Financial Performance - The Group's revenue for the six months ended 30 September 2023 was approximately HK$39,216,000, representing a decrease of approximately 8.1% from HK$42,653,000 in the corresponding period last year[16]. - The Group's gross profit during the Reporting Period was approximately HK$21,054,000, a decrease of approximately 10.2% from HK$23,448,000 compared to the same period last year, with a gross profit margin of approximately 53.7%[17]. - The Group recorded a loss of approximately HK$597,000 during the Reporting Period, compared to a profit of approximately HK$2,246,000 in the same period last year[20]. - For the six months ended September 30, 2023, the company's revenue was HK$39,216,000, a decrease of 8.5% compared to HK$42,653,000 for the same period in 2022[131]. - Gross profit for the same period was HK$21,054,000, down 10.2% from HK$23,448,000 in the previous year[131]. - The company reported a loss attributable to owners of HK$597,000 for the six months ended September 30, 2023, compared to a profit of HK$2,246,000 for the same period in 2022[131]. - Basic and diluted loss per share was HK$0.13 for the six months ended September 30, 2023, compared to earnings of HK$0.50 for the same period in 2022[131]. - The company reported a consolidated loss before income tax of HK$(700,000) for the six months ended September 30, 2022, contrasting with a profit of HK$2,465,000 in 2023, highlighting a significant improvement in financial performance[166]. - For the six months ended 30 September 2023, the company reported a loss attributable to owners of HK$597,000, compared to a profit of HK$2,246,000 for the same period in 2022, representing a significant decline[189]. Expenses and Cost Management - Selling and distribution expenses increased by approximately 3.3% to approximately HK$14,530,000 from HK$14,061,000 in the previous year, primarily due to increased depreciation on right-of-use assets[18]. - Administrative and other expenses decreased by approximately 18.6% to approximately HK$6,320,000 from HK$7,762,000 in the previous year, mainly due to a reduction in staff costs[19]. - Total remuneration for the Group during the Reporting Period was approximately HK$9,276,000, compared to approximately HK$10,053,000 for the six months ended September 30, 2022[83]. - Employee costs for the six months ended September 30, 2023, amounted to HK$9,276,000, down 7.7% from HK$10,053,000 in the same period of 2022[183]. - Costs of inventories recognized as expenses for the six months ended September 30, 2023, were HK$15,294,000, a decrease from HK$16,208,000 in the previous year, indicating a reduction of 5.6%[180]. Market Outlook and Strategy - The Directors foresee continued challenges in the Hong Kong retail market due to weak retail sentiment, and the Group will adopt a pragmatic approach to identify suitable market opportunities[9]. - The Group is focusing on consolidating its retail network, optimizing product mix, and intensifying cost control to stabilize growth through cautious strategic planning[10]. - The Group aims to maintain steady growth and maximize returns for investors while being responsive to market changes and consumer needs[11]. - The Group is actively developing smart home and related products, looking for new business opportunities in this area[10]. Tenancy Agreements and Asset Management - The group renewed the tenancy agreement for Tsuen Wan Shop 310, effective from June 22, 2023, for a term of three years, with an aggregate rental value of not less than HK$1,155,000[30]. - The renewal of the tenancy agreement for Tsuen Wan Shop 310 is considered an acquisition of asset under GEM Listing Rules, as the applicable percentage ratios exceed 5% but are below 25%[34]. - The group also renewed the tenancy agreement for Kowloon Bay Shop, effective from June 23, 2023, with similar terms regarding property leasing and stability of operations[40]. - The renewal agreements are aimed at ensuring stable operations without incurring additional costs related to relocation and renovation[31]. - The terms of the tenancy agreements were determined after arm's length negotiations and are considered fair and reasonable by the board[32]. - The landlord for Tsuen Wan Shop 310 is CDW Building Limited, while the landlord for Kowloon Bay Shop is MegaBox Development Company Limited, both of which are independent third parties[30][40]. - The Group emphasizes the importance of securing retail locations to support its business growth and operational stability in the competitive retail market in Hong Kong[31]. - The Renewal of Tenancy Agreement for Kowloon Bay Shop has a total value of not less than HK$1,992,000 for a two-year term from June 23, 2023, to June 22, 2025[43]. - The Renewal of Tenancy Agreement for Tsuen Wan Shop 312 has a total value of not less than HK$2,555,000 for a three-year term from September 1, 2023, to August 31, 2026[54]. - Both tenancy agreements were negotiated based on open market rents of comparable properties and are considered fair and reasonable by the Board[46][56]. - The lease transactions for both shops exceed 5% but are below 25%, classifying them as discloseable transactions under GEM Listing Rules[48][50]. - The company recognizes the value of the right-of-use assets related to these leases in its consolidated financial statements[47][57]. - The renewal of these tenancy agreements ensures stable operations without incurring additional costs for relocation or renovation[44][55]. - The agreements are part of the company's strategy to maintain uninterrupted business operations and growth in the retail sector[44][55]. - The monthly lease payments will be made using internal resources[43][54]. Financial Position and Liquidity - As of September 30, 2023, the Group had cash and bank balances of approximately HK$9,847,000, a slight decrease from approximately HK$9,938,000 as of March 31, 2023[63]. - The Group's total equity attributable to the owners amounted to approximately HK$19,603,000 as of September 30, 2023, down from approximately HK$20,200,000 as of March 31, 2023[70]. - The Group had no bank borrowings as of September 30, 2023, maintaining a gearing ratio of nil[63]. - Total assets less current liabilities as of September 30, 2023, were HK$25,301,000, down from HK$27,728,000 as of March 31, 2023[136]. - The company's net assets as of September 30, 2023, were HK$19,603,000, a decrease from HK$20,200,000 as of March 31, 2023[136]. - Current liabilities increased to HK$24,220,000 as of September 30, 2023, compared to HK$21,873,000 as of March 31, 2023[133]. - The company maintained a sufficient public float as of the report date[124]. - The Group's treasury policy is conservative, ensuring that sales proceeds are deposited in reputable banks for security and liquidity[69]. - The Group has no plans for material investments or capital assets as of the date of the report[62]. - There were no material contingent liabilities as of September 30, 2023[71]. - The Group did not have any significant capital commitments as of September 30, 2023[82]. Shareholding and Corporate Governance - As of September 30, 2023, Mr. Hui Kwok Keung Raymond holds 210,000,000 shares, representing approximately 46.56% of the total issued shares of the Company[103]. - Mr. Hue Kwok Chiu has a beneficial ownership of 45,000,000 shares, which is about 9.98% of the total issued shares[103]. - The total number of shares available for issue under the Share Option Scheme is 40,000,000 shares, accounting for approximately 8.87% of the total number of issued shares[116]. - No share options have been granted by the Company since the adoption of the Share Option Scheme[116]. - As of September 30, 2023, there are no interests or short positions recorded for Directors or Chief Executives in the shares or debentures of the Company[105]. - Time Prestige Ventures Limited, wholly owned by Mr. Hui Kwok Keung Raymond, holds 210,000,000 shares, equivalent to 46.56% of the total issued shares[109]. - Ms. Ng Hiu Ying, spouse of Mr. Hue Kwok Chiu, is deemed to be interested in 45,000,000 shares, representing approximately 9.98% of the total issued shares[111]. - The Company did not engage a compliance adviser after June 30, 2017[117]. - The Audit Committee comprises three independent non-executive Directors and oversees the Company's financial reporting system and internal controls[118]. - There are no purchases, sales, or redemptions of the Company's listed securities during the reporting period[98]. Cash Flow and Investment Activities - Net cash generated from operating activities for the six months ended 30 September 2023 was HK$9,021,000, a decrease of 23.8% compared to HK$11,827,000 in the same period of 2022[141]. - Net cash used in investing activities was HK$40,000, compared to HK$27,000 in the previous year, indicating a slight increase in investment outflows[141]. - Net cash used in financing activities increased to HK$9,072,000 from HK$8,388,000, reflecting a rise of 8.2% in financing outflows[141]. - Cash and cash equivalents at the end of the period decreased to HK$9,847,000 from HK$17,267,000, representing a decline of 42.5%[141].
壹照明(08222) - 2024 - 中期财报