month decreased to HK$57,160,000 as of 30 September 2024 from HK$73,807,000 as of 31 March 2024[109] - Trade payables as of 30 September 2024 totaled HK$364,360,000, with HK$172,107,000 aged within 1 month[113] - The company's authorized share capital consists of 1,500,000,000 ordinary shares of HK$0.25 each, totaling HK$375,000,000[116] - Issued and fully paid shares as of 30 September 2024 were 249,182,030 ordinary shares of HK$0.25 each, totaling HK$62,296,000[116] - Balances due to related companies amounted to HK$58,838,000 as of 30 September 2024, down from HK$77,665,000 as of 31 March 2024[119] - Purchases from related companies during the six months ended 30 September 2024 amounted to HK$8,424,000, while sales to a related company were HK$49,063,000[125] - Remuneration paid to Mr. Tommy Tse and Mr. Tse Senior during the reporting period was HK$1,209,000 and HK$974,000 respectively, compared to HK$1,209,000 and HK$753,000 in 2023[127] - Total compensation for key management personnel was HK$4,403,000 for the six months ended 30 September 2024, slightly down from HK$4,579,000 in the same period of 2023[132] - The Group's contractual commitments for property, plant and equipment stood at HK$29,114,000 as of 30 September 2024, up from HK$22,888,000 as of 31 March 2024[133] - The fair value of gold loans was HK$17,635,000 as of 30 September 2024, classified under Level 2 of the fair value hierarchy[139] - Fair value of financial liabilities categorized as Level 3 (unobservable inputs) was HK$982,785 thousand as of 30 September 2024[144] - Interest-bearing bank borrowings under financial liabilities had a fair value of HK$1,060,209 thousand as of 31 March 2024[146] - No transfers of fair value measurements between Level 1, Level 2, and Level 3 during the six months ended 30 September 2024[147] - Management assessed that fair values of cash, cash equivalents, and short-term financial instruments approximate their carrying amounts[148] - Gold loan fair value is based on open market gold prices, while other financial assets and liabilities are measured at amortized cost[150] - Group turnover decreased by 35.8% to HK$864.4 million from HK$1,346.5 million compared to the same period in 2023[152] - Gross profit margin slightly dropped from 34.9% in 2023 to 34.4% due to increased sales mix of 24-karat gold products[153] - No interim dividend was recommended for the six months ended