Financial Performance - The Group's profit for the six months ended September 30, 2024, was approximately HK$0.3 million, a decrease from approximately HK$1.2 million in the same period of 2023[15]. - The Group's revenue for the six months ended September 30, 2024, was approximately HK$64.0 million, representing a decrease of approximately 20.1% compared to HK$80.1 million for the same period in 2023[15]. - The Group's gross profit decreased by approximately HK$3.7 million, or approximately 16.5%, from approximately HK$22.4 million for the six months ended 30 September 2023 to approximately HK$18.7 million for the six months ended 30 September 2024[40]. - Profit for the period was HK$349,000, a significant decline of 72% compared to HK$1,240,000 in the previous year[150]. - Basic earnings per share decreased to 0.29 HK cents from 1.25 HK cents, reflecting a 77% drop[150]. - The total comprehensive income for the period was a loss of HK$447,000, compared to a profit of HK$995,000 for the same period in 2023[157]. - The net cash generated from operating activities for the six months ended September 30, 2024, was HK$2,270,000, a decrease of 59.8% compared to HK$5,644,000 for the same period in 2023[159]. Revenue Breakdown - Revenue from Gem-set Jewellery Products decreased by approximately HK$5.7 million or 19.0%, totaling approximately HK$24.2 million for the six months ended September 30, 2024[27]. - Revenue from pure gold products decreased by approximately HK$23.2 million or 64.7%, totaling approximately HK$12.7 million for the six months ended September 30, 2024[28]. - Revenue from trading of recycled gold products increased by approximately HK$12.8 million or 88.9%, totaling approximately HK$27.2 million for the six months ended September 30, 2024[35]. - Retail channel revenue was approximately HK$32.7 million, a decrease of approximately HK$26.5 million or 44.9% compared to approximately HK$59.2 million for the same period in 2023[37]. - Wholesale channel revenue was approximately HK$4.2 million, a decrease of approximately HK$2.3 million or 35.4% compared to approximately HK$6.5 million for the same period in 2023[37]. Dividends and Shareholder Returns - The Board does not recommend the payment of any dividend for the six months ended September 30, 2024, consistent with the previous year[15]. - The Board does not recommend the payment of any interim dividend for the six months ended September 30, 2024[20]. - The Group is extending its marketing campaign to social media to enhance shareholder returns and support long-term growth[22]. Assets and Liabilities - As of September 30, 2024, the Group's total assets were approximately HK$136.7 million, an increase from approximately HK$118.1 million as of March 31, 2024[64]. - The Group's total liabilities were approximately HK$40.2 million as of September 30, 2024, down from approximately HK$47.2 million as of March 31, 2024[64]. - The total interest-bearing borrowings of the Group as of September 30, 2024, were approximately HK$19.7 million, a decrease from approximately HK$22.8 million as of March 31, 2024[64]. - The current ratio as of September 30, 2024, was approximately 2.75 times, up from approximately 1.88 times as of March 31, 2024[64]. - The Group's gearing ratio decreased from approximately 32.1% as of March 31, 2024, to approximately 20.4% as of September 30, 2024[64]. Rights Issue and Capital Expenditure - The Company completed a rights issue on 12 September 2024, issuing 225,000,000 Rights Shares and raising approximately HK$26.0 million in net proceeds[52]. - Approximately HK$12.0 million from the rights issue will be invested to open a new retail store by the end of 2024[53]. - Approximately HK$3.0 million will be used to renovate existing retail stores by the end of 2025[53]. - Approximately HK$7.0 million will be allocated to repay bank borrowings and interest due within the following year[53]. Operational Efficiency - Selling and distribution costs were approximately HK$11.7 million for the six months ended September 30, 2024, representing a decrease of approximately HK$0.8 million or approximately 6.3% compared to the corresponding period in 2023[41]. - General and administrative expenses were approximately HK$6.2 million for the six months ended September 30, 2024, a decrease of approximately HK$0.9 million or approximately 13.2% compared to the previous year[45]. - The Group's total staff costs decreased to HK$9,502,000 from HK$10,093,000 in the previous year[191]. Compliance and Governance - The company has confirmed compliance with the trading regulations set forth in the GEM Listing Rules during the review period[80]. - No non-compliance events were discovered during the review period ending September 30, 2024[80]. - The Audit Committee reviewed the Group's unaudited consolidated interim results for the six months ended September 30, 2024, ensuring compliance with accounting standards[137]. - The Board conducted regular reviews of the risk management and internal control systems to ensure their effectiveness[144]. Market Conditions - The overall retail market in Hong Kong remained vulnerable during the reporting period, impacting the Group's performance[26]. - The Group plans to expand its jewellery design collection and retail presence in response to market trends and customer preferences[22]. - The expansion of the retail network aims to capture the growing demand for the Group's jewelry products across various regions[55].
创辉珠宝(08537) - 2025 - 中期财报