Financial Performance - For the six months ended September 30, 2024, the company's revenue was approximately HKD 273,587,000, a decrease of 15.1% compared to HKD 322,182,000 for the same period in 2023[15] - The gross profit for the same period was HKD 51,613,000, with a gross margin of 18.9%, slightly up from HKD 51,105,000 and a gross margin of 15.9% in the previous year[15] - The company recorded a profit of approximately HKD 3,209,000, compared to a loss of HKD 7,960,000 in the same period last year[7] - EBITDA before expected credit losses for the period was approximately HKD 21,399,000, compared to HKD 18,777,000 for the same period last year[48] - The group reported a total comprehensive income of HKD 3,323,000, recovering from a loss of HKD 6,679,000 in the same period last year[70] - The net profit for the period was HKD 3,209,000, a significant recovery from a net loss of HKD 7,960,000 in the previous year[70] - Basic and diluted earnings per share were HKD 1.27, compared to a loss per share of HKD 3.32 in the prior year[70] - The group reported a profit attributable to owners of the company of HKD 3,209,000 for the six months ended September 30, 2024, a significant recovery from a loss of HKD 7,960,000 in the same period of 2023[116] Costs and Expenses - Financing costs during the review period were approximately HKD 9,859,000, an increase of about 22.0% from HKD 8,082,000 in the same period last year[7] - Selling and distribution expenses decreased by 13.9% to HKD 11,122,000 from HKD 12,914,000, primarily due to cost-saving measures[167] - General and administrative expenses were reduced to HKD 24,280,000 from HKD 26,526,000, reflecting a focus on cost control[167] - The financing costs increased by 22.0% to approximately HKD 9,859,000 from HKD 8,082,000, primarily due to rising interest rates during the review period[197] Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2024, were approximately HKD 22,615,000, down from HKD 26,965,000 as of March 31, 2024[20] - The group has unutilized bank financing of approximately HKD 6,261,000, which can be renewed annually, suggesting potential for continued financial support[104] - The group’s net cash used in financing activities was HKD (77,040,000) for the six months ended September 30, 2024, compared to HKD (27,104,000) in the same period of 2023[101] - The group has a current liability exceeding its current assets by HKD 50,938,000, indicating significant uncertainty regarding its ability to continue as a going concern[104] - The company maintained a current ratio of 0.80 and a quick ratio of 0.70, indicating stable liquidity[157] Assets and Liabilities - Total assets as of September 30, 2024, were HKD 304,034,000, down from HKD 321,480,000 as of March 31, 2024[157] - The group’s total liabilities included bank borrowings of HKD 98,632,000, which are repayable on demand or within one year[104] - Bank borrowings decreased by approximately 47.7% to about HKD 98,632,000 from HKD 188,550,000 as of March 31, 2024[21] - Trade and other receivables increased by approximately HKD 2,117,000 to about HKD 155,671,000, attributed to seasonal sales peaks from July to September[53] - The provision for trade receivables increased to HKD 54,471,000 as of September 30, 2024, from HKD 49,322,000 as of March 31, 2024[121] Business Strategy and Future Outlook - The company plans to conduct feasibility studies for any potential investment opportunities that may arise in the near future[29] - The group is actively seeking to diversify its business by engaging in digital marketing services through its subsidiary in China, which is expected to have a lower capital intensity and create synergies with its existing garment manufacturing business[55] - The company anticipates that sales in the U.S. market will remain flat in the coming year, highlighting the need for transformation due to challenges in the Hong Kong economic and banking environment[174] - The company is evaluating potential business development opportunities based on profitability, capital commitments, cash flow, and industry outlook to enhance financial performance[175] Employee and Operational Metrics - The group employed approximately 1,254 full-time employees as of September 30, 2024, down from 1,290 on March 31, 2024[60] - The company reported a decrease in employee costs to HKD 41,190,000 for the six months ended September 30, 2024, down from HKD 48,218,000 in the previous year[136] Other Relevant Information - The company did not enter into any agreements for significant investments or capital assets during the review period[29] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the review period[61] - No interim dividend was proposed for the six months ended September 30, 2024, consistent with the previous year[92] - There were no significant events after September 30, 2024, that would materially affect the group's operations and financial performance[93]
STERLING GP(01825) - 2025 - 中期财报