Financial Performance - For the six months ended June 30, 2024, the company's revenue decreased by 11% to HKD 265,070,000 compared to HKD 298,437,000 in the same period of 2023[1] - Gross profit for the same period fell by 17% to HKD 129,752,000 from HKD 157,071,000 year-on-year[1] - The loss attributable to the company's owners decreased by 37% to HKD (51,983,000) from HKD (82,366,000) in the previous year[1] - EBITDA improved by 43%, reaching HKD (20,556,000) compared to HKD (35,796,000) in the prior period[1] - The group reported a total loss before tax of HKD 51,676,000 for the six months ended June 30, 2024, compared to a loss of HKD 82,093,000 for the same period in 2023, indicating an improvement of 37.0%[11] - The loss attributable to the group for the six months ended June 30, 2024, was HKD 51,983,000, an improvement from a loss of HKD 82,366,000 in the same period of 2023[11] - The group reported a pre-tax loss of HKD 51,983,000 for the six months ended June 30, 2024, compared to a loss of HKD 82,366,000 for the same period in 2023, reflecting a decrease of approximately 37%[22] Asset and Liability Management - Total current assets dropped to HKD 287,741,000 from HKD 431,712,000, reflecting a reduction in cash and cash equivalents[5] - The company's net assets decreased to HKD 157,203,000 from HKD 206,642,000, indicating a decline in overall equity[6] - The total assets as of June 30, 2024, were HKD 391,190,000, down from HKD 540,153,000 as of December 31, 2023, reflecting a decrease of 27.6%[13] - The total liabilities as of June 30, 2024, were HKD 233,987,000, compared to HKD 333,511,000 as of December 31, 2023, showing a reduction of 29.8%[13] - The group reported accounts receivable of HKD 12,083,000 as of June 30, 2024, down from HKD 21,883,000 as of December 31, 2023, reflecting a decrease of about 45%[24] - The total accounts payable balance was HKD 14,757,000 as of June 30, 2024, significantly reduced from HKD 43,947,000 as of December 31, 2023, indicating a decrease of approximately 66%[26] Inventory and Cash Management - Inventory levels decreased significantly to HKD 94,684,000 from HKD 144,912,000, indicating improved inventory management[5] - The average number of ordinary shares issued increased to 3,322,720,177 for the six months ended June 30, 2024, compared to 2,787,215,358 in 2023, indicating an increase of approximately 19%[22] - As of June 30, 2024, the company had a cash balance of HKD 109 million, down 41% from HKD 185 million at the end of 2023[32] - The group recorded a cash net balance of HKD 109 million, down from HKD 185 million at the end of 2023[45] - The inventory turnover period improved to 118 days from 177 days in December 2023[46] Market and Operational Challenges - The company anticipates facing various uncertainties in the market due to global economic slowdown, impacting future business operations[2] - The company closed unprofitable stores in mainland China, contributing to the reduction in losses[36] - The company anticipates ongoing challenges in the retail market due to competition and high operational costs[52] - In the first half of 2024, Hong Kong's retail market saw a total sales value decline of 7% compared to the same period in 2023, with the apparel category dropping by 10%[42] Strategic Initiatives - The company is actively rebranding with a focus on cycling sports to attract younger consumers in mainland China[2] - The company plans to continue investing in brand transformation and product development while optimizing sales channels[2] - The company is focusing on brand restructuring and product development to attract younger consumers in the mainland China market[52] - The integration of "bossini" and "bossini.X" brands aims to transition from everyday wear to functional light sportswear[52] - The company is optimizing its sales network and increasing sales points for "bossini.X" in suitable locations[52] - The company plans to invest HKD 219 million in expansion and brand restructuring, with HKD 180 million already utilized[51] Employee and Cost Management - The total employee cost for the period was HKD 94 million, down from HKD 110 million in 2023, with full-time employees reduced to 600 from 900[47] - The company emphasizes continuous investment in talent development as a core strategy for innovation and growth[50] Government Support - The group recorded a government grant income of HKD 2,787,000 for the six months ended June 30, 2024, significantly higher than HKD 452,000 in the same period of 2023[15] - The group received government subsidies amounting to HKD 6,000,000 for investments in mainland China, subject to certain conditions[16] Dividend Policy - The group did not declare any interim dividends for the six months ended June 30, 2024, consistent with the previous year[21] - The company does not recommend any interim dividend for the six months ending June 30, 2024[53]
BOSSINI INT'L(00592) - 2024 - 中期业绩