Financial Performance - Total revenue for the six months ended June 30, 2023, was approximately HKD 810,244,000, a decrease of 5.5% compared to HKD 857,771,000 for the same period in 2022[4]. - Operating expenses for the same period were approximately HKD 502,030,000, down 9.4% from HKD 554,367,000 in the previous year[5]. - Non-banking and financial business gross profit was approximately HKD 311,493,000, a decrease of 12.1% from HKD 354,308,000 year-on-year[6]. - Banking and financial business gross profit increased by 47.6% to approximately HKD 240,095,000, compared to HKD 162,660,000 in the previous year[6]. - EBITDA for the six months ended June 30, 2023, was approximately HKD 122,763,000, an increase of 262.7% from HKD 33,850,000 in the same period last year[6]. - Net profit after tax for the period was approximately HKD 26,237,000, compared to a net loss of HKD 54,650,000 in the previous year[6]. - Ebo Boutique Group's revenue for the first half of 2023 was HKD 113,029,000, a decrease of 25.9% from HKD 152,613,000 in the same period last year, with a net loss of HKD 13,034,000 compared to a loss of HKD 8,122,000 last year[12]. - The company reported a profit attributable to owners of HKD 19,921,000, compared to a loss of HKD 52,094,000 in the same period last year[8]. - The company reported a net loss attributable to shareholders of HKD 19,921,000 for the six months ended June 30, 2023, compared to a loss of HKD 52,094,000 in the same period of 2022[123]. Revenue Sources - The subsidiary Zhuhai Rossini Watch Industry Co., Ltd. recorded revenue of HKD 157,638,000, a decrease of 35.1% from HKD 243,035,000 year-on-year[8]. - Rossini's physical store sales for the first half of 2023 were approximately HKD 87,956,000, showing a slight decrease compared to the previous year[10]. - E-commerce sales for Zhuhai Rossini Watch Industry Co., Ltd. decreased by approximately 37.9% to about HKD 53,886,000 compared to HKD 86,718,000 in the same period last year[11]. - E-commerce sales for Ebo Boutique Group decreased by 28.9% to approximately HKD 28,010,000, primarily due to a decline in new retail (live streaming) sales, which fell by 51.4%[14]. - Non-banking and financial business revenue from product sales was HKD 558,885,000, a decrease from HKD 685,987,000, reflecting a decline of about 18.5%[107]. Asset Management - Total assets as of June 30, 2023, were HKD 15,817,407,000, a decrease of 2.1% from HKD 16,157,243,000 at the end of 2022[4]. - The bank's total assets decreased by HKD 740,238,000 to HKD 10,560,506,000 as of June 30, 2023, compared to HKD 11,300,744,000 at the end of 2022[22]. - The company's cash and deposits as of June 30, 2023, were HKD 705,647,000, a decrease from HKD 4,314,638,000 as of December 31, 2022[76]. - The group's total assets decreased from HKD 16,157,243,000 as of December 31, 2022, to HKD 15,817,407,000 as of June 30, 2023[29]. - The company's total liabilities amounted to HKD 11,624,759,000 as of June 30, 2023, a decrease from HKD 11,978,382,000 as of December 31, 2022, representing a reduction of approximately 3%[77]. Inventory and Receivables - Inventory for Rossini decreased by 12.7% compared to the same period last year, reflecting strict inventory management[10]. - The company's inventory as of June 30, 2023, was HKD 1,792,187,000, down from HKD 1,935,923,000 at the end of 2022, indicating a decrease of about 7.4%[76]. - The total amount of receivables from customers was HKD 2,854,221,000, an increase from HKD 2,678,772,000 as of December 31, 2022[124]. - Accounts receivable increased to HKD 2,854,221,000 from HKD 2,678,772,000 year-over-year, reflecting a growth of approximately 6.5%[76]. - The total amount of bank receivables increased to HKD 4,304,729,000 from HKD 1,929,640,000, showing a substantial growth of 123.1%[124]. Market and Strategic Outlook - The company plans to implement targeted marketing strategies focusing on high-end watch production to rebuild its global reputation and brand awareness in the second half of the year[19]. - The outlook for the second half of 2023 remains optimistic, with expectations of gradual recovery in the watch industry in Hong Kong and mainland China[12]. - Future outlook includes a focus on expanding banking services and enhancing product offerings in the watch and jewelry segment to drive revenue growth[109]. - The company aims to enhance its online influence by focusing on customer needs and pushing exclusive orders to major professional retailers[19]. Corporate Governance and Compliance - The company has complied with the corporate governance code during the six months ending June 30, 2023, with minor exceptions noted[68]. - The audit committee has reviewed the unaudited financial statements for the six months ending June 30, 2023[69]. - The company has adopted a standard code for securities trading by directors, ensuring compliance during the reporting period[69]. Investments and Acquisitions - The acquisition of Jinxi Group contributed approximately HKD 21,203,000 in revenue and HKD 5,257,000 in profit since the acquisition date[17]. - The company completed the acquisition of Kam Hei Industrial Limited for HKD 108,456,000 in April 2023, making it a subsidiary[87]. - The identifiable assets and liabilities of Kin Hee Group at the acquisition date had a fair value of HKD 66,278,000[163]. - The fair value of intangible assets acquired was HKD 68,383,000[163]. Financial Ratios and Metrics - The group's asset-liability ratio improved to 27.9% as of June 30, 2023, down from 30% as of December 31, 2022[26]. - The basic and diluted earnings per share for the period were HKD 0.46, recovering from a loss of HKD 1.20 per share in the same period of the previous year[75]. - The company's total equity as of June 30, 2023, was HKD 4,192,648,000, up from HKD 4,178,861,000 at the end of 2022, indicating a growth of approximately 0.3%[77]. Financial Reporting and Standards - The financial data is presented in HKD, with all values rounded to the nearest thousand (HKD thousands)[88]. - The company has not adopted any new or revised Hong Kong Financial Reporting Standards that are not yet effective[89]. - The group assesses the recoverable amount of goodwill annually, which involves estimating future cash flows and determining an appropriate discount rate[91].
冠城钟表珠宝(00256) - 2023 - 中期财报