Revenue Performance - Revenue for the first half of the 2021 fiscal year decreased by approximately HKD 95.6 million or 9.0% to HKD 963.4 million compared to HKD 1,058.9 million in the first half of the 2020 fiscal year[12]. - The Tian Wang watch business accounted for approximately 85.1% of total revenue in the first half of the 2021 fiscal year, with revenue decreasing by approximately HKD 59.3 million or 6.7% to HKD 820.1 million[13]. - The Baigo watch business revenue decreased by approximately HKD 6.4 million or 24.5% to HKD 19.6 million, representing about 2.0% of total revenue[15]. - Revenue from other brands (China) decreased by approximately HKD 4.9 million or 5.7% to HKD 80.4 million, accounting for about 8.3% of total revenue[16]. - The movement trading business revenue decreased by approximately HKD 24.9 million or 36.5% to HKD 43.4 million, representing about 4.5% of total revenue[17]. - The revenue contribution from the Tian Wang watch business was approximately 85.1% of total revenue in the first half of the 2021 fiscal year, up from 83.0% in the first half of the 2020 fiscal year[29]. - The revenue from the Baige watch business decreased by approximately HKD 6.4 million or about 24.5% from HKD 26.0 million in the first half of the 2020 fiscal year to HKD 19.6 million in the first half of the 2021 fiscal year[30]. - Revenue from other brands (China) decreased by approximately HKD 4.9 million or about 5.7% from HKD 85.3 million in the first half of the 2020 fiscal year to HKD 80.4 million in the first half of the 2021 fiscal year[31]. - The group's revenue from continuing operations for the six months ended December 31, 2020, was HKD 963,391,000, a decrease of 8.99% compared to HKD 1,058,941,000 for the same period in 2019[51]. - The group's total revenue for the six months ended December 31, 2020, was HKD 963,391,000, a decrease from HKD 1,058,941,000 for the same period in 2019, representing a decline of approximately 9%[82]. Profitability - Gross profit for the first half of the 2021 fiscal year decreased by approximately HKD 57.7 million or 7.3% to HKD 728.1 million, with a gross margin increase to 75.6% from 74.2% in the previous year[18]. - Profit attributable to owners increased by approximately HKD 55.6 million or about 55.7% from HKD 99.7 million in the first half of the 2020 fiscal year to HKD 155.3 million in the first half of the 2021 fiscal year[24]. - The group reported a profit before tax of HKD 213,039,000, an increase of 36.2% from HKD 156,456,000 in the previous year[51]. - The net profit attributable to owners of the company from continuing operations was HKD 155,332,000, up from HKD 120,964,000 in the prior year, representing a growth of 28.3%[53]. - The total comprehensive income for the period was HKD 296,782,000, compared to HKD 47,969,000 in the same period last year, indicating significant improvement[55]. - The company reported a net profit of HKD 155,332,000 for the six months ended December 31, 2020[63]. - The company's profit attributable to owners for the six months ended December 31, 2020, was HKD 155,332,000, compared to HKD 99,747,000 for the same period in 2019, representing a year-over-year increase of approximately 55.8%[100]. Expenses and Cost Management - Sales and distribution costs decreased by approximately HKD 76.6 million or about 13.0% from HKD 588.0 million in the first half of the 2020 fiscal year to HKD 511.3 million in the first half of the 2021 fiscal year[20]. - Administrative expenses reduced by approximately HKD 8.8 million or about 12.0% from HKD 73.0 million in the first half of the 2020 fiscal year to HKD 64.2 million in the first half of the 2021 fiscal year[22]. - The employee costs for the first half of the fiscal year 2021 were approximately HKD 193.0 million, down from HKD 223.1 million in the first half of the fiscal year 2020[45]. - The total employee costs for the six months ended December 31, 2020, amounted to 193,042 thousand HKD, down from 223,065 thousand HKD in the previous year, indicating a reduction of about 13.5%[92]. Assets and Liabilities - Total assets increased to HKD 2,870.3 million from HKD 2,496.1 million, while total liabilities rose to HKD 383.2 million from HKD 302.9 million[11]. - The group's total equity as of December 31, 2020, was approximately HKD 2,487.1 million, an increase of about HKD 293.9 million from HKD 2,193.2 million as of June 30, 2020[38]. - The group's operating working capital as of December 31, 2020, was approximately HKD 1,373.8 million, an increase of about HKD 154.9 million from HKD 1,218.9 million as of June 30, 2020[38]. - The group's cash and cash equivalents were approximately HKD 575.4 million as of December 31, 2020, down from approximately HKD 693.6 million as of June 30, 2020[37]. - The total assets less current liabilities amounted to HKD 2,590,858,000, an increase from HKD 2,279,494,000 in the previous period[62]. Inventory and Receivables - The average inventory turnover days increased to 301 days from 289 days, while average trade receivables turnover days improved to 46 days from 63 days[11]. - As of December 31, 2020, the group's inventory balance was approximately HKD 402.0 million, an increase of about HKD 27.7 million or 7.4% compared to HKD 374.3 million as of June 30, 2020[35]. - The aging analysis of trade receivables shows that HKD 192,603,000 (87% of total receivables) were aged 0 to 60 days as of December 31, 2020, compared to HKD 214,092,000 (85%) on June 30, 2020[121]. - Trade receivables from third parties were HKD 261,496,000 as of December 31, 2020, down 8.4% from HKD 285,628,000 on June 30, 2020[118]. - Inventory as of December 31, 2020, was HKD 401,971,000, an increase from HKD 374,315,000 as of June 30, 2020[60]. E-commerce and Market Strategy - The company aims to enhance operational efficiency and expand its sales network, particularly in e-commerce, to strengthen overall competitiveness[3]. - E-commerce continued to be a major driver of revenue, maintaining performance on Alibaba's Tmall platform during the "Double 11" shopping festival compared to the first half of the 2020 fiscal year[34]. - The company plans to focus on expanding its retail network in second, third, and fourth-tier cities to enhance market coverage and profitability[49]. - E-commerce operations are expected to experience moderate growth due to increased competition, but the company will allocate more resources to capture online market share[49]. Tax and Compliance - The effective tax rate increased from approximately 22.4% in the first half of the 2020 fiscal year to 25.1% in the first half of the 2021 fiscal year[23]. - The income tax expense for the six months ended December 31, 2020, was 53,447 thousand HKD, compared to 35,090 thousand HKD in the same period of 2019, reflecting an increase of approximately 52%[88]. - The company maintained compliance with the corporate governance code, with regular reviews planned for the separation of the roles of chairman and CEO[150]. Shareholder Information - The company’s major shareholder, Mr. Dong, holds a controlling interest of 70.02% with 1,456,277,000 shares[156]. - The company has a total of 2,079,946,000 shares issued and fully paid as of December 31, 2020, maintaining the same number since July 1, 2019[126]. - Red Glory Investments Limited holds 1,456,277,000 shares, representing 70.02% of the company's equity[160]. - Ms. Tan holds 1,465,369,000 shares through spousal rights, accounting for 70.45% of the company's equity[160]. - Areo Holdings Limited, along with Ms. Lin and Mr. Li, each holds 180,292,000 shares, representing 8.96% of the company's equity[160]. - Orchid Asia V, L.P. holds 180,946,000 shares, which is 8.70% of the company's equity[163]. - Webb David Michael has a beneficial ownership of 41,217,680 shares, accounting for 1.98% of the company's equity[163]. Financial Reporting and Audit - The company is audited by Deloitte Touche Tohmatsu, a registered public interest entity auditor in Hong Kong[169]. - The group has not adopted any new or revised Hong Kong Financial Reporting Standards that are expected to have a significant impact on the consolidated financial statements in the foreseeable future[76].
时计宝(02033) - 2021 - 中期财报