Financial Performance - Revenue for the six months ended September 30, 2021, was HK$161,671,000, a decrease of 26.4% compared to HK$219,650,000 in the same period of 2020[10]. - Gross profit for the period was HK$25,441,000, down from HK$35,955,000, reflecting a gross margin of 15.7%[10]. - The company reported a profit for the period of HK$8,103,000, a significant recovery from a loss of HK$22,808,000 in the previous year[10]. - Earnings per share for the period was HK$0.04, compared to a loss per share of HK$0.11 in the same period last year[10]. - Total comprehensive income for the period was HK$18,974,000, compared to a loss of HK$540,000 in the previous year[16]. - The company reported a profit for the period of $10,686,000 for the six months ended September 30, 2021, compared to a loss of $22,391,000 in the same period of the previous year[30]. - The company’s total comprehensive income for the period was $19,369,000, compared to a total comprehensive loss of $22,808,000 in the previous year[30]. - Profit before taxation for the six months ended 30 September 2021 was $6,891,000, an increase from $5,928,000 in the previous year[72]. - Profit attributable to equity shareholders was HK$8,494,000, a significant turnaround from a loss of HK$22,391,000 in the same period last year[160]. - EBITDA for the period was HK$11,401,000, compared to a loss of HK$17,629,000 in the previous year[160]. Revenue Breakdown - For the six months ended 30 September 2021, the Group's revenue from the manufacture and sale of garments was HK$144,981,000, a decrease of 24.7% compared to HK$192,621,000 in the same period of 2020[46]. - Revenue from the manufacture and sale of textiles was HK$165,000, down 70.5% from HK$55,000,000 in the previous year[46]. - Processing service income for the period was HK$13,502,000, a decrease of 44.4% from HK$24,258,000 in the prior year[46]. - Total revenue for the six months ended 30 September 2021 was HK$161,671,000, a decline of 26.5% compared to HK$219,650,000 in the previous year[46]. - Revenue from external customers for the six months ended September 30, 2021, was HKD 158,648,000, a decrease of 27% from HKD 216,934,000 in 2020[57]. - Revenue from external customers for the six months ended 30 September 2021 was $151,276,000, a decrease of 24.6% compared to $200,801,000 in the same period of 2020[68]. Expenses and Costs - Administrative expenses increased slightly to HK$23,775,000 from HK$23,466,000, indicating stable overhead management[10]. - The company continues to focus on cost management, with selling and distribution expenses at HK$14,903,000, compared to HK$18,508,000 in the previous year[10]. - The company reported a loss from operations of HK$14,757,000, an increase of 59% compared to a loss of HK$9,273,000 in the previous year[160]. - Operational costs in Bangladesh increased significantly due to high inflation and government-mandated wage increases[162]. Assets and Liabilities - Total assets as of September 30, 2021, amounted to $1,171,307,000, an increase from $1,151,846,000 as of March 31, 2021, representing a growth of approximately 1.5%[22]. - Net current assets decreased to $302,388,000 from $316,083,000, reflecting a decline of about 4.3%[22]. - Total equity attributable to equity shareholders increased to $1,134,410,000 from $1,113,383,000, marking a rise of about 1.9%[22]. - The company’s current liabilities increased to $67,283,000 from $53,321,000, which is an increase of approximately 26.2%[22]. - The company’s non-current liabilities rose to $36,897,000 from $38,463,000, showing a decrease of about 4.1%[22]. - Reportable segment liabilities increased to HKD 96,818,000 from HKD 82,536,000 in the previous year[57]. Cash Flow and Investments - Cash and cash equivalents at the end of the period were $261,029,000, down from $274,059,000 at the end of the previous year, indicating a decrease of approximately 4.8%[35]. - The company generated net cash from operating activities of $(393,000) for the six months ended September 30, 2021, compared to $290,000 in the previous year[35]. - The company’s cash used in investing activities was $(1,002,000) for the six months ended September 30, 2021, compared to $(3,092,000) in the previous year, indicating a reduction in cash outflow[35]. - The Group's cash and bank balances were approximately HK$261,029,000, a slight decrease from HK$266,085,000 as of March 31, 2021[168]. - The Group had no short-term or long-term borrowings as of September 30, 2021, maintaining a strong liquidity position[168]. Market Outlook and Strategy - Future outlook includes potential market expansion and new product development strategies to enhance revenue streams[10]. - The company decided to withdraw its investment in Myanmar due to adverse effects from the Covid-19 pandemic and political unrest, while maintaining it as a manufacturing source[163]. - The China operation recorded positive results, benefiting from a stable manufacturing environment that attracted orders back to the factory[164]. - The Group anticipates challenges in profitability for the remainder of the year due to rising cotton prices and unrest in Ethiopia[168]. Shareholder Information - The Board resolved not to declare an interim dividend for the six months ended 30 September 2021, consistent with the previous year[159]. - The Company has been notified of substantial shareholders holding 5% or more of the ordinary shares, including Guangzhou Textiles Industry & Trade Holdings Ltd. with 17,806,000 shares, representing 8.61% of the issued ordinary shares[196]. - No purchases, sales, or redemptions of the Company's listed securities were made by the Company or its subsidiaries during the period ended September 30, 2021[200]. Compliance and Governance - The interim financial report is unaudited but has been reviewed by the Company's Audit Committee, ensuring compliance with relevant accounting standards[41]. - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period, maintaining consistency in financial reporting[42]. - The financial statements for the year ended 31 March 2021 were unqualified, indicating a clean audit opinion from the auditor[41].
长江制衣(00294) - 2022 - 中期财报