2021-09-28 08:45Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 1,772,577, representing a 116.8% increase compared to RMB 817,791 in the same period of 2020[17] - Gross profit for the same period was RMB 1,117,065, up 109.4% from RMB 533,439 year-on-year[17] - Operating profit increased by 133.6% to RMB 486,687 from RMB 208,368 in the previous year[17] - Profit for the period reached RMB 358,798, a 154.0% increase compared to RMB 141,284 in 2020[17] - Non-IFRS adjusted net profit was RMB 435,189, reflecting a 144.1% increase from RMB 178,267 in the prior year[17] - The gross profit margin for the period was 63.0%, slightly down from 65.2% in the previous year[17] - The company reported a net profit margin of 20.2%, compared to 17.3% in the same period last year[17] - Total comprehensive income for the period was RMB 304,325, compared to RMB 126,233 in the prior year, showing a growth of 141.5%[119] - Basic earnings per share increased to 26.04 RMB cents, up from 12.28 RMB cents, reflecting a growth of 112.5%[119] Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 7,640,984, a 9.6% increase from RMB 6,971,299 at the end of 2020[18] - Total equity increased to RMB 6,314,677, up 3.0% from RMB 6,131,002 at the end of 2020[18] - Non-current liabilities rose by 33.8% to RMB 234,141, while current liabilities increased by 64.2% to RMB 1,092,166[18] - Total liabilities increased significantly to RMB 1,326,307 from RMB 840,297, marking an increase of approximately 57.7%[123] - Current liabilities rose to RMB 1,092,166, up from RMB 665,313, reflecting a growth of around 64.2%[123] - Non-current liabilities increased to RMB 234,141 from RMB 174,984, which is an increase of about 33.8%[123] Revenue Sources - Revenue from retail stores increased by 115.5% year on year from RMB 313.3 million in H1 2020 to RMB 675.3 million in H1 2021, with a total of 215 retail stores as of June 30, 2021, up from 136 stores[34] - Revenue from online channels, including e-commerce platforms, was RMB 353.3 million, representing a year-on-year increase of 104.7%[21] - Revenue from roboshops rose by 115.7% year on year from RMB 105.5 million in H1 2020 to RMB 227.6 million in H1 2021, with a total of 1,477 roboshops as of June 30, 2021, an increase of 476 from the previous year[35] - Revenue from wholesales and others surged by 195.9% from RMB 64.7 million in H1 2020 to RMB 191.5 million in H1 2021, driven by a 241.4% increase in Mainland China revenue[39] - Revenue from propriety products accounted for 89.3% of total revenue, increasing by 130.4% from RMB 686.9 million in H1 2020 to RMB 1,582.4 million in H1 2021[41] Employee and Operational Expenses - Employee benefit expenses increased by 172.9% from RMB 39.8 million in H1 2020 to RMB 108.6 million in H1 2021, driven by an increase in sales personnel from 1,071 to 1,909[52] - Distribution and selling expenses surged by 88.3% from RMB 223.0 million in H1 2020 to RMB 419.8 million in H1 2021[51] - General and administrative expenses increased by 91.1% from RMB 125.4 million in H1 2020 to RMB 239.7 million in H1 2021[52] - Employee benefit expenses within general and administrative expenses rose by 204.1% from RMB 55.9 million in H1 2020 to RMB 170.0 million in H1 2021, due to an increase in administrative and design personnel from 617 to 1,211[52] Cash Flow and Investments - Cash generated from operations for the six months ended June 30, 2021, was RMB 554,706,000, a significant increase from RMB 219,855,000 in the same period of 2020[131] - Net cash generated from operating activities reached RMB 441,657,000, compared to RMB 122,191,000 in the prior year, indicating strong operational performance[131] - Total cash flows used in investing activities amounted to RMB 4,498,407,000, a substantial increase from RMB 48,259,000 in the previous year, reflecting aggressive investment strategies[132] - The company invested RMB 1,017,806,000 in financial assets at fair value through profit or loss, highlighting a focus on strategic asset allocation[131] Corporate Governance - The Company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2021, except for a deviation from code provision A.2.1[84] - The Board believes that the current structure of having the same individual as Chairman and Chief Executive Officer will not impair the balance of power and authority[86] - The Company is committed to enhancing its corporate governance practices and reviewing them to ensure compliance with statutory and professional standards[89] Future Strategies - The company aims to enhance brand loyalty and maintain a strong market position by enriching its IP types and expanding its IP base[77] - Future strategies include improving user shopping experience, enhancing member expansion, and promoting innovative retail digitalized operations[77] - The company plans to increase brand awareness and market share in the overseas pop toy market through localized operations[77] - The company will explore more business models and product types that meet local market needs by collaborating with local partners and artists[77]