Financial Performance - The Group achieved a revenue of HK$1,848 million for the six months ended 30 September 2023, representing a year-on-year increase of 10.4% from HK$1,674 million in 2022[61]. - Gross profit increased by 6.5% to HK$572 million, with a gross profit margin slightly decreasing by 1.1 percentage points to 31.0%[61]. - Operating profit rose by 0.9% to HK$215 million, indicating the Company's business resilience despite macro challenges[61]. - Net profit decreased by 7.9% year-on-year to HK$139 million, down from HK$151 million in 2022, primarily due to an increase in the effective tax rate[61]. - Revenue from Mainland China operations increased by 18.3% year-on-year to HK$1,302 million, up from HK$1,101 million in 2022[69]. - Hong Kong operations recorded revenue of HK$483 million, representing a decrease of 4.2% year-on-year from HK$504 million in 2022[70]. - For the six months ended September 30, 2023, the profit for the period was HK$1,820,874, a decrease from HK$2,035,007 in the same period last year, representing a decline of approximately 10.5%[104]. - Total comprehensive income for the period was HK$70,503,000, up from HK$42,523,000 in the same period last year[81]. Shareholder Information - Major shareholders include Yeung Ming Biu with 31.96% and Datsun Holdings Limited with 26.22% of the issued share capital[54]. - The directors' personal interests in shares included 4,084,000 shares held by Mr. Yeung Him Kit, representing 0.84% of the issued share capital[41]. - Madam Yeung Man Yee held 1,200,000 shares personally and 221,161 shares through family interest, totaling 1,421,161 shares or 0.29% of the issued share capital[41]. - Mr. Sun Dai Hoe held 3,200,000 shares, representing 0.66% of the issued share capital[41]. - The 2013 Share Option Scheme had a total of 57,061,022 shares available for issue, representing about 11.7% of the issued share capital as of November 2, 2023[49]. Employee Compensation and Schemes - The total remuneration for key management personnel during the period was HK$54,526,000, an increase from HK$44,790,000 in the same period last year, reflecting a growth of approximately 21.7%[25][30]. - The 2022 Share Award Scheme aims to motivate and retain employees, valid for 10 years from its adoption date[13]. - No options were granted or exercised under the 2013 Share Option Scheme during the reporting period[13]. - The total number of awards available for grant under the 2022 Share Award Scheme was 48,735,822 shares as of both 1 April 2023 and 30 September 2023[51]. - No share awards were granted under the 2022 Share Award Scheme since its adoption date[51]. Financial Position - As of September 30, 2023, the Group's total equity was HK$1,823 million, down from HK$1,896 million as of March 31, 2023[94]. - The Group's net current assets were HK$1,285 million, including bank and cash balances of HK$1,176 million, compared to HK$1,390 million and HK$1,079 million respectively as of March 31, 2023[94]. - The Group had no bank loans as of September 30, 2023, resulting in a gearing ratio of nil[94]. - The Group's net assets were HK$1,822.7 million as of September 30, 2023, compared to HK$1,895.9 million as of March 31, 2023[101]. Cash Flow and Investments - For the six months ended September 30, 2023, net cash from operating activities was HK$222,760,000, a decrease of 16.8% compared to HK$267,927,000 for the same period in 2022[124]. - Net cash used in investing activities amounted to HK$19,044,000, significantly higher than HK$2,483,000 in the previous year, indicating increased investment activity[111]. - Cash and cash equivalents at the end of the period were HK$1,175,925,000, down from HK$1,360,144,000 year-over-year, showing a decline in liquidity[111]. Inventory and Expenses - Overall inventory level decreased by 4.3% to HK$404 million as of September 30, 2023, down from HK$422 million as of March 31, 2023[74]. - Lease-related expenses increased by 21.3% year-on-year to HK$97 million, accounting for 24.8% of overall operating expenses[73]. - Rental expenses increased by 21.3% year-on-year to HK$97,000,000, accounting for 24.8% of total operating expenses[89]. Market Conditions and Strategies - The Company faced macro challenges such as interest rate hikes and supply chain disruptions, impacting customer sentiment and purchasing decisions[60]. - The Hong Kong government launched initiatives like consumer vouchers to attract tourists and drive consumption[59]. - The Group's strategies and rising brand profile contributed to satisfactory results despite a competitive environment[61]. - The Group plans to strengthen brand awareness through brand rejuvenation efforts and explore collaboration opportunities with branded partners[93]. Compliance and Governance - The Audit Committee has reviewed the unaudited consolidated financial statements for the six months ended September 30, 2023, ensuring compliance and accuracy[119]. - The Company has adhered to the Corporate Governance Code throughout the six months ended September 30, 2023, with some deviations noted[135]. - The Company does not have a formal dividend policy, with future dividends to be decided based on various factors including market conditions and operating results[122].
东方表行集团(00398) - 2024 - 中期财报