Financial Performance - The company reported revenue of approximately HKD 314.1 million for the six months ended September 30, 2023, a decrease of about HKD 29.0 million or 8.5% compared to HKD 343.1 million in the same period last year[8]. - Gross profit increased to approximately HKD 67.0 million, up about HKD 3.8 million or 6.0% from HKD 63.2 million year-on-year, with a gross margin of approximately 21.3%, an increase of 2.9% from 18.4%[10]. - The company recorded a net profit of approximately HKD 29.4 million, compared to HKD 33.0 million in the same period last year[10]. - Profit before tax for the period was HKD 35,682,000, down 10.4% from HKD 39,550,000 in 2022[77]. - Net profit for the period was HKD 29,430,000, a decrease of 10.4% compared to HKD 32,953,000 in the same period last year[77]. - Total comprehensive income for the period was HKD 27,262,000, significantly higher than HKD 14,223,000 in 2022[77]. - The company's profit attributable to owners for the six months ended September 30, 2023, was HKD 29,430,000, down from HKD 32,953,000 in 2022, representing a decline of 7.6%[130]. Revenue Breakdown - Revenue from Southeast Asia, China, Europe, and North America accounted for approximately 49.7%, 31.7%, 14.1%, and 2.8% of total revenue, respectively[11]. - Revenue from Southeast Asia increased to HKD 156.1 million, up 1.1% from HKD 154.4 million in 2022[115]. - Revenue from China decreased significantly to HKD 99.4 million, down 22.1% from HKD 127.7 million in 2022[115]. - Major customer A contributed HKD 192.3 million to total revenue, significantly up from HKD 89.4 million in 2022[119]. Expenses and Costs - Sales costs decreased by approximately HKD 32.7 million or 11.7%, with sales costs as a percentage of total revenue at approximately 78.7%, down from 81.6%[13]. - Distribution and selling expenses decreased to approximately HKD 3.1 million from HKD 3.4 million in the same period last year[17]. - General and administrative expenses remained stable at approximately HKD 33.7 million and HKD 33.8 million for the same period last year and the reporting period, respectively[18]. - Financial expenses decreased to approximately HKD 3.4 million during the reporting period from HKD 4.6 million in the same period last year, primarily due to a reduction in the average balance of bank borrowings and lease liabilities[19]. - Research and development expenses for the period were HKD 9.4 million, down 27.5% from HKD 13.0 million in 2022[124]. Assets and Liabilities - Total current assets as of September 30, 2023, amounted to approximately HKD 582.8 million, representing 76.3% of total assets, compared to HKD 546.9 million or 75.0% as of March 31, 2023[23]. - The company's bank borrowings increased to HKD 38.15 million as of September 30, 2023, from HKD 22.686 million as of March 31, 2023, resulting in a debt-to-equity ratio of 7.1% compared to 4.4%[24]. - Total liabilities as of September 30, 2023, included bank borrowings of HKD 38.8 million and lease liabilities of HKD 94.2 million[112]. - The company's inventory as of September 30, 2023, was HKD 114,907,000, a decrease of 11.0% from HKD 128,812,000 as of March 31, 2023[137]. - Accounts receivable increased to HKD 139,802,000 as of September 30, 2023, compared to HKD 110,847,000 as of March 31, 2023, reflecting a growth of 26.1%[138]. Cash Flow - Cash and cash equivalents at the end of the period increased to HKD 116,220,000 from HKD 96,803,000 at the beginning of the period[89]. - Operating cash flow for the six months was HKD 27,257,000, a recovery from a cash outflow of HKD 36,769,000 in the previous year[88]. Corporate Governance and Compliance - The audit committee has reviewed the interim financial information and confirmed compliance with applicable standards and regulations[66]. - The independent auditor did not find any issues that would lead to a belief that the interim financial information was not prepared in accordance with the relevant accounting standards[75]. - The company has complied with the corporate governance code during the reporting period[62]. Share Options and Capital Management - The maximum number of shares that can be issued under the revised share option plan is capped at 10% of the total shares issued as of the approval date, which amounts to a maximum of 60,000,000 shares[45]. - The company may seek shareholder approval to update the plan authorization limit, ensuring that the total shares issued under the revised plan does not exceed 10% of the total shares issued at the time of the update[48]. - Any share options granted to eligible participants must have a vesting period of no less than 12 months from the acceptance date of the share option offer[51]. - The exercise price of any share options must be determined by the board and cannot be lower than the higher of the official closing price on the grant date or the average closing price over the five trading days preceding the grant date[54]. - The revised share option plan is effective for a period of 10 years starting from August 23, 2022, with a remaining term of approximately 9 years as of the report date[56]. Future Plans and Strategic Initiatives - The company plans to establish an overseas production base in Malaysia to provide supply solutions outside of China, responding to clients' supply chain restructuring trends[36]. - The company is committed to seeking long-term and sustainable new business opportunities to enhance performance and create greater value for customers, shareholders, and investors[36].
KFM金德(03816) - 2024 - 中期财报