Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 217.87 million, a decrease of 17.6% compared to HKD 264.47 million for the same period in 2021[9] - Gross profit for the period was HKD 104.40 million, with a gross margin of 47.9%, compared to HKD 106.37 million and a gross margin of 40.2% in the previous year[9] - The company reported a loss before tax of HKD 0.64 million, significantly improved from a loss of HKD 21.69 million in the prior year[9] - Net loss for the period was HKD 1.12 million, compared to a net loss of HKD 22.32 million in the same period last year[9] - Total comprehensive loss for the period was HKD 7.99 million, compared to HKD 14.56 million in the previous year[9] - The adjusted loss before tax for the six months ended September 30, 2022, was HKD 639,000, compared to a loss of HKD 21,687,000 for the same period in 2021, indicating an improvement in performance[46][58] - The company incurred a loss of HKD 1,118,000, significantly narrowing from a loss of HKD 22,320,000 in the previous year, representing a reduction of approximately 95.0%[95] Assets and Liabilities - Non-current assets increased to HKD 574.58 million as of September 30, 2022, from HKD 569.57 million as of March 31, 2022[10] - Current assets decreased to HKD 165.39 million from HKD 189.88 million, primarily due to a reduction in inventory and trade receivables[10] - Total liabilities decreased to HKD 548.45 million as of September 30, 2022, from HKD 521.04 million as of March 31, 2022[10] - The company's net asset value was HKD 191.51 million, down from HKD 199.41 million as of March 31, 2022[12] - The group reported a net loss of HKD 1,118,000 for the six months ended September 30, 2022, with current liabilities exceeding current assets by HKD 317,165,000[20] Cash Flow and Financing - The net cash generated from operating activities for the six months ended September 30, 2022, was HKD 45,680,000, a decrease of 18.7% compared to HKD 56,166,000 for the same period in 2021[15] - The net cash used in financing activities for the six months ended September 30, 2022, was HKD 45,066,000, a decrease of 31.5% from HKD 65,754,000 in the previous year[17] - The cash and cash equivalents decreased to HKD 9,745,000 as of September 30, 2022, from HKD 37,839,000 at the end of the previous year[19] - The group is actively seeking external financing and considering potential risk factors to mitigate cash outflows[24] - The board believes that the group will have sufficient working capital for at least the next twelve months based on current cash flow forecasts[22] - The group has bank financing facilities amounting to HKD 424,326,000, of which HKD 365,676,000 had been utilized by the end of the reporting period[106] Revenue Breakdown - Revenue from cosmetics sales was HKD 141,623,000, while revenue from women's fashion was HKD 76,243,000 for the six months ended September 30, 2022[27] - The cosmetics segment generated revenue of HKD 141,623,000, down 23.3% from HKD 184,562,000, accounting for 65.0% of total revenue[95] - The fashion segment recorded revenue of HKD 76,243,000, a decrease of 4.6% from HKD 79,906,000[95] - The fashion business reported a revenue of HKD 76,243,000 for the period ending September 30, 2022, a decrease of 4.6% compared to HKD 79,906,000 in the previous year[99] Operational Highlights - The company plans to focus on expanding its product offerings and enhancing its market presence in the upcoming quarters[9] - The company optimized its retail network, which contributed to the narrowing of overall operational losses[97] - The group plans to continue optimizing its retail network and controlling inventory levels to achieve a break-even point as soon as possible[105] - As of September 30, 2022, the company operated 57 Colourmix and MORIMOR cosmetic stores, down from 64 stores a year earlier[97] - Same-store sales in Hong Kong and Macau for the fashion business increased by over 17.0% in October 2022, reflecting a recovery in local consumer demand[103] Government Support - The company received cash subsidies totaling HKD 15,110,000 during the reporting period, which were recognized in the profit and loss statement[80] - The company received government subsidies related to the COVID-19 pandemic totaling approximately HKD 15,110,000 during the reporting period[95] Shareholder Information - The company did not declare any interim dividend for the year ending March 31, 2023, consistent with the previous year[81] - Major shareholder Silver Crown holds 1,393,347,737 shares, accounting for 55.34% of the issued share capital[126] - The company’s issued share capital as of September 30, 2022, was 1,578,566,964 shares, representing 62.69% of the total[120] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code during the reporting period[129] - The company’s independent auditor has not reviewed the unaudited results for the six months ending September 30, 2022, but the audit committee has reviewed them[131] Employee Information - The group employs approximately 950 staff members, maintaining the same headcount as of March 31, 2022[111] - The company expresses gratitude to all employees for their loyalty and contributions during the reporting period[132]
威高国际(01173) - 2023 - 中期财报