Financial Performance - Revenue for the six months ended September 30, 2025, was HKD 279,607,000, a decrease of 13.5% compared to HKD 323,320,000 for the same period in 2024[8] - Gross profit increased to HKD 54,217,000, up 4.6% from HKD 51,889,000 year-over-year[8] - The net loss for the period was HKD 8,134,000, an improvement from a loss of HKD 15,367,000 in the previous year, representing a 47.1% reduction in losses[9] - Basic and diluted loss per share improved to HKD 1.7 from HKD 3.3, indicating a 48.5% decrease in loss per share[8] - The company incurred a loss of HKD 14,785,000 during the period, leading to a total comprehensive loss of HKD 15,043,000[12] - The group reported a segment profit of HKD 2,518,000 for the six months ending September 30, 2025, compared to a segment loss of HKD 3,456,000 for the same period in 2024[24][26] - The pre-tax loss for the six months ending September 30, 2025, was HKD 7,303,000, an improvement from a pre-tax loss of HKD 15,202,000 for the same period in 2024[24][26] - Total employee benefits expenses for the six months ending September 30, 2025, amounted to HKD 63,797,000, an increase from HKD 53,631,000 in the same period of 2024, reflecting a rise of approximately 18.9%[27] - Revenue decreased by 13.5% to HKD 279,600,000, with gross profit at HKD 54,200,000, resulting in a gross margin of 19.4%, an increase of approximately 3.4 percentage points year-on-year[46] - Pre-tax loss reduced by 52.0% to HKD 7,300,000, attributed to improved operational efficiency and cost control[46] Assets and Liabilities - Total assets decreased to HKD 438,418,000 from HKD 468,428,000, reflecting a decline of 6.4%[10] - Current liabilities decreased to HKD 151,837,000 from HKD 174,245,000, a reduction of 12.8%[10] - Non-current liabilities increased to HKD 2,630,000 from HKD 774,000, showing a significant rise of 239.5%[11] - Cash and cash equivalents increased to HKD 146,997,000 from HKD 136,583,000, a growth of 7.3%[10] - Inventory decreased to HKD 94,401,000 from HKD 105,881,000, a decline of 10.8%[10] - The company’s total equity attributable to owners decreased to HKD 382,712,000 as of September 30, 2025, down from HKD 399,428,000 as of April 1, 2024[12] - As of September 30, 2025, trade receivables amounted to HKD 65,141,000, a decrease from HKD 104,196,000 as of March 31, 2025, reflecting a significant reduction in receivables aged 0-30 days from HKD 87,794,000 to HKD 42,474,000[34] - Trade payables decreased slightly to HKD 56,320,000 from HKD 57,487,000, with payables aged 0-30 days also declining from HKD 34,485,000 to HKD 29,740,000[35] Cash Flow and Financing - The net cash generated from operating activities for the six months ended September 30, 2025, was HKD 34,774,000, compared to a net cash outflow of HKD 24,106,000 in the previous year[14] - The cash and cash equivalents at the end of the period increased to HKD 146,997,000 from HKD 136,583,000 at the beginning of the period[14] - The company has reported a significant increase in bank loans raised, amounting to HKD 80,981,000 during the financing activities for the period[14] - The company repaid bank borrowings of HKD 102,129,000 during the six months ended September 30, 2025, compared to HKD 81,592,000 in the same period last year[36] - New bank borrowings of HKD 80,981,000 were raised during the reporting period, intended for general working capital, with a requirement for repayment within one year[36] Market Performance - Sales in the North American market decreased by 23.3% to HKD 101,100,000, with U.S. sales contributing HKD 74,500,000, a slight increase of 2.5%[42] - Sales in the Asian market decreased by 8.4% to HKD 162,800,000, primarily due to an 11.5% decline in sales to domestic brands in China, totaling HKD 43,000,000[44] - The company experienced a significant drop in sales to Canada, down 55.0% to HKD 26,600,000, due to economic weakness and changes in procurement strategies by North American retailers[43] - The overall economic slowdown and trade tensions have negatively impacted sales, particularly in the domestic market, leading to a decrease in sales to domestic brand customers[39] - Total retail sales slightly decreased by 6.4% to HKD 108,100,000, while operating profit from self-owned retail business increased by 31.3% to HKD 4,200,000[45] Strategic Initiatives - The company plans to continue expanding its market presence in North America and Asia, focusing on increasing sales in these regions[21] - The company is enhancing its manufacturing platform in Vietnam to alleviate supply chain pressures and is exploring strategic alliances for flexible production capabilities[47] - The company plans to continue a digital-first omnichannel business model for its retail brand "Betu," focusing on high conversion rate sales through live and social e-commerce platforms[48] - The company focused on improving production efficiency and streamlining operations, resulting in an improvement in operational losses compared to the previous year[41] Corporate Governance - The board does not recommend an interim dividend for the six months ended September 30, 2025[56] - The company has complied with all corporate governance codes as per the listing rules during the reporting period[68] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting policies and financial reporting matters[67] - The company has adopted the standard code for securities transactions by directors and confirmed compliance throughout the reporting period[69] - There were no undisclosed interests in the company's shares by any other individuals as of September 30, 2025[63]
同得仕(集团)(00518) - 2026 - 中期财报