Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 405.8 million, a decrease of 9.0% compared to RMB 445.7 million in the same period of 2018[6]. - Gross profit for the same period was RMB 318.1 million, down 4.5% from RMB 333.1 million year-on-year[6]. - Operating profit decreased by 40.2% to RMB 45.5 million from RMB 76.1 million in the previous year[6]. - Profit attributable to equity holders of the parent was RMB 30.7 million, a decline of 46.3% compared to RMB 57.2 million in 2018[6]. - Basic earnings per share were RMB 0.90, down 46.1% from RMB 1.67 in the same period last year[6]. - The net profit for the six months ended June 30, 2019, was RMB 30,552,000, a decrease of 47.5% compared to RMB 58,238,000 for the same period in 2018[21]. - Total comprehensive income for the period was RMB 35,220,000, down 30.5% from RMB 50,726,000 in the previous year[22]. - The group's pre-tax profit for the six months ended June 30, 2019, was RMB 30,749,000, compared to RMB 57,176,000 for the same period in 2018, reflecting a decrease of 46.2%[94]. - Other income for the six months ended June 30, 2019, totaled RMB 16,984,000, down from RMB 35,279,000 in the same period of 2018, representing a decline of 52.1%[80]. - The total tax expense for the period was RMB 21,757,000, down from RMB 32,076,000 in the same period of 2018, indicating a reduction of 32.3%[91]. Revenue Breakdown - Revenue from sales of goods for the six months ended June 30, 2019, was RMB 405,827,000, a decrease of 8.9% compared to RMB 445,716,000 for the same period in 2018[76]. - Revenue from self-operated retail points decreased by RMB 28.1 million to RMB 316.5 million, representing a decline of about 8.2% and accounting for approximately 78.0% of total revenue[180]. - Revenue from sales to third-party retailers decreased by RMB 5.9 million to RMB 62.0 million, a decline of approximately 8.7% and accounting for about 15.3% of total revenue[182]. - Online channel sales revenue decreased by RMB 5.9 million to RMB 27.3 million, a decline of approximately 17.8% and accounting for about 6.7% of total revenue[183]. - The revenue from the company's own brand decreased by RMB 0.9 million to RMB 46.9 million, with its contribution to total revenue increasing from 10.7% to 11.6%[187]. - The revenue from outlet stores decreased by RMB 3.5 million to RMB 108.1 million, a decline of approximately 3.1%[180]. - Revenue from licensed brands was RMB 358.9 million, accounting for 88.4% of total revenue, while own brand revenue was RMB 46.9 million, accounting for 11.6%[188]. Cost and Expenses - The cost of goods sold for the six months ended June 30, 2019, was RMB 94,980,000, compared to RMB 113,086,000 for the same period in 2018, showing a decrease of 16.0%[86]. - Sales cost decreased from RMB 112.6 million to RMB 87.7 million, a reduction of approximately 22.1%[189]. - Selling and distribution expenses decreased from RMB 253.6 million to RMB 237.5 million, a decline of about 6.3%[193]. - Administrative expenses increased from RMB 27.4 million to RMB 45.9 million, an increase of approximately 67.5%[197]. - Advertising and promotional expenses for the period amounted to RMB 9.9 million, down from RMB 15.7 million in the previous period[193]. - The group’s employee benefits expenses, including director remuneration, totaled RMB 76,461,000 for the six months ended June 30, 2019, compared to RMB 70,365,000 for the same period in 2018, an increase of 8.5%[86]. Assets and Liabilities - Non-current assets increased to RMB 840,539,000 as of June 30, 2019, compared to RMB 806,855,000 at the end of 2018, reflecting a growth of 4.2%[24]. - Current assets totaled RMB 1,313,808,000, slightly down from RMB 1,333,669,000 at the end of 2018, indicating a decrease of 1.5%[24]. - The total liabilities decreased to RMB 305,962,000 from RMB 343,300,000, showing a reduction of 10.8%[26]. - The equity attributable to owners of the parent company was RMB 1,820,168,000, an increase from RMB 1,778,330,000, representing a growth of 2.4%[26]. - The company's inventory stood at RMB 221,792,000, a slight increase from RMB 220,751,000, reflecting a growth of 0.5%[24]. - Trade receivables amounted to RMB 92,184,000, down from RMB 113,043,000 as of December 31, 2018, with an impairment of RMB 10,181,000[118]. - The total future minimum lease payments receivable under irrevocable operating leases as of June 30, 2019, amounted to RMB 16,328,000, compared to RMB 17,751,000 as of December 31, 2018[151]. Cash Flow and Financing - The operating cash flow for the six months ended June 30, 2019, was RMB 39,644 thousand, a decrease from RMB 76,154 thousand in the same period of 2018[39]. - The net cash flow used in operating activities for the six months ended June 30, 2019, was RMB (13,892) thousand, compared to RMB 27,743 thousand in 2018, reflecting a significant decrease[39]. - The cash flow from investing activities for the six months ended June 30, 2019, was RMB (27,283) thousand, compared to RMB (5,380) thousand in 2018, indicating a larger outflow[39]. - The net cash flow from financing activities for the six months ended June 30, 2019, was RMB (24,035) thousand, with no financing activities reported in 2018[42]. - The company's cash and cash equivalents were RMB 411,626,000, a decrease of 3.7% from RMB 427,581,000 at the end of 2018[24]. - The total cash and cash equivalents at the end of June 30, 2019, were RMB 152,126 thousand, slightly down from RMB 153,120 thousand in 2018[42]. Accounting Policies and Standards - The financial data for the reporting period is prepared in accordance with the Hong Kong Stock Exchange Listing Rules and International Accounting Standards, presented in Renminbi (RMB) and rounded to the nearest thousand[2]. - The company adopted new and revised International Financial Reporting Standards effective January 1, 2019, including IFRS 16 on leases, which requires lessees to recognize all leases on the balance sheet[3]. - The impact of adopting IFRS 16 resulted in the recognition of lease liabilities at the present value of remaining lease payments as of January 1, 2019, and the corresponding right-of-use assets were measured based on the lease liabilities[4]. - The company has chosen to present right-of-use assets separately in the financial position statement, reflecting the transition impact of the new lease standard[4]. - The accounting policies adopted for the interim financial data are consistent with those applied in the annual financial statements for the year ended December 31, 2018, except for the new standards adopted[3]. - The company will not restate comparative information for 2018 but will continue to report under the previous standard for that period[4]. Market and Future Outlook - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[30]. - The GDP growth rate in China was 6.3%, the lowest in 29 years, impacting consumer retail sales growth which decreased to 8.4%[178].
中国服饰控股(01146) - 2019 - 中期财报