Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 63,159,000, a decrease of 36.8% compared to HKD 100,004,000 for the same period in 2023[5] - Gross profit for the period was HKD 4,054,000, down 76.2% from HKD 17,072,000 in the previous year[5] - Operating loss increased to HKD 20,780,000 from HKD 11,568,000, reflecting a significant decline in profitability[5] - The company reported a loss before tax of HKD 21,521,000, compared to a loss of HKD 12,034,000 in the same period last year[5] - The company recorded a comprehensive loss of HKD 21,205,000 for the period, compared to HKD 12,043,000 in the previous year[6] - Net loss for the period was approximately HKD 21.5 million, an increase of 79.2% year-on-year[38] - The loss attributable to the company's owners for the six months ended June 30, 2024, was approximately HKD 21.5 million, an increase of 79.2% compared to a loss of approximately HKD 12.0 million for the same period in 2023[51] Assets and Liabilities - Total assets decreased to HKD 79,338,000 from HKD 101,131,000, indicating a reduction in the company's asset base[7] - Current liabilities decreased slightly to HKD 20,609,000 from HKD 19,763,000, showing a stable short-term financial position[7] - Net assets decreased to HKD 63,613,000 from HKD 84,818,000, reflecting a decline in shareholder equity[7] - The company incurred lease liabilities of HKD 2.36 million as of June 30, 2024, down from HKD 3.60 million as of December 31, 2023[31] - The company’s total liabilities included trade payables of HKD 2,444,000, up from HKD 1,452,000 at the end of 2023[29] - As of June 30, 2024, the total cash and cash equivalents, total liabilities, and shareholders' equity were approximately HKD 9.1 million, HKD 35.4 million, and HKD 63.6 million, respectively[54] Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2024, is HKD 3,402,000, a significant improvement compared to a cash outflow of HKD 10,766,000 for the same period in 2023[12] - The company reported a net cash outflow from financing activities of HKD 4,640,000 for the six months ended June 30, 2024, compared to an inflow of HKD 2,027,000 in the previous year[12] - The cash and cash equivalents at the end of the period decreased to HKD 9,098,000 from HKD 10,337,000 at the beginning of the period[12] Inventory and Sales - Inventory levels decreased to HKD 37,709,000 from HKD 47,501,000, indicating a reduction in stock on hand[7] - Sales of handbags accounted for HKD 62,558,000, down 35.0% from HKD 96,336,000 in the previous year[18] - Handbags accounted for over 99.1% of total revenue, with sales from unused products dropping from HKD 76.4 million (76.4% of total revenue) to HKD 47.6 million (75.3% of total revenue)[41] - The cost of sales was approximately HKD 59.1 million, a decrease of 28.7% compared to the previous year, aligning with the revenue decline[42] - Total inventory as of June 30, 2024, was approximately HKD 37.7 million, down from HKD 47.5 million as of December 31, 2023[44] Business Outlook and Strategy - The company has not provided specific guidance for future performance or new product developments in the report[4] - The outlook indicates that local consumer sentiment may improve due to government initiatives to stimulate the tourism and retail sectors, although uncertainties such as rising unemployment and geopolitical tensions may pose challenges[60] - The company plans to adopt a more prudent business policy to navigate unprecedented challenges while seeking opportunities in the luxury handbag and accessories trade[60] - The company continues to focus on its core business of retailing handbags and fashion accessories, with no significant changes in business nature reported during the period[13] Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code during the reporting period, except for some board meeting notices being issued with less than 14 days' notice[68] - The Audit Committee has reviewed the financial statements for the six months ended June 30, 2024, discussing audit, risk management, internal control, and financial reporting matters[73] - The Remuneration Committee has established the remuneration policies for directors and senior management, providing recommendations to the board[74] - The Nomination Committee has been formed with a majority of independent non-executive directors[75] - The board has confirmed the effectiveness of the risk management and internal control systems during the reporting period[76] - The group has established a formal whistleblowing policy to encourage employees to raise concerns responsibly without fear of retaliation[76] Employee and Shareholder Information - As of June 30, 2024, the company had a total of 28 employees, down from 37 employees as of December 31, 2023[52] - The company did not declare or pay any dividends during the period, consistent with the previous year[24] - The board has decided not to declare any interim dividend for the six months ended June 30, 2024, consistent with the previous period where no dividend was declared[77]
米兰站(01150) - 2024 - 中期财报