Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 326,065,000, a decrease of 14.9% compared to HKD 383,032,000 in the same period of 2023[2] - Gross profit for the same period was HKD 2,956,000, representing a significant decline of 86.5% from HKD 21,819,000, with a gross margin of 0.9% compared to 5.7%[2] - The loss attributable to equity holders of the company was HKD 12,967,000, compared to a profit of HKD 21,909,000 in the previous year[2] - Basic and diluted earnings per share were both HKD (1.93), down from HKD 3.24 in the prior year[8] - The total comprehensive loss for the period was HKD 5,893,000, compared to a comprehensive income of HKD 9,396,000 in the same period last year[10] - The adjusted loss before tax for the manufacturing and sales of footwear products was HKD (25,108) for the six months ended September 30, 2024, compared to a loss of HKD (1,821) in the same period of 2023[23] - The group’s net loss for the six months ended September 30, 2024, was HKD (13,582), compared to a profit of HKD 22,062 in the same period of 2023[23] - Revenue for the period was approximately HKD 326,100,000, down 14.9% year-on-year from HKD 383,000,000, primarily due to an 8.5% decrease in business volume and a 7.4% drop in average selling price[53] - Gross profit fell by 86.5% to approximately HKD 3,000,000, down from HKD 21,800,000 in the previous year, attributed to reduced economies of scale and increased labor costs[56] Assets and Liabilities - Total assets as of September 30, 2024, amounted to HKD 1,441,662, a decrease from HKD 1,509,445 as of March 31, 2024[23] - Total liabilities as of September 30, 2024, were HKD 312,365, down from HKD 323,845 as of March 31, 2024[23] - Non-current assets totaled HKD 794,254,000, slightly up from HKD 788,325,000 as of March 31, 2024[12] - Current assets decreased to HKD 647,408,000 from HKD 721,120,000, primarily due to a reduction in cash and cash equivalents[12] - Current liabilities were HKD 213,094,000, down from HKD 226,197,000, indicating improved liquidity management[14] Cash and Liquidity - Total cash and cash equivalents amounted to approximately HKD 323,000,000 as of September 30, 2024[2] - The company maintained a healthy liquidity position with net cash of approximately HKD 323,000,000 as of September 30, 2024, compared to HKD 416,000,000 as of March 31, 2024[59] - The group's current ratio was approximately 3.0 and the quick ratio was about 2.6 as of September 30, 2024, compared to 3.2 and 2.8 respectively as of March 31, 2024[80] - The group has no interest-bearing bank borrowings as of September 30, 2024, maintaining a leverage ratio of zero[80] - The group secured a total bank credit of approximately HKD 40 million as of September 30, 2024, with none utilized[80] Dividends - The company declared a special interim dividend of HKD 2.0 per share, compared to HKD 0.5 in the previous year[2] - The board proposed a special interim dividend of HKD 0.02 per share, up from HKD 0.005 per share in the previous year, while no interim dividend was recommended for this period[60] - The board declared a special interim dividend of HKD 0.02 per ordinary share, amounting to approximately HKD 13.6 million, to be paid on January 27, 2025[86] Operational Highlights - The group operates 21 production lines with an annual capacity of approximately 7 million pairs of footwear, with a utilization rate of 58.3%, down from 60.1% in the previous year[64] - The group added two new brands to its customer portfolio during the period, focusing on high average selling price activewear brands[65] - The group’s production center in southern Vietnam contributed 52.6% of total output, while the Cambodian facility accounted for 47.4%[67][68] - The company faced challenges in its main export markets, leading to a weak order pipeline during the reporting period[52] - The company’s joint venture in Central Vietnam reported a decrease in profit contribution to approximately HKD 5,800,000, down from HKD 13,600,000 in the previous year[57] Employee and Sustainability Initiatives - The total number of employees increased to approximately 6,400 as of September 30, 2024, compared to about 6,200 a year earlier[92] - The group is actively enhancing employee skills and upgrading facilities to meet the increasingly complex and diverse production demands[77] - The group is committed to sustainable production practices and has implemented new measures to reduce its carbon footprint[77] Governance and Compliance - The audit committee consists of three independent non-executive directors and one non-executive director, responsible for reviewing and supervising the financial reporting process and internal control systems of the group[95] - The committee has reviewed the unaudited interim condensed consolidated financial information for the six months ending September 30, 2024, and confirmed that the preparation complies with applicable accounting standards and regulations[96] - All directors confirmed compliance with the standards set out in the code of conduct for securities transactions by directors during the six months ending September 30, 2024[96] - The interim report containing all information required by the listing rules will be sent to shareholders and is available on the Hong Kong Stock Exchange website and the company's website[98]
信星集团(01170) - 2025 - 中期业绩