Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 74,356,000, an increase of 7.3% compared to HKD 69,081,000 for the same period in 2022[7]. - The net loss for the period was HKD 19,011,000, a significant improvement from a net loss of HKD 39,479,000 in the previous year, representing a reduction of 51.8%[7]. - Basic and diluted loss per share improved to HKD 0.01 from HKD 0.03 year-on-year[7]. - The company reported a gross profit margin of approximately 59% for the first half of 2023, compared to 55% in the same period last year[7]. - Other income and gains increased to HKD 9,277,000 from HKD 8,545,000, showing a growth of 8.6%[7]. - The company reported a loss before tax of HKD 18,997,000, significantly improved from a loss of HKD 39,443,000 in the previous year[36]. - The loss attributable to equity holders for the first half of 2023 was approximately HKD 17,500,000, a decrease of about 54.1% compared to a loss of HKD 38,100,000 in the same period of 2022[104]. Assets and Liabilities - Total assets decreased to HKD 534,755,000 as of June 30, 2023, down from HKD 682,791,000 at the end of 2022[10]. - Current liabilities decreased to HKD 372,909,000 from HKD 489,268,000, indicating improved liquidity management[10]. - The company's equity attributable to shareholders decreased to HKD 111,932,000 from HKD 128,988,000, reflecting ongoing financial challenges[11]. - Total liabilities also decreased to HKD 378,810,000 from HKD 507,775,000, a reduction of 25.4%[36]. - The company reported a decrease in total reserves to HKD (358,045,000) as of June 30, 2023, from HKD (281,128,000) as of June 30, 2022, indicating a decline of 27.4%[13]. - As of June 30, 2023, the group had a net current liability of approximately HKD 257,200,000, an increase from HKD 240,100,000 as of December 31, 2022[112]. Cash Flow and Financing - The net cash used in operating activities was HKD 6,584,000 for the six months ended June 30, 2023, an improvement from HKD 29,539,000 used in the same period in 2022[14]. - Cash and cash equivalents decreased to HKD 24,307,000 at the end of June 2023, down from HKD 106,637,000 at the end of June 2022, indicating a decline of 77.2%[14]. - The company generated a net cash inflow from investing activities of HKD 61,160,000 for the six months ended June 30, 2023, compared to HKD 7,227,000 in the same period in 2022[14]. - The company’s cash flow from financing activities showed a net outflow of HKD 128,457,000 for the six months ended June 30, 2023, compared to a net inflow of HKD 74,857,000 in the same period in 2022[14]. - Bank borrowings amounted to HKD 85,280,000 for the six months ended June 30, 2023, compared to HKD 64,129,000 in the same period in 2022, reflecting a 32.9% increase[14]. Operational Strategies - The company plans to focus on market expansion and new product development in the upcoming quarters to drive future growth[6]. - Management is implementing measures to improve profitability, control operating costs, and reduce capital expenditures[20]. - The group plans to continue monitoring and adjusting its operational strategies in response to the evolving retail environment in Hong Kong, which is expected to benefit from a rebound in local consumption[108]. - The group has implemented measures to improve profitability, including revising marketing strategies, controlling capital and operational expenditures, and negotiating rent reductions[112]. Employee and Governance - The group employed 180 staff as of June 30, 2023, an increase from 161 employees at the end of 2022, with various compensation packages to incentivize performance[115]. - The company is currently seeking suitable candidates to fill vacancies in its board of independent non-executive directors to comply with listing rules[128]. - The audit committee consists of two independent non-executive directors, with Mr. Yu Lianghui serving as the chairman[130]. - The company has adhered to the corporate governance code, except for the attendance of non-executive directors at the shareholders' meeting[129]. Legal and Compliance - The company is involved in ongoing legal proceedings regarding a claim for HKD 12,442,000 related to unpaid director's fees and management fees, with a counterclaim of approximately HKD 71,600,000[82]. - The company has sought legal advice regarding a statutory demand for HKD 8,244,000, which it believes is invalid and disputed[80]. - The company’s legal advisors are preparing to defend against claims in the High Court, with hearings expected to commence in December 2023[82]. - The company’s board has established an independent committee to review the implications of a claim regarding the validity of a contract with Win Dynamic[85]. Shareholder Information - The company's issued and fully paid share capital remained unchanged at HKD 469,977,000 as of June 30, 2023, consistent with the figure reported on December 31, 2022[69]. - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[55]. - As of June 30, 2023, the company has a total of 985,471,362 shares held by Dr. Lin Xiaohui, representing 75.00% of the issued shares[119].
先施(00244) - 2023 - 中期财报