Financial Performance - Total revenue increased by 9.6% to HKD 118,140,000 for the six months ended September 30, 2022, compared to HKD 107,821,000 in the same period of 2021[15]. - Gross profit rose to HKD 72,762,000, up from HKD 69,332,000 in the previous year[15]. - Net profit for the period was HKD 509,000, a decrease from HKD 562,000 in 2021, resulting in basic earnings per share of HKD 0.06 compared to HKD 0.07 in the prior year[18]. - The group reported revenue of HKD 118,140,000 for the six months ending September 30, 2022, an increase from HKD 107,821,000 in the same period of 2021, representing a growth of approximately 9.3%[42]. - Gross profit for the same period was HKD 72,762,000, compared to HKD 69,332,000 in 2021, indicating a gross margin improvement[42]. - The group reported a pre-tax profit of HKD 509,000 for the period, down from HKD 562,000 in the previous year, indicating a decrease of 9.4%[67]. - The cost of goods sold and services provided was HKD 44,807,000, compared to HKD 37,658,000 in the prior period, representing an increase of 19.3%[63]. Retail Segment Performance - Retail segment revenue was HKD 105,613,000, accounting for 89.4% of total revenue, with a slight increase from HKD 103,826,000 in 2021[15][17]. - The retail income from "Ulferts" and "Ulferts Prestige" was HKD 60,300,000, representing 57.1% of total retail income, down from 65.0% in 2021[17]. - "at • home" retail income remained stable at HKD 20,000,000, accounting for 18.9% of total retail income[17]. - The total retail income from "Slumberland" and "Ulferts" increased to HKD 25,400,000, representing 24.0% of total retail income, up from 15.5% in 2021[17]. - Retail furniture revenue reached HKD 105,613,000, up from HKD 103,826,000, reflecting a growth of 1.7% year-over-year[59]. - Wholesale furniture revenue increased significantly to HKD 6,560,000 from HKD 3,417,000, marking an increase of 92.5%[59]. Operational Highlights - The company operates 28 sales points in Hong Kong, focusing on high-quality European imported furniture[19]. - The company is the exclusive distributor for "Slumberland" and "Vono" in Hong Kong and Macau, targeting both high-end and mass markets[21][24]. - The product range includes over 50 furniture brands, with a focus on modern styles and high-quality materials to meet diverse customer needs[25]. - As of September 30, 2022, the group operates 28 retail points in Hong Kong, with flagship store "欧化傢俬尊尚店" covering approximately 21,700 square feet[29]. - The company has opened a "斯林百蘭" store-in-store at 德福廣場 and a dedicated counter in a department store in 深水埗, expanding its retail presence[29]. Financial Position - The group has maintained a zero debt ratio as of September 30, 2022, with cash and cash equivalents amounting to HKD 76,200,000[38]. - The current ratio improved to 1.8 from 1.6 as of March 31, 2022, reflecting better liquidity management[38]. - As of September 30, 2022, total assets amounted to HKD 143,456 thousand, a decrease from HKD 153,748 thousand as of March 31, 2022, representing a decline of approximately 6.4%[44]. - The total equity as of September 30, 2022, was HKD 111,243 thousand, down from HKD 114,734 thousand as of March 31, 2022, reflecting a decline of approximately 3.2%[44]. - Cash and cash equivalents at the end of the reporting period were HKD 76,173 thousand, a decrease from HKD 91,921 thousand at the end of the same period in 2021, representing a decline of about 17.1%[47]. - Current liabilities totaled HKD 78,479 thousand as of September 30, 2022, down from HKD 93,988 thousand as of March 31, 2022, indicating a reduction of approximately 16.5%[44]. - The company’s total liabilities decreased to HKD 113,365 thousand as of September 30, 2022, from HKD 138,752 thousand as of March 31, 2022, reflecting a reduction of about 18.4%[44]. - The company’s inventory as of September 30, 2022, was HKD 48,297 thousand, down from HKD 57,833 thousand as of March 31, 2022, indicating a decrease of approximately 16.5%[44]. Employee and Management Costs - The total employee cost for the period was HKD 24,100,000, up from HKD 23,200,000 in 2021, reflecting an increase in workforce investment[39]. - The total remuneration for key management personnel was HKD 3,216,000, an increase from HKD 3,088,000 in the previous period, reflecting a growth of 4.1%[78]. Dividends and Shareholder Information - The group has not declared any interim dividend for the period, consistent with the previous year[40]. - The company paid a final dividend of HKD 4,000 thousand during the period, compared to HKD 5,040 thousand in the previous year[45]. - The group did not declare any interim dividends for the period, consistent with the previous year[65]. - As of September 30, 2022, no directors or senior executives of the company held any interests or short positions in the company's shares, related shares, or debentures[81]. - Ms. Fan Min Cheung holds 10,500,000 shares (0.29%) in Emperor International Holdings Limited, a related corporation[82]. - Mr. Wong Chi Fai holds HKD 2,000,000 in debentures of Emperor International, a related corporation[82]. - Yang Shou Cheng Investment Holdings Limited owns 600,000,000 shares (75%) in the company, as recorded in the equity disclosure register[84]. - First Trust Management AG, as a trustee of a private discretionary trust, also holds 600,000,000 shares (75%) in the company[84]. Compliance and Governance - The company has adopted the European Securities Code for its directors' securities trading, ensuring compliance with the relevant regulations[88]. - No share options have been granted under the share option scheme since its adoption on January 8, 2018[89]. - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[94]. - The interim financial statements have not been reviewed or audited by the company's auditors but have been reviewed by the audit committee[93]. - The company has complied with all corporate governance code provisions during the reporting period[87]. Market Challenges - The group continues to face challenges from geopolitical tensions, inflation, and market volatility, impacting consumer confidence and furniture demand[36].
欧化(01711) - 2023 - 中期财报