德永佳集团(00321) - 2024 - 中期财报

Financial Performance - Revenue for the six months ended September 30, 2023, was HK$2,644,314, a decrease of 22.2% from HK$3,397,908 in the same period of 2022[22]. - Gross profit for the period was HK$672,544, down 31.1% from HK$975,825 in the previous year[22]. - Profit for the period was HK$45,081, representing a decline of 59.1% compared to HK$110,546 in 2022[24]. - Basic and diluted earnings per share attributable to ordinary equity holders was 3.2 HK cents, down from 8.2 HK cents in the prior year[22]. - Total comprehensive loss for the period was HK$67,088, compared to a loss of HK$187,051 in the same period of 2022[24]. - Profit before tax for the period was HK$67,105, down 56.3% from HK$152,487 in the previous year[54]. - Profit attributable to ordinary equity holders decreased by 61.1% to HK$44 million, down from HK$113 million in the previous year[61]. - The gross profit margin declined to 25.4%, a decrease of 3.3 percentage points from 28.7% in the prior period[61]. - The gross profit margin for the textile business decreased by 5.5 percentage points to 16.3%[63]. - Operating loss (EBITDA) for the six months ended September 30, 2023, was HK$(120) million, an improvement from HK$(267) million for the same period in 2022[143]. Assets and Liabilities - The Group reported total non-current assets of HK$2,197,759,000 as of September 30, 2023, a decrease of 6.3% from HK$2,345,914,000 as of March 31, 2023[9]. - Current assets increased to HK$4,724,022,000, up 2.7% from HK$4,600,708,000 as of March 31, 2023[9]. - Total current liabilities increased to HK$1,749,531,000, up from HK$1,527,093,000 as of March 31, 2023[9]. - The Group's net current assets decreased to HK$2,974,491,000 from HK$3,073,615,000 as of March 31, 2023[9]. - The total assets less current liabilities were HK$5,172,250,000, down from HK$5,419,529,000 as of March 31, 2023[9]. - The total non-current liabilities decreased to HK$361,945 from HK$403,966, a reduction of 10.4%[43]. - Net assets as of September 30, 2023, were HK$4,810,305, down from HK$5,015,563, indicating a decline of 4.1%[43]. - Trade payables amounted to HK$547,874,000, an increase from HK$435,979,000 as of March 31, 2023, representing a 25.6% growth[159]. Cash Flow and Financing - The Group's cash and cash equivalents at the end of the period were HK$1,244,014,000, significantly up from HK$414,642,000 in the previous year[13]. - The net cash flows from operating activities for the six months ended September 30, 2023, were HK$186,089,000, compared to HK$252,404,000 in the same period last year[13]. - Interest income increased significantly to HK$39,201, compared to HK$14,662 in the prior period, reflecting a growth of 167.5%[54]. - The Group's interest-bearing bank borrowings increased to HK$574,511,000 from HK$431,688,000 as of March 31, 2023[9]. - The current ratio, total bank borrowings, and gearing ratio as of the period end were 2.7, HK$575 million, and -0.3 respectively[80]. - The Group's funding requirements were mainly satisfied with cash and bank balances and bank borrowings[80]. Dividends and Equity - The company declared an interim dividend of HK5.0 cents per ordinary share[20]. - Total equity reached HK$5,015,563, a decrease of 2.2% compared to the previous period[29]. - Retained profits amounted to HK$3,635,740, reflecting a 1.2% increase from the prior period[29]. - Dividends declared for the period were HK$138,170, consistent with the previous period[29]. - The Board declared an interim dividend of HK5.0 cents per ordinary share, a reduction of 50.0% compared to HK10.0 cents in the previous interim period[59]. Market Performance and Strategy - The production, dyeing, and sale of knitted fabric and garments segment remains a key focus area for the company[37]. - The retailing and distribution of casual apparel and accessories segment continues to show growth potential[37]. - The company is exploring market expansion opportunities through franchise services and property investment[37]. - Future outlook includes continued investment in new product development and technology[37]. - The company aims to enhance operational efficiency across its business segments[37]. - The retail business will actively reduce or close physical stores in Mainland China, aiming to significantly reduce losses in this segment[95]. - The Group plans to continue reducing its physical retail network while expanding online sales, consignment sales, and franchising business[141]. Employee and Management - As of September 30, 2023, the Group had approximately 8,921 employees, a decrease from 9,784 employees as of 31 March 2023[87]. - Total compensation paid to key management personnel decreased to HK$18,937,000 for the six months ended September 30, 2023, down from HK$22,013,000 in the same period of 2022, representing a decline of approximately 13%[173]. - Short-term employee benefits amounted to HK$18,928,000 for the six months ended September 30, 2023, compared to HK$22,004,000 in the previous year, indicating a decrease of about 14%[173]. Financial Instruments and Risk Management - The Group has arranged foreign exchange forward contracts to mitigate currency exchange risks during the reporting period[84]. - Major assets, liabilities, revenue, expenses, and procurements were denominated in HKD, USD, RMB, and YEN[84]. - The Group's financial instruments are categorized into three levels based on the fair value measurement hierarchy, with Level 1 based on quoted prices in active markets, Level 2 based on observable inputs, and Level 3 based on unobservable inputs[176]. - The Group has implemented trade insurance for certain receivables to further reduce credit risk exposure[157]. - The Group's management has established a rigorous credit monitoring system to manage trade receivables effectively[157]. Acquisitions and Investments - The Group's acquisition of Fashion Time Viet Nam Ltd. was agreed at a consideration of US$78,591,942, subject to completion adjustments[84]. - The completion of the acquisition of a knitted fabric factory in Vietnam is expected to enhance the Group's capacity and improve sales performance[63]. - The Group plans to enhance production flexibility and secure overseas orders through the acquisition of a knitted fabric manufacturing plant in Vietnam[94]. - Upon completion, Fashion Time will become a wholly-owned subsidiary of the Group[194].