Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 232,444,000, an increase of 2.5% compared to HKD 226,736,000 for the same period in 2020[7] - Gross profit decreased to HKD 35,623,000, down 4.4% from HKD 37,244,000 year-on-year[7] - The net loss for the period was HKD 32,334,000, compared to a profit of HKD 239,781,000 in the previous year[8] - Basic and diluted loss per share was HKD 7.1, a significant decrease from earnings of HKD 53.2 per share in the prior period[7] - The company reported a total loss of HKD 32,393,000 before tax for the six months ended September 30, 2021, compared to a profit of HKD 239,759,000 for the same period in 2020[34] - The loss attributable to the company's owners for the six months ended September 30, 2021, was HKD 32,022,000, compared to a profit of HKD 240,142,000 for the same period in 2020[40] - The group recorded a pre-tax loss of approximately HKD 32,400,000, compared to a pre-tax profit of HKD 239,800,000 in the same period last year due to a one-time gain from the sale of a subsidiary[56] Assets and Liabilities - Total assets as of September 30, 2021, were HKD 470,961,000, down from HKD 554,207,000 as of March 31, 2021[10] - The company’s equity attributable to owners decreased to HKD 394,264,000 from HKD 431,618,000, reflecting the impact of the net loss[11] - Trade receivables, net of credit loss provisions, amounted to HKD 53,392,000 as of September 30, 2021, down from HKD 62,699,000 as of March 31, 2021[45] - The company maintained a healthy asset-to-liability ratio of 18.8% as of September 30, 2021, with total bank borrowings of HKD 72,000,000[78] Cash Flow - The net cash used in operating activities for the six months ended September 30, 2021, was HKD (27,647,000), compared to HKD (5,154,000) for the same period in 2020, indicating a significant increase in cash outflow[15] - The net cash used in investing activities was HKD (41,001,000) for the six months ended September 30, 2021, compared to HKD (39,579,000) in the previous year, reflecting ongoing investments in property and equipment[15] - The net cash used in financing activities was HKD (108,086,000), a decrease from HKD (120,984,000) in the same period last year, primarily due to repayments of bank loans[15] - Cash and cash equivalents at the end of the period decreased to HKD 178,035,000 from HKD 372,495,000 in the previous year, showing a decline of approximately 52%[15] Revenue Breakdown - Revenue from garment products in the China market was HKD 137,371,000, while revenue from the United States was HKD 46,751,000, and from Canada was HKD 40,189,000[23] - For the six months ended September 30, 2021, total revenue from external goods sales was HKD 232,444,000, with contributions of HKD 139,367,000 from Asia, HKD 86,940,000 from North America, and HKD 6,137,000 from Europe and others[29] - The company reported a total of HKD 129,528,000 in revenue from garment production and sales for the six months ended September 30, 2021, compared to HKD 146,370,000 in the same period of 2020, indicating a decrease of about 11.5%[25] - The company reported a decrease in revenue from North America, which was HKD 96,357,000 for the six months ended September 30, 2020, compared to HKD 86,940,000 in 2021, representing a decline of approximately 9.8%[29] Operational Highlights - The company has not disclosed any new product developments or market expansion strategies in the current report[22] - The company’s operating segments are categorized into Asia, North America, and Europe, focusing on garment manufacturing and sales[26] - The group recorded a stable revenue of HKD 232,400,000, representing a year-on-year increase of 2.5%[55] - The gross profit margin slightly decreased by 1.1 percentage points due to the temporary suspension of operations at the Vietnam production base from mid-July to the end of September 2021[55] - Distribution expenses increased by 41.1% to HKD 33,200,000 compared to HKD 23,500,000 in the same period last year[55] - Administrative expenses decreased by 25.6% to HKD 36,700,000 from HKD 49,300,000 in the previous year[55] - The group incurred capital expenditures of HKD 41,001,000 for the purchase of properties, plants, and equipment during the reporting period[42] Strategic Focus - The group's strategic focus has shifted to online sales and franchise business to enhance competitiveness amid ongoing COVID-19 challenges[66] - The company is focusing on enhancing its "Betu" brand retail network and exploring online sales channels to improve customer satisfaction and sales[74] - The company has resumed operations at its production facility in Vietnam since late September 2021, with expectations for comprehensive development post-pandemic[75] - The production facility in Zhongshan is leveraging local production advantages to supply high-quality garments with shorter turnaround times[74] Shareholder Information - As of September 30, 2021, major shareholder Corona Investments Limited held 150,059,268 shares, representing 33.27% of the issued shares[94] - Wykeham Capital Asia Value Fund held 44,832,000 shares, accounting for 9.93% of the issued shares[94] - The total number of issued shares as of September 30, 2021, was 451,067,557[97] Dividends - The company did not declare an interim dividend for the six months ended September 30, 2021, compared to an interim dividend of HKD 0.022 per share for the same period in 2020[38] - The company declared a final dividend of HKD 0.015 per share for the year ended March 31, 2021, totaling HKD 6,800,000[85] - The board declared a special dividend of HKD 0.0175 per share related to asset sales, payable on December 10, 2020[85] - A second special dividend of HKD 0.2217 per share was declared on November 27, 2020, related to the sale of a subsidiary, payable on December 23, 2020[85] Governance and Compliance - The company’s financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, ensuring compliance with local regulations[17] - The audit committee reviewed the group's accounting policies and financial reporting matters during the period[102] - The company adhered to all corporate governance codes as per the listing rules during the period[103]
同得仕(集团)(00518) - 2022 - 中期财报