Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 4,601,843, a decrease from HKD 869,799 in the same period of 2018[5] - Gross profit for the period was HKD 229,986, down from HKD 323,390 year-on-year, reflecting a decline in profitability[5] - The company reported a loss before tax of HKD 108,920, compared to a loss of HKD 16,309 in the previous year[5] - Basic and diluted loss per share was HKD 4.459, significantly higher than HKD 0.775 in the same period last year[6] - Total comprehensive loss for the period was HKD 115,909, compared to a loss of HKD 25,291 in the previous year[6] - The company recorded a loss of HKD 112,273,000 for the six months ended September 30, 2019, indicating financial challenges during this period[16] - The company reported a total loss before tax of HKD 108,920,000 for the period, compared to a loss of HKD 16,309,000 in the same period of the previous year[69] - The group incurred a loss of HKD 112,273,000, significantly higher than the loss of HKD 19,049,000 in the previous year, primarily due to declining sales in the retail market[93] Revenue Breakdown - Total revenue for the six months ended September 30, 2019, was HKD 601,843,000, a decrease from HKD 869,799,000 in the same period of 2018, representing a decline of approximately 30.8%[75] - Revenue from cosmetics amounted to HKD 493,295,000, while revenue from women's fashion was HKD 108,548,000, indicating that cosmetics accounted for approximately 81.9% of total revenue[68] - Revenue from Hong Kong and Macau was HKD 592,946,000, which constituted about 98.5% of total revenue, while revenue from other regions in China was HKD 8,897,000[75] - The cosmetics segment generated revenue of HKD 493,295,000, down 33.0% year-on-year, accounting for 82.0% of total revenue[93] Assets and Liabilities - Non-current assets increased to HKD 638,248 from HKD 425,478 as of March 31, 2019, indicating growth in long-term investments[7] - Current assets totaled HKD 564,777, a slight decrease from HKD 597,373 as of March 31, 2019[7] - The company’s total liabilities increased to HKD 566,498 from HKD 371,503, indicating a rise in financial obligations[9] - As of September 30, 2019, the company's current liabilities exceeded current assets by HKD 1,721,000, raising concerns about liquidity[16] - The company had undrawn borrowing facilities of approximately HKD 69,703,000 as of September 30, 2019, which may support future financial obligations[16] Cash Flow - The company reported a net cash inflow from operating activities of HKD 22,753,000 for the six months ended September 30, 2019, compared to a net outflow of HKD 24,042,000 in the previous year[14] - The net cash outflow from investing activities was HKD 109,684,000, significantly higher than the HKD 6,442,000 recorded in the same period last year[14] - The net cash inflow from financing activities was HKD 64,919,000, a substantial increase from HKD 2,703,000 in the prior year[14] - The cash and cash equivalents decreased by HKD 22,012,000 during the period, ending with HKD 33,462,000 as of September 30, 2019[14] Dividends - The company declared a dividend of HKD 2,518, down from HKD 12,288 in the previous year, reflecting a conservative approach amid losses[6] - The company declared a final dividend of HKD 0.1 per share for the year 2019, totaling HKD 2,518,000, down from HKD 12,288,000 in 2018[82] Accounting Standards - The company adopted new accounting standards, including HKFRS 16 on leases, which may impact future financial reporting[19] - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards and relevant disclosure requirements[16] - The company applied the new Hong Kong Financial Reporting Standard 16 retrospectively, confirming cumulative effects on the initial application date without restating comparative information[42] - The company will measure lease liabilities at the present value of unpaid lease payments as of the lease commencement date[32] Operational Changes - The company is focusing on expanding its product offerings and market presence to drive future growth[6] - The group plans to adjust market strategies and explore e-commerce platforms to drive growth in the cosmetics business[98] - The group has closed 8 underperforming cosmetics stores, reducing the total to 80 stores as of September 30, 2019[95] - The fashion segment reported a loss of HKD 24,036,000, compared to a loss of HKD 13,521,000 in the previous year, with total stores reduced to 81[96] Employee and Shareholder Information - The group employed approximately 1,500 staff as of September 30, 2019, down from about 1,700 staff as of March 31, 2019[105] - The company’s major shareholder, Silver Crown, holds 1,393,347,737 shares, representing 55.34% of the issued share capital[111] - The CEO, Lin Yusen, holds a total of 1,666,263,750 shares, which is 66.17% of the issued share capital[108] Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the reporting period[113] - The audit committee reviewed the unaudited results for the six months ending September 30, 2019[114] - The company has adopted the standard code for securities transactions by directors as per the listing rules[113]
威高国际(01173) - 2020 - 中期财报