Financial Performance - For the six months ended September 30, 2024, the company reported a net loss of HKD 48,698,000 compared to a net loss of HKD 864,000 for the same period in 2023, indicating a significant decline in performance [7]. - Gross profit for the period was HKD 106,041,000, down 20.8% from HKD 133,766,000 in the previous year [7]. - Total revenue from other income and gains decreased to HKD 6,014,000, a decline of 50.8% from HKD 12,235,000 in the prior year [7]. - The adjusted loss before tax for the reporting period was HKD 48,075,000, compared to a profit of HKD 6,075,000 in the previous period [44]. - For the six months ended September 30, 2024, the group recorded a revenue of HKD 238,901,000, a decrease of 15.1% compared to HKD 281,289,000 in the same period of 2023 [99]. - The gross profit for the same period was HKD 106,041,000, down 20.7% from HKD 133,766,000 in 2023, primarily due to decreased revenue and gross margin in both cosmetics and fashion businesses [99]. - The company reported a pre-tax loss of HKD 48,698,000, compared to a loss of HKD 864,000 in the same period of 2023 [76]. - Total comprehensive loss for the period was HKD 44.8 million, compared to a loss of HKD 8.0 million in the previous period [153]. Cash Flow and Liquidity - The company experienced a cash outflow from operating activities of HKD 20,307,000, contrasting with a cash inflow of HKD 32,780,000 in the same period last year [13]. - Cash and cash equivalents at the end of the period were HKD 12,065,000, down from HKD 15,039,000 a year earlier [13]. - The company’s current liabilities exceeded its current assets by HKD 116,076,000 as of September 30, 2024, raising concerns about liquidity [15]. - The board has reviewed cash flow forecasts and believes that the company will have sufficient working capital for at least the next 12 months [17]. - The company is currently implementing measures to ensure sufficient cash flow for ongoing operations [18]. - The company has not utilized bank credit facilities amounting to HKD 171,562,000 as of September 30, 2024 [22]. - The group’s outstanding bank borrowings amounted to HKD 179,111,000, down from HKD 390,454,000 as of March 31, 2024 [110]. - The current ratio improved to 0.63 from 0.29 as of March 31, 2024, while the debt ratio decreased to 1.13 from 1.92 [110]. Revenue Breakdown - For the six months ending September 30, 2024, total revenue was HKD 238,901,000, with cosmetics contributing HKD 178,701,000 and fashion contributing HKD 60,200,000 [25]. - The revenue for the six months ending September 30, 2023, was HKD 281,289,000, with cosmetics at HKD 202,850,000 and fashion at HKD 78,439,000, indicating a year-over-year decline of approximately 15% [26]. - The cosmetics business generated revenue of HKD 178,701,000, a decline of 11.9% from HKD 202,850,000 in 2023, with a segment loss of HKD 20,921,000 compared to a loss of HKD 823,000 in the previous year [102]. - The fashion business revenue was HKD 60,200,000, down 23.3% from HKD 78,439,000 in 2023, resulting in a segment loss of HKD 14,878,000 compared to a profit of HKD 6,898,000 in the prior year [103]. Assets and Liabilities - The total bank loans as of September 30, 2024, were HKD 163,055,000, down from HKD 337,827,000 as of March 31, 2024, indicating a reduction in leverage [87]. - The total value of mortgaged assets for bank credit facilities was HKD 519,206,000 as of September 30, 2024, compared to HKD 570,010,000 as of March 31, 2024 [90]. - Non-current assets totaled HKD 698.3 million as of September 30, 2024, down from HKD 712.2 million as of March 31, 2024 [155]. - Current assets increased to HKD 195.2 million from HKD 155.4 million, indicating a growth of approximately 25.6% [155]. - Current liabilities decreased significantly to HKD 311.3 million from HKD 543.2 million, a reduction of about 42.6% [156]. - The company's net asset value stood at HKD 158.6 million, down from HKD 203.3 million, reflecting a decrease of approximately 22% [156]. - The company has a total equity of HKD 158.6 million, which includes share capital of HKD 25.2 million and reserves of HKD 133.4 million [156]. Operational Strategies - The company is considering external financing options and potential risk mitigation measures to reduce cash expenditures and meet operational cash flow needs [22]. - The group plans to optimize its retail network by closing underperforming stores and negotiating reasonable rental costs to reduce expenses [105]. - The group has implemented cost optimization strategies to accelerate the recovery of profitability amid a challenging retail environment [105]. - The group aims to enhance sales performance through a new customer loyalty program and by expanding its product offerings [105]. - The company is focusing on market expansion and new product development to enhance future performance [148]. Employee and Governance - The group employed approximately 880 staff as of September 30, 2024, an increase from 870 on March 31, 2024 [128]. - The group has implemented a reward plan based on individual performance for employees, in addition to basic salary benefits [128]. - The independent audit committee reviewed the unaudited results for the six months ended September 30, 2024 [124].
威高国际(01173) - 2025 - 中期财报