Financial Performance - For the six months ended September 30, 2024, the company reported a loss of HKD 31,773,000 compared to a loss of HKD 18,367,000 for the same period in 2023, indicating a deterioration in performance [2]. - Total comprehensive income for the six months ended September 30, 2024, was HKD (14,145,000), while in 2023 it was HKD (38,762,000), showing an improvement in overall financial performance despite the loss [2]. - The Group reported a comprehensive loss of HK$57,129,000 for the six months ended September 30, 2024 [48]. - The loss attributable to ordinary equity shareholders for the six months ended September 30, 2024 was $31,773,000, compared to a loss of $18,367,000 in 2023, representing an increase of 73.2% [116]. - The company reported a loss for the period of $31,773,000, compared to a loss of $18,367,000 in 2023 [66]. - The consolidated loss before taxation for the six months ended September 30, 2024 was HK$32,180,000, compared to a loss of HK$17,667,000 in the same period of 2023, indicating a significant increase in losses [88]. - EBITDA for the period was reported at a loss of HK$36,708,000, compared to a loss of HK$21,081,000 in the same period last year, reflecting a 74% increase in losses [179]. Revenue and Sales - For the six months ended 30 September 2024, the Group's revenue from the manufacture and sale of garments was HK$73,088,000, a decrease of 22.0% compared to HK$94,865,000 in the same period of 2023 [16]. - Revenue from the manufacture and sale of textiles was HK$21,356,000, down 81.8% from HK$117,401,000 in the previous year [16]. - Processing service income for the period was HK$73,465,000, a decline of 22.9% from HK$95,383,000 in the same period of 2023 [16]. - Total revenue for the Group for the six months ended 30 September 2024 was HK$75,301,000, down 23.2% from HK$98,153,000 in the same period of 2023 [16]. - Revenue from external customers for the six months ended 30 September 2024 was HK$73,465,000, a decrease from HK$95,383,000 in the same period of 2023, representing a decline of approximately 23% [85]. - The core garment business revenue continued to decline, attributed to reduced orders from U.S. clients due to the current political situation [181]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period increased to HKD 190,100,000 from HKD 74,842,000 in the previous year, reflecting a significant improvement in liquidity [7]. - Net cash used in operating activities decreased to HKD (8,726,000) from HKD (13,369,000), indicating better cash management in operations [7]. - The company reported a net cash generated from investing activities of HKD 6,315,000, compared to a net cash used of HKD (93,532,000) in the previous year, highlighting a positive shift in investment cash flows [7]. - As of September 30, 2024, cash and cash equivalents totaled $303,425,000, a slight decrease from $304,504,000 as of March 31, 2024 [125]. Assets and Liabilities - The company’s total equity as of September 30, 2024, was HKD 1,004,908,000, a decrease from HKD 1,046,921,000 in the previous year, indicating a decline in shareholder value [2]. - Current liabilities increased to HK$64,637,000 as of September 30, 2024, from HK$48,888,000 as of March 31, 2024 [46]. - The Group's inventories were valued at HK$708,756,000 as of September 30, 2024, compared to HK$736,597,000 as of March 31, 2024 [46]. - Total non-current assets as of September 30, 2024 were valued at $228,684,000, a slight decrease from $234,775,000 as of 31 March 2024 [113]. - The Group's trade creditors and bills payable totaled $45,526,000 as of September 30, 2024, compared to $35,703,000 as of March 31, 2024 [125]. Dividends and Shareholder Returns - The company approved dividends of HKD (4,135,000) for the previous year, which reflects its commitment to returning value to shareholders despite current losses [2]. - The Board has resolved not to declare an interim dividend for the six months ended September 30, 2024, consistent with the previous year [192]. - No interim dividend was declared for the period, consistent with the previous year where no dividend was paid [116]. Investment and Capital Expenditures - The company’s investment in property, plant, and equipment showed a cash outflow of HKD 13,000, indicating ongoing capital expenditures [7]. - The Group acquired property, plant, and equipment at a cost of $13,000,000, compared to $8,000,000 in the same period last year [75]. - The Group's depreciation for owned property, plant, and equipment was $291,000 for the six months ended September 30, 2024, compared to $108,000 in 2023 [115]. Market Conditions and Future Outlook - The company noted that the major part of the loss was due to the devaluation of investment properties in Hong Kong and losses from its investment in Wuxi No. 1 Cotton Investment Co., Ltd. [179]. - The Group does not foresee an improvement in the current business situation for the remainder of the year [195]. - The Group's investment in Wuxi No. 1 Cotton Investment Co., Ltd. remains weak, contributing to the overall loss [195]. - The Group's factory in China Panyu received fewer orders from U.S. customers due to the current political situation, impacting revenue from the core garment business [195].
长江制衣(00294) - 2025 - 中期财报