Revenue Performance - The Group's revenue decreased by 22.3% to approximately RMB145.7 million for the six months ended June 30, 2021, compared to approximately RMB187.5 million for the same period in 2020[15]. - Revenue from sales of shoes and clothing decreased from approximately RMB176.1 million to approximately RMB129.8 million due to reduced demand from customers in Korea and Japan[22]. - Revenue from fabric products increased from approximately RMB11.4 million to RMB15.9 million, driven by an increase in average selling price to approximately RMB6.2 per meter[21]. - The overall decrease in revenue was mainly attributed to a decrease in sales demand from customers in Korea and Japan due to the new wave of COVID-19 pandemic[15]. - The Group's revenue for the six months ended 30 June 2021 was approximately RMB145.7 million, a decrease of 22.3% from RMB187.5 million for the same period in 2020[26]. Profit and Loss - Loss attributable to the owners of the Company decreased from approximately RMB74.4 million for the six months ended June 30, 2020, to approximately RMB40.3 million for the six months ended June 30, 2021[16]. - Loss per share decreased from RMB0.31 for the six months ended June 30, 2020, to RMB0.10 for the six months ended June 30, 2021[16]. - Gross profit increased to approximately RMB6.96 million for the six months ended 30 June 2021, with a gross profit margin of 4.8%, up from 1.4% in the same period of 2020[33]. - Loss from operations decreased to RMB3,025,000 compared to RMB38,459,000 in the previous year, showing a reduction in operational losses[109]. - Loss before tax improved to RMB40,260,000 from RMB74,355,000 in 2020, reflecting a 45.5% reduction in losses[109]. Expenses and Cost Management - The cost of sales decreased by 25.0% from approximately RMB184.9 million in the first half of 2020 to approximately RMB138.7 million in the first half of 2021[27]. - Selling and distribution expenses decreased by 60.2% to approximately RMB1.0 million for the six months ended June 30, 2021, down from RMB2.6 million in the same period of 2020[37]. - General and administrative expenses decreased by 46.6% to approximately RMB15.0 million for the six months ended June 30, 2021, compared to RMB28.0 million in the same period of 2020[39]. Financial Position - As of June 30, 2021, the Group's bank and cash balances amounted to approximately RMB1.0 million, down from approximately RMB3.6 million as of 31 December 2020[41]. - The Group's borrowings increased to approximately RMB971.6 million as of June 30, 2021, compared to RMB950.9 million as of 31 December 2020[42]. - The current ratio was 4.9%, down from 5.4% as of December 31, 2020, indicating a slight decrease in liquidity[47]. - The total liabilities of the Group as of June 30, 2021, were RMB1,263,049,000, with segment liabilities for fabrics at RMB291,402,000[131]. Corporate Governance and Compliance - The company complied with the Corporate Governance Code except for code provision A.1.8 regarding insurance cover for directors[90]. - The company will continue to review and enhance its corporate governance practices to meet the requirements of the Corporate Governance Code[92]. - All directors confirmed compliance with the Model Code for securities transactions during the review period[93]. Acquisitions and Future Plans - The Company agreed to acquire 51% equity interests of the Target Company, which is expected to enhance the production and sales of elastic webbing for bras and underwear, thereby strengthening future revenue sources and cash flow[54]. - The management is actively exploring acquisition opportunities in Hong Kong and PRC to diversify trading risks and improve financial position and cash flow[66]. - The management is preparing a circular with details of the acquisition and will keep shareholders informed through further announcements[57]. Share Capital and Securities - The total number of issued and fully paid ordinary shares increased to 435,629,000 from 302,521,000 as of January 1, 2021, representing a growth of approximately 44%[163]. - The company issued unsecured bonds with an aggregate principal value of approximately RMB887,590,000, unchanged from December 31, 2020[161]. - The company raised RMB5,499,000 from the issuance of new shares during the period, compared to RMB2,816,000 in the previous year, representing an increase of about 95.0%[117]. Cash Flow and Liquidity - The company reported a net cash generated from operating activities of RMB1,082,000 for the six months ended June 30, 2021, compared to a net cash used of RMB(23,814,000) in the same period of 2020[117]. - Cash and cash equivalents at the end of the period were RMB1,027,000, down from RMB8,573,000 at the end of June 2020, indicating a decrease of approximately 88.0%[117]. - The company is in discussions with creditors for a debt restructuring plan and has filed an application with the High Court of Hong Kong[71].
满地科技股份(01400) - 2021 - 中期财报