Financial Performance - Revenue for the six months ended September 30, 2021, was HK$379,373,000, a decrease of 3.1% from HK$391,565,000 in 2020[20]. - Gross loss for the period was HK$12,685,000, compared to a gross profit of HK$21,056,000 in the same period last year[20]. - Profit attributable to equity holders of the Company was a loss of HK$15,462,000, down from a profit of HK$65,564,000 in 2020[20]. - Basic loss per share was HK(2.30), compared to earnings per share of HK$9.70 in the previous year[20]. - Other income and gains for the period were HK$11,516,000, down from HK$125,587,000 in the previous year[20]. - The Company reported a loss before tax of HK$25,377,000, compared to a profit of HK$88,113,000 in the previous year[20]. - For the six months ended September 30, 2021, the company reported a loss of HK$17,438,000 compared to a profit of HK$58,138,000 in the same period of 2020, representing a significant decline[30]. - Total comprehensive income for the period was a loss of HK$7,881,000, compared to a gain of HK$82,820,000 in the previous year[31]. - The total tax expense for the period was HK$7,939,000, a significant decrease from HK$29,975,000 in 2020[99]. - The group reported a loss attributable to equity holders of HK$15,462,000 for the six months ended September 30, 2021, compared to a profit of HK$65,564,000 in the same period of 2020[102]. Cash Flow and Liquidity - Cash and cash equivalents amounted to approximately HK$364,000,000[14]. - Net cash flows from operating activities for the six months ended 30 September 2021 were HK$8,507,000, compared to a net outflow of HK$2,813,000 in the same period of 2020[50]. - Cash and cash equivalents at the end of the period were HK$68,580,000, up from HK$48,278,000 at the end of the same period in 2020[54]. - The Group's cash and bank balances increased to HK$68,580,000 from HK$48,278,000 year-on-year[54]. - The Group's net decrease in cash and cash equivalents for the period was HK$17,003,000, compared to a decrease of HK$30,985,000 in the prior year[51]. - The Group maintained a healthy liquidity position with net cash of approximately HK$364 million as of September 30, 2021[155]. Dividends - Total dividends per share for the period were HK$2.0, a decrease of 9.1% from HK$2.2 in 2020[15]. - The company declared a special final dividend of HK$8,740,000 for the year 2021[40]. - The group declared a special interim dividend of HK2.0 cents per ordinary share for the period, compared to HK0.7 cents in 2020[110]. - Dividends paid during the period totaled HK$18,824,000, compared to HK$13,518,000 in the previous year[51]. Assets and Liabilities - Non-current assets increased to HK$850,919,000 as of September 30, 2021, from HK$836,847,000 as of March 31, 2021[34]. - Current assets decreased to HK$701,279,000 from HK$806,558,000, primarily due to a reduction in accounts receivable[34]. - Total current liabilities decreased to HK$212,776,000 from HK$280,270,000, indicating improved liquidity management[34]. - The company's total equity as of September 30, 2021, was HK$1,230,014,000, a decrease from HK$1,255,252,000 as of March 31, 2021[37]. - Total assets decreased to HK$1,552,198,000 as of September 30, 2021, down from HK$1,643,405,000 as of March 31, 2021[83]. Operational Challenges - The factory in Thuan An, Vietnam, paused production from mid-July 2021 due to a resurgence of COVID-19, impacting revenue and operating results[144]. - The Group's operations were significantly affected by COVID-19 variants across Southeast Asia, particularly impacting the July-to-September quarter[143]. - The production halt in southern Vietnam since July 2021 significantly impacted operations, leading to a high labor-to-revenue ratio[152]. - The Group will remain vigilant regarding challenges related to production continuity and cost factors amid ongoing global uncertainties[164]. Market Performance - Revenue from the United States increased significantly to HK$157,041,000 in 2021 from HK$50,685,000 in 2020, marking a growth of 209.5%[87]. - Revenue from Europe decreased to HK$102,896,000 in 2021 from HK$131,688,000 in 2020, a decline of 22%[87]. - Revenue from Asia dropped to HK$53,568,000 in 2021 from HK$175,122,000 in 2020, a decrease of 69.4%[87]. - Revenue contribution from European markets decreased to 27.1% (2020: 33.6%), while revenue from the US increased significantly to 41.4% (2020: 12.9%), with other markets accounting for 31.5% (2020: 53.5%)[172]. Production and Capacity - The Group operates two core manufacturing bases in southern Vietnam and Cambodia, with a combined production scale of 27 processing lines and an annual capacity of approximately 6.5 million pairs of shoes, achieving a utilization rate of 78.6% during the Period[170][172]. - The southern Vietnam manufacturing site contributed 55.0% to total volume output during the Period, down from 74.3% in 2020, due to production halts caused by COVID-19[178][182]. - The Cambodian manufacturing site contributed 45.0% of output in pairs during the Period, up from 25.7% in 2020, benefiting from redirected orders from southern Vietnam[187][192]. - The Group plans to prudently expand capacity at the Cambodian site as it matures and gains efficiency in manufacturing more sophisticated models[189]. Strategic Initiatives - The Group has actively worked with customers to reschedule order fulfillments and manage inventory shipments during production disruptions[185]. - The Group has discontinued all manufacturing activities in Mainland China and relocated them to other Asian centers[194]. - The Group's asset enhancement program aims to optimize the use of idle properties and generate additional stable income[199]. - The Board anticipates improved operational efficiency and competitiveness due to scaling up and increased automation in the associated company[197].
信星集团(01170) - 2022 - 中期财报