Financial Performance - For the six months ended September 30, 2021, the company's revenue was approximately HKD 238.8 million, a decrease of about 3.4% compared to HKD 247.3 million for the same period in 2020[12]. - The net profit for the same period was approximately HKD 6.6 million, representing a decrease of about 38.3% from HKD 10.7 million in 2020[13]. - The company recorded a gross profit of approximately HKD 46.8 million, an increase of about 4.2% from HKD 44.9 million in the previous year[23]. - The company's profit attributable to owners for the six months ended September 30, 2021, was approximately HKD 6.2 million, a decrease of about 39.2% compared to approximately HKD 10.2 million for the same period in 2020[25]. - The operating profit decreased to HKD 9.729 million, down 26.5% from HKD 13.294 million in the prior year[55]. - The company reported a net profit of HKD 6,591,000 for the period, a decrease from HKD 10,727,000 in the same period last year[96][100]. Revenue Breakdown - Retail business revenue increased to approximately HKD 121.0 million for the six months ended September 30, 2021, up from HKD 113.3 million in the same period of 2020, marking a growth of about 7.7%[18]. - Distribution business revenue decreased by approximately HKD 16.2 million to about HKD 117.8 million, representing approximately 49.3% of total revenue, primarily due to reduced sales volume to local retailers in Hong Kong[29]. - Retail business revenue increased by 6.1% to HKD 121,015,000 from HKD 113,265,000 in the previous year[111]. - Total revenue for the distribution and retail businesses was HKD 238,775,000, a decrease of 3.4% from HKD 247,259,000 in the same period last year[111]. Expenses and Costs - Selling and distribution expenses decreased by approximately 26.3% to about HKD 18.2 million, mainly due to cost-saving measures implemented during the period[32]. - The cost of goods sold for the six months ended September 30, 2021, was HKD 107,761,000, a decrease of 7.3% from HKD 116,612,000 in the same period of 2020[128]. - The total operating expenses for the six months ended September 30, 2021, were HKD 228,170,000, down 6.8% from HKD 245,005,000 in the previous year[128]. Cash Flow and Financing - Operating cash flow for the six months ended September 30, 2021, was HKD 33,434,000, a decrease of 39.5% from HKD 55,231,000 in 2020[73]. - Net cash from operating activities amounted to HKD 33,771,000, down 37.9% compared to HKD 54,336,000 in the previous year[73]. - Cash flow from financing activities resulted in a net outflow of HKD (23,020,000), improving by 43.5% from HKD (40,788,000) in the prior year[73]. - The net financing cost for the six months ended September 30, 2021, was approximately HKD 2.0 million, a decrease of about 16.7% from approximately HKD 2.4 million in the same period of 2020[35]. Assets and Liabilities - The total assets as of September 30, 2021, amounted to HKD 277.340 million, a slight increase from HKD 275.684 million as of March 31, 2021[65]. - The total liabilities decreased to HKD 140.565 million from HKD 145.010 million, indicating improved financial stability[65]. - The company employed 597 staff as of September 30, 2021, down from 721 staff as of March 31, 2021, with employee benefits expenses totaling approximately HKD 48.8 million[51]. - Trade payables amounted to HKD 18,967,000, an increase from HKD 15,365,000 as of March 31, 2021, representing a growth of 23.5%[142]. Dividends and Shareholder Information - The board has decided not to declare an interim dividend for the six months ended September 30, 2021, compared to HKD 0.01 per share in the same period of 2020[13]. - Major shareholders include ACAC Investment Limited and SCSC Holdings Limited, each holding 25.0% (100,000,000 shares) of the company[182]. Legal and Compliance Issues - The company has been actively negotiating with suppliers regarding quality issues related to masks purchased under a contract worth HKD 31,500,000, with HKD 9,250,000 worth of masks delivered but failing to meet quality standards[166]. - The company has filed a claim against a supplier for damages amounting to HKD 9,083,000 due to non-compliance with quality standards in delivered goods[167]. - Management believes the supplier's claims are unfounded and expects to win the lawsuit based on test reports from accredited laboratories[170]. - If the company loses the lawsuit, it could incur additional litigation losses of HKD 17,936,000 related to the supplier's claims[170]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, emphasizing effective board management and high transparency[187]. - The board consists of four executive directors and three independent non-executive directors, ensuring a high level of independence[188]. - The audit committee reviewed the unaudited interim consolidated results and financial statements, confirming compliance with applicable accounting standards[192].
宾仕国际(01705) - 2022 - 中期财报