Hong Kong-based Symphony Holdings Limited reported overall revenue increased 13.2 percent year-over-year (YoY) to approximately HK$153.2 million in the first half ended June 30 and recorded an unaudited consolidated loss attributable to owners of the company of about HK$87.6 million for the six-month period, compared to an unaudited consolidated loss attributable to owners of the company of approximately HK$3.0 million for the prior-year period.

Symphony operates the Pony footwear brand in APAC countries, excluding China and Taiwan regions, with Iconix International, Inc., owns the trademark and patent of the compression wear brand Skins and runs the brand’s global business with Itochu Corporation through a joint venture.

The Branding segment, comprised of the Skins and Pony businesses, sourcing, manufacturing and trading of healthcare products in Hong Kong and distribution of Sunseeker swimwear, posted a 24.2 percent YoY increase for the first half period to approximately HK$27.2 million. The reportable segment loss for the H1 period was HK$12.9 million, compared to a reportable segment profit of approximately HK$121.2 million in the prior year period. The decrease in reportable segment profit was said to be mainly due to the absence of a one-off gain on the disposal of Pony brand business, which was included in other income and gains in the prior-year period.

The Retailing segment, which is comprised of the management and operation of outlet malls located in Xiamen, Shenyang and Anyang of the PRC, and investment properties, including commercial premises located in Hong Kong, Beijing and Shanghai of the PRC and community malls located in Chongqing and Tianjin of the PRC, posted a 14.8 percent YoY increase in revenue to HK$116.2 million in the first half. The reportable segment loss for the H1 period was approximately HK$29.7 million, compared to a reportable segment loss of approximately HK$26.4 million in the prior year period.

Symphony said the investment properties are held under either medium- or long-term leases and to earn rental income or capital appreciation.
The Financial Services segment continues to generate service income or interest income from the provision of securities brokerage, margin financing, money lending, underwriting and placing of listed securities and financial consultancy services in Hong Kong.

Financial Services segment revenue for the first half was approximately HK$9.8 million, a 20.3 percent YoY decrease versus the H1 period last year. The reportable segment loss for the H1 period amounted to approximately HK$9.6 million, compared to a reportable segment profit of approximately HK$5.9 million in the prior year period. The decrease in reportable segment profit was mainly due to the loss in fair value during the H1 period.

The gross profit margin for the H1 period was approximately 93.4 percent of sales, a 150 basis point improvement versus the prior-year period.
Other income and gains mainly comprised the reimbursement income of outlet malls. Other income and gains decreased 90.5 percent from approximately HK$161.4 million in the prior-year period to approximately HK$15.3 million for the current H1 period. The decrease was mainly due to the absence of a gain on disposal of intangible assets recorded in the prior-year period.

First half 2023 revenue from the PRC, Hong Kong and other Asian countries represented approximately 94.4 percent of total sales, compared to approximately 96.1 percent of total sales in the prior-year period. The remaining sales were generated in the U.K., the U.S. and other countries.

After the close of the H1 period, Symphony entered into a share sale and purchase agreement with Luxembourg Pony Holdings S.à r.l, a company incorporated in Luxembourg with limited liability and is a wholly-owned subsidiary of Iconix International, Inc., in relation to the 50 percent equity interest in Wisdom Class International Limited, a joint venture company incorporated in the British Virgin Islands with limited liability, and is owned as to 50 percent by Symphony and 50 percent by Luxembourg Pony, pursuant to which the company conditionally agreed to sell, and the Purchaser conditionally agreed to purchase the 50 percent equity interest in Wisdom Class. All conditions had been fulfilled and completion of the transfer of ownership of the 50 percent equity interest in Wisdom Class had taken place on July 5, 2023.

Looking ahead, the company said that as the macro-economic environment is still subject to several uncertainties, such as the debt and financing issues of China’s Real Estate industry and the weakening Renminbi, consumers will remain conservative in their attitude. The company firmly believes that the positive fundamentals of the market remain unchanged in the long run under the government’s support. In the future, the company said it will focus on improving operational efficiency while strengthening the core competitiveness of its retail and brand businesses.

Regarding retail business, the company said it would strengthen its collaborations with external partners to attract more young, emerging brands to join. In terms of branding, Symphony said it woul dfocus on key market development to deepen the market’s understanding of compression wear. In the face of favorable conditions of the economic recovery, the company said it would consolidate its strengths, capture opportunities and pursue sustainable business growth.

Photo courtesy Pony