Financial Performance - The group's total gross profit decreased by approximately HKD 222.2 million or about 40.5% to approximately HKD 327.2 million in the first half of the 2023 fiscal year, primarily due to a reduction in gross profit from the Tianwang watch business[13]. - The company's revenue decreased by approximately 39.6% from HKD 770.7 million in the first half of the 2022 fiscal year to HKD 465.7 million in the first half of the 2023 fiscal year[39]. - Revenue from the Tian Wang watch business, which accounted for about 82.2% of total revenue in the first half of the 2023 fiscal year, fell by approximately 41.3% to HKD 382.8 million[50]. - The group recorded a net loss attributable to shareholders of approximately HKD 44.9 million in the first half of the 2023 fiscal year, compared to a profit of HKD 40.7 million in the same period of the previous year[76]. - The group reported a loss before tax of HKD 48,727 million for the period, compared to a profit of HKD 52,146 million in the same period of the previous year, indicating a significant decline in performance[100]. - The group reported a total comprehensive loss of HKD 149,385 million for the period, compared to a total comprehensive income of HKD 66,475 million in the same period of the previous year[100]. Cost Management - Administrative expenses decreased by approximately HKD 7.6 million or about 13.3% to approximately HKD 49.2 million in the first half of the 2023 fiscal year, mainly due to reduced employee costs and lower audit, legal, and professional fees[22]. - The group’s sales and distribution costs decreased by approximately HKD 168.7 million or 34.2% to HKD 323.9 million in the first half of the 2023 fiscal year, down from HKD 492.6 million in the same period of the previous year[75]. - The employee cost for the first half of the 2023 fiscal year was approximately HKD 163.6 million, down from HKD 210.6 million in the first half of the 2022 fiscal year, representing a reduction of about 22.3%[68]. Retail and Sales Network - The number of sales points for the Tianwang watch business decreased by 192 to 1,894 as of December 31, 2022, compared to June 30, 2022[23]. - The group closed several underperforming sales points to optimize its sales network in response to declining demand in the Chinese market[79]. - The group plans to continue optimizing its retail network for Tianwang watches and closely monitor the performance of existing sales points[140]. Inventory and Assets - The company's inventory balance as of December 31, 2022, was approximately HKD 280.3 million, a decrease of about 20.9% from HKD 354.4 million as of June 30, 2022[61]. - The company's total equity as of December 31, 2022, was approximately HKD 2,334.9 million, down by about HKD 276.7 million from HKD 2,611.6 million as of June 30, 2022[64]. - The total assets as of December 31, 2022, were HKD 2,611.6 million, a decrease from HKD 2,937.4 million as of December 31, 2021, reflecting a decline of approximately 11.1%[71]. Cash Flow and Financing - The company's cash and cash equivalents were approximately HKD 637.6 million as of December 31, 2022, compared to HKD 840.5 million as of June 30, 2022[63]. - The net cash generated from operating activities for the first half of the 2023 fiscal year was approximately HKD 39.9 million, a decrease of about HKD 116.0 million compared to HKD 155.9 million in the first half of the 2022 fiscal year[106]. - The group’s cash outflow from investment activities for the first half of the 2023 fiscal year was approximately HKD 126.6 million, primarily from the purchase of properties, plants, and equipment[83]. Market Conditions and Strategy - The impact of the recurring COVID-19 pandemic has adversely affected the group's sales performance, with temporary suspensions of operations at various sales points in multiple cities in China[98]. - The management anticipates a gradual recovery of the Chinese economy in the medium term following the easing of COVID-19 restrictions[140]. - The group aims to diversify its fashion watch offerings to adapt to the rapidly changing retail landscape[140]. Investments and Acquisitions - There were no significant acquisitions or disposals of subsidiaries or associates in the first half of the 2023 fiscal year[1]. - The group has no significant investments other than those disclosed as of December 31, 2022[26]. - The group plans to continue monitoring market conditions and will adopt a cautious investment strategy to optimize the use of surplus funds, focusing on low-risk, high-credit-rated products[94]. Other Financial Metrics - The group recognized right-of-use assets and lease liabilities of approximately HKD 1,000,000 each for new lease agreements during the period[170]. - The group experienced a foreign exchange loss of HKD 45,835,000 during the reporting period[178]. - The group reported interest income of HKD 26,144,000, contributing to the overall financial performance despite the losses[176].
时计宝(02033) - 2023 - 中期财报