Financial Performance - Revenue for the six months ended September 30, 2022, increased by 37.2% to HKD 337,736,000 from HKD 246,156,000 in the same period last year[7]. - Gross profit rose by 53.6% to HKD 52,789,000, with a gross margin of 15.6%, up from 14.0%[6]. - Net profit surged to HKD 11,328,000, compared to HKD 329,000 in the previous year, reflecting a strong recovery[8]. - EBITDA for the period was HKD 20,854,000, significantly higher than HKD 9,648,000 in the same period last year[8]. - Revenue for the six months ended September 30, 2022, was HKD 337,736,000, representing a 37.1% increase from HKD 246,156,000 in the same period of 2021[40]. - Gross profit increased to HKD 52,789,000, up 53.8% from HKD 34,366,000 year-on-year[40]. - Net profit for the period was HKD 11,328,000, a significant increase from HKD 329,000 in the previous year[40]. - The company reported a total comprehensive income of HKD 9,084,000 for the period, compared to a loss of HKD 24,000 in the previous year[40]. - The basic and diluted earnings per share for the six months ended September 30, 2022, were HKD 5.66, compared to HKD 0.06 for the same period in 2021, indicating a substantial increase[72]. Expenses and Costs - Sales and distribution expenses increased by 61.9% to HKD 18,652,000, primarily due to air freight costs incurred to meet delivery schedules[8]. - Interest expenses rose by 89.7% to HKD 4,399,000 due to increased rates and sales volume[8]. - General and administrative expenses decreased by 4.3% to approximately HKD 23,495,000, down from HKD 24,550,000, with employee costs also declining due to a reduction in administrative staff[15]. - Financing costs increased by 89.7% to approximately HKD 4,399,000 from HKD 2,319,000, attributed to rising interest rates during the period[16]. - Employee costs, including directors' remuneration, decreased to HKD 46,118,000 in the first half of 2022 from HKD 49,664,000 in the same period of 2021, reflecting a reduction of approximately 5.1%[66]. Assets and Liabilities - The company reported a current ratio of 0.74 and a quick ratio of 0.57 as of September 30, 2022[6]. - The company’s total assets decreased to HKD 306,753,000 from HKD 324,238,000 as of March 31, 2022[6]. - Cash and cash equivalents at the end of the period were HKD 31,494,000, down from HKD 33,391,000 at the beginning of the period[44]. - Inventory increased by approximately 12.6% to HKD 45,071,000 from HKD 40,024,000, driven by anticipated sales growth in the coming months[18]. - Trade receivables decreased to HKD 108,429,000 as of September 30, 2022, from HKD 124,311,000 as of March 31, 2022, a decline of about 12.8%[86]. - Trade payables rose to HKD 49,048,000 as of September 30, 2022, up from HKD 41,606,000 as of March 31, 2022, representing an increase of approximately 17.8%[90]. - Bank borrowings decreased to HKD 122,261,000 as of September 30, 2022, from HKD 161,863,000 as of March 31, 2022, a reduction of about 24.3%[91]. - The total financial liabilities were HKD 266,414,000 as of September 30, 2022, compared to HKD 292,962,000 as of March 31, 2022[100]. Revenue Breakdown - The apparel product categories contributing to revenue included outerwear (HKD 149,539,000), bottoms (HKD 125,808,000), tops (HKD 26,399,000), and others (HKD 35,990,000)[10]. - Revenue from garment sales for the six months ended September 30, 2022, was HKD 337,736,000, an increase of 37.1% compared to HKD 246,156,000 for the same period in 2021[58]. - The primary market for sales was the United States, generating HKD 322,352,000, which represents 95.4% of total revenue[58]. - Revenue from the US accounted for 95.4% of total revenue, increasing from 90.8% in the previous year, while revenue from Italy decreased significantly from 6.0% to 1.2%[11]. Corporate Governance and Shareholder Information - The board confirms compliance with the corporate governance code during the review period[30]. - The company did not recommend the distribution of an interim dividend to shareholders for the review period[37]. - The major shareholder, Moonlight Global Holdings Limited, holds 40,100,000 shares, representing 20.05% of the company[34]. - No shares of the company have been purchased, sold, or redeemed by the company or its subsidiaries since the listing date on October 19, 2018[28]. - The company has not granted any options under the share option scheme since its adoption[35]. Future Outlook - The company expects a rebound in profits for the second half of the fiscal year ending March 31, 2023, although the increase may be lower than the first half due to seasonal shipping patterns[20]. - The company anticipates continued growth in sales performance over the next four years, driven by a strong recovery in the U.S. retail market[84]. - The company plans to continue expanding its market presence in the United States, Italy, and the United Kingdom, focusing on apparel manufacturing and trading[45].
STERLING GP(01825) - 2023 - 中期财报