Financial Performance - Revenue for the first half of the fiscal year 2024 decreased by approximately 51.4%, from about HKD 82.5 million in the first half of fiscal year 2023 to about HKD 40.1 million[7]. - Gross profit decreased to approximately HKD 19.4 million in the first half of fiscal year 2024, down from about HKD 44.1 million in the same period of fiscal year 2023, resulting in a gross margin decline from approximately 53.4% to 48.5%[8]. - The loss attributable to equity holders for the first half of fiscal year 2024 was approximately HKD 5.3 million, compared to a profit of about HKD 1.3 million in the first half of fiscal year 2023[7]. - The basic and diluted loss per share for the first half of fiscal year 2024 was approximately HKD 0.0148, while the basic and diluted earnings per share for the first half of fiscal year 2023 were approximately HKD 0.0036[7]. - Total revenue decreased by approximately 51.4% from about HKD 82.5 million in the first half of the 2023 fiscal year to about HKD 40.1 million in the first half of the 2024 fiscal year[14]. - Watch business revenue decreased by approximately 62.5% from about HKD 61.3 million in the first half of the 2023 fiscal year to about HKD 23 million in the first half of the 2024 fiscal year[15]. - The company reported a net loss attributable to owners of HKD 5,337,000 for the six months ended June 30, 2024, compared to a profit of HKD 1,271,000 in the same period of 2023[50]. - The company reported a foreign exchange loss of HKD 8,103,000 for the period, compared to a gain of HKD 7,285,000 in the same period last year[50]. - The net loss after tax for the six months ended June 30, 2024, was HKD 5,337 thousand, compared to a profit of HKD 1,271 thousand for the same period in 2023[59]. Market and Strategic Focus - The company plans to expand its overseas market presence, particularly in Europe and Southeast Asia, to mitigate challenges in the Chinese retail market[9]. - The company is focusing on enhancing its online sales platforms and marketing efforts to adapt to changing consumer preferences post-pandemic[10]. - The company aims to diversify its product offerings and innovate in watch design and functionality to attract consumers[10]. - The group is enhancing brand awareness through various marketing strategies, targeting younger and international consumers, and has increased collaboration with social media influencers to promote products[35]. - The group is restructuring its online sales team and establishing a dedicated international market team to enhance overseas marketing capabilities and increase sales on international e-commerce platforms[37]. - The group plans to continue expanding its smart manufacturing business segment, which is expected to drive future revenue growth[58]. Revenue Breakdown - Revenue from the Chinese segment decreased by approximately 66.5% from about HKD 55.9 million in the first half of the 2023 fiscal year to about HKD 18.7 million in the first half of the 2024 fiscal year, accounting for approximately 81% of total watch business revenue[11]. - Revenue from the Hong Kong and Macau markets decreased by approximately 59% from about HKD 4.4 million in the first half of the 2023 fiscal year to about HKD 1.8 million in the first half of the 2024 fiscal year, representing about 8% of total watch business revenue[11]. - Revenue from other markets increased by approximately 127% from about HKD 1.1 million in the first half of the 2023 fiscal year to about HKD 2.5 million in the first half of the 2024 fiscal year, accounting for about 11% of total watch business revenue[12]. - Total revenue for the six months ended June 30, 2024, was HKD 40,068 thousand, with watch business contributing HKD 22,965 thousand and smart manufacturing business contributing HKD 17,103 thousand[58]. Cost Management - Distribution expenses decreased by approximately 67.7% from about HKD 23.5 million in the first half of the 2023 fiscal year to about HKD 7.6 million in the first half of the 2024 fiscal year, representing about 19% of total revenue[22]. - Administrative expenses increased by approximately 57.5% from about HKD 21.4 million in the first half of the 2023 fiscal year to about HKD 33.7 million in the first half of the 2024 fiscal year[23]. - The group aims to control administrative expenses and operational costs while exploring diverse revenue channels to achieve cost-saving goals[39]. Inventory and Employee Management - As of June 30, 2024, inventory decreased by approximately HKD 6.7 million to about HKD 318.1 million from about HKD 324.8 million as of December 31, 2023[25]. - As of June 30, 2024, the group had 399 full-time employees, down from 446 on December 31, 2023, with total employee costs for the first half of the fiscal year amounting to approximately HKD 25.6 million, compared to HKD 26.7 million in the same period of the previous fiscal year[32]. - The company’s total employee costs for the six months ended June 30, 2024, were HKD 25,649,000, a slight decrease from HKD 26,708,000 in the same period of 2023[67]. Financial Position - Total assets as of June 30, 2024, were HKD 465,518,000, a decrease from HKD 501,310,000 as of December 31, 2023[51]. - Current liabilities decreased to HKD 386,653,000 from HKD 393,243,000 at the end of 2023, reflecting a reduction of 1.5%[52]. - The company's net asset value as of June 30, 2024, was HKD 154,460,000, down from HKD 167,792,000 at the end of 2023, a decline of 7.9%[52]. - Trade receivables as of June 30, 2024, amounted to HKD 133,121,000, down from HKD 139,540,000 as of December 31, 2023, a decrease of 5%[71]. - The aging analysis of trade receivables showed that amounts overdue for more than 270 days increased to HKD 55,404,000 as of June 30, 2024, compared to HKD 39,590,000 as of December 31, 2023, an increase of 40%[73]. Shareholder Information - The group disclosed that Teguh Halim holds approximately 0.14% of the company's issued shares, with 6,000,000 shares owned[40]. - As of June 30, 2024, the company has a total of 360,257,512 shares issued[45]. - International Brand Limited holds 205,834,485 shares, representing approximately 57.14% of the total issued shares[43]. - The major shareholder, Chao Feng Limited, holds 217,634,485 shares, accounting for 60.41% of the total issued shares[43]. - The company has not implemented any share option plans since the previous plan expired on June 24, 2024[46]. Compliance and Governance - The audit committee, consisting of three independent non-executive directors, reviewed the interim results for the six months ended June 30, 2024[48]. - The company has complied with all corporate governance codes as per the listing rules during the reporting period[46]. - The company has established a standard code for securities trading by directors, which has been adhered to during the reporting period[47].
依波路(01856) - 2024 - 中期财报