Financial Performance - Revenue for the six months ended September 30, 2019, was HK$1,167,795, a decrease of 1.1% compared to HK$1,181,133 for the same period in 2018[3]. - Gross profit for the period was HK$318,194, representing a gross margin of approximately 27.2%[3]. - Profit for the period was HK$60,430, down 5.7% from HK$63,735 in the previous year[4]. - Total comprehensive income for the period was HK$18,968, significantly higher than HK$4,900 in the same period last year[4]. - Earnings per share (basic and diluted) for the period were 10.82 HK cents, compared to 11.22 HK cents in the previous year[4]. - Profit before taxation was HK$77,313, an increase from HK$74,924 in the previous year[3]. - The Group's profit before taxation for the six months ended September 30, 2019, was HK$77,313,000, compared to HK$74,924,000 in the same period of 2018, reflecting a growth of 3.2%[43]. - Net profit attributable to owners of the Company decreased by 3.6% to HK$61.7 million from HK$64.0 million in 2018[104]. Expenses and Costs - Distribution and selling expenses amounted to HK$122,001, compared to HK$113,757 in the same period last year[3]. - Administrative expenses were HK$122,223, slightly higher than HK$116,878 in the previous year[3]. - Finance costs for the period were HK$7,869, compared to HK$2,202 in the same period last year[3]. - The total income tax expense for the six months ended 30 September 2019 was HK$16,883,000, an increase of 53.5% from HK$11,189,000 in the same period of 2018[45]. - The allowance for slow-moving watches was HK$46,248,000 for the six months ended September 30, 2019, compared to HK$10,005,000 in the same period of 2018[43]. - Unallocated corporate expenses for the period included auditor's remuneration and directors' remuneration, totaling HK$6,999,000, up from HK$5,799,000 in 2018[40]. Assets and Liabilities - As of September 30, 2019, total assets less current liabilities amounted to HK$2,349,831,000, an increase from HK$2,215,602,000 as of March 31, 2019[6]. - Net current assets were reported at HK$1,653,052,000, down from HK$1,885,778,000 in the previous period[6]. - The company's non-current assets totaled HK$696,779,000, compared to HK$329,824,000 in the prior audited period[5]. - Total equity attributable to owners of the company was HK$2,110,370,000, a decrease from HK$2,212,733,000[6]. - Current liabilities increased to HK$330,635,000 from HK$192,627,000, indicating a rise in short-term obligations[5]. - The Group's total liabilities increased to HK$570,524,000 as of September 30, 2019, from HK$194,628,000 as of March 31, 2019[42]. Cash Flow and Investments - Net cash from operating activities increased to HK$293,731,000 for the six months ended 30 September 2019, compared to HK$177,442,000 in the same period of 2018, representing a growth of 65.5%[12]. - Net cash used in investing activities was HK$11,516,000, a significant increase from HK$2,797,000 in the previous year[12]. - Net cash used in financing activities rose to HK$227,683,000, compared to HK$133,476,000 in the prior period, indicating a 70.7% increase[13]. - Cash and cash equivalents at the end of the period amounted to HK$1,117,693,000, up from HK$1,094,210,000 in the previous year, showing a growth of 2.2%[13]. - The Group incurred expenditure of HK$36,813,000 for property, plant, and equipment acquisition, a significant increase from HK$7,383,000 in the same period last year[55]. Dividends and Shareholder Returns - The company proposed an interim special dividend of HK$49,621,000 for 2020, indicating a commitment to returning value to shareholders[8]. - The company declared an interim dividend of 2.8 HK cents per share, totaling HK$15,970,000, which remained unchanged from the previous year[48]. - A special dividend of 8.7 HK cents per share, totaling HK$49,621,000, was also declared for the six months ended 30 September 2019, consistent with the previous year's special dividend[50]. - The company approved a final dividend of 8.0 HK cents per share, totaling HK$45,629,000, for the year ended 31 March 2019, slightly lower than the previous year's total of HK$45,649,000[47]. Accounting Policies and Standards - The application of new accounting standards did not have a material impact on the Group's financial positions and performance for the current and prior periods[14]. - The Group applied HKFRS 16 for the first time, superseding HKAS 17 "Leases" in the current interim period[22]. - The Group recognized right-of-use assets at the commencement date of the lease, measured at cost, less accumulated depreciation and impairment losses[23]. - Lease payments for short-term leases amounting to HK$3,033,000 are recognized as expenses on a straight-line basis over the lease term[22]. - The Group's transition to HKFRS 16 resulted in significant changes in accounting policies affecting the financial statements[36]. Market and Operational Insights - The Group operates 61 retail and wholesale points in the Greater China region as of 30 September 2019, with 46 in China, 11 in Hong Kong, 3 in Taiwan, and 1 in Macau[105]. - Same-store sales growth in China achieved 11% during the Period[106]. - The Group's strong positioning in the high-end luxury market contributed to maintaining profitability despite challenging conditions[104]. - The Group aims to strengthen its foothold and seek greater presence in the Chinese market going forward[106]. - The Group's overall inventory level decreased by 14.5% to HK$704.2 million as of September 30, 2019, from approximately HK$823.7 million as of March 31, 2019[108]. Governance and Corporate Structure - The Company has adhered to the Corporate Governance Code throughout the six months ended September 30, 2019, with some deviations explained, including the appointment of non-executive directors not for a specific term[124]. - The Board of Directors consists of both executive and independent non-executive directors, ensuring a diverse governance structure[137]. - The Group invests significant resources in employee training programs to enhance service quality for customers[121].
东方表行集团(00398) - 2020 - 中期财报