Financial Performance - Revenue decreased by approximately 0.4% from about HKD 117.8 million in the first half of 2024 to about HKD 117.3 million in the first half of 2025[2] - Gross profit fell by approximately 5.5% from about HKD 87.4 million in the first half of 2024 to about HKD 82.6 million in the first half of 2025, with a gross profit margin decline of 3.7 percentage points to 70.5%[2] - The group recorded a net loss of approximately HKD 7.5 million in the first half of 2025, compared to a net profit of approximately HKD 7.5 million in the first half of 2024[2] - Total revenue for the six months ended June 30, 2025, was HKD 117,292,000, slightly down from HKD 117,811,000 in the same period of 2024, representing a decrease of 0.44%[12] - Retail business revenue increased to HKD 71,484,000 in 2025 from HKD 69,035,000 in 2024, marking a growth of 3.54%[12] - The basic and diluted loss per share for the first half of 2025 was HKD 5.65, compared to earnings per share of HKD 7.48 for the first half of 2024[3] - Basic loss per share for the six months ended June 30, 2025, was HKD 0.0564, compared to a profit of HKD 0.0748 per share in 2024[23] Dividend and Shareholder Returns - The board does not recommend the payment of an interim dividend for the six months ending June 30, 2025, compared to HKD 30 million for the same period in 2024[2] - The interim dividend declared for the six months ended June 30, 2024, amounted to HKD 30,000,000[34] - The company approved and paid a final dividend of HKD 20,000,000 for the previous fiscal year during the interim period[35] Assets and Liabilities - Total assets decreased from HKD 197.5 million as of December 31, 2024, to HKD 174.7 million as of June 30, 2025[4] - Current liabilities increased slightly from HKD 37.5 million as of December 31, 2024, to HKD 37.8 million as of June 30, 2025[4] - Non-current assets decreased from HKD 44.5 million as of December 31, 2024, to HKD 34.4 million as of June 30, 2025[4] - Cash and cash equivalents decreased from HKD 119.2 million as of December 31, 2024, to HKD 89.8 million as of June 30, 2025[4] - Trade receivables, net of loss provisions, decreased to HKD 25,242,000 as of June 30, 2025, from HKD 26,293,000 as of December 31, 2024, a decline of 4%[29] - Trade payables increased to HKD 4,677,000 as of June 30, 2025, compared to HKD 3,782,000 as of December 31, 2024, an increase of 23.6%[32] - Cash and cash equivalents stood at HKD 89,755,000 as of June 30, 2025, down from HKD 119,215,000 as of December 31, 2024, representing a decrease of 24.7%[31] Operational Costs - Employee costs increased to HKD 43,506,000 in 2025 from HKD 34,787,000 in 2024, reflecting a rise of 25.00%[19] - Depreciation expenses for property, plant, and equipment amounted to HKD 10,771,000 in 2025, up from HKD 9,682,000 in 2024, an increase of 11.25%[20] - Sales and distribution costs increased by approximately HKD 17.4 million or 35.3% in the first half of 2025, primarily due to increased advertising and promotional expenses related to new products and brand development[48] - Administrative and other operating expenses rose by approximately HKD 8.1 million or 43.8% in the first half of 2025, mainly due to increased employee costs and higher depreciation from an increase in the average number of self-operated retail stores from 26 to 33[49] - Financing costs increased by approximately HKD 104,000 or 21.7% to about HKD 583,000 in the first half of 2025, attributed to higher interest expenses from lease liabilities due to an increase in the average number of self-operated retail stores[51] Inventory and Impairment - The inventory of health and beauty products increased to HKD 33,883,000 as of June 30, 2025, compared to HKD 22,992,000 as of December 31, 2024, reflecting a growth of 47.5%[28] - The company recognized an impairment loss of HKD 1,036,000 for certain underperforming retail stores in 2025, compared to no impairment loss in 2024[27] - The provision for obsolete inventory decreased to HKD 59,000 as of June 30, 2025, from HKD 126,000 as of December 31, 2024[28] Capital Expenditures and Funding - Capital expenditures in the first half of 2025 were approximately HKD 0.2 million, a significant decrease from approximately HKD 3.2 million in the first half of 2024, with future capital expenditures expected to increase as business grows[59] - The company raised approximately HKD 125,001,000 from the issuance of 33,333,600 new ordinary shares at an issue price of HKD 3.75 per share[37] - The net proceeds from the global issuance of 33,333,600 shares at HKD 3.75 per share amounted to approximately HKD 94.4 million after deducting underwriting fees and other expenses[76] - The planned use of net proceeds includes 35.7% for marketing and promotional activities to enhance brand recognition, totaling approximately HKD 33.7 million[77] - 37.8% of the proceeds, approximately HKD 35.7 million, is allocated for expanding and optimizing the sales network[77] - 12.4% of the proceeds, approximately HKD 11.7 million, is designated for talent recruitment[77] - The total amount of net proceeds utilized as of the reporting period was HKD 18.3 million, leaving HKD 76.1 million unutilized[77] Corporate Governance and Compliance - The audit committee consists of three independent non-executive directors, ensuring proper oversight of financial reporting and internal controls[80] - The interim financial report for the six months ending June 30, 2025, has been reviewed by an independent auditor in accordance with Hong Kong standards[81] - The interim results announcement and report will be published on the company's website and the Hong Kong Stock Exchange website[82] - The company has maintained sufficient public float as per listing rules during the reporting period and up to the announcement date[74] Future Outlook - The group plans to continue product innovation and development, focusing on launching the product "Herbs Tiger Milk Cough Relief" and the new brand "MedHerbs" in the second half of 2025[40] - The group operates nine proprietary brands as of June 30, 2025, including "Herbs," "ZINO," and "MedHerbs"[38] - The group confirmed the recognition of all revenue upon customer ownership and acceptance of products, adhering to HKFRS 15[12] - The group had no significant contingent liabilities as of June 30, 2025, and December 31, 2024[61] - No significant investments or plans for major acquisitions or disposals of subsidiaries, joint ventures, or associates were reported for the first half of 2025[65][66]
草姬集团(02593) - 2025 - 中期业绩