Financial Performance - The Group's revenue increased by 25.0% to HK$642.4 million for the six months ended 31 December 2024, up from HK$513.7 million for the same period in 2023[18][25] - Gross profit for the period was HK$120.5 million, compared to HK$110.5 million in the previous year, reflecting an increase of HK$9.9 million[14] - The gross profit margin decreased to 18.8% from 21.5%, a decline of 2.7 percentage points[14] - The Group reported a loss for the period of HK$15.8 million, compared to a loss of HK$9.5 million in the prior year, an increase in loss of HK$6.2 million[14] - Sales revenue rose by 25.0% to HK$642.4 million for the Period, compared to HK$513.7 million in the last corresponding period, primarily driven by increased demand from major customers in the United States[30] - The Group recorded a net loss of HK$15.8 million for the Period, compared to a net loss of HK$9.5 million in the corresponding period last year; excluding additional costs, the normalized net loss would be HK$0.5 million[37][40] - Loss for the period was HK$15,773,000, compared to a loss of HK$9,534,000 in the prior year, indicating a deterioration of 65.0%[62] - Basic and diluted loss per share increased to HK$5.90 from HK$4.31, reflecting a 36.8% increase in loss per share[59] Cash Flow and Liquidity - Cash and cash equivalents decreased significantly to HK$47.1 million from HK$102.3 million, a decline of HK$55.2 million[14] - As of 31 December 2024, the Group's bank balances and cash were HK$47.1 million, down from HK$102.3 million at 30 June 2024, with total bank borrowings at HK$86.6 million[38][41] - For the six months ended December 31, 2024, the company reported a net cash used in operating activities of HK$25,274,000, compared to a net cash generated of HK$8,793,000 in the same period of 2023[75] - The company incurred net cash used in investing activities of HK$6,702,000 for the six months ended December 31, 2024, compared to HK$2,174,000 in the previous year[75] - The financing activities resulted in a net cash used of HK$24,431,000 for the six months ended December 31, 2024, compared to HK$19,867,000 in the same period of 2023[75] Equity and Debt - Total equity decreased to HK$390.0 million from HK$396.0 million, a decline of HK$6.0 million[14] - Total debt decreased to HK$86.6 million from HK$91.9 million, a reduction of HK$5.4 million[14] - The total comprehensive expense for the period was HK$5,996,000, an improvement from HK$7,182,000 in the previous year[62] - Net assets decreased to HK$390,038,000 from HK$396,034,000, reflecting a reduction of 1.5%[67] Operational Highlights - 74% of sales were to the U.S. market, while Europe accounted for 14% and the rest of the world for 12%[23][24] - The overseas manufacturing facilities in Asia (excluding China) contributed 74% of the global production output, with China accounting for the remaining 26%[23][24] - Additional manufacturing costs and subcontracting charges due to the temporary suspension of the Indonesian production facility amounted to approximately HK$8.4 million, with additional delivery costs of approximately HK$6.9 million during the period[22] - Selling and distribution expenses increased to HK$27.1 million for the Period, up from HK$16.6 million in the last corresponding period, mainly due to additional delivery costs of HK$6.9 million related to temporary operation suspension[28][33] Market Outlook - The Group anticipates that customer demand will remain volatile in the near term due to ongoing geopolitical conflicts and elevated interest rates amid persistent inflation[52][57] - The Group's strategy focuses on innovation, strategic verticality, high-touch service, and a multi-country footprint to navigate uncertain market conditions[53][57] Shareholder Information - Mr. Herman Van de Velde holds a 25.66% interest in the Company as of December 31, 2024, consistent with the previous reporting period[146] - The interests of Mr. Wong Chung Chong and Mr. Wong Kai Chung, both at 29.73%, reflect significant ownership stakes in the Company[157] - As of December 31, 2024, High Union Holdings Inc. held 89,503,680 shares, representing 29.73% of the issued share capital of the Company[167] - TGV also held 89,503,680 shares, accounting for 29.73% of the issued share capital[167] - VdV was a beneficial owner of 77,258,590 shares, which is 25.66% of the issued share capital[167] - Mr. David Michael Webb held 27,168,000 shares, representing 9.02% of the issued share capital, through a controlled corporation[167] Governance and Compliance - The unaudited interim financial report for the six months ended December 31, 2024, has been reviewed by the Audit Committee[193] - The Company complied with the Corporate Governance Code provisions during the six months ended December 31, 2024, except for the deviation regarding the retirement of directors[194] - The Chairman is not subject to retirement by rotation, which the Board believes is important for the stability and growth of the Company[195]
黛丽斯国际(00333) - 2025 - 中期财报