Financial Performance - The company reported a revenue of approximately HKD 244.7 million for the six months ended September 30, 2024, a decrease of about 5.1% compared to HKD 257.8 million for the same period in 2023[12]. - Net profit for the six months ended September 30, 2024, was approximately HKD 10.6 million, representing a decrease of about 40.4% from HKD 17.8 million in the previous year[10]. - For the six months ended September 30, 2024, the group's revenue was approximately HKD 244.7 million, a decrease of about 5.1% compared to approximately HKD 257.8 million for the same period in 2023[25]. - The gross profit for the same period was HKD 57.6 million, down 5.8% from HKD 60.9 million year-on-year[47]. - Operating profit decreased significantly to HKD 13.0 million, a decline of 38.2% from HKD 21.2 million in the previous year[47]. - The net profit attributable to the company's owners was HKD 10.2 million, down 41.0% from HKD 17.3 million in the same period last year[47]. - The profit attributable to the company's owners for the six months ended September 30, 2024, was HKD 10,172,000, a decrease of 41.5% compared to HKD 17,272,000 for the same period in 2023[104]. - The basic earnings per share for the six months ended September 30, 2024, was HKD 2.5, down from HKD 4.3 in the previous year, reflecting a decline of 41.9%[104]. Revenue Breakdown - Retail business revenue decreased to approximately HKD 123.6 million for the six months ended September 30, 2024, down from HKD 127.3 million in the same period last year, a decline of about 3.7%[17]. - Distribution business revenue for the same period was approximately HKD 121.1 million, down from HKD 130.5 million, reflecting a decrease due to weakened consumer sentiment in Hong Kong[22]. - For the six months ended September 30, 2024, total segment revenue was HKD 244,693,000, with distribution business contributing HKD 121,102,000 and retail business contributing HKD 123,591,000[80]. Expenses and Costs - Selling and distribution expenses increased by approximately 10.0% to about HKD 20.9 million, primarily due to inflation-related increases in marketing and salary expenses[27]. - Administrative expenses rose by approximately 8.5% to about HKD 21.8 million, attributed to inflation across various expenditures[28]. - The cost of goods sold for the six months ended September 30, 2024, was HKD 103,965, down from HKD 116,917 in the previous year, representing a decrease of about 11.1%[97]. - Employee benefit expenses for the six months ended September 30, 2024, increased to HKD 60,652 from HKD 55,766 in the previous year, reflecting an increase of approximately 8.5%[97]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.025 per share, with a payout ratio of approximately 98.3% of the profit attributable to owners, compared to 58.1% in the previous year[10]. - The board has declared an interim dividend of HKD 0.025 per share for the six months ending September 30, 2024, to be distributed around December 24, 2024[153]. - Major shareholders hold 25.0% of the company each, with 100,000,000 shares attributed to ACAC Investment Limited, SCSC Holdings Limited, and CCST Investment Limited[159][160][163]. Assets and Liabilities - Total assets as of September 30, 2024, amounted to HKD 270.9 million, a slight increase from HKD 267.3 million as of March 31, 2024[56]. - The total segment assets as of September 30, 2024, amounted to HKD 167,380, down from HKD 174,472 as of March 31, 2024, indicating a decrease of about 4.3%[89]. - The total segment liabilities as of September 30, 2024, were HKD 91,073, a decrease from HKD 97,291 as of March 31, 2024, reflecting a reduction of approximately 6.4%[91]. Cash Flow and Financing - Cash flow from operating activities for the six months was HKD 35.3 million, an increase of 74.0% compared to HKD 20.3 million in the previous year[62]. - As of September 30, 2024, the group's cash and cash equivalents amounted to approximately HKD 91.4 million, compared to approximately HKD 80.6 million as of March 31, 2024[34]. - The company reported a decrease in trade receivables to HKD 59.0 million from HKD 66.8 million, indicating improved cash collection[51]. - Net financing costs increased by approximately 100.0% to about HKD 0.8 million, mainly due to more lease agreements being renewed, resulting in higher lease liability interest[29]. Operational Highlights - The average same-store sales growth for the "Ten Ren Tea" retail stores remained stable at 0% for the six months ended September 30, 2024[19]. - The average price of tea drinks increased to HKD 31.1 per cup, up from HKD 29.1, due to inflation adjustments[20]. - Average daily sales of tea drinks decreased to 18,000 cups from 19,000 cups, attributed to local residents' consumption trends[20]. - The company maintained 63 self-operated retail stores as of September 30, 2024, unchanged from the previous year[17]. Legal and Compliance - The group is involved in ongoing litigation regarding a supply agreement for masks, with claims totaling approximately HKD 9,083,000 against the supplier[148]. - The group is facing a counterclaim from the supplier amounting to approximately HKD 27,186,000 related to the same supply agreement[150]. - Management believes that the supplier's claims are unreasonable and unsubstantiated, and expects to win the lawsuit, which could result in the termination of trade payables for delivered masks[151]. - If the company loses the lawsuit, it may incur additional litigation losses of approximately HKD 17,936,000 related to the supplier's claims for undelivered masks[151]. Governance and Management - The company has adopted the corporate governance principles outlined in the Appendix C1 of the Listing Rules, emphasizing effective board management and high transparency[168]. - The board consists of four executive directors and three independent non-executive directors, ensuring a high level of independence[172]. - The audit committee reviewed the unaudited interim consolidated results and financial statements, confirming compliance with applicable accounting standards[175].
宾仕国际(01705) - 2025 - 中期财报