Financial Performance - Revenue for the first half of the fiscal year 2024 decreased to approximately HKD 40.1 million from about HKD 82.5 million in the same period of fiscal year 2023, representing a decline of approximately 51.5%[1] - Gross profit margin fell from approximately 53.4% in the first half of fiscal year 2023 to about 48.5% in the first half of fiscal year 2024, with gross profit decreasing from approximately HKD 44.1 million to about HKD 19.4 million[1] - The loss attributable to owners of the company for the first half of fiscal year 2024 was approximately HKD 5.3 million, compared to a profit of about HKD 1.3 million in the same period of fiscal year 2023[1] - Basic and diluted loss per share for the first half of fiscal year 2024 was approximately HKD 1.48, while the basic and diluted earnings per share for the first half of fiscal year 2023 was approximately HKD 0.36[1] - Total comprehensive loss for the period amounted to approximately HKD 13.3 million, compared to a total comprehensive income of about HKD 8.7 million in the same period of the previous year[3] Asset and Liability Changes - Non-current assets decreased from approximately HKD 154.7 million as of December 31, 2023, to about HKD 141.8 million as of June 30, 2024[4] - Current assets decreased from approximately HKD 501.3 million as of December 31, 2023, to about HKD 465.5 million as of June 30, 2024[4] - Current liabilities decreased from approximately HKD 393.2 million as of December 31, 2023, to about HKD 386.7 million as of June 30, 2024[5] - Total equity attributable to owners of the company decreased from approximately HKD 167.8 million as of December 31, 2023, to about HKD 154.5 million as of June 30, 2024[6] Cash Position and Financing - The company reported a net cash position of approximately HKD 9.7 million in bank balances and cash as of June 30, 2024, compared to HKD 5.9 million as of December 31, 2023[4] - The company incurred financing costs of HKD 4,439,000 for the six months ended June 30, 2024, compared to HKD 4,840,000 in the previous year, showing a reduction of 8.3%[12] - The financing costs increased by approximately HKD 0.4 million or about 9.1% to approximately HKD 4.8 million in the first half of the 2024 fiscal year[37] Revenue Breakdown - Total revenue for the six months ended June 30, 2024, was HKD 82,542,000, compared to HKD 40,068,000 for the same period in 2023, representing a 106.5% increase[12] - The watch segment generated revenue of HKD 61,339,000, while the smart manufacturing segment contributed HKD 21,203,000, indicating strong performance in both areas[12] - Revenue from external customers in China was HKD 32,409,000 for the six months ended June 30, 2024, down from HKD 61,939,000 in the same period of 2023, indicating a decline of 47.6%[13] - The number of sales points in China as of June 30, 2024, was 618, with revenue from this segment decreasing by approximately 66.5% to HKD 18.7 million, accounting for about 81% of total watch business revenue[26] - Sales in the Hong Kong and Macau markets decreased by approximately 59% to HKD 1.8 million, representing about 8% of total watch business revenue[27] - Revenue from other markets, primarily in Southeast Asia and Europe, increased by approximately 127% to HKD 2.5 million, accounting for about 11% of total watch business revenue[28] Profitability and Cost Management - The company reported a pre-tax profit of HKD 1,011,000 for the six months ended June 30, 2024, compared to a pre-tax loss of HKD 6,711,000 for the same period in 2023[12] - The net profit after tax for the six months ended June 30, 2024, was HKD 1,271,000, a significant recovery from a net loss of HKD 5,337,000 in the previous year[18] - The total employee cost for the first half of the 2024 fiscal year was approximately HKD 25.6 million, down from approximately HKD 26.7 million in the same period of the 2023 fiscal year[43] - The distribution expenses decreased by approximately HKD 15.9 million or about 67.7% to approximately HKD 7.6 million, representing about 19% of total revenue in the first half of the 2024 fiscal year[35] Strategic Plans and Market Focus - The company plans to expand its online sales platforms overseas and enhance marketing efforts through exhibitions to attract foreign customers[25] - The company aims to diversify its product offerings and innovate in design and functionality to adapt to changing market conditions and improve profitability[25] - The company plans to enhance its product offerings by designing men's, women's, and couple's watch series that align with market trends and consumer preferences[44] - The company aims to increase brand awareness through various marketing strategies, targeting younger and more international consumers, and has restructured its online sales team to focus on international markets[44][46] - The company will actively participate in overseas exhibitions and visit international clients to expand its customer base[44] - The company is shifting its business model from a focus on the Chinese market to attracting more international clients[48] Governance and Compliance - The company has adhered to all corporate governance codes as of June 30, 2024[50] - All directors have confirmed compliance with the standard code of conduct regarding securities trading during the six months ending June 30, 2024[51] - The audit committee has been established to oversee financial reporting and internal controls, consisting of three independent non-executive directors[52] - The interim results for the six months ending June 30, 2024, have been reviewed and deemed compliant with applicable accounting standards[52] - No purchase, sale, or redemption of the company's listed securities occurred during the six months ending June 30, 2024[52] - The interim report will be published on the Hong Kong Stock Exchange and the company's website[52]
依波路(01856) - 2024 - 中期业绩