Financial Performance - In the first half of fiscal year 2020/21, total revenue decreased by 30.8% year-on-year to RMB 260.7 million (2019/20: RMB 376.7 million) [15] - Consolidated gross profit dropped by 32.1% year-on-year to RMB 163.8 million (2019/20: RMB 241.2 million) [15] - The overall gross profit margin decreased by 1.2 percentage points to 62.8% compared to the same period last year [15] - The Group transitioned from a profit of RMB 2.4 million in 2019/20 to a loss of RMB 29.8 million in 2020/21 [15] - Basic loss per share was RMB (4.22) cents, compared to earnings of RMB 0.34 cents per share in the previous year [17] - The consolidated loss attributable to owners of the Company was RMB 29.8 million [15] - The Group reported a consolidated loss attributable to owners of RMB 29,800,000, compared to a profit of RMB 2,400,000 in the previous year, with a basic loss per share of RMB 4.22 cents [29] - The group reported revenue of RMB 260,713,000 for the six months ended August 31, 2020, a decrease of 30.8% compared to RMB 376,724,000 in the same period of 2019 [92] - Gross profit for the same period was RMB 163,787,000, down 32.1% from RMB 241,191,000 in 2019 [92] - The group incurred a loss of RMB 29,890,000 for the period, compared to a profit of RMB 2,363,000 in the previous year [92] - Total comprehensive loss for the period amounted to RMB 37,783,000, a stark contrast to the total comprehensive income of RMB 22,599,000 in the previous year [100] Impact of COVID-19 - The retail markets in Mainland China and Hong Kong and Macau were severely impacted by the COVID-19 pandemic [21] - The Group's total revenue decreased by 30.8% year-on-year to RMB260,700,000 (2019/20: RMB376,700,000) due to the impact of the COVID-19 pandemic [23] - Same-store sales declined by 24.2% during the review period, a significant drop from a 3.7% increase in the previous year [49] - Sales in Hong Kong and Macau dropped by 74.6% year-on-year to RMB 5.1 million, down from RMB 20 million in the previous year [65] - The unemployment rate in Hong Kong reached 6.2% in Q2 2020, the highest level in over 15 years [65] Cost Management - Selling and distribution expenses decreased by 32.2% to RMB114,400,000, resulting in a ratio of selling and distribution expenses to total revenue of 43.9%, down 0.9 percentage points [22] - General and administrative expenses increased by 21.8% to RMB84,300,000, with these expenses representing 32.3% of total revenue, up 13.9 percentage points [27] - The Group implemented a 25% pay cut for all directors for six months starting from March 2020 to reduce daily expenses [47] Inventory and Cash Management - The Group's inventory balance decreased by 32.4% to RMB223,200,000, with finished goods inventory turnover increasing by 18 days to 396 days [35] - As of 31 August 2020, the Group's cash and bank balance was RMB563,900,000, up from RMB508,600,000 as of 29 February 2020, maintaining a quick ratio of 5.4 times [41] - The company’s cash and bank balances at 31 August 2020 totaled RMB 563,909,000, up from RMB 418,042,000 in 2019, showing a strong liquidity position [124] Strategic Focus - The Group aims to appeal to diversified target customer groups with distinctive product lines [14] - The Group plans to focus on developing certain own brands and invest more in athleisure footwear markets due to increasing consumer health consciousness [76] - The Group will enhance its online presence by investing more in social media marketing and emerging social e-commerce platforms [77] - The Group aims to open new stores in appropriate community malls to attract consumers back to offline shopping [77] - The Group believes that optimizing operational structures and enhancing brand value will help respond to future market changes [78] Workforce and Operations - The group has reduced its workforce to 1,541 employees as of August 31, 2020, down from 2,394 employees in February 2020 [86] - The production in the Shunde factory has halted and has been entirely outsourced, allowing the Group to focus on product development and design [76] Financial Position - The company's total assets decreased to RMB 1,079,091,000 as of August 31, 2020, down from RMB 1,105,663,000 as of February 29, 2020, reflecting a reduction of approximately 2.4% [103] - Current liabilities increased to RMB 155,170,000, compared to RMB 143,959,000 in the previous audited period, representing an increase of about 7.9% [107] - The company's inventories decreased to RMB 223,214,000 from RMB 273,093,000, showing a decline of approximately 18.3% [103] - The equity attributable to owners of the company decreased to RMB 923,921,000 from RMB 961,704,000, indicating a decline of about 3.9% [107] - The company reported a total equity of RMB 923,921,000 as of August 31, 2020 [110] Risk Management - The Group's liquidity risk management strategy includes maintaining sufficient cash generated from operating cash flow and having access to committed credit facilities [147] - The Group's financial risk exposure includes market risk (foreign currency and interest rate risk), liquidity risk, and credit risk, with no changes in risk management policies since February 29, 2020 [142][143]
莱尔斯丹(00738) - 2021 - 中期财报