Financial Performance - The company reported unaudited revenue of approximately HKD 171.9 million for the six months ended October 31, 2021, a decrease of 22.9% compared to HKD 223.0 million in the same period last year[8]. - The loss attributable to equity shareholders was approximately HKD 3.3 million, compared to a profit of HKD 17.5 million in the previous year[8]. - Revenue from North America decreased by 28.1% to approximately HKD 105.6 million, primarily due to a decline in sales orders and average selling prices[9]. - Revenue from Europe decreased by 10.6% to approximately HKD 55.6 million, attributed to reduced sales orders from Eastern European developing countries[9]. - Gross profit fell by 65.1% to approximately HKD 16.6 million, with a gross margin of 9.7%, down from 21.3% in the previous year[12]. - The company reported a net loss of HKD 3,314,000 for the period, contrasting with a profit of HKD 17,499,000 in the same period last year[26]. - The basic loss per share for the period was HKD (0.3), compared to earnings of HKD 1.7 per share in the previous year[58]. - Total expenses for the six months ended October 31, 2021, were HKD 174,326,000, a decrease of 13.6% from HKD 201,743,000 in 2020[50]. Cost Management - Selling and distribution expenses decreased by 69.9% to approximately HKD 4.1 million, aligning with the revenue decline[13]. - Administrative expenses increased by 23.7% to approximately HKD 16.2 million, mainly due to rising employee costs and lack of government subsidies[14]. - Financial costs decreased by 66.7% to approximately HKD 0.3 million, due to lower average bank borrowing levels[15]. - The company did not receive any government subsidies for the six months ended October 31, 2021, compared to HKD 1,710,000 received in the previous year[51][52]. - The company’s management compensation totaled HKD 4,312,000 for the six months ended October 31, 2021, down from HKD 4,735,000 in the previous year, reflecting a decrease of approximately 8.9%[75]. Inventory and Assets - Inventory levels as of October 31, 2021, were HKD 73,899,000, down from HKD 95,541,000 as of April 30, 2021[28]. - The company’s total assets as of October 31, 2021, were HKD 206,708,000, a slight decrease from HKD 213,494,000 as of April 30, 2021[29]. - The total liabilities decreased to HKD 55,774,000 from HKD 59,763,000 over the same period[29]. - The company’s intangible assets related to licenses decreased to HKD 2,442,000 from HKD 14,090,000 in the previous year, reflecting a significant reduction of approximately 83.7%[64]. - The company’s trade receivables and notes receivable increased to HKD 59,092,000 as of October 31, 2021, compared to HKD 26,061,000 as of April 30, 2021, representing a growth of approximately 126.6%[68]. Cash Flow and Financing - Operating cash flow for the six months ended October 31, 2021, was a net outflow of HKD 2,356,000, compared to a net inflow of HKD 33,500,000 for the same period in 2020[34]. - Cash used in investing activities amounted to HKD 5,424,000, a decrease from HKD 10,198,000 in the prior year[34]. - Financing activities generated a net cash inflow of HKD 4,666,000, a significant improvement from a net outflow of HKD 21,062,000 in the previous year[34]. - Total cash and cash equivalents decreased by HKD 3,114,000, compared to an increase of HKD 2,240,000 in the same period last year[34]. - The company reported a total cash and cash equivalents balance of HKD 13,034,000 at the end of the period, down from HKD 16,124,000 at the beginning[34]. Future Outlook - The company anticipates a challenging 2022 due to high inventory levels and ongoing shipping crises, with no expected decrease in freight costs in the short term[24]. - The management views the upcoming year as a time to focus on cost reduction and exploring new market opportunities[24]. Compliance and Governance - The company has complied with the corporate governance code as per the listing rules for the six months ending October 31, 2021[89]. - The company has adopted the standard code for securities transactions by directors and confirmed compliance for the six months ending October 31, 2021[90]. - The company did not declare or pay any dividends for the six months ended October 31, 2021[60]. - The company did not grant any share options during the six months ending October 31, 2021[87].
童园国际(03830) - 2022 - 中期财报