Financial Performance - Revenue for the six months ended June 30, 2024, was HK$265 million, a decrease of 11% compared to HK$298 million for the same period in 2023[5] - Gross profit for the same period was HK$130 million, down 17% from HK$157 million in 2023, resulting in a gross margin of 49%, a decrease of 4 percentage points[5] - Loss from operating activities was HK$48 million, compared to a loss of HK$77 million in the previous year, indicating a 37% improvement[5] - Loss attributable to owners of the Company was HK$52 million, an improvement from a loss of HK$82 million in 2023, resulting in a net margin of negative 20% (2023: negative 28%) [15] - Loss before tax was HK$51.7 million, compared to a loss of HK$82.1 million in the previous period[22] - EBITDA improved by HK$15.2 million or 43% to a negative HK$20.6 million, mainly due to effective cost control and closure of loss-making stores in mainland China[22][23] - The company reported a basic loss per share of HK$1.56, an improvement from HK$2.96 in the same period last year[5] - The total comprehensive loss for the period attributable to owners of the Company was HK$51,498,000, compared to HK$85,332,000 in 2023[89] Store Operations - The total number of directly managed stores decreased to 99 from 168, reflecting a reduction of 69 stores[7] - The total number of stores decreased to 427 as of June 30, 2024, down from 519 on December 31, 2023, with 99 directly managed stores and 328 franchised stores[24][25] - Same-store sales growth in Hong Kong SAR and Macau SAR was -7%, while Mainland China saw a growth of 21%[8] - Same-store sales decreased by 5% during the period, contrasting with a 10% increase in 2023, while same-store gross profit fell by 14% compared to a 25% increase in the previous year[10] Cash Flow and Liquidity - Net cash decreased by 41% to HK$109 million from HK$185 million at the end of December 2023[6] - Cash and cash equivalents at June 30, 2024, were HK$108,825,000, down from HK$363,714,000 at the same date in 2023[98] - The company reported a net cash outflow from financing activities of HK$46,890,000, compared to a net inflow of HK$351,474,000 in the same period of 2023[98] - Net cash flows used in operating activities decreased to HK$28,180,000 from HK$62,498,000 year-on-year[96] Inventory Management - Inventory turnover improved to 118 days, down from 177 days at the end of December 2023, indicating better inventory management[6] - Inventory levels were reported at 95 days, a decrease of 34% from 145 days in 2023, reflecting improved inventory management[12] Market Conditions - The Group continues to face a challenging market environment, particularly in the Hong Kong SAR retail market, which remains sluggish despite some recovery post-border reopening[14] - The overall market conditions showed no signs of optimism, with the first half of 2024 experiencing even more severe challenges compared to the previous year[14] - The retail market in Hong Kong SAR saw a 7% decrease in total retail sales value, with the apparel category dropping by 10%[27][28] Capital Expenditure and Investments - Capital expenditure for the period was HK$2 million, a significant decrease of 89% from HK$19 million in the previous year[5] - Approximately HK$31 million of the net proceeds is allocated for capital expenditure for expansion in mainland China[42] Share Capital and Options - The Group issued 852,362,086 ordinary shares through a rights issue, raising net proceeds of approximately HK$313 million[42] - The total number of issued shares of Bossini International Holdings Limited was 3,322,720,177[57] - The company has share options with an exercise price of HKD 0.67 and HKD 0.70, with various exercisable periods from January 2024 to June 2032[4] - The total number of options granted during the period includes 22,700,000 options to other employees, with an exercise price of HK$0.128[74] Employee and Management Information - The total staff cost recorded during the period was HK$94 million, down from HK$110 million in 2023[41] - The Group employed 600 full-time equivalent employees as of June 30, 2024, a decrease from 900 employees at the end of 2023[41] - The key management compensation for the six months ended June 30, 2024, totaled HK$6,767,000, compared to HK$7,961,000 for the same period in 2023[164] Future Outlook and Strategy - The Group is focusing on brand transformation and operational efficiency by closing inefficient stores and increasing discounts to reduce inventory[30][32] - The Group expects to continue investments in rebranding over the next few years, focusing on product development and channel expansion[45] - The company plans to adopt a new share option scheme on December 15, 2023, following the expiration of the previous scheme[152] - Bossini plans to expand its market presence in Southeast Asia, targeting a 25% increase in store openings over the next two years[173] Compliance and Governance - The company complied with the corporate governance code provisions for the six months ended June 30, 2024[83] - The Audit Committee reviewed the unaudited interim financial results for the six months ended June 30, 2024[82]
BOSSINI INT'L(00592) - 2024 - 中期财报