Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 368,294,000, a decrease of 9.8% compared to HKD 408,349,000 in the same period of 2022[4] - Gross profit for the same period was HKD 178,641,000, down 1.0% from HKD 181,449,000 year-over-year[4] - The company reported a loss before tax of HKD 26,263,000, compared to a profit of HKD 59,549,000 in the previous year, indicating a significant decline[4] - Net loss for the period was HKD 29,904,000, compared to a profit of HKD 53,386,000 in the same period last year[4] - Basic and diluted loss per share was HKD 2.86, compared to earnings of HKD 5.08 per share in the prior year[4] - The group reported a loss of HKD 29,904,000 for the period, with an operating loss of HKD 26,263,000 before tax[15] - The total comprehensive loss for the period was HKD 40,652,000, including foreign exchange losses of HKD 10,911,000[15] - The company recorded a loss attributable to equity holders of HKD 29.9 million, while in the previous year, it reported a profit of HKD 53.2 million[50] Assets and Liabilities - Total assets as of September 30, 2023, amounted to HKD 1,099,734,000, an increase from HKD 1,063,123,000 as of March 31, 2023[7] - Total liabilities increased to HKD 710,750,000 from HKD 633,060,000, reflecting a rise in financial obligations[7] - As of September 30, 2023, the group had total equity of HKD 388,984,000, down from HKD 430,063,000 as of April 1, 2023[10] - The group’s total liabilities increased from HKD 633,060,000 as of March 31, 2023, to HKD 710,750,000[19] - The group’s borrowing ratio increased to 72.3% as of September 30, 2023, compared to 60.7% on March 31, 2023, with net debt rising to HKD 277.3 million from HKD 257.4 million[58] - Current assets and current liabilities as of September 30, 2023, were approximately HKD 429.1 million and HKD 633.2 million, respectively, resulting in a current ratio of about 0.68 (down from 0.74 on March 31, 2023)[59] Cash Flow - Cash and cash equivalents decreased to HKD 62,768,000 from HKD 85,426,000, indicating a cash outflow during the period[8] - Operating cash flow for the six months was HKD 39,736,000, down from HKD 54,272,000 in the previous year[8] - The company experienced a net cash outflow of HKD 22,733,000 in cash and cash equivalents during the period[8] Revenue Segments - For the six months ended September 30, 2023, total revenue from the watch retail segment was HKD 147,737,000 in Hong Kong, Macau, and mainland China, and HKD 109,845,000 in other Asian regions, totaling HKD 368,294,000 from external customers[15] - The watch wholesale business generated revenue of HKD 208,453,000, contributing to a total segment revenue of HKD 466,035,000[15] - The revenue from the Greater China "Time Corridor" business was HKD 147.7 million, an increase of 11.4% year-on-year, with retail sales in Hong Kong and Macau growing by 18.6%[52] - The Southeast Asia "Time Corridor" business revenue was HKD 109.8 million, a decrease of 14.2% year-on-year, impacted by inflation and a slowdown in private consumption[53] - The group's watch supply chain and wholesale trade segment revenue decreased by 25.2% to HKD 110.7 million (compared to HKD 147.9 million in the first half of 2022) with a profit of HKD 13.5 million (down from HKD 25.3 million in the first half of 2022)[55] Expenses and Costs - The group’s administrative net expenses were HKD 14,698,000, impacting overall profitability[15] - Depreciation expenses for property, plant, and equipment rose to HKD 9,993,000 in 2023 from HKD 9,185,000 in 2022, while depreciation for right-of-use assets increased to HKD 31,426,000 from HKD 28,622,000[23] Dividends and Shareholder Information - The company did not declare an interim dividend for the six months ended September 30, 2023, compared to no dividend in the same period of 2022[24] - As of September 30, 2023, Mr. Huang Chuangzeng holds a total of 549,341,014 shares, representing 52.49% of the issued share capital[76] - The company did not repurchase any shares during the reporting period[80] Corporate Governance - The company has complied with the corporate governance code, except for the combined roles of Chairman and CEO held by Mr. Huang Chuangzeng[81] - The Audit Committee reviewed the effectiveness of the internal control system and financial reporting procedures for the six months ending September 30, 2023[85] - All directors have complied with the standard code of conduct for securities trading during the six months ending September 30, 2023[89] - The company has adopted the standard code of conduct for securities trading as per the listing rules[88] Employee and Management Information - As of September 30, 2023, the group had approximately 851 employees, a slight increase from 846 employees a year earlier[69] - The management has set aside HKD 1.62 million for executive bonuses under the executive bonus plan for the six months ended September 30, 2023, compared to HKD 1.12 million in the same period of 2022[70] Risk Management - The group closely monitors capital management and financial risks related to currency and interest rate fluctuations[57] - The group maintains a cautious short-term outlook for the retail sector due to uncertainties from rising interest rates, inflation, and geopolitical conflicts[56]
宝光实业(00084) - 2024 - 中期财报