Financial Performance - Revenue for the six months ended September 30, 2019, was HK$290,966,000, a decrease of 8.5% from HK$317,796,000 in the same period of 2018[9] - Gross profit for the period was HK$45,573,000, down from HK$57,692,000, reflecting a gross profit margin decrease[9] - Loss for the period amounted to HK$18,848,000, compared to a profit of HK$977,000 in the previous year[9] - Basic and diluted loss per share was HK$0.09, compared to earnings of HK$0.01 per share in the prior year[9] - Total comprehensive loss for the period was HK$58,133,000, slightly down from HK$58,826,000 in the same period last year[15] - Other comprehensive income for the period was a loss of HK$39,285,000, compared to a loss of HK$57,849,000 in the previous year[15] - The company reported a loss for the period of HK$38,905, compared to a loss of HK$60,172 in the previous period, showing an improvement[28] - Total comprehensive income for the period was a loss of HK$58,576, compared to a loss of HK$56,546 in the previous period, indicating a slight deterioration[28] - The Group reported an adjusted EBITDA loss of HK$8,180,000 for the six months ended September 30, 2019, compared to a profit of HK$5,179,000 in the same period of 2018[113] - Consolidated profit before taxation was a loss of HK$18,200,000, contrasting with a profit of HK$742,000 in the previous year[113] Assets and Liabilities - As of 30 September 2019, total assets less current liabilities amounted to HK$1,188,299, a decrease from HK$1,254,759 as of 31 March 2019, representing a decline of approximately 5.3%[21] - Net current assets were reported at HK$344,039, down from HK$387,317, indicating a decrease of about 11.1%[21] - The company's net assets stood at HK$1,132,194, a reduction from HK$1,214,745, reflecting a decline of approximately 6.8%[21] - Total equity attributable to equity shareholders decreased to HK$1,133,260 from HK$1,216,646, marking a decline of around 6.9%[21] - Current liabilities increased to HK$137,470 from HK$104,351, which is an increase of approximately 31.7%[21] - The Group's total liabilities for the reportable segments rose to $159,336,000 as of 30 September 2019, up from $108,908,000 as of 31 March 2019[106] - Total liabilities increased to HK$163,507,000 as of September 30, 2019, compared to HK$135,628,000 on April 1, 2019, reflecting a rise of about 20.5%[166] Cash Flow - Net cash used in operating activities for the six months ended 30 September 2019 was HK$32,873,000, compared to HK$25,086,000 in 2018, representing a 31% increase[34] - Net cash generated from investing activities was HK$360,000, a decrease of 77% from HK$1,587,000 in the same period of 2018[34] - Net cash used in financing activities amounted to HK$3,411,000, significantly lower than HK$30,147,000 in 2018, indicating a reduction of 89%[34] - Cash and cash equivalents at the end of the period were HK$286,056,000, an increase of 9% from HK$262,503,000 at the end of the same period in 2018[34] - The Group's cash flow from operating activities reflects a significant increase in cash used, indicating potential operational challenges[34] - The substantial reduction in financing activities cash outflow indicates a strategic shift in the Group's financing approach[34] Accounting Policies and Standards - The company has adopted HKFRS 16 from April 1, 2019, which has impacted the financial reporting but does not restate comparative information[10] - The Group has adopted HKFRS 16 from 1 April 2019, which may impact future financial reporting and comparability[22] - The Group has applied HKFRS 16, Leases, starting from April 1, 2019, with no impact on the opening balance of equity[53] - The Group has chosen not to separate non-lease components from lease components for accounting purposes[60] - The Group's accounting policies include critical judgments and estimates regarding lease terms and liabilities[61] - The changes in accounting policies have not had a material effect on the Group's results and financial position for the current or prior periods[53] Revenue Breakdown - Revenue from garment manufacturing and sales for the six months ended 30 September 2019 was $270,509,000, a decrease of 8.67% from $296,108,000 in the same period of 2018[92] - Revenue from textile manufacturing and sales dropped significantly to $397,000 from $2,643,000 year-on-year, reflecting a decline of 85.03%[92] - Total revenue for the Group for the six months ended 30 September 2019 was $287,914,000, down 8.54% from $314,744,000 in the previous year[91] - Revenue from external customers for the six months ended September 30, 2019, was HK$271,492,000, down from HK$301,370,000 in 2018, representing a decrease of approximately 9.9%[119] - Revenue from Hong Kong customers was HK$19,474,000 for the six months ended September 30, 2019, an increase from HK$16,426,000 in 2018[119] - Revenue from the United Kingdom was HK$35,967,000, down from HK$45,286,000 in the previous year, indicating a decline of approximately 20.5%[119] - Revenue from Italy decreased to HK$51,520,000 from HK$60,716,000, reflecting a decline of about 15.5%[119] Equity and Dividends - The Group did not declare any interim dividends for the period, consistent with the previous year[161] - Proposed dividends were not recorded as of September 30, 2019, compared to HK$24,810,000 as of March 31, 2019, indicating a significant change in dividend policy[167] - The Group's total equity as of September 30, 2019, was HK$1,132,194,000, down from HK$1,214,745,000 as of March 31, 2019, reflecting a decrease of about 6.8%[168] Fair Value Measurements - The fair value of unlisted equity securities was reported at HKD 16,906,000, while non-trading listed equity securities were valued at HKD 2,315,000[179] - The Group's financial instruments measured at fair value are categorized into three levels, with no transfers between levels during the reporting periods[188] - The fair value of forward foreign exchange contracts in Level 2 is determined by discounting the contractual forward price based on prevailing market interest rates[189] - The fair value measurement techniques for Level 3 include adjusted net asset value and market comparable approaches[192] - The Group's policy is to recognize transfers between levels of the fair value hierarchy at the end of the reporting period in which they occur[188] - The carrying amounts of the Group's financial instruments at cost or amortized cost are not materially different from their fair values as of September 30, 2019, and March 31, 2019[200]
长江制衣(00294) - 2020 - 中期财报