Revenue and Profitability - Revenue increased by 26.7% to approximately HKD 246,156,000 compared to HKD 194,272,000 in the same period last year[9] - Net profit for the period was HKD 329,000, compared to HKD 572,000 in the same period last year, influenced by prior government COVID-19 relief[11] - The company reported a net profit of HKD 329,000 for the six months ended September 30, 2021, compared to HKD 572,000 in the prior year, indicating a decline of 42.5%[43] - Gross profit for the same period was HKD 34,366,000, slightly down from HKD 34,525,000, resulting in a gross margin of approximately 13.9%[43] - The operating profit for the six months ended September 30, 2021, was HKD 329,000, a decrease of 42.5% compared to HKD 572,000 for the same period in 2020[71] Expenses and Cost Management - Gross profit margin decreased to 14.0% from 17.8% in the same period last year, reflecting lower trade margins from new customers[10] - EBITDA for the period was HKD 9,648,000, down from HKD 12,647,000 in the previous year[8] - Interest expenses decreased by approximately 43.1% to HKD 2,319,000 from HKD 4,077,000 in the same period last year[10] - Sales and distribution expenses reduced by approximately 11.1% to HKD 11,522,000 from HKD 12,969,000 in the previous year[10] - General and administrative expenses decreased by 3.4% to approximately HKD 24,550,000 from HKD 25,424,000 in the previous year[17] - The company implemented cost-cutting measures, including salary reductions and layoffs, which began to yield results during the reporting period[10] Assets and Liabilities - Total assets increased to HKD 444,862,000 from HKD 384,578,000 at the end of the previous reporting period[8] - Current ratio improved to 0.92 from 0.79 in the previous reporting period[8] - Current liabilities rose to HKD 346,465,000 from HKD 320,683,000, leading to a decrease in net current liabilities from HKD 66,829,000 to HKD 28,289,000[44] - The company’s debt-to-equity ratio was 333.5%, a decrease from 415.8% on March 31, 2021, primarily due to the waiver of shareholder loans amounting to USD 1.5 million during the review period[25] - Trade payables rose to HKD 45,585,000 as of September 30, 2021, compared to HKD 23,935,000 as of March 31, 2021, indicating an increase of 90.5%[89] Cash Flow and Financing - Cash and cash equivalents as of September 30, 2021, were approximately HKD 53,766,000, down from HKD 63,853,000 as of March 31, 2021[19] - The company reported a financing cash inflow of HKD 17,199,000 for the period, down from HKD 41,742,000 in the previous year[48] - The group obtained new bank loans amounting to HKD 344,388,000 for the six months ended September 30, 2021, compared to HKD 161,702,000 for the same period in 2020, and repaid HKD 352,337,000 during the same period[90] - The actual interest rates for the bank loans range from 0.51% to 2.37% per annum, down from 0.51% to 4.75% as of March 31, 2021[90] Inventory and Receivables - Inventory decreased by approximately 34.7% to about HKD 23,407,000 from HKD 35,849,000 as of March 31, 2021[19] - Trade receivables increased significantly to HKD 243,681,000 as of September 30, 2021, up 52.7% from HKD 159,523,000 as of March 31, 2021[84] - The provision for expected credit losses on trade receivables remained unchanged at HKD 16,920,000 as of both September 30, 2021, and March 31, 2021[86] - The aging analysis of trade receivables showed that amounts overdue by more than 365 days increased to HKD 48,830,000 as of September 30, 2021, compared to HKD 23,614,000 as of March 31, 2021[86] Shareholder and Corporate Governance - Shareholder loans of USD 1,500,000 were waived to strengthen the company's capital base during the reporting period[12] - The company confirmed compliance with the corporate governance code as per the listing rules during the review period[33] - The major shareholder, Moonlight Global Holdings Limited, holds 40,100,000 shares, representing 20.05% of the company[37] Operational Insights - The group anticipates that sales will significantly improve in the fiscal year 2021/2022, despite potential supply chain challenges and increased transportation costs[22] - The group plans to enhance logistics management to minimize disruptions and ensure timely delivery of products[21] - The company has not encountered any significant difficulties or liquidity issues due to foreign exchange fluctuations, despite facing foreign exchange risks primarily from the Euro, Renminbi, and Sri Lankan Rupee[29] - The company has not faced any significant labor disputes or strikes during the review period, ensuring operational efficiency[28] Other Financial Information - The company has not authorized any significant investments or acquisitions as of the mid-term report date[27] - The company has not reported any capital commitments or contingent liabilities as of September 30, 2021[30] - The company has not engaged in any hedging activities but will monitor exchange rate trends for potential future needs[29] - The company did not declare an interim dividend for the review period[40] - There were no significant events after the reporting period that would impact the company's operations or financial performance[41]
STERLING GP(01825) - 2022 - 中期财报