Financial Performance - Revenue for the six months ended September 30, 2024, was HKD 50,571,000, a decrease of 21.7% compared to HKD 64,620,000 in the same period of 2023[17] - The gross profit for the period was HKD 41,572,000, down from HKD 50,685,000, reflecting a gross margin decline[17] - The operating loss for the period was HKD 21,101,000, compared to an operating loss of HKD 12,649,000 in the previous year, indicating a worsening operational performance[17] - The net loss attributable to shareholders was HKD 23,605,000, compared to HKD 15,283,000 in the same period last year, representing a 54.5% increase in losses[11] - Basic loss per share for the period was HKD 0.08, compared to HKD 0.05 in the previous year, indicating a decline in shareholder value[18] - The total comprehensive loss for the period was HKD 18,696,000, compared to HKD 17,980,000 in the same period last year, indicating ongoing financial challenges[18] - The company recorded a pre-tax loss of HKD 23,943 thousand for the six months ended September 30, 2024, compared to a pre-tax loss of HKD 12,171 thousand in the same period of 2023, reflecting a worsening of approximately 96%[39] - The company experienced a significant decline in segment profit, reporting a loss of HKD 3,758 thousand for the six months ended September 30, 2024, compared to a profit of HKD 9,748 thousand in the same period of 2023[39] - The company reported a net cash inflow from operating activities of HKD 1,361 thousand for the six months ended September 30, 2024, compared to HKD 6,028 thousand in the same period of 2023, representing a decrease of approximately 77.6%[34] Assets and Liabilities - Total assets less current liabilities amounted to HKD 462,486,000, down from HKD 493,206,000 as of March 31, 2024[31] - The company's net asset value was HKD 380,239,000, a decrease from HKD 398,935,000 as of March 31, 2024[31] - Cash and cash equivalents at the end of the period were HKD 11,336,000, compared to HKD 23,558,000 at the end of the previous period, indicating a liquidity squeeze[31] - The group’s net current liabilities increased to HKD 50 million as of September 30, 2024, compared to HKD 24 million on March 31, 2024[90] - The capital debt ratio was approximately 23.7% as of September 30, 2024, slightly up from 23.5% on March 31, 2024[90] Revenue Breakdown - Revenue in Hong Kong decreased by 25% year-on-year to approximately HKD 29,000,000[49] - Revenue in mainland China fell by 10% to approximately HKD 13,000,000 due to declining consumer demand and currency depreciation[49] - Revenue in Macau dropped by 34% to approximately HKD 5,000,000, impacted by store relocations and closures[49] - Overall revenue decreased by 22% year-on-year to approximately HKD 51,000,000[70] - Revenue from the Hong Kong business decreased by 25% year-on-year to HKD 29,394,000 for the first nine months of 2024, with visitor numbers at 69.69% of pre-pandemic levels[104] - Revenue from the domestic business declined by 10% year-on-year to HKD 13,115,000, impacted by a weak RMB and cautious consumer attitudes[109] - The Macau business revenue dropped by 34% to HKD 4,593,000 during the period, following the relocation of the MOISELLE retail store[113] - The group’s revenue from Taiwan operations slightly decreased to approximately HKD 3,469,000, accounting for about 7% of total revenue during the period[131] Cash Flow and Financing - The company reported a net cash outflow from investing activities of HKD 1,911 thousand for the six months ended September 30, 2024, compared to a net cash inflow of HKD 16,052 thousand in the same period of 2023[34] - The cash flow from financing activities resulted in a net cash outflow of HKD 11,648 thousand for the six months ended September 30, 2024, compared to a net cash outflow of HKD 3,572 thousand in the same period of 2023[34] - The company reported a decrease in cash and cash equivalents due to a net decrease of HKD 12,198 thousand during the period, compared to an increase of HKD 18,508 thousand in the same period of 2023[34] - As of September 30, 2024, the group's cash and bank deposits totaled approximately HKD 11,000,000, down from HKD 24,000,000 as of March 31, 2024[115] - The group secured a total bank financing of approximately HKD 84,000,000 as of September 30, 2024, an increase from HKD 73,000,000 as of March 31, 2024[115] - The group obtained bank loans of HKD 58,000,000 for operational funding, up from HKD 51,000,000 as of March 31, 2024[115] Business Strategy and Market Conditions - The company noted that economic downturn and bleak employment and business outlooks have negatively impacted consumer confidence, leading to challenges in the apparel retail market[46] - The company is actively expanding its customer base through promotions on social media platforms like Xiaohongshu and participating in mall promotional activities[71] - The company continues to reposition its main brand MOISELLE to cater to the preferences of younger consumers[71] - The group operates in the luxury and mid-range apparel market, with a total of 31 retail stores as of September 30, 2024, down from 32 stores on March 31, 2024[76] - The group continues to develop its e-commerce business, utilizing platforms like Xiaohongshu to expand its quality customer base[80] - The group is closely monitoring economic conditions and fashion trends to adjust its business strategies accordingly[88] - The company plans to further develop its e-commerce business and explore more technology in fashion design and garment processing to enhance operational efficiency[114] - The company is actively expanding its retail network in Hong Kong in prime locations while maintaining a focus on enhancing store performance[102] - The company has partnered with four local e-commerce platforms to develop its online sales channels[112] Corporate Governance - The company has established an audit committee to oversee financial reporting and risk management, consisting of three independent non-executive directors[150] - The roles of the chairman and CEO are currently held by the same individual, which the board believes ensures effective leadership and operational efficiency[144] - The company has reviewed its accounting principles and practices with the management team for the six months ending September 30, 2024[145] - The major shareholders, Super Result, hold approximately 65.99% of the company's equity, with both Mr. Chen and Ms. Xu each owning 46.7%[121] Dividends and Shareholder Returns - The company did not declare an interim dividend for the year ending March 31, 2025, compared to no dividend declared for the year 2024[43] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[143]
慕诗国际(00130) - 2025 - 中期财报