德永佳集团(00321) - 2021 - 中期财报

Revenue and Profitability - Revenue for the six months ended September 30, 2020, was HK$3,407,293, a decrease of 18.8% compared to HK$4,197,328 in 2019[10] - Profit for the period attributable to ordinary equity holders was HK$140,064, representing a decline of 33.8% from HK$211,566 in 2019[10] - Basic and diluted earnings per share decreased to 10.1 HK cents, down from 15.3 HK cents in the previous year[10] - Profit before tax for the period was HK$192,943, compared to HK$255,161 in the previous year, reflecting a decrease of 24.4%[48] - The income tax expense for the period was HK$52,879, an increase from HK$43,595 in the prior year, marking a rise of 21.5%[54] - The gross profit margin was 29.7%, down 2.0 percentage points from 31.7% in the same period last year[112] Comprehensive Income and Dividends - Total comprehensive income for the period attributable to ordinary equity holders was HK$276,102, compared to HK$29,722 in 2019[13] - Interim dividends declared amounted to HK$69,085,000, consistent with the previous period[18] - The interim dividend for the six months ended 30 September 2020 was HK$69,085,000, down from HK$138,170,000 in the same period of 2019, representing a 50% decrease[57] - The interim dividend per ordinary share decreased to 5.0 HK cents from 10.0 HK cents year-over-year[57] Expenses and Cost Management - Selling and distribution expenses decreased to HK$552,200, down 19.0% from HK$680,898 in 2019[10] - Administrative expenses were reduced to HK$332,640, a decrease of 23.0% compared to HK$431,571 in 2019[10] - Finance costs decreased significantly to HK$17,642, down 49.1% from HK$34,654 in 2019[10] - The Group continued to focus on cost reduction to enhance operating profitability amid challenging market conditions[143] Assets and Liabilities - Total non-current assets decreased from HK$2,651,472,000 to HK$2,548,021,000, a decline of approximately 3.9%[15] - Current assets decreased from HK$5,660,860,000 to HK$5,271,534,000, representing a reduction of about 6.9%[15] - Total equity increased from HK$4,930,213,000 to HK$5,217,404,000, marking a growth of approximately 5.8%[18] - Cash and cash equivalents decreased from HK$1,737,012,000 to HK$1,055,710,000, a decline of approximately 39.2%[15] - The ageing analysis of trade payables showed an increase to HK$1,089,829,000 as of 30 September 2020 from HK$708,400,000 as of 31 March 2020, reflecting a significant rise in liabilities[63] Cash Flow and Financial Position - Net cash flows from operating activities for the six months ended September 30, 2020, were HK$563,598, compared to HK$502,878 in 2019[24] - Cash and cash equivalents at the end of the period were HK$1,004,125, down from HK$2,045,039 in the previous year[24] - The current ratio improved to 2.4 as of 30 September 2020, compared to 2.0 as of 31 March 2020[181] - Total bank borrowings decreased to HK$134 million from HK$1,230 million as of 31 March 2020[181] Segment Performance - The Group's operating segments include the production, dyeing, and sale of knitted fabric, yarn, and garments; retailing and distribution of casual apparel and accessories; and a segment for franchise services and property investment[41] - The textile business revenue dropped by 19.0% to HK$2,308 million, representing 67.7% of the group's total turnover[143] - Retail and distribution business sales fell by 18.4% to HK$1,098 million, accounting for 32.2% of the group's total turnover[172] Financial Instruments and Fair Value - The fair value of financial assets at fair value through profit or loss was HK$96,449,000 as of 30 September 2020, down from HK$131,722,000 as of 31 March 2020[93] - The carrying amount of debt instruments at amortised cost was HK$141,795,000 as of 30 September 2020, compared to HK$137,027,000 as of 31 March 2020[93] - The fair values of long-term rental deposits and non-current interest-bearing bank borrowings were calculated by discounting expected future cash flows using current rates for similar instruments[97] Impact of COVID-19 - The adverse market conditions due to COVID-19 led to delays and cancellations of business orders, impacting overall performance[143] - The COVID-19 pandemic has caused a significant slowdown in global economic activities, with interest rates expected to remain low for the next few years[186] - The retail business performance is anticipated to improve in the second half of 2020 as COVID-19 is under control in China[195] Management and Governance - Total compensation paid to key management personnel for the six months ended 30 September 2020 was HK$19,063,000, a decrease from HK$26,292,000 in the same period of 2019[90] - Key management personnel voluntarily waived part of their compensation totaling HK$4,876,800 due to the impact of COVID-19[90] - The Group considers that adequate tax provisions have been made in the financial statements, despite ongoing tax reviews[75] Charitable Activities and Community Engagement - The Group participated in various charitable activities, including donations to educational funds and environmental initiatives[192]