Financial Performance - Revenue for the six months ended September 30, 2019, was HK$140,918,000, a decrease of 17% compared to HK$169,398,000 in the same period of 2018[7] - Gross profit for the period was HK$89,350,000, down from HK$111,931,000, reflecting a decline of 20%[7] - Loss from operations was HK$48,225,000, compared to a loss of HK$47,908,000 in the previous year, indicating a slight increase in operational losses[7] - Loss for the period amounted to HK$56,053,000, which is a 27% increase from HK$44,177,000 in the prior year[7] - Basic loss per share was HK$0.334, compared to HK$0.265 in the same period last year, representing a 26% increase in loss per share[7] - Total comprehensive income for the period was a loss of HK$62,714,000, slightly higher than the loss of HK$61,897,000 in the same period of 2018[15] - The Group recorded a loss of HK$56,053,000 for the period, compared to a loss of HK$44,177,000 in 2018, including a deferred tax asset write-off of HK$5,219,000[128] Cost Management - Distribution costs decreased to HK$86,557,000 from HK$111,201,000, a reduction of 22% year-on-year, indicating improved cost management[7] - Administrative expenses decreased to HK$38,913,000 from HK$41,314,000, reflecting a 6% reduction in overhead costs[7] - Total operating expenses reduced by 14.8% to HK$130,759,000, down from HK$153,448,000 in 2018[128] Assets and Liabilities - Total assets less current liabilities decreased to HK$658,752,000 from HK$706,075,000, representing a decline of approximately 6.7%[22] - Net current assets decreased significantly to HK$103,865,000 from HK$256,568,000, a drop of about 59.6%[22] - Total equity attributable to equity shareholders decreased to HK$587,135,000 from HK$682,314,000, a decline of about 13.9%[25] - The Group's net assets as of 30 September 2019 were HK$608,561,000, down from HK$704,568,000 as of 31 March 2019[140] Cash Flow - Cash and cash equivalents decreased to HK$238,100,000 from HK$321,901,000, reflecting a reduction of approximately 26%[22] - Cash used in operating activities was HK$44,228,000, compared to HK$31,172,000 in the previous year, representing an increase of approximately 41.9%[29] - The net decrease in cash and cash equivalents was (82,216) million HKD, with cash and cash equivalents at the beginning of the period being 315,124 million HKD[33] - Cash and cash equivalents in the consolidated statement of financial position were $238,100,000 as of September 30, 2019, compared to $321,901,000 as of March 31, 2019[97] Accounting Standards - The Group adopted HKFRS 16 on April 1, 2019, using the modified retrospective approach, which affects the financial reporting but does not restate comparative information[9] - HKFRS 16, Leases, has been adopted from 1 April 2019, introducing a single accounting model for lessees[41] - The Group has adopted the same accounting policies as in the annual financial statements for the year ended 31 March 2019, except for changes expected to be reflected in the upcoming annual financial statements[40] - The adoption of HKFRS 16 did not have a significant impact on the Group's financial statements[54] Dividends - The company paid dividends of HK$33,173,000 in respect of the previous year, which is a decrease from HK$82,932,000[25] - An interim dividend of 10.0 HK cents per ordinary share has been recommended, down from 20.0 HK cents in 2018[129] - The final dividend for the year ended March 31, 2019, was 20.0 HK cents per ordinary share, amounting to $33,173,000, approved on September 18, 2019[86] Segment Performance - The Group reported segment revenue from external customers for the six months ended September 30, 2019, of $105,533,000, down from $129,436,000 in the same period of 2018[63] - For the twelve months ended September 30, 2019, the sales of the garments division reported revenue of $257,457,000, a decrease from $345,231,000 in the previous year[69] - The Group's property rental segment generated revenue of $6,461,000 for the six months ended September 30, 2019, down from $10,904,000 in the same period of 2018[63] Inventory and Receivables - The net write-down of inventories during the period was $1,464,000, up from $1,243,000 in 2018, due to changes in consumer preferences affecting the estimated realizable value of garments[93] - As of September 30, 2019, trade receivables, net of loss allowance, amounted to $22,342,000, down from $25,690,000 as of March 31, 2019[95] Corporate Governance - The audit committee, comprising four independent non-executive directors, reviewed the unaudited interim financial statements for the six months ended September 30, 2019[158] - The company has complied with the Code on Corporate Governance Practices throughout the six months ended September 30, 2019, except for the non-executive directors not being appointed for a specific term[159] - All directors confirmed compliance with the required standards for securities transactions throughout the review period[160]
YGM TRADING(00375) - 2020 - 中期财报