Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 273,587, a decrease of 15.1% compared to HKD 322,182 for the same period in 2023[1] - Gross profit was HKD 51,613 with a gross margin of 18.9%, up from HKD 51,105 and a gross margin of 15.9% in the previous year[1] - The net profit for the period was HKD 3,209, a significant recovery from a net loss of HKD 7,960 in the same period last year[4] - EBITDA, excluding expected credit losses, was HKD 21,399, compared to HKD 18,777 for the same period in 2023, reflecting a growth of 8.7%[1] - The company reported a basic and diluted earnings per share of HKD 1.27, compared to a loss per share of HKD 3.32 in the previous year[4] - Financing costs increased to HKD 9,859 for the six months ended September 30, 2024, compared to HKD 8,082 in 2023, primarily due to higher bank loan interest[31] - The group reported a net profit of HKD 3,209 for the six months ended September 30, 2024, compared to a loss of HKD 7,960 in the same period of 2023[40] - Basic and diluted earnings per share for the period were HKD 1.27, a significant recovery from a loss of HKD 3.32 in the previous year[40] - Other income for the review period was approximately 2,015,000 HKD, down from 4,567,000 HKD in the same period last year[57] Assets and Liabilities - Total assets decreased to HKD 304,034 from HKD 321,480, while total liabilities decreased to HKD 268,260 from HKD 280,584[6] - Cash and cash equivalents decreased to HKD 22,615 from HKD 26,965, indicating a reduction in liquidity[6] - As of September 30, 2024, the group's current liabilities exceeded current assets by HKD 50,938,000[16] - The group has outstanding bank loans of HKD 98,632,000, which are repayable on demand or within one year, with cash and cash equivalents amounting to HKD 22,615,000[16] - The group has unutilized bank financing of approximately HKD 6,261,000, which can be renewed annually[16] - Trade receivables as of September 30, 2024, were HKD 128,429,000, up from HKD 123,631,000 as of March 31, 2024[10] - Trade payables increased significantly to HKD 62,169,000 as of September 30, 2024, from HKD 21,178,000 as of March 31, 2024[45] - Current assets and current liabilities were approximately HKD 205,041,000 and HKD 255,979,000 respectively, compared to HKD 218,952,000 and HKD 280,584,000 on March 31, 2024[72] - Bank borrowings amounted to approximately HKD 98,632,000 as of September 30, 2024, a decrease from HKD 188,550,000 on March 31, 2024[73] - The company's debt-to-equity ratio was approximately 326.3% as of September 30, 2024, significantly reduced from 689.9% on March 31, 2024[76] Operational Focus and Strategy - The company plans to focus on market expansion and new product development to drive future growth[11] - The group is focused on improving operational efficiency and implementing cost control measures to enhance profitability and future cash flow[16] - The company plans to continue focusing on cost control measures initiated in 2020 to navigate the challenging business environment[51] - The company is actively seeking to diversify its business by providing digital marketing services through its subsidiary in China, which is expected to generate additional revenue streams[69] Corporate Governance and Compliance - The company has not applied any new accounting standards or interpretations that have not yet come into effect during the reporting period[21] - The financial statements are prepared on a going concern basis, despite significant uncertainties regarding the group's ability to maintain profitability and access bank financing[17] - The company has adhered to all applicable corporate governance codes, except for the separation of roles between the chairman and CEO[87] - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance during the review period[86] Employment and Labor Relations - The company employs approximately 1,254 full-time employees as of September 30, 2024, a slight decrease from 1,290 employees on March 31, 2024[79] - The company has not encountered any significant labor disputes or operational disruptions during the review period[79] Shareholder Information - The group did not recommend an interim dividend for the six months ended September 30, 2024, consistent with the previous year[36] - No interim dividend is recommended for shareholders for the review period[93] - The mid-term report will be sent to shareholders and published on the stock exchange and the company's website at an appropriate time[97] Miscellaneous - The group operates primarily in the manufacturing and trading of apparel products and trademark licensing, with significant business presence in Hong Kong, China, and Sri Lanka[22] - There were no significant acquisitions or disposals of subsidiaries, joint ventures, or associates during the review period[81] - No significant investments or capital asset agreements were signed during the review period, but the company will conduct feasibility studies for potential future investment opportunities[82] - The company did not buy, sell, or redeem any of its listed securities during the review period[85] - The company entered into a loan agreement totaling USD 4,212,811 (equivalent to HKD 32,859,926) with San Tai, along with other related agreements[94] - There were no significant events affecting the group from the end of the review period until the date of the announcement[92] - The executive director and chairman of Sterling Group Holdings Limited is Ms. Wang Meihui[98] - The executive directors include Mr. Xiao Yiming, Mr. Zhong Guowei, Mr. Liang Jiawei, and Mr. Ma Jian[98] - Independent non-executive directors are Ms. Zhang Lingling, Mr. Zhou Runzhang, and Mr. Zhao Chuan[98]
STERLING GP(01825) - 2025 - 中期业绩