Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 3,306.37 million, a slight decrease of 1.03% or RMB 34.53 million compared to RMB 3,340.90 million for the same period in 2023[2] - Net profit for the six months ended June 30, 2024, was RMB 282.85 million, a decrease of 36.03% or RMB 159.35 million compared to RMB 442.20 million for the same period in 2023[2] - Operating cash inflow for the six months ended June 30, 2024, was RMB 451.83 million, down from RMB 914.61 million for the same period in 2023[2] - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.41, compared to RMB 0.66 for the same period in 2023[2] - Total comprehensive income for the six months ended June 30, 2024, was RMB 270.90 million, down from RMB 416.28 million for the same period in 2023[6] - The company reported a pre-tax profit of RMB 278,662,000 for the six months ended June 30, 2024, compared to RMB 445,227,000 for the same period in 2023[21] - The income tax expense for the six months ended June 30, 2024, was RMB 21,536,000, significantly lower than RMB 63,811,000 in the previous year[19] - Net profit for the reporting period was RMB 282.85 million, a decrease of 36.03% or RMB 159.35 million compared to RMB 442.20 million in the first half of 2023, with a net profit margin dropping from 13.24% to 8.55%[68] Revenue Breakdown - Direct retail store sales amounted to RMB 2,633,960,000, down 3.7% from RMB 2,734,368,000 year-on-year[15] - E-commerce platform sales increased by 17.7% to RMB 546,343,000 from RMB 463,715,000 in the previous year[15] - Revenue from direct retail stores was RMB 2,633.96 million, accounting for 79.67% of total revenue, which represents a decrease of 3.67% from RMB 2,734.37 million in the same period last year[51] - E-commerce revenue increased by 17.82% to RMB 546.34 million, up from RMB 463.72 million in the first half of 2023, representing 16.52% of total revenue[51] - Revenue from Tmall e-commerce platform rose by 7.91% to RMB 124.41 million, while Vipshop's revenue increased by 14.80% to RMB 239.69 million[53] - EEKA Fashion Mall's revenue surged by 35.45% to RMB 49.71 million, and Douyin's revenue grew by 4.01% to RMB 101.39 million[53] Asset and Equity Position - Non-current assets as of June 30, 2024, totaled RMB 3,424.96 million, compared to RMB 3,480.14 million as of December 31, 2023[7] - Current assets as of June 30, 2024, were RMB 3,156.18 million, down from RMB 3,549.66 million as of December 31, 2023[7] - Total equity attributable to equity holders of the parent as of June 30, 2024, was RMB 4,430.08 million, compared to RMB 4,576.91 million as of December 31, 2023[9] Operational Highlights - The company operates a single business segment in China, focusing on women's retail and wholesale, with no separate segment analysis presented[14] - The number of direct retail stores as of June 30, 2024, was 1,485, with NAERSILING operating 88 stores[52] - CADIDL operated 153 stores as of June 30, 2024, contributing to the overall retail strategy focused on enhancing store quality and consumer experience[48] - The total number of retail stores decreased from 1,964 to 1,912, with 96 new stores opened and 148 closed during the reporting period[56] Marketing and Brand Strategy - Koradior and NAERSI, the company's two main brands, generated sales revenue exceeding RMB 3.85 billion, ranking among the top ten brands in the industry[37] - NAERSI's promotional activities achieved nearly 100 million exposures through various media collaborations and events[40] - The company plans to continue enhancing product quality and brand image to navigate the competitive high-end women's apparel market during economic downturns[36] - Koradior's marketing strategy includes collaborations with international celebrities to strengthen brand recognition and influence[38] - NAERSI's "High-Energy Wardrobe" initiative focuses on product value analysis and highlights signature craftsmanship to attract urban female consumers[40] - ELSEWHERE is integrating its marketing and brand image to enhance its presence in the sustainable fashion sector, appealing to environmentally conscious consumers[45] Cost and Expense Management - Research and development costs increased to RMB 103,430,000, up 22% from RMB 84,856,000 in the previous year[18] - The company incurred a total employee benefit expense of RMB 805,946,000, an increase from RMB 703,779,000 in the same period last year[18] - Operating expenses for the reporting period amounted to RMB 2,272.42 million, an increase of 9.15% or RMB 190.49 million compared to RMB 2,081.93 million for the six months ended June 30, 2023[64] - Sales and distribution expenses were RMB 1,902.95 million, up 6.19% from RMB 1,792.03 million for the same period last year, primarily due to increases in salaries, employee benefits, store expenses, and promotional investments[65] - Administrative and other operating expenses rose by 27.45% to RMB 369.47 million from RMB 289.90 million in the same period last year, mainly due to increased salaries and R&D costs for product design improvements[66] Future Outlook and Strategy - The company plans to focus on steady development of existing brand businesses and aims to achieve annual operational goals while enhancing quality across all business areas[75] - The company will continue to invest in brand building and improve marketing efficiency through systematic promotion and quantifiable target assessments[75] - The product system will be enhanced by improving product quality and focusing on core product categories, with an emphasis on upgrading materials and refining craftsmanship[75] - The company aims to optimize offline store operations and expand online channel layouts, particularly in high-end markets and through partnerships with quality regional distributors[75] - The supply chain will be further integrated and improved, focusing on quality and enhancing overall bargaining power through consolidated procurement of raw materials[75] Dividend and Shareholder Information - The board of directors did not recommend the declaration of an interim dividend for the six months ended June 30, 2024[2] - The board has decided not to declare any interim dividend for the six months ended June 30, 2023[76] - Approximately 3,100,000 shares were purchased from the market under the share incentive plan, with total costs around HKD 32,000,000[78] Compliance and Governance - The company plans to adopt new and revised International Financial Reporting Standards effective from January 1, 2024, which are not expected to have a significant impact on the financial statements[12] - The audit committee, composed of three independent non-executive directors, is responsible for reviewing financial reporting and risk management[79]
赢家时尚(03709) - 2024 - 中期业绩