金利来集团(00533) - 2024 - 中期业绩

Interim Results Announcement This report presents the Goldlion Group's interim financial performance and operational review for the six months ended June 30, 2024 Condensed Consolidated Interim Financial Statements This section presents Goldlion Group's unaudited condensed consolidated interim financial statements, reflecting the Group's financial performance and position for the period Condensed Consolidated Interim Income Statement Condensed Consolidated Interim Income Statement (HKD thousands) | Metric | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :------------- | :--------------------------------- | :--------------------------------- | :------- | | Turnover | 603,261 | 661,236 | -8.8% | | Cost of sales | (241,390) | (272,109) | -11.3% | | Gross profit | 361,871 | 389,127 | -7.0% | | Other losses | (19,818) | (22,856) | -13.2% | | Distribution and marketing costs | (207,764) | (207,278) | 0.2% | | Administrative expenses | (78,365) | (81,124) | -3.4% | | Operating profit | 55,924 | 77,869 | -28.2% | | Profit before tax | 68,139 | 90,288 | -24.5% | | Income tax expense | (9,899) | (11,680) | -15.3% | | Profit for the period | 58,240 | 78,608 | -26.0% | | Attributable to owners of the Company | 58,233 | 78,608 | -26.0% | | Earnings per share (HK cents) | 5.98 | 8.03 | -25.6% | Condensed Consolidated Interim Statement of Comprehensive Income Condensed Consolidated Interim Statement of Comprehensive Income (HKD thousands) | Metric | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | | :------------------- | :--------------------------------- | :--------------------------------- | | Profit for the period | 58,240 | 78,608 | | Other comprehensive income | | | | - Revaluation of properties | 7,541 | 875 | | - Related income tax | (105) | (219) | | - Exchange differences | (74,436) | (72,717) | | Other comprehensive income for the period | (67,000) | (72,061) | | Total comprehensive income for the period | (8,760) | 6,547 | | Attributable to owners of the Company | (8,767) | 6,547 | Condensed Consolidated Interim Balance Sheet Condensed Consolidated Interim Balance Sheet (HKD thousands) | Metric | As at June 30, 2024 (HKD thousands) | As at December 31, 2023 (HKD thousands) | Change (%) | | :--------------- | :------------------------- | :-------------------------- | :------- | | Non-current assets | 2,964,255 | 3,015,860 | -1.7% | | Current assets | 2,196,920 | 2,265,896 | -3.0% | | Total assets | 5,161,175 | 5,281,756 | -2.3% | | Equity and reserves | 4,357,043 | 4,404,764 | -1.1% | | Non-controlling interests | 2,147 | - | N/A | | Total equity | 4,359,190 | 4,404,764 | -1.0% | | Non-current liabilities | 405,658 | 429,149 | -5.5% | | Current liabilities | 396,327 | 447,843 | -11.5% | | Total liabilities | 801,985 | 876,992 | -8.6% | | Total equity and liabilities | 5,161,175 | 5,281,756 | -2.3% | Notes to the Financial Statements This section details the principal accounting policies underlying the Group's condensed consolidated interim financial information and provides comprehensive notes for understanding the financial statements Principal Accounting Policies - The condensed consolidated interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" and Appendix 16 of the Listing Rules, consistent with the accounting policies adopted for the annual financial statements for the year ended December 31, 2023[4] - Amendments to standards and new interpretations effective in 2024 but irrelevant to the Group, as well as new standards and amendments to standards issued but not yet effective, are not expected to have a significant impact on the Group's condensed consolidated financial statements[4][5] Turnover and Segment Information - The Group primarily engages in the distribution and manufacturing of apparel, leather goods, and accessories, trademark licensing, and property investment and development businesses[6] Revenue by Type (HKD thousands) | Revenue Type | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :------------------- | :--------------------------------- | :--------------------------------- | :------- | | Sales of goods | 439,332 | 481,238 | -8.7% | | Sales of properties | 28,334 | 43,046 | -34.1% | | Property management fees | 20,560 | 20,737 | -0.9% | | Income from grant of operating rights | 40,356 | 38,891 | 3.8% | | Sales of electricity | 380 | - | N/A | | Rental income from investment properties | 74,299 | 77,324 | -3.9% | | Total Turnover | 603,261 | 661,236 | -8.8% | Segment Turnover (HKD thousands) | Operating Segment | Segment Turnover for the six months ended June 30, 2024 (HKD thousands) | Segment Turnover for the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :------------------- | :--------------------------------------------- | :--------------------------------------------- | :------- | | Apparel and accessories in Mainland China and Hong Kong SAR | 461,487 | 502,618 | -8.2% | | Apparel and accessories in Singapore | 18,535 | 17,703 | 4.7% | | Property investment and development | 129,043 | 146,408 | -11.9% | | Others and inter-segment sales | (5,804) | (5,493) | 5.7% | | Total Turnover | 603,261 | 661,236 | -8.8% | Other Losses Other Losses (HKD thousands) | Metric | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :------------------- | :--------------------------------- | :--------------------------------- | :------- | | Fair value loss on investment properties | 19,818 | 22,856 | -13.2% | Expenses by Nature Expenses by Nature (HKD thousands) | Expense Type | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :--------------------------- | :--------------------------------- | :--------------------------------- | :------- | | Cost of inventories sold | 189,561 | 218,044 | -13.0% | | Cost of properties sold | 21,079 | 31,030 | -32.1% | | Impairment provision for inventories | 12,350 | 4,441 | 178.1% | | Direct operating expenses for investment properties generating rental income | 17,596 | 18,209 | -3.4% | | Expenses relating to short-term leases and variable lease payments | 42,036 | 42,818 | -1.8% | | Depreciation of property, plant and equipment | 14,646 | 12,836 | 14.1% | | Depreciation of right-of-use assets | 10,528 | 8,699 | 21.0% | | Impairment of right-of-use assets | 2,245 | 127 | 1667.7% | | Impairment of property, plant and equipment | 227 | - | N/A | | Reversal of impairment loss on trade receivables, net | (10) | (737) | -98.6% | | Staff costs including directors' emoluments | 111,862 | 111,546 | 0.3% | | Advertising and promotion expenses | 38,424 | 46,514 | -17.4% | | Other expenses | 66,975 | 66,984 | -0.01% | | Total | 527,519 | 560,511 | -5.9% | Income Tax Expense - No Hong Kong profits tax provision was made for the period as the Group's estimated assessable profits were offset by tax losses brought forward from prior years[9] - China profits tax is calculated at 25%, with subsidiaries qualifying for small and micro-profit enterprise policies taxed at a preferential rate of 5%[9] Income Tax Expense (HKD thousands) | Metric | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :--------------- | :--------------------------------- | :--------------------------------- | :------- | | Current tax - China corporate income tax | 10,882 | 12,257 | -11.2% | | Deferred income tax | (983) | (577) | 70.4% | | Total Income Tax Expense | 9,899 | 11,680 | -15.3% | Earnings Per Share - Basic earnings per share were 5.98 HK cents, a 25.5% decrease from 8.03 HK cents in the prior period[10] - No potentially dilutive ordinary shares were issued during the period, thus diluted earnings per share are the same as basic earnings per share[10] Dividends Dividends (HKD thousands) | Metric | For the six months ended June 30, 2024 (HKD thousands) | For the six months ended June 30, 2023 (HKD thousands) | Change (%) | | :--------------- | :--------------------------------- | :--------------------------------- | :------- | | Interim dividend per ordinary share | 2.0 HK cents | 3.5 HK cents | -42.9% | | Total dividend payout | 19,477 | 34,245 | -43.1% | Trade Receivables - Net trade receivables were HKD 61,328 thousands, a 38.5% decrease from HKD 99,729 thousands at the end of 2023[12] Trade Receivables Ageing (HKD thousands) | Ageing | As at June 30, 2024 (HKD thousands) | As at December 31, 2023 (HKD thousands) | Change (%) | | :------------- | :------------------------- | :-------------------------- | :------- | | 1 to 30 days | 42,719 | 83,504 | -48.8% | | 31 to 90 days | 12,285 | 12,850 | -4.4% | | Over 90 days | 7,387 | 4,454 | 65.8% | | Total trade receivables | 62,391 | 100,808 | -38.1% | | Less: Impairment provision | (1,063) | (1,079) | -1.5% | | Net Trade Receivables | 61,328 | 99,729 | -38.5% | Trade Payables - Total trade payables were HKD 21,553 thousands, a 37.7% decrease from HKD 34,605 thousands at the end of 2023[13] Trade Payables Ageing (HKD thousands) | Ageing | As at June 30, 2024 (HKD thousands) | As at December 31, 2023 (HKD thousands) | Change (%) | | :------------- | :------------------------- | :-------------------------- | :------- | | 1 to 30 days | 15,920 | 29,351 | -45.8% | | 31 to 90 days | 4,258 | 3,654 | 16.5% | | Over 90 days | 1,375 | 1,600 | -14.1% | | Total Trade Payables | 21,553 | 34,605 | -37.7% | Management Discussion and Analysis This section provides a detailed analysis of the Group's operating results, business segment performance, market challenges, and future outlook for the review period Operating Results Turnover - Total turnover for the review period was HKD 603,261 thousands, a 9% year-on-year decrease, primarily due to declining apparel and accessories sales in Mainland China[15] Cost of Sales and Gross Profit - Total cost of sales was HKD 241,390 thousands, an 11.3% year-on-year decrease, with apparel and accessories cost of sales falling by 13%[16] - Gross profit margin, excluding inventory impairment, was 56.9%, higher than 54.7% in the prior period, mainly due to an increased proportion of self-operated retail sales[16] - Inventory impairment provision increased to HKD 12,350 thousands, up from HKD 4,441 thousands in the prior period[16] - Cost of properties sold decreased by 32% year-on-year, with a gross profit margin of 25.6%, slightly lower than the prior year[16] Other Losses - Fair value loss on investment properties was HKD 19,818 thousands, a 13% year-on-year decrease[17] Operating Expenses - Distribution and marketing costs were HKD 207,764 thousands, comparable to the prior period[18] - Administrative expenses were HKD 78,365 thousands, a 3% year-on-year decrease[18] Operating Profit - Operating profit was HKD 55,924 thousands, a 28% year-on-year decrease, with an operating profit margin of 9.3%, lower than 11.8% in the prior period[19] Profit Attributable to Owners of the Company - Net interest income was HKD 12,215 thousands, comparable to the prior period[20] - Income tax expense was HKD 9,899 thousands, a year-on-year decrease, with an effective tax rate of 16.5%, lower than 17.9% in the prior period[20] - Profit attributable to owners of the Company was HKD 58,233 thousands, a 26% year-on-year decrease[20] - Excluding the after-tax net fair value loss on investment properties, profit for the period was HKD 73,478 thousands, a 21% year-on-year decrease[20] Business Review Apparel and Accessories Business Mainland China and Hong Kong SAR Markets - Weak domestic economy and declining consumption led to an approximate 9% year-on-year decrease in overall apparel turnover in Mainland China (8% decrease in RMB terms)[20] - Wholesale business sales (in RMB) decreased by approximately 25%, accounting for about 29% of domestic apparel sales[20] - Self-operated retail sales (in RMB) decreased by approximately 3% year-on-year, accounting for about 19% of domestic apparel sales[20] - Outlet store sales (in RMB) increased by approximately 3% (due to new store openings), while comparable store sales decreased by approximately 5%[21] - As of period-end, there were approximately 810 domestic apparel product retail points, with 132 directly operated by the Group (including 37 outlet stores and 3 "Goldlion 3388" cultural lifestyle stores)[21] - The "Goldlion 3388" cultural lifestyle stores recorded an operating loss of approximately HKD 8,931 thousands[21] - E-commerce business sales (in RMB) remained flat year-on-year, accounting for about 30% of domestic apparel sales[21] - Group customization business sales (in RMB) increased by approximately 80% year-on-year[21] - Income from operating rights was HKD 40,356 thousands, an approximate 4% year-on-year increase[21] Singapore Market - Apparel business sales were HKD 18,535 thousands, a 5% year-on-year increase, but comparable store sales, excluding new store openings, decreased by 2%[22] - Operates 5 Goldlion brand boutiques and 6 counters[22] - Gross profit margin was 54%, slightly lower than 55% in the prior period, due to higher discounts needed to stimulate sales[22] - Inventory impairment provision was HKD 236 thousands, lower than HKD 1,218 thousands in the prior year[22] - Recorded a loss of HKD 2,337 thousands, higher than the prior year's loss of HKD 1,482 thousands, mainly impacted by new store lease and renovation impairment provisions[22] Property Investment and Development - The investment property portfolio's period-end value was approximately HKD 2,641,849 thousands, lower than HKD 2,686,658 thousands at the end of last year, primarily due to valuation declines and a weaker RMB exchange rate[23][24] - Fair value loss on investment properties was HKD 19,818 thousands, a year-on-year decrease, mainly from Mainland China properties (especially Guangzhou "Goldlion Digital Network Tower") and Hong Kong properties[24] - Total rental and property management fee income decreased by approximately 3% year-on-year, mainly due to an increase in vacant units[24] - Guangzhou "Goldlion Digital Network Tower" occupancy rate was approximately 81%, lower than 83% last year, with rental and property management fee income (in RMB) decreasing by approximately 4%[24] - Rental and property management fee income (in RMB) for Guangzhou Yuancun property increased by approximately 3%, and Shenyang "Goldlion Commercial Building" increased by 8%[24] - Shatin "Goldlion Group Centre" rental and property management fee income decreased by approximately 9% year-on-year, with an occupancy rate of approximately 89%; To Kwa Wan Sunbeam Street No. 3 property income increased by approximately 4%[24] - Sales of Meixian "Goldlion Garden" project were sluggish, with only HKD 28,334 thousands in property sales revenue and HKD 7,255 thousands in gross profit recognized, leaving approximately 668 units for sale[24] - The new energy company (photovoltaic business) completed approximately HKD 9,071 thousands in project investments in the first half, recording HKD 380 thousands in electricity sales revenue and a slight profit[24] Outlook - The domestic macroeconomic environment is expected to remain unstable, with weak consumer confidence and market momentum, indicating a very challenging operating outlook for the second half of 2024[25] - The Group will continue to enhance product quality, self-operated retail capabilities, and optimize sales channels for its domestic apparel business, while promoting brand concepts (e.g., building the Meizhou Brand Memorial Hall)[25] - The Singapore apparel business will strengthen its sales network to ensure continuous development[25] - The property investment business will improve leasing conditions for "Goldlion Digital Network Tower" and other properties, reduce vacancies, and market the remaining units of Meixian "Goldlion Garden" according to market conditions[26] Financial Position - The Group's cash and bank balances were approximately HKD 1,076,271 thousands, a decrease of HKD 12,530 thousands from the end of last year[27] - Net cash inflow from operating activities was HKD 77,377 thousands during the period, but cash decreased due to dividend payments, additions to fixed assets, lease payments, and exchange rate fluctuations[27] - The Group has no bank loans or overdrafts, resulting in a zero debt-to-asset ratio[27] - Current assets were HKD 2,196,920 thousands, current liabilities were HKD 396,327 thousands, and the current ratio was 5.5[27] - There are no significant contingent liabilities; the Meixian "Goldlion Garden" project has authorized but uncontracted and contracted but unprovided property development expenditures[27] - Mortgage loan guarantees of HKD 14,652 thousands were provided for some property buyers, with the Board believing the net realizable value of the related properties is sufficient for repayment[27] - Foreign exchange risk does not constitute a significant risk, but exchange rate fluctuations will continue to be monitored[27] Human Resources - As of June 30, 2024, the Group employed approximately 1,740 staff members[28] - Staff costs (including directors' emoluments) amounted to HKD 111,862 thousands[28] - The Group ensures competitive remuneration packages for employees and provides other benefits and training[28] Other Information This section provides supplementary information on share transfer registration suspension, share dealings, corporate governance practices, audit committee, financial information review, and information dissemination Suspension of Share Transfer Registration - To ascertain the right to receive the proposed dividend, the Company will suspend share transfer registration on September 5 and September 6, 2024[29] - To be eligible for the interim dividend, all transfer documents must be lodged with the share registrar by 4:30 p.m. on September 4, 2024[29] Purchase, Sale or Redemption of Shares - Neither the Company nor any of its subsidiaries redeemed, purchased, or sold any of the Company's shares during the period[30] Corporate Governance - The Company complied with the Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited throughout the review period[31] - Mr. Tsang Chi Ming serves concurrently as Chairman and Chief Executive Officer, an arrangement the Board believes provides more effective strategic planning and decision-making efficiency[31] - All Directors complied with the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules when dealing in the Company's securities[31] Audit Committee - The Audit Committee is responsible for reviewing and monitoring the Group's financial reporting process, risk management, and internal control systems[32] - The Committee comprises four members: Independent Non-executive Directors Mr. Li Ka Fai (Chairman), Dr. Liu Yu Hsin, and Ms. Law Wing Sze, and Non-executive Director Mr. Ng Ming Wah[32] Review of Financial Information - The Audit Committee has reviewed the Group's unaudited interim financial information for the six months ended June 30, 2024[33] - External auditor PricewaterhouseCoopers has reviewed this interim financial information in accordance with Hong Kong Standard on Review Engagements 2410[33] Information on Company and HKEX Websites - This interim results announcement has been published on the Company's website (www.goldlion.com) and the HKEX website (www.hkexnews.hk)[35](index=35&type=chunk) - The 2024 interim report will be dispatched to shareholders and published on the aforementioned websites in due course[35] Board of Directors - The Board of Directors comprises Executive Director Mr. Tsang Chi Ming, Non-executive Director Mr. Ng Ming Wah, and Independent Non-executive Directors Dr. Liu Yu Hsin, Mr. Li Ka Fai, and Ms. Law Wing Sze[36]