Financial Performance - Revenue for the six months ended September 30, 2025, was HKD 48,172,000, a decrease of 4.1% from HKD 50,571,000 in the same period of 2024[6] - Gross profit for the same period was HKD 36,260,000, down 12.5% from HKD 41,572,000 year-over-year[6] - Operating loss for the six months was HKD 16,760,000, an improvement from a loss of HKD 21,101,000 in the previous year, indicating a 20.8% reduction in losses[6] - The net loss for the period was HKD 18,583,000, compared to a net loss of HKD 23,610,000 in the prior year, reflecting a 21.4% decrease in losses[6] - Basic loss per share was HKD 0.06, an improvement from HKD 0.08 in the same period last year[8] - The group reported a loss before tax of HKD 18,824,000 for the six months ended September 30, 2025, compared to a loss of HKD 23,943,000 in 2024, reflecting a reduction in losses[20] Assets and Liabilities - Total assets as of September 30, 2025, were HKD 443,324,000, a decrease from HKD 460,285,000 as of March 31, 2025[9] - Current liabilities amounted to HKD 119,628,000, slightly up from HKD 116,260,000 at the end of the previous fiscal year[11] - The total equity attributable to shareholders was HKD 298,423,000, down from HKD 318,736,000 as of March 31, 2025[11] - The group’s total liabilities included new borrowings of HKD 74,521,000, an increase from HKD 54,471,000 in the previous year[14] - The group’s accounts receivable as of September 30, 2025, totaled HKD 4,782,000, down from HKD 5,584,000 as of March 31, 2025[26] - The group’s accounts payable increased to HKD 4,336,000 as of September 30, 2025, compared to HKD 3,705,000 as of March 31, 2025[27] Cash Flow and Liquidity - Cash and cash equivalents increased to HKD 8,789,000 from HKD 4,724,000, indicating improved liquidity[9] - Operating cash flow for the six months ended September 30, 2025, was HKD 5,428,000, compared to HKD 2,879,000 for the same period in 2024, representing an increase of 88.5%[14] - Net cash generated from operating activities increased to HKD 5,261,000 from HKD 1,361,000, marking a significant improvement[14] - The group’s cash and cash equivalents increased to HKD 8,789,000 at the end of the reporting period, up from HKD 11,336,000 at the end of March 2024[14] - As of September 30, 2025, the group's cash and bank deposits totaled approximately HKD 9,000,000, an increase from HKD 5,000,000 on March 31, 2025[50] - The group secured a total of HKD 89,000,000 in comprehensive bank financing as of September 30, 2025, up from HKD 86,000,000 on March 31, 2025[50] Operational Developments - The group engaged in more frequent short-term promotions in Hong Kong and Macau, successfully increasing sales despite a decline in local retail[35] - The group launched new seasonal fashion collections under the MOISELLE brand, featuring themes inspired by European fashion, such as "Love Letters to Paris" and "Trip to Romanticism"[36] - The group is restructuring its retail network in mainland China, closing underperforming stores while opening new ones in promising locations[37] - The group is collaborating with American Express to expand its customer base and enhance sales through targeted promotions[35] - The group aims to enhance the shopping experience by integrating environmental awareness and artistic elements into store designs[37] - The group is adapting to changing consumer preferences by focusing on modern, minimalist designs appealing to younger consumers and active middle-aged individuals[30] Revenue Breakdown - Revenue from the Hong Kong business increased by 9% year-on-year to approximately HKD 32.2 million, while revenue from mainland China decreased by 26% to approximately HKD 9.7 million[31] - Overall revenue decreased by 5% year-on-year to approximately HKD 48.2 million, with Hong Kong contributing about 67% of total revenue[32] - Revenue from the mainland China business decreased by 26% year-on-year to HKD 9,672,000[43] - Revenue in Macau dropped by 17% year-on-year to approximately HKD 3,834,000[46] - Revenue in Taiwan fell by 28% year-on-year to approximately HKD 2,497,000, accounting for about 5% of the group's total revenue[47] Store Operations - The group operates 32 retail stores as of September 30, 2025, up from 31 stores on March 31, 2025[39] - The group closed three underperforming stores in mainland China but opened four new stores, maintaining a strategy of a small and efficient store network[43] - The group plans to continue cautiously developing its store network in mainland China, focusing on locations with business potential and reasonable rent, aiming for a sales-based rent model[49] Corporate Governance - The group did not declare an interim dividend for the year ending March 31, 2026, consistent with the previous year[25] - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules for the six-month period ending September 30, 2025[60] - The roles of the Chairman and CEO are currently held by the same individual, Mr. Chen, which the board believes ensures effective leadership and operational efficiency[61] - An audit committee has been established to oversee the financial reporting process and risk management, consisting of three independent non-executive directors[62] Employee and Asset Management - The group employed 222 staff members as of September 30, 2025, down from 271 on March 31, 2025[52] - The group has pledged assets valued at approximately HKD 129,000,000 as collateral for bank loans as of September 30, 2025, up from HKD 116,000,000 on March 31, 2025[51] - The capital-to-debt ratio was approximately 35.3% as of September 30, 2025, an increase from 31.1% on March 31, 2025[50] Future Plans - The group is focusing on cost reduction measures and further developing its e-commerce business as a cost-effective sales and marketing approach[48] - The group plans to enhance its e-commerce operations by appointing a management team dedicated to this area[48] - The group aims to introduce new eco-friendly leisure sportswear to tap into the growing market potential of the sports trend[49] - The group entered into a financing agreement with an existing bank for a maximum amount of HKD 65,000,000, which was later revised to HKD 50,000,000 as of November 2025[59]
慕诗国际(00130) - 2026 - 中期财报