Revenue Performance - The group's revenue decreased by 42.9% from approximately HKD 71.8 million to about HKD 41.0 million due to a reduction in sales orders from a major client targeting the US market [3]. - The new retail business revenue increased by 31.4% from approximately HKD 14.0 million to about HKD 18.4 million, driven by increased sales orders from a major UK client [5]. - For the six months ended October 31, 2024, the company reported revenue of HKD 64,393,000, a decrease of 25% compared to HKD 85,768,000 for the same period in 2023 [80]. - The company's revenue from the traditional segment decreased by 42.9% to approximately HKD 41.0 million, down from about HKD 71.8 million in the previous period [147]. - Revenue from the new retail segment increased by 31.4% to approximately HKD 18.4 million, up from about HKD 14.0 million [147]. - The company recorded approximately HKD 5.1 million in revenue from its new institutional catering service, reflecting a successful start and high customer satisfaction [148]. Profitability and Loss - The gross profit decreased by approximately 6.8% from about HKD 7.3 million to approximately HKD 6.8 million, with a gross profit margin of about 10.6% compared to 8.5% in the previous period [7]. - The company recorded a loss of approximately HKD 9.0 million for the period, compared to a loss of HKD 10.2 million for the six months ended October 31, 2023, primarily due to decreased revenue and reduced procurement orders from a major client targeting the US market [39]. - The total comprehensive loss of HKD 10,253,000 for the six months ended October 31, 2023, improved to a loss of HKD 8,912,000 for the same period in 2024 [85]. - The total pre-tax loss for the six months ending October 31, 2024, was 9,121 thousand HKD, compared to a pre-tax loss of 10,304 thousand HKD for the same period in 2023, indicating an improvement of approximately 11.5% [111]. - The company reported a basic and diluted loss per share of HKD 0.28, an improvement from HKD 0.32 in the previous year [80]. Expenses and Cost Management - The group's cost of sales and services decreased by 26.6% to approximately HKD 57.6 million, consistent with the decline in revenue [6]. - Administrative expenses decreased by approximately 5.8% from about HKD 8.6 million to approximately HKD 8.1 million, mainly due to optimized logistics team expenses [11]. - Sales and distribution expenses increased by approximately 1.4% from about HKD 7.0 million to approximately HKD 7.1 million, primarily due to increased operating expenses for providing institutional catering [12]. Financial Position and Liquidity - As of October 31, 2024, the company's current assets net value was approximately HKD 57.4 million, down from HKD 64.3 million as of April 30, 2024, with cash and bank balances of approximately HKD 20.9 million and HKD 32.4 million respectively [42]. - The company's current ratio decreased from approximately 5.8 as of April 30, 2024, to approximately 4.0 as of October 31, 2024 [42]. - The company's cash and cash equivalents decreased to HKD 20,902,000 from HKD 32,430,000, indicating a liquidity challenge [78]. - The company reported a net cash outflow from operating activities of HKD 10,865,000 for the six months ended October 31, 2024, compared to HKD 23,364,000 for the same period in 2023, indicating an improvement in cash flow management [87]. - The total cash and cash equivalents at the end of the period were HKD 20,902,000, significantly up from HKD 5,117,000 in the previous year, reflecting a positive trend in liquidity [87]. Market and Business Strategy - The group plans to expand its fashion-related business, including footwear and bags, and enhance its custom clothing design and procurement services [20]. - The company plans to leverage its supply chain management advantages in the food and beverage industry to transform and expand its institutional catering business for sustainable and profitable growth [27]. - The company plans to expand its market share in the institutional catering business through diversified high-value menus and customer-centric services [148]. - The board anticipates a continued decline in discretionary spending and apparel demand over the next 12 months due to uncertainties in the global economic recovery [27]. Risks and Governance - The group faces risks related to reliance on major clients without long-term contracts, which may lead to revenue uncertainty and potential fluctuations [21]. - The board believes that the dual role of the Chairman and CEO held by Mr. Cai is in the best interest of the group despite a deviation from corporate governance code [66]. - The company has complied with all provisions of the corporate governance code, except for the separation of roles of Chairman and CEO [66]. Shareholder Information - As of October 31, 2024, JC International holds 23,000,000 shares, representing 71.88% of the company's issued share capital [53]. - No dividends were recommended for the six months ended October 31, 2024, consistent with the previous year [65].
桦欣控股(01657) - 2025 - 中期业绩