Revenue Performance - The consolidated revenue for the six months ended June 30, 2024, was HK$5,099.9 million, a decrease of 6.3% from HK$5,444.3 million in the same period of 2023[6]. - Clarks business contributed 85.9% of the overall revenue, with revenue decreasing by 6.2% to HK$4,378.5 million compared to HK$4,670.0 million in 2023[6]. - Bossini business accounted for 5.2% of total revenue, with a revenue decline of 11.4% to HK$267.2 million from HK$301.5 million in the previous year[4]. - Revenue from multi-brand apparel and footwear segment decreased by 6.5% to HK$4,842.3 million from HK$5,179.2 million in the previous year[3]. - Online sales channels for Clarks saw a significant decline of 16.8%, contributing HK$573.6 million to total revenue[4]. - The total revenue from Bossini's direct-operated stores decreased by 7.5% to HK$244.5 million, while online sales dropped by 68.5%[4]. - The Group's performance was impacted by weak consumer spending due to high inflation and interest rates in European and American markets[6]. - The decrease in net profit was attributed to a reduction in gross profit by HK$118.9 million due to revenue decline and a decrease in share of profits from associates and joint ventures by HK$129.0 million[15]. - For the six months ended June 30, 2024, the net profit attributable to equity holders decreased to HK$112.8 million from HK$131.9 million in 2023, a decline of HK$19.1 million[15]. Profitability and Margins - Gross profit for the Group was HK$2,372.1 million, down 4.8% from HK$2,491.0 million in the same period last year[8]. - The overall gross profit margin increased slightly to 46.5% from 45.8% in 2023, driven by improved cost control in Clarks business[8]. - Clarks business's gross profit margin rose by 1.0 percentage points to 48.6% compared to 47.6% in 2023, attributed to effective control of product and logistics costs[9]. - Bossini's gross profit margin decreased by 3.7 percentage points to 49.4% compared to 53.1% in the corresponding period in 2023, primarily due to increased discounts in retail stores in Mainland China to clear aged stocks[10]. - Adjusted EBITDA increased by HK$42.6 million or 8.6% to HK$536.9 million for the six months ended June 30, 2024, primarily due to reduced operating expenses from business restructuring and cost control measures[18]. Expenses and Cost Management - Selling and distribution expenses decreased by HK$156.3 million to HK$1,794.9 million compared to HK$1,951.2 million in the corresponding period in 2023, attributed to better cost management and closure of inefficient retail stores[10]. - Administrative expenses increased to HK$791.7 million from HK$775.7 million in the corresponding period in 2023, mainly due to one-off restructuring expenses of HK$64.2 million[10]. - Finance costs – net for the period amounted to HK$71.9 million, up from HK$62.4 million in the corresponding period in 2023, primarily due to increased interest expenses on lease liabilities[11]. - Staff costs, including Directors' remuneration, amounted to HK$1,096.4 million for the six months ended June 30, 2024, slightly up from HK$1,093.2 million in the corresponding period of 2023[35]. Asset and Liability Management - Total non-current assets increased from HK$8,751.0 million as of December 31, 2023, to HK$8,881.8 million as of June 30, 2024, primarily due to increased interests in associates and joint ventures[28]. - Net current assets increased by HK$83.7 million or 3.9% compared to December 31, 2023, mainly due to a decrease in trade payables and an increase in cash and cash equivalents[28]. - The Group's total liabilities decreased to HK$1,899,888,000 as of June 30, 2024, from HK$2,057,262,000 as of December 31, 2023[126]. - The Group's banking facilities increased to approximately HK$2,700.6 million as of June 30, 2024, with HK$1,190.2 million utilized[29]. - The current ratio remained stable at about 1.6 as of June 30, 2024, consistent with December 31, 2023[29]. - The Group's gearing ratio was approximately 0 as of June 30, 2024, indicating a very healthy liquidity position[29]. Strategic Initiatives and Market Focus - The Group announced a joint venture with LionRock Capital to operate Haglöfs in Greater China, expanding its consumer brand portfolio[22]. - Clarks continues to implement the "China for China" strategy, developing products specifically for Chinese consumers[19]. - The Group is focusing on the new brand "bossini.X," integrating cycling elements and upgrading sports fabrics for professional sportswear[20]. - The Group is restructuring Clarks to improve operational efficiency and has optimized its product mix while expanding wholesale business in European and American markets[41][42]. - In the Greater China market, the Group is focusing on enhancing shop efficiency and implementing the 'China for China' strategy to develop products tailored for Chinese consumers[41][42]. Shareholder and Governance Information - The Company complied with the Corporate Governance Code during the six months ended 30 June 2024, except for the separation of the roles of chairman and chief executive officer[199]. - Mr. Li Ning holds both the positions of chairman and chief executive officer, which the Board believes enables more effective business planning[200]. - More than one-third of the Board comprises independent non-executive Directors, ensuring a balance of power and authority[200]. - The total shareholding structure indicates that Mr. Li Chun and his associates control approximately 60.39% of the company through various entities[179]. Cash Flow and Financial Position - The Group's net cash outflow from operating activities was HK$78.7 million, significantly improved from HK$416.9 million in the corresponding period of 2023[28]. - Total cash and bank balances, including restricted balances, increased to HK$1,644.7 million as of June 30, 2024, from HK$1,471.9 million as of December 31, 2023[29]. - For the six months ended June 30, 2024, net cash used in operating activities was HK$78,700,000, a significant improvement from HK$416,888,000 in the same period of 2023[66]. - Cash flows used in investing activities totaled HK$164,886,000 for the first half of 2024, compared to HK$291,378,000 in the prior year, indicating a reduction in investment outflows[66]. - Net cash flows generated from financing activities were HK$373,503,000 in the first half of 2024, a turnaround from a cash outflow of HK$908,630,000 in the same period of 2023[68]. Employee and Share Option Information - The Group employed approximately 5,300 full-time employees as of June 30, 2024, down from 5,400 as of December 31, 2023[35]. - The total number of options exercised during the period includes 1,200,000 by Ms. Lyu Hong and 600,000 each by Mr. Li Qing and Mr. Wang Yan[194]. - The total options outstanding as of June 30, 2024, reflect the company's commitment to incentivizing key personnel through equity participation[194]. - The fair value of share options granted during the six months ended 30 June 2024 was approximately HK$45,046,000[197].
非凡领越(00933) - 2024 - 中期财报