Financial Performance - Revenue for the six months ended October 31, 2023, was HKD 750,947,000, a decrease of 15.5% compared to HKD 888,738,000 in the same period of 2022[7] - Gross profit for the same period was HKD 302,354,000, down 7.0% from HKD 325,294,000 year-on-year[7] - Operating profit significantly decreased to HKD 7,783,000, a decline of 83.0% from HKD 45,700,000 in the previous year[7] - Net profit attributable to equity holders was HKD 330,000, a drastic drop of 99.0% compared to HKD 33,794,000 in the prior year[7] - The company reported a total comprehensive loss of HKD 7,656,000 for the period, compared to a comprehensive income of HKD 15,698,000 in the same period last year[10] - Cash generated from operating activities decreased to HKD 85,918,000 in 2023 from HKD 129,818,000 in 2022, reflecting a decline of approximately 33.8%[16] - The net cash generated from operating activities after tax payments was HKD 78,323,000, down from HKD 107,912,000 in the previous year, representing a decrease of about 27.5%[16] - The group recorded a significant decline in profit attributable to equity holders, down 99% to HKD 330,000 from HKD 33,794,000 in the previous year[39] Assets and Liabilities - Total assets as of October 31, 2023, amounted to HKD 923,347,000, a slight increase from HKD 917,091,000 as of April 30, 2023[13] - Current liabilities increased to HKD 285,845,000 from HKD 270,779,000, indicating a rise in short-term financial obligations[13] - The company’s total equity as of October 31, 2023, was HKD 519,225,000, compared to HKD 508,689,000 as of October 31, 2022, reflecting a growth of about 2.9%[14] - Total liabilities increased to HKD 404,122,000 from HKD 383,548,000, an increase of approximately 5.4%[25] - The group’s total bank borrowings and credit facilities amounted to approximately HKD 383,353,000, with undrawn credit of about HKD 369,728,000[48] Cash Flow and Liquidity - The company’s cash and cash equivalents decreased to HKD 75,564,000 from HKD 86,022,000, reflecting a reduction in liquidity[13] - The cash and cash equivalents at the end of the period were HKD 75,564,000, down from HKD 87,184,000 at the end of the previous year, showing a decrease of approximately 13.3%[16] - The net cash outflow for the six months ended October 31, 2023, was HKD 9,591,000, compared to a cash inflow of HKD 9,432,000 in the previous year[54] - Operating cash inflow for the period was HKD 78,323,000, down 27.4% from HKD 107,912,000 in the previous year[54] Business Segments Performance - Retail business revenue decreased to HKD 726,750,000 from HKD 851,063,000, a decline of approximately 14.6%[23] - Electronic components manufacturing revenue decreased to HKD 23,703,000 from HKD 37,123,000, a decline of approximately 36.1%[23] - The retail business segment revenue was HKD 726,750,000, down 14.6% from HKD 851,063,000 year-on-year, accounting for approximately 97% of total revenue[41] - The gross profit for the retail segment decreased to HKD 299,075,000, a decline of about 6.6% from HKD 320,156,000 in the previous year, with a gross profit margin of 41.2%, up 3.6 percentage points year-on-year[41] - The electronic components manufacturing segment reported revenue of HKD 23,703,000, a decrease of 36.2% compared to HKD 37,123,000 in the same period last year[45] Market Outlook and Strategy - Future outlook remains cautious due to the significant decline in profits and overall market conditions[6] - The company plans to continue its focus on retail operations, electronic component manufacturing, and investment properties, aiming for strategic growth in these sectors[17] - Management does not foresee significant expansion plans due to current market risks, focusing instead on improving operational efficiency and service levels[61] Governance and Shareholding - As of October 31, 2023, the total number of shares held by directors and senior management in CEC International Holdings Limited is 442,295,660, representing 66.39% of the issued share capital[62] - The major shareholder, Ms. Luo Jingyi, holds a total of 472,250,848 shares, which accounts for 70.89% of the issued share capital[65] - The company has adopted the corporate governance code as per the listing rules, with a noted deviation regarding the separation of the roles of Chairman and CEO[69] - The company’s governance structure is believed to provide strong and effective leadership, with the current arrangement of one individual serving as both Chairman and CEO[69] - The Audit Committee consists of three independent non-executive directors, with regular meetings held at least twice a fiscal year to review accounting principles and internal controls[70] - The Remuneration Committee has four members, including one executive director, and is responsible for establishing transparent procedures for the remuneration policies of all directors and senior management[71] - The Nomination Committee, comprising four members, reviews the board's structure and diversity, and assesses the independence of non-executive directors[72]
CEC INT'L HOLD(00759) - 2024 - 中期财报