Financial Performance - The company reported a loss of approximately RMB 135.6 million for the six months ended June 30, 2020, due to the impact of COVID-19 on sales and gross margin [5]. - Revenue decreased by 24.6% from approximately RMB 850.0 million for the six months ended June 30, 2019, to approximately RMB 641.2 million for the current period [17]. - Gross profit decreased from approximately RMB 361.5 million to about RMB 214.4 million, with the gross margin dropping from 42.5% to 33.4% [20]. - The company recorded a loss of approximately RMB 135.6 million for the reporting period, compared to a loss of about RMB 1.9 million in the previous period [27]. - Operating loss for the six months was RMB 131,097 thousand, compared to an operating profit of RMB 7,792 thousand in the previous year [79]. - Net loss for the period was RMB 135,613 thousand, significantly higher than the net loss of RMB 1,937 thousand in 2019 [79]. - The total comprehensive loss for the six months ended June 30, 2020, was RMB 125,833,000, compared to a total comprehensive income of RMB 7,665,000 for the same period in 2019 [83]. - The company reported a loss before tax of RMB (137,125) thousand for the six months ended June 30, 2020, compared to a profit before tax of RMB 334 thousand for the same period in 2019 [97][98]. Cash Flow and Position - Cash position improved from RMB 36.2 million as of December 31, 2019, to RMB 117.8 million as of June 30, 2020 [5]. - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 134,378,000, an increase of 102.4% compared to RMB 66,413,000 in the same period of 2019 [85]. - The cash conversion cycle increased from 149 days to 173 days, despite a significant reduction in inventory from RMB 576.4 million to RMB 473.9 million [29]. - The cash and cash equivalents as of June 30, 2020, increased to RMB 112,335,000 from RMB 30,685,000 at the beginning of the year, reflecting a net increase of RMB 81,069,000 [85]. Inventory and Receivables - Inventory decreased from RMB 576.4 million as of December 31, 2019, to RMB 473.9 million as of June 30, 2020 [5]. - Inventory turnover days increased from 211 days to 224 days, while trade receivables turnover days increased from 32 days to 35 days [28]. - Total trade receivables increased to RMB 134,190,000 as of June 30, 2020, compared to RMB 111,424,000 in 2019, indicating a growth of approximately 20.4% [112]. Operational Changes - The number of self-operated retail points decreased from 750 as of June 30, 2019, to 717 as of June 30, 2020 [8]. - The company closed 24 retail stores during the reporting period, resulting in a total of 218 retail stores as of June 30, 2020 [10]. - The number of distributors decreased from 849 as of June 30, 2019, to 638 as of June 30, 2020 [14]. - The company maintained 16 wholesale arrangements with chain hypermarkets and supermarkets as of June 30, 2020, unchanged from the previous year [16]. - The number of online stores increased from 20 as of June 30, 2019, to 22 as of June 30, 2020 [10]. Shareholder Information - As of June 30, 2020, major shareholder Ms. Tang Hailun holds 439,224,523 shares, representing approximately 54.90% of the equity [58]. - Asian Glory Holdings Ltd. owns 425,206,524 shares, accounting for about 53.15% of the equity [58]. - The company’s chairman and CEO, Mr. Li Chengyao, is the sole shareholder of Asian Glory, which holds approximately 74.87% of the equity in another entity, Libao International Holdings Ltd. [57]. - The company had 800,000,000 issued shares as of June 30, 2020 [55]. Corporate Governance - The board of directors has adopted the corporate governance code as per the listing rules, ensuring compliance with all provisions except for the separation of the roles of Chairman and CEO, which are currently held by the same individual [42]. - The company has established three board committees: audit committee, remuneration committee, and nomination committee, to oversee specific matters [44]. - The remuneration committee is responsible for advising on the remuneration policies for all directors and senior management [50]. Capital Expenditure and Investments - Capital expenditure for the period was approximately RMB 24.7 million, primarily for renovating existing stores [30]. - The company had no significant investments or plans for major acquisitions or disposals during the reporting period [37]. Employee Information - As of June 30, 2020, the group had approximately 1,900 employees, a decrease from about 2,300 employees as of June 30, 2019 [38]. - Total compensation for internal and outsourced employees was approximately RMB 39.9 million and RMB 48.8 million, respectively, down from RMB 57.5 million and RMB 64.6 million in the previous period [38]. - Total compensation for key management personnel decreased to RMB 5,023,000 in the first half of 2020 from RMB 7,242,000 in the same period of 2019, representing a decline of approximately 30% [137]. Other Financial Metrics - The company recognized share-based payment expenses of RMB 1,134,000 during the six months ended June 30, 2020 [85]. - The company incurred a net cash outflow from investing activities of RMB 24,424,000 for the six months ended June 30, 2020, compared to RMB 27,535,000 in the same period of 2019 [85]. - The company reported a foreign exchange gain of RMB 5,735 thousand for the period, compared to a loss of RMB 3,186 thousand in 2019 [79]. - The company received government subsidies totaling RMB 2,620 thousand during the six months ended June 30, 2020, down from RMB 3,457 thousand in the same period of 2019 [101].
凯知乐国际(02122) - 2020 - 中期财报