顺龙控股(00361) - 2025 - 中期业绩

Condensed Consolidated Financial Statements This section presents the group's financial performance and position for the period, highlighting key changes in income, expenses, assets, and liabilities Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, Shun Long Holdings Limited experienced a significant revenue decline and a shift from profit to loss, with a notable increase in loss per share, reflecting a deteriorating operating environment Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Summary (HK$ thousand) | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | 88,956 | 129,126 | | Cost of sales | (67,395) | (99,876) | | Gross profit | 21,561 | 29,250 | | Other operating income | 1,340 | 2,970 | | Selling and distribution expenses | (26) | (95) | | Administrative expenses | (31,825) | (27,857) | | Finance costs | (5,116) | (3,847) | | (Loss) Profit before tax | (14,066) | 421 | | Income tax expense | (544) | (1,180) | | Loss for the period | (14,610) | (759) | | Loss per share (HK cents) | (0.28) | (0.01) | - Revenue for the period decreased by 31.1% year-on-year, from HK$129,126 thousand to HK$88,956 thousand[3] - The company shifted from a profit before tax of HK$421 thousand in the prior year to a loss before tax of HK$14,066 thousand in the current period[3] - Loss for the period attributable to owners of the Company significantly increased from HK$759 thousand to HK$14,610 thousand, with basic and diluted loss per share rising from HK$0.01 cents to HK$0.28 cents[4] Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets and net assets decreased, with a reduction in net current assets and cash balances, while liquidity ratios remained reasonable Condensed Consolidated Statement of Financial Position Summary (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Non-current assets | 223,300 | 228,647 | | Current assets | 156,162 | 171,325 | | Current liabilities | 99,955 | 108,501 | | Net current assets | 56,207 | 62,824 | | Total assets less current liabilities | 279,507 | 291,471 | | Non-current liabilities | 66,505 | 63,859 | | Net assets | 213,002 | 227,612 | | Bank balances and cash | 109,525 | 116,008 | | Trade and other payables | 70,622 | 50,984 | - Total assets decreased from HK$399,972 thousand as of December 31, 2024, to HK$379,462 thousand as of June 30, 2025[12] - Net assets decreased from HK$227,612 thousand to HK$213,002 thousand[6] - Net current assets decreased from HK$62,824 thousand to HK$56,207 thousand, and bank balances and cash decreased from HK$116,008 thousand to HK$109,525 thousand[5] Notes to the Financial Statements This section details the accounting policies and specific financial information supporting the condensed consolidated financial statements Basis of Preparation The condensed consolidated financial information is prepared in accordance with Appendix 16 of the HKEX Listing Rules and HKAS 34 "Interim Financial Reporting" - The financial information complies with the requirements of Appendix 16 of the Hong Kong Listing Rules and HKAS 34 "Interim Financial Reporting"[7] Principal Accounting Policies The condensed consolidated financial information is primarily prepared on a historical cost basis, with new HKFRS amendments applied, though without significant impact on current financial performance - Financial information is prepared on a historical cost basis, except for leasehold land and buildings which are measured at revalued amounts[8] - The first-time application of HKAS 21 (Amendment) "Lack of Exchangeability" had no significant impact on the financial performance and position for the current period[8] Revenue The Group's revenue primarily represents income generated from the sale of goods during the period - Revenue is defined as income generated from the sale of goods[9] Segment Information The Group operates three reportable segments: golf equipment, golf bags, and hotel, with golf equipment revenue significantly declining and the hotel business still generating no revenue - The Group has three reportable operating segments: golf equipment, golf bags, and hotel[10] Segment Revenue and Results Both golf equipment segment revenue and results significantly decreased, golf bag segment revenue slightly increased but recorded a loss, and the hotel segment generated no revenue Segment Revenue and Results Summary (HK$ thousand) | Segment | 2025 Revenue | 2024 Revenue | 2025 Results | 2024 Results | | :--- | :--- | :--- | :--- | :--- | | Golf equipment | 79,318 | 119,673 | 763 | 11,536 | | Golf bags | 9,638 | 9,453 | (1,000) | (631) | | Hotel | – | – | (2,833) | (2,863) | | Consolidated Revenue | 88,956 | 129,126 | | | | (Loss) Profit before tax | | | (14,066) | 421 | - Golf equipment segment revenue decreased by 33.7% year-on-year to HK$79,318 thousand, and segment profit significantly dropped from HK$11,536 thousand to HK$763 thousand[11] - Golf bag segment revenue slightly increased by 2.0% to HK$9,638 thousand, but segment loss expanded from HK$631 thousand to HK$1,000 thousand[11] - The hotel segment generated no revenue in both reporting periods and continued to record losses[11] Segment Assets and Liabilities Segment assets and liabilities varied, with golf equipment segment assets and liabilities decreasing, and a new amount payable to former directors added to unallocated corporate liabilities Segment Assets and Liabilities Summary (HK$ thousand) | Segment | June 30, 2025 Assets | December 31, 2024 Assets | June 30, 2025 Liabilities | December 31, 2024 Liabilities | | :--- | :--- | :--- | :--- | :--- | | Golf equipment | 111,105 | 120,789 | 30,731 | 40,068 | | Golf bags | 2,114 | 3,155 | 1,032 | 1,161 | | Hotel | 152,631 | 155,417 | 7,515 | 7,515 | | Total Consolidated Assets | 379,462 | 399,972 | | | | Total Consolidated Liabilities | | | 166,460 | 172,360 | - Golf equipment segment assets decreased from HK$120,789 thousand to HK$111,105 thousand, and liabilities decreased from HK$40,068 thousand to HK$30,731 thousand[12] - A new amount of HK$30,580 thousand payable to former directors was added to unallocated corporate liabilities[12] Other Operating Income Other operating income for the period significantly decreased year-on-year, primarily due to the absence of net exchange gains and a decline in interest income Other Operating Income Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest income | 851 | 1,175 | | Net exchange gain | – | 1,139 | | Total | 1,340 | 2,970 | - Other operating income decreased from HK$2,970 thousand to HK$1,340 thousand, mainly due to the absence of a net exchange gain of HK$1,139 thousand recorded in the prior year period[13] Finance Costs Finance costs for the period increased year-on-year, mainly driven by a significant rise in interest expenses on amounts payable to former directors Finance Costs Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Interest on amounts payable to former directors | 1,448 | 255 | | Interest on convertible bonds | 2,706 | 2,494 | | Interest on bank borrowings | 950 | 1,083 | | Total | 5,116 | 3,847 | - Finance costs increased by 33% from HK$3,847 thousand to HK$5,116 thousand[14] - Interest expense on amounts payable to former directors significantly increased from HK$255 thousand to HK$1,448 thousand[14] Income Tax Expense Income tax expense for the period primarily arose from PRC corporate income tax, with no provision for Hong Kong profits tax due to no assessable profits, and no tax provision for the Commonwealth of Northern Mariana Islands Income Tax Expense Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Hong Kong profits tax | – | 150 | | PRC corporate income tax | 544 | 1,017 | | Total | 544 | 1,180 | - No provision for Hong Kong profits tax was made for the current period due to no assessable profits or offset by tax losses[17] - The corporate income tax rate for PRC subsidiaries is 25%[17] - No corporate income tax provision was made for the Commonwealth of Northern Mariana Islands due to no income[17] Loss Before Tax The loss before tax for the period was primarily influenced by inventory recognized as expenses, depreciation charges, and net exchange losses Loss Before Tax Adjustment Items Summary (HK$ thousand) | Item | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Amount of inventories recognized as expense | 67,395 | 99,876 | | Depreciation of property, plant and equipment | 2,627 | 1,737 | | Depreciation of right-of-use assets | 2,966 | 3,031 | | Net exchange loss (gain) | 490 | (1,139) | - A net exchange loss of HK$490 thousand was recorded in the current period, compared to a net exchange gain of HK$1,139 thousand in the prior year period[16] Dividends The Board of Directors decided not to declare any dividends for the current period - No dividends were paid, declared, or proposed during the period[18] Loss Per Share Basic and diluted loss per share for the period was HK$0.28 cents, a significant increase from HK$0.01 cents in the prior year, reflecting an expanded loss Loss Per Share Calculation Summary | Indicator | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Loss for the period attributable to owners of the Company (HK$ thousand) | (14,610) | (759) | | Number of ordinary shares (thousand shares) | 5,201,250 | 5,201,250 | | Basic and diluted loss per share (HK cents) | (0.28) | (0.01) | - Unexercised convertible bonds were not assumed to be converted when calculating diluted loss per share, as they would reduce the loss per share[21] Trade and Other Receivables The Group's total trade and other receivables decreased, with credit terms typically 30 to 60 days and overdue balances regularly reviewed Trade and Other Receivables Summary (HK$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade receivables | 29,182 | 30,731 | | Deposits and other receivables | 2,714 | 2,971 | | Prepayments | 2,427 | 2,768 | | Prepayments to suppliers | 76 | 111 | | Total | 34,399 | 36,581 | Ageing Analysis of Trade Receivables (HK$ thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 30 days | 20,662 | 24,876 | | 31 to 90 days | 8,520 | 5,586 | | 91 to 180 days | – | 269 | | Total | 29,182 | 30,731 | - Total trade receivables decreased from HK$30,731 thousand to HK$29,182 thousand[22] Trade and Other Payables The Group's total trade and other payables significantly increased, mainly due to the addition of amounts payable to former directors, with credit terms generally ranging from 30 to 90 days Trade and Other Payables Summary (HK$ thousand) | Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade payables | 16,223 | 23,991 | | Contract liabilities | 597 | 553 | | Accruals and other payables | 23,222 | 26,440 | | Amounts payable to former directors | 30,580 | – | | Total | 70,622 | 50,984 | Ageing Analysis of Trade Payables (HK$ thousand) | Ageing | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | 0 to 90 days | 13,681 | 20,453 | | 91 to 180 days | 651 | 1,723 | | 181 to 365 days | 144 | 103 | | Over 365 days | 1,747 | 1,712 | | Total | 16,223 | 23,991 | - Total trade and other payables increased from HK$50,984 thousand to HK$70,622 thousand, primarily due to the addition of HK$30,580 thousand in amounts payable to former directors[22] Share Capital The company's authorized and issued share capital remained unchanged during the reporting period Share Capital Summary | Item | Number of Shares (thousand shares) | Share Capital (HK$ thousand) | | :--- | :--- | :--- | | Authorized share capital (par value HK$0.01 per share) | 10,000,000 | | | Issued and fully paid share capital (par value HK$0.01 per share) | 5,201,250 | 52,013 | - Authorized and issued share capital remained unchanged during the reporting period[24] Events After the Reporting Period As of the date of the interim results announcement, the Group had no significant events after the reporting period - No significant events occurred from June 30, 2025, up to the date of the interim results announcement[25] Management Discussion and Analysis This section provides an overview of the Group's financial performance, business operations, and future outlook, including strategies to address market challenges Financial Results and Business Review Affected by high US tariffs, the Group's sales significantly declined in the first half of 2025, leading to substantial losses, with measures taken to streamline operations and optimize costs - High US tariffs on Chinese export products (initially 145%, later temporarily reduced to 30%) adversely impacted the Group's business[26] - Major customers shifted orders or suspended shipments, leading to a significant decline in sales and a substantial loss for the period[26] - The Group's revenue was approximately HK$88,956 thousand (a 31.1% year-on-year decrease), and loss for the period attributable to owners of the Company increased to approximately HK$14,610 thousand[27] Golf Equipment Business As the primary revenue source, the golf equipment business experienced significant declines in both revenue and segment profit due to high US tariffs, with the Group implementing cost optimization and supply chain expansion, maintaining a cautious outlook for the second half - Golf equipment business revenue plummeted by approximately 33.7% to HK$79,318 thousand, accounting for approximately 89.2% of the Group's revenue[28] - Sales to the largest segment customer fell by approximately 26.9%, and revenue from the top five segment customers decreased by approximately 33.9%[29] - Segment profit significantly dropped to approximately HK$763 thousand (from HK$11,536 thousand in the prior year period)[30] - The Group is implementing rationalization measures at its Shandong production facility to enhance production efficiency, reduce manufacturing costs, and expand its supply chain[30] Golf Bag Business The golf bag segment transitioned to a trading business model, showing slight revenue growth but still incurring losses, facing intense competition and market pressure, with a cautious outlook for the second half - The golf bag segment has transitioned to a trading business model, with production outsourced to external factories[31] - Segment revenue slightly increased by approximately 2.0% to HK$9,638 thousand, accounting for approximately 10.8% of the Group's revenue[31] - Sales to the largest segment customer surged by approximately 81.9%, but some customers shifted to non-Chinese suppliers[32] - The segment recorded a loss of approximately HK$1,000 thousand (compared to HK$631 thousand in the prior year period)[33] Hotel Business The hotel development plan in the Commonwealth of Northern Mariana Islands was delayed due to local construction worker shortages and uncertain visa quotas, generating no revenue in the current period - The hotel development plan was delayed due to a shortage of local construction workers and uncertainty regarding overseas work visa quotas[34] - The hotel business generated no revenue during the current period[35] Outlook Facing high US tariff challenges, the Group is actively seeking to establish manufacturing bases outside China to retain customer business, continuing to streamline operations and optimize costs, while maintaining a cautious outlook for golf businesses and monitoring hotel development - High US tariff policies adversely impact business, requiring the Group to promptly establish or acquire manufacturing bases outside China[36] - The Group is actively seeking opportunities to acquire golf equipment factories outside China[36] - The Group has implemented stringent measures to rationalize operations and optimize costs, and is committed to strengthening diversified marketing initiatives through value-added services[36] - Management maintains a cautious outlook for the golf business in the foreseeable future, and while the hotel development plan is currently delayed, it will continue to be monitored[36] Dividends The Board of Directors does not recommend the payment of any dividends for the current period - The Board of Directors does not recommend the payment of any dividends for the six months ended June 30, 2025[38] Financial Resources, Liquidity and Gearing Ratio The Group's cash and bank balances decreased, interest-bearing borrowings declined, but amounts payable to former directors increased, leading to a higher gearing ratio, while liquidity ratios remained reasonable and robust Financial Resources and Liquidity Indicators Summary (HK$ thousand) | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Bank balances and cash | 109,525 | 116,008 | | Bank borrowings | 28,723 | 56,383 | | Amounts payable to former directors | 30,580 | – | | Gearing ratio | 7.4% | 1.6% | | Current ratio | 1.56 | 1.58 | | Quick ratio | 1.44 | 1.41 | - Bank balances and cash decreased from HK$116,008 thousand to HK$109,525 thousand[39] - Bank borrowings decreased from HK$56,383 thousand to HK$28,723 thousand, but new amounts payable to former directors of HK$30,580 thousand were added[39] - The gearing ratio increased from 1.6% to 7.4%[40] Significant Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures During the period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, the Group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[41] Pledge of Assets The Group's bank borrowings are secured by property, plant and equipment, and right-of-use assets - Bank borrowings of approximately HK$28,723 thousand are secured by property, plant and equipment and right-of-use assets with a carrying value of approximately HK$62,250 thousand[42] Foreign Exchange Risk The Group primarily faces exchange rate fluctuation risks between RMB, HKD, and USD, but did not enter into any derivative contracts for hedging during the period - The Group primarily faces exchange rate fluctuation risks between Renminbi, Hong Kong Dollars, and US Dollars[43] - No derivative contracts were entered into during the period to hedge foreign exchange risk[43] Contingent Liabilities As of the end of the reporting period, the Group had no significant contingent liabilities - The Group had no significant contingent liabilities as of June 30, 2025[44] Events After the Reporting Period As of the date of the interim results announcement, the Group had no significant events after the reporting period - No significant events occurred from June 30, 2025, up to the date of the interim results announcement[45] Capital Commitments As of the end of the reporting period, the Group had contracted but unprovided capital commitments for plant and equipment - As of June 30, 2025, the Group had contracted but unprovided capital commitments for plant and equipment of approximately HK$72 thousand[46] Employees and Remuneration Policy The Group's employee count decreased, and it maintains a competitive remuneration package and performance-based incentive policy - As of June 30, 2025, the Group employed approximately 530 employees (compared to 680 employees in the prior year period)[47] - Remuneration is determined based on duties, experience, performance, and market practices, with discretionary bonuses distributed[47] Purchase, Sale or Redemption of the Company's Listed Securities During the period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[48] Corporate Governance This section outlines the Company's adherence to corporate governance principles and practices, including board structure and oversight Corporate Governance Code The Company complies with the Corporate Governance Code, though the roles of Chairman and Chief Executive are combined, which the Board believes provides strong leadership - The Company complies with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[49] - The roles of Chairman and Chief Executive are combined and held by Mr. Wong Hin Shing, deviating from code provision C.2.1[49] - The Board believes this arrangement provides strong and consistent leadership for the Company, enabling effective and efficient planning and implementation[49] Standard Code for Securities Transactions by Directors All directors confirmed compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers throughout the period - The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules[50] - All directors confirmed compliance with the Standard Code for the six months ended June 30, 2025[50] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviewed the Group's accounting policies, internal controls, and interim financial information - The Audit Committee comprises three independent non-executive directors[51] - The Audit Committee has reviewed the accounting policies and practices adopted by the Group and discussed auditing, internal controls, and financial reporting matters, including the condensed consolidated financial information for the period[51] Other Information This section includes details on the publication of interim results, acknowledgements, and the current composition of the Board of Directors Publication of Interim Results Announcement and Interim Report This results announcement has been published on the HKEX and the Company's website, with the interim report to be provided to shareholders in due course - This results announcement is published on the website of The Stock Exchange of Hong Kong Limited and the Company's website[52] - The interim report will be made available to shareholders and dispatched to shareholders in due course, and will also be published on the HKEX website and the Company's website[52] Acknowledgement The Chairman of the Board extends gratitude to all employees, shareholders, customers, suppliers, and business partners on behalf of the Board - Mr. Wong Hin Shing, the Chairman of the Board, on behalf of the Board, extends gratitude to all employees, shareholders, customers, suppliers, and business partners of the Group[53] Board Composition As of the announcement date, the Board of Directors comprises one executive director, one non-executive director, and three independent non-executive directors - As of the date of this announcement, the Board comprises Mr. Wong Hin Shing (Executive Director), Mr. Choi Sum Shing (Non-executive Director), and Mr. Sheng Baojun, Mr. Ho Kwong Yu, and Ms. Lin Lin (Independent Non-executive Directors)[53]