Financial Performance - The company reported a loss of HKD 18 million for the six months ended June 30, 2023, compared to a profit of HKD 24 million in the same period last year[6]. - Total income for the period was HKD 8 million, an increase from HKD 6 million year-on-year, driven by sponsorship fees and miscellaneous income[2]. - The group reported a net loss attributable to shareholders of HKD 18 million for the six months ended June 30, 2023, compared to a profit of HKD 24 million in the same period last year, representing a significant decline[30]. - Total sales for Unicorn, including self-operated goods and consignment counters, decreased by 17% year-on-year, with a net loss of HKD 54 million for the period, compared to a loss of HKD 14 million in the previous year[27]. - The earnings per share for the group was a loss of HKD 0.6 cents, compared to a profit of HKD 0.8 cents in the previous year[30]. - Revenue for the six months ended June 30, 2023, was HKD 796 million, a decrease of 14.2% from HKD 928 million in the same period of 2022[106]. - The company reported a loss before tax of HKD 21 million compared to a profit of HKD 27 million in the previous year, indicating a significant decline in profitability[106]. - The company experienced a decrease in sales cost of inventory to HKD 405 million from HKD 509 million year-over-year[98]. - The company recorded a tax expense of HKD 8 million for the current period, compared to HKD 5 million for the same period in 2022[99]. Revenue and Sales - Total revenue for the six months ended June 30, 2023, was HKD 781 million, representing a 6% increase from HKD 740 million in the same period last year[60]. - Sales from self-operated products decreased by 10% to HKD 162 million, but total sales including consignment and franchise counters increased by 6% compared to the previous year[24]. - The total revenue from self-operated goods sales for Citistore was HKD 162 million, down from HKD 180 million in the same period last year[42]. - Sales revenue decreased to HKD 575 million in 2023 from HKD 716 million in 2022, representing a decline of 19.7%[122]. - The group received consignment sales income of HKD 567 million for the six months ended June 30, 2023, slightly up from HKD 563 million in 2022[122]. - The group’s total consignment and licensed counter sales income was HKD 792 million in 2023, an increase of 8.9% from HKD 727 million in 2022[122]. Dividends and Shareholder Returns - The company announced no interim dividend for the period due to the recorded loss, compared to a dividend of HKD 0.01 per share in the previous year[17]. - No interim dividend was declared for the six months ended June 30, 2023, compared to HKD 30 million declared in the same period of 2022[125]. Operational Efficiency and Cost Management - The group expects further improvements in operational efficiency and cost-effectiveness due to the recent establishment of a central distribution center and cold storage[43]. - The group incurred rental and related expenses totaling HKD 56 million for the six months ended June 30, 2023, up from HKD 44 million in the previous year[70]. - The group confirmed a financing cost related to lease liabilities of HKD 16 million for the reporting period, down from HKD 22 million in the previous year[49]. - Total employee costs for the six-month period amounted to HKD 139 million, unchanged from HKD 139 million in 2022[86]. Assets and Liabilities - As of June 30, 2023, the group reported a cash and bank balance of HKD 133 million, a decrease of HKD 127 million or 49% compared to HKD 260 million as of December 31, 2022[51]. - Total assets as of June 30, 2023, were HKD 1,914 million, down from HKD 2,037 million at the end of 2022[109]. - Current liabilities decreased to HKD 499 million from HKD 660 million, reflecting improved liquidity management[109]. - Non-current liabilities, including lease liabilities, decreased to HKD 461 million from HKD 517 million, indicating a reduction in long-term financial obligations[109]. - The total liabilities decreased from HKD 430 million as of December 31, 2022, to HKD 339 million as of June 30, 2023, a reduction of approximately 21.3%[176]. Market and Consumer Trends - The retail market in Hong Kong showed improvement, but supermarket sales value decreased by 7.8% year-on-year due to reduced consumer purchases[18]. - The group launched several promotional activities, including the "Korean Food Festival" and "Thai Food Festival," to adapt to changing local consumption patterns[33]. Future Outlook - The company expects an average sales revenue growth of 6.3% for the next five twelve-month periods[146]. - The projected total sales revenue for Unicorn is expected to grow by an average of 13.4% for the periods ending June 30, 2024, 2025, 2026, 2027, and 2028[162]. - The company anticipates a 0.1 percentage point average increase in gross margin for the cash-generating unit of Citistore over the next five years[158]. - The average gross profit margin is projected to increase by 0.7 percentage points over the next five reporting periods ending June 30, 2024, to June 30, 2028[166]. Corporate Governance and Compliance - The interim results for the six months ended June 30, 2023, were reviewed by the company's auditor, PwC, in accordance with the Hong Kong Institute of Certified Public Accountants' standards[198]. - The audit committee reviewed internal controls, risk management, and compliance systems in August 2023, confirming adherence to the applicable code provisions of the Corporate Governance Code[200].
恒基发展(00097) - 2023 - 中期财报