Financial Performance - The Group reported a turnover of HK$1,177,341,000 for the six months ended September 30, 2020, a decrease of 29% compared to HK$1,652,154,000 in the same period of 2019[12]. - Gross profit for the period was HK$410,050,000, down from HK$681,972,000, reflecting a gross profit margin decline[12]. - The Group incurred a loss attributable to owners of the Company of HK$41,578,000, compared to a profit of HK$41,621,000 in the previous year[12]. - Basic and diluted loss per share was 16.7 HK cents, compared to earnings of 0.6 HK cents per share in the prior period[12]. - The company recorded a net loss for the period of HK$41,578,000, reflecting a significant decline in retained profits to HK$603,952,000[21]. - The Group reported a loss before tax of HK$25,501,000 for 2020, compared to a profit in 2019[24]. - The Group reported a loss before tax of HK$32,293,000 for the period, with unallocated income and expenses netting to HK$23,833,000 and finance costs at HK$28,028,000[41]. - The Group's total revenue from external customers for the six months ended 30 September 2020 was HK$1,627,089,000, with Retail Business contributing HK$1,218,880,000[44]. - The Group's turnover decreased by 28.7% from HK$1,652 million for the six-month period ended 30 September 2019 to HK$1,177 million for the same period in 2020[187]. - The loss attributable to owners of the Company for the period is HK$41.6 million, compared to a profit of HK$1.6 million for the six-month period ended 30 September 2019[187]. - The loss per share attributable to owners of the Company for the period is 16.7 HK cents, compared to earnings per share of 0.6 HK cent for the same period in 2019[187]. Expenses and Costs - Selling and distribution expenses amounted to HK$387,533,000, while administrative expenses were HK$70,669,000[12]. - The Group's finance costs were HK$28,028,000, slightly improved from HK$29,967,000 in the previous year[12]. - Employee benefit expenses totaled HK$217,355, which includes wages, salaries, and other benefits[62]. - The cost of goods sold for the period was HK$748,067, compared to HK$982,603 in the previous year[62]. - The principal portion of lease payments amounted to HK$124,501,000, reflecting ongoing commitments[25]. Assets and Liabilities - As of September 30, 2020, total assets amounted to HK$2,213,824,000, a decrease from HK$2,201,305,000 as of March 31, 2020[16]. - Net current assets were reported at HK$1,078,473,000, compared to HK$1,047,199,000 in the previous period[16]. - Total equity attributable to owners of the company decreased to HK$898,653,000 from HK$900,214,000[21]. - Current liabilities totaled HK$336,750,000, with trade payables and other payables amounting to HK$284,966,000[16]. - The company reported cash and cash equivalents of HK$232,003,000, indicating liquidity management amidst operational challenges[16]. - Interest-bearing bank borrowings decreased to HK$281,617,000, reflecting a strategic focus on reducing debt[17]. - The carrying amount of interest-bearing bank and other borrowings was HK$1,076,438,000 as of September 30, 2020, compared to HK$1,013,761,000 on March 31, 2020[132]. Inventory and Trade Receivables - The company’s finished goods inventory decreased to HK$1,099,114,000 as of September 30, 2020 from HK$1,314,062,000 as of March 31, 2020, indicating a reduction of approximately 16.3%[80]. - Trade receivables as of 30 September 2020 were HK$120,990,000, with an impairment of HK$12,904,000 noted[84]. - The provision for expected credit losses (ECLs) is based on days past due for various customer segments, reflecting a proactive approach to managing credit risk[87]. - The total expected credit losses for the current period are HK$12,904,000, reflecting a significant portion of the gross carrying amount[96]. Strategic Initiatives and Future Outlook - The Company is focusing on strategic initiatives to enhance market presence and operational efficiency moving forward[9]. - Future outlook includes potential market expansion and new product development to drive revenue growth[9]. - The company plans to enhance market expansion efforts and invest in new product development to drive future growth[19]. - Future guidance indicates a cautious outlook, with expectations of gradual recovery in market conditions[19]. - The Group is focusing on enhancing online marketing strategies to capitalize on the global online shopping trend[196]. - The Group plans to continue focusing on market expansion and enhancing service offerings to improve future performance[50]. Impact of COVID-19 - The COVID-19 pandemic has severely impacted the retail industry, particularly in Hong Kong, leading to a significant decline in consumer spending on luxury goods and services[187]. - Despite the challenges, Mainland China's economy has shown signs of recovery, with a quick rebound in consumer spending providing some relief to retailers[187]. - The Group has applied for the Retail Sector Subsidy Scheme and Employment Support Scheme to alleviate operating pressures[192]. - The Group will continue to negotiate with landlords to minimize rental expenses amid the challenging economic climate[192]. Segment Performance - Retail Business segment revenue for the six months ended 30 September 2020 was HK$767,604,000, while Wholesale Business segment revenue was HK$284,968,000, and Other Businesses segment revenue was HK$99,963,000, totaling HK$1,152,535,000[41]. - Revenue from contracts with customers in Mainland China was HK$593,073, representing a significant portion of total revenue[54]. - The turnover of retail businesses in Hong Kong and Macau decreased by 62.0%, with same store sales recording a negative growth of 59.3% during the period[189]. - Retail business in Mainland China accounted for 48.3% of the Group's turnover, with a turnover decrease of 12.9% and same store sales growth of minus 5.2%[192]. - The Group has closed underperforming stores in Hong Kong as part of a strategic reorganization to enhance cost control[192]. - The Group opened 48 new franchised stores in Mainland China, bringing the total to 271 franchised stores by the end of the period[200]. - Retail business in Malaysia experienced a turnover drop of 28.1% due to temporary store closures during the COVID-19 pandemic[196]. Compliance and Governance - The interim results have been reviewed by the Company's audit committee, ensuring compliance and accuracy[9]. - The interim financial report was approved by the board of directors on 18 November 2020[182]. - The Group's finance department is responsible for determining the policies and procedures for fair value measurement of financial instruments[180].
谢瑞麟(00417) - 2021 - 中期财报