Financial Performance - For the six months ended September 30, 2023, the operating revenue increased by 16% to HKD 338,010,000 compared to HKD 290,881,000 in the same period last year[2]. - The profit attributable to the company's shareholders surged by 339% to HKD 30,715,000, up from HKD 6,989,000 in the previous year[2]. - Basic and diluted earnings per share rose by 337% to HKD 4.11, compared to HKD 0.94 in the prior year[2]. - Gross profit for the period was HKD 111,737,000, representing an increase from HKD 94,931,000, with a gross margin improvement[5]. - The company reported a total comprehensive income of HKD 21,596,000 for the period, compared to a total comprehensive loss of HKD 14,897,000 in the previous year[6]. - The company reported a net profit of HKD 30,715,000 for the period, compared to HKD 6,989,000 for the same period in 2022, indicating a significant increase in profitability[36]. - The group's revenue for the six months ended September 30, 2023, was HKD 338 million, a 16% increase from HKD 291 million in the same period last year[74]. - The group recorded a net profit of HKD 31 million for the period, compared to HKD 7 million in the same period last year[76]. Assets and Liabilities - Total assets decreased by 9% to HKD 744,000,000 from HKD 821,000,000 as of March 31, 2023[2]. - Total assets as of September 30, 2023, amounted to HKD 733,896,000, with segment assets for watch sales at HKD 353,473,000 and rental properties at HKD 374,105,000[34]. - The total liabilities for the group were HKD 296,609,000, with segment liabilities for watch sales at HKD 235,873,000 and rental properties at HKD 23,311,000[34]. - Trade receivables, net of impairment, increased to HKD 60,409,000 as of September 30, 2023, from HKD 56,790,000 as of March 31, 2023[57]. - Trade payables amounted to HKD 2,468,000 as of September 30, 2023, compared to HKD 1,939,000 as of March 31, 2023[59]. Cash Flow and Liquidity - The cash and cash equivalents decreased significantly to HKD 118,059,000 from HKD 194,441,000, indicating a liquidity contraction[8]. - The net cash generated from operating activities for the six months ended September 30, 2023, was HKD 29,407,000, an increase of 48.9% compared to HKD 19,750,000 in the same period of 2022[14]. - Cash used in investing activities amounted to HKD 6,289,000, a decrease of 38.8% from HKD 10,301,000 in the previous year[14]. - The net cash used in financing activities was HKD 90,619,000, a slight improvement from HKD 97,595,000 in the prior year[14]. - The ending cash and cash equivalents balance as of September 30, 2023, was HKD 118,059,000, up from HKD 102,074,000 year-over-year[14]. - The company reported a decrease in cash and cash equivalents of HKD 67,501,000 for the period, compared to a decrease of HKD 88,146,000 in the previous year[14]. - As of September 30, 2023, the group's cash balance was HKD 118 million, down from HKD 194 million as of March 31, 2023, primarily due to loan repayments and dividend payments[77]. Shareholder Information - As of September 30, 2023, Lin Jin-feng holds 442,234,400 shares, representing 59.19% of the total issued share capital[90]. - Yang Yu holds 2,087,472 shares, accounting for 0.28% of the total issued share capital[90]. - Yang Feng-ming owns 707,400 shares, which is 0.09% of the total issued share capital[90]. - Major shareholders include Shih Hsiung International Limited with 291,210,668 shares (38.98%), Chanchhaya Trustee Holding Corporation with 59,176,800 shares (7.92%), Goodideal Industrial Limited with 51,133,864 shares (6.84%), and Covenhills Limited with 64,255,243 shares (8.60%)[96]. Corporate Governance - The company adheres to high standards of corporate governance, maintaining transparency and accountability to all shareholders[84]. - The board confirms compliance with the code of conduct regarding securities trading during the review period[88]. - The company did not report any changes in the interests of directors or senior executives in the company's shares or related securities as of September 30, 2023[97]. Operational Highlights - The company is actively exploring market expansion opportunities and new product development strategies to drive future growth[4]. - The company did not declare an interim dividend for the period, maintaining a focus on reinvestment[2]. - The company employed a total of 104 employees as of September 30, 2023, offering competitive compensation packages and discretionary bonuses to motivate staff[101]. - The group currently operates 5 stores in China, focusing on core stores and streamlining operational costs to enhance cost efficiency per store[80]. - The future business outlook for these stores depends on the economic recovery in China post-COVID-19[80]. Expenses and Costs - Distribution costs increased by 6% to HKD 46 million, up from HKD 44 million in the previous year, primarily due to higher depreciation, entertainment, and rental expenses[74]. - Administrative expenses decreased by 46% to HKD 18 million from HKD 33 million in the previous year, largely due to reduced losses from investment properties in the UK[74]. - Financial costs rose by 28% to HKD 5 million, up from HKD 4 million, due to increased bank loan interest[75]. - The total cost of inventory recognized as an expense was HKD 226,273,000 for the six months ended September 30, 2023, compared to HKD 195,950,000 in the previous year[45]. - The company reported a reversal of inventory write-downs amounting to HKD (1,677,000) for the six months ended September 30, 2023, compared to HKD (1,983,000) in the same period of 2022[45]. Taxation and Interest - The income tax expense for the six months ended September 30, 2023, was HKD 16,672,000, slightly down from HKD 17,099,000 in the previous year[47]. - Interest income from bank deposits rose to HKD 2,049,000, up from HKD 1,622,000, reflecting improved cash management[14]. - Interest income for the six months ended September 30, 2023, was HKD 2,094,000, up from HKD 1,628,000 in the previous year[44]. Strategic Initiatives - The company has completed renovation work on one property acquired in previous years and is evaluating current market conditions for strategic decisions[80]. - Another property is progressing well according to the original schedule and budget[80]. - The group is committed to enhancing its financial strength and is confident in improving business performance while adopting a prudent approach to future expansions[81].
ASIA COMM HOLD(00104) - 2024 - 中期财报