Financial Performance - Total revenue for the six months ended June 30, 2023, was HKD 82,542,000, representing a 39% increase from HKD 59,390,000 for the same period in 2022[20][23]. - The net profit after tax for the six months ended June 30, 2023, was HKD 1,271,000, compared to a net loss of HKD 9,730,000 for the same period in 2022[20][38]. - The company achieved a profit attributable to equity holders of approximately HKD 1.3 million in the first half of 2023, a significant turnaround from a loss of approximately HKD 9.7 million in the same period of 2022[132]. - The gross profit increased to approximately HKD 44.1 million in the first half of 2023, up from approximately HKD 39.1 million in the first half of 2022, while the gross margin decreased to approximately 53.4% from 65.8%[138]. - The group recorded a net income of approximately HKD 1.3 million for the first half of the 2023 fiscal year, compared to a net loss of approximately HKD 9.7 million in the same period of 2022[169]. Assets and Liabilities - As of June 30, 2023, total assets amounted to HKD 464,647,000, an increase from HKD 423,971,000 as of December 31, 2022, representing a growth of approximately 9.4%[2]. - Current liabilities increased to HKD 381,133,000 from HKD 318,728,000, reflecting a rise of about 19.6%[2]. - Non-current liabilities surged to HKD 114,185,000 from HKD 21,375,000, indicating a significant increase of approximately 434.5%[3]. - The company's net asset value rose to HKD 147,294,000 as of June 30, 2023, compared to HKD 107,842,000 at the end of 2022, marking an increase of around 36.6%[3]. - The company’s total liabilities increased, reflecting its strategy to leverage debt for growth, with a notable rise in both current and non-current liabilities[61]. Cash Flow and Investments - Operating cash flow showed a net outflow of HKD 21,271,000 for the six months ended June 30, 2023[10]. - The company reported a net cash inflow from investing activities of HKD 10,533,000 for the period[10]. - The company raised new bank borrowings amounting to HKD 18,518,000 during the financing activities[10]. - Cash and cash equivalents decreased to HKD 3,040,000 from HKD 6,274,000, a decline of approximately 51.6%[10]. Revenue Segments - The watch business segment generated revenue of HKD 61,339,000, up from HKD 59,390,000, while the smart manufacturing segment contributed HKD 21,203,000[20][22]. - The company reported a significant increase in revenue from the Chinese market, reaching HKD 61,939,000, up from HKD 57,026,000 in the previous year[23]. - Revenue from the Chinese market decreased by approximately 1.9% to about HKD 55.9 million in the first half of 2023, accounting for approximately 91.1% of total watch business revenue[146]. - Sales in the Hong Kong and Macau markets increased by approximately 193.3% to about HKD 4.4 million in the first half of 2023, representing approximately 7.2% of total watch business revenue[147]. - Sales in other markets, primarily in Southeast Asia and Europe, increased by approximately 22.2% to about HKD 1.1 million in the first half of 2023, accounting for approximately 1.7% of total watch business revenue[148]. Acquisitions and Growth - The company acquired a subsidiary for HKD 42,178,000 during the first half of 2023, contributing to its asset growth[49]. - The acquisition of the Jinxi Group was completed on April 19, 2023, for a total consideration of HKD 108,456,000, which includes the issuance of 12,820,512 shares as the first tranche of payment[81]. - The goodwill generated from the acquisition of Jinxi Group is HKD 42,178,000, attributed to expected synergies and growth potential in the smartwatch sector[94]. - The company completed the acquisition of a smart manufacturing business on April 19, 2023, which focuses on designing and producing stainless steel alloy watch cases and smart watch cases[151]. - The acquisition of Kinsey Group contributed approximately HKD 21,203,000 in revenue and HKD 5,257,000 in net profit from the acquisition date to June 30, 2023[99]. Shareholder Information - The average number of ordinary shares issued during the period was 352,041,051, compared to 347,437,000 shares in the previous year[38]. - The company issued a total of 360,257,512 shares as of June 30, 2023, reflecting an increase from 347,437,000 shares at the end of 2022[78]. - Basic and diluted earnings per share for the first half of 2023 were approximately HKD 0.36, compared to a loss of approximately HKD 2.80 per share in the same period of 2022[139]. Expenses and Costs - Employee costs increased to HKD 26,708,000, compared to HKD 22,868,000 in the previous year, reflecting a rise in salaries and benefits[36]. - The group’s distribution expenses increased by approximately HKD 0.4 million or about 1.7% to approximately HKD 23.5 million, representing about 28.4% of total revenue in the first half of 2023[166]. - The group’s administrative expenses rose by approximately HKD 2.2 million or about 11.5% to approximately HKD 21.4 million in the first half of 2023[167]. - The financing costs decreased to HKD 4,439,000 for the six months ended June 30, 2023, down from HKD 6,447,000 in the same period of 2022[31]. Future Plans and Strategies - The company aims to enhance brand awareness and market share through coordinated online and offline marketing activities targeting younger consumers[195]. - The company plans to optimize e-commerce operations by exploring potential collaboration platforms and experimenting with various live-streaming sales models[199]. - The company will focus on reducing inventory levels while ensuring sales supply, aiming to improve operational efficiency through close collaboration between procurement and sales departments[200]. - The company will continue to develop high-quality Swiss-made watches while analyzing consumer trends to design products that cater to target customers[194]. Dividends and Commitments - The company did not declare or propose any dividends for the periods ended June 30, 2023, and 2022[39]. - The company will not declare any interim dividends for the six months ending June 30, 2023[187]. - The company has no significant future investment or acquisition plans as of June 30, 2023[181]. - The company has no major capital commitments as of June 30, 2023[191].
依波路(01856) - 2023 - 中期财报