Financial Performance - Revenue for the six months ended June 30, 2023, was HK$819,910,000, a decrease of 12.6% compared to HK$938,615,000 in the same period of 2022[55] - Gross profit increased to HK$162,045,000, representing a gross margin of 19.7%, compared to HK$152,685,000 in 2022[55] - Operating loss for the period was HK$88,384,000, worsening from a loss of HK$45,908,000 in the previous year[55] - Loss for the period amounted to HK$92,471,000, compared to a loss of HK$68,435,000 in the same period of 2022, reflecting a 35.1% increase in losses[55] - Selling, marketing, and distribution costs increased to HK$115,529,000, up from HK$96,412,000 in 2022, indicating a rise of 19.9%[55] - The company reported other losses of HK$13,457,000, contrasting with gains of HK$34,920,000 in the same period last year[55] - For the six months ended June 30, 2023, the total comprehensive loss was HK$123,330,000, compared to HK$181,919,000 in the same period of 2022, representing a decrease of 32.3%[66] - The loss attributable to equity holders of the Company was HK$121,703,000, compared to HK$180,132,000 in 2022, indicating a reduction of 32.4%[66] - The basic and diluted loss per share attributable to equity holders of the Company was HK$4.37, compared to HK$3.26 in the previous year, indicating an increase of 34.1%[66] - Other comprehensive loss for the period, net of tax, was HK$30,859,000, compared to HK$113,484,000 in 2022, showing a significant improvement[66] Cash Flow and Assets - Net cash generated from operating activities was HK$54,231,000, an increase from HK$24,515,000 in the previous year, reflecting a growth of 120.9%[77] - Cash and cash equivalents at June 30, 2023, amounted to HK$396,554,000, compared to HK$487,231,000 in 2022, representing a decline of 18.6%[77] - The total assets as of June 30, 2023, were HK$3,478,222,000, down from HK$3,656,363,000 at the end of 2022, a decrease of 4.9%[70] - The total equity attributable to equity holders of the Company decreased to HK$2,231,369,000 from HK$2,354,699,000, a decline of 5.2%[70] - The net cash used in investing activities was HK$143,538,000, an improvement from HK$244,361,000 in the previous year, indicating a reduction of 41.2%[77] - The total liabilities as of June 30, 2023, were HK$1,246,853,000, down from HK$1,301,664,000 at the end of 2022, a decrease of 4.2%[70] - As of June 30, 2023, total current assets increased to HK$1,785,025, up from HK$1,663,781 as of December 31, 2022, representing a growth of approximately 7.3%[1] - The company's inventories decreased to HK$785,721 from HK$864,995, a decline of about 9.1%[1] - The company’s cash and cash equivalents decreased to HK$396,554 from HK$505,493, a decline of approximately 21.5%[1] Financial Instruments and Valuation - Financial assets at fair value through profit or loss (FVPL) dropped significantly to HK$7,293 from HK$42,100, a decrease of approximately 82.7%[1] - Fair value losses on financial assets through other comprehensive income amounted to HK$99,054, indicating significant market fluctuations[2] - The fair value of all listed equity securities is based on their current bid prices in an active market, totaling HK$17,959,000[156] - The carrying amounts of the Group's financial instruments carried at cost or amortized cost approximate their fair values as of the reporting date[157] - The company utilized observable market data for fair value estimation, particularly for financial instruments not traded in active markets[157] Segment Performance - The revenue from the OEM segment was HK$495,278,000, while the Retail segment generated HK$291,292,000, and Property investment contributed HK$33,340,000[187] - Total segment loss before income tax for the six months ended June 30, 2023, was HK$86,550,000, compared to a loss of HK$46,453,000 in the same period of 2022, indicating a significant increase in losses[197] - The company reported inter-segment revenue of HK$67,926,000 for the six months ended June 30, 2023, with total inter-segment revenue from OEM, Retail, and Property investment segments being HK$65,024,000, HK$23,000, and HK$2,879,000 respectively[187] Management and Future Outlook - The company plans to focus on market expansion and new product development to improve future performance and mitigate losses[186] - Management indicated that the significant judgments and estimates used in preparing the interim financial information remain consistent with those applied in the previous annual financial statements[1] - The company is expected to adopt new accounting standards effective January 1, 2024, which may influence future financial reporting[1] - The Group operates in three reportable segments: OEM garment manufacturing and sales, branded fashion apparel retailing, and property investment in the PRC[146] - The Group's financial risk management includes exposure to market risk, credit risk, and liquidity risk, with no changes in risk management policies since year-end[132]
华鼎控股(03398) - 2023 - 中期财报