Revenue Growth - The company's revenue increased by 25.6% from approximately HKD 64.4 million to about HKD 80.9 million for the six months ending October 31, 2024[6]. - Revenue from the traditional segment rose by 34.9% from approximately HKD 41.0 million to about HKD 55.3 million, driven by increased sales orders from major UK clients[4][7]. - The new retail segment's revenue grew by 7.1% from approximately HKD 18.4 million to about HKD 19.7 million, benefiting from providing relevant products to customers[8]. - The institutional catering segment recorded a 15.7% increase in revenue from approximately HKD 5.1 million to HKD 5.9 million, supported by high customer satisfaction[9]. - Revenue for the six months ended October 31, 2025, was HKD 80,906,000, representing a 25.8% increase from HKD 64,393,000 in the same period of 2024[40]. - Revenue from women's clothing was HKD 66,724,000, up 30.5% from HKD 51,060,000 in the previous year[56]. Profitability and Loss - Gross profit increased by 55.9% from approximately HKD 6.8 million to about HKD 10.6 million, with a gross margin of approximately 13.1%[11]. - The company recorded a net loss of approximately HKD 5.8 million for the period, an improvement from a loss of about HKD 9.0 million in the previous six months[16]. - The basic loss per share for the period was approximately HKD 0.18, compared to HKD 0.28 for the six months ending October 31, 2024, indicating a reduction aligned with the losses attributable to the owners during the period[18]. - The group reported a loss before tax of HKD 5,801,000 for the six months ended October 31, 2025, compared to a loss of HKD 9,121,000 for the same period in 2024, indicating an improvement[61]. - The group experienced a net loss of HKD 5,027,000 from its segments, with traditional clothing supply and new retail clothing supply both reporting losses[52]. Expenses and Costs - Selling and service costs rose by 22.2% to approximately HKD 70.4 million, consistent with revenue growth[10]. - Administrative expenses increased by 9.9% from approximately HKD 8.1 million to about HKD 8.9 million, primarily due to higher employee costs[14]. - The total comprehensive expenses attributable to the owners of the company for the period were approximately HKD 5.3 million, compared to HKD 8.9 million for the six months ending October 31, 2024, reflecting a decrease consistent with the losses during the period[17]. Cash Flow and Assets - Cash used in operating activities was HKD 3,507,000, a significant improvement compared to cash used of HKD 10,865,000 in the prior year[44]. - Total assets decreased to HKD 80,212,000 from HKD 96,460,000, reflecting a 16.8% decline[41]. - Current liabilities decreased to HKD 20,488,000 from HKD 32,872,000, a reduction of 37.6%[41]. - The company reported a net cash decrease of HKD 7,403,000, compared to HKD 11,628,000 in the previous year[44]. - The net asset value as of October 31, 2025, was HKD 77,790,000, down from HKD 83,110,000, a decrease of 6.5%[42]. Corporate Governance and Compliance - The company has adhered to all corporate governance code provisions except for the separation of the roles of Chairman and CEO, which is deemed appropriate under current circumstances[30]. - The board has adopted a code of conduct regarding securities trading, ensuring compliance with the standards set forth in the listing rules[26]. - The audit and risk management committee, composed entirely of independent non-executive directors, reviewed the unaudited condensed consolidated financial statements[34]. - The company has established an audit and risk management committee in accordance with the listing rules and corporate governance code[34]. Strategic Focus and Risks - The company continues to explore suitable investment opportunities to enhance shareholder value despite market uncertainties[12]. - The company aims to expand its market share in the institutional catering business by offering diverse high-value menu options and customer-centric services[9]. - The company aims to enhance its custom integrated apparel design and procurement services to better fulfill commitments to clients while gradually expanding its institutional catering scale for sustainable profit growth[19]. - The company faces several risks, including reliance on major clients without long-term contracts, which exposes revenue to uncertainties and potential fluctuations[20]. - The company operates in a highly competitive market, which may lead to a decrease in market share and profit margins due to intense competition[20]. Dividends and Shareholder Returns - The board does not recommend the payment of dividends for the six months ending October 31, 2025[33]. - The company did not declare or pay any dividends for the six months ending October 31, 2025, consistent with the previous period[66].
桦欣控股(01657) - 2026 - 中期财报