Financial Performance - The group's revenue for the six months ended June 30, 2025, was approximately HKD 68.3 million, a decrease of about 11.5% compared to HKD 77.1 million for the same period in 2024[7]. - The gross profit for the same period was approximately HKD 24.3 million, down about 12.6% from HKD 27.8 million in the previous period[8]. - The gross profit margin decreased from approximately 36% in the previous period to about 35.5% in the current period[9]. - Profit attributable to equity holders decreased from approximately HKD 5.2 million to about HKD 3.3 million[10]. - Earnings per share for the current period was approximately HKD 0.84, compared to HKD 1.31 in the previous period[11]. - The company reported a net cash outflow from operating activities of HKD 14,343,000 for the six months ended June 30, 2025, compared to HKD 23,152,000 for the same period in 2024[23]. - The net profit for the six months ended June 30, 2025, was HKD 3,347,000, down from HKD 5,225,000 in the same period of 2024, indicating a decrease of 36%[36]. - The company reported a tax expense of HKD 765,000 for the six months ended June 30, 2025, compared to HKD 1,532,000 in the same period of 2024, showing a reduction of 50%[47]. Revenue Breakdown - Sales of beauty products amounted to HKD 55,546,000, down from HKD 56,876,000, reflecting a decline of 2.4%[30]. - Sales of cosmetic bags decreased significantly to HKD 12,705,000 from HKD 20,205,000, representing a decline of 37.0%[30]. - Revenue from external customers for beauty products reached HKD 55,546,000 and for cosmetic bags HKD 12,705,000, totaling HKD 68,251,000 for the six months ended June 30, 2025, representing a decrease of 11.4% compared to HKD 77,081,000 for the same period in 2024[35]. - Revenue from beauty products accounted for 81.38% of total revenue, while cosmetic bags accounted for 18.62% for the six months ended June 30, 2025[66]. - Revenue from the UK and Europe was approximately HKD 44.1 million, representing 64.6% of total revenue, while revenue from the US was approximately HKD 22.2 million, representing 32.5%[66]. Assets and Liabilities - Total assets as of June 30, 2025, were approximately HKD 278.5 million, compared to HKD 276.8 million as of December 31, 2024[17]. - Cash and cash equivalents increased to approximately HKD 182.2 million from HKD 175.1 million[17]. - Trade receivables increased to approximately HKD 29.2 million from HKD 18.9 million[17]. - Total liabilities decreased to HKD 32,297,000 as of June 30, 2025, down from HKD 36,098,000 as of December 31, 2024[19]. - The company's total equity increased to HKD 246,171,000 as of June 30, 2025, compared to HKD 240,695,000 at the beginning of the year[21]. Expenses - Administrative expenses increased slightly from approximately HKD 17.1 million to about HKD 18.4 million, while sales and distribution expenses decreased by approximately 27.2% to about HKD 5.3 million[71]. - The total employee cost for the period was approximately HKD 15 million, an increase from HKD 14.2 million in the previous period, primarily due to salary increases[85]. Dividends and Shareholder Information - The board did not recommend any interim dividend for the current period, consistent with the previous period[12]. - The company did not propose any interim dividend for the six months ended June 30, 2025, consistent with the previous year[48]. - Major shareholders, Classic Charm Investments Limited, hold 300,000,000 shares, representing 75.00% of the voting rights in the company[101]. Corporate Governance - The company has complied with all provisions of the corporate governance code as per GEM Listing Rules Appendix C1, except for the absence of independent non-executive directors at the annual general meeting held on May 9, 2025[106]. - The chairman of the board was unable to attend the annual general meeting due to prior commitments[107]. - The company has adopted a code of conduct regarding securities trading for directors and employees, confirming compliance with the relevant trading standards[108]. Risks and Future Plans - The company faces risks related to customer performance, particularly due to market conditions in the U.S. and Europe, which could impact procurement volumes[87]. - Labor shortages and rising labor costs in China may significantly affect the company's operations and expansion plans[88]. - The group plans to develop strategies for the US market and expand its business into new regions, particularly Europe, amid ongoing market challenges[65].
德宝集团控股(08436) - 2025 - 中期财报