香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Mulsanne Group Holding Limited 慕尚集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1817） 截至2023年6月30日止六個月之中期業績公告 財務摘要 • 截至2023年6月30日止六個月的總收入為人民幣1,085.3百萬元，較2022年 同期的人民幣1,048.6百萬元增加3.5%或人民幣36.7百萬元。 • 截至2023年6月30日止六個月的淨溢利為人民幣27.7百萬元，較2022年同 期人民幣4.2百萬元增加人民幣23.5百萬元。 • 由於(i)客戶的線下消費復甦，加上線下零售渠道的營運效率提高，(ii)成功 實行本集團的品牌推銷舉措，及(iii)零售折扣率及產品成本得到良好控制， 本集團截至2023年6月30日止六個月實現收入及淨溢利較2022年同期雙增 長。 慕尚集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公司 ...

Financial Performance - Total sales for 2022 amounted to RMB 2,326.3 million, a decrease of 13.7% from RMB 2,695.2 million in 2021[2] - Gross profit for the period was RMB 1,137.9 million, down 14.3% from RMB 1,327.9 million in 2021, with a stable gross margin of 48.9%[9] - Gross profit for 2022 was RMB 1,137.9 million with a gross margin of 48.9%, down from RMB 1,327.9 million and a gross margin of 49.3% in 2021[22] - Profit before tax rose to RMB 21.6 million from a loss of RMB 104.4 million in 2021, an increase of RMB 126.0 million[24] - Net profit for the period was RMB 9.4 million, a turnaround from a loss of RMB 91.3 million in 2021, representing an increase of RMB 100.7 million[25] - The main brand GXG's sales revenue decreased by 14.1% to RMB 1,847.4 million due to fluctuating COVID-19 conditions affecting product demand[77] - The sales revenue of gxg.kids increased by 10.5% or RMB 189 million compared to 2021, primarily due to increased online sales[57] - The sales revenue of gxg jeans and Yatlas decreased by 22.0% or RMB 616 million and 53.4% or RMB 117 million respectively, mainly due to recurring COVID-19 impacts and brand repositioning[59] Revenue Channels - Online channel sales decreased by 10.6% or RMB 122.8 million to RMB 1,036.2 million, accounting for 44.5% of total revenue[3] - The total number of offline stores decreased from 1,198 at the end of 2021 to 1,122 by December 31, 2022, reflecting a strategic adjustment in brand positioning and marketing[5] - The number of self-operated stores decreased to 393, while the number of partner stores and distributor stores also saw reductions, indicating a consolidation strategy[6] Expenses and Costs - Selling and distribution expenses decreased by 4.8% to RMB 883.5 million, while the percentage of total revenue increased from 34.5% in 2021 to 38.0% in 2022[18] - Administrative expenses decreased by 7.8% to RMB 205.1 million from RMB 222.5 million in 2021, representing 8.8% of total revenue compared to 8.3% in 2021[19] - Other expenses increased by 33.6% to RMB 20.3 million from RMB 15.2 million in 2021, primarily due to increased impairment of right-of-use assets and renovations[21] - Total employee costs for the period amounted to RMB 132.6 million, compared to RMB 146.4 million in 2021, representing a decrease of approximately 9.5%[123] - Employee costs accounted for 5.7% of the group's revenue during the period, slightly up from 5.4% in 2021[123] Cash Flow and Capital Expenditures - Operating cash inflow increased by RMB 67.0 million to RMB 244.7 million from RMB 177.7 million in 2021, driven by improved sales and inventory management[27] - Capital expenditures decreased by 25.8% to RMB 126.1 million from RMB 169.9 million in 2021, attributed to lower renovation costs[28] - Cash and cash equivalents increased by 101.1% to RMB 1,385.8 million from RMB 689.2 million in 2021[29] Debt and Liabilities - The debt-to-asset ratio increased to 50.3% from 35.0% in 2021, primarily due to changes in collateral for borrowings[30] - As of December 31, 2022, the group had no significant or contingent liabilities, consistent with the previous year[113] Strategic Initiatives - The company is implementing a series of effective growth strategies to stabilize performance in 2023, following the easing of COVID-19 restrictions in China[53] - The company aims to enhance internal management and cost control to mitigate the impacts of recurring COVID-19[54] - The integrated omnichannel business model aims to provide a seamless shopping experience, improving inventory and supply chain management[46] - The launch of the digital virtual space MetaGXG aims to enhance user experience and drive demand through innovative marketing strategies[50] - The company is focused on optimizing its leading supply chain network to adapt to changing consumer preferences and market conditions[51] - The company is committed to sustainable growth by continuously innovating marketing initiatives and exploring potential consumer groups[51] Governance and Compliance - The company has complied with relevant laws and regulations without any significant violations during the reporting period[161] - The board does not recommend the payment of any final dividend for the year ended December 31, 2022, considering operational performance and cash flow[143] - The board will reassess the dividend policy based on the group's operational performance and financial condition[143] Employee and Management - As of December 31, 2022, the total number of employees in the group was 603, down from 831 in 2021[123] - The group is focused on enhancing governance, promoting employee welfare, and achieving sustainable growth[161] - The group had a total of 603 employees as of December 31, 2022, and provided various training programs for operational departments[182] Shareholder Information - The major shareholder, Great World Glory Pte. Ltd., holds a beneficial ownership of 38.27%, equivalent to 363,579,785 shares[187] - Crescent Glory Singapore Pte. Ltd. holds a beneficial ownership of 14.15%, equivalent to 134,474,715 shares[187] - GXG Trading Limited has a beneficial ownership of 22.50%, amounting to 213,750,000 shares[187] Future Outlook - The outlook for 2023 is optimistic, with expectations of increased consumer mobility and economic activity recovery in China[72] - The company is confident in its prospects as a leading fashion company in China, leveraging its omnichannel strategy and online sales advantages[53]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚 賴該等內容而引致的任何損失承擔任何責任。 Mulsanne Group Holding Limited 慕尚集團控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1817） 截至2022年12月31日止年度之年度業績公告 財務摘要 • 截至2022年12月31日止年度的總收入為人民幣2,326.3百萬元，較截至2021 年12月31日止年度的人民幣2,695.2百萬元減少13.7%或人民幣368.9百萬 元。 • 截至2022年12月31日止年度的淨溢利為人民幣9.4百萬元，較截至2021年 12月31日止年度的淨虧損人民幣91.3百萬元增加淨溢利人民幣100.7百萬 元。 • 於2022年，2019新型冠狀病毒（「COVID-19」）疫情對本集團業務產生重大 影響。於此背景下，本集團加強內部管理及成本控制，採取審慎方法應對 所有開支，並更加注重客戶體驗。得益於該等努力，於2022年，本集團於 極其困難的環境下，成功實現淨溢利人民幣9 ...

Financial Performance - Total sales revenue for the six months ended June 30, 2022, was RMB 1,048.6 million, a decrease of 12.9% or RMB 155.8 million compared to RMB 1,204.4 million in the same period of 2021 due to recurring COVID-19 impacts in several cities [15]. - The total revenue for the group in the first half of 2022 was RMB 1,048.6 million, a decrease of 12.9% compared to RMB 1,204.4 million in the same period of 2021 [17]. - The main brand GXG's sales revenue decreased by 9.5% or RMB 87.9 million year-on-year, primarily due to a decline in product demand caused by COVID-19 outbreaks in several cities [17]. - Sales revenue for gxg jeans and Yatlas decreased by 32.9% or RMB 48.9 million and 58.5% or RMB 7.6 million, respectively, due to brand repositioning and store number reduction [18]. - Despite the impact of COVID-19, gxg.kids' sales revenue remained relatively stable at RMB 88.5 million, compared to RMB 88.1 million in the same period of 2021 [18]. - Mode Commuter's sales revenue increased by 65.9% or RMB 6.0 million, mainly due to new product development [18]. - The group's gross profit for the period was RMB 536.5 million, a decrease of 14.0% or RMB 87.3 million from RMB 623.8 million in the same period of 2021 [25]. - The overall gross margin remained relatively stable at 51.2%, compared to 51.8% in the same period of 2021 [25]. - Pre-tax profit decreased by RMB 55.1 million to RMB 16.8 million, primarily due to a reduction in gross profit [40]. - Net profit for the period was RMB 4.2 million, a decrease of RMB 44.0 million compared to RMB 48.2 million in the same period of 2021 [42]. - The company reported a total comprehensive loss of RMB 27,521 thousand for the period, compared to a comprehensive income of RMB 56,380 thousand in the same period last year [91]. - The profit attributable to equity holders of the parent for the six months ended June 30, 2022, was RMB 5,754,000, a significant decline of 88.2% from RMB 48,511,000 in the same period of 2021 [141]. Operational Strategies - The company aims to enhance customer experience through innovative marketing initiatives and new retail technologies, while optimizing its supply chain network to meet customer demands [13]. - The company is committed to integrating online and offline sales channels to improve operational efficiency and respond more quickly to market changes [13]. - The organization will continue to implement cost control measures to mitigate the impacts of recurring COVID-19 outbreaks [13]. - The company operates an integrated omnichannel business model, enhancing inventory management and supply chain efficiency [6]. - The company has a strong focus on data analysis from both online and offline channels to accurately gauge demand levels and adjust production plans accordingly [6]. - The management believes that performance will steadily recover in the second half of the year, supported by government policies and effective growth strategies implemented in response to COVID-19 [13]. - The company has introduced the MODE COMMUTER brand in 2020, expanding its brand portfolio to include high-quality commuter clothing [5]. Financial Position - The debt-to-asset ratio increased to 50.0% as of June 30, 2022, from 35.0% at the end of 2021, primarily due to increased borrowings [48]. - The company’s total equity attributable to owners of the parent as of June 30, 2022, was RMB 707,341,000, a decrease from RMB 814,714,000 as of June 30, 2021 [99]. - The company reported a decrease in cash and cash equivalents, with a closing balance of RMB 539,387,000 as of June 30, 2022, down from RMB 747,913,000 at the end of June 2021 [104]. - The company incurred a loss of RMB 12,570,000 related to impairment of trade and other receivables for the six months ended June 30, 2022, compared to a gain of RMB 8,331,000 in the same period of 2021 [101]. - The company’s accumulated losses reached RMB 765,498,000 as of June 30, 2022, compared to RMB 632,069,000 as of June 30, 2021, indicating a growing financial strain [99]. - The company’s total liabilities increased, with bank and other borrowings amounting to RMB 658,413,000 for the six months ended June 30, 2022, compared to RMB 500,407,000 in the same period of 2021 [104]. Employee and Management - As of June 30, 2022, the total number of employees in the group was 674, down from 831 on December 31, 2021 [59]. - Total employee costs for the period amounted to RMB 68.1 million, compared to RMB 70.2 million in the same period of 2021, representing a decrease of approximately 3% [59]. - Employee costs accounted for 6.5% of the group's revenue during the period, up from 5.8% in the same period of 2021 [59]. - The increase in employee cost percentage was primarily due to a greater decline in total revenue compared to the reduction in employee costs [59]. - The company emphasizes training and development to attract and retain employees, providing competitive compensation packages [59]. - The total remuneration for key management personnel was RMB 5,225,000 for the six months ended June 30, 2022, down from RMB 7,755,000 in the same period of 2021 [177]. Capital and Investments - The company raised approximately RMB 704.9 million (equivalent to about HKD 802.7 million) from the issuance of 200,000,000 new shares on May 27, 2019 [79]. - As of June 30, 2022, RMB 648.0 million (approximately HKD 736.2 million) of the raised funds have been utilized, with RMB 56.9 million (approximately HKD 66.5 million) remaining for future use [79]. - The company plans to allocate 45% of the raised funds (RMB 317 million) for debt repayment and brand expansion through acquisitions or strategic alliances [79]. - The company did not engage in any significant investments or acquisitions during the period, but will continue to seek new business development opportunities [51]. Market and Sales Channels - Revenue from offline channels was RMB 566,936 thousand, while online channels generated RMB 475,318 thousand, indicating a shift in sales channels [117]. - Online channel sales accounted for 45.3% of total revenue, despite a decrease of 1.8% or RMB 8.8 million compared to the previous year [22]. - The group adjusted its cooperation model with some customers from distributors to partner stores, resulting in a 5.8% increase in partner store sales to RMB 83.9 million [22]. - The company reported no single customer accounting for 10% or more of total revenue during the reporting period [120]. Compliance and Governance - The company has adhered to the principles of the Corporate Governance Code as per the listing rules during the six months ending June 30, 2022 [81]. - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the six months ending June 30, 2022 [84]. - The group has adopted revised International Financial Reporting Standards (IFRS) without significant impact on its financial position or performance due to the absence of relevant transactions during the reporting period [111][112][114].

Financial Performance - The group's gross margin reached 49.3%, an increase of nearly 16% compared to 2020, with total revenue close to RMB 2.7 billion[15]. - The total sales revenue for the period was RMB 2,695.2 million, a decrease of 5.8% or RMB 166.3 million compared to RMB 2,861.5 million in 2020[26]. - The main brand GXG recorded a sales revenue increase of 2.1% or RMB 44.9 million, reaching RMB 2,150.99 million in 2021[27]. - The total gross profit for the period was RMB 1,327.9 million, an increase of 8.4% or RMB 103.2 million compared to RMB 1,224.7 million in 2020, with a gross margin rising from 42.8% to 49.3%[43]. - The gross profit for the GXG brand was RMB 1,094.6 million with a gross margin of 50.9%, up from RMB 942.9 million and 44.8% in 2020[44]. - The net loss for the period was RMB 91.3 million, a decrease of RMB 207.9 million compared to a loss of RMB 299.2 million in 2020[61]. Sales and Revenue Channels - Sales revenue of the GXG brand increased by 2.1% compared to 2020, with a gross margin exceeding 50%[15]. - Revenue from self-operated, partnered, and distribution channels grew by over 10% year-on-year as of December 31, 2021[15]. - Online channel sales decreased by 22.6% or RMB 338.3 million to RMB 1,159.0 million, accounting for 43.0% of total revenue[33]. - Sales from gxg jeans, gxg.kids, and Yatlas decreased by 36.9% (RMB 164.2 million), 15.1% (RMB 32.0 million), and 28.0% (RMB 8.5 million) respectively due to brand repositioning and store number reduction[30]. Strategic Initiatives - The company adopted an integrated omnichannel business model, improving inventory and supply chain management efficiency[8]. - The company aims for international expansion and continues to seek collaborations with fashion IPs to penetrate niche markets[16]. - The company plans to continue implementing an omnichannel strategy and enhance online sales channels to adapt to the post-pandemic era[23]. - The company aims to optimize its supply chain network and improve customer service capabilities to meet customer demands[23]. - The company is focused on expanding its market presence and enhancing its product offerings through strategic partnerships and investments[96]. Organizational and Management Structure - The management team includes experienced professionals with over 21 years in finance and investment, enhancing strategic decision-making capabilities[91]. - The management team includes experienced professionals with extensive backgrounds in the apparel and entertainment industries, contributing to strategic decision-making[107][108][109]. - The board includes independent directors with extensive backgrounds in finance and corporate governance, ensuring robust oversight[97]. - The board's composition reflects a commitment to diversity and a range of industry experiences, which is crucial for navigating market challenges[97]. Employee and Operational Insights - Total employee costs for the period were RMB 146.4 million, representing 5.4% of the group's revenue, compared to 4.9% in 2020[80]. - As of December 31, 2021, the group employed 832 people, a decrease from 842 in 2020, with 61.8% being female[80]. - The company reported a total of 832 employees as of December 31, 2021, and provides competitive compensation packages including salaries, bonuses, and other benefits[160]. Capital and Financial Position - The registered capital of the company increased from RMB 200,000 during the year[10]. - The group's cash and cash equivalents totaled RMB 689.2 million, a decrease of 12.2% or RMB 95.5 million from RMB 784.7 million at the end of 2020[67]. - The debt-to-asset ratio as of December 31, 2021, was 35.0%, up from 32.3% at the end of 2020[68]. - Capital expenditures increased by 26.5% to RMB 169.9 million, driven by higher costs related to office renovations and information system development[66]. Risks and Challenges - The group is facing risks related to intense competition in the apparel industry in China and uncertainties regarding brand market recognition[116]. - The group faced foreign exchange risk primarily due to debt denominated in USD, with no financial instruments used for hedging[72]. Corporate Governance and Compliance - The group has committed to compliance with relevant laws and regulations, with no significant violations reported during the period[115]. - The group aims to enhance governance, promote employee welfare and development, protect the environment, fulfill social responsibilities, and achieve sustainable growth[115]. Future Outlook and Growth Strategies - The company expresses confidence in its future prospects as a leading fashion company in China[23]. - Future growth strategies include potential mergers and acquisitions to enhance market share and operational capabilities[96]. - The company is actively pursuing new technologies and product innovations to stay competitive in the market[96].

Financial Performance - Total sales revenue for the six months ended June 30, 2021, was RMB 1,204.4 million, an increase of 10.7% or RMB 116.9 million compared to RMB 1,087.5 million in the same period of 2020[12]. - Total revenue for the period reached RMB 1,204.43 million, an increase of 10.7% compared to RMB 1,087.54 million in the same period of 2020[14]. - Revenue from the main brand GXG increased by 20.3% to RMB 921.65 million, while gxg.kids saw an 18.7% increase to RMB 88.10 million[14]. - The gross profit for the period was RMB 623.83 million, representing a 48.2% increase from RMB 421.02 million in the same period of 2020, with a gross margin rising from 38.7% to 51.8%[25]. - Net profit for the period was RMB 48.2 million, an increase of RMB 180.7 million compared to a loss of RMB 132.5 million in the previous year[42]. - Pre-tax profit recorded at RMB 71.9 million, an increase of RMB 222.4 million compared to a pre-tax loss of RMB 150.5 million in the same period last year[40]. - The company reported a total comprehensive income of RMB 56,380 thousand for the period, compared to a loss of RMB 144,416 thousand in the previous year[90]. - Basic earnings per share for the period was RMB 5.32, compared to a loss per share of RMB (14.56) in the same period last year[88]. Sales Channels and Market Strategy - The impact of COVID-19 on the company's business has significantly reduced, leading to strong growth in offline channel revenue[10]. - The company is focused on integrating online and offline sales channels to meet evolving consumer shopping behaviors[10]. - Online channel sales decreased by 26.8% to RMB 484.08 million, accounting for 40.2% of total revenue, due to reduced reliance on online sales as COVID-19 impacts lessened[19]. - Revenue from offline channels for clothing products was RMB 710,126 thousand, while online channels generated RMB 484,078 thousand, indicating a strong performance in both segments[113]. Operational Efficiency and Cost Management - The organization structure and business model will be reformed to enhance operational efficiency and enable quicker market responses[10]. - The company implemented strategic adjustments to reduce discount rates and improve overall profitability across its brands[25]. - Sales and distribution expenses increased by 4.4% or RMB 18.2 million to RMB 428.3 million, with the percentage of total revenue decreasing from 37.7% to 35.6%[34]. - Administrative expenses rose by 10.9% or RMB 10.7 million to RMB 108.9 million, maintaining a stable percentage of total revenue at 9.0%[36]. Financial Position and Liquidity - The debt-to-asset ratio increased to 44.9% as of June 30, 2021, up from 32.3% at the end of 2020[48]. - Cash and cash equivalents increased by 0.9% to RMB 791.7 million compared to RMB 784.7 million at the end of 2020[47]. - Current liabilities decreased to RMB 1,329,287 thousand from RMB 1,472,422 thousand at the end of 2020, indicating improved liquidity[93]. - The company reported a decrease in trade receivables and other receivables by RMB 230,719,000, indicating improved cash collection[100]. - The company’s total liabilities decreased from RMB 379,436,000 at the end of 2020 to RMB 340,000,000 by June 30, 2021, indicating a reduction of approximately 10.4%[153]. Investments and Capital Expenditures - Capital expenditures amounted to RMB 67.4 million, a 29.9% increase or RMB 15.5 million compared to RMB 51.9 million in the same period last year[46]. - The company raised RMB 500,407,000 from bank and other borrowings during the financing activities, compared to RMB 550,000,000 in the same period of 2020[103]. - The company plans to use the remaining funds primarily for debt repayment (45% of total), brand acquisitions or strategic alliances (15%), and upgrading offline retail stores to smart stores (10%)[77]. Corporate Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[83]. - The company has complied with all applicable provisions of the Corporate Governance Code during the reporting period[79]. - The company plans to conduct annual training for all directors to enhance their understanding of their responsibilities and obligations as directors of a listed company[81]. Shareholder Information - As of June 30, 2021, the company had 950,000,000 issued ordinary shares[62]. - Mr. Yu Yong and Mr. Yang He Rong each hold a beneficial interest in 213,750,000 shares, representing 22.50% of the company's equity[60]. - Great World Glory Pte. Ltd. holds a beneficial interest in 363,579,785 shares, accounting for 38.27% of the company's equity[64]. - Crescent Glory Singapore Pte. Ltd. has a beneficial interest in 134,474,715 shares, which is 14.15% of the company's equity[64]. Employee and Management Compensation - Total employee costs for the period were RMB 70.2 million, up from RMB 50.9 million in the previous year, representing 5.8% of total revenue[58]. - The total compensation for key management personnel was RMB 7,755 thousand for the six months ended June 30, 2021, compared to RMB 4,561 thousand for the same period in 2020, reflecting an increase of approximately 70.5%[179]. - The company’s short-term employee benefits and pension plan contributions amounted to RMB 7,689 thousand for the six months ended June 30, 2021, compared to RMB 4,524 thousand for the same period in 2020, an increase of approximately 70.5%[179].

BETTER M E Mulsanne Group Holding Limited 慕尚集團控股有限公司 年 報 2020 （於開曼群島註冊成立的有限公司） 股份代號 : 1817 | --- | --- | --- | --- | |-------|-------|-------|--------------------------| | | | | 目錄 | | | 2 | | 公司介紹 | | | 3 | | 公司資料 | | | 4 | | 董事長致辭 | | | 6 | | 管理層討論與分析 | | | 15 | | 董事及高級管理層履歷詳情 | | | 20 | | 董事會報告 | | | 36 | | 企業管治報告 | | | 46 | | 獨立核數師報告 | | | 52 | | 綜合損益及其他全面收益表 | | | 54 | | 綜合財務狀況表 | | | 56 | | 綜合權益變動表 | | | 58 | | 綜合現金流量表 | | | 60 | | 財務報表附註 | | | 148 | | 五年財務概要 | BETTER M E 西 2020年年度報告 慕尚集團控股有限公司 2 公司介紹 ...

Financial Performance - Total sales revenue for the six months ended June 30, 2020, was RMB 1,087.5 million, a decrease of 35.5% or RMB 598.6 million compared to RMB 1,686.1 million in the same period of 2019[11]. - Total revenue for the period was RMB 1,087.5 million, a decrease of 35.5% from RMB 1,686.1 million in the same period of 2019[13]. - Revenue from the main brands GXG, gxg jeans, and gxg.kids decreased by 20.1%, 36.2%, and 79.8% respectively, totaling a decline of RMB 193.0 million, RMB 109.4 million, and RMB 293.8 million[13]. - Online channel sales increased by 17.7% to RMB 661.7 million, accounting for 60.8% of total revenue[20]. - Gross profit for the period was RMB 421.0 million, down 49.8% from RMB 838.1 million in the same period of 2019, with a gross margin decline from 49.7% to 38.7%[25]. - The pre-tax loss for the period was RMB 150.5 million, a decrease of RMB 296.8 million compared to a pre-tax profit of RMB 146.3 million in 2019, primarily due to reduced gross profit[38]. - The net loss for the period was RMB 132.5 million, a decrease of RMB 220.7 million compared to a profit of RMB 88.2 million in the same period of 2019[40]. - Total comprehensive loss for the period was RMB 144,416 thousand, compared to a comprehensive income of RMB 83,327 thousand in the previous year[87]. - The company reported a basic loss attributable to equity holders of the parent of RMB (132,878) thousand for the six months ended June 30, 2020, compared to a profit of RMB 89,670 thousand for the same period in 2019[138]. Operational Changes - The company plans to actively expand online sales channels, including live streaming and WeChat mini-programs, to adapt to the shift in consumer behavior from offline to online shopping due to COVID-19[10]. - The company aims to close underperforming offline stores to optimize the offline sales channel structure and use these stores to enhance brand image and customer experience[10]. - The total number of offline stores decreased from 1,737 at the end of 2019 to 1,476 by June 30, 2020, reflecting a strategic closure of underperforming stores[21]. - The number of self-operated stores decreased from 387 to 371, while partner stores decreased from 345 to 264[22]. - The company provided higher discounts across all brands to stimulate sales in response to COVID-19, impacting overall profitability[27]. - The company operates through two main sales channels: offline and online, with significant sales through platforms like Tmall, Taobao, and Vipshop[114]. Financial Position - The debt-to-asset ratio as of June 30, 2020, was 47.0%, up from 29.2% as of December 31, 2019[46]. - The total bank borrowings as of June 30, 2020, amounted to RMB 1,642.4 million, with cash and cash equivalents totaling RMB 979.9 million, an increase of 15.2% or RMB 129.5 million from RMB 850.4 million at the end of 2019[43]. - Current assets as of June 30, 2020, totaled RMB 2,986,821 thousand, down from RMB 3,348,684 thousand as of December 31, 2019[89]. - Current liabilities decreased to RMB 1,499,703 thousand from RMB 1,750,804 thousand at the end of 2019[89]. - Net assets decreased to RMB 892,009 thousand as of June 30, 2020, from RMB 1,036,425 thousand at the end of 2019[92]. - The company’s total liabilities decreased to RMB 1,642,350 thousand as of June 30, 2020, from RMB 1,140,242 thousand as of December 31, 2019, indicating a reduction in overall debt levels[161]. Cash Flow and Investments - Operating cash outflow for the period was RMB 244.0 million, a decrease of RMB 118.3 million compared to RMB 362.3 million in the same period of 2019[41]. - Capital expenditures for the period were RMB 51.9 million, a decrease of 35.8% or RMB 29.0 million from RMB 80.9 million in 2019[42]. - The cash flow from operating activities for the six months ended June 30, 2020, was a net outflow of RMB 244,012,000, an improvement from a net outflow of RMB 362,251,000 in the same period of 2019[97]. - The company invested RMB 48,904,000 in property, plant, and equipment during the six months ended June 30, 2020, down from RMB 72,455,000 in the same period of 2019[99]. Shareholder Information - Major shareholder Great World Glory Pte. Ltd. holds 38.27% of the company's shares, totaling 363,579,785 shares[62]. - The company has a total of 950,000,000 issued ordinary shares as of June 30, 2020[60]. - The company did not recommend any interim dividend for the period[74]. - The company has adopted a Restricted Stock Unit Plan to incentivize and retain skilled personnel for future development and expansion[69]. - No Restricted Stock Units were granted or agreed to be granted during the six months ended June 30, 2020[72]. Legal and Compliance Matters - The company received a letter claiming the termination of a joint venture agreement and a demand for RMB 50 million in damages, which the company intends to vigorously contest[55]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and risk management[80]. - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2020[77]. Employee and Management - As of June 30, 2020, the total employee cost was RMB 50.9 million, down from RMB 56.8 million in the same period of 2019, representing an increase in employee cost as a percentage of revenue from 3.4% to 4.7%[56]. - The company had 797 employees, a decrease from 811 employees as of December 31, 2019[56]. - The total remuneration for key management personnel was RMB 4,561,000 (unaudited) for the six months ended June 30, 2020, compared to RMB 2,830,000 for the same period in 2019, reflecting a significant increase[171].

Financial Performance - The total sales revenue for the year ended December 31, 2019, was RMB 3,721.4 million, a decrease of 1.7% or RMB 65.6 million compared to RMB 3,787.0 million in 2018[18]. - The revenue from the main brand GXG decreased by 6.0% or RMB 149.1 million, while gxg jeans revenue decreased by 13.8% or RMB 104.3 million[18]. - Revenue from gxg.kids increased by 54.4% or RMB 210.8 million, primarily due to a one-time buyout by a national distributor[18]. - Online sales revenue increased by 5.6% or RMB 75.5 million to RMB 1,425.8 million, accounting for 38.3% of total revenue[23]. - The number of self-operated and partner stores decreased significantly due to the closure of underperforming stores, leading to a 22.8% decrease in self-operated store sales[22]. - Gross profit for the period was RMB 1,798.7 million, down 11.5% from RMB 2,032.2 million in 2018, with a gross margin decline from 53.7% to 48.3%[30]. - Operating cash flow decreased by 76.5% to RMB 47.9 million, down from RMB 203.5 million in 2018[44]. - Other income and gains fell by 18.3% to RMB 52.6 million, compared to RMB 64.4 million in 2018[35]. - The pre-tax profit decreased by 36.4% to RMB 322.9 million, down from RMB 507.7 million in 2018[39]. - Net profit for the period was RMB 208.2 million, a decrease of 44.4% from RMB 374.5 million in 2018[43]. Strategic Initiatives - The company expanded its smart stores to over 120 locations, achieving a product order-to-delivery time of as fast as 7 days through RFID technology and flexible supply chain management[9]. - The company adopted a multi-brand international development strategy, focusing on niche markets and partnerships with fashion IP brands[11]. - The integration of new retail channels helped mitigate inventory pressure and adapt to diversified consumer preferences[9]. - The company continues to leverage big data-driven new retail marketing models to enhance operational efficiency[9]. - The company aims to enrich its product offerings to meet the diverse fashion needs of consumers across various lifestyle scenarios[11]. - The company plans to actively expand social e-commerce channels and enhance its competitive advantage in traditional online channels like Tmall, Taobao, and Vipshop[16]. - The company aims to develop new product combinations and brand matrices through a multi-brand strategy to improve operational capabilities[16]. - The company seeks opportunities to collaborate with popular fashion brands to launch more attractive co-branded products[16]. - The company will continue to enhance its supply chain system to improve service capabilities and meet customer demands[16]. Market and Customer Engagement - The total number of fans reached 13.5 million, significantly improving customer experience through social e-commerce[9]. - The company collaborated with nearly 20 fashion IP brands, enhancing customer loyalty and engagement[11]. - The group reported that the revenue from the top five customers accounted for 19.3% of total revenue for the year ended December 31, 2019, up from 11.2% in 2018[91]. - The largest customer contributed 8.5% to total revenue, an increase from 5.2% in 2018[91]. Corporate Governance and Management - The company adopted the corporate governance code as its own governance code after listing on May 27, 2019[170]. - The board consists of nine members, including one executive director and five non-executive directors, ensuring a balance of skills and experience[172]. - The company has established three main board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee[190]. - The chairman of the board and the CEO roles are held by different individuals, ensuring effective independence[174]. - The company received written confirmations of independence from all independent non-executive directors, affirming their status as independent individuals[182]. - The Audit Committee consists of three independent non-executive directors, with Mr. Gu as the chairman, and held one meeting to review the company's 2019 interim results announcement and report[191]. Future Outlook - The company expresses confidence in its future prospects, anticipating a recovery in public consumption power due to government support policies[16]. - The company provided guidance for the next fiscal year, projecting revenue growth of 25% to $625 million[66]. - New product launches are expected to contribute an additional $50 million in revenue, with a focus on expanding the product line in the luxury segment[66]. - Market expansion plans include entering three new international markets, projected to generate $100 million in additional revenue over the next two years[66]. - The company is considering strategic acquisitions to bolster its market position, with a budget of $200 million allocated for potential deals[66]. Risks and Challenges - The group faced significant risks related to competition in the apparel industry and brand market recognition[87]. - The group is closely monitoring the impact of COVID-19 on its operations, particularly on offline sales channels and online transaction processes[89]. - The assessment of COVID-19's impact on financial performance is ongoing, with no reasonable estimate available at this time[90]. Employee and Social Responsibility - The total employee cost for the period was RMB 112.4 million, accounting for 3.0% of the group's revenue, down from 3.8% in 2018[56]. - The total number of employees as of December 31, 2019, was 811, with competitive compensation and training programs in place[118]. - The company made charitable donations of RMB 50,000, compared to none in 2018[108]. - The management team emphasized a commitment to sustainability, aiming for a 30% reduction in carbon footprint by 2025[66].

Revenue Performance - The total sales revenue for the six months ended June 30, 2019, was RMB 1,686.1 million, an increase of 10.6% or RMB 161.9 million compared to RMB 1,524.2 million in the same period of 2018[10]. - The revenue breakdown by brand shows that the GXG series generated RMB 959.4 million (56.9% of total revenue), while gxg jeans and gxg.kids contributed RMB 302.2 million (17.9%) and RMB 368.0 million (21.8%) respectively[11]. - The company reported a significant increase in revenue from gxg.kids, which rose to RMB 368.0 million from RMB 167.1 million, reflecting a growth of 120.5%[11]. - Revenue for the six months ended June 30, 2019, was RMB 1,686,099 thousand, an increase from RMB 1,524,171 thousand in the same period of 2018, representing a growth of approximately 10.6%[80]. - Revenue from offline channels was RMB 1,118,238 thousand, while online channels generated RMB 562,367 thousand, contributing to a total segment performance of RMB 838,106 thousand[130]. - Revenue from external customers in mainland China was RMB 1,682,252 thousand, compared to RMB 1,520,040 thousand in the previous year, indicating a year-on-year increase of about 10.7%[132]. Profitability - Gross profit for the period was RMB 838.1 million, a decrease of 1.4% or RMB 11.6 million compared to RMB 849.7 million in the same period last year, with a gross margin decline from 55.7% to 49.7%[24]. - Profit before tax for the period was RMB 146.3 million, a decrease of 14.0% or RMB 23.8 million from RMB 170.1 million in 2018, primarily due to a reduction in gross profit and other income[35]. - Net profit for the period was RMB 88.2 million, down 17.9% or RMB 19.2 million from RMB 107.4 million in the same period of 2018[38]. - The total comprehensive income for the period was RMB 84,825 thousand as of June 30, 2019, compared to RMB 100,257 thousand for the same period in 2018, indicating a decline of approximately 15%[90]. Expenses and Costs - Total sales and distribution expenses for the period amounted to RMB 542.0 million, a slight decrease from RMB 544.4 million in the same period of 2018, representing 32.1% of total revenue compared to 35.7% in 2018[31]. - Administrative expenses totaled RMB 117.0 million, down from RMB 118.6 million in 2018, accounting for 6.9% of total revenue, a decrease from 7.8% in the previous year[32]. - The cost of goods sold for the period was RMB 817,310 thousand, compared to RMB 641,514 thousand in the previous year, representing a 27.4% increase[139]. Cash Flow and Financial Position - Operating cash flow net outflow was RMB 362.3 million, a decrease of 4.1% or RMB 15.3 million from RMB 377.6 million in 2018[39]. - The cash flow from operating activities for the six months ended June 30, 2019, was a net outflow of RMB 362,251 thousand, compared to a net outflow of RMB 377,584 thousand for the same period in 2018, showing an improvement in cash flow management[92]. - The company reported a decrease in cash and cash equivalents of RMB (285,188) thousand for the six months ended June 30, 2019, compared to a decrease of RMB (222,810) thousand in the same period of 2018[94]. - As of June 30, 2019, total bank borrowings amounted to RMB 1,305.5 million, with cash and cash equivalents totaling RMB 776.0 million, an increase of 12.9% or RMB 88.5 million from the end of 2018[41]. - The debt-to-asset ratio as of June 30, 2019, was 37.7%[42]. Shareholder Information - As of June 30, 2019, the company had 950,000,000 issued ordinary shares[63]. - Great World Glory Pte. Ltd. and its controlled entities collectively hold 363,579,785 shares, representing 38.27% of the total shares[58]. - Crescent Glory Singapore Pte. Ltd. holds 134,474,715 shares, accounting for 14.15% of the total shares[58]. - GXG Trading Limited owns 213,750,000 shares, which is 22.50% of the total shares[58]. - The company raised approximately RMB 704.9 million (equivalent to about HKD 802.7 million) from the issuance of 200,000,000 new ordinary shares[68]. Strategic Initiatives - The company aims to enhance operational capabilities by further integrating online and offline new retail channels and developing new product combinations through a multi-brand strategy[9]. - The company plans to seek collaboration opportunities with popular clothing brands to launch more attractive co-branded products[9]. - The company is committed to improving customer experience through innovative marketing strategies and leveraging new retail technologies[9]. - The company is focused on further developing its leading supply chain system to enhance service capabilities across the industry[9]. Market Position - The company’s market share in the Chinese fashion menswear market was approximately 3.3% in 2018, ranking second nationally[3]. - The company is recognized as a leader in the integration of new retail initiatives among major fashion brands in China[4]. Store Operations - The number of stores decreased from 2,250 at the end of 2018 to 2,139 by June 30, 2019, due to the closure of underperforming stores[21]. - The number of self-operated stores decreased by 37.5% from 720 to 447, while the number of distributor stores increased significantly[22]. - The gross margin for self-operated stores decreased to 65.3%, down 4.7 percentage points from the previous year, primarily due to increased promotional efforts[29]. Financial Reporting and Compliance - The financial statements were prepared in accordance with International Accounting Standards (IAS) 34, and the figures are presented in thousands of RMB[99]. - The company adopted new and revised International Financial Reporting Standards (IFRS) effective January 1, 2019, impacting the accounting for leases[100]. - The group continues to apply IFRS 9 for long-term interests in associates and joint ventures, with no significant impact on the interim financial data[124]. - The group has adopted the interpretation of uncertain tax treatments under IAS 12, concluding that there are no significant impacts on the interim financial data[125].