Financial Performance - Total revenue for the six-month period ended September 30, 2023, was HK$7,486,031,000, a significant increase compared to the previous period[28]. - Operating profit for the same period was HK$1,140,331,000, reflecting a strong performance despite rising costs[28]. - The Group's profit attributable to equity holders decreased to HK$434,469,000 for the six-month period ended September 30, 2024, down from HK$942,651,000 in 2023, representing a decline of approximately 54%[12]. - Basic and diluted earnings per share for the period remained the same at HK$0.74, as there were no potential dilutive ordinary shares outstanding[12]. - Overall profit before income tax was HK$1,137,458,000, demonstrating robust financial health[28]. - Total revenue decreased by 27.2% year-over-year to HK$5,449 million, with segment profit down 55.0% to HK$553 million[56]. - Profit for the period dropped by 55.7% to HK$417 million, resulting in a net margin decrease of 4.9 percentage points to 7.7%[95]. - The Group's overall gross profit margin decreased by 6.2 percentage points to 14.4%[113]. Revenue Breakdown - Revenue from retailing in Mainland China reached HK$4,801,201,000, while retailing in Hong Kong and overseas generated HK$1,286,671,000[28]. - Retailing revenue fell by 22.7% to HK$4,660 million, while segment profit dropped 42.2% to HK$383 million, resulting in a segment profit margin of 8.2%[57]. - Gold and Platinum sales decreased by 24.1% to HK$3,689 million, but gross profit increased by 9.5% to HK$1,014 million, leading to a gross margin of 27.5%[58]. - Wholesaling revenue declined by 57.8% to HK$385 million, with a segment profit margin of -12.4%[57]. - Licensing income fell by 26.0% to HK$403,808,000, accounting for 7.4% of total revenue, with a segment profit margin of 59.2%[102]. Operational Changes - The total number of shops in Mainland China decreased to 3,311, down by 179 from the previous year[25]. - The total number of shops in Mainland China decreased by 175 to 3,408 as of September 30, 2024[51]. - The total number of self-operated shops increased by 23 to 257 compared to the previous year[51]. - The number of licensed shops in Cambodia decreased by 199 to 3,123[51]. - The number of self-operated shops in Hong Kong remained at 50, while in Macau, it increased from 16 to 18[134][135]. Financial Position - The Group's bank borrowings decreased to HK$20,000,000 as of September 30, 2024, down from HK$362,000,000 as of March 31, 2024[9]. - Total liabilities of Luk Fook Holdings were HK$3,925,726,000, with bank borrowings of HK$20,000,000 and gold loans of HK$1,388,060,000[19]. - The debt-to-equity ratio improved to 29.7%, a decrease of 1.3 percentage points from 31.0% on March 31, 2024[62]. - The Group's cash and bank balances decreased by 3.2% to HK$1,934 million from HK$1,998 million on March 31, 2024, and down 14.2% year-over-year[62]. - The Group's net cash position decreased by 7.8% to HK$526 million from HK$570 million on March 31, 2024[62]. Inventory and Capital Expenditures - As of September 30, 2024, inventories increased by 3.1% to HK$9,863 million compared to HK$9,567 million on March 31, 2024[62]. - Average inventory turnover days rose significantly by 194 days to 504 days from 310 days on March 31, 2024[62]. - Capital expenditures as of September 30, 2024, totaled HK$3,494,956,000, reflecting an increase from HK$3,304,885,000 as of September 30, 2023[80]. - Capital commitments as of September 30, 2024, amounted to HK$17 million, down from HK$20 million as of March 31, 2024[168]. Market Presence and Brand Strategy - During the review period, Luk Fook Jewellery opened its first Hong Kong-style themed shop in Shanghai, enhancing its market presence[15]. - The company launched a series of new wedding products during the "Sweet Journey" roadshow on May 20, 2024, targeting the luxury market[15]. - The Group has implemented a multi-brand strategy to cater to changing consumer preferences, enhancing its brand portfolio with offerings such as Lukfook Jewellery and Goldstyle[187]. - The Group adopted a multi-brand strategy, introducing various sub-brands to cater to different customer profiles[153]. Risk Management - The Group's activities expose it to various financial risks, including foreign exchange risks, cash flow and fair value interest rate risks, credit risk, liquidity risk, and commodity price risk[9]. - There have been no changes in the Risk Management Committee or risk management policies since March 31, 2024[9]. - The Group's financial risk management information does not include all disclosures required in the annual financial statements[9]. Changes in Employee Count - The number of employees increased to approximately 6,600 as of September 30, 2024, up from 6,200 in 2023, reflecting a growth of about 6.45%[187].
六福集团(00590) - 2025 - 中期财报