Financial Performance - Total revenue for the six months ended October 31, 2024, was HKD 702,392,000, a decrease of 6.4% compared to HKD 750,947,000 in the same period of 2023[7] - Gross profit for the same period was HKD 275,609,000, down 9.0% from HKD 302,354,000 year-over-year[7] - The company reported an operating loss of HKD 25,384,000, compared to an operating profit of HKD 7,783,000 in the previous year[7] - Net loss attributable to equity holders for the period was HKD 28,648,000, compared to a profit of HKD 330,000 in the same period last year[7] - Basic and diluted loss per share was HKD 4.30 cents, compared to earnings of HKD 0.05 cents per share in the prior year[7] - The total comprehensive loss for the period amounted to HKD 29,344,000, which includes a loss of HKD 28,648,000 attributed to the period[15] - The group incurred a total loss of HKD 28,648,000 for the period, compared to a profit of HKD 330,000 in the same period last year[29] - Operating loss for the retail segment was HKD 10,719,000, compared to a profit of HKD 20,456,000 in the previous year[29] Assets and Liabilities - Total assets as of October 31, 2024, were HKD 880,594,000, a slight decrease from HKD 886,305,000 as of April 30, 2024[13] - Total liabilities increased to HKD 418,947,000 from HKD 395,314,000, indicating a rise in financial obligations[13] - The company's current liabilities exceeded current assets by HKD 8,265,000 as of October 31, 2024, primarily due to the recognition of lease liabilities[23] - The company reported a total equity of HKD 461,647,000 as of October 31, 2024, down from HKD 490,991,000 at the beginning of the period[15] - The company's total liabilities included HKD 130,997,000 in current lease liabilities and HKD 90,418,000 in non-current liabilities[23] Cash Flow and Liquidity - Cash and cash equivalents decreased to HKD 54,543,000 from HKD 71,422,000, indicating a decline in liquidity[13] - The company reported a net cash generated from operating activities of HKD 76,434,000 for the six months ended October 31, 2024, compared to HKD 78,323,000 for the same period in 2023, reflecting a decrease of approximately 2.4%[18] - The company’s cash and cash equivalents decreased by HKD 16,778,000, from HKD 71,422,000 at the beginning of the period to HKD 54,543,000 at the end of the period[18] - The company incurred a loss of HKD 3,905,000 in cash flow from investing activities, down from HKD 6,466,000 in the previous year, indicating a reduction in investment expenditures[18] - The financing activities resulted in a net cash outflow of HKD 89,307,000, compared to HKD 81,448,000 in the prior year, showing an increase in financing costs[18] Revenue Segmentation - Retail business revenue was HKD 675,013,000, down 7.1% from HKD 726,750,000 year-over-year[29] - The electronic components manufacturing segment reported revenue of HKD 26,956,000, an increase of 13.4% from HKD 23,703,000 in the previous year[29] - The retail segment revenue for the same period was HKD 675,013,000, down 7.1% from HKD 726,750,000 in 2023, accounting for approximately 96% of total revenue[49] - The gross profit for the six months ended October 31, 2024, was HKD 275,609,000, compared to HKD 302,354,000 in 2023, reflecting the decline in revenue[46] Market Challenges and Strategies - The company is facing challenges in the retail market due to high outbound travel by local residents and persistent high interest rates affecting consumer spending[47] - Management anticipates that the current challenging retail market conditions will persist for a considerable time, and plans to implement cost-saving measures[70] - The procurement team will continue to expand sourcing channels and regularly introduce new products to enhance customer shopping experience[70] - The company plans to negotiate lease renewals for stores with expiring leases to adjust rental levels according to market conditions[70] - Management will close underperforming stores to improve overall profitability in the retail business[70] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, with a noted deviation regarding the roles of the Chairman and CEO being held by the same individual[78] - The Audit Committee consists of three independent non-executive directors and has held regular meetings to review accounting principles and internal controls[79] - The Remuneration Committee is responsible for establishing a transparent process for determining the remuneration of directors and senior management[80] - The Nomination Committee evaluates the board's structure and diversity, ensuring alignment with the company's corporate strategy[81] - All directors confirmed compliance with the standard code of conduct regarding securities trading during the six months ending October 31, 2024[82]
CEC INT'L HOLD(00759) - 2025 - 中期财报