Financial Performance - Revenue for the six months ended June 30, 2024, was $95,342,134, a decrease of 4% compared to $100,207,524 for the same period in 2023[1] - Gross profit for the same period was $26,211,267, down from $27,915,589, reflecting a gross margin of approximately 27.5%[1] - The net profit for the six months ended June 30, 2024, was $4,304,099, compared to $5,830,617 for the same period in 2023, representing a decline of 26%[2] - Basic and diluted earnings per share for the period were $0.68, down from $0.92 in the previous year[3] - The company reported a total comprehensive income of $4,258,273 for the six months ended June 30, 2024, compared to $5,547,612 in the prior year[3] - Revenue for the first half of 2024 decreased by approximately 4.9% to $95.3 million compared to $100.2 million in the same period of 2023[25] - Net profit for the first half of 2024 declined by 26.2% to $4.3 million, impacted by a $2.4 million bad debt provision and approximately $11 million in withheld goods from Bonobos[22] - Gross profit for the first half of 2024 was approximately $26.2 million, down from about $27.9 million in the same period of 2023, representing a decline of approximately 6.1%[27] - Gross margin decreased to approximately 27.5% in the first half of 2024 from about 27.9% in the same period of 2023[27] Assets and Liabilities - Total current assets decreased to $70,897,942 from $82,684,999, primarily due to a reduction in trade receivables[4] - Total current liabilities decreased to $23,294,825 from $34,773,472, indicating improved liquidity management[4] - Non-current assets totaled $5,769,446 as of June 30, 2024, down from $6,411,494 at the end of 2023[5] - Trade receivables aged over 60 days increased significantly to $7.15 million as of June 30, 2024, compared to $2.53 million as of December 31, 2023[19] - Trade payables decreased to $13.54 million as of June 30, 2024, from $18.89 million as of December 31, 2023[20] - The company's current assets net value was approximately $47.6 million, with a current ratio of about 3.0 times as of June 30, 2024, compared to 2.4 times as of December 31, 2023[29] - The debt-to-equity ratio was approximately 0% as of June 30, 2024, indicating no borrowings, consistent with the previous period[30] - The debt-to-equity ratio (net debt to equity) was approximately -24.7% as of June 30, 2024, an improvement from -33.8% as of December 31, 2023[31] Costs and Expenses - Total employee costs amounted to $9,340,159, a slight decrease from $9,875,076 in the previous year[16] - Sales and distribution expenses decreased from approximately $11.6 million in the first half of 2023 to about $9.8 million during the review period, attributed to stable freight costs and more efficient distribution operations[28] - The financing costs significantly decreased to $42,004 from $174,160, indicating improved cost management[1] - The Hong Kong profits tax for the period was $542,679, down 53.5% from $1,167,983 in the previous year[14] - The group’s total inventory cost for the period was $69,130,867, a decrease from $72,291,935 in the previous year[16] - The group’s deferred tax expense for the period was $156,549, compared to $40,479 in the previous year[14] Dividends and Shareholder Information - The company declared an interim dividend of 3 HKD per share for the six months ended June 30, 2024, consistent with the previous year's interim dividend[17] - The board declared an interim dividend of 3 Hong Kong cents per share, expected to be distributed by September 30, 2024[34] - The interim report for the six months ending June 30, 2024, will be sent to shareholders and published on the company's website[43] Strategic Focus and Management - The company continues to focus on enhancing operational efficiency and exploring market expansion opportunities[7] - The company continues to explore merger and acquisition opportunities, focusing on valuation and strategic alignment[23] - The company is committed to a cautious and optimistic approach to navigate complex market conditions[24] - The company maintained a diversified customer base, with no single customer expected to account for more than 12% of total sales in 2024[22] - The company’s credit risk control measures allowed it to limit bad debt provisions to $2.4 million despite conducting over $3.38 million in business with Bonobos[22] Employee and Governance - The company employed a total of 340 full-time employees as of June 30, 2024, with total employee compensation amounting to approximately $9.3 million, a decrease of about 5.4% from the same period in 2023[33] - The audit committee, established on October 12, 2019, has reviewed the financial reporting procedures and internal control systems, finding no significant issues[40] - The remuneration committee, also established on October 12, 2019, is responsible for reviewing and approving the compensation policies for directors and senior management[41] - The nomination committee, established on October 12, 2019, evaluates the board's structure and recommends qualified individuals for board membership[42] - The stock option plan, adopted on October 12, 2019, remains unchanged during the review period[38] - The joint ownership share reward plan, adopted on October 18, 2021, and amended on June 13, 2023, aims to retain and attract qualified personnel for the company's growth[39] Other Information - The company has no significant contingent liabilities as of June 30, 2024, consistent with the previous period[32] - The company has not purchased, sold, or redeemed any of its listed securities as of June 30, 2024[37]
利华控股集团(01346) - 2024 - 中期业绩