Financial Performance - Total revenue for the six months ended September 30, 2025, was approximately RMB 1,028.0 million, a decrease of approximately 3.4% compared to RMB 1,064.4 million for the same period in 2024[11]. - Profit for the six months ended September 30, 2025, was approximately RMB 133.2 million, an increase of approximately 15.3% compared to RMB 115.5 million for the same period in 2024[11]. - Basic earnings per share for the six months ended September 30, 2025, were approximately RMB 11.3 cents, a decrease of approximately 1.7% compared to RMB 11.5 cents for the same period in 2024[11]. - For the six months ended September 30, 2025, the Group's operating profit increased to approximately RMB 164.4 million, representing a 21.2% year-on-year growth from RMB 135.6 million[18]. - The Group's profit for the same period rose to approximately RMB 133.2 million, reflecting a 15.3% increase compared to RMB 115.5 million in the previous year[18]. - Adjusted profit for the period for the six months ended September 30, 2025 was RMB 114,673,000, compared to RMB 108,834,000 for the same period in 2024, reflecting an increase of approximately 5.1%[83]. - Profit for the period for the six months ended September 30, 2025 was RMB 133,236,000, up from RMB 115,457,000 in 2024, representing a growth of about 15.4%[83]. Dividends - The Board declared an interim dividend of HK 4.6 cents per share and a special dividend of HK 3.4 cents per share for the six months ended September 30, 2025, compared to no dividends for the same period in 2024[11]. - The company paid dividends totaling RMB 120,000,000, an increase from RMB 64,444,000 in the previous period[161]. Market and Industry Insights - The market size of perfumes in China is expected to reach approximately RMB 44.0 billion by 2028, indicating stable growth in the industry[12]. - Increased competition has led to aggressive promotions and pricing strategies among competitors, resulting in price wars that compress profit margins across the industry[13]. - The growing popularity of niche perfume houses is driving rapid growth in adjacent segments such as home fragrance, appealing to consumers who value individuality and quality[12]. Operational Highlights - The Group operates over 8,000 online and offline self-operated and retailer points of sale across more than 400 cities in mainland China, Hong Kong, and Macau[14]. - The Group's product portfolio includes not only perfumes but also color cosmetics, skincare products, personal care products, eyewear, and home fragrances, primarily sourced from Europe, Japan, and the United States[14]. - The Group's brand portfolio consisted of 74 brands as of September 30, 2025, with 53 brands offering perfumes, 22 brands in home fragrances, and 17 brands in skincare products[31]. - The Group launched five upgraded perfumes and two scented candles under its own brand, Santa Monica, in 2025, marking its entry into the home fragrance market[32]. - The Group organized the second International Perfume Festival in Hong Kong in July 2025, enhancing its industry influence and market presence[19]. - The Group's omni-channel sales strategy includes direct sales through e-commerce and social media platforms, as well as offline retail channels[40]. - The Group had a total of 1,115 employees as of September 30, 2025, a decrease from 1,133 employees as of March 31, 2025[123]. Financial Position - The Group's available banking facilities amounted to approximately RMB 227.1 million as of September 30, 2025[84]. - Total assets increased to RMB 1,954,510,000 from RMB 1,211,111,000 as of March 31, 2025, representing a growth of approximately 61.5%[154]. - Current assets rose to RMB 1,861,268,000, up from RMB 1,071,240,000, indicating a 73.5% increase[154]. - Total equity reached RMB 1,543,504,000, significantly up from RMB 690,990,000, marking a 123.5% increase[156]. - Cash and cash equivalents surged to RMB 1,005,463,000, compared to RMB 255,998,000, representing a 292.5% increase[154]. Cost Management - The cost of sales decreased by approximately 3.3% from approximately RMB 532.2 million for the six months ended 30 September 2024 to approximately RMB 514.4 million for the six months ended 30 September 2025[54]. - Selling and marketing expenses decreased from approximately RMB 299.9 million for the six months ended 30 September 2024 to approximately RMB 288.1 million for the six months ended 30 September 2025[59]. - Selling and marketing expenses accounted for 28.0% of total revenue for the six months ended 30 September 2025, a decrease of 0.2 percentage points from 28.2% for the six months ended 30 September 2024[60]. - Administrative expenses rose from approximately RMB 102.7 million for the six months ended 30 September 2024 to approximately RMB 107.3 million for the six months ended 30 September 2025, mainly due to an increase of approximately RMB 7.7 million in listing expenses[65]. Risk Management - The Group's overall risk management program focuses on minimizing potential adverse effects on financial performance due to various financial risks, including foreign exchange risk and liquidity risk[179]. - The Group employs projected cash flow analysis to manage liquidity risk, ensuring all liabilities due can be met[182]. - The Group's liquidity risk is primarily due to mismatches in the amount and maturity of assets and liabilities[181]. Shareholder Information - Mr. Lau Kui Wing holds a significant interest in the company with 1,000,000,000 shares, representing approximately 73.72% of the total shareholding[127]. - The total number of issued shares as of September 30, 2025, was 1,356,508,000[140]. - The company issued 23,108,000 new shares at an offer price of HK$0.1 per share during the six months ended September 30, 2025, due to the exercise of options under the Pre-IPO Share Option Scheme[139]. Future Plans - The Group plans to expand its network of directly-operated stores, including adding more PERFUME BOX stores to enhance brand awareness and consumer experience[47]. - The Group aims to optimize its brand portfolio by introducing more leading premium home fragrance and niche perfume brands while developing a systematic self-owned brand incubation platform[46]. - The expected timeline for the utilization of net proceeds is based on the Directors' best estimation and may change according to future market conditions[122].
颖通控股(06883) - 2025 - 中期财报