Financial Performance - The turnover for the Review Period decreased by approximately 38.9% to approximately HK$37.4 million, compared to approximately HK$61.2 million for the six months ended 31 October 2019[21]. - Gross profit for the Review Period was approximately HK$17.8 million, down from approximately HK$31.4 million for the same period in 2019[21]. - Loss attributable to owners of the Company was approximately HK$0.7 million for the Review Period, a decrease of approximately HK$11.7 million compared to a net loss of approximately HK$12.4 million for the same period in 2019[21]. - Revenue decreased by approximately HK$23.8 million or 38.9% from approximately HK$61.2 million for the six months ended 31 October 2019 to approximately HK$37.4 million for the Review Period[33]. - Gross profit decreased by approximately HK$13.6 million or 43.3% from approximately HK$31.4 million for the six months ended 31 October 2019 to approximately HK$17.8 million for the Review Period[39]. - The Group recorded a profit before tax of approximately HK$0.7 million for the Review Period, compared to a loss before tax of approximately HK$9.7 million for the same period in 2019[48]. - Total comprehensive income for the period attributable to owners was HK$572,000, a recovery from a comprehensive loss of HK$12,998,000 in the previous year[126]. - The company reported a loss attributable to owners of the Company of HK$693,000 for the six months ended 31 October 2020, significantly improved from a loss of HK$12,376,000 in the same period of 2019[199]. Revenue Breakdown - Revenue from the watches business decreased by approximately HK$24.3 million or 48.5% from approximately HK$50.1 million for the six months ended 31 October 2019 to approximately HK$25.8 million for the Review Period[33]. - Retail segment revenue was HK$24,062,000, down 50.7% from HK$49,040,000 in the previous year[166]. - Wholesale segment revenue decreased to HK$3,546,000, a decline of 129.1% from HK$1,544,000 in the prior year[166]. - Trading segment generated revenue of HK$11,589,000, consistent with HK$11,182,000 from the previous year, showing a slight increase of 3.6%[166]. - The geographical revenue breakdown shows that HK$25,795,000 was generated from Hong Kong and HK$11,589,000 from the PRC for the six months ended October 31, 2020[173]. Cost Management - Selling and distribution expenses decreased by approximately HK$16.2 million or 56.8% from approximately HK$28.5 million for the six months ended 31 October 2019 to approximately HK$12.3 million for the Review Period[41]. - Cost of sales decreased by approximately HK$10.2 million or 34.2% from approximately HK$29.8 million for the six months ended 31 October 2019 to approximately HK$19.6 million for the Review Period[34]. - Administrative expenses decreased by approximately HK$3.4 million or 28.1% from approximately HK$12.1 million to approximately HK$8.7 million during the Review Period[45]. - The total cost of sales, selling and distribution costs, and administrative expenses amounted to HK$40,612,000, a decrease of 42.5% from HK$70,428,000 in 2019[185]. Inventory and Assets - Provision for slow-moving inventories as at 31 October 2020 amounted to approximately HK$19.3 million, down from approximately HK$22.9 million as at 30 April 2020[34]. - Total assets as of 31 October 2020 were HK$185,151,000, a decrease from HK$190,908,000 as of 30 April 2020[130]. - Current assets increased to HK$165,492,000 from HK$162,646,000 as of 30 April 2020[130]. - Total liabilities decreased to HK$157,551,000 from HK$163,880,000 as of 30 April 2020[130]. - Total equity increased to HK$27,600,000 from HK$27,028,000 as of 30 April 2020[130]. Cash Flow and Financing - Net cash generated from operations decreased to HK$1,698,000 in 2020 from HK$2,637,000 in 2019, representing a decline of approximately 35.7%[136]. - The net cash generated from operating activities was HK$180,000 for the six months ended 31 October 2020, down from HK$887,000 in the same period of 2019, a decrease of about 79.7%[136]. - Net cash used in financing activities increased to HK$6,637,000 in 2020 from HK$2,777,000 in 2019, reflecting a rise of approximately 139.5%[136]. - The total cash and cash equivalents at the end of the period decreased to HK$19,535,000 in 2020 from HK$19,799,000 in 2019, a decline of about 1.3%[136]. Corporate Governance - The company has established an Audit Committee comprising three independent non-executive directors[93]. - The company has complied with all corporate governance codes except for two specific provisions regarding the roles of the Chairman and CEO[90]. - The Audit Committee operates under written terms of reference in accordance with the Listing Rules[93]. - The company confirmed compliance with the Model Code governing directors' transactions of listed securities during the Review Period[113]. Shareholder Information - As of October 31, 2020, Mr. Meng holds 600,000,000 shares, representing a 75% shareholding interest in the company[98]. - The total number of shares issued by the company as of October 31, 2020, is 800,000,000[101]. - The company has a Share Option Scheme allowing for the issuance of up to 80,000,000 shares, which is 10% of the issued shares as of the Adoption Date[120]. - No share options were granted, exercised, or cancelled during the Review Period, with none outstanding as of October 31, 2020[121].
富一国际控股(01470) - 2021 - 中期财报