Financial Performance - The Group recorded an unaudited profit attributable to shareholders of HK$13 million, a decrease of 89% compared to HK$121 million for the same period in 2021[6]. - Total revenue for the Period was HK$3,626 million, representing a decrease of 6% from HK$3,872 million in the corresponding period[6]. - Gross profit margin for the Period was 45.8%, slightly lower than 46.9% in the corresponding period[6]. - Operating profit significantly decreased to HK$8 million from HK$164 million year-on-year[32]. - Total comprehensive income for the period was a loss of HK$186 million, compared to a profit of HK$36 million in the same period last year[35]. - Revenue for the six months ended 30 June 2022 was HK$3,626 million, a decrease of 6.35% compared to HK$3,872 million for the same period in 2021[32]. - Gross profit for the period was HK$1,659 million, down from HK$1,815 million, reflecting a gross margin decline[32]. - The company reported a net profit attributable to shareholders of HK$13 million, a significant decrease of 89.92% from HK$121 million in the previous year[199]. - The basic and diluted earnings per share for the period were HK$0.004, compared to HK$0.051 in the prior year, indicating a decline of 92.35%[197]. Inventory and Trade Receivables - Inventory balance as of 30 June 2022 was HK$1,594 million, an increase of 28% year-on-year[8]. - Inventory turnover days reached 125 days as of 30 June 2022, up from 114 days as of 31 December 2021[8]. - Net trade debtors decreased by 26% to HK$443 million as of 30 June 2022, primarily due to a decline in E-commerce revenue[9]. - Finished goods inventory increased to HK$1,573 million as of 30 June 2022, up from HK$1,392 million at the end of 2021[91]. - Net trade receivables as of June 30, 2022, were HK$443 million, a decrease of 26% due to reduced e-commerce revenue[160]. Cash and Liabilities - The Group maintained a cash position of HK$2,342 million as of 30 June 2022, down from HK$2,649 million at the end of 2021[12]. - Cash, bank balances, and deposits were HK$2,342 million, down from HK$2,649 million as of 31 December 2021[38]. - Total liabilities decreased to HK$4,355 million from HK$4,930 million at the end of 2021[38]. - Trade creditors decreased by 21% to HK$260 million as of 30 June 2022, reflecting seasonal factors and improved financial conditions[9]. - The Group has net current assets of HK$2,952 million and no external borrowings as of 30 June 2022[52]. Strategic Initiatives - The Company plans to launch more than 28 fast-to-market product capsules in 2022, including two new lines anticipated for spring 2023[20]. - The Company is focusing on a market re-entry strategy in Asia, targeting Japan, Singapore, Thailand, New Zealand, and Australia[20]. - The establishment of a Denim Innovation Design Centre in Amsterdam aims to enhance design capabilities in denim[22]. - The Company is committed to sustainability, utilizing recyclable or regenerative materials in its products and collaborating closely with suppliers[23]. - The Company is launching digital commerce platforms in new markets, including a return to Hong Kong, to regain market position and achieve sustainable growth[27]. Challenges and Management Strategies - The decrease in profit was primarily due to a revenue decline resulting in a gross profit drop of HK$156 million, and a foreign exchange loss of HK$99 million compared to a foreign exchange gain of HK$87 million in the corresponding period[153]. - The company faced multiple challenges including supply chain disruptions, rising raw material prices, and weakened consumer confidence due to geopolitical tensions and high inflation[150]. - The management team implemented strategies to control costs and reduce expenses, including closing unprofitable stores and renegotiating rents to ensure retail channels remain a primary profit segment[150]. - The company is actively monitoring supply chain issues and their operational impacts while taking measures to mitigate adverse effects[150]. Future Outlook - The company is optimistic about its future outlook, with plans to enhance brand image and customer loyalty, particularly targeting younger customers[150]. - The company aims to strengthen its e-commerce sales structure to make it more attractive and user-friendly[150]. - The management's strategies are beginning to show positive performance and profit growth, forming a solid platform for future market expansion[150]. - The company is cautiously optimistic about the near future, focusing on sustainable growth and revitalizing the ESPRIT brand through a pleasant shopping experience[181].
思捷环球(00330) - 2022 - 中期财报