Revenue and Profitability - Revenue for the first half of the 2025 fiscal year decreased by approximately 5.1% to about HKD 38.0 million from HKD 40.1 million in the same period of 2024[9]. - Gross profit dropped to approximately HKD 6.3 million, with a gross margin of about 16.5%, down from HKD 19.4 million and 48.5% respectively in the first half of 2024[9][10]. - Loss attributable to equity holders increased to approximately HKD 21.8 million from HKD 5.3 million in the first half of 2024[9][10]. - The group's revenue decreased from approximately HKD 40.1 million in the first half of the 2024 fiscal year to approximately HKD 38.0 million in the first half of the 2025 fiscal year, a decline of about HKD 2.1 million or 5.1%[17]. - The watch business revenue fell from approximately HKD 23.0 million in the first half of the 2024 fiscal year to approximately HKD 12.3 million in the first half of the 2025 fiscal year, a decrease of HKD 10.7 million or 46.5%[18]. - The smart watch manufacturing business revenue increased from approximately HKD 17.1 million in the first half of the 2024 fiscal year to approximately HKD 25.7 million in the first half of the 2025 fiscal year, an increase of HKD 8.6 million or 50.3%[19]. - The group recorded a loss attributable to owners of approximately HKD 21.8 million in the first half of the 2025 fiscal year, compared to a loss of approximately HKD 5.3 million in the first half of the 2024 fiscal year[28]. - The company reported a loss before tax of HKD 21,750,000, compared to a loss of HKD 6,711,000 in the previous year, indicating a significant increase in losses[71]. - The group recorded a net loss before tax of HKD 21,750,000 for the six months ended June 30, 2025, compared to a net loss of HKD 6,711,000 in 2024[80]. Market Performance - The number of sales points in China as of June 30, 2025, was 591, with revenue from this segment decreasing by approximately 49.2% to HKD 9.5 million, accounting for about 77.3% of total watch business revenue[13]. - Sales in the Hong Kong and Macau markets decreased by approximately 11.1% to HKD 1.6 million, with 30 sales points, representing about 12.7% of total watch business revenue[14]. - Revenue from other markets, primarily in Southeast Asia and Europe, fell by approximately 52.0% to HKD 1.2 million, with 79 sales points, accounting for about 10.0% of total watch business revenue[15]. - Revenue from external customers in China was HKD 30,739,000, down from HKD 32,409,000 in 2024, indicating a decrease of 5.2%[84]. Cost and Expenses - The group's gross profit decreased from approximately HKD 19.4 million in the first half of the 2024 fiscal year to approximately HKD 6.3 million in the first half of the 2025 fiscal year, a decline of about HKD 13.2 million or 67.8%[23]. - The group's selling costs increased from approximately HKD 20.6 million in the first half of the 2024 fiscal year to approximately HKD 31.7 million in the first half of the 2025 fiscal year, an increase of HKD 11.1 million or 53.9%[20]. - The distribution expenses rose from approximately HKD 7.6 million in the first half of the 2024 fiscal year to approximately HKD 8.8 million in the first half of the 2025 fiscal year, an increase of HKD 1.2 million or 15.7%[25]. Inventory and Assets - Inventory as of June 30, 2025, was approximately HKD 304.4 million, an increase of approximately HKD 16.3 million from HKD 288.1 million as of December 31, 2024[29]. - The company’s total assets decreased slightly to HKD 460,576,000 from HKD 465,602,000 as of December 31, 2024[72]. - Current liabilities increased to HKD 416,398,000 from HKD 409,881,000, indicating a rise in short-term obligations[72]. - The company’s equity decreased to HKD 93,945,000 from HKD 101,905,000, reflecting a decline in shareholder value[73]. - Trade receivables as of June 30, 2025, amounted to HKD 134,751,000, down from HKD 152,023,000 as of December 31, 2024, reflecting a decrease of approximately 11.4%[95]. - The company’s total financial assets as of June 30, 2025, amounted to HKD 154,271, down from HKD 175,418 as of December 31, 2024, reflecting a decrease of about 12.1%[107]. Strategic Initiatives - The company aims to enhance product diversity and innovate in design and functionality to adapt to market changes and improve profitability[12]. - The traditional watch industry faces challenges from technological advancements and the rise of smartwatches, necessitating continuous innovation from the brand[12]. - The company plans to expand its distribution network and enhance brand value to attract consumers who are increasingly focused on cost-performance ratio and product quality[11]. - The company is actively expanding its e-commerce operations across multiple platforms, optimizing product management and enhancing customer relationships to ensure stable sales performance[46][47]. - The company is exploring new sales channels, including partnerships with live streaming platforms like Douyin, to boost brand exposure and sales efficiency[48][49]. - The company is implementing strategies to improve supply chain coordination and manage slow-moving inventory, aiming to enhance inventory turnover rates[50]. - The brand is maintaining its high-end positioning through a structured pricing system, ensuring product value is fully represented while implementing promotional activities without disrupting overall pricing integrity[51]. - The company is focused on optimizing inventory structure and controlling costs to reduce overall inventory levels and improve cash flow[52]. - The company is committed to enhancing internal training to improve staff understanding of brand positioning and market strategies, ensuring effective execution of management responsibilities[53]. - The smart watch accessory manufacturing business is expected to become a significant revenue source, aligning with the company's diversification strategy and market expansion efforts in the smart watch sector[54]. - Despite challenges in the macroeconomic environment and consumer confidence, the company remains optimistic about the smart watch market and plans to expand its international presence while controlling operational costs[55]. Shareholder Information - As of June 30, 2025, Teguh Halim holds 6,000,000 shares, representing approximately 0.14% of the total issued shares of the company[56]. - International Brand Limited owns 205,834,485 shares, accounting for 57.14% of the total issued shares[60]. - Chao Feng Limited holds 223,854,485 shares, which is 62.14% of the total issued shares[60]. - Han Long and Lin Shuying each hold 228,854,485 shares, representing 63.53% of the total issued shares[60]. - Anli Investment Limited, fully owned by Xu Hong, holds 37,935,000 shares, which is 10.53% of the total issued shares[60]. - The total number of issued shares as of June 30, 2025, is 360,257,512 shares[64]. - The company has not implemented any share option schemes as of the reporting date[63]. Compliance and Governance - The audit committee has reviewed the interim results and reports for the six months ended June 30, 2025, confirming compliance with applicable accounting standards[67]. - The company has adhered to the corporate governance code throughout the reporting period[65]. - No purchases, sales, or redemptions of the company's listed securities occurred during the six months ended June 30, 2025[68]. - The company did not declare or recommend any dividends for the six months ended June 30, 2025, and no dividends were suggested post-reporting period[9].
依波路(01856) - 2025 - 中期财报