Financial Performance - The revenue for the period was approximately HK$3,025.5 million, representing a decrease of 11.1% compared to HK$3,402.7 million in the same period last year[5]. - Profit attributable to equity holders was HK$412.0 million, down 17.9% from approximately HK$501.6 million in the prior year[5]. - Gross profit for the period was HK$540,260, down 14.3% from HK$630,871 in the previous year[28]. - Operating profit decreased to HK$444,630, representing a decline of 21.1% from HK$563,542 in the prior year[28]. - The net profit margin for the period was 13.6%, down from 14.7% in the previous year[69]. - Profit attributable to equity holders for the six months ended September 30, 2019, was HK$412,009,000, a decrease of 17.8% from HK$501,568,000 in the same period of 2018[89]. Expenses and Costs - The cost of sales was approximately HK$2,485.2 million, a decrease of 10.3% from HK$2,771.9 million in the previous year[5]. - Selling and distribution expenses decreased to HK$32.5 million from HK$35.7 million in the previous year[5]. - Administration expenses slightly decreased to HK$91.9 million from HK$95.8 million in the prior year[5]. - Finance costs increased by approximately 79.4% to HK$6.1 million, primarily due to increased interest expenses and exchange losses on bank loans[5]. - Total cost of sales, distribution, and selling expenses, along with general and administrative expenses, amounted to HK$2,609,552, down from HK$2,903,333 in 2018, reflecting a decrease of about 10%[76]. Assets and Liabilities - As of September 30, 2019, total assets increased by 10.7% to HK$5,015.8 million from HK$4,530.2 million as of March 31, 2019, with current assets at HK$3,081.2 million and non-current assets at HK$1,934.6 million[8]. - Total liabilities increased to HK$1,818,667, up 44.2% from HK$1,260,598 as of March 31, 2019[31]. - The Group had bank loans of HK$502.4 million as of September 30, 2019, an increase from HK$300 million on March 31, 2019[13]. - The balance of borrowings included in current liabilities increased to HK$502,427,000 as of September 30, 2019, compared to HK$300,000,000 as of March 31, 2019, marking a 67% increase[119]. Cash Flow and Liquidity - The Group's liquidity position improved, with net cash increasing to HK$336.4 million as of September 30, 2019, compared to HK$274.7 million on March 31, 2019[13]. - Total cash and bank balances reached HK$984.9 million, up from HK$720.9 million, including HK$665.5 million in US dollars and HK$120.9 million in RMB[13]. - Cash generated from operations for the six months ended September 30, 2019, was HK$528,145,000, compared to HK$678,721,000 in the previous year, reflecting a decline of approximately 22.1%[33]. - Net cash inflow from operating activities was HK$529,157,000 for the six months ended September 30, 2019, down from HK$644,685,000 in 2018[33]. Shareholder Information - The interim dividend declared was HK$26 cents per share, compared to HK$32 cents per share in 2018, totaling HK$375,525,000, a decrease of 18.8% from HK$462,855,000[90]. - The company paid dividends totaling HK$361,606,000 during the six months ended September 30, 2019, compared to HK$267,588,000 in the same period of 2018[33]. - Basic earnings per share for the six months ended September 30, 2019, was HK$0.28, down from HK$0.35 in the previous year, reflecting a decline of 20%[89]. Employee and Operational Metrics - The Group employed 5,295 full-time employees as of September 30, 2019, a decrease from 5,688 as of March 31, 2019[19]. - The Group's salaries, bonuses, and allowances for the six months ended September 30, 2019, totaled HK$38,689,000, compared to HK$33,868,000 in the same period of 2018[142]. Market and Sales Performance - Sales of cold resistant fabrics declined by more than 20%, primarily due to customers reducing production volumes of thermal innerwear to manage overstocked inventory[21]. - Sales of fabrics for sportswear grew by more than 30% compared to the corresponding period last year, contributing approximately 11% to total sales, up from 8% in the previous year[21]. - Revenue from the PRC decreased to HK$645,557 from HK$730,565, a decline of about 12% year-over-year[73]. Corporate Governance and Compliance - The company complied with the corporate governance standards as per the CG Code throughout the reporting period[154]. - All current Directors confirmed compliance with the Model Code regarding securities transactions throughout the reporting period[156]. Awards and Recognition - The Company received multiple awards for innovative products, including a lightweight underwear fabric awarded the 2019 First Class Award by CDPA in April 2019[16]. - The Group has been recognized for its environmental efforts, receiving the "EcoChallenger" award in May 2019[15].
互太纺织(01382) - 2020 - 中期财报