Revenue and Profitability - Revenue for the six months ended June 30, 2024, decreased by approximately 2.4% to RM 92.7 million compared to RM 95.0 million for the same period in 2023[9] - The company reported a profit before tax of RM 9.7 million, down from RM 11.5 million in the prior year[9] - Profit attributable to owners of the company was approximately 6,200,000 MYR, down from 7,500,000 MYR in the same period last year, with a net profit margin of about 7.2% compared to 8.4% previously[20] - Net profit for the period was 6,677 thousand MYR, a decline of 16.6% compared to 8,009 thousand MYR in the same period last year[46] - Total comprehensive income for the period was 7,839 thousand MYR, down 11.3% from 8,832 thousand MYR in the previous year[46] - Basic and diluted earnings per share decreased to 0.99 sen MYR from 1.19 sen MYR, representing a decline of 16.8%[46] Sales Performance - Sales of printable apparel decreased by approximately 4.4% to RM 75.3 million, with sales volume dropping to approximately 6.22 million units[13] - Revenue from gift products increased by approximately 7.4% to RM 17.4 million, driven by a sales volume increase to approximately 4.6 million units[14] - Wholesale revenue was 85,445 thousand MYR, down from 87,427 thousand MYR, while production revenue decreased from 7,603 thousand MYR to 7,288 thousand MYR[60][66] Costs and Expenses - Gross profit increased by approximately 2.5% to RM 29.1 million, with a gross margin of 31.4%, up from 29.9% in the previous year[9] - Selling and distribution costs decreased by approximately 11.3% to RM 4.9 million, attributed to lower employee and advertising costs[16] - Administrative and other operating expenses increased by approximately 11.5% to RM 14.5 million, mainly due to realized foreign exchange losses[17] - Financing costs increased by approximately 7,000 MYR or 24.1% to about 36,000 MYR compared to the same period last year, primarily due to higher lease liabilities interest[18] Assets and Liabilities - As of June 30, 2024, the group's current assets net value was approximately 120,700,000 MYR, an increase from 111,500,000 MYR as of December 31, 2023[24] - Total assets as of June 30, 2024, were 244,243 thousand MYR, a slight decrease from 241,847 thousand MYR at the end of 2023[47] - Total liabilities decreased to 39,858 thousand MYR from 45,301 thousand MYR, showing a reduction of 11.9%[62] - The group’s interest-bearing borrowings were approximately 5,300,000 MYR as of June 30, 2024, down from 5,600,000 MYR as of December 31, 2023[24] Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2024, were approximately 100,300,000 MYR, up from 93,200,000 MYR as of December 31, 2023[24] - Operating cash flow before changes in working capital was RM 11,566,000, down 3.3% from RM 11,958,000 in the previous year[49] - Net cash generated from operating activities was RM 11,186,000, a decline of 21.4% from RM 14,330,000 in the same period last year[49] - The company reported a net cash increase of RM 6,277,000 for the period, compared to RM 283,000 in the previous year[52] Investments and Acquisitions - The company acquired a 40% stake in Lordan Group Ltd. to enhance retail sales channels in China and introduce AI in production and sales processes[10] - On August 9, 2024, the group's associate, Lordan, completed the acquisition of a 51% stake in Beijing Yulong Shengshi Biotechnology Co., making it a non-wholly owned subsidiary[43] - The total consideration for the acquisition of Lordan was 57,218,250 HKD (approximately 34,139,000 MYR), with an initial cash payment of 5,000,000 HKD (approximately 2,983,000 MYR) already made[94] Shareholder Information - As of June 30, 2024, the directors and CEO collectively hold 439,600,000 shares, representing 70.0% of the company's equity[35] - MBV Capital Limited, controlled by the directors, holds 439,600,000 shares, equating to 70.0% of the total shares[38] - The company does not recommend any interim dividend for the period[42] Foreign Exchange and Other Income - Other income decreased by approximately 12.4% to RM 1.4 million, primarily due to reduced foreign exchange gains[15] - The company reported a foreign exchange gain of 672 thousand MYR for the period, compared to a gain of 1,302 thousand MYR in the previous year[46] - The company experienced a foreign exchange gain of RM 366,000, compared to a loss of RM 23,000 in the previous year[49] Future Outlook and Strategy - The company aims to maintain a healthy cash flow and solid financial position to seize revenue-enhancing opportunities amid a challenging economic outlook[11] - The group continues to evaluate and explore new business opportunities in Asian countries for sustainable growth and long-term shareholder benefits[23]
大人国际(01957) - 2024 - 中期财报