Financial Performance - For the six months ended September 30, 2020, the company's revenue decreased by approximately 38.4% to HKD 194,272,000 from HKD 315,157,000 in the same period of 2019[10]. - Gross profit for the same period fell to HKD 34,525,000, while the gross margin slightly increased to 17.8% from 16.3% in the previous year[10]. - The company recorded a profit of HKD 572,000 for the period, down from HKD 1,151,000 in the prior year[13]. - Revenue for the six months ended September 30, 2020, was HKD 194,272,000, a decrease of 38.3% compared to HKD 315,157,000 in 2019[54]. - Gross profit for the same period was HKD 34,525,000, down 32.6% from HKD 51,324,000 in 2019[54]. - The net profit for the period was HKD 572,000, a decline of 50.3% compared to HKD 1,151,000 in the previous year[54]. - Basic earnings per share decreased to HKD 0.07 from HKD 0.14, representing a 50% drop[54]. - The operating profit for the six months ended September 30, 2020, was HKD 572,000, down from HKD 1,151,000 in the same period of 2019, indicating a decline of about 50.3%[93]. Assets and Liabilities - Total assets increased to HKD 428,815,000 as of September 30, 2020, compared to HKD 373,517,000 as of March 31, 2020[7]. - Cash and cash equivalents rose to HKD 67,725,000 from HKD 47,836,000 during the same period[7]. - The current liabilities exceeded current assets by HKD 26,227,000 as of September 30, 2020, compared to HKD 64,483,000 as of March 31, 2020[64]. - The total equity as of September 30, 2020, was HKD 57,077,000, slightly up from HKD 56,692,000 as of March 31, 2020[56]. - The group’s total financial liabilities amounted to HKD 368,109,000 as of September 30, 2020, compared to HKD 313,683,000 as of March 31, 2020, marking an increase of around 17.4%[122]. Cash Flow and Financing - The net cash used in operating activities for the six months ended September 30, 2020, was HKD (20,495,000), an improvement from HKD (61,184,000) in the same period of 2019[59]. - The company incurred a net cash outflow from investing activities of HKD (649,000) for the six months ended September 30, 2020, compared to HKD (20,605,000) in the previous year[59]. - New bank borrowings amounted to HKD 161,702,000 for the six months ended September 30, 2020, compared to HKD 393,989,000 for the same period in 2019, a decrease of 58.9%[114]. - The actual interest rate on bank borrowings ranged from 0.7% to 4.75% as of September 30, 2020, down from 1.1% to 5% as of March 31, 2020[114]. - The group has approximately HKD 196,325,000 in undrawn bank financing available as of the report's authorization date[66]. Cost Management - The company implemented a 30% salary reduction starting April 1, 2020, contributing to a decrease in operating costs by approximately HKD 11,800,000[12]. - Sales and distribution costs for the review period were approximately HKD 12,969,000, a reduction of about 24.2% compared to approximately HKD 17,112,000 in the same period last year[15]. - General and administrative expenses decreased by 23.3% to approximately HKD 25,424,000 from approximately HKD 33,128,000 in the same period last year[16]. - Financing costs decreased by approximately 16.9% to about HKD 4,077,000 from approximately HKD 4,907,000 in the same period last year, mainly due to a reduction in bank loan interest rates[17]. Impact of COVID-19 - The company faced significant disruptions due to COVID-19, impacting order volumes and operations in factories located in the Philippines and Sri Lanka[9]. - The group experienced a significant impact on operations due to COVID-19, with business in China suspended for approximately one week and operations in Sri Lanka halted from late March to early May 2020[65]. - The group received government subsidies of HKD 2,890,000 to support employee wages during the pandemic, which are recorded separately in the financial statements[69]. - The group recognized a reduction in lease liabilities totaling HKD 750,000 due to rent concessions received from landlords as a result of COVID-19[68]. - The group implemented cost control measures to enhance profitability and future cash flow, focusing on improving operational efficiency[66]. Employee and Shareholder Information - The group employed 1,782 full-time employees as of September 30, 2020, down from approximately 2,279 employees on March 31, 2020, indicating a reduction of about 22%[32]. - Major shareholders include Moonlight Global Holdings with a 37.5% stake and Rainbow Galaxy Limited with a 34.0% stake[45]. - The total remuneration for directors and key management personnel decreased to HKD 4,669,000 in 2020 from HKD 6,146,000 in 2019, representing a decline of approximately 23.9%[120]. Future Outlook - The group anticipates that the financial performance for the next six months will continue to reflect the lingering impacts of disruptions experienced in early 2020[23]. - The group expects sales from major customers to rebound in 2021 as the economy stabilizes and adapts to the new normal[23].
STERLING GP(01825) - 2021 - 中期财报