Revenue and Profitability - For the six months ended September 30, 2020, the Group recorded revenue of approximately HK$709,387,000, representing an increase of approximately 16.3% compared to HK$609,857,000 for the same period in 2019[12]. - Profit attributable to owners of the Company for the six months ended September 30, 2020, was approximately HK$35,689,000, representing an increase of approximately 165.2% from approximately HK$13,457,000 in 2019[15]. - Gross profit for the six months ended September 30, 2020, was approximately HK$222,761,000, compared to approximately HK$209,282,000 for the same period in 2019[15]. - The gross profit margin for the Group was approximately 31.4%, a decrease of approximately 2.9 percentage points from 34.3% for the six months ended September 30, 2019[29]. - The increase in profit was primarily due to the recognition of government grants accounted for the period, amounting to approximately HK$21,189,000[44]. Retail Expansion - The Group opened 13 new retail stores in Hong Kong, with 11 located in community or residential districts, expanding its retail network[7]. - The number of retail stores increased from 98 in Hong Kong as of September 30, 2019, to 112 as of September 30, 2020, with an additional three stores in Macau[12]. - The Group opened 15 new stores during the period, including 13 in Hong Kong and 2 in Macau, while closing three stores in Hong Kong[17]. - The Group's retail network expansion included new stores located primarily in community or residential districts to better serve local consumers[17]. Market Conditions - Local consumer spending sentiment remained cautious due to the worsening economic environment and unemployment pressure in Hong Kong[7]. - The Group faced a challenging business environment due to anti-epidemic measures, including border closures and quarantine measures[7]. - The retail business environment in Hong Kong is expected to remain challenging due to the ongoing impact of the novel coronavirus pandemic[37]. Product Offerings and Strategy - The Group's mission is to provide "Best Quality" and "Best Prices" products through global procurement efforts[6]. - The Group's product offerings include a wide range of imported prepackaged leisure foods and grocery products[6]. - The Group adjusted its business strategy and optimized its product portfolio to maintain profitability amid challenging market conditions[7]. - The Group plans to expand its product range, particularly basic grocery products, to meet local community needs while controlling procurement costs to maintain competitive pricing[39]. Financial Position - As of September 30, 2020, the Group's total cash and bank balances were approximately HK$92,781,000, a decrease of approximately HK$123,130,000 from HK$215,911,000 as of March 31, 2020[54]. - The Group's total bank borrowings as of September 30, 2020, were approximately HK$140,030,000, an increase of approximately 40.7% compared to HK$99,542,000 as of March 31, 2020[55]. - The gearing ratio as of September 30, 2020, was approximately 40.9%, up from approximately 32.5% as of March 31, 2020, primarily due to increased bank borrowings for acquisition payments[56]. - The Group had net current liabilities of approximately HK$19,026,000, a significant decrease from net current assets of HK$152,271,000 as of March 31, 2020[61]. Government Support and Grants - The Group received government grants totaling approximately HK$21,189,000, which contributed to the increase in profit for the period[15]. - Other income and gains for the six months ended September 30, 2020, amounted to approximately HK$22,408,000, significantly up from HK$2,161,000 for the same period in 2019, mainly due to government grants recognition[46]. Employee and Operational Costs - Staff costs (excluding Directors' emoluments) for the six months ended September 30, 2020, were approximately HK$67,788,000, a 3.4% increase from HK$65,536,000 in the same period of 2019[20]. - Selling and distribution expenses for the six months ended September 30, 2020, were approximately HK$181,441,000, an increase of approximately 8.0% from HK$168,050,000 for the same period in 2019[47]. - Administrative and other expenses for the six months ended September 30, 2020, were approximately HK$20,733,000, representing an increase of approximately 4.7% from HK$19,809,000 for the same period in 2019[48]. Acquisitions and Investments - The Group completed the acquisition of Allied Wide for a consideration of approximately HK$176.0 million on September 28, 2020[76]. - The Group recognized right-of-use assets of approximately HK$178,865,000 from the acquisition of Allied Wide during the six months ended September 30, 2020, compared to HK$Nil in the same period of 2019[175]. Corporate Governance - The Company has adopted and complied with all applicable code provisions in the Corporate Governance Code during the reporting period[103]. - The Company is committed to maintaining high standards of corporate governance to enhance accountability and transparency[102]. - The Board has established three committees: audit, remuneration, and nomination, to assist in fulfilling its responsibilities[107]. Shareholder Information - The board has recommended an interim dividend of HK2.0 cents per share, totaling HK$20,000,000, an increase from HK1.5 cents per share in the previous period[85]. - An interim dividend of HK$20,000,000, or HK$0.02 per share, has been proposed for the six months ended September 30, 2020, subject to shareholder approval[174].
优品360(02360) - 2021 - 中期财报