Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 525.2 million, an increase of 9.6% compared to HKD 479.2 million for the same period in 2023[1] - Gross profit for the same period was HKD 117.6 million, up 6.9% from HKD 110.0 million in 2023[1] - Net profit decreased by 19.6% to HKD 23.9 million from HKD 29.7 million in 2023, primarily due to increased financing costs from high interest rates and rising operational expenses[1] - The gross profit margin slightly decreased to 22.4%, down from 23.8% in the same period of 2023, primarily due to the impact of new minimum wage regulations in Bangladesh[26] - The net profit margin decreased to 4.5% from 6.2% in the same period of 2023, mainly due to increased financing costs and tax expenses[26] - The company's profit attributable to shareholders for the six months ended June 30, 2024, was HKD 24,882,000, compared to HKD 31,621,000 for the same period in 2023, representing a decrease of approximately 21.5%[16] Dividends - The interim dividend declared is HKD 0.03 per share, down from HKD 0.042 per share in 2023[1] - The interim payout ratio for the period is 83.6%, compared to 97.0% in 2023[1] - The company declared a final dividend of HKD 0.029 per share for the year ended December 31, 2023, down from HKD 0.037 per share in 2022, totaling approximately HKD 19,014,000[15] - The company plans to distribute an interim dividend of HKD 0.030 per share, amounting to HKD 19,670,000, to shareholders listed on September 13, 2024[15] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 971.9 million, a slight decrease from HKD 984.6 million as of December 31, 2023[4] - Current assets were HKD 971.9 million, with inventories at HKD 496.3 million, down from HKD 521.4 million[4] - Current liabilities totaled HKD 719.1 million, compared to HKD 734.1 million at the end of 2023[4] - Total equity attributable to the owners of the company was HKD 833.7 million, down from HKD 851.6 million[5] - Cash and bank balances increased by 6.2% to HKD 195.6 million as of June 30, 2024, compared to HKD 184.2 million at the end of 2023[44] - The capital debt ratio increased to 74.4% as of June 30, 2024, up from 72.8% at the end of 2023, indicating a higher leverage position[45] Revenue Breakdown - Revenue from the United States was HKD 483,924,000, up 12.7% from HKD 429,571,000 in the previous year[12] - Revenue from high-end human hair extension products increased by 20.1% to HKD 65.1 million, driven by a recovery in consumer purchasing power[30] - Revenue from Halloween products decreased by 41.0% to HKD 18.3 million, primarily due to ongoing inventory destocking pressures from customers[31] - Revenue from the group's products manufactured in Bangladesh accounted for 98.9% of total revenue, compared to 98.6% in the same period of 2023[29] - The United States remained the group's primary market, contributing 92.1% of total revenue, up from 89.6% in the same period of 2023[29] Expenses - The group's cost of goods sold increased by 10.4% to HKD 407.6 million for the six months ended June 30, 2023, up from HKD 369.2 million in the same period last year[32] - Distribution and selling expenses rose by 15.3% to HKD 13.2 million, attributed to increased transportation and commission costs[38] - Administrative expenses increased by 1.0% to HKD 61.5 million, mainly due to higher salaries and employee benefits from the expansion of the new hairstyling business[39] - Financing costs increased by 27.6% to HKD 21.5 million, primarily due to persistently high interest rates[41] Other Financial Information - The company reported a basic earnings per share of HKD 0.04, compared to HKD 0.05 in the previous year[3] - The weighted average number of ordinary shares for calculating basic and diluted earnings per share was 655,652,000 shares for the six months ended June 30, 2024, down from 686,082,000 shares in 2023[16] - Other income rose by 40.7% to HKD 4.1 million, primarily due to increased bank interest and rental income[35] - The group recognized a revaluation loss of HKD 2,731,000 on industrial buildings, offices, and parking lots for the six months ended June 30, 2024, with no revaluation gains or losses recognized in the same period of 2023[17] - The group faced foreign currency risk due to transactions primarily in USD and CNY, with 98.9% of revenue from the Bangladesh factory in USD[47] Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and believes that good governance standards are crucial for protecting shareholder interests and enhancing corporate value[57] - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the period, confirming they are prepared in accordance with applicable accounting standards[59] - The interim results announcement and report will be published on the Hong Kong Stock Exchange and the company's website, ensuring compliance with the Listing Rules[60]
训修实业(01962) - 2024 - 中期业绩