Financial Performance - Total revenue for the six months ended June 30, 2024, was approximately HKD 710,313,000, a decrease of 12.3% from HKD 810,244,000 in the same period last year[4]. - Operating expenses for the same period were approximately HKD 484,046,000, down 3.6% from HKD 502,030,000 year-on-year[4]. - Gross profit from non-banking and financial operations was approximately HKD 224,068,000, a decrease of 28.1% from HKD 311,493,000 in the previous year[4]. - EBITDA for the six months ended June 30, 2024, was approximately HKD 83,843,000, down 31.7% from HKD 122,763,000 in the prior year[4]. - Net profit after tax for the period was approximately HKD 3,708,000, a significant decrease of 85.9% from HKD 26,237,000 year-on-year[4]. - The revenue for the first half of 2024 was HKD 40,068,000, a decrease of approximately 50.5% compared to HKD 80,979,000 in the same period of 2023[19]. - The net loss for the first half of 2024 was HKD 3,049,000, compared to a net profit of HKD 797,000 in the same period of 2023[19]. - The company reported a profit of HKD 3,708,000 for the period, a significant decline of 85.8% from HKD 26,237,000 in the same period last year[89]. - The profit attributable to owners of the company for the six months ended June 30, 2024, was HKD 7,024,000, a decrease of 64.8% from HKD 19,921,000 in the same period of 2023[127]. Revenue Breakdown - Revenue from the subsidiary Zhuhai Rossini Watch Industry Co., Ltd. was HKD 148,373,000, a decrease of 5.9% from HKD 157,638,000 in the previous year[8]. - Rosini's physical store sales amounted to approximately HKD 62,324,000 in the first half of 2024, a decrease of 29.1% compared to the same period last year[11]. - E-commerce sales for Rosini decreased from HKD 53,886,000 to approximately HKD 42,999,000, representing a decline of about 20.2% year-on-year[11]. - The revenue for EBO Group in the first half of 2024 was HKD 92,869,000, down 17.8% from HKD 113,029,000 in the same period last year[14]. - EBO Group reported a net loss of HKD 16,905,000 for the first half of 2024, compared to a net profit of HKD 13,034,000 in the previous year[14]. - EBO Group's e-commerce sales revenue was approximately HKD 28,880,000 in the first half of 2024, showing a slight decline compared to the previous year[17]. - EBO Group's total property rental income for the first half of 2024 was HKD 6,856,000, a decrease of 0.6% from HKD 6,900,000 in the same period last year[17]. - The total revenue for other foreign brands, including Kunlun and The Dreyfuss Group Limited, was HKD 102,779,000, a slight decrease from HKD 106,983,000 in the same period of 2023[21]. Assets and Liabilities - Total assets as of June 30, 2024, were HKD 17,545,644,000, an increase of 6.1% from HKD 16,531,006,000 at the end of 2023[5]. - Total liabilities increased by 11.1% to HKD 13,517,434,000 from HKD 12,165,712,000 at the end of 2023[5]. - The total equity decreased by 7.7% to HKD 4,028,210,000 from HKD 4,365,294,000 year-on-year[5]. - The bank's total assets increased to HKD 12,600,383,000, up HKD 1,304,350,000 from December 31, 2023[27]. - The bank's interest and dividend income decreased by 1.0% to HKD 138,236,000 due to a slight decline in key interest rates[26]. - Total liabilities increased to HKD 13,517,434,000 as of June 30, 2024, from HKD 12,165,712,000 as of December 31, 2023, primarily due to an increase in accounts payable[54]. Operational Strategies - Rosini is focusing on product refinement and optimizing operations through data-driven strategies to enhance efficiency[12]. - Rosini is collaborating with external influencers to enhance e-commerce marketing effectiveness and reach target audiences more efficiently[13]. - EBO Group is adjusting its e-commerce strategy to focus on sustainable growth and high-quality shopping experiences[17]. - The company is focusing on cost control by reducing administrative and operational expenses, including advertising costs and streamlining personnel[20]. - The company is actively expanding its overseas market presence through exhibitions and online platforms to enhance brand promotion[20]. - Kunlun aims to reduce its global sales points from over 400 at the end of 2022 to 250 by the end of 2024, aligning with its brand value and production capacity[22]. Investments and Financial Instruments - The group’s investment in equity instruments listed in Hong Kong amounts to HKD 179,826,000, related to Minxin, and HKD 17,212,000 related to Guancheng Datong[53]. - The group’s investment policy includes strict adherence to investment procedures, regularly reviewed by the investment committee[43]. - The fair value of financial assets and liabilities is determined based on market prices at the reporting date, ensuring accurate valuation[165]. - The fair value of financial assets measured at fair value through profit or loss was HKD 32,410,000 as of December 31, 2023, with no initial balance reported for June 30, 2024[173]. - The fair value of derivative financial assets was HKD 4,244,000 as of June 30, 2024, reflecting current forward exchange rates[167]. Corporate Governance - The company has maintained compliance with corporate governance codes, although two independent non-executive directors were absent from the annual general meeting held on May 28, 2024[79]. - The Audit Committee has reviewed the unaudited financial statements for the six months ending June 30, 2024, ensuring adherence to accounting standards and internal controls[81]. - The company’s remuneration committee is responsible for establishing transparent policies regarding the compensation of all directors and senior management[82]. - The company has adopted a standard code for securities trading by directors, ensuring compliance with ethical trading practices[80]. Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2024, was HKD (684,330,000), a significant improvement from HKD (2,946,989,000) in the same period of 2023[97]. - The net cash used in investing activities amounted to HKD (1,284,184,000), compared to HKD (540,004,000) in the previous year, indicating increased investment outflows[97]. - The net cash used in financing activities was HKD (68,260,000), down from HKD (153,694,000) in the prior year, reflecting a reduction in financing costs[97]. - The company provided a corporate guarantee for bank financing up to HKD 55,000,000 as of June 30, 2024, unchanged from December 31, 2023[160]. Employee and Shareholder Information - The company employed approximately 2,280 full-time employees in Hong Kong and mainland China as of June 30, 2024[68]. - As of June 30, 2024, the total issued share capital of the company is 4,351,888,206 shares, with major shareholders holding significant stakes: 31.71% by Xin Jing International Limited and 37.83% by Chao Feng Limited[75]. - The largest shareholder, Han Guolong, holds 69.65% of the total shares, which includes 3,500,000 shares directly owned and substantial interests through related entities[75]. - The company has a family ownership structure, with Han Guolong and his spouse Lin Shuying collectively owning 3,030,979,515 shares, representing 69.65% of the total equity[76].
冠城钟表珠宝(00256) - 2024 - 中期财报