Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 65,050,000, a decrease of 12.3% compared to HKD 74,356,000 for the same period in 2023[4] - The net loss for the period was HKD 26,662,000, compared to a loss of HKD 19,011,000 in the previous year, indicating a 40.3% increase in losses[4] - Basic and diluted loss per share was HKD 0.02, compared to HKD 0.01 for the same period in 2023[4] - The company reported a comprehensive loss of HKD 24,774,000 for the period, compared to a comprehensive loss of HKD 18,974,000 in the previous year[5] - The company reported a net loss attributable to equity holders of HKD 27,260,000 for the six months ended June 30, 2024, compared to a loss of HKD 17,493,000 in the same period of 2023[36] - The group's consolidated revenue for the first half of 2024 was approximately HKD 65,100,000, a decrease of about HKD 9,300,000 or 12.5% compared to the first half of 2023[69] - The loss attributable to equity holders of the company for the first half of 2024 was approximately HKD 27,300,000, an increase of about HKD 9,800,000 or 56.0% compared to the first half of 2023[75] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 255,235,000, compared to HKD 173,403,000 as of December 31, 2023, showing a significant increase[6] - Total liabilities increased to HKD 415,556,000 from HKD 253,134,000, indicating a rise in financial obligations[6] - The company's equity attributable to shareholders decreased to HKD 100,770,000 from HKD 125,544,000, reflecting a decline of 19.8%[9] - Cash and cash equivalents decreased to HKD 13,188,000 from HKD 24,307,000 year-over-year[13] - The company had a net current liability of HKD 160,321,000 as of June 30, 2024[17] - Total bank borrowings amounted to HKD 81,000,000, with repayments of HKD 81,397,000 during the period[13] - The company's total liabilities were HKD 297,820,000 as of June 30, 2024[26] - As of June 30, 2024, the total value of assets classified as held for sale is HKD 177,000,000, compared to zero on December 31, 2023[41] Cash Flow and Financial Management - Operating cash flow was negative at HKD 2,373,000 compared to negative HKD 6,584,000 in the previous year[13] - The company recorded a decrease in cash flow from investing activities to HKD 9,967,000 from HKD 61,160,000 year-over-year[13] - The company plans to improve profitability by controlling operating costs and reducing capital expenditures[17] - There is a commitment from the parent company to provide ongoing financial support for at least the next 12 months[17] - The management's cash flow forecast covers at least 18 months starting from June 30, 2024, based on key assumptions regarding operational cash flows and available financing[18] - The company expects to have sufficient financial resources to continue operations based on the management's forecasts and ongoing financial support from related parties[18] Segment Performance - The company operates in three segments: department store business, securities trading, and other services including property leasing and insurance[22] - The performance of each operating segment is assessed based on adjusted profit or loss before tax, excluding certain interest income and expenses[22] - The department store business recorded revenue of approximately HKD 65,300,000 in the first half of 2024, a decrease of about 12.1% compared to the first half of 2023[76] Legal and Compliance Matters - The company is currently reviewing the implications of a claim regarding the invalidation of a contract, which may affect its operations and financial position[63] - The company has received legal advice confirming that the agreement with Win Dynamic is enforceable and that it holds legal and contractual rights to the proceeds[67] - The company and Wei Lu have filed a revised claim against Win Dynamic, asserting that the agreement is valid and binding[66] - The High Court has issued a temporary injunction preventing Win Dynamic from disposing of its assets in Hong Kong, limited to the value of the proceeds[65] - The company has engaged in legal proceedings against Win Dynamic regarding the cancellation of the agreement, which is deemed to be in the best interest of the company and its shareholders[65] Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with it during the first half of 2024[93] - The audit committee, consisting of three independent non-executive directors, reviewed the group's accounting principles and the unaudited interim financial statements for the first half of 2024[94] - The company has confirmed compliance with the standards set out in the securities trading code during the first half of 2024[92] Other Financial Metrics - The financial costs for the period were HKD 14,275,000, an increase from HKD 12,667,000, indicating a rise of 12.7%[4] - Other income and gains for the period were HKD 10,368,000, up from HKD 9,277,000, representing an increase of 11.7%[4] - The company's expected credit loss provision increased to HKD 1,737,000 as of June 30, 2024, compared to HKD 1,111,000 at the end of 2023[39] - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[37] - The group anticipates continued challenges in the retail sector due to weak consumer spending and the rising trend of online shopping[78]
先施(00244) - 2024 - 中期财报