Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 1,557 million, a decrease of 48.5% compared to HKD 3,025 million for the same period in 2023[2] - Gross profit for the same period was HKD 652 million, down 51.8% from HKD 1,352 million year-on-year[2] - The company reported a net loss attributable to shareholders of HKD 56 million, significantly improved from a loss of HKD 714 million in the previous year[2] - The operating loss for the group was HKD 85 million, compared to a loss of HKD 703 million in the previous year, showing an improvement in financial performance[20] - The company reported a basic loss attributable to shareholders of HKD 56 million for the six months ended June 30, 2024, compared to a loss of HKD 714 million for the same period in 2023, representing a significant improvement[27] - The basic loss per share for the six months ended June 30, 2024, was HKD (0.020), compared to HKD (0.252) for the same period in 2023, indicating a reduction in losses per share[27] - The gross margin for the period was 41.9%, a decline of 2.8 percentage points from 44.7% in the corresponding period, attributed to increased sales discounts due to a challenging market environment[42] - The company's operating expenses were approximately HKD 737 million, a decrease of 64% from HKD 2.055 billion in the corresponding period[43] Assets and Liabilities - The total assets decreased to HKD 904 million from HKD 5,762 million as of December 31, 2023[3] - The current liabilities net amount was approximately HKD 256 million, with no external borrowings reported[6] - The company has a net debt of HKD 1,684 million, with a cancellation of consolidation resulting in a gain of HKD 3,651 million[9] - The company’s total liabilities included a financing cost of HKD 22 million related to lease liabilities for the six months ended June 30, 2024[25] - Accounts payable and accrued expenses totaled HKD 334 million as of June 30, 2024, compared to HKD 1,307 million as of December 31, 2023, indicating a significant decrease[31] - Trade payables were HKD 79 million as of June 30, 2024, down from HKD 374 million as of December 31, 2023, reflecting a reduction of approximately 78.9%[31] Cash Flow and Financing - The company faced a net cash outflow of approximately HKD 363 million during the six months ended June 30, 2024[6] - The company reported a cash inflow of HKD 167 million from business operations after excluding lease liabilities and tax payments, while total cash outflows amounted to HKD 233 million due to lease repayments and interest[48] - The company had no external interest-bearing borrowings as of June 30, 2024, resulting in a debt-to-asset ratio of 0%[50] - The total financing costs amounted to HKD 22 million for the six months ended June 30, 2024, slightly down from HKD 23 million in the same period of 2023[25] Restructuring and Strategic Initiatives - The company is actively exploring various fundraising options, including joint ventures and asset sales, to improve liquidity[7] - The company is undergoing restructuring measures to minimize liabilities and has significant uncertainties regarding the success of these plans[8] - The company plans to prioritize the expansion of its licensing business and transform into an intellectual property management company, aiming to maximize the monetization of the Esprit brand sustainably[37] - The company is actively discussing strategic opportunities with potential partners to explore licensing its intellectual property rights[59] Operational Changes - The company has lost control over certain subsidiaries in Europe, leading to the cessation of their financial performance being consolidated into the group[12] - A Dutch subsidiary, Esprit Europe B.V., filed for bankruptcy on July 22, 2024, which will result in the cessation of its business operations[35] - Two Hong Kong subsidiaries, Esprit Regional Distribution Limited and Esprit Retail (Hong Kong) Limited, are undergoing voluntary liquidation, leading to the cessation of their business operations[36] - The company’s subsidiary in Macau was dissolved and liquidated as of March 25, 2024, after settling all outstanding external debts[11] - The company’s workforce has decreased to approximately 538 full-time equivalent employees as of June 30, 2024, down from about 2,250 a year earlier[53] Inventory and Receivables - Inventory as of June 30, 2024, was HKD 8 million, a dramatic decrease of 99% from HKD 1.522 billion in the corresponding period due to the cancellation of mergers[43] - The net trade receivables as of June 30, 2024, were HKD 9 million, down approximately 98% from HKD 516 million as of December 31, 2023, primarily due to the cancellation of mergers[44] - The company recognized an additional inventory provision of HKD 37 million for the six months ended June 30, 2024, due to the reassessment of inventory values[24] Dividends and Share Capital - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[26] - The company’s issued and paid-up share capital remained unchanged at 2,831 million shares with a par value of HKD 0.10 as of June 30, 2024[32] Audit and Governance - The audit committee consists of four independent non-executive directors, overseeing financial reporting and internal control effectiveness[60] - The company did not purchase, sell, or redeem any of its shares during the period[61] - The mid-term performance announcement is available on the company's website and will be sent to shareholders in September 2024[62]
思捷环球(00330) - 2024 - 中期业绩