Revenue and Profitability - Revenue for the six months ended December 31, 2023, was approximately HKD 432.0 million, a decrease of about HKD 33.7 million compared to HKD 465.7 million for the same period in 2022[2] - Profit attributable to the owners of the company for the first half of the 2024 fiscal year was approximately HKD 11.5 million, compared to a loss of HKD 44.9 million for the same period in 2023[2] - Basic earnings per share for the first half of the 2024 fiscal year was HKD 0.6 cents, compared to a basic loss per share of HKD 2.2 cents for the first half of the 2023 fiscal year[2] - Total comprehensive income for the six months ended December 31, 2023, was HKD 17.2 million, compared to a total comprehensive loss of HKD 149.4 million for the same period in 2022[3] - The group reported a pre-tax profit of HKD 15.4 million for the first half of 2024, compared to a pre-tax loss of HKD 48.7 million for the same period in 2023[3] - Net income for the first half of the 2024 fiscal year was approximately HKD 39.5 million, compared to a net loss of HKD 1.9 million in the same period of 2023, primarily due to a reduction in foreign exchange losses[68] Sales and Revenue Breakdown - The group’s external sales for the Tian Wang watch business were HKD 382.8 million, contributing significantly to the overall revenue[11] - Tian Wang watch business contributed approximately 87.8% to total revenue in the first half of the 2024 fiscal year, up from 82.2% in the same period of 2023[73] - Revenue from other brands (China) decreased by approximately HKD 33.6 million or 72.5% to HKD 12.8 million in the first half of the 2024 fiscal year, accounting for about 3.0% of total revenue[66] - Total revenue from the Tian Wang watch business decreased by approximately HKD 3.4 million or 0.9% to approximately HKD 379.4 million in the first half of the 2024 fiscal year, down from approximately HKD 382.8 million in the first half of the 2023 fiscal year[145] - The revenue from the watch trade business accounted for approximately 9.2% of the total revenue in the first half of the 2024 fiscal year, up from 7.8% in the previous year[179] Expenses and Costs - Gross profit for the six months ended December 31, 2023, was HKD 315.6 million, compared to HKD 327.2 million for the same period in 2022, reflecting a decrease of approximately 3.9%[3] - The total employee costs, including directors' remuneration, decreased to HKD 137,426 thousand from HKD 163,606 thousand, reflecting a reduction of approximately 16.0%[158] - Administrative expenses decreased by approximately HKD 5.4 million or 11.0% to HKD 43.8 million in the first half of the 2024 fiscal year, mainly due to a reduction in employee costs[69] - The company’s sales and distribution costs decreased by approximately HKD 27.6 million or 8.4%, from HKD 323.9 million in the first half of the 2023 fiscal year to HKD 296.6 million in the first half of the 2024 fiscal year[42] Cash Flow and Financial Position - The net cash generated from operating activities for the first half of the 2024 fiscal year was approximately HKD 84.3 million, an increase of about 111.3% from HKD 39.9 million in the first half of the 2023 fiscal year[50] - Cash and cash equivalents as of December 31, 2023, were approximately HKD 927.8 million, an increase from HKD 792.2 million as of June 30, 2023[76] - The company has adopted a conservative financial policy, maintaining an appropriate level of cash and cash equivalents to support operations and mitigate cash flow volatility[190] - The company reported a net loss from foreign exchange of HKD 2,276 thousand, a significant improvement compared to a loss of HKD 45,835 thousand in the previous period[154] Inventory and Receivables - The company's trade receivables from third parties amounted to HKD 152.1 million as of December 31, 2023, down 19.2% from HKD 188.3 million as of June 30, 2023[36] - The inventory balance as of December 31, 2023, was approximately HKD 229.6 million, reflecting a slight increase of 0.4% from HKD 228.6 million as of June 30, 2023[49] - Inventory aged over two years was approximately HKD 156.0 million as of December 31, 2023, with corresponding provisions of about HKD 108.1 million[188] Dividends and Equity - The company did not recommend the payment of an interim dividend for the six months ended December 31, 2023[2] - Total equity as of December 31, 2023, was approximately HKD 2,322.5 million, a decrease of approximately HKD 65.1 million from HKD 2,387.6 million as of June 30, 2023[77] Market and Operational Insights - The company plans to continue monitoring and controlling inventory levels to align with its sales network review and adjustment plans[49] - The company will focus on cash management and maintain sufficient liquidity and working capital as part of its financial management policy in response to the challenging retail environment[59] - The company anticipates challenges in future growth for its e-commerce segment due to increasing competition among market participants[198] - The e-commerce business continues to be a major revenue channel for the company in the first half of fiscal year 2024[187] - The company is focusing on enhancing online operational capabilities through targeted marketing activities on platforms like Douyin and other new media channels[198]
时计宝(02033) - 2024 - 中期业绩