Financial Performance - For the six months ended September 30, 2022, the company's net profit increased by approximately 216.7% to about HKD 20.9 million compared to HKD 6.6 million in the same period last year[14]. - The company's revenue for the same period was approximately HKD 234.7 million, a decrease of about 1.7% from HKD 238.8 million in the previous year, primarily due to a reduction in the number of retail stores[18]. - The gross profit for the six months ended September 30, 2022, was HKD 50.6 million, an increase of 8.1% from HKD 46.8 million in the previous year[16]. - The company declared an interim dividend of HKD 0.025 per share, with a payout ratio of approximately 49.3% of the profit attributable to shareholders[14]. - The retail segment's profit increased by approximately 35.3% to about HKD 4.6 million for the six months ended September 30, 2022, compared to HKD 3.4 million in the previous year[21]. - The profit before tax for the period was HKD 22,909,000, with a net profit of HKD 20,883,000[1]. - Net profit attributable to owners for the six months ended September 30, 2022, was approximately HKD 20.3 million, an increase of about 227.4% from HKD 6.2 million in the prior year[39]. - Operating profit rose significantly to HKD 24,448,000, compared to HKD 9,729,000 in the previous year, marking a 151.5% increase[53]. - Basic and diluted earnings per share increased to HKD 5.1 from HKD 1.5, reflecting strong profitability growth[53]. Revenue Breakdown - Retail business revenue for the six months ended September 30, 2022, was approximately HKD 118.1 million, down from HKD 121.0 million in the previous year, representing a decrease of about 2.9 million[20]. - Distribution business revenue for the six months ended September 30, 2022, was approximately HKD 116.6 million, relatively stable compared to HKD 117.8 million for the same period in 2021[27]. - Total revenue for the group for the six months ended September 30, 2022, was approximately HKD 234.7 million, a decrease of about 1.7% from HKD 238.8 million in the same period of 2021[30]. - Retail business revenue decreased by approximately HKD 2.9 million to about HKD 118.1 million, accounting for approximately 50.3% of total revenue[30]. - Distribution business revenue for the six months ended September 30, 2022, was HKD 117,760,000, while retail business revenue was HKD 121,015,000, totaling HKD 238,775,000[107]. Cash and Assets - As of September 30, 2022, the group had cash and cash equivalents of approximately HKD 62.2 million, up from HKD 55.2 million as of March 31, 2022[42]. - Total assets as of September 30, 2022, amounted to HKD 262,076,000, up from HKD 251,807,000 as of March 31, 2022[57]. - Cash and cash equivalents at the end of the period were HKD 62,239,000, an increase from HKD 54,809,000 at the beginning of the period[69]. - The trade receivables from third parties as of September 30, 2022, were HKD 54,441,000, up from HKD 52,914,000 as of March 31, 2022, indicating an increase of 2.9%[129]. - The inventory balance as of September 30, 2022, was HKD 20,359,000, compared to HKD 19,781,000 as of March 31, 2022, reflecting a rise of 2.9%[124]. Liabilities and Expenses - Total liabilities decreased to HKD 111,054,000 from HKD 120,868,000, indicating improved financial stability[60]. - The total liabilities decreased from HKD 111,149,000 as of March 31, 2022, to HKD 101,315,000 as of September 30, 2022[106]. - Employee benefits expenses increased to HKD 50,313,000 from HKD 48,815,000 year-on-year[112]. - The group incurred lease liabilities of HKD 44,449,000 as of September 30, 2022, down from HKD 51,033,000, a reduction of 12.83%[140]. Government Subsidies and Financial Support - The company received approximately HKD 9.7 million in wage subsidies from the Hong Kong government, which significantly impacted the net profit figures[16]. - The company reported a government subsidy of HKD 9,740,000 received during the period, compared to none in the previous year[110]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, emphasizing effective board management and high transparency[179]. - The board consists of four executive directors and three independent non-executive directors, ensuring a high level of independence[181]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests[179]. Legal Matters - The group has ongoing litigation with a supplier regarding a mask supply agreement valued at HKD 31,500,000, with HKD 9,250,000 of masks delivered but failing to meet quality standards[159]. - The company has filed a claim against a supplier for damages amounting to HKD 9,083,000 due to non-compliance with quality standards in delivered goods[160]. - The supplier has counterclaimed against the company for HKD 9,750,000 plus damages, alleging breach of contract related to unpaid amounts for delivered masks[162]. - The management believes the supplier's claims are unfounded and expects to win the lawsuit based on test reports from accredited laboratories[163]. - If the company loses the lawsuit, it could incur additional losses of approximately HKD 17,936,000 related to the supplier's claims and legal costs[163]. Employee and Management Information - The company employed 684 staff as of September 30, 2022, up from 609 as of March 31, 2022, with employee benefits expenses totaling approximately HKD 50.3 million[51]. - The total remuneration for key management personnel was HKD 1,852,000 for the six months ended September 30, 2022, an increase from HKD 1,554,000, reflecting a growth of 19.21%[157]. Accounting and Financial Reporting - The financial data is presented in Hong Kong dollars (HKD) and is prepared in accordance with Hong Kong Accounting Standards[74]. - The company has adopted several new or revised accounting standards, which are not expected to have a significant impact on the group's interim performance and financial position[77]. - The management's significant judgments and estimates in applying accounting policies remain consistent with those applied in the annual financial statements[83].
宾仕国际(01705) - 2023 - 中期财报