Financial Performance - The company's revenue decreased by approximately 11.9% from HKD 357,666,000 in the previous year to HKD 315,157,000 for the six months ended September 30, 2019[10]. - Gross profit fell by HKD 7,841,000, resulting in a gross margin of 16.3%, slightly down from 16.5% in the previous year[6]. - Net profit attributable to the company's owners was approximately HKD 1,151,000, down from HKD 3,118,000 in the same period last year[11]. - EBITDA increased to HKD 15,523,000 from HKD 14,630,000 year-on-year[11]. - Revenue for the six months ended September 30, 2019, was HKD 315,157,000, a decrease of 11.9% compared to HKD 357,666,000 for the same period in 2018[54]. - Gross profit for the same period was HKD 51,324,000, down 13.2% from HKD 59,165,000 in 2018[54]. - Net profit for the period was HKD 1,151,000, a decline of 63.1% compared to HKD 3,118,000 in the previous year[54]. - Basic earnings per share decreased to HKD 0.14 from HKD 0.52, representing a drop of 73.1%[54]. - Total comprehensive income for the period was HKD 721,000, down 78.1% from HKD 3,293,000 in 2018[54]. - The company did not recommend any interim dividend for the six months ended September 30, 2019[46]. Assets and Liabilities - Total assets rose to HKD 499,400,000, compared to HKD 385,633,000 in the previous year[8]. - Non-current assets increased to HKD 132,362,000 as of September 30, 2019, compared to HKD 99,549,000 as of March 31, 2019, representing a growth of 33%[56]. - Current assets rose to HKD 367,038,000 as of September 30, 2019, up from HKD 286,084,000 as of March 31, 2019, indicating an increase of 28%[56]. - Current liabilities increased to HKD 371,533,000 as of September 30, 2019, from HKD 268,016,000 as of March 31, 2019, reflecting a rise of 38.7%[56]. - The company's debt-to-equity ratio was 242.7% as of September 30, 2019, compared to 164.8% as of March 31, 2019[24]. - The group’s total financial liabilities rose to HKD 370,230,000 as of September 30, 2019, compared to HKD 267,748,000 as of March 31, 2019, indicating an increase of approximately 38%[135]. Cash Flow and Financing - As of September 30, 2019, cash and cash equivalents were approximately HKD 78,558,000, up from HKD 75,687,000 as of March 31, 2019[17]. - The net cash used in operating activities for the six months ended September 30, 2019, was HKD (61,184,000), an improvement from HKD (83,316,000) in the same period of 2018[61]. - The company reported a financing cost of HKD 4,907,000 for the period, compared to HKD 4,147,000 in the previous year[54]. - Financing costs increased by approximately 18.3% to about HKD 4,907,000 from HKD 4,147,000 due to rising interest rates and increased loan amounts[16]. - New bank borrowings amounted to HKD 393,989,000 for the six months ended September 30, 2019, a 30.6% increase from HKD 301,451,000 in the same period last year[124]. - The company repaid HKD 303,289,000 in bank borrowings during the same period, compared to HKD 239,953,000 in the previous year, reflecting a 26.5% increase in repayments[124]. Operational Insights - The company believes its operating performance will improve in the second half of the fiscal year ending March 31, 2020[19]. - The company is optimistic about diversifying its customer base due to trade shifts caused by the US-China trade tensions[20]. - The company plans to continue expanding its market presence in the United States, focusing on the manufacturing and trading of apparel products[64]. - The group expects to continue generating positive operating cash flow over the next twelve months[70]. - The board plans to enhance and implement measures to improve the group's working capital and cash flow, including close monitoring of administrative expenses and operating costs[70]. Corporate Governance and Compliance - The board confirms compliance with the corporate governance code as per the listing rules during the six months ending September 30, 2019[36]. - The audit committee has reviewed the interim financial information for the six months ending September 30, 2019, ensuring compliance with the relevant listing rules[37]. - The company has confirmed that all directors complied with the standard code of conduct for securities transactions during the reporting period[35]. Shareholder Information - Major shareholders include Moonlight Global Holdings Limited and Rainbow Galaxy Limited, holding 37.5% and 34.0% of shares respectively[40]. - The company has not engaged in any purchase, sale, or redemption of its listed securities during the six months ending September 30, 2019[34]. Inventory and Receivables - Inventory increased by approximately HKD 22,295,000 to about HKD 59,389,000, primarily due to a rise in raw materials[17]. - Trade and other receivables rose by approximately HKD 54,552,000 to about HKD 224,250,000, attributed to seasonal effects[17]. - Trade receivables rose to HKD 207,927,000 as of September 30, 2019, compared to HKD 153,684,000 as of March 31, 2019, marking an increase of 35.3%[120]. Strategic Acquisitions and Investments - The company acquired intellectual property for USD 1,400,000 and established a licensing agreement with a minimum annual royalty of USD 120,000[26]. - The group is actively seeking strategic acquisitions to capture new business opportunities and increase revenue and profit base[69]. Lease and Accounting Changes - The adoption of HKFRS 16 has significantly changed the accounting treatment of leases, with most leases recognized as right-of-use assets and lease liabilities on the balance sheet[73]. - The group has applied the cumulative effect method for HKFRS 16, adjusting the right-of-use assets to equal the lease liabilities recognized[74]. - The total lease liabilities as of September 30, 2019, amounted to HKD 18,624,000, with HKD 9,247,000 due within one year and HKD 9,377,000 due after one year[116].
STERLING GP(01825) - 2020 - 中期财报