Financial Performance - For the first half of 2025, total sales amounted to HK$109.0 million, a decrease of 3.5% compared to HK$112.9 million in the same period of 2024[17]. - The loss attributable to owners of the Company was HK$12.2 million, representing an increase of 39.4% from the loss of HK$8.8 million in the corresponding period of 2024[17]. - Revenue for the six months ended June 30, 2025, was HK$108,960,000, a decrease of 3.4% from HK$112,912,000 in 2024[143]. - Loss before taxation increased to HK$13,156,000 compared to HK$9,753,000 in the previous year, indicating a worsening financial performance[143]. - Loss for the period attributable to owners of the Company was HK$12,218,000, compared to HK$8,766,000 in 2024, representing a 39.5% increase in losses[144]. - Total comprehensive expense for the period was HK$7,989,000, a significant improvement from HK$14,626,000 in the prior year[144]. - Basic and diluted loss per share for the period was HK$4.74, compared to HK$3.40 in the previous year, indicating a decline in shareholder value[144]. - The Group's loss for the Period increased by 44.2% to HK$13.4 million, attributed to a decline in overall revenue and other income[56]. Sales and Revenue Breakdown - Self-operated retail sales declined by 4.6% year-on-year due to weak consumer confidence in Hong Kong[18]. - Sales to distributors decreased by 26.6% year-on-year, reflecting a challenging operating environment[18]. - Revenue from bed linens was HK$60,246,000, a decrease of 4.7% from HK$63,249,000 in 2024[168]. - Revenue from duvets and pillows remained stable at HK$43,390,000, slightly up from HK$43,258,000 in 2024[168]. - Revenue from Hong Kong and Macau decreased to HK$80,017,000, down 6.5% from HK$85,414,000 in 2024[169]. - Sales to other customers in Mainland China increased by 21.5% year-on-year, benefiting from a rise in wholesales[22]. Market Conditions and Challenges - The prolonged conflict in the Middle East and proposed U.S. import tariffs have negatively impacted consumer confidence in the PRC and Hong Kong[14]. - The business environment for the catering and retail sectors in Hong Kong remains very challenging due to cautious spending by visitors[14]. - Economic challenges in Mainland China include weakened export growth and declining domestic property investment, impacting consumer demand[29]. - The Group will adopt a prudent approach focusing on revenue enhancement and cost control in response to market challenges in the second half of 2025[30]. Operational Developments - As of June 30, 2025, the Group had 160 points of sales (POS), an increase from 155 POS as of December 31, 2024[18]. - The Group plans to optimize underperforming points of sale (POS) and streamline its self-operated counter network in Southern Mainland China[31]. - A joint operation model for distributors will be introduced, focusing on store leasing and operations while the Group provides management services[31]. - The Group aims to secure OEM production orders from major chain store clients and is in discussions with a department store group for nationwide sales[32]. - A local lifestyle livestreaming initiative will be implemented to integrate online and offline channels, boosting sales and traffic to physical stores[33]. Financial Position and Cash Flow - The Group maintained a healthy financial position with net cash of approximately HK$131.9 million as of 30 June 2025[63]. - The current ratio improved to 3.6 as of 30 June 2025, compared to 3.4 as of 31 December 2024[60]. - Cash and cash equivalents at the end of the period were HK$129,608,000, an increase from HK$117,778,000 at the end of June 2024[166]. - Net cash from operating activities increased to HK$5,275,000 in 2025 from HK$1,660,000 in 2024, indicating a significant improvement in operational cash flow[150]. - The company recorded a net cash outflow from investing activities of HK$8,211,000, compared to HK$9,754,000 in the previous year, showing a reduction in cash used for investments[150]. Corporate Governance and Compliance - The Company has established an audit committee to review and supervise the financial reporting system, risk management, and internal control systems, in compliance with rule 3.21 of the Listing Rules[129]. - The Board of Directors consists of three Executive Directors and three Independent Non-executive Directors, ensuring compliance with gender diversity requirements[133]. - The Company has complied with the Corporate Governance Code during the Review Period, as stated by the Directors[127]. - The Company has adopted its own code of conduct for Directors' dealings in securities, confirming compliance with the required standards throughout the Review Period[128]. Shareholder Information - The total number of Shares in issue as of June 30, 2025, is 257,854,000[113]. - World Empire Investment Inc. holds 150,000,000 Shares, representing 58.2% of the Company's issued share capital[119]. - The total number of share options held by directors and chief executives as of June 30, 2025, is 6,200,000[102]. - The Group has not recommended the payment of an interim dividend for the six months ended June 30, 2025, consistent with the previous year[94].
卡撒天娇(02223) - 2025 - 中期财报