Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 100,004,000, a decrease of 15.4% compared to HKD 118,363,000 in the same period of 2022[10] - Gross profit for the same period was HKD 17,072,000, down 46.4% from HKD 31,841,000 year-on-year[10] - The company reported a loss before tax of HKD 12,034,000, improving from a loss of HKD 24,034,000 in the previous year, indicating a 50% reduction in losses[10] - Total comprehensive loss for the period was HKD 12,043,000, compared to HKD 23,993,000 in the prior year, reflecting a 49.8% improvement[14] - The company reported a net loss of HKD 12,034,000 for the six months ended June 30, 2023, compared to a net loss of HKD 24,201,000 for the same period in 2022, indicating a 50% improvement in losses year-over-year[18] - The net loss recorded was approximately HKD 12 million, a reduction of 49.9% compared to the previous year[62] - The company reported a loss attributable to owners of approximately HKD 12.0 million for the six months ended June 30, 2023, a 50.4% reduction from a loss of HKD 24.2 million in the same period of 2022[84] Assets and Liabilities - Non-current assets decreased to HKD 17,351,000 from HKD 23,297,000, a decline of 25.5%[17] - Current assets increased to HKD 114,601,000 from HKD 117,285,000, a slight decrease of 2.3%[17] - The company's cash and cash equivalents dropped to HKD 9,668,000 from HKD 18,479,000, a decrease of 47.6%[17] - The net asset value decreased to HKD 100,675,000 from HKD 112,718,000, a decline of 10.7%[17] - The company’s total equity as of June 30, 2023, was HKD 100,675,000, down from HKD 112,718,000 at the beginning of the year, reflecting a decrease of approximately 10.7%[18] - The company’s accumulated losses increased to HKD (182,414,000) as of June 30, 2023, compared to HKD (170,380,000) at the beginning of the year, indicating a worsening financial position[18] Cash Flow - Cash and cash equivalents decreased by HKD 8,802,000 during the first half of 2023, compared to a decrease of HKD 11,864,000 in the same period of 2022, showing a reduction in cash outflow[22] - The net cash flow used in operating activities was HKD (10,766,000) for the first half of 2023, slightly higher than HKD (10,674,000) in the previous year, indicating stable operational cash flow[22] - The company’s cash and bank balances stood at HKD 9,668,000 at the end of June 2023, compared to HKD 16,732,000 at the end of June 2022, representing a decline of 42.1% year-over-year[22] - The company’s financing activities generated a net cash inflow of HKD 2,027,000 in the first half of 2023, a significant increase from HKD 119,000 in the same period of 2022[22] - The company’s investment activities used a net cash flow of HKD (63,000) in the first half of 2023, a significant improvement from HKD (1,309,000) in the same period of 2022[22] Revenue Breakdown - Sales of handbags accounted for HKD 96,336,000, while sales of natural fragrances, skincare products, and fashion accessories dropped to HKD 3,668,000 from HKD 20,894,000 year-on-year[33] - Revenue from the Hong Kong market reached approximately HKD 100 million, accounting for 100% of total revenue[67] - Sales from handbags, the most important product category, accounted for over 96.3% of total revenue[67] Expenses - Selling expenses for the period were approximately HKD 15.5 million, accounting for 15.5% of revenue, down from HKD 23.4 million or 19.7% of revenue in the previous year[80] - Administrative and other operating expenses were approximately HKD 8.2 million, representing 8.2% of revenue, a decrease of about HKD 9.4 million compared to the previous year[81] - The cost of sales for the same period was approximately HKD 82.9 million, a reduction of 4.1% year-on-year, consistent with the decrease in revenue[72] Governance and Compliance - The company has complied with all applicable provisions of the Corporate Governance Code during the six months ended June 30, 2023, except for certain disclosures regarding board meeting notifications[107] - The Audit Committee has reviewed the financial statements for the six months ended June 30, 2023, and discussed audit, risk management, and internal control matters with management[110] - The company has established a formal whistleblowing policy to encourage employees to raise concerns internally without fear of retaliation[117] - The board has confirmed the effectiveness of the risk management and internal control systems during the review period[117] - The company has adopted the standard code for securities trading by directors, and all directors have confirmed compliance during the reporting period[109] Future Outlook - The group anticipates a rebound in local consumption due to government initiatives such as the electronic consumption voucher program, alongside a decrease in unemployment rates and increased vaccination rates[96] - The management plans to adopt a more prudent business policy to navigate unprecedented challenges while maintaining a leading position in the luxury handbag and accessories trade[96]
米兰站(01150) - 2023 - 中期财报