创辉珠宝(08537) - 2022 - 中期财报

Corporate Information The report lists the company's key management personnel, including executive directors, independent non-executive directors, and members of the audit, remuneration, and nomination committees - The company's principal bankers are The Hongkong and Shanghai Banking Corporation Limited and Nanyang Commercial Bank, Limited[16] - The company's headquarters and principal place of business in Hong Kong are located in Hung Hom, Kowloon[20] Financial Highlights The Group's interim performance for 2021/22 saw revenue increase by 34.5% to approximately HKD 55.13 million, but shifted from a profit of approximately HKD 0.19 million to a loss of approximately HKD 0.94 million 2021/22 Interim Performance Highlights | Metric | Six Months Ended September 30, 2021 | Six Months Ended September 30, 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | approximately HKD 55.13 million | approximately HKD 41.00 million | ▲ 34.5% | | (Loss) Profit for the Period | loss of approximately HKD 0.94 million | profit of approximately HKD 0.19 million | shifted from profit to loss | | Interim Dividend | not recommended | N/A | - | Management Discussion and Analysis This section provides an overview of the Group's operational performance, financial position, capital structure, and human resources, along with future strategies Business Review and Outlook The Group's total revenue increased by 34.5% year-on-year, driven by a rebound in local consumer sentiment and store traffic in Hong Kong, with gem-set jewelry and pure gold product sales being key growth drivers, while recycled gold product trading revenue decreased; the Group plans to expand jewelry design, retail network, and social media marketing to capitalize on future economic improvements - Future strategy: The Group aims to expand its jewelry design series, enlarge its retail network, and explore extending marketing activities to social media to sustain long-term growth[29] Revenue Breakdown by Product Category (Six Months Ended September 30) | Product Category | Revenue 2021 (HKD million) | Revenue 2020 (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Gem-set Jewelry Products | 25.75 | 19.15 | ▲ 34.5% | | Pure Gold Products | 25.62 | 12.10 | ▲ 111.7% | | Recycled Gold Product Trading | 3.76 | 9.76 | ▼ 61.5% | Revenue Breakdown by Sales Channel (Six Months Ended September 30) | Sales Channel | Revenue 2021 (HKD million) | Revenue 2020 (HKD million) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Retail | 45.63 | 26.56 | ▲ 71.8% | | Wholesale | 5.75 | 4.69 | ▲ 22.6% | - Other income significantly decreased from HKD 3.6 million in the prior period to HKD 0.8 million, primarily due to approximately HKD 3.0 million in government anti-epidemic fund subsidies received in the prior period, which were absent in the current reporting period[46] Liquidity and Financial Resources As of September 30, 2021, the Group maintained a sound financial position with total assets of HKD 129 million and a current ratio of 2.0 times; the gearing ratio slightly increased from 38.7% to 38.8% due to a decrease in total equity, with cash primarily held in HKD at major licensed banks in Hong Kong under a prudent treasury policy Financial Position Overview | Metric | September 30, 2021 | March 31, 2021 | | :--- | :--- | :--- | | Total Assets | HKD 129 million | HKD 136.2 million | | Total Liabilities | HKD 49.1 million | HKD 55.3 million | | Shareholders' Equity | HKD 79.9 million | HKD 80.9 million | | Total Interest-bearing Borrowings | HKD 30.9 million | HKD 31.3 million | | Current Ratio | 2.0 times | 1.9 times | | Gearing Ratio | 38.8% | 38.7% | - The Group adopts prudent financial management and treasury policies, with centralized treasury activities and cash primarily held in HKD at major licensed banks in Hong Kong[60] Capital Structure and Other Financial Information The company's capital structure has remained unchanged since its 2019 listing, with HKD 7.5 million in issued share capital corresponding to 750 million ordinary shares; as of the period-end, the Group had no pledged assets, significant investment plans, capital commitments, or contingent liabilities, and deemed its foreign currency exposure immaterial, thus not adopting a hedging policy - As of September 30, 2021, the company's issued share capital was HKD 7,500,000, with 750,000,000 ordinary shares issued, and the capital structure has remained unchanged since its listing[66][67] - At the end of the reporting period, the Group had no pledged assets, capital commitments, or contingent liabilities[68][72][73] - The Group primarily faces foreign currency risks from USD and RMB, but management considers the exposure immaterial and has not adopted a foreign currency hedging policy[70][71] Employees and Remuneration Policies As of September 30, 2021, the Group employed 95 staff members, a slight increase from 90 as of March 31, 2021; employee remuneration is determined by qualifications, duties, contributions, and experience, complemented by comprehensive training programs - As of September 30, 2021, the Group's employee count was 95, an increase from 90 as of March 31, 2021[80] Other Information This section details the company's corporate governance practices, director and shareholder interests, share schemes, and other key disclosures Corporate Governance and Director Information During the reporting period, the company largely complied with the Corporate Governance Code, except for deviation from provision A.2.1 where the Chairman and Chief Executive Officer roles are held by the same individual, Mr. Fu Chun Keung, which the Board deems to be in the Group's best interest; the report also disclosed changes in the directorship of independent non-executive director Mr. Chan Tsz Ming - The company deviated from Corporate Governance Code provision A.2.1, with Mr. Fu Chun Keung serving as both Chairman and Chief Executive Officer; the Board believes this arrangement is in the Group's best interest due to his extensive experience and critical importance to the Group's development[85][86] - Director information change: Mr. Chan Tsz Ming resigned as an independent non-executive director of Glory Flame International Holdings Limited (stock code: 990) on August 28, 2021[87] Directors' and Shareholders' Interests As of September 30, 2021, executive directors Mr. Fu Chun Keung, Ms. Fu Wan Ling, and Ms. Cheung Lai Yuk collectively held 562,500,000 shares, representing 75% of the issued share capital, through their jointly controlled entity Mythe Group Holdings Company Limited, which also constitutes a major shareholder interest Directors' and Major Shareholders' Shareholdings (As of September 30, 2021) | Name/Entity | Capacity | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Fu Chun Keung | Interest in controlled corporation | 562,500,000 | 75% | | Ms. Fu Wan Ling | Interest in controlled corporation | 562,500,000 | 75% | | Ms. Cheung Lai Yuk | Interest in controlled corporation, Spouse's interest | 562,500,000 | 75% | | MGH Limited | Beneficial interest | 562,500,000 | 75% | Share Schemes The company has a share award scheme adopted on March 19, 2021, and a share option scheme adopted on March 6, 2019, both designed to incentivize and reward eligible individuals for their contributions to the Group; as of September 30, 2021, no share awards or share options had been granted, exercised, or cancelled under either scheme - The company adopted a share award scheme on March 19, 2021, aimed at recognizing and rewarding contributions from eligible individuals[109] - The company adopted a share option scheme on March 6, 2019, designed to incentivize eligible participants[115] - As of September 30, 2021, no awards or share options had been granted, exercised, outstanding, cancelled, or lapsed under either the share award scheme or the share option scheme[111][116] Audit Committee and Other Disclosures The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited consolidated results for the period; the report confirms that directors and their close associates have no competing business interests, the company maintains sufficient public float, and there are no current plans for significant acquisitions or disposals - The Audit Committee, composed of three independent non-executive directors, has reviewed the financial results for the period and deemed their preparation compliant with accounting standards and relevant regulations[118][119] - As of the reporting date, the company maintained a sufficient public float as required by the GEM Listing Rules[126] Unaudited Interim Financial Information This section presents the Group's unaudited condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, cash flows, and accompanying notes Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended September 30, 2021, the Group shifted from a profit of HKD 0.189 million in the prior year to a loss of HKD 0.936 million; despite a 34.5% revenue increase to HKD 55.13 million and gross profit rising to HKD 16.91 million, the overall result turned to loss primarily due to a significant decrease in other income (mainly from prior-year government subsidies) and fair value losses on financial assets, resulting in a basic loss per share of HKD 0.12 cents Condensed Consolidated Statement of Profit or Loss Summary (Six Months Ended September 30) | Item (HKD thousand) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Revenue | 55,134 | 41,003 | | Gross Profit | 16,907 | 13,311 | | Other Income | 832 | 3,569 | | Other Gains or Losses | (807) | 520 | | (Loss) Profit Before Taxation | (1,401) | 227 | | (Loss) Profit for the Period | (936) | 189 | | Basic (Loss) Earnings Per Share (HK cents) | (0.12) | 0.03 | Condensed Consolidated Statement of Financial Position As of September 30, 2021, the Group's total assets were HKD 129 million, a slight decrease from March 31, 2021, with net assets (total equity) at HKD 79.93 million; net current assets stood at HKD 51.08 million, indicating strong short-term solvency, with key assets including inventories (HKD 61.79 million) and bank balances and cash (HKD 29.37 million), and primary liabilities being bank borrowings (HKD 30.97 million) Statement of Financial Position Summary (HKD thousand) | Item | September 30, 2021 (Unaudited) | March 31, 2021 (Audited) | | :--- | :--- | :--- | | Non-current Assets | 28,845 | 30,006 | | Current Assets | 100,164 | 106,228 | | Total Assets | 129,009 | 136,234 | | Current Liabilities | 49,081 | 54,192 | | Non-current Liabilities | — | 1,101 | | Total Liabilities | 49,081 | 55,293 | | Net Assets | 79,928 | 80,941 | | Total Equity | 79,928 | 80,941 | Condensed Consolidated Statement of Changes in Equity For the six months ended September 30, 2021, the Group's total equity decreased by HKD 1.013 million from HKD 80.94 million at the beginning of the period to HKD 79.93 million at the end, primarily due to a loss of HKD 0.936 million for the period and exchange differences of HKD 0.077 million arising from translation of foreign operations - Total equity decreased by HKD 1.013 million during the period, from HKD 80.941 million to HKD 79.928 million[137] - The decrease in equity was primarily composed of a loss for the period of HKD 0.936 million and exchange differences (loss) of HKD 0.077 million arising from the translation of foreign operations[137] Consolidated Statement of Cash Flows During the reporting period, the Group's cash and cash equivalents decreased by HKD 2.65 million; net cash generated from operating activities significantly declined to HKD 0.91 million from HKD 8.66 million in the prior year, while investing activities generated HKD 0.18 million in net cash, and financing activities resulted in a net outflow of HKD 3.74 million due to repayment of bank loans and lease liabilities, with the period-end cash and cash equivalents balance at HKD 29.37 million Cash Flow Statement Summary (Six Months Ended September 30, HKD thousand) | Item | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 907 | 8,664 | | Net Cash from Investing Activities | 181 | (13,683) | | Net Cash from Financing Activities | (3,739) | (1,841) | | Net Decrease in Cash and Cash Equivalents | (2,651) | (6,860) | | Cash and Cash Equivalents at Beginning of Period | 32,021 | 43,429 | | Cash and Cash Equivalents at End of Period | 29,365 | 36,582 | Notes to the Condensed Consolidated Financial Statements This section provides the basis of preparation, significant accounting policies, and detailed explanations for various financial statement items, including revenue segmentation by business and product categories, the impact of government grants on other income, taxation, earnings per share composition, aging analysis of assets and liabilities, and share capital structure Note 4. REVENUE AND SEGMENT INFORMATION Of the total revenue of HKD 55.13 million, the jewelry business contributed HKD 51.37 million, with retail accounting for HKD 45.63 million and wholesale for HKD 5.75 million; recycled gold product trading contributed HKD 3.76 million, and by product category, revenue from gem-set jewelry products and gold jewelry products was comparable at HKD 25.75 million and HKD 25.62 million, respectively Revenue Breakdown (Six Months Ended September 30, 2021) | Business Segment | Revenue (HKD thousand) | | :--- | :--- | | Jewelry Retail Business | 45,625 | | Wholesale of Jewelry Products | 5,746 | | Recycled Gold Product Trading | 3,763 | | Total | 55,134 | Note 5, 6, 7. Other Income, Gains/Losses, and Finance Costs Other income significantly decreased to HKD 0.832 million year-on-year, primarily due to the absence of HKD 3.0 million in government subsidies received in the prior period; other gains/losses recorded a net loss of HKD 0.807 million, mainly from fair value losses on financial assets, and finance costs amounted to HKD 0.579 million, predominantly from bank borrowing interest - The primary reason for the year-on-year decrease in other income was the HKD 3.0 million in government subsidies (Anti-epidemic Fund and Employment Support Scheme) received in the corresponding period of 2020, which were not present in the current reporting period[162][163] - A net other loss of approximately HKD 0.807 million was recorded, primarily due to a fair value loss of HKD 0.798 million on financial assets at fair value through profit or loss[165] Note 8, 9. (Loss) Profit Before Taxation and Taxation The pre-tax loss for the reporting period was HKD 1.401 million; key expenses included total staff costs of HKD 9.151 million and depreciation of property, plant, and equipment totaling HKD 5.29 million; in terms of taxation, a deferred tax credit of HKD 0.465 million was recognized, narrowing the after-tax loss Key Expense Items (Six Months Ended September 30) | Item (HKD thousand) | 2021 | 2020 | | :--- | :--- | :--- | | Total Staff Costs | 9,151 | 7,920 | | Total Depreciation of Property, Plant and Equipment | 5,290 | 5,750 | | Cost of Inventories Recognized as Expense | 38,172 | 27,642 | Note 10, 11. Dividends and (Loss) Earnings Per Share During the reporting period, the company neither paid, declared, nor proposed any dividends; based on a loss of HKD 0.936 million for the period and a weighted average of 750 million shares, the basic loss per share was calculated at HKD 0.12 cents; diluted earnings per share were not presented due to the absence of potential dilutive ordinary shares - The Directors resolved not to declare any dividend for the interim period[174] - Basic loss per share was HKD 0.12 cents, calculated based on a loss for the period of HKD 0.936 million and a weighted average of 750,000,000 ordinary shares[179] Note 13, 14. Assets and Liabilities Analysis As of September 30, 2021, net trade receivables amounted to HKD 1.649 million, primarily aged within 60 days; trade payables were HKD 3.389 million, with a significant portion of HKD 1.547 million aged over 90 days Trade Receivables Aging Analysis (HKD thousand) | Aging | September 30, 2021 | | :--- | :--- | | 0 to 30 days | 882 | | 31 to 60 days | 471 | | 61 to 90 days | 124 | | Over 90 days | 222 | | Total | 1,699 | Trade Payables Aging Analysis (HKD thousand) | Aging | September 30, 2021 | | :--- | :--- | | 0 to 30 days | 592 | | 31 to 60 days | 553 | | 61 to 90 days | 697 | | Over 90 days | 1,547 | | Total | 3,389 | Note 15. SHARE CAPITAL As of September 30, 2021, the company's authorized share capital was HKD 15 million (1.5 billion shares at HKD 0.01 par value per share), with issued and fully paid share capital at HKD 7.5 million (750 million shares); there were no changes in the share capital structure during the reporting period Share Capital Structure (As of September 30, 2021) | Item | Number of Shares | Amount (HKD) | | :--- | :--- | :--- | | Authorized ordinary shares (HKD 0.01 par value per share) | 1,500,000,000 | 15,000,000 | | Issued and fully paid ordinary shares | 750,000,000 | 7,500,000 |