Revenue and Profitability - Revenue for the six months ended September 30, 2020, was HK$391,565,000, a decrease of 27.6% compared to HK$541,184,000 in 2019[14]. - Gross profit for the same period was HK$21,056,000, down 44.0% from HK$37,592,000 in 2019[14]. - Profit attributable to equity holders of the Company was HK$65,564,000, compared to a loss of HK$32,382,000 in 2019[14]. - Basic earnings per share for the period was HK$9.70, recovering from a loss of HK$4.70 in the same period last year[14]. - Profit before tax for the period was HK$88,113,000, compared to a loss of HK$48,976,000 in 2019[19]. - The company reported a profit of HK$58,138,000 for the six months ended September 30, 2020, compared to a loss of HK$33,475,000 in the same period last year, indicating a significant turnaround[30]. - Total comprehensive income for the period was HK$82,820,000, a substantial increase from HK$872,000 in the prior year[32]. - The company reported a retained profit of HK$822,021,000 as of September 30, 2020, reflecting a stable financial position[44]. - The Group reported a net profit attributable to equity holders of approximately HK$66 million for the period, a significant recovery from a net loss of approximately HK$32 million in 2019[170][173]. Dividends - Proposed interim and special dividends per share are 1.5 HK cents and 0.7 HK cents, respectively, with total dividends per share increasing by 10% to 2.2 HK cents[14]. - The interim dividend proposed is HK1.5 cents per ordinary share, compared to no interim dividend in the same period of 2019[121]. - Special dividends proposed are HK0.7 cent per ordinary share, down from HK2.0 cents in the previous year[121]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2020, were approximately HK$418,000,000[13]. - The company reported net cash flows used in operating activities were HK$2,813,000, an improvement from HK$17,840,000 in the previous year[56]. - The Group's financial position reflects a significant decrease in cash and cash equivalents compared to the previous year, indicating potential liquidity challenges[61]. - The Group maintained strong liquidity with net cash of approximately HK$418 million as of September 30, 2020, compared to HK$444 million on March 31, 2020[175]. Assets and Liabilities - Total assets as of September 30, 2020, amounted to HK$1,602,799,000, an increase from HK$1,527,591,000 as of March 31, 2020[87]. - Total liabilities increased to HK$355,254,000 from HK$348,954,000, indicating a slight rise in financial obligations[87]. - Current assets decreased to HK$775,938,000 from HK$827,252,000, primarily due to a reduction in inventories[34]. - Current liabilities decreased to HK$256,436,000 from HK$289,429,000, indicating improved financial management[34]. - The Group's accounts receivable as of 30 September 2020 amounted to HK$144,199,000, an increase from HK$137,407,000 as of 31 March 2020[129]. Operational Performance - The Group's production capacity was around 6.3 million pairs of shoes, with an 83.8% utilization rate, down from 90.4% in 2019[186]. - The Group operates two core manufacturing bases in southern Vietnam and Cambodia, equipped with R&D facilities, and holds a 40% interest in an associate company in central Vietnam[185]. - The Group's strategy focused on higher-value products, resulting in a 10.9% increase in average selling price despite the overall sales decline[165]. - The Group has taken measures to control costs and enhance working capital to maintain resilience amid the ongoing uncertainty from the COVID-19 pandemic[184]. Market and Segment Performance - Segment revenue from the manufacturing and sale of footwear products was HK$391,565,000, down from HK$541,184,000 in the same period of 2019, showing a decline of approximately 28%[80]. - The total revenue for the period was HK$391,565,000, down 27.7% from HK$541,184,000 in 2019, with notable declines in all geographical segments, particularly in Europe and Asia[90]. - European markets contributed 33.6% to total turnover, an increase from 31.1% in 2019, while turnover from the US decreased to 12.9% from 15.8% in 2019[192]. - Major customers, including Asics, Clarks, Timberland, Dr. Martens, and Wolverine, collectively contributed 93.3% of total turnover, an increase from 92.5% in 2019[194]. Cost Management - The gross profit margin declined to approximately 5.4% from 6.9% in 2019, impacted by increased material and labor costs[169][172]. - The cost of inventories sold decreased to HK$225,833,000 from HK$295,553,000, reflecting a reduction of 23.5%[97]. - The Group has implemented cost control measures and postponed capital expenditures in response to the COVID-19 pandemic's impact on consumer sentiment and procurement planning[160].
信星集团(01170) - 2021 - 中期财报