Financial Performance - The company's revenue for the period reached HKD 1,322,485,000, marking a 4.6% decrease compared to HKD 1,386,665,000 in the previous year due to a high base from COVID-19 related demand[10]. - Profit attributable to equity holders was HKD 50,764,000, a decrease of 35% from HKD 110,350,000 in the previous year, excluding government wage subsidies[14][29]. - Total comprehensive income for the six months ended October 31, 2023, was HKD 46,253,000, compared to HKD 105,809,000 for the same period last year, representing a decrease of approximately 56.2%[74]. - Operating profit for the period was HKD 67,146,000, down from HKD 135,760,000 in the previous year, indicating a decrease of 50.6%[50]. - Basic earnings per share for equity holders was HKD 7.06, compared to HKD 15.37 in the previous year, reflecting a decrease of approximately 54.0%[74]. Revenue Breakdown - Revenue from the Hong Kong market was HKD 1,147,066,000, a decrease of 6.5% from HKD 1,227,140,000 in the previous year[21]. - Retail sales revenue, including consignment commission income, reached HKD 1,318,523,000, a decrease from HKD 1,365,174,000 in 2022/23, accounting for 99.7% of total revenue[37]. - Business revenue in Singapore increased by 10.3% year-on-year to SGD 26,500,000, up from SGD 24,036,000 in 2022/23[40]. - Revenue in Macau recorded HKD 21,821,000, down from HKD 24,469,000 in 2022/23, while maintaining profitability[41]. - Total revenue for the retail segment in Hong Kong and Macau was HKD 1,164,925,000, with a gross profit margin of 47.36%[130]. Cost and Expenses - Total employee costs for the year reached HKD 216,886,000, an increase from HKD 192,564,000 in 2022/23, with approximately 2,190 employees as of October 31, 2023, compared to 2,060 a year earlier[34]. - The total cash outflow for leases was HKD 213,042,000 for the six months ended October 31, 2023, compared to HKD 204,876,000 for the same period in 2022, indicating a year-over-year increase of about 3.4%[151]. - Interest expenses on lease liabilities for the six months ended October 31, 2023, were HKD 11,261,000, up from HKD 7,828,000 in the previous year, indicating a significant increase of 43.8%[169]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.056 per share[30]. - The company reported a dividend payment of HKD 71,925 thousand, compared to HKD 86,161 thousand in the same period last year, reflecting a decrease of 16.5%[78]. - The interim dividend declared was HKD 0.056 per share, totaling approximately HKD 40,315,000, a decrease from HKD 86,380,000 in the previous year[166]. Assets and Liabilities - Total assets amounted to HKD 1,774,251,000, slightly down from HKD 1,777,438,000, a decrease of about 0.9%[76]. - Total liabilities increased to HKD 895,071,000 from HKD 873,035,000, representing an increase of approximately 2.5%[76]. - Non-current assets increased to HKD 944,208,000 from HKD 893,674,000, marking an increase of about 5.6%[76]. - Cash and cash equivalents decreased to HKD 318,775,000 from HKD 402,310,000, indicating a reduction of approximately 20.8%[76]. Strategic Initiatives - The company plans to open new stores in potential markets such as Hong Kong, Singapore, and Macau, focusing on quality and value for middle-class customers[19][22]. - The company is enhancing global procurement and partnerships to launch affordable health and wellness products[22]. - The establishment of a new self-operated logistics and distribution center is expected to improve product delivery efficiency and support long-term business development[39]. - The company is launching a new online platform "JHCeshop" in November 2023 to enhance the online shopping experience and integrate inventory management between online and physical stores[67]. Market Outlook - The company remains cautiously optimistic about future growth opportunities in light of government measures to increase housing supply in Hong Kong[59]. - The company acknowledges the importance of technology for future success and plans to invest in tools that enhance productivity and reduce costs[68]. Financial Management - The company reported a foreign exchange loss of HKD 2,482,000 during the period, contributing to the overall decrease in comprehensive income[77]. - The company received government subsidies of approximately HKD 1,880,000 during the six months ended October 31, 2023, a significant decrease from HKD 32,681,000 in the same period of 2022[120]. - The company is evaluating the impact of new and revised accounting standards, with preliminary conclusions indicating no significant impact on operational performance or financial position[86].
国际家居零售(01373) - 2024 - 中期财报