Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 468.36 million, a decrease of 7.3% compared to HKD 505.43 million for the same period in 2023[2] - Gross profit for the same period was HKD 202.01 million, down 14.2% from HKD 235.43 million year-on-year[2] - The company reported a loss for the period of HKD 54.70 million, compared to a loss of HKD 7.40 million in the previous year, indicating a significant increase in losses[2] - Basic and diluted loss per share was HKD 0.13, compared to HKD 0.02 for the same period in 2023[3] - The company reported a total comprehensive loss of HKD 54,698,000 for the six months ended June 30, 2024, compared to a loss of HKD 7,404,000 for the same period in 2023, indicating a significant increase in losses[6] - The company reported a net loss attributable to equity holders of HKD 50,771,000, compared to a loss of HKD 6,261,000 in the same period last year, indicating a significant increase in losses[26] - The net loss for the period was HKD 54.7 million, compared to a net loss of HKD 7.4 million for the same period in 2023[53] Financial Position - Current ratio improved to 1.20 from 1.01 as of December 31, 2023, indicating better short-term financial health[2] - The debt-to-asset ratio increased to 66% from 59% year-on-year, reflecting a higher level of leverage[2] - Total assets decreased to HKD 822.44 million from HKD 912.17 million as of December 31, 2023[5] - Total liabilities decreased to HKD 659.28 million from HKD 693.52 million, showing a reduction in overall debt[5] - As of June 30, 2024, the company's total equity amounted to HKD 163,158,000, a decrease from HKD 218,644,000 as of January 1, 2024[6] - The total net book value of the company is HKD 157,482,000, a decrease from HKD 175,123,000 as of December 31, 2023, representing a decline of approximately 10.1%[29] Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2024, was HKD 33,272,000, a decrease of 70% from HKD 111,249,000 in the same period of 2023[7] - The company incurred a net cash outflow from investing activities of HKD 17,524,000 for the six months ended June 30, 2024, compared to an outflow of HKD 14,442,000 in the previous year[7] - The company’s cash and cash equivalents decreased significantly, with a net decrease of HKD 76,680,000 for the six months ended June 30, 2024[7] - As of June 30, 2024, cash and cash equivalents amounted to HKD 47.6 million, a decrease of HKD 25.7 million compared to December 31, 2023[56] Revenue Breakdown - Revenue from external customers totaled HKD 468,361,000, with contributions from Mainland China, Macau, and Hong Kong[18] - The total segment revenue for the six months ended June 30, 2024, was HKD 483,941,000, with a significant portion from Macau[18] - Retail revenue decreased to HKD 375,481,000 from HKD 464,778,000, representing a decline of 19.2%[20] - Revenue from mainland China decreased to HKD 202.0 million, reflecting an 11.5% decline year-on-year[48] - Revenue from Macau retail stores decreased to HKD 223.3 million, a slight decline of 1.0%[48] - Revenue decline included a reduction of HKD 26.1 million in mainland China, representing a negative growth rate of 11.4%[45] - Macau, Hong Kong, and Taiwan collectively recorded a year-on-year revenue decrease of HKD 8.6 million, with negative growth rates of 16.6%[45] Expenses and Costs - The total expenses for the six months ended June 30, 2024, were HKD 516,112,000, slightly up from HKD 506,820,000 in 2023, indicating a marginal increase in operational costs[23] - Employee benefits expenses rose to HKD 114,341,000 from HKD 106,635,000, an increase of 7.9%[23] - Operating expenses increased, with sales and marketing expenses rising to HKD 198.0 million, a 5.6% increase year-on-year[51] - The company incurred lease-related expenses of HKD 27,640,000 for the six months ended June 30, 2024, compared to HKD 19,974,000 for the same period in 2023, representing an increase of approximately 38.3%[30] Market Conditions and Challenges - The group faced challenges due to slow post-COVID recovery, high interest rates, inflation, and unfavorable macroeconomic conditions[45] - The geopolitical tensions and economic weakness in China further exacerbated the challenging market conditions[45] Corporate Governance and Compliance - The company continues to operate under the same accounting policies as in the previous financial year, with no significant changes expected to impact future periods[9] - The company’s financial statements are prepared in accordance with International Financial Reporting Standards, ensuring compliance and transparency[9] - The company has complied with the corporate governance code during the six months ended June 30, 2024, ensuring effective accountability[72] - The audit committee has reviewed the accounting principles and practices adopted by the company, discussing risk management and internal controls[73] Shareholder Information - Major shareholders include Gold Star Fashion Limited and Ms. Zheng Qionglin, each holding 300,000,000 shares, representing 75% ownership[67] - The company has not issued any new ordinary shares during the period, maintaining a total of 400,000,000 shares with a par value of HKD 4,000,000 as of June 30, 2024[34] - The group did not recommend any interim dividend for the six months ended June 30, 2024[40] - No interim dividend has been recommended for the six months ended June 30, 2024, compared to no dividend declared for the same period in 2023[71]
尚晋国际控股(02528) - 2024 - 中期业绩