Financial Performance - Revenue for the six months ended December 31, 2021, was HK$713.652 million, an increase of 11.7% from HK$638.724 million in 2020[14] - Gross profit for the same period was HK$128.057 million, with a gross profit margin of 17.9%, down from 19.0% in the previous year[14] - Profit for the period decreased to HK$4.409 million, a decline of 85% compared to HK$29.306 million in 2020[14] - Adjusted profit for the period was HK$5.446 million, a significant improvement from a loss of HK$4.849 million in the prior year[14] - The Group recorded a net profit of HK$4.4 million for the Period, a significant decrease from HK$29.3 million in the corresponding period last year[46] - Other net income decreased to HK$10 million from HK$45.7 million, primarily due to the absence of one-off sales proceeds from property disposal and government subsidies received in the previous year[38] - Total comprehensive income for the period was $332, down from $43,533,000, a decrease of 99.2%[92] - Profit for the period attributable to the owners of the Company was $450,000, a significant decrease from $24,699,000 in the same period last year[165] Operational Challenges - The company faced operational challenges due to COVID-19 disruptions, including increased absenteeism and production line closures[24] - Significant additional costs were incurred for regular testing and compliance with isolation requirements to maintain operations[24] - The spike in global demand has driven up commodity prices, impacting input costs for the company[24] - The Group does not expect to be immune from the impact of the Omicron variant on operations, anticipating that the chaotic situation will continue throughout the year[77] Market and Product Trends - Demand for products returned to pre-pandemic levels, with strong orders from U.S. and European customers for innovative intimate apparel[22] - The company continues to adapt to market trends, focusing on comfortable and well-fitted intimates suitable for leisure and remote work[22] - The Group's strategic diversification in manufacturing across China and Southeast Asia helped mitigate major disruptions during the crisis, resulting in a resilient operational performance[30] Financial Position - Total equity increased to HK$511.892 million, while total debt rose to HK$106.601 million, resulting in a gearing ratio of 20.8%, up from 17.2%[14] - The Group's bank balances and cash stood at HK$102.9 million, while total bank borrowings increased to HK$106.6 million, resulting in a gearing ratio of 20.8%[47] - The cash conversion cycle improved to 22 days from 24 days, indicating better working capital management[48] - The cash conversion cycle days decreased from 24 days to 22 days, primarily due to longer payable days, which were partially offset by increased inventory days from 67 days to 83 days[54] - Capital expenditure during the period amounted to HK$13.8 million, mainly for capacity expansion in Southeast Asia[55] Cash Flow and Investments - For the six months ended December 31, 2021, net cash generated from operating activities was HKD 20,028,000, a significant improvement compared to a net cash used of HKD 46,247,000 in the same period of 2020[113] - The company reported a net cash used in investing activities of HKD 15,629,000, a decrease from net cash generated of HKD 8,253,000 in the prior year[113] - The financing activities generated a net cash inflow of HKD 7,587,000, compared to a net cash outflow of HKD 8,074,000 in the same period last year[113] - The actual use of net proceeds as of December 31, 2021, was HK$18.2 million out of the total HK$40.4 million raised from the rights issue[71] Shareholder and Equity Information - The total equity attributable to owners of the company was HKD 511,852,000 as of December 31, 2021[108] - Basic and diluted earnings per share decreased to 0.15 HK cents from 11.49 HK cents, a drop of 98.7%[87] - No interim dividend was declared or paid for the current period, compared to $Nil in the previous year[167] - The capital contribution from a non-controlling shareholder was HKD 1,008,163,000, reflecting strong support from stakeholders[113] Compliance and Reporting - The interim financial report was prepared in accordance with HKAS 34, ensuring compliance with relevant accounting standards[118] - The interim financial report is unaudited but has been reviewed by the Company's Audit Committee[125] - The accounting policies adopted for the preparation of the financial information are consistent with those used in the Group's financial statements[141] - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[132]
黛丽斯国际(00333) - 2022 - 中期财报