Financial Performance - The company reported a revenue of HKD 403,400,000 for the six months ended September 30, 2024, a decrease of 33.8% compared to HKD 608,967,000 in the same period of 2023[6]. - The gross profit for the period was HKD 15,991,000, down from HKD 52,506,000, indicating a significant decline in profitability[6]. - The operating loss for the six months was HKD 32,699,000, compared to an operating loss of HKD 6,898,000 in the previous year, reflecting a worsening financial position[7]. - The net loss attributable to the company’s owners was HKD 36,332,000, compared to a loss of HKD 12,690,000 in the same period last year, marking an increase in losses[8]. - The basic loss per share was HKD (46.08), compared to HKD (16.09) in the previous year, indicating a deterioration in earnings performance[8]. - The company experienced a total comprehensive loss of HKD 33,297,000 for the period, compared to a loss of HKD 6,709,000 in the prior year[9]. - The group reported a pre-tax loss of HKD 36,332,000 for the six months ended September 30, 2024, compared to a loss of HKD 12,690,000 for the same period in 2023[25]. - The group recorded a loss attributable to owners of the company of approximately HKD 36.33 million, compared to a loss of approximately HKD 12.69 million in the previous year[40]. Revenue and Sales - The company reported a significant decline in sales of beauty and skincare products, with revenue dropping to HKD 403,400,000 from HKD 608,967,000[6]. - The revenue from beauty and body services was approximately HKD 28.09 million, down 4.3% from HKD 29.37 million in the previous year[40]. - The distribution sales of cosmetics and skincare products in China decreased to approximately HKD 403,400,000, down from HKD 608,967,000 in 2023, primarily due to prolonged recovery from COVID-19 and economic recession in major economies[45]. - The total revenue from skincare products was not specified, but the group operates in multiple segments including beauty and body services, franchise cooperation, related products, securities investment, and debt services[20]. Assets and Liabilities - Non-current assets decreased from HKD 174,779,000 to HKD 145,304,000, a decline of approximately 16.9%[10]. - Current assets decreased from HKD 668,577,000 to HKD 636,685,000, a decline of about 4.8%[10]. - Cash and cash equivalents decreased from HKD 390,265,000 to HKD 333,735,000, a reduction of approximately 14.5%[14]. - Total liabilities decreased from HKD 83,248,000 to HKD 70,781,000, a decrease of around 15%[10]. - Net assets decreased from HKD 756,007,000 to HKD 709,084,000, a decline of about 6.2%[12]. - The net cash used in operating activities for the six months ended September 30, 2024, was HKD (39,748,000) compared to HKD (59,313,000) in the previous year[15]. - The total equity attributable to owners of the company decreased from HKD 770,034,000 to HKD 735,254,000, a decline of approximately 4.5%[12]. - The group recorded a net impairment loss of HKD 1,450,000 during the reporting period[28]. Investments and Income - The company incurred a loss from securities investments amounting to HKD (27,186,000), compared to a loss of HKD (4,703,000) in the previous year, indicating increased volatility in investment performance[6]. - The company’s interest income from loans decreased to HKD 2,345,000 from HKD 3,721,000, reflecting a decline in financial income[6]. - The lending business generated interest income of approximately HKD 2,345,000, a decrease of 37% from approximately HKD 3,721,000 in the same period last year[49]. - The group recorded a bank interest income of HKD 1,901,000 for the six months ended September 30, 2024, up from HKD 1,454,000 in 2023[22]. Operational Metrics - The company’s inventory increased from HKD 5,419,000 to HKD 10,930,000, an increase of about 101.5%[10]. - Trade receivables increased significantly from HKD 56,200,000 to HKD 86,083,000, an increase of approximately 53.2%[10]. - Trade receivables aged less than 1 month amounted to HKD 85.22 million as of September 30, 2024, compared to HKD 51.05 million as of March 31, 2024[36]. - The total employee costs for the group were approximately HKD 24,854,000, down from approximately HKD 26,524,000 in the previous year, with a total of 198 employees as of September 30, 2024[55]. Strategic Initiatives - The group aims to maintain its leadership position in the beauty and body industry by continuously introducing advanced and high-quality services and products[41]. - The group plans to expand its market presence and enhance customer loyalty through innovative beauty and body treatments and equipment[41]. - The group aims to continue launching safe and effective health and beauty products to enhance the attractiveness of the "修身堂" brand and maintain market leadership[46]. - The group has invested in developing and introducing products that combine advanced technology and safe ingredients to enrich its health and beauty product portfolio[46]. - The group plans to cautiously control the pace and scale of property acquisitions due to uncertainties in the global economy and financial markets[56]. Shareholder Information - Major shareholder Qiu Zhongzong holds 15,119,000 shares, representing 19.17% of the company's issued share capital[62]. - The company has established a formal and transparent procedure to protect shareholder rights and has complied with the GEM Listing Rules[64]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial performance for the six months ending September 30, 2024[65]. - The company did not purchase, redeem, or sell any of its listed securities during the six months ending September 30, 2024[68]. - The company has adopted the trading standards as per GEM Listing Rules for directors' securities transactions, confirming compliance[68]. Stock Options - As of September 30, 2024, the company has granted stock options to directors and key executives, with a total of 5,253,458 shares under the stock option plan at an exercise price of HKD 0.87 per share[60]. - The weighted average remaining contractual life of the stock options is 1.87 years[60]. - The stock options granted to employees and other participants total 3,001,976 shares, also at an exercise price of HKD 0.87[60]. - The total number of shares held by directors and key executives under the stock option plan is 1,500,988, representing approximately 1% of the company's issued share capital[60]. - The group’s weighted average number of ordinary shares for calculating basic loss per share remained at 78,842,031 for both periods[25].
修身堂(08200) - 2025 - 中期业绩