Financial Performance - Total revenue for the first half of 2025 was approximately HKD 108.3 million, a slight decrease from HKD 110.1 million in the same period of 2024[4] - Gross profit increased to approximately HKD 20.3 million, with a gross margin of 18.8%, compared to HKD 16.2 million and a gross margin of 14.7% in the previous year[4] - Loss attributable to shareholders narrowed to approximately HKD 10.4 million, improving from a loss of HKD 17.1 million in the first half of 2024, with a loss per share of HKD 1.63 compared to HKD 2.68[4] - Revenue for the six months ended June 30, 2025, was HKD 108,258,000, a decrease of 1.6% compared to HKD 110,135,000 for the same period in 2024[48] - Gross profit increased to HKD 20,328,000, representing a 25.8% increase from HKD 16,233,000 in the previous year[48] - The company reported a net loss attributable to shareholders of HKD 10,410,000, an improvement from a loss of HKD 17,144,000 in the same period last year[48] - Basic and diluted loss per share improved to HKD 1.63 from HKD 2.68 year-over-year[48] - The company reported a total loss before tax of HKD 10,594,000, compared to a loss of HKD 17,097,000 in the same period last year[63] - Pre-tax loss for the six months ended June 30, 2025, was HKD 18,082,000, an increase of 6.3% compared to HKD 17,013,000 in 2024[70] Financial Position - The debt-to-equity ratio increased from 16.0% in 2024 to 18.0% as of June 30, 2025, due to refinancing with lower interest loans from a bank in China[7] - As of June 30, 2025, the net current assets were approximately HKD 99.8 million, a decrease from HKD 110.2 million as of December 31, 2024[15] - Cash and cash equivalents stood at approximately HKD 43.0 million as of June 30, 2025, down from HKD 46.2 million as of December 31, 2024[15] - The bank borrowings amounted to approximately HKD 36.1 million as of June 30, 2025, compared to HKD 30.8 million as of December 31, 2024[15] - Total liabilities decreased to HKD 71,946,000 from HKD 77,935,000, indicating improved financial stability[50] - Current assets decreased to HKD 171,709,000 from HKD 188,168,000 at the end of 2024[49] - Non-current assets totaled HKD 145,361,000, an increase from HKD 143,537,000 as of December 31, 2024[49] Operational Developments - The company expanded its property renovation business in Shanghai, generating HKD 8.8 million in revenue, which accounted for 8.1% of total revenue[10] - The property renovation business continues to provide stable income, balancing the cyclical nature of the production business[12] - The company is actively restructuring its product portfolio to focus on high-margin textile solutions, investing in R&D for high-end woven fabrics[12] - The company plans to enhance collaboration with brand owners and participate in major denim exhibitions in the US and China to secure more sales orders[12] - The company is adjusting its production layout and expanding operations in Vietnam, with plans to relocate machinery from Guangdong, China, expected to be completed by the end of 2025[11] Cash Flow and Investments - The company generated a net cash outflow from operating activities of HKD 5,193,000, compared to a cash inflow of HKD 715,000 in the previous year[53] - Financing activities resulted in a net cash inflow of HKD 1,855,000, a significant improvement from a net cash outflow of HKD 4,008,000 in the same period last year[54] - Capital expenditures for the interim period were approximately HKD 0.6 million, compared to HKD 0.4 million in the first half of 2024[19] - The group had no major investments or acquisitions during the interim period[25] - There are no specific plans for significant investments or capital assets as of June 30, 2025[26] Employee and Management Information - The group had 353 employees as of June 30, 2025, an increase from 346 employees as of December 31, 2024[17] - Total employee benefits expenses amounted to HKD 25,869,000, up 4.2% from HKD 24,832,000 in the previous year[70] - The total compensation for directors and key management personnel was HKD 5,878,000 for the six months ended June 30, 2025, slightly up from HKD 5,836,000 in the previous year[86] Shareholder Information - Wan Fung Investment holds a 75% equity interest in the company, representing 480,000,000 shares[40] - Liu, Dong Wei Ting, and Dong Zhuo Ming each own 100% of their respective shares in Wan Fung Investment, which is a controlled corporation[38] - Liu holds a 40% stake in Wan Fung Investment, while Dong Wei Ting and Dong Zhuo Ming each hold 20%[43] Other Information - The independent review report concluded that there were no matters that would lead to a belief that the interim financial information was not prepared in accordance with Hong Kong Accounting Standard 34[47] - The company has not experienced any significant events from June 30, 2025, to the report date[42] - There were no significant contingent liabilities as of June 30, 2025[22] - The group did not declare or recommend any dividends for the six months ended June 30, 2025, consistent with the previous year[72] - The company assessed that the fair value of financial instruments closely approximates their carrying amounts due to their short maturity[89]
兴纺控股(01968) - 2025 - 中期财报