Revenue and Profitability - The Group's revenue for the period was HK$3,162.9 million, representing an increase of approximately 29.0% compared to HK$2,452.7 million in the previous year[13]. - Profit attributable to equity holders decreased to HK$347.7 million, a decline of approximately 7.4% from HK$375.6 million, but increased by approximately 9.3% when excluding a one-time gain of HK$57.5 million from asset disposal[16]. - Revenue for the six months ended September 30, 2021, was HK$3,162,862,000, an increase from HK$2,452,658,000 in the same period of 2020, representing a growth of approximately 28.7%[54]. - Gross profit for the period was HK$462,058,000, compared to HK$429,977,000 in 2020, reflecting an increase of about 7.4%[54]. - Operating profit decreased to HK$374,146,000 from HK$424,297,000, a decline of approximately 11.8%[54]. - Profit for the period attributable to equity holders of the Company was HK$347,662,000, down from HK$375,556,000, indicating a decrease of around 7.4%[54]. - Basic earnings per share decreased to HK$0.25 from HK$0.27, reflecting a 7.4% decline year-over-year[89]. Costs and Expenses - Cost of sales increased to HK$2,700.8 million, up approximately 33.5% from HK$2,022.7 million, driven by higher sales and inflation in raw materials and fuel costs[15]. - Selling and distribution expenses slightly decreased to HK$33.9 million from HK$37.5 million[17]. - Administration expenses decreased to HK$87.7 million from HK$92.3 million[18]. - Finance costs decreased by approximately 52.1% to HK$7.1 million, down from HK$14.9 million, mainly due to a reduction in net exchange loss[19]. - Total cost of sales, distribution and selling expenses, and general and administrative expenses increased to HK$2,822,360,000, up from HK$2,152,517,000, representing a 31.1% increase year-over-year[81]. - Cost of raw materials and consumables used increased significantly to HK$2,385,477,000 from HK$1,778,378,000, a rise of 34.1%[81]. Assets and Liabilities - As of 30 September 2021, the total assets of the Group were HK$5,733.2 million, representing an increase of approximately 10% from HK$5,211.4 million as of 31 March 2021[29][32]. - Total liabilities amounted to HK$2,296,262,000, an increase of 23.6% from HK$1,857,739,000[57]. - The Group's net cash position as of 30 September 2021 was (HK$105.3 million), a decrease from HK$186.7 million as of 31 March 2021, primarily due to increased inventory and accounts receivables[37]. - The Group had bank loans amounting to HK$1,061.9 million as of 30 September 2021, up from HK$645.4 million as of 31 March 2021[37]. - The gearing ratio increased to 35.2% as of 30 September 2021, compared to 23.6% as of 31 March 2021[38]. Cash Flow - The cash generated from operations for the six months ended September 30, 2021, was HK$20,719,000, resulting in a net cash inflow from operating activities of HK$1,387,000[59]. - The net cash outflow from investing activities was HK$111,415,000, primarily due to the purchase of property, plant, and equipment[59]. - The net cash inflow from financing activities was HK$92,829,000, driven by the addition of borrowings amounting to HK$806,246,000[59]. Employee and Operational Metrics - As of September 30, 2021, the Group had 4,932 full-time employees, a slight decrease from 4,933 on March 31, 2021[50]. - Trade receivables turnover days were 59 days, while trade payables turnover days were 48 days[20]. - Inventories turnover days improved to 86 days from 102 days in 2020[74]. - Trade and bills receivables grew significantly to HK$1,188,680,000, a 37.7% increase from HK$863,552,000[56]. Market and Product Development - The Group is engaged in manufacturing and trading high-quality cotton and synthetic knitted fabrics[12]. - The Group plans to increase product variety, including recycled yarn fabrics and bio-based fabrics, while cautiously expanding its customer base without increasing credit risk exposure[52]. - A new factory in Vietnam is under construction, expected to be completed by the end of 2023, demonstrating management's confidence in the Group's business potential[52]. - There was a significant increase in sales to relevant customers, particularly in fabrics for sportswear and lingerie, due to rising consumer sentiment and marketing efforts[50]. Taxation - The Group recorded an income tax expense of approximately HK$35.4 million, with an average effective tax rate of approximately 9.1%, lower than the previous year's 9.4%[28]. - Current income tax expense for Hong Kong profits tax was HK$15,999,000, down from HK$18,630,000, a decrease of 8.8% year-over-year[87]. - Overseas corporate income tax increased to HK$18,146,000 from HK$12,272,000, marking a significant increase of 47.9%[87]. Corporate Governance and Compliance - The audit committee has reviewed the unaudited condensed consolidated results for the six months ended September 30, 2021, in conjunction with the management of the company[170]. - The company has established a remuneration committee responsible for reviewing and determining remuneration packages for directors and senior management, ensuring no director participates in discussions about their own remuneration[171]. - The nomination committee is responsible for making recommendations to the Board on the appointment of directors and planning for Board succession[171].
互太纺织(01382) - 2022 - 中期财报