创辉珠宝(08537) - 2023 - 中期财报

Corporate Information This section outlines the company's fundamental organizational structure, including key personnel and professional advisors - This section provides basic organizational structure information, including executive directors, independent non-executive directors, committee members, company secretary, auditor, legal advisors, and principal bankers[12][13][15] - The company's Chairman and Chief Executive Officer is Mr. Fu Chun Keung[12] - The company's auditor is Grant Thornton Hong Kong Limited[15] Financial Highlights This section provides a concise overview of the Group's key financial performance for the six months ended September 30, 2022 Financial Highlights for the Six Months Ended September 30, 2022 | Indicator | For the Six Months Ended September 30, 2022 | For the Six Months Ended September 30, 2021 | | :--- | :--- | :--- | | Revenue (HKD Million) | Approx. 71.9 | Approx. 55.1 | | Profit/(Loss) for the Period (HKD Million) | Profit Approx. 2.7 | Loss Approx. 0.9 | | Proposed Dividend | Not Distributed | Nil | - The Group achieved a turnaround from loss to profit, primarily driven by a significant 30.3% year-on-year increase in revenue[20][22] Management Discussion and Analysis This section offers an in-depth analysis of the Group's operational performance, financial health, liquidity, and strategic outlook Outlook The Group maintains an optimistic outlook, planning to expand its jewelry design, retail network, and social media marketing for sustained growth - The Hong Kong government's consumption vouchers, launched in April and August 2022, significantly contributed to local consumption and revenue growth during the period[26] - Future strategic priorities include expanding the jewelry design series, enlarging retail outlets, and extending marketing activities to social media[27] Business and Financial Review Total revenue grew by 30.3% to HKD 71.9 million, driven by pure gold and recycled gold products, with other income boosted by government subsidies Revenue Breakdown by Product Category (HKD Million) | Product Category | 2022 H1 | 2021 H1 | Year-on-year Growth | | :--- | :--- | :--- | :--- | | Gem-set Jewelry Products | 29.0 | 25.8 | +12.4% | | Pure Gold Products | 34.4 | 25.6 | +34.2% | | Recycled Gold Product Trading | 8.5 | 3.8 | +126.6% | | Total | 71.9 | 55.1 | +30.3% | Revenue Breakdown by Sales Channel (HKD Million) | Sales Channel | 2022 H1 | 2021 H1 | Year-on-year Growth/Decrease | | :--- | :--- | :--- | :--- | | Retail | 58.4 | 45.6 | +28.0% | | Wholesale | 4.9 | 5.7 | -14.3% | | Recycled Gold Product Trading | 8.5 | 3.8 | +126.6% | - Other income increased by HKD 1.1 million year-on-year, primarily due to approximately HKD 1.1 million in government subsidies from the "Employment Support Scheme" received during the period[44] Liquidity, Financial Resources, and Capital Structure The Group maintains a sound financial position with a 35.0% gearing ratio and 1.8x current ratio, reflecting prudent treasury management Key Financial Position Indicators | Indicator | September 30, 2022 | March 31, 2022 | | :--- | :--- | :--- | | Total Assets (HKD Million) | 135.1 | 129.2 | | Total Liabilities (HKD Million) | 60.2 | 56.2 | | Total Interest-bearing Borrowings (HKD Million) | 26.2 | 28.3 | | Current Ratio (Times) | Approx. 1.8 | Approx. 2.0 | | Gearing Ratio (%) | Approx. 35.0% | Approx. 38.8% | - As of the end of the reporting period, the Group had no pledged assets, significant capital commitments, or contingent liabilities[69][73][74] - The capital structure has remained unchanged since its listing on March 27, 2019, with an issued share capital of HKD 7.5 million corresponding to 750 million ordinary shares[63] Significant Investments, Material Acquisitions and Disposals The Group acquired a 20% equity interest in Dia Myth Jewellery Limited for HKD 8.9 million to control future rental costs - On September 6, 2022, the company agreed to acquire a 20% equity interest in Dia Myth Jewellery (Dia Myth) for HKD 8.9 million in cash[83] - This transaction constitutes a discloseable connected transaction with the company's Chairman, Mr. Fu Chun Keung, as the counterparty; upon completion, the company will hold a 20% stake in Dia Myth Jewellery[83][84] - The Board believes this transaction helps control the Group's rental costs for properties leased from Dia Myth Jewellery and can partially offset rental expenses by sharing its profits[84] Other Information This section details corporate governance, directors' interests, share schemes, and the audit committee's functions Corporate Governance Practice The company generally adheres to corporate governance standards, with a noted deviation where the Chairman and CEO roles are combined - The company deviated from Code Provision C.2.1 of the Corporate Governance Code, where the roles of Chairman and Chief Executive Officer are combined and held by the same individual, Mr. Fu Chun Keung[89][90] - The Board believes this arrangement is beneficial for the Group's management, given Mr. Fu's extensive experience in the jewelry industry and his critical role in the Group's development[90] Directors' and Chief Executive's Interests This section details directors' and major shareholders' interests, with Mr. Fu Chun Keung and related parties holding 75% of issued shares Directors' Long Positions in the Company's Shares | Name of Director | Capacity | Number of Shares Held | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Fu Chun Keung | Interest in Controlled Corporation | 562,500,000 | 75% | | Ms. Fu Wan Ling | Interest in Controlled Corporation | 562,500,000 | 75% | | Ms. Cheung Lai Yuk | Interest in Controlled Corporation, Spouse's Interest | 562,500,000 | 75% | Share Schemes The company has share award and share option schemes, with 10.3 million unawarded shares held by the trustee, but no awards or options were granted - As of September 30, 2022, the trustee of the Share Award Scheme held 10,300,000 purchased but unawarded shares of the company[111] - As of the end of the reporting period, neither the Share Award Scheme nor the Share Option Scheme had granted any awards or options[111][113] Audit Committee The Audit Committee, chaired by Mr. Chan Tsz Ming, reviewed the unaudited interim results, confirming compliance with accounting standards - The Audit Committee has reviewed the Group's unaudited consolidated interim results for the six months ended September 30, 2022[120] Unaudited Interim Financial Information This section presents the Group's condensed interim financial statements for the six months ended September 30, 2022, with detailed notes Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income The Group achieved a profit of HKD 2.686 million, a turnaround from loss, driven by 30.3% revenue growth and increased gross profit Key Items from Statement of Profit or Loss (HKD Thousand) | Item | 2022 H1 | 2021 H1 | | :--- | :--- | :--- | | Revenue | 71,862 | 55,134 | | Gross Profit | 21,401 | 16,907 | | Profit/(Loss) Before Tax | 3,232 | (1,401) | | Profit/(Loss) for the Period | 2,686 | (936) | | Basic Earnings/(Loss) Per Share (HK Cents) | 0.36 | (0.12) | Condensed Consolidated Statement of Financial Position Total assets increased to HKD 135.1 million, with net assets reaching HKD 74.862 million, while net current assets decreased Key Items from Statement of Financial Position (HKD Thousand) | Item | September 30, 2022 | March 31, 2022 | | :--- | :--- | :--- | | Non-current Assets | 42,338 | 36,377 | | Current Assets | 92,807 | 92,791 | | Total Assets | 135,145 | 129,168 | | Current Liabilities | 52,616 | 46,592 | | Non-current Liabilities | 7,667 | 9,626 | | Total Liabilities | 60,283 | 56,218 | | Net Assets | 74,862 | 72,950 | Condensed Consolidated Statement of Changes in Equity Total equity increased to HKD 74.862 million, primarily due to the HKD 2.686 million profit, partially offset by other factors - Total equity increased by HKD 1.912 million from HKD 72.95 million as of March 31, 2022, to HKD 74.862 million as of September 30, 2022[138] Condensed Consolidated Statement of Cash Flows Cash and cash equivalents decreased by HKD 1.751 million, with positive operating and investing cash flows offset by significant financing outflows Cash Flow Statement Summary (HKD Thousand) | Item | 2022 H1 | 2021 H1 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 506 | 907 | | Net Cash from Investing Activities | 5,416 | 181 | | Net Cash Used in Financing Activities | (7,673) | (3,739) | | Net Decrease in Cash and Cash Equivalents | (1,751) | (2,651) | | Cash and Cash Equivalents at End of Period | 18,785 | 29,365 | Notes to the Condensed Consolidated Financial Statements The notes provide supplementary financial details, including revenue segmentation, HKD 1.13 million in government grants, and the HKD 8.9 million acquisition of Dia Myth Jewellery - Revenue by business segment shows jewelry retail contributing HKD 58.41 million as the primary source, with recycled gold product trading growing fastest at 126.6% year-on-year[157][158] - Other income includes HKD 1.13 million in government grants from the Hong Kong "Anti-epidemic Fund" under the "Employment Support Scheme"[160][162] - During the period, the Group acquired a 20% equity interest in Dia Myth Jewellery Limited from the ultimate controlling party, Mr. Fu, for a cash consideration of HKD 8.9 million, making it an associate of the Group[173]