Financial Performance - Total revenue for the six months ended June 30, 2025, decreased by approximately 1.70% to HKD 108.3 million, compared to HKD 110.1 million for the same period in 2024[4] - The company reported a net loss attributable to shareholders of approximately HKD 10.4 million for the six months ended June 30, 2025, compared to a net loss of approximately HKD 17.1 million for the same period in 2024[4] - Basic loss per share for the six months ended June 30, 2025, was HKD 1.63 cents, compared to HKD 2.68 cents for the same period in 2024[4] - Revenue for the period was HKD 108,258 million, compared to HKD 110,135 million in the previous period, representing a decrease of approximately 1.6%[5] - Gross profit was HKD 16,233 million, down from HKD 20,328 million, indicating a decline of about 20%[5] - The net loss attributable to the company was HKD 17,144 million, compared to a net loss of HKD 10,410 million in the prior period, reflecting an increase in losses of approximately 64%[5] - Basic loss per share was HKD 2.68, compared to HKD 1.63 in the previous period, indicating a significant increase in loss per share[5] - Total revenue for the six months ended June 30, 2025, was HKD 108,258,000, compared to HKD 110,135,000 for the same period in 2024, representing a decrease of approximately 1.6%[19] - The group reported a pre-tax loss of HKD 10,594,000 in 2025, an improvement from a loss of HKD 17,097,000 in 2024, showing a reduction of approximately 38.5%[16] Revenue Breakdown - For the Beef Division, external sales were HKD 99,467,000 in 2025, down from HKD 110,059,000 in 2024, representing a decrease of approximately 9.4%[16] - The Property Renovation Services Division reported external sales of HKD 8,791,000 in 2025, a significant increase from HKD 76,000 in 2024, indicating a growth of over 11,500%[16] - The geographical revenue breakdown shows that revenue from Bangladesh was HKD 33,765,000 in 2025, down from HKD 40,796,000 in 2024, a decrease of about 17.5%[18] - Revenue from Vietnam decreased to HKD 20,844,000 in 2025 from HKD 8,383,000 in 2024, indicating a growth of approximately 148.5%[18] - Revenue from Hong Kong was HKD 20,342,000 in 2025, down from HKD 25,565,000 in 2024, representing a decline of about 20.5%[18] - Revenue from China was HKD 18,213,000 in 2025, a decrease from HKD 20,709,000 in 2024, reflecting a decline of approximately 12.0%[18] - Revenue from the United States was HKD 2,246,000 in 2025, with no revenue reported in 2024, indicating a new market entry[18] Expenses and Costs - Total operating expenses were HKD 32,176 million, compared to HKD 32,689 million, showing a slight decrease of about 1.6%[5] - Research and development expenses amounted to HKD 4,453 million, up from HKD 3,550 million, representing an increase of approximately 25.4%[5] - Selling and distribution expenses were HKD 6,695 million, slightly down from HKD 6,749 million, indicating a decrease of about 0.8%[5] - Administrative expenses totaled HKD 22,028 million, compared to HKD 22,390 million, reflecting a decrease of approximately 1.6%[5] - The pre-tax loss for the six months ended June 30, 2025, included employee benefits totaling HKD 24,832,000, compared to HKD 25,869,000 for the same period in 2024[21] Assets and Liabilities - Total non-current assets amounted to HKD 145,361 thousand as of June 30, 2025, compared to HKD 143,537 thousand as of December 31, 2024, reflecting an increase of 1.27%[6] - Current assets totaled HKD 171,709 thousand as of June 30, 2025, down from HKD 188,168 thousand as of December 31, 2024, representing a decrease of 8.74%[6] - Total liabilities decreased from HKD 71,946 thousand as of December 31, 2024, to HKD 71,946 thousand as of June 30, 2025, indicating no change[6] - The net value of current assets was HKD 99,763 thousand as of June 30, 2025, compared to HKD 110,233 thousand as of December 31, 2024, a decline of 9.43%[6] - Total equity attributable to the owners of the company was HKD 230,312 thousand as of June 30, 2025, down from HKD 240,722 thousand as of December 31, 2024, a decrease of 4.34%[7] - The company reported a financial asset impairment loss of HKD 104 million, compared to a gain of HKD 242 million in the previous period, indicating a significant shift in financial performance[5] Cash Flow and Financing - The company maintained cash on hand of approximately HKD 43.0 million as of June 30, 2025, down from HKD 57.9 million a year earlier[33] - The bank borrowings amounted to HKD 36.1 million as of June 30, 2025, an increase from HKD 30.8 million as of December 31, 2024[39] - The debt-to-equity ratio increased from 16.0% in 2024 to 18.0% as of June 30, 2025, due to lower interest loans obtained from a bank in China[33] - The capital debt ratio increased to 18.0% as of June 30, 2025, from 16.0% as of December 31, 2024[40] Strategic Initiatives - The company has implemented strict cost control measures to ensure profitability amidst geopolitical uncertainties and macroeconomic challenges[31] - The company launched its own developed multi-weave denim during the review period, catering to the growing market preference for differentiated, high-quality denim[35] - The company aims to optimize its supply chain and explore new markets through product innovation[35] - The group is focusing on high-margin textile solutions, investing heavily in R&D for high-end woven fabrics, aiming for higher profitability and reduced competition risks from basic textiles[49] - The group plans to strengthen partnerships with brand owners and actively participate in major fabric exhibitions in the US and China to secure more sales orders[50] - The group aims to develop sustainable textiles by integrating recycled materials and eco-friendly production methods to meet the growing market demand for responsible solutions[49] Shareholder Information - Wan Fung Investment holds a 75% equity interest in the company, making it the controlling shareholder[58] - Liu holds a 40% stake in Wan Fung Investment, while Dong Wei Ting and Dong Zhuo Ming each hold 20%[63] - The total number of shares held by Wan Fung Investment is 480,000,000, representing 75% of the issued shares[60] Other Information - The company did not declare or recommend any dividends for the six months ended June 30, 2025, consistent with the previous year[23] - The group has no significant contingent liabilities or capital commitments as of June 30, 2025[45][38] - No significant events occurred in the group after June 30, 2025, up to the announcement date[62] - The company will publish its interim report for the six months ending June 30, 2025, in accordance with applicable laws and regulations[64]
兴纺控股(01968) - 2025 - 中期业绩