Financial Performance - The company's revenue for the six months ended September 30, 2023, was approximately HKD 322,182,000, a decrease of 4.6% compared to HKD 337,736,000 in the same period of 2022[5]. - Gross profit for the same period was HKD 51,105,000, with a gross margin of 15.9%, slightly up from 15.6% in the previous year[5]. - Operating profit decreased to HKD 7,161,000 from HKD 11,328,000 year-on-year, resulting in a net loss of HKD 7,960,000 compared to a profit of HKD 11,328,000 in the prior period[5][7]. - The company reported a net loss attributable to shareholders of HKD 7,960 for the six months ended September 30, 2023, compared to a profit of HKD 11,328 in 2022[77]. - Basic and diluted loss per share for the period was HKD (3.32), down from earnings of HKD 5.66 in the previous year[79]. Financing Costs - The company experienced a significant increase in financing costs, rising approximately 83.7% to HKD 8,082,000 from HKD 4,399,000 in the previous year[7]. - Financing costs rose by 83.7% to approximately HKD 8,082,000, compared to approximately HKD 4,399,000 in the same period last year, mainly due to rising interest rates[15]. - The actual interest rates for bank loans ranged from 5.38% to 7.69% as of September 30, 2023, compared to 1.70% to 7.70% as of March 31, 2023[102]. Assets and Liabilities - The total assets as of September 30, 2023, were HKD 287,673,000, a decrease from HKD 301,574,000 as of March 31, 2023[5]. - The asset-liability ratio as of September 30, 2023, was approximately 315.2%, up from 309.8% as of March 31, 2023, due to net losses attributed to expected credit losses on trade and other receivables[22]. - The company's current ratio was 0.77, slightly down from 0.80, indicating a decrease in liquidity[5]. - The company's net asset value decreased to HKD 40,324,000 as of September 30, 2023, from HKD 47,003,000 as of March 31, 2023[47]. - The total financial liabilities were HKD 239,389,000 as of September 30, 2023, down from HKD 246,153,000 as of March 31, 2023, indicating a reduction of 2.8%[108]. Cash Flow - The net cash generated from operating activities for the six months ended September 30, 2023, was HKD 19,396,000, a decrease of 70.4% compared to HKD 65,422,000 in the same period of 2022[19]. - Cash and cash equivalents decreased by HKD 6,867,000, ending at HKD 15,138,000 compared to HKD 31,494,000 at the end of the previous period[19]. - The company’s cash and cash equivalents decreased to HKD 15,138,000 as of September 30, 2023, from HKD 20,851,000 as of March 31, 2023, a decline of 27.5%[108]. Revenue Sources - For the six months ended September 30, 2023, the group's revenue was approximately HKD 322,182,000, with 99.4% coming from the United States, a slight decrease from HKD 337,736,000 in the same period of 2022[10]. - Outerwear contributed HKD 165,874,000 to revenue, with a sales volume increase of approximately 10.9%[9]. - Revenue from customer contracts for the six months ended September 30, 2023, was HKD 322,182, a decrease of 4.2% compared to HKD 337,736 in 2022[64]. Cost Management - The company maintained a focus on cost control, reducing sales and distribution expenses significantly from HKD 18,652,000 to HKD 12,914,000[6]. - Sales and distribution costs decreased by 30.8% to approximately HKD 12,914,000, down from approximately HKD 18,652,000 in the previous year[13]. - General and administrative expenses increased by 12.9% to approximately HKD 26,526,000, up from approximately HKD 23,495,000, with employee costs rising due to performance bonuses[14]. Employee and Management - As of September 30, 2023, the company employed approximately 1,364 full-time employees, a decrease from 1,444 employees as of March 31, 2023[24]. - The total compensation for key management personnel increased to HKD 6,910,000 for the six months ended September 30, 2023, compared to HKD 5,132,000 for the same period in 2022, representing a rise of 34.7%[106]. Corporate Governance - The company has adopted a standard code for securities trading, confirming compliance by all directors during the review period[29]. - The company has adhered to all applicable corporate governance codes, except for the separation of the roles of Chairman and CEO[30]. Market Outlook - The group anticipates that the shipment volume for the second half of the fiscal year ending March 31, 2024, will be lower than the same period last year due to intense competition in holiday sales[20]. - The company expects continued growth in sales performance in the U.S. retail market over the next four years[94].
STERLING GP(01825) - 2024 - 中期财报