Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,514.45 million, an increase compared to RMB 1,367.63 million in the same period in 2023[4] - Net profit attributable to owners of the company for the six months ended June 30, 2024, was RMB 82.398 million, a significant increase of approximately 215% compared to RMB 26.129 million in the same period in 2023[5] - Gross profit margin remained stable at 47.5% in 2024, compared to 47.4% in 2023[4] - Basic earnings per share for the six months ended June 30, 2024, were RMB 3.8 cents, up from RMB 1.2 cents in the same period in 2023[4] - The company's net profit attributable to owners for the first half of 2024 was RMB 82.398 million, a 215% increase compared to the same period in 2023[10] - Revenue for the six months ended June 30, 2024, was RMB 1,514,450 thousand, a 10.7% increase compared to RMB 1,367,631 thousand in the same period of 2023[29] - Gross profit for the six months ended June 30, 2024, was RMB 718,899 thousand, an 11.0% increase compared to RMB 647,622 thousand in the same period of 2023[29] - Operating profit for the six months ended June 30, 2024, was RMB 123,833 thousand, a significant increase compared to RMB 36,144 thousand in the same period of 2023[29] - Net profit attributable to the company's owners for the six months ended June 30, 2024, was RMB 82,398 thousand, a 215.3% increase compared to RMB 26,129 thousand in the same period of 2023[29] - Total revenue for the six months ended June 30, 2024, was RMB 1,514,450 thousand, a 10.7% increase compared to RMB 1,367,631 thousand in the same period of 2023[51][52] - Gross profit for the period was RMB 718,899 thousand, an 11.0% increase from RMB 647,622 thousand in 2023[51] - Profit before tax for the six months ended June 30, 2024, was RMB 115,311 thousand, a significant increase from RMB 33,008 thousand in 2023[51] - The company's profit attributable to owners for the six months ended June 30, 2024, was RMB 82,398 thousand, up from RMB 26,129 thousand in the same period in 2023[65] Product Innovation and Market Expansion - The company launched a new Soft Sizing Invisible Bra series in March 2024, which received positive market feedback[7] - The company partnered with the Chinese National Synchronized Swimming Team in March 2024, enhancing brand recognition and aligning with its national brand positioning[7] - The company celebrated its 26th anniversary and 10th anniversary of listing on the Hong Kong Stock Exchange in June 2024, launching a marketing campaign with brand ambassador Xu Dongdong[7] - The company expanded its advertising presence through high-speed rail media, covering over 120 cities and nearly 1,000 premium media spots[7] - The company continued to focus on product innovation, improving quality while reducing production costs to enhance product competitiveness[7] - The company implemented a precise product-channel matching strategy, tailoring product assortments to different store types to meet diverse consumer needs[7] - The company's pure cotton homewear brand achieved a breakthrough in store growth in the first half of 2024, laying a foundation for performance growth[8] - The company's e-commerce business successfully expanded cooperation with joint operators in the first half of 2024, integrating online and offline layouts to increase market share[8] - The company aims to enhance its omnichannel capabilities and improve customer shopping experience through instant retail partnerships with platforms like Meituan and JD Daojia[8] Revenue Breakdown - The company's revenue from intimate apparel products, industrial projects, and logistics for the first half of 2024 was RMB 1.51445 billion, with intimate apparel products accounting for 85.5% of total revenue[11] - The company's GMV from e-commerce platforms reached RMB 230 million in the first half of 2024, contributing to service income[12] - The company's gross margin remained stable at 47.5% in the first half of 2024, with the gross margin of industrial projects and logistics increasing to 37.7%[13] - Revenue from retail sales increased to RMB 643,711 thousand in 2024, up 3.4% from RMB 622,579 thousand in 2023[52] - Revenue from e-commerce decreased to RMB 226,732 thousand in 2024, down 9.1% from RMB 249,553 thousand in 2023[52] - Revenue from industrial project property sales was RMB 171,875 thousand in 2024, a new segment not present in 2023[52] Cost and Expense Management - The company's sales and marketing expenses decreased by 7.7% to RMB 514.693 million in the first half of 2024, primarily due to reduced e-commerce platform service fees and promotional expenses[14] - General and administrative expenses decreased by 10.6% to approximately RMB 83,833,000 (H1 2023: RMB 93,793,000) due to effective cost control measures[15] - Net impairment loss on financial assets was approximately RMB 2,722,000, mainly due to provisions for accounts receivable, while net impairment loss reversal was approximately RMB 33,726,000 due to the reversal of previously provided accounts receivable[16] - Net finance expenses decreased to approximately RMB 8,713,000 (H1 2023: RMB 9,284,000) due to increased interest income and reduced interest expenses on bank loans[16] - Income tax expenses increased to approximately RMB 37,965,000 (H1 2023: RMB 8,451,000), mainly due to land value-added tax expenses of approximately RMB 15,811,000 and the reversal of deferred tax assets[16] - Cost of goods sold decreased to RMB 658,921 thousand in 2024, down 3.5% from RMB 683,130 thousand in 2023[57] - Financial expenses decreased slightly to RMB 12,715 thousand in 2024, compared to RMB 13,022 thousand in 2023[59] - Income tax expense for the six months ended June 30, 2024, was RMB 37,965 thousand, compared to RMB 8,451 thousand in the same period in 2023[60] Cash Flow and Financial Position - As of June 30, 2024, the company's restricted bank deposits, cash, and cash equivalents were approximately RMB 676,317,000 (December 31, 2023: RMB 681,933,000), with bank loans of approximately RMB 462,194,000 (December 31, 2023: RMB 392,480,000)[17] - The company's total debt ratio was 23.1% (December 31, 2023: 20.4%), and the net debt ratio was -10.7% (December 31, 2023: -15.0%), maintaining a net cash position[17] - Capital expenditures for property, plant, equipment, and intangible assets were approximately RMB 33,333,000 (H1 2023: RMB 253,150,000), primarily used for store renovations and refurbishments[22] - Total assets as of June 30, 2024, were RMB 3,838,514 thousand, a slight increase compared to RMB 3,815,517 thousand as of December 31, 2023[30] - Cash and cash equivalents as of June 30, 2024, were RMB 572,174 thousand, a 13.0% increase compared to RMB 506,157 thousand as of December 31, 2023[30] - Inventory as of June 30, 2024, was RMB 664,785 thousand, a 7.8% increase compared to RMB 616,454 thousand as of December 31, 2023[30] - Property, plant, and equipment as of June 30, 2024, were RMB 754,166 thousand, a 24.2% decrease compared to RMB 994,638 thousand as of December 31, 2023[30] - Operating cash flow from operating activities decreased to RMB 68,315 thousand in H1 2024 from RMB 212,578 thousand in H1 2023, a decline of 67.9%[37] - Net cash used in investing activities was RMB 24,986 thousand in H1 2024, significantly lower than RMB 256,662 thousand in H1 2023, a reduction of 90.3%[37] - Net cash from financing activities improved to RMB 29,138 thousand in H1 2024 from a net cash outflow of RMB 23,414 thousand in H1 2023[37] - Cash and cash equivalents increased by RMB 72,467 thousand in H1 2024, compared to a decrease of RMB 67,498 thousand in H1 2023[37] - Ending cash and cash equivalents stood at RMB 572,174 thousand as of June 30, 2024, up from RMB 483,600 thousand as of June 30, 2023[37] Corporate Governance and Shareholder Information - The company's environmental, social, and governance (ESG) report for the year ending December 31, 2024, will be included in the annual report to be published next year[25] - Total equity increased to RMB 2,000,824 thousand as of June 30, 2024, compared to RMB 1,928,439 thousand at the end of 2023[32] - Net profit for the period was RMB 82,398 thousand, contributing to a total comprehensive income of RMB 76,784 thousand[33] - Non-controlling interests decreased to RMB (5,879) thousand from RMB (630) thousand at the end of 2023[32] - Total liabilities decreased to RMB 1,837,690 thousand from RMB 1,887,078 thousand at the end of 2023[32] - Contract liabilities increased significantly to RMB 220,677 thousand from RMB 48,456 thousand at the end of 2023[32] - Loans under current liabilities increased to RMB 312,400 thousand from RMB 162,038 thousand at the end of 2023[32] - Exchange differences on translation of foreign operations resulted in a loss of RMB 3,284 thousand[33] - Fair value changes of equity investments recognized in other comprehensive income amounted to a loss of RMB 2,330 thousand[33] - Equity-settled share-based payments amounted to RMB 850 thousand[33] - Dividends paid to non-controlling interests amounted to RMB 197 thousand[33] - The company's total bank loans increased to RMB 462,194,000 as of June 30, 2024, compared to RMB 392,480,000 as of December 31, 2023, with a corresponding debt-to-equity ratio of 23% (up from 20%)[45][46] - The company's total equity stood at approximately RMB 2,000,824,000 as of June 30, 2024, up from RMB 1,928,439,000 as of December 31, 2023[45] - The fair value of financial assets measured at fair value through other comprehensive income (FVTOCI) under Level 3 was RMB 21,451,000 as of June 30, 2024, down from RMB 24,761,000 as of December 31, 2023[47][48] - The discount rate used in the discounted cash flow (DCF) method for FVTOCI financial assets decreased to 14.9% as of June 30, 2024, from 15.5% as of December 31, 2023[49] - The long-term revenue growth rate assumption for FVTOCI financial assets decreased to 3% as of June 30, 2024, from 6% as of December 31, 2023[49] - The company's operating segments were reclassified, with the industrial projects and logistics services now designated as a major business segment, reflecting increased resource allocation[50] - The company adopted revised IFRS standards, including IFRS 16 amendments on lease liabilities and IAS 1 amendments on classification of liabilities, with no material impact on financial performance[42][43] - The company has recommended an interim dividend of HK24,744,000, payable on October 8, 2024[98] - The company will suspend share transfer registration from September 23, 2024, to September 25, 2024, to ensure eligibility for the interim dividend[99] - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2024[101] - The company has confirmed that all directors have complied with the standard code of conduct for securities transactions during the six months ended June 30, 2024[101] - The company has deviated from the Corporate Governance Code by having the same individual serve as both Chairman and CEO since November 30, 2021[100] - The Audit Committee consists of four independent non-executive directors, including Mr. Qiu Zhiming, Dr. Dai Yiyi, Mr. Chen Zhigang, and Dr. Lü Hongde[102] - Mr. Qiu Zhiming, who holds the relevant professional qualifications as required by the Listing Rules, serves as the Chairman of the Audit Committee[102] - The Audit Committee regularly reviews the company's financial data, financial reporting systems, and internal control procedures, including the interim financial data for the six months ended June 30, 2024[102] - The Audit Committee has reviewed the interim results for the six months ended June 30, 2024, and has no objections to the accounting treatments and principles adopted by the company[102] - There were no changes in the company's directors as required to be disclosed under Chapter 13, Section 51B(1) of the Listing Rules during the six months ended June 30, 2024, and as of the date of this interim report[103] Shareholder and Share Information - Mr. Zheng Yaonan and Ms. Wu Xiaoli each hold 800,464,201 shares, representing approximately 35.58% of the company's total issued ordinary shares[85] - TMF (Cayman) Limited holds 1,079,778,852 shares, representing 48.00% of the company's total issued ordinary shares[88] - Da Cheng Investment Limited holds 750,863,402 shares, representing 33.38% of the company's total issued ordinary shares[88] - Yao Li Investment Holdings Limited holds 750,863,402 shares, representing 33.38% of the company's total issued ordinary shares[88] - Da Tong Investment Limited holds 735,018,732 shares, representing 32.68% of the company's total issued ordinary shares[88] - Cai Shaoru holds 222,625,173 shares, representing 9.90% of the company's total issued ordinary shares[88] - Xin Feng Asset Holdings Limited holds 222,625,173 shares, representing 9.90% of the company's total issued ordinary shares[88] - Fidelity China Special Situations PLC holds 157,330,000 shares, representing 6.99% of the company's total issued ordinary shares[88] - The total number of issued ordinary shares as of June 30, 2024, is 2,249,457,213 shares[89] - Datong Investment Limited holds 735,018,732 shares, representing approximately 32.68% of the company's total issued share capital[89] - Fidelity China Special Situations PLC holds 157,330,000 shares in the company[90] - No share options were granted, exercised, expired, canceled, or lapsed under the new share option plan as of June 30, 2024[91] - The trustee holds 70,102,737 shares of the company for the management of the share award plan as of June 30, 2024[92] - The share award plan was amended on June 2, 2023, to incentivize eligible participants for their contributions to the group[92] - The share option plan was terminated on June 2, 2023, and no further share options were granted after this date[91] - The new share option plan, adopted on June 2, 2023, has a validity period of ten years[91] - The share award plan was initially adopted on June 28, 2019, and later amended on June 2, 2023[92] - The trustee for the share award plan was established to manage the trust property related to the plan[92] - The maximum number of shares that may be issued under the new share option plan and share award plan is 224,945,721 shares, representing 10% of the issued shares as of June 2, 2023[97] - The maximum number of shares that may be issued under the service provider sub-limit is 44,989,144 shares, representing 2% of the issued shares as of June 2, 2023[97] - No other share awards were granted apart from those disclosed, and no granted share awards were forfeited or canceled as of June 30, 2024[95] - The company has a standardized performance evaluation system for employees and service providers to assess their contributions and determine the vesting of share awards[94] - The company has not issued any shares under the share award plan during the six months ended June 30, 2024[97] Related Party Transactions and Remuneration - Related party transactions with Shantou Shengqiang and Shantou Maosheng totaled RMB 9,549 thousand for the six months ended June 30, 2024, down from RMB 14,961 thousand in the same period of 2023[81] - Accounts payable and bills payable to related parties increased to RMB 8,198 thousand as of June 30, 2024, up from RMB 1,752 thousand as of December 31, 2023[82] - Total remuneration for directors and key management personnel was RMB 5,776 thousand for the six months ended June 30, 2024, compared to RMB 5,896 thousand for the same period in 2023[83] Assets and Liabilities - The
都市丽人(02298) - 2024 - 中期财报