Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 55,697 thousand, a decrease of 21.9% compared to HKD 71,206 thousand for the same period in 2023[2] - Gross profit for the same period was HKD 14,391 thousand, down from HKD 23,280 thousand, reflecting a decline in profitability[2] - The net profit for the six months ended June 30, 2024, was HKD 127 thousand, significantly lower than HKD 48,658 thousand in the previous year, indicating a substantial drop in earnings[3] - Total comprehensive income for the period was HKD 154 thousand, compared to HKD 43,864 thousand in the prior year, showing a decrease in overall financial performance[3] - The group reported a profit of HKD 127,000 for the six months ended June 30, 2024, compared to HKD 48,658,000 in 2023, representing a significant decrease[21] - The group's overall revenue decreased by approximately 21.8%, with a gross profit margin of 25.8% compared to 32.7% in the previous year[42] Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to HKD 442,672 thousand, an increase from HKD 409,733 thousand as of December 31, 2023[4] - Current assets decreased to HKD 79,334 thousand from HKD 94,375 thousand, indicating a reduction in liquidity[4] - Total liabilities increased to HKD 171,746 thousand from HKD 147,369 thousand, reflecting a rise in financial obligations[5] - The total assets for the group as of June 30, 2024, were HKD 522,006,000, with total liabilities of HKD 239,616,000[14] - The company reported a significant reduction in administrative expenses to HKD 44,886 thousand from HKD 66,694 thousand, indicating cost-cutting measures[2] - Current liabilities increased from approximately HKD 53,000,000 to HKD 92,400,000 between December 31, 2023, and June 30, 2024[42] Revenue Breakdown - Revenue from Hong Kong for the six months ended June 30, 2024, was HKD 52,901,000, a decrease of 14.0% compared to HKD 61,559,000 in 2023[16] - Revenue from Macau for the same period was HKD 2,796,000, down 71.0% from HKD 9,647,000 in 2023[16] - Customer A generated no revenue in 2024, while Customer B contributed HKD 14,357,000, and Customer C and D contributed HKD 7,959,000 and HKD 7,151,000 respectively[17] - The gross profit for the wholesale and retail segment of beauty, health, and lifestyle products was HKD 14,104,000, while the gross profit for wholesale technical products was HKD 287,000, leading to a total gross profit of HKD 14,391,000 for the six months ended June 30, 2024[14] E-commerce and Digital Transformation - The company is engaged in the wholesale and retail of beauty, health, and lifestyle products, with a focus on e-commerce operations in Hong Kong and Macau[7] - The company launched "HKMALL," a global e-commerce platform covering 34 countries and 41 market platforms[35] - The group has prepared for the "new normal" in online shopping, with its cross-border e-commerce platform, HKMALL, ready to meet changing consumer habits[42] - The online sales in Hong Kong accounted for 7.8% of total retail sales in June 2024, indicating a shift towards e-commerce[33] - The newly developed "Hong Kong Cat" 2.0 platform provides customers with a personalized shopping experience, enhancing the speed and transparency of digital sales[36] Cost Management - The group has implemented various cost control measures to tighten operational costs[11] - Employee costs were approximately HKD 23,800,000, significantly reduced from HKD 29,900,000 in 2023[49] - The operating cash outflow for the period was approximately HKD 20,100,000, compared to HKD 35,100,000 in the previous year[44] Financing and Support - The group is actively negotiating with external parties and banks to secure new financing sources to improve liquidity and operational funding[11] - The group’s major shareholder has committed to continue providing financial support for daily operations to meet third-party financial obligations for at least the next 12 months[11] - The company is considering investments and capital asset plans to improve profitability and liquidity[50] Market Trends and Future Outlook - The cosmetics market is projected to grow at an annual rate of 2.2% from 2024 to 2028[33] - The group aims to utilize digital transformation to improve financial performance and achieve long-term sustainable growth[42] - The group is committed to expanding its cross-border wholesale business, significantly promoting overseas suppliers' product sales in the domestic market[39] Employee and Governance - As of June 30, 2024, the company employed 129 full-time and part-time employees, a decrease from 187 in 2023[49] - The company has established an audit committee, which held two meetings during the period to review external audits and risk management[55]
卓悦控股(00653) - 2024 - 中期业绩