Financial Performance - The Group's revenue increased by 65.1% to approximately HK$264.5 million in the first half of 2024, compared to approximately HK$160.3 million in the same period of 2023[6]. - The gross profit margin rebounded to 46.9% during the Review Period, up from 39.3% in the first half of 2023[6]. - Profit attributable to owners of the Company was approximately HK$31.3 million, compared to a loss of approximately HK$18.8 million in the first half of 2023[6]. - The overall gross profit margin for the same period amounted to approximately HK$124.2 million, reflecting a significant increase of approximately 97.3% from HK$62.9 million in the corresponding period of 2023[12]. - The reported net profit for the first half of 2024 was approximately HK$31.3 million, compared to a net loss of approximately HK$18.8 million in the first half of 2023[13]. - The increase in revenue was driven by a gradual recovery in demand for apparel brands across various regional markets, leading to an increase in customer orders[9]. - Revenue for the six months ended June 30, 2024, was HK$264,519,000, an increase from HK$160,255,000 in the same period of 2023, representing a growth of 65%[39]. - Gross profit for the same period was HK$124,174,000, compared to HK$62,926,000 in 2023, indicating a 97% increase[39]. - Profit before tax for the period was HK$37,848,000, a significant recovery from a loss of HK$18,067,000 in the previous year[39]. - The total comprehensive income for the period as of June 30, 2024, was HK$21,313,000, while the total comprehensive loss for the same period in 2023 was HK$28,615,000[42]. Operational Efficiency - The Group successfully transitioned to a profitable position by leveraging its global network of sales and production facilities[6]. - New plants in Bangladesh, Central America, and Eastern Europe have been operating smoothly, improving operational efficiency and reducing costs[6]. - The Group has established an extensive global network of sales and production facilities at strategic locations over the past several years[5]. - The Group has transitioned from the investment stage to the harvesting period, focusing on consolidating its business foundation and improving operational efficiency[16]. Market Conditions - The Chinese Mainland and the United States recorded GDP growth of 5.0% and 2.1% year-on-year, respectively, in the first half of 2024[5]. - Overall retail sales in the United States increased by 2.5% in sales orders between April and June 2024 compared to the same period last year[5]. - The improving global economic trend since the second half of 2023 has bolstered consumer sentiment and industry development[6]. - The overall consumer confidence index in the United States rose to 100.3 in July 2024, indicating improving market conditions[15]. - Retail sales in the apparel and accessories sector in the U.S. saw a 0.6% increase in June 2024 compared to the previous month[15]. Financial Position - As of June 30, 2024, the Group had net current assets of approximately HK$41.7 million, an increase of 46.3% from approximately HK$28.6 million as of December 31, 2023[14]. - Cash and cash equivalents increased to approximately HK$56.8 million as of June 30, 2024, up 66.5% from approximately HK$34.2 million as of December 31, 2023[14]. - The current ratio improved to approximately 1.27 times as of June 30, 2024, compared to approximately 1.19 times as of December 31, 2023[14]. - The gearing ratio decreased to approximately 19.2% as of June 30, 2024, down from approximately 24.7% as of December 31, 2023[14]. - The Group's interest-bearing bank borrowings were approximately HK$13.4 million as of June 30, 2024, a reduction of 41.5% from approximately HK$23.1 million as of December 31, 2023[14]. Shareholder Information - No interim dividend is recommended for the six months ended June 30, 2024, consistent with the previous year[20]. - The Group maintained a public float of no less than 25% as required under the Listing Rules[20]. - As of June 30, 2024, Mr. Barry Chan and Ms. Candy Law hold 1,308,000,000 shares of the Company, representing 65.4% of the total issued share capital[23]. - Mr. Barry Chan owns 51% and Ms. Candy Law owns 49% of Charming International, which holds the aforementioned shares[25]. - The interests of substantial shareholders include Charming International, which holds 1,308,000,000 shares, equating to 65.4% of the Company's total issued share capital[28]. Risk Management and Future Outlook - The Group remains cautiously optimistic about its outlook despite challenges such as high interest rates and uncertain trade relationships[15]. - The Group aims to minimize borrowings and enhance liquidity flexibility to strengthen resilience against market fluctuations[16]. - The Group will actively explore new business opportunities and diversify its operations to create long-term shareholder value[16]. - The Group's management expressed confidence in future performance despite known and unknown risks, as indicated in forward-looking statements[35]. Environmental Commitment - Solar panels have been installed in factories in Mainland China to reduce carbon emissions, emphasizing the Group's commitment to environmental protection[16]. Corporate Governance - The Company has established an Audit Committee comprising three independent non-executive Directors to oversee financial reporting and internal controls[30]. - The Audit Committee is responsible for safeguarding the Group's assets and ensuring effective risk management systems[30].
常达控股(01433) - 2024 - 中期财报