Financial Performance - The Group's revenue for the six months ended 30 June 2024 was HK$280.8 million, a 23.6% increase compared to HK$227.2 million in the same period of 2023[12][13]. - Gross profit reached HK$32.1 million, reflecting a 3.2% increase from HK$31.1 million in 2023, while the gross profit margin decreased from 13.7% to 11.4%[12][16]. - Loss attributable to equity holders was HK$12.2 million, compared to a loss of HK$4.5 million in 2023, with basic and diluted loss per share at HK1.35 cents[12][13]. - The U.S. and Europe contributed 86.3% of segment revenue, totaling HK$242.4 million, up from 83.3% in 2023[15]. - Total revenue for the six months ended June 30, 2024, was HK$280,835,000, compared to HK$227,218,000 in 2023, marking an overall increase of 23.6%[85][91]. - Loss before tax for the period was HK$12,168,000, compared to a loss of HK$4,518,000 for the same period in 2023[96][98]. Financial Position - The report includes the condensed consolidated statement of financial position as of June 30, 2024, providing insights into the Group's assets and liabilities[9]. - As of June 30, 2024, the Group's cash and bank balances were HK$133.5 million, an increase from HK$120.2 million as of December 31, 2023[28]. - The Group's working capital represented by net current assets amounted to HK$123.7 million, down from HK$132.6 million as of December 31, 2023[28]. - The current ratio decreased to 2.1 from 2.6 as of December 31, 2023[28]. - Net assets decreased to HK$165,277,000 as of June 30, 2024, down from HK$177,844,000 at the end of 2023[71]. - The Group's non-current assets as of June 30, 2024, were valued at HK$60,189,000, a slight decrease from HK$62,937,000 as of December 31, 2023[91]. Cash Flow - The Group's cash flow statement for the six months ended June 30, 2024, is also presented, highlighting cash inflows and outflows during the period[10]. - Net cash generated from operating activities for the six months ended June 30, 2024, was HK$16,088,000, compared to a net cash used of HK$12,774,000 in the same period of 2023[73]. - The company reported a net increase in cash and cash equivalents of HK$13,692,000 for the six months ended June 30, 2024, compared to an increase of HK$34,297,000 in 2023[73]. - Cash and cash equivalents at the end of the period amounted to HK$133,509,000, slightly up from HK$132,049,000 at the end of June 2023[73]. Expenses and Costs - Administrative and other operating expenses increased by 22.2% to HK$35.2 million, primarily due to one-off restructuring costs of approximately HK$3.9 million related to the cessation of production at the Heshan Facility[18][24]. - Finance expenses rose by 30.8% to HK$5.1 million, driven by increased interest expenses on borrowings due to rate hikes[20][26]. - Selling and distribution expenses as a percentage of garment manufacturing and trading revenue increased to 1.9% from 1.6% in 2023, attributed to higher logistics costs and increased sample exploitation fees[19][25]. - Selling and distribution expenses increased to HK$5,268,000, up from HK$3,567,000 in the previous year, indicating higher marketing costs[69]. - Administrative and other operating expenses rose to HK$35,161,000, compared to HK$28,828,000 in the same period last year[69]. Corporate Governance - The Company has undergone changes in its board of directors, with several members being removed or appointed in early 2024[2]. - The Company has complied with all provisions of the Corporate Governance Code throughout the six months ended June 30, 2024, except for Code C.2.1[63]. - Following the removal of Ms. Ma Xiaoqiu as executive Director, the Company has not appointed a Chairman, and the role has been performed by all executive Directors[63]. - The Company appointed Ms. Chiu Hoi Shan as an independent non-executive Director on May 7, 2024, re-compliance with Listing Rules was achieved[65]. - The Company has adopted a code of conduct regarding directors' securities transactions, and all directors confirmed compliance during the review period[66]. Strategic Focus and Outlook - The Group will continue to focus on its existing garment manufacturing and trading business while monitoring macro-environmental impacts[48]. - The management will adopt a prudent strategy for securities investment due to the volatile securities environment[47]. - The Group is committed to achieving long-term sustainable growth to maximize returns for its shareholders[48]. - Global inflation is expected to remain at a relatively high level, which is unfavorable for the Group's financial performance[47]. - The geopolitical situation and the outcome of the US 2024 Presidential Election are expected to influence the Group's performance as an exporter[47]. Employee and Operational Changes - The number of full-time employees decreased to 214 from 400 as of December 31, 2023, due to a strategic plan to streamline operations[39]. - Key management personnel compensation decreased to HK$378,000 for the six months ended June 30, 2024, from HK$1,066,000 in the same period of 2023, a decline of approximately 64.6%[118]. - The management team has ceased production in Mainland China and will seek new manufacturing partners or invest in self-owned factories in other countries as necessary[47]. Shareholder Information - The stock code for the Company is 643, with a board lot size of 10,000 shares, relevant for trading purposes[8]. - As of June 30, 2024, MARS Worldwide Holdings Limited holds 411,293,396 ordinary shares, representing approximately 45.71% of the issued share capital[57]. - The Board does not recommend an interim dividend for the six months ended 30 June 2024, consistent with the previous year where no dividend was declared[123].
恒富控股(00643) - 2024 - 中期财报