Financial Performance - For the six months ended June 30, 2023, the Group recorded a revenue of RMB 91.9 million, representing an increase of 2.0% compared to RMB 90.1 million in the same period of 2022[32]. - The operating loss for the first half of 2023 was RMB 50.1 million, a significant improvement from an operating loss of RMB 97.9 million in the first half of 2022, reflecting a reduction of 48.9%[10]. - Loss attributable to owners of the Company decreased to RMB 63.9 million in 2023 from RMB 129.4 million in 2022, marking a reduction of 50.6%[32]. - Rental income increased by 2.2% to RMB 88.7 million for the six months ended June 30, 2023, from RMB 86.8 million for the same period in 2022[51]. - Direct sales decreased by 4.9% to RMB 3.2 million for the six months ended June 30, 2023, down from RMB 3.3 million for the same period in 2022[51]. - Other operating revenue rose by 11.5% to RMB 17.5 million for the six months ended June 30, 2023, compared to RMB 15.7 million for the same period in 2022, mainly due to increased government tax incentives[55]. - The total comprehensive income for the six months ended June 30, 2023, was a loss of RMB 57,430,000, compared to a loss of RMB 132,073,000 for the same period in 2022, indicating a significant improvement[143]. - The loss for the period for the first half of 2023 was RMB 63,885,000, compared to a loss of RMB 129,432,000 in the same period of 2022, indicating a reduction in losses by about 50.7%[143]. Assets and Liabilities - The total assets of the Group as of June 30, 2023, were RMB 2,788.1 million, down from RMB 2,899.7 million at the end of 2022, indicating a decrease of 3.8%[13]. - Total liabilities decreased to RMB 1,729.0 million as of June 30, 2023, from RMB 1,783.2 million at the end of 2022, reflecting a reduction of 3.0%[13]. - The total equity attributable to owners of the Company was RMB 1,059,650,000, down from RMB 1,108,360,000, a decline of 4.4%[134]. - The Group's cash and cash equivalents and bank deposits amounted to RMB 77.9 million as of June 30, 2023, representing a decrease of 17.8% from RMB 94.8 million as of December 31, 2022[83]. - The net current liabilities of the Group as of June 30, 2023, were RMB 471.5 million, compared to net current liabilities of RMB 73.1 million as of December 31, 2022[87]. - Long-term and short-term borrowings were RMB 530.6 million and RMB 34.5 million, respectively, as of June 30, 2023, compared to RMB 540.9 million and RMB 45.2 million as of December 31, 2022[84]. - The gearing ratio was 53.3% as of June 30, 2023, compared to 52.5% as of December 31, 2022[84]. - The Group's total financial liabilities as of June 30, 2023, amount to RMB 1,573.6 million[183]. Operational Strategy - The Group aims to enhance customer experience and service quality to attract new customers and maintain loyalty, focusing on employee training and optimizing store layouts[33]. - The Group plans to continue improving its shopping mall, "Shirble Plaza," to cater to the middle-class population by offering high-quality food, merchandise, and services[33]. - The Group is focused on enhancing the competitiveness of its core department store business while reducing property investments due to economic pressures in the real estate sector[36]. - The Group aims to consolidate resources and adopt prudent business strategies to mitigate economic slowdown pressures and seize future market opportunities[41]. - The Group will continue to implement plans to improve the operational performance of its department store business to generate operating cash inflow[163]. Economic Context - The Chinese economy is expected to recover steadily, with GDP growth targeted at approximately 5% year-on-year for 2023, which may positively impact retail sales[28]. - The total retail sales of consumer goods in China increased by 8.2% year-on-year in the first half of 2023, compared to a 3.1% increase in the same period of 2022[28]. Employee and Cost Management - Employee benefit expenses decreased by 23.3% to RMB 18.4 million for the six months ended June 30, 2023, down from RMB 24.0 million for the same period in 2022, primarily due to workforce streamlining[62]. - Depreciation and amortisation expenses decreased significantly by 73.0% to RMB 1.7 million for the six months ended June 30, 2023, from RMB 6.3 million in the same period in 2022[63]. - Other operating expenses decreased by 28.2% to RMB 29.5 million for the six months ended June 30, 2023, compared to RMB 41.1 million for the same period in 2022, mainly due to cost-saving measures[68]. Shareholder Information - The Board of Directors does not recommend any interim dividend for the six months ended June 30, 2023[81]. - As of June 30, 2023, Ms. HUANG Xue Rong holds 8,324,000 shares, representing approximately 0.33% of the company's issued share capital[116]. - Shirble BVI, wholly owned by Xiang Rong, holds 1,374,167,500 shares, accounting for 55.08% of the company's issued share capital[121]. - Mr. HAO Jian Min is a beneficial owner of 374,250,000 shares, which is 15.00% of the company's issued share capital[121]. - The total number of shares held by substantial shareholders reflects significant ownership concentration within the company[121]. Compliance and Governance - The Company has complied with the Corporate Governance Code during the six months ended June 30, 2023[98]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023[111]. - The company maintains compliance with the Securities and Futures Ordinance regarding the disclosure of interests and short positions[120]. Financial Risk Management - The Group's financial risk management focuses on minimizing potential adverse effects on financial performance due to market unpredictability[174]. - The Group's liquidity risk management includes maintaining bank facilities and monitoring financial liabilities[179]. - The Group's overall risk management program addresses market risk, credit risk, and liquidity risk[174].
岁宝百货(00312) - 2023 - 中期财报