Financial Performance - Revenue for the six months ended September 30, 2023, was HK$98,153,000, a decrease of 50.7% compared to HK$199,522,000 in the same period of 2022[11]. - Gross profit for the period was HK$20,033,000, down 49.6% from HK$39,621,000 year-on-year[11]. - The company reported a loss from operations of HK$2,663,000, compared to a profit of HK$8,104,000 in the previous year[11]. - Net loss for the period was HK$18,367,000, compared to a profit of HK$7,821,000 in the same period last year[11]. - Basic and diluted loss per share was HK$0.09, compared to earnings of HK$0.04 per share in the prior year[11]. - Total comprehensive loss for the period was HK$57,129,000, compared to a total comprehensive loss of HK$66,194,000 in the previous year[15]. - The reportable segment (loss)/profit (adjusted EBITDA) for the six months ended 30 September 2023 was a loss of $20,132,000, compared to a profit of $11,218,000 in the same period of 2022[67]. - The consolidated (loss)/profit before taxation for the six months ended 30 September 2023 was a loss of $17,667,000, compared to a profit of $9,522,000 in the same period of 2022[67]. - The company recorded a loss attributable to equity shareholders of HK$18,367,000, a significant decline from a profit of HK$7,821,000 in the previous year, representing a 335% decrease[150]. - The operating margin fell to -3% from 4% year-on-year, indicating a substantial deterioration in operational performance[150]. Revenue Breakdown - For the six months ended September 30, 2023, the revenue from the manufacture and sale of garments was HK$94,865,000, a decrease of 50% compared to HK$190,161,000 in the same period of 2022[56]. - Revenue from the manufacture and sale of textiles dropped to HK$117,000 from HK$4,952,000, indicating a significant decline[56]. - Processing service income decreased to HK$401,000 from HK$1,406,000, reflecting a reduction of approximately 71%[56]. - Total revenue for the period was HK$98,153,000, down from HK$199,522,000, representing a decline of about 51%[56]. - Revenue from external customers for the six months ended 30 September 2023 was $98,153,000, a decrease of 50.7% compared to $199,522,000 in the same period of 2022[60]. - Revenue from external customers in Europe decreased significantly, with the United Kingdom revenue dropping from $43,351,000 in 2022 to $23,350,000 in 2023[71]. Cash Flow and Assets - Cash and cash equivalents decreased to $74,842,000 at the end of the period, down from $178,074,000 at the beginning of the period, representing a decline of 58.0%[28]. - Operating activities generated a net cash outflow of $13,369,000 for the six months ended September 30, 2023, compared to a cash inflow of $39,266,000 in the prior year[28]. - As of September 30, 2023, total assets less current liabilities amounted to $1,073,834,000, a decrease of 5.6% from $1,137,540,000 as of March 31, 2023[19]. - The total equity decreased to $1,046,921,000 as of September 30, 2023, down from $1,108,185,000 as of March 31, 2023, indicating a decline of 5.5%[19]. - The company’s inventories increased significantly to $25,438,000 as of September 30, 2023, up from $16,318,000 as of March 31, 2023, reflecting a rise of 55.0%[19]. - Current liabilities rose to $78,518,000, an increase of 40.4% from $55,881,000 as of March 31, 2023[19]. - The total specified non-current assets as of 30 September 2023 were valued at $504,381,000, down from $552,569,000 as of 31 March 2023[71]. Expenses and Costs - Selling and distribution expenses decreased to HK$11,584,000 from HK$12,447,000, a reduction of 6.9%[11]. - Administrative expenses were reduced to HK$15,449,000 from HK$16,728,000, a decrease of 7.7%[11]. - The finance costs for the six months ended 30 September 2023 were $278,000, down from $1,069,000 in the same period of 2022[67]. - The total finance costs decreased to $278,000 in 2023 from $1,069,000 in 2022, primarily due to a reduction in interest on bank advances[76]. - The provision for deferred tax relating to the origination and reversal of temporary differences was $700,000 for the six months ended 30 September 2023, compared to $1,249,000 in 2022[76]. Investments and Valuation - The company experienced a net valuation gain on investment properties of HK$222,000, down from HK$1,733,000 in the previous year[11]. - The company recognized a net valuation gain of $222,000 on investment properties for the six months ended 30 September 2023, down from $1,733,000 in the previous year[94]. - The company’s investment in Wuxi recorded losses, with low gross margins due to increased production costs and high material prices impacting profitability[156]. Corporate Governance and Compliance - The interim financial report was authorized for issue on 29 November 2023, covering the six months ended 30 September 2023[31]. - The report is prepared in accordance with HKAS 34 and reflects the same accounting policies as the annual financial statements for the year ended 31 March 2023[32]. - The report is unaudited but has been reviewed by the Company's Audit Committee[35]. - The auditor's report for the year ended 31 March 2023 was unqualified and did not contain any statements under sections 406 or 407 of the Companies Ordinance[41]. - The company has complied with the Code on Corporate Governance Practices throughout the period ended September 30, 2023, except for the non-executive directors not being appointed for a specific term[197]. - All directors confirmed compliance with the required standards set out in the Model Code for Securities Transactions throughout the review period[198]. - The audit committee has reviewed the accounting principles and practices adopted by the group and the unaudited interim financial statements for the period ended September 30, 2023[196]. Employee and Shareholder Information - The company employed approximately 302 employees as of 30 September 2023, with remuneration packages linked to performance and market salary levels[162]. - The total number of shares available for issue under the share option scheme as of September 30, 2023, was 20,674,768 shares, representing 10% of the issued share capital[179]. - No share options were granted, exercised, or cancelled during the period, and no share options were outstanding as of September 30, 2023[180]. - Guangzhou Textiles Industry & Trade Holdings Ltd. holds 17,806,000 ordinary shares, accounting for 8.61% of the issued ordinary shares[188]. - The company did not purchase, sell, or redeem any of its listed securities during the period ended September 30, 2023[191].
长江制衣(00294) - 2024 - 中期财报