Financial Performance - The total revenue for the six months ending December 31, 2024, was approximately HKD 813.7 million, compared to HKD 813.8 million for the same period in 2023, indicating a stable performance [2]. - Gross profit decreased by approximately 4.1% to about HKD 274.1 million, down from HKD 285.8 million in the same period of 2023 [3]. - The company reported a loss of approximately HKD 67.1 million for the period, contrasting with a profit of approximately HKD 53.6 million in the same period of 2023 [3]. - Basic loss per share for the period was approximately HKD 6.96, compared to a basic earnings per share of approximately HKD 5.55 in the same period of 2023 [3]. - Total revenue for the six months ended December 31, 2024, was HKD 813,710,000, slightly down from HKD 813,833,000 in the same period last year, representing a decrease of 0.02% [31]. - The company reported a pre-tax profit of HKD 67,597,000 for the six months ended December 31, 2024, compared to HKD 72,422,000 in the previous year, indicating a decline of 6.4% [25]. - The group recorded a loss of approximately HKD 67.1 million for the period, compared to a profit of approximately HKD 53.6 million in the same period last year, primarily due to global inflationary pressures and the termination of the Cole Haan business [84]. Segment Performance - For the six months ending December 31, 2024, total revenue was HKD 813,710,000, with retail contributing HKD 315,691,000, manufacturing HKD 491,410,000, and property investment HKD 6,609,000 [23]. - The company reported a total segment loss of HKD 52,194,000, with retail segment loss at HKD 84,970,000 and property investment loss at HKD 761,000 [23]. - Retail segment revenue increased by approximately 25.6% to HKD 315.7 million, but recorded a pre-tax loss of HKD 85.0 million due to the termination of the Cole Haan business [62]. - Manufacturing segment revenue decreased by approximately 11.6% year-on-year, generating segment revenue of HKD 491.4 million with a pre-tax profit of HKD 33.5 million [65]. - The property investment segment generated revenue of approximately HKD 6.6 million, with a pre-tax loss of about HKD 0.8 million due to a fair value revaluation loss of approximately HKD 3.3 million [68]. Assets and Liabilities - Total assets as of December 31, 2024, amounted to HKD 1,978.14 million, with total liabilities of HKD 295.93 million, resulting in a net asset value of HKD 1,682.21 million [12]. - Cash and cash equivalents as of December 31, 2024, were HKD 437.53 million, down from HKD 460.55 million as of June 30, 2024 [11]. - Trade receivables decreased to HKD 259.78 million from HKD 297.19 million, indicating a reduction in outstanding customer payments [11]. - The company’s non-current assets totaled HKD 1,061.65 million, slightly up from HKD 1,060.14 million as of June 30, 2024 [11]. - Trade payables as of December 31, 2024, totaled HKD 121,395,000, down from HKD 133,554,000 as of June 30, 2024 [59]. - The group has no outstanding bank loans or other borrowings as of December 31, 2024, indicating a capital debt ratio of zero [94]. Expenses and Income - The cost of sales increased by approximately 2.2% from about HKD 528.0 million for the six months ended December 31, 2023, to about HKD 539.6 million for the six months ended December 31, 2024 [77]. - Selling and distribution expenses increased by approximately 29.2% from about HKD 103.4 million for the six months ended December 31, 2023, to about HKD 133.7 million for the same period in 2024 [80]. - Administrative expenses rose by approximately 6.9% from about HKD 114.6 million for the six months ended December 31, 2023, to about HKD 122.5 million for the same period in 2024, attributed to the operation of the Indonesian factory [81]. - Other income and gains increased from approximately HKD 10.2 million for the six months ended December 31, 2023, to about HKD 12.7 million for the same period in 2024, primarily due to a foreign exchange gain of approximately HKD 6.6 million [82]. Taxation - The estimated taxable profit generated in Hong Kong for the six months ending December 31, 2024, is subject to a tax rate of 16.5%, consistent with the previous year [44]. - The income tax expense for the six months ending December 31, 2024, totals HKD 8,218,000, a decrease of 41.3% from HKD 14,043,000 in the same period last year [46]. - The income tax expense for mainland China subsidiaries is calculated at a statutory rate of 25%, unchanged from the previous year [45]. - The total current tax expense for the six months ending December 31, 2024, includes HKD 10,072,000 for Hong Kong, HKD 1,836,000 for mainland China, and HKD 132,000 for other regions [46]. Corporate Governance and Compliance - The board has adopted corporate governance practices that comply with the requirements of the corporate governance code [109]. - The company will continue to enhance its corporate governance standards to ensure transparency and accountability to shareholders [108]. - The audit committee has been established according to corporate governance guidelines, consisting of independent non-executive directors [110]. - As of December 31, 2024, the interim financial statements for the six months have not been audited, but discussions regarding accounting policies have taken place with management and external auditors [110]. Future Outlook and Strategy - The company plans to expand its online business into other Asian countries such as Thailand, Malaysia, and Singapore in the near future [72]. - The Indonesian factory is expected to commence operations by the end of 2024 and start generating revenue in January 2025, with a target workforce of 3,000 employees at full capacity [74]. - The company aims to optimize costs by seeking competitively priced quality materials and upgrading production facilities [67]. - The company has established a live sales team with over 200 members, enhancing its e-commerce platform development [64]. Employee and Workforce - As of December 31, 2024, the group had approximately 4,500 employees, with competitive compensation and benefits compared to market standards [102]. - The company is committed to improving the working environment and living conditions for employees, including various amenities and recreational facilities [102]. - The company has implemented a stock option plan and a share reward plan to recognize employee contributions [103].
时代集团控股(01023) - 2025 - 中期业绩