Financial Performance - Revenue for the six months ended September 30, 2024, was HK$326.1 million, a decrease of 14.9% compared to HK$383.0 million in 2023[13]. - Gross profit dropped to HK$2.96 million, reflecting an 86.5% decline from HK$21.8 million in the previous year, with a gross profit margin of 0.9%, down from 5.7%[13]. - The company reported a loss attributable to equity holders of HK$12.97 million, compared to a profit of HK$21.91 million in the same period last year[13]. - Basic loss per share was HK(1.93) cents, a significant decline from earnings of HK3.24 cents per share in 2023[13]. - Profit before tax for the period was a loss of HK$17,036,000 compared to a profit of HK$26,665,000 in the previous year[18]. - The total comprehensive income for the period was a loss of HK$5,893,000, compared to a loss of HK$5,278,000 in the previous period, indicating a worsening of approximately 11.6%[41]. - The total comprehensive expense for the period was HK$5,893,000, compared to HK$9,396,000 in the previous year, indicating an improvement in comprehensive expenses[28]. Cash and Liquidity - Cash and cash equivalents stood at approximately HK$323 million as of September 30, 2024[13]. - Cash and cash equivalents dropped significantly to HK$323,345,000 from HK$415,580,000, a decrease of approximately 22%[31]. - The net cash flows used in operating activities for the six months ended September 30, 2024, were HK$35,642,000, compared to a positive cash flow of HK$57,914,000 for the same period in 2023[49]. - The Group maintained a healthy liquidity position with net cash in hand of approximately HK$323 million as of 30 September 2024, down from approximately HK$416 million as of 31 March 2024[151]. Dividends - No interim dividend was proposed for the period, while a special interim dividend of HK$2.0 per share was declared, compared to HK$0.5 in the previous year[13]. - The Board declared a special interim dividend of HK2.0 cents per ordinary share, up from HK0.5 cent in 2023, but did not recommend an interim dividend for the Period[152]. Assets and Liabilities - Total current assets decreased to HK$647,408,000 from HK$721,120,000, reflecting a decline of about 10%[31]. - The total assets as of September 30, 2024, were HK$1,441,662,000, a decrease from HK$1,509,445,000 as of March 31, 2024[78]. - The total liabilities as of September 30, 2024, were HK$312,365,000, a decrease from HK$323,845,000 as of March 31, 2024[78]. - Net assets as of September 30, 2024, were HK$1,129,297,000, down from HK$1,185,600,000 as of March 31, 2024[34]. Segment Performance - For the six months ended September 30, 2024, segment revenue from the manufacturing and sale of footwear products was HK$326,065,000, a decrease of 14.9% compared to HK$383,032,000 for the same period in 2023[73]. - The segment results for the sale of footwear products showed a loss of HK$25,108,000 for the six months ended September 30, 2024, compared to a loss of HK$1,821,000 in 2023[76]. - Rental income for the property investment segment was HK$12,839,000, down from HK$13,781,000 in the previous year, reflecting a decrease of 6.8%[73]. Market and Operational Outlook - The company is focusing on strategies to improve profitability and market position in the upcoming periods[16]. - Future outlook includes potential market expansion and product development initiatives[16]. - The Group's manufacturing business faced significant challenges due to subdued retail sentiment and geopolitical uncertainties, leading to a shift in order patterns towards rapid turnaround and smaller batch sizes[156]. - The business environment for premium lifestyle footwear manufacturing is expected to remain challenging, with a cautious procurement approach from branded clients[193]. Foreign Exchange and Impairment - The company reported an exchange difference of HK$9,071,000 on translation of foreign operations, compared to a loss of HK$31,458,000 in the previous period[25]. - The impairment allowance of accounts receivable was HK$291,000 for the current period, down from HK$1,369,000 in the previous year[90]. Workforce and Production - The Group maintained a stable workforce in its production centers in southern Vietnam and Cambodia to secure order fulfillment amid challenges in recruiting skilled labor[144]. - Significant resources are being dedicated to workforce upskilling and facility upgrades to meet complex manufacturing demands[198]. Strategic Initiatives - The Group is focusing on streamlining manufacturing processes and automation to mitigate cost pressures while maintaining quality standards[194]. - The Group is committed to prudent cash flow management to build capital reserves in anticipation of market recovery[194].
信星集团(01170) - 2025 - 中期财报