Financial Performance - For the six months ended September 30, 2024, the company reported revenue of HKD 35,575,000, a decrease of 60.6% compared to HKD 90,092,000 for the same period in 2023[4]. - Gross profit for the same period was HKD 19,870,000, representing an increase of 43.8% from HKD 13,812,000 in the previous year[4]. - The company incurred a net loss of HKD 75,864,000 for the six months ended September 30, 2024, compared to a net loss of HKD 56,273,000 for the same period in 2023, reflecting a 34.9% increase in losses[4]. - Total comprehensive income/(expenses) for the period was reported as a loss of HKD 72,123 million[21]. - The company reported a loss attributable to shareholders of HKD 75.8 million in the first half of FY2025, compared to a loss of HKD 56 million in the first half of FY2024[103]. Revenue Breakdown - The wristwatch distribution segment generated revenue of HKD 29,623,000, while the property investment segment contributed HKD 5,921,000[34][40]. - The geographical breakdown of revenue shows HKD 24,803,000 from Hong Kong and HKD 1,597,000 from China and Macau for the six months ended September 30, 2024[51]. - Revenue from Hong Kong decreased by 64.8% from HKD 70.5 million in the first half of FY2024 to HKD 24.8 million in the first half of FY2025, representing 69.7% of total group revenue[115]. - Revenue from Mainland China and Macau was HKD 1.6 million in the first half of FY2025, down from HKD 10.6 million in the first half of FY2024, accounting for 4.5% of total group revenue[116]. Assets and Liabilities - Non-current assets, including property, plant, and equipment, were valued at HKD 5,195,000 as of September 30, 2024, down from HKD 6,533,000 as of March 31, 2024[16]. - The company's total liabilities increased to HKD 595,917,000 from HKD 291,077,000, indicating a rise in financial obligations[16]. - The company's total liabilities as of September 30, 2024, reached HKD 1,043,830 million, reflecting a significant increase[21]. - The company's net liabilities increased from HKD 184,800,000 on March 31, 2024, to HKD 239,200,000 on September 30, 2024[129]. Cash and Cash Equivalents - The company’s cash and cash equivalents decreased to HKD 12,854,000 from HKD 24,120,000, reflecting a decline in available cash resources[16]. - As of September 30, 2024, the company's cash and bank balances were HKD 20,200,000, down from HKD 29,100,000 on March 31, 2024[124]. Employee Costs - Employee costs totaled HKD 19,807,000 for the six months ended September 30, 2024, down from HKD 23,503,000 in the previous year, a decrease of about 16%[61]. - The company reported a total employee compensation of HKD 16,602,000 for the six months ended September 30, 2024, down from HKD 17,776,000 in the previous year, indicating a decrease of about 7%[61]. - The total number of employees, including directors, is 100 as of September 30, 2024, down from 115 as of March 31, 2024[136]. Financial Risks and Legal Matters - The company continues to manage financial risks, including foreign currency and interest rate risks, through prudent policies[130]. - The arbitration process is ongoing, with no further hearing arrangements established as of the announcement date[97]. - The company has received legal opinions indicating that the termination of the exclusive distribution agreement was improper and without legal basis[94]. Other Financial Metrics - Interest income for the six months ended September 30, 2024, was HKD 22,000, compared to HKD 419,000 for the same period in 2023, representing a significant decrease[59]. - The company has not declared any interim dividend for the six months ended September 30, 2024, consistent with the previous year[62]. - The company has pledged investment properties with a fair value of RMB 200,600,000 (approximately HKD 222,100,000) as collateral for loans[132].
SINCEREWATCH HK(00444) - 2025 - 中期业绩