Financial Performance - Revenue for the six months ended June 30, 2025, was HK$469,858,000, a decrease of 16.6% compared to HK$563,536,000 for the same period in 2024[11] - Gross profit for the same period was HK$78,727,000, down 27.5% from HK$108,445,000 in 2024[11] - Operating profit decreased to HK$18,169,000, a decline of 36.1% from HK$28,406,000 in the previous year[11] - Profit for the period attributable to equity holders was HK$14,338,000, a decrease of 8.7% compared to HK$15,701,000 in 2024[11] - Total comprehensive income for the period attributable to equity holders was HK$13,665,000, down from HK$14,316,000 in 2024[11] Assets and Liabilities - Total assets as of June 30, 2025, were HK$806,541,000, a decrease of 13.6% from HK$933,499,000 at the end of 2024[14] - Total liabilities decreased from HK$712,360,000 as of December 31, 2024, to HK$571,737,000 as of June 30, 2025, representing a reduction of approximately 19.7%[16] - Current liabilities decreased from HK$661,363,000 to HK$533,302,000, a decline of about 19.4%[16] - Trade receivables decreased significantly to HK$178,362,000, down 34.3% from HK$270,925,000 in 2024[14] - Inventories also decreased to HK$173,077,000, a decline of 11.8% from HK$196,314,000 in 2024[14] Equity and Cash Flow - Total equity increased to HK$234,804,000, up from HK$221,139,000 at the end of 2024, reflecting a growth of 6.2%[14] - Cash and cash equivalents rose to HK$299,792,000, an increase of 27.4% from HK$235,333,000 in 2024[14] - Net cash generated from operating activities for the six months ended June 30, 2025, was HK$73,874,000, an increase of 4.9% compared to HK$70,715,000 for the same period in 2024[23] - Net cash generated from investing activities was HK$71,973,000, a significant recovery from a net cash used of HK$24,108,000 in the previous year[23] - Cash and cash equivalents at the end of the period increased to HK$299,792,000 from HK$251,738,000, reflecting a net increase of HK$64,581,000[23] Revenue Breakdown - For the six months ended June 30, 2025, revenue from Customer A was HK$77,196,000, down 33.7% from HK$116,537,000 in the same period of 2024[53] - Revenue from the United States increased to HK$174,410,000 in the six months ended June 30, 2025, up 27% from HK$137,435,000 in 2024[55] - The Group's revenue from the Philippines decreased to HK$111,255,000 in the six months ended June 30, 2025, down 38.4% from HK$180,454,000 in 2024[55] - The Group's revenue from Germany increased to HK$11,079,000 in the six months ended June 30, 2025, up 14.1% from HK$9,707,000 in 2024[55] Cost Management - Total cost of sales, selling and distribution expenses, and administrative expenses amounted to HK$480,849,000, a reduction of 10.91% compared to HK$539,874,000 in the previous year[84] - Raw materials used decreased by 17.14% to HK$297,680,000 from HK$359,304,000 year-on-year[84] - Employee benefit costs and manpower service expenses were HK$119,953,000, down 3.25% from HK$123,973,000 in the prior period[84] - Finance costs, net, significantly decreased to HK$2,312,000 from HK$8,011,000, representing a reduction of 71.16%[73] Shareholding Structure - As of June 30, 2025, Smartview holds 51,000,000 shares, representing 51.0% of the company's total shares[198] - Smart Union owns 12,000,000 shares, accounting for 12.0% of the company's total shares[198] - Grandview Group Holdings also holds 12,000,000 shares, which is 12.0% of the company's total shares[198] - Mr. Wilson Chu has an interest in controlled corporations amounting to 63,000,000 shares, representing 63.0% of the company's total shares[198] Operational Insights - The production ramp-up at the Batam manufacturing site positively impacted growth with US customers, enhancing operational flexibility amid tariff uncertainties[160] - The Group plans to maintain a cautious approach to procurement and inventory management while focusing on operational efficiency and disciplined cost control[161] - The Group has implemented strategic procurement moderation in response to uncertainties surrounding U.S. tariff policies[147] Other Financial Information - The Directors do not recommend any interim dividend for the six months ended 30 June 2025, consistent with the previous year[186] - The Group did not have any contingent liabilities as at 30 June 2025, consistent with the previous year[169] - There were no significant events after 30 June 2025 that have a material effect on the Group[183]
丽年国际(09918) - 2025 - 中期财报