Revenue Performance - The group's revenue from the traditional segment decreased by 42.9% from approximately HKD 71.8 million to about HKD 41.0 million, reflecting a reduction in sales orders from a major client targeting the US market [3]. - The new retail segment's 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 client in the UK [16]. - 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 [123]. - The company's revenue decreased by 24.9% from approximately HKD 85.8 million to about HKD 64.4 million for the six months ending October 31, 2023, primarily due to reduced procurement orders from a major customer targeting the US market and sales discounts given to customers [196]. Profitability and Loss - The group's gross profit decreased from approximately HKD 7.3 million to about HKD 6.8 million, a decline of approximately 6.8%, while the gross profit margin improved from 8.5% to 10.6% [9]. - The company reported a total comprehensive loss of HKD 10,253 thousand for the six months ended October 31, 2023, compared to a loss of HKD 10,912 thousand for the same period in 2024 [102]. - The company recorded a loss before tax of HKD 9,121,000, compared to a loss of HKD 10,304,000 in the previous year, showing an improvement in loss [123]. - The net loss for the period was HKD 9,034,000, which is an improvement from HKD 10,204,000 in the prior year [123]. - The company reported a total segment loss of HKD 7,851,000 for the six months ended October 31, 2024, compared to a loss of HKD 10,304,000 in the previous year [155]. Expenses and Cost Management - The sales and service costs decreased by 26.6% to approximately HKD 57.6 million, compared to HKD 78.5 million for the previous six months [18]. - The sales and distribution expenses increased by 1.4% to approximately HKD 7.1 million, primarily due to increased operating expenses related to the new institutional meal service [11]. - Employee benefit expenses totaled approximately HKD 7.1 million and HKD 4.8 million for the six months ending October 31, 2024, and 2023, respectively, reflecting an increase in workforce and compensation adjustments [54]. - The group has implemented cost control measures to enhance operational efficiency in response to the challenging economic environment [59]. Assets and Liabilities - The group's current assets net value was approximately HKD 57.4 million and HKD 64.3 million as of October 31, 2024, and April 30, 2024, respectively [25]. - The total assets less current liabilities as of October 31, 2024, amounted to HKD 81,457 thousand, down from HKD 90,948 thousand as of April 30, 2024 [99]. - The company's current liabilities increased to HKD 18,871 thousand as of October 31, 2024, compared to HKD 13,349 thousand as of April 30, 2024 [99]. - The company's total liabilities as of October 31, 2024, were HKD 18,871 thousand, reflecting an increase in trade and other payables [99]. Business Strategy and Future Outlook - The group aims to expand its institutional catering business leveraging its supply chain management advantages, targeting sustainable and profitable growth [34]. - The board anticipates a continued decline in discretionary spending and apparel demand over the next 12 months due to economic uncertainties [59]. - The company plans to expand its fashion-related business, including footwear and bags, and enhance its custom integrated clothing design and procurement services [78]. - The company aims to explore collaboration opportunities with internationally renowned figures to enhance its corporate image and visibility [78]. Governance and Compliance - The company has complied with all provisions of the corporate governance code except for provision C.2.1, which states that the roles of the chairman and CEO should be separate [71]. - The company is committed to high-quality governance and transparency, holding its board accountable to shareholders [74]. - The group has complied with all relevant laws and regulations in Hong Kong and China during the period [55]. Shareholder Information - The major shareholder, JC International, holds 71.88% of the issued share capital, with Mr. Cai Jingting being the beneficial owner [64]. - As of October 31, 2024, Mr. Cai Jingting holds 24,000,000 shares, representing 75.00% of the company's issued share capital [80]. Cash Flow and Financing - For the six months ended October 31, 2024, the net cash used in operating activities was HKD (10,865) thousand, an improvement from HKD (23,364) thousand for the same period in 2023 [104]. - The company incurred a net cash outflow from investing activities of HKD 20 thousand for the six months ended October 31, 2024, compared to an outflow of HKD 4,361 thousand for the same period in 2023 [104]. - The company has not obtained new bank loans during the six months ending October 31, 2023, and existing bank loans are used for general working capital [180].
桦欣控股(01657) - 2025 - 中期财报