Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 323,320,000, an increase of 36% compared to HKD 237,529,000 for the same period in 2023[7] - Gross profit for the same period was HKD 51,889,000, up from HKD 44,807,000, reflecting a gross margin improvement[7] - The company reported a loss of HKD 15,367,000 for the six months ended September 30, 2024, compared to a loss of HKD 11,592,000 in the prior year, indicating a 32% increase in losses[7] - Basic and diluted loss per share was HKD 3.3, compared to HKD 2.4 for the same period last year[7] - The group reported a consolidated loss before tax of HKD 15.20 million for the six months ended September 30, 2024, compared to a loss of HKD 11.42 million in the same period of the previous year[35][37] - The company incurred a total comprehensive expense of HKD 15,874,000 during the reporting period, which includes a loss attributable to owners of the company of HKD 10,979,000[16] - The company recorded a pre-tax operating loss of HKD 15,800,000 for the period, compared to a pre-tax operating loss of HKD 13,100,000 in the previous year[55] Assets and Liabilities - Total assets as of September 30, 2024, were HKD 488,129,000, an increase from HKD 472,815,000 as of March 31, 2024[12] - Current liabilities increased to HKD 200,725,000 from HKD 169,805,000, indicating a rise in short-term obligations[12] - The company's net current assets decreased to HKD 287,404,000 from HKD 303,010,000, reflecting a decline in liquidity[12] - Non-current assets totaled HKD 82,305,000, slightly down from HKD 84,955,000[12] - The total liabilities decreased to HKD 399,409,000 as of September 30, 2024, from HKD 404,767,000 as of April 1, 2023[16] - The company reported a decrease in total equity attributable to owners of the company to HKD 386,638,000 as of September 30, 2024, from HKD 404,767,000 as of April 1, 2023[16] Cash Flow and Investments - The company reported a net cash outflow from operating activities of HKD (24,106,000) for the six months ended September 30, 2024, compared to a net inflow of HKD 2,116,000 in the same period last year[20] - As of September 30, 2024, the total cash and cash equivalents were HKD 157,907,000, down from HKD 168,162,000 at the beginning of the period[20] - The company’s investment activities resulted in a net cash outflow of HKD (5,432,000) for the six months ended September 30, 2024[20] - The company repaid bank borrowings of HKD 81,592,000 during the six months ended September 30, 2024, and raised new bank borrowings of HKD 104,897,000[50] - The group's net cash balance, excluding pledged bank deposits, was HKD 83,100,000 as of September 30, 2024, down from HKD 116,800,000 on March 31, 2024[71] Revenue Breakdown - For the six months ended September 30, 2024, the total revenue amounted to HKD 323,320,000, with production and sales contributing HKD 207,813,000 and retail sales contributing HKD 115,507,000[26] - The revenue from the Chinese market was HKD 164,380,000, while the revenue from the United States was HKD 72,671,000, and from Canada was HKD 59,190,000[27] - Total revenue for the six months ended September 30, 2024, was HKD 323,300,000, representing a 36.1% increase compared to the same period last year[54] - Revenue from garment retail reached HKD 87.76 million, with the majority coming from the Chinese market, which contributed HKD 29.83 million[32] - Sales in the Asian market increased by 42.1% to HKD 177,800,000, with China accounting for over 92.5% of this growth, achieving a significant increase of 39.8%[59] - In North America, sales amounted to HKD 131,900,000, reflecting a year-on-year increase of 28.7%, with the U.S. and Canada contributing HKD 72,700,000 and HKD 59,200,000 respectively[60] Operational Insights - The company continues to explore market expansion opportunities and new product development strategies to enhance future performance[7] - The company adjusted its operations and logistics strategy in Vietnam to meet increased customer demand and mitigate potential disruptions[57] - The company experienced a backlog of orders due to temporary capacity constraints and logistics inefficiencies during the reporting period[57] - The group experienced a segment loss of HKD 3.46 million across its operations, with Asia reporting a profit of HKD 3.27 million, North America a loss of HKD 5.53 million, and Europe and others a loss of HKD 1.20 million[33] - The group’s inventory provision netted HKD 1.87 million, reflecting ongoing challenges in inventory management[37] Employee and Corporate Governance - The group’s total employee benefits expenses amounted to HKD 53.63 million for the six months ended September 30, 2024, down from HKD 62.90 million in the previous year, indicating a reduction of approximately 14.4%[37] - The group employed approximately 1,600 staff as of September 30, 2024, an increase from about 1,500 employees on March 31, 2024[76] - The board did not recommend an interim dividend for the six months ended September 30, 2024, consistent with the previous period[77] - The company has complied with all provisions of the corporate governance code during the reporting period[95] - The company adopted the standard code for securities transactions by directors and confirmed compliance by all directors throughout the period[96] Strategic Initiatives - The group is committed to sustainable development and continues to monitor and comply with environmental regulations in manufacturing facilities[58] - The group plans to enhance customer relationships and expand market and customer bases while diversifying product offerings[66] - The group anticipates a cautious approach to cash and working capital management to maintain financial flexibility for long-term investments[66] - The group aims to implement effective resource allocation between retail sales networks, inventory levels, and marketing plans to sustain profitability and accelerate revenue growth[65] - The group has established closer ties with existing clients and formed new business relationships with well-known domestic brands and retailers, driving significant sales progress despite industry challenges[58]
同得仕(集团)(00518) - 2025 - 中期财报