Financial Performance - Revenue for the six months ended September 30, 2020, was HK$90,386,000, a decrease of 35.5% compared to HK$140,918,000 in the same period of 2019[8]. - Gross profit for the period was HK$44,431,000, down 50.2% from HK$89,350,000 year-on-year[8]. - Loss for the period amounted to HK$17,488,000, a significant reduction from a loss of HK$56,053,000 in the previous year, indicating an improvement of 68.8%[8]. - Basic and diluted loss per share was 10.0 cents, compared to 33.4 cents in the same period last year[8]. - Total comprehensive income for the period was a loss of HK$14,432,000, compared to a loss of HK$62,714,000 in the prior year, reflecting a 77.0% improvement[12]. - Other net income for the period was HK$15,110,000, a turnaround from a net loss of HK$6,816,000 in the previous year[8]. - Loss before taxation for the six months ended 30 September 2020 was $16,568,000, compared to a loss of $55,345,000 for the same period in 2019[81]. Cost Management - Distribution costs decreased to HK$42,102,000 from HK$86,557,000, a reduction of 51.5%[8]. - Administrative expenses were reduced to HK$30,222,000 from HK$38,913,000, a decrease of 22.2%[8]. - Finance costs decreased to HK$1,570,000 from HK$2,452,000, a reduction of 36.0%[8]. - The Group recognized a government subsidy income of $10,120,000 during the period, aimed at retaining employees[5]. - The salaries and short-term benefits for key management personnel during the period were $2,937,000, down from $3,948,000 in 2019[100]. Asset and Equity Changes - Non-current assets decreased from HK$453,291,000 to HK$441,223,000, a decline of approximately 2.37%[18]. - Current assets decreased from HK$271,841,000 to HK$247,159,000, a decline of approximately 9.06%[18]. - Total equity attributable to equity shareholders decreased from HK$538,095,000 to HK$524,583,000, a decline of approximately 2.52%[24]. - Cash and cash equivalents decreased from HK$153,496,000 to HK$137,943,000, a decline of approximately 10.14%[18]. - The company’s net current assets decreased from HK$152,797,000 to HK$141,300,000, a decline of approximately 7.56%[18]. - The Group's net assets as of 30 September 2020 were HK$543,365,000, compared to HK$557,834,000 as of 31 March 2020[116]. Revenue by Segment - For the six months ended September 30, 2020, the revenue from external customers for garment sales was $63,724,000, a decrease of 39.7% compared to $105,533,000 in the same period of 2019[44]. - The licensing of trademarks segment reported revenue of $9,769,000 for the six months ended September 30, 2020, down from $12,492,000 in 2019, reflecting a decline of 21.8%[48]. - The printing and related services segment generated revenue of $15,616,000 for the six months ended September 30, 2020, compared to $17,756,000 in the same period of 2019, a decrease of 12.1%[48]. - The property rental segment's revenue was $4,651,000 for the six months ended September 30, 2020, down from $6,461,000 in 2019, representing a decline of 27.9%[48]. Cash Flow and Financing - Cash generated from operations for the six months ended September 30, 2020, was $10,804,000, compared to a cash used of $(11,785,000) in 2019[29]. - Net cash generated from operating activities was $10,396,000, a significant improvement from $(11,623,000) in the previous year[29]. - Net cash used in financing activities was $(32,867,000), slightly higher than $(32,601,000) in 2019[29]. - Cash and cash equivalents at the end of the period were $127,164,000, down from $231,329,000 in the previous year[29]. - The net decrease in cash and cash equivalents for the period was $(19,684,000), compared to $(82,216,000) in 2019[29]. Operational Challenges and Outlook - The management anticipates a challenging operating environment in the second half of the year due to the pandemic and Sino-US relationship uncertainties, emphasizing the importance of cash management and cost control[112]. - The Group's garment sales division typically experiences higher sales in the second half of the year due to increased demand during the holiday season[66]. Corporate Governance and Compliance - The interim financial report has been reviewed by the Company's Audit Committee, ensuring compliance with relevant regulations[32]. - The company has adopted the same accounting policies as in the previous financial year, with no significant changes noted[32]. - The audit committee has reviewed the accounting principles and practices adopted by the Group and the unaudited interim financial statements for the six months ended September 30, 2020[125]. - The company has complied with the Code on Corporate Governance Practices throughout the six months ended September 30, 2020, except for non-executive directors not being appointed for a specific term[125]. Employee and Director Information - As of September 30, 2020, the Group had approximately 415 employees and offers competitive remuneration packages, including medical subsidies and retirement scheme contributions[117]. - The discretionary bonuses for eligible employees are contingent on the Group's overall performance and individual work performance[117]. - Directors' interests in shares as of September 30, 2020, include a total of 36,791,700 shares held by Chan Family Investment Corporation Limited[120]. - The total number of ordinary shares held by directors includes 8,093,775 corporate interests held by Samuel Chan[120].
YGM TRADING(00375) - 2021 - 中期财报