迅捷环球控股(00540) - 2024 - 中期财报

Financial Highlights The company achieved significant revenue growth and a return to profitability in the first half of 2024, while maintaining a stable financial position and reducing borrowings Key Financial Performance for the Six Months Ended June 30, 2024 | Indicator | H1 2024 (Unaudited) (HK$ million, unless otherwise stated) | H1 2023 (Unaudited) (HK$ million, unless otherwise stated) | Change | | :--- | :--- | :--- | :--- | | Revenue | 281.9 | 179.7 | +56.9% | | Gross Profit | 30.4 | 20.1 | +51.2% | | Gross Margin | 10.8% | 11.2% | -0.4pp | | Profit/(Loss) Attributable to Owners of the Company | 5.3 | (4.0) | +232.5% | | Basic Earnings/(Loss) Per Share | HK$0.0088 | (HK$0.0066) | N/A | Key Financial Position as of June 30, 2024 | Indicator | June 30, 2024 (Unaudited) (HK$ million) | December 31, 2023 (Audited) (HK$ million) | Change | | :--- | :--- | :--- | :--- | | Net Current Assets | 70.8 | 58.8 | +20.4% | | Total Assets | 349.9 | 261.0 | +34.1% | | Borrowings | 35.6 | 65.9 | -46.0% | | Total Liabilities | 275.3 | 191.4 | +43.8% | | Equity Attributable to Owners of the Company | 74.6 | 69.5 | +7.3% | - Key financial ratios show the current ratio remained stable at 1.2 times, consistent with the end of 2023, while inventory, trade receivables, and trade payables turnover days all increased, reaching 49 days, 48 days, and 77 days respectively[5] Company Information This section provides details on the company's governance structure, key personnel, principal offices, and listing information - The report lists the company's board members and the composition and chairpersons of its committees, including audit, nomination, remuneration, and conflict handling, with Mr. Wong Chi Sum serving as the Chairman of the Board[6] - The company's principal place of business is in San Po Kong, Kowloon, Hong Kong, with its China headquarters in Humen Town, Dongguan City, and PricewaterhouseCoopers as its auditor[7] - The company's shares are listed on The Stock Exchange of Hong Kong Limited under stock code 540[9] Management Discussion and Analysis This section provides management's insights into the company's financial performance, liquidity, significant events, and future outlook for the reporting period Financial Review The Group achieved a turnaround to profitability in this reporting period, with revenue increasing by 56.9% due to higher existing customer orders, and net profit reaching HK$5.3 million despite a slight decrease in gross margin to 10.8% H1 2024 Performance Overview | Indicator | H1 2024 (HK$ million, unless otherwise stated) | H1 2023 (HK$ million, unless otherwise stated) | Reason for Change | | :--- | :--- | :--- | :--- | | Revenue | 281.9 | 179.7 | Increase in sales orders from existing customers | | Gross Margin | 10.8% | 11.2% | Increase in operating costs | | Administrative Expenses | 23.9 | 21.9 | Increase in employee benefit expenses and donations | | Finance Costs | 2.0 | 3.4 | Repayment of bank borrowings | | Net Profit/(Loss) | 5.3 | (4.0) | Revenue growth and cost control | - The Group recognized an exchange loss of approximately HK$0.5 million due to the strong performance of RMB, compared to an exchange gain of HK$1.0 million in the same period last year[11] Working Capital, Liquidity and Financial Resources The Group's financial position remains robust, with increased inventory and trade receivables supporting revenue growth, extended trade payables days, reduced bank borrowings, and ample cash and cash equivalents maintaining a stable current ratio Changes in Working Capital Items | Item | June 30, 2024 (HK$ million, unless otherwise stated) | December 31, 2023 (HK$ million, unless otherwise stated) | Reason for Change | | :--- | :--- | :--- | :--- | | Inventory | 93.0 | 43.3 | Increased stock for H2 deliveries | | Inventory Turnover Days | 49 days | 40 days | - | | Trade Receivables | 95.0 | 51.6 | Consistent with increased revenue | | Trade Receivables Turnover Days | 48 days | 47 days | Remained stable | | Trade Payables | 143.9 | 69.5 | Increased purchases | | Trade Payables Turnover Days | 77 days | 59 days | Delayed settlement with suppliers | - As of June 30, 2024, the Group's cash and cash equivalents were approximately HK$104.3 million, with the current ratio maintained at 1.2, indicating sufficient financial resources[13] - The Group adopts a prudent financial management strategy, closely monitoring liquidity to mitigate credit and foreign exchange risks, and did not use any financial instruments for hedging during the period[13] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the reporting period, the Group had no significant investments, capital commitments, or asset pledges, but entered into an agreement in May 2024 to dispose of its entire equity interest in Agile Sweater (Cambodia) Co., Ltd., which remains pending completion - In May 2024, Grand Gain Industrial (Hong Kong) Limited, a subsidiary of the Company, agreed to dispose of its 100% equity interest in its Cambodian subsidiary, Agile Sweater (Cambodia) Co., Ltd., which, upon completion, will cease to be a subsidiary of the Company, with the disposal still pending as of the report date[18] - As of June 30, 2024, the Group had no significant investments, material capital commitments, or asset pledges[14][16][18] Contingent Liabilities and Subsequent Events The previously disclosed potential tax risk for the Cambodian subsidiary was resolved in April 2024, and as of the reporting period end, the Group had no other significant contingent liabilities or material subsequent events - Regarding the potential tax risk for the Cambodian subsidiary, the Cambodian tax authority completed its assessment in April 2024 and informed the subsidiary that it had complied with tax regulations, thereby mitigating the potential tax risk[18][68] - As of June 30, 2024, the Group had no significant contingent liabilities, and no material subsequent events occurred from the end of the reporting period up to the date of this report[19][20] Prospects For the second half of 2024, the Group plans to enhance competitiveness by strengthening product innovation, streamlining production processes to shorten lead times, integrating procurement for cost reduction, and simplifying organizational structure to optimize expenses - To explore new business opportunities, the Group will continue to strengthen product innovation and enhance creativity[20] - In terms of production management, the Group will enhance operational efficiency and cost competitiveness by streamlining production processes and collaborating closely with customers to integrate production for better material pricing[20] - The Group will endeavor to simplify its organizational structure and various operational processes to achieve cost savings[20] Condensed Consolidated Financial Statements This section presents the Group's unaudited condensed consolidated financial statements, including the statement of comprehensive income, financial position, changes in equity, and cash flows for the interim period Condensed Consolidated Statement of Comprehensive Income This statement details the Group's revenue, costs, expenses, and profitability for the reporting period, showing a revenue of HK$281.9 million and a net profit of HK$5.3 million, marking a successful turnaround from loss Summary of Condensed Consolidated Statement of Comprehensive Income for the Six Months Ended June 30, 2024 | Item (HK$ thousand) | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 281,856 | 179,688 | | Gross Profit | 30,351 | 20,091 | | Operating Profit/(Loss) | 7,455 | (96) | | Profit/(Loss) Before Income Tax | 6,459 | (2,134) | | Profit/(Loss) for the Period | 5,273 | (3,970) | | Total Comprehensive Income/(Loss) | 5,089 | (4,575) | Condensed Consolidated Statement of Financial Position This statement reflects the Group's assets, liabilities, and equity at the end of the reporting period, with total assets increasing to HK$349.9 million, total liabilities to HK$275.3 million, and total equity slightly increasing to HK$74.6 million Summary of Statement of Financial Position (HK$ thousand) | Item | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 5,313 | 11,965 | | Current Assets | 344,593 | 248,996 | | Total Assets | 349,906 | 260,961 | | Equity and Liabilities | | | | Total Equity | 74,624 | 69,535 | | Non-current Liabilities | 1,470 | 1,224 | | Current Liabilities | 273,812 | 190,202 | | Total Liabilities | 275,282 | 191,426 | | Total Equity and Liabilities | 349,906 | 260,961 | Condensed Consolidated Statement of Changes in Equity This statement illustrates the changes in shareholders' equity from the beginning to the end of the period, with total equity increasing from HK$69.5 million to HK$74.6 million, primarily driven by the HK$5.3 million net profit for the period - As of January 1, 2024, total equity was HK$69,535 thousand, with a profit for the period of HK$5,273 thousand and an exchange difference (loss) of HK$184 thousand, resulting in total equity of HK$74,624 thousand as of June 30, 2024[25] Condensed Consolidated Statement of Cash Flows This statement summarizes cash inflows and outflows from operating, investing, and financing activities, showing a net cash outflow from operating activities of HK$21.1 million primarily due to increased inventory and trade receivables, with cash and cash equivalents at period-end totaling HK$104.3 million Summary of Cash Flow Statement (HK$ thousand) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (21,098) | (37,224) | | Net Cash From Investing Activities | 1,284 | 1,144 | | Net Cash Used in Financing Activities | (2,792) | (10,790) | | Net Decrease in Cash and Cash Equivalents | (22,606) | (46,870) | | Cash and Cash Equivalents at Beginning of Period | 127,115 | 160,720 | | Cash and Cash Equivalents at End of Period | 104,297 | 113,058 | Notes to the Unaudited Condensed Consolidated Interim Financial Statements This section provides detailed explanatory notes to the unaudited condensed consolidated interim financial statements, covering revenue, dividends, assets held for sale, and contingencies Note 6: Revenue and Segment Information The Group operates as a single operating segment, focusing on apparel supply chain services, with two major customers contributing 86% of total revenue during the reporting period - All of the Group's revenue is derived from its apparel supply chain services business, which is managed as a single operating segment[33][38][40] Revenue Contribution by Major Customers | Customer | H1 2024 Revenue (HK$ thousand) | H1 2023 Revenue (HK$ thousand) | | :--- | :--- | :--- | | Customer A | 156,810 | 83,407 | | Customer B | 85,712 | 71,198 | | Total | 242,522 | 154,605 | Note 11: Dividends The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2024 - The Board of Directors resolved not to declare an interim dividend for the six months ended June 30, 2024 (H1 2023: nil)[48][50] Note 13: Assets and Liabilities of Disposal Group Classified as Held for Sale Assets and liabilities related to the planned disposal of the Cambodian subsidiary, Agile Sweater (Cambodia) Co., Ltd., have been reclassified as 'held for sale,' with total assets of HK$13.473 million and total liabilities of HK$14.841 million as of the reporting period end - On May 13, 2024, the Group entered into an agreement to dispose of its 100% equity interest in its Cambodian subsidiary, Agile Sweater (Cambodia) Co., Ltd., with the transaction still pending completion[54][56] Assets and Liabilities Held for Sale (HK$ thousand) | Item | June 30, 2024 (HK$ thousand) | | :--- | :--- | | Assets Classified as Held for Sale | | | Property, Plant and Equipment | 4,271 | | Trade and Other Receivables | 6,648 | | Cash and Cash Equivalents | 2,554 | | Total Assets | 13,473 | | Liabilities Directly Associated with Assets Held for Sale | | | Accrued Wages and Other Payables, etc. | (14,841) | | Total Liabilities | (14,841) | Note 19: Contingencies The previously disclosed potential tax risk concerning the Cambodian subsidiary has been resolved, and as of the reporting period end, the Group has no other significant contingent liabilities - The Cambodian tax authority informed the relevant subsidiary in April 2024 that it had complied with tax regulations in all respects, thereby mitigating the previously disclosed potential tax risk[68][69] Other Information This section covers additional disclosures including directors' and major shareholders' interests, corporate governance practices, and the audit committee's review of the interim financial report Directors' and Chief Executives' Interests or Short Positions in Shares, Underlying Shares and Debenture This section details the shareholdings of directors and major shareholders, with Chairman Mr. Wong Chi Sum holding 54.54% of the company's issued share capital through his wholly-owned Sky Halo Holdings Limited, making him the controlling shareholder - Chairman Mr. Wong Chi Sum holds 327,242,688 ordinary shares through his wholly-owned Sky Halo Holdings Limited, representing 54.54% of the company's issued share capital[71] - Other major shareholders include Mr. Chan Hung Kwong holding 5.51% and Mr. Cheuk Lim Fai holding 5.03%[73] Corporate Governance The company largely complied with the Corporate Governance Code during the period, with one deviation where the roles of Chairman and Chief Executive Officer are combined under Mr. Wong Chi Sum, a structure the Board believes facilitates efficient decision-making - The company deviates from Corporate Governance Code provision C.2.1, as the roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Wong Chi Sum[74] - The Board believes the current structure does not impair the balance of power and accountability and facilitates prompt decision-making, and the company will continue to consider the feasibility of appointing an independent Chief Executive Officer[74] Audit Committee and Interim Dividend The Audit Committee, comprising four independent non-executive directors, has reviewed the interim financial report and found it properly prepared and disclosed, while the Board has resolved not to declare an interim dividend for the period - The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2024, and considers them to be properly prepared and disclosed[75] - The Board of Directors has resolved not to declare an interim dividend for the six months ended June 30, 2024[75]