Financial Performance - Revenue for the six months ended September 30, 2022, was HK$87,292,000, a decrease of 15.3% from HK$102,974,000 in the same period of 2021[9] - Gross profit for the period was HK$58,384,000, down 9.7% from HK$64,151,000 year-on-year[9] - Loss from operations increased to HK$23,337,000 compared to a loss of HK$14,428,000 in the previous year, reflecting a deterioration of 61.5%[9] - Loss for the period attributable to equity shareholders was HK$23,890,000, compared to HK$14,720,000 in the prior year, representing a 62.2% increase in losses[9] - Basic and diluted loss per share was 14.4 cents, compared to 8.9 cents in the same period last year, indicating a significant increase in loss per share[9] - Total comprehensive income for the period was a loss of HK$44,756,000, compared to a loss of HK$17,956,000 in the same period of 2021[13] - The Group reported a consolidated loss before taxation of $24,403,000 for the six months ended 30 September 2022, compared to a loss of $15,640,000 in 2021[39] - The Group reported a basic loss attributable to ordinary equity shareholders of $23,890,000 for the six months ended 30 September 2022, compared to a loss of $14,720,000 for the same period in 2021[61] Comprehensive Income and Expenses - Other comprehensive income for the period included an exchange loss of HK$20,324,000, compared to a loss of HK$2,555,000 in the previous year[13] - Administrative and other operating expenses decreased to HK$23,697,000 from HK$29,159,000, showing a reduction of 18.6%[9] - Distribution costs increased to HK$51,356,000, up from HK$49,592,000, reflecting a rise of 3.6%[9] - The Group's finance costs for the six months ended 30 September 2022 were $1,066,000, compared to $1,242,000 in 2021[44] - Depreciation for the six months ended 30 September 2022 was $19,386,000, an increase from $17,060,000 in 2021[39] Assets and Liabilities - Non-current assets decreased from HK$239,848,000 to HK$219,254,000, a decline of approximately 8.6%[17] - Current assets decreased from HK$230,942,000 to HK$203,652,000, a decline of about 11.8%[17] - Cash and cash equivalents decreased from HK$132,788,000 to HK$105,783,000, representing a decrease of approximately 20.3%[17] - Net current assets decreased from HK$160,013,000 to HK$133,495,000, a decline of around 16.6%[17] - Total equity attributable to equity shareholders decreased from HK$498,998,000 to HK$447,264,000, a decline of approximately 10.4%[21] - Total reportable segment assets as of 30 September 2022 were $858,699,000, an increase from $852,759,000 in 2021[37] - Total reportable segment liabilities as of 30 September 2022 were $507,569,000, up from $487,703,000 in 2021[37] Cash Flow - Cash generated from operations increased to HK$2,337,000 from HK$2,148,000, an increase of about 8.8%[25] - Net cash used in financing activities was HK$17,327,000, compared to HK$37,123,000 in the previous period, indicating a reduction in cash outflow[26] - Cash and cash equivalents at the end of the period decreased to HK$105,511,000 from HK$149,089,000, a decrease of approximately 29.2%[26] - Cash and bank deposits as of September 30, 2022, were HK$105,511,000, down from HK$125,739,000 as of March 31, 2022[91] - As of September 30, 2022, the Group had cash and bank deposits net of bank overdrafts amounting to HK$105,511,000, a decrease from HK$125,739,000 as of March 31, 2022[93] Segment Information - The Group manages its businesses by four reportable segments: Sales of garments, Licensing of trademarks, Printing and related services, and Property rental[34] - Revenue from external customers for the six months ended 30 September 2022 was $87,292,000, a decrease of 15.3% compared to $102,974,000 for the same period in 2021[37] - Reportable segment profit (adjusted EBITDA) for the six months ended 30 September 2022 was $8,354,000, an increase of 50.4% from $5,546,000 in 2021[39] - The garments division reported a reportable segment revenue of $144,810,000 for the twelve months ended 30 September 2022, down 15.6% from $171,540,000 in 2021[41] - The garments division experienced a reportable segment loss of $4,077,000 for the twelve months ended 30 September 2022, compared to a profit of $23,835,000 in 2021[42] Corporate Governance and Compliance - The audit committee has reviewed the Group's accounting principles and the unaudited interim financial statements for the six months ending September 30, 2022[105] - The Company has complied with the Code on Corporate Governance Practices throughout the period ended 30 September 2022, except for the non-executive directors not being appointed for a specific term[111] - All directors have confirmed compliance with the Securities Dealing Code throughout the review period[114] Employee and Management Information - The Group had approximately 370 employees as of September 30, 2022, offering competitive remuneration packages including medical subsidies and retirement scheme contributions[95] - Key management personnel's emoluments for the period were $2,501,000, a decrease from $3,051,000 in 2021[78] Market Conditions and Future Outlook - The management anticipates a challenging operating environment in the second half of the year due to ongoing pandemic and geopolitical uncertainties[90] - The Group received subsidies of HK$3,874,000 during the period, compared to none in the previous year[88] Other Financial Metrics - The Group's net asset value as of September 30, 2022, was HK$454,621,000, a decrease from HK$507,670,000 as of March 31, 2022[91] - The Group's capital to debt ratio was 0.137 as of September 30, 2022, compared to 0.126 as of March 31, 2022[91] - The Group's gearing ratio increased to 0.137 as of September 30, 2022, compared to 0.126 as of March 31, 2022, with total borrowings of HK$272,000 and lease liabilities of HK$60,981,000[94]
YGM TRADING(00375) - 2023 - 中期财报