Financial Performance - Total gross merchandise volume and revenue for the first half of the fiscal year 2023/24 were approximately HKD 434.7 million and HKD 396.3 million, representing a decrease of about 10.0% and 11.6% compared to the same period in the previous year[19]. - The net profit for the reporting period was approximately HKD 10.3 million, a significant increase of about 921.2% compared to HKD 1.0 million in the same period last year, primarily due to reduced listing expenses and increased bank interest income[19]. - Revenue for the first half of 2023/24 was HKD 396.3 million, a decline from HKD 448.2 million in the same period last year[40]. - Gross profit for the first half of 2023/24 was HKD 58.9 million, compared to HKD 67.8 million in the previous year[40]. - Adjusted net profit for the first half of 2023/24 was HKD 10.5 million, down from HKD 15.8 million year-over-year[40]. - The company reported a gross margin of 14.9%, slightly down from 15.1% in the previous year[40]. - The company maintained a stable debt-to-equity ratio of zero as of September 30, 2023, and March 31, 2023[83]. - The company reported a cash outflow of approximately HKD 19.8 million from operating activities during the period[82]. - The profit attributable to the company's owners for the six months ended September 30, 2023, was HKD 10,283,000, significantly up from HKD 1,007,000 in the same period of 2022, indicating a substantial increase of approximately 920.5%[187]. Membership and Merchant Growth - The number of registered members reached approximately 1.05 million as of September 30, 2023, an increase of 87,000 members since March 31, 2023, indicating continued brand penetration[8]. - The company successfully attracted over 440 registered merchants to the platform, introducing approximately 20,000 stock-keeping units (SKUs), with a target of 60,000 non-repeating SKUs by the end of the fiscal year 2023/24[9]. - Registered member count increased by 19.6% to 1,048,000 from 876,000 year-over-year[26]. Strategic Focus and Business Model - The company is focusing on enhancing its core competitiveness and has adjusted its development strategy to strengthen its 3P business model, diversifying its product mix and revenue structure[20][21]. - The company is focusing on an OMO (Online-Merge-Offline) business model to enhance customer experience and drive growth[35]. - The company aims to improve the online shopping experience by continuously enhancing the user interface and functionality of its e-commerce platform, as well as improving logistics efficiency and after-sales service quality[8]. - The company has implemented a more flexible commission system to attract high-quality third-party merchants to the platform, allowing them to adopt more competitive pricing strategies[21]. - The company is actively seeking strategic acquisitions to gain growth opportunities, targeting e-commerce platforms, upstream and downstream companies, or brands[66]. Market and Economic Conditions - The company anticipates that the local retail market will take time to recover, and the challenging business environment may impact organic growth momentum[66]. - The company is focusing on the Greater Bay Area for market expansion, leveraging its brand advantage and strong supply chain capabilities to target affluent middle-class consumers in mainland China[70]. Operational Metrics - The number of orders received decreased by 8.6% to 235,000 from 257,000 in the previous year[26]. - Average transaction value per order was HKD 1,849, down 1.6% from HKD 1,880[26]. - Operating expenses as a percentage of total revenue were approximately 12.9% for the first half of 2023/24, compared to 11.8% for the same period in 2022/23[87]. - Direct sales from large appliances increased to HKD 99,004,000, up 20.7% from HKD 81,986,000 year-over-year[163]. - Revenue from kitchen appliances decreased to HKD 37,773,000, down 22.2% from HKD 48,563,000 year-over-year[163]. Cash and Capital Management - Cash and cash equivalents increased to HKD 218.8 million from HKD 211.3 million year-over-year[40]. - The total cash position increased by 3.6% from approximately HKD 209.9 million as of March 31, 2023, to HKD 217.5 million as of September 30, 2023[82]. - As of September 30, 2023, the unutilized net proceeds amount to approximately HKD 49.8 million, which has been deposited in approved financial institutions in Hong Kong as interest-bearing deposits[61]. - The company has allocated 7.1% of the net proceeds, approximately HKD 5.3 million, to expand the product offerings on its e-commerce platform[86]. - The company aims to strengthen its supply chain capabilities, allocating 9.2% of the net proceeds, approximately HKD 6.9 million, for this purpose[86]. Employee and Operational Costs - For the six months ended September 30, 2023, the total employee costs amounted to HKD 18,213,000, an increase from HKD 17,010,000 for the same period in 2022, representing a growth of approximately 7.1%[177]. - Sales and distribution expenses decreased from approximately HKD 36.8 million in the first half of 22/23 to approximately HKD 33.6 million in the first half of 23/24, a reduction of about 8.7%[94]. - The company reported a decrease in selling and distribution expenses to HKD 33,573,000 from HKD 36,799,000, reflecting cost management efforts[154]. Shareholder Information - The company did not declare any interim dividend for the period ended September 30, 2023[144]. - The company declared a final dividend of HKD 0.024 per share for the year ended March 31, 2023, totaling HKD 12,000,000[167].
友和集团(02347) - 2024 - 中期财报