Revenue Performance - For the six months ended June 30, 2021, the Group's revenue was approximately RMB161,829,000, representing a decrease of approximately 15.8% compared to RMB192,145,000 for the same period in 2020[18]. - The decrease in revenue was mainly due to the prolonged COVID-19 pandemic, which severely impacted the economy and consumer industry, leading to a direct decline in retail sales[18]. - Revenue from bread and cakes was RMB128,795,000, while pastries and other products generated RMB23,471,000 and RMB9,563,000 respectively, showing a decline across all product categories[17]. - Revenue from the Shanghai area accounted for approximately 66.0% of the Group's revenue in the first half of 2021, down from 70.8% in the same period of 2020, with a revenue decrease of approximately RMB23,660,000 or 18.1%[23]. - Revenue from bread and cakes decreased by approximately RMB20,752,000 or 13.9%, pastries decreased by approximately RMB4,361,000 or 15.7%, and other products decreased by approximately RMB5,203,000 or 35.2% in the first half of 2021 compared to the same period in 2020[28]. - For the six months ended June 30, 2021, total revenue from contracts with customers was RMB 161,829,000, a decrease of 15.7% from RMB 192,145,000 in the same period of 2020[200]. - Revenue from the sale of bakery products accounted for the entirety of the reported revenue, amounting to RMB 161,829,000, which is a decline from the previous year's figure[200]. Profitability and Financial Performance - The gross profit for the six months ended June 30, 2021, was approximately RMB71,977,000, down from RMB83,822,000 in the same period of 2020, indicating a decline in profitability[17]. - Gross profit for the six months ended June 30, 2021, was approximately RMB71,977,000, a decrease of approximately 14.1% from RMB83,822,000 in the same period of 2020, with an overall gross profit margin of approximately 44.5%[30]. - The loss attributable to owners of the Company increased from approximately RMB66,116,000 to approximately RMB68,009,000, an increase of approximately RMB1,893,000[46]. - Loss from operations was RMB 62,277,000, compared to a loss of RMB 57,334,000 in the previous year, indicating a deterioration in operational performance[147]. - The company reported a total comprehensive loss of RMB 67,009,000 for the six months ended June 30, 2021, compared to a loss of RMB 35,920,000 for the same period in 2020[158]. - The accumulated losses increased to RMB 767,805,000 as of June 30, 2021, from RMB 699,796,000 at the beginning of the year[158]. Cost Management - Selling and distribution expenses decreased by approximately RMB8,044,000 or 6.7% to approximately RMB112,916,000 for the six months ended June 30, 2021, compared to approximately RMB120,960,000 in the same period of 2020[36]. - Administrative expenses decreased by approximately RMB5,026,000 or 18.4% to approximately RMB22,250,000 for the six months ended June 30, 2021, due to improved management and streamlined human resources[38]. - Finance costs decreased by approximately RMB3,050,000 or 34.7% to approximately RMB5,732,000 for the six months ended June 30, 2021, primarily due to reduced interest expenses on lease liabilities[43]. Store Operations and Strategy - The Group implemented a strategy to close down loss-making stores, contributing to the reduction in the number of operating and new stores, which further affected revenue[18]. - The number of stores decreased from 398 at the end of June 2020 to 340 at the end of the first half of 2021, with 58 stores closed, including 39 in Shanghai, 8 in Jiangsu, and 11 in Zhejiang[22]. - Future strategies may include further adjustments to the store portfolio and exploration of new sales channels to enhance revenue generation[18]. - The Group continues to face challenges in the retail sector due to ongoing economic uncertainties and changing consumer behaviors[18]. Financial Position and Liquidity - As of June 30, 2021, the Group's bank and cash balances amounted to approximately RMB70,469,000, an increase of approximately RMB6,622,000 compared to RMB63,847,000 as of December 31, 2020, mainly due to a net cash inflow from operating activities of approximately RMB8,930,000[96]. - The current ratio as of June 30, 2021, was 18.5%, down from 25.5% as of December 31, 2020[98]. - The Group's total equity showed a deficit of approximately RMB103,921,000 as of June 30, 2021, compared to a deficit of approximately RMB35,912,000 as of December 31, 2020[117]. - The gearing ratio as of June 30, 2021, was approximately 119.3%, up from 105.9% as of December 31, 2020, primarily due to increased bank borrowings[118]. - The Group's current liabilities exceeded its current assets by approximately RMB 499.9 million as of June 30, 2021[173]. - Total liabilities exceeded total assets by approximately RMB 103.9 million as of June 30, 2021[173]. Employee and Operational Efficiency - Employee headcount as of June 30, 2021, was 2,255, a decrease of approximately 21.8% compared to the same period in 2020[139]. - Total staff costs during the period were approximately RMB 80,876,000, accounting for 50.0% of operating revenue, down from 52.7% in the previous year[139]. - The Group's management has identified streamlining the organization structure and formulating multi-tasking roles as key objectives[140]. Future Outlook and Strategic Plans - The management remains optimistic about the bakery industry in China, citing continuous economic growth and an expanding consumer base in lower-tier cities[144]. - The Group plans to enhance product offerings by developing new types of bread, cakes, and desserts, and improving the taste and texture of existing products[144]. - The management aims to target young consumer groups to enhance brand image and product awareness, focusing on healthier and high-quality bakery products[144]. - Significant uncertainties exist regarding the Group's ability to achieve its plans and measures for continued operations[182]. - The Group's ability to continue as a going concern depends on successful negotiations with banks for additional facilities and extending repayment due dates[182].
克莉丝汀(01210) - 2021 - 中期财报