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旷世芳香(01925) - 2020 - 中期财报
2020-09-25 14:43
Financial Performance - The Group's revenue and net profit decreased during the six months ended June 30, 2020, due to the impact of COVID-19 on customer demand[29]. - Revenue decreased by approximately RMB56.6 million or 26.2% to approximately RMB159.7 million for the six months ended 30 June 2020 from approximately RMB216.3 million for the same period in 2019[37]. - Gross profit decreased by approximately RMB9.5 million or 17.8% to approximately RMB44.1 million for the six months ended June 30, 2020 from approximately RMB53.6 million for the same period in 2019[39]. - Operating profit decreased to RMB 5,734,000, a decline of 41.8% from RMB 9,792,000 in the previous year[142]. - Profit for the period was RMB 4,319,000, representing a 43.1% decrease from RMB 7,606,000 in 2019[142]. - The total comprehensive income attributable to owners of the Company was RMB 4,414,000, down from RMB 7,630,000 in 2019[144]. - Basic and diluted earnings per share for profit attributable to owners of the Company was 1.1 cents, compared to 2.5 cents in 2019[144]. Impact of COVID-19 - The COVID-19 outbreak has led to some customers requesting shipment postponements and cancellations of purchase orders[29]. - The Group has maintained good communication with existing customers, anticipating a resumption of suspended purchase orders once the COVID-19 situation stabilizes, particularly in the European market[30]. - Precautionary measures due to COVID-19 have included travel restrictions, quarantine measures, and heightened hygiene requirements in factories and offices[28]. - The Group's financial performance for the six months ended June 30, 2020, reflects the impact of COVID-19[29]. - The Group is optimistic about future performance despite the current challenges, due to strong customer relationships[30]. - The Group's business model as an original design manufacturer and supplier positions it well for recovery post-COVID-19[27]. Sales and Marketing - The number of retail stores increased to 19, with store sales revenue increasing by 9.9 times compared to the same period last year[35]. - Online sales revenue increased by 3.6 times compared to the same period last year[35]. - Sales and marketing expenses increased by approximately RMB3.7 million or 125.8% to approximately RMB6.7 million for the six months ended June 30, 2020, primarily due to additional advertising costs for promoting online direct sales channels and costs related to setting up online showrooms in response to COVID-19[51]. - The Group aims to continue promoting brand expansion strategy and optimizing product layout to improve market coverage[36]. Assets and Liabilities - Total assets increased to RMB 371,864,000 as of June 30, 2020, compared to RMB 274,545,000 as of December 31, 2019, representing a growth of 35.5%[148]. - Current assets rose significantly to RMB 302,394,000, up from RMB 203,000,000, marking an increase of 48.9%[148]. - Total liabilities decreased to RMB 61,798,000 from RMB 75,825,000, a reduction of 18.5%[151]. - The Group's inventory balance increased by approximately RMB6.8 million or 16.0% to approximately RMB49.5 million as of June 30, 2020, due to increased stock levels of raw materials for upcoming production plans[67]. - Trade receivables decreased by approximately RMB3.5 million or 5.4% to approximately RMB62.3 million as of June 30, 2020, primarily due to the postponement or cancellation of some purchase orders by overseas customers as a result of COVID-19[68]. Cash Flow and Financing - Cash and cash equivalents surged to RMB 138,257,000, a substantial increase from RMB 67,843,000, reflecting a growth of 103.5%[148]. - Net cash used in operating activities for the six months ended June 30, 2020, was RMB (14,415) thousand, compared to RMB (11,532) thousand for the same period in 2019, indicating a decline in operational cash flow[160]. - Net cash generated from financing activities was RMB 115,443 thousand for the six months ended June 30, 2020, slightly down from RMB 119,479 thousand in the previous year[162]. - The company reported a net cash used in investing activities of RMB (34,458) thousand, a decrease from RMB (138,382) thousand in the prior year, indicating reduced investment outflows[162]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code throughout the period from the Listing Date to June 30, 2020[96]. - The company raised a net amount of approximately RMB 84.1 million from its IPO, after deducting listing expenses[109]. - The company has a share option scheme effective for ten years starting from January 16, 2020, to incentivize eligible participants[127]. Future Plans and Investments - The company plans to strengthen its R&D capabilities and expand its market presence in Europe by the end of 2022[109]. - The establishment of two regional sales offices in Europe has been allocated RMB 18.846 million, which is fully utilized by the end of 2022[109]. - RMB 10.348 million has been allocated to strengthen research and development capabilities, expected to be fully utilized by the end of the first half of 2022[109]. - The company upgraded its information system and logistics capacities with an allocation of RMB 7.067 million, with RMB 6.381 million utilized by the end of 2022[109]. Financial Risk Management - The Group's financial risk management focuses on minimizing potential adverse effects on financial performance due to credit risk, liquidity risk, and foreign exchange risk[171]. - The Group's capital management aims to provide returns for owners and benefits for stakeholders while reducing the cost of capital[173]. - The Group's objectives in capital management include safeguarding the ability to continue as a going concern and maintaining an optimal capital structure[173].
旷世芳香(01925) - 2019 - 年度财报
2020-04-29 10:36
Financial Performance - The company achieved sustainable revenue and profit growth in 2019, despite challenges such as fluctuating RMB exchange rates and rising production costs[17]. - The company's revenue increased from approximately RMB 444.7 million in the year ended December 31, 2018, to approximately RMB 501.1 million in the year ended December 31, 2019, representing a growth of about RMB 56.4 million or 12.7%[22]. - Gross profit rose from approximately RMB 107.0 million to approximately RMB 133.7 million, an increase of about RMB 26.7 million or 24.9%[23]. - The gross profit margin improved from approximately 24.1% to 26.7%, primarily due to the appreciation of the US dollar against the RMB[23]. - Operating profit decreased to RMB 32,963 thousand from RMB 88,881 thousand in 2018, reflecting a decline of approximately 62.9%[146]. - Net profit for the year was RMB 27,810 thousand, down from RMB 77,051 thousand in 2018, representing a decrease of around 63.8%[146]. - The group's income tax expense decreased from approximately RMB 118 million for the year ended December 31, 2018, to approximately RMB 48 million for the year ended December 31, 2019, a reduction of 59.5%[29]. - Adjusted profit before tax for the year ended December 31, 2019, was RMB 50.684 million, compared to RMB 51.495 million for the year ended December 31, 2018[33]. - Adjusted profit for the year ended December 31, 2019, was RMB 45.263 million, slightly down from RMB 45.335 million for the year ended December 31, 2018[33]. Expenses and Costs - Administrative expenses increased from approximately RMB 47.8 million to approximately RMB 70.3 million, a rise of about RMB 22.5 million or 47.2%[25]. - Sales and marketing expenses grew from approximately RMB 6.9 million to approximately RMB 8.6 million, an increase of about RMB 1.7 million or 24.1%[26]. - Financial costs rose from approximately RMB 0.2 million to approximately RMB 0.5 million, an increase of about RMB 0.3 million or 219.3%[27]. - Other income decreased from approximately RMB 5.9 million to approximately RMB 1.9 million, a decline of about RMB 4.0 million or 67.3% due to the absence of rental income[24]. Market Strategy and Expansion - The company plans to expand its overseas market share and export volume while enhancing sales scale and brand influence in the Chinese market[17]. - The company aims to implement a comprehensive logistics strategy and establish overseas marketing companies to integrate cooperation with foreign distributors and retail chains[17]. - The company intends to create a network of brand stores in key cities and expand online sales channels[17]. - The company is focusing on developing high-end products and recruiting senior marketing talent to improve operational efficiency[18]. - The company recognizes the opportunities presented by the growing demand for high-end health and leisure products in the domestic market[17]. - The company plans to expand its retail presence in China, currently operating 12 stores, and seeks to establish more stores in other countries, including Australia[42]. - Future plans include establishing physical stores overseas to enhance market penetration and improve service quality, expanding production facilities, and strengthening R&D capabilities[43]. Governance and Management - The management team includes experienced professionals with over 15 years in finance and accounting, ensuring robust oversight of investment and compliance matters[62][63]. - The independent non-executive directors bring over 18 years of experience in accounting, auditing, and financial management, enhancing corporate governance[54][60]. - The company emphasizes the importance of independent opinions in board decisions, ensuring transparency and accountability[54][60]. - The company has established a strong governance framework, with independent directors providing critical oversight and strategic direction[54][60]. - The board includes members with extensive backgrounds in various sectors, including legal, banking, and investment, contributing to diverse strategic insights[61][62]. - The company is committed to maintaining high standards of corporate governance and compliance, reflecting its dedication to stakeholder interests[62][64]. Financial Position and Assets - Total assets as of December 31, 2019, were RMB 274,545 thousand, a decrease from RMB 410,718 thousand in 2018, indicating a decline of approximately 33.1%[150]. - Total liabilities decreased to RMB 75,825 thousand from RMB 239,817 thousand in 2018, reflecting a reduction of about 68.4%[150]. - Cash and cash equivalents as of December 31, 2019, were RMB 67,843 thousand, down from RMB 92,611 thousand in 2018, a decrease of approximately 26.8%[148]. - The company's equity attributable to owners increased to RMB 198,720 thousand from RMB 170,901 thousand in 2018, representing a growth of about 16.3%[150]. Audit and Compliance - The company reported a comprehensive financial statement for the year ending December 31, 2019[64]. - The company's consolidated financial statements for the year ended December 31, 2019, were audited by PwC, and a resolution will be proposed at the upcoming annual general meeting to reappoint them as auditors[92]. - The Audit Committee is responsible for overseeing the relationship with external auditors, including recommending their appointment and reviewing their remuneration[103]. - The Audit Committee monitors the integrity of financial statements and reviews significant judgments made in financial reporting[104]. - The auditor's goal is to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error[138]. - The auditor identified and assessed risks of material misstatement and designed audit procedures to address these risks[139]. Shareholder Information - No dividends were recommended for the year ending December 31, 2019[67]. - As of December 31, 2019, the company's distributable reserves were approximately RMB 163,681,000[71]. - The board will consider factors such as operational performance, cash flow, financial condition, and future business prospects when deciding on dividend payments[120]. - The company has the discretion to declare dividends in cash or in shares, subject to applicable laws and regulations[122]. Employee and Compensation - The total salary and related costs for employees amounted to approximately RMB 54.2 million for the year ending December 31, 2019[84]. - The company had 505 employees as of December 31, 2019[84]. - The Remuneration Committee is tasked with establishing and reviewing the remuneration policy for directors and senior management, ensuring transparency in the process[114]. Inventory and Receivables - Inventory balance increased by approximately RMB 3.4 million or 8.7% from RMB 39.3 million as of December 31, 2018, to RMB 42.7 million as of December 31, 2019, due to increased raw material stock levels for upcoming production plans[35]. - Trade receivables increased by approximately RMB 1.1 million or 1.7% from RMB 648 million as of December 31, 2018, to RMB 659 million as of December 31, 2019, reflecting business growth[36]. - Prepayments, deposits, and other receivables decreased by approximately RMB 137.2 million or 83.3% from RMB 1,647 million as of December 31, 2018, to RMB 276 million as of December 31, 2019, mainly due to the settlement of related party transactions[36].