Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 82.3 million, a decrease of 27.6% compared to RMB 113.7 million in 2023[1] - Gross profit for the same period was RMB 49.7 million, down 30.3% from RMB 71.3 million in 2023, with a gross margin of 60.4%[1][2] - Operating loss was RMB 48.8 million, slightly improved by 1.2% from a loss of RMB 49.4 million in the previous year[1][2] - Loss attributable to equity holders of the parent was RMB 42.4 million, a reduction of 37.7% compared to RMB 68.1 million in 2023[1][2] - Basic loss per share was RMB 1.29, down from RMB 2.07 in the same period last year, reflecting a 37.7% improvement[1][2] - The company reported a net loss before tax of RMB 43,469,000 for the six months ended June 30, 2024, compared to a loss of RMB 39,373,000 in the same period of 2023[12] - The group reported a pre-tax loss of RMB 42,396,000 for the six months ended June 30, 2024, compared to a loss of RMB 68,080,000 for the same period in 2023, indicating a reduction in losses by approximately 37.8%[24] - The group reported a loss for the period of RMB 42.7 million, compared to a loss of RMB 68.2 million in the previous period[48] Revenue Breakdown - For the six months ending June 30, 2024, the total revenue was RMB 82,264,000, with the apparel segment contributing RMB 82,264,000 and no revenue from the property development segment[10] - The apparel segment reported a loss of RMB 51,501,000, while the property development segment generated a profit of RMB 5,000, resulting in a total segment loss of RMB 51,496,000[10] - Revenue from self-operated retail points decreased from RMB 95.0 million to RMB 66.4 million, a decline of approximately 30.1%, accounting for about 80.7% of total revenue[37] - Revenue from third-party retail sales decreased by RMB 1.0 million to RMB 4.0 million, a decline of approximately 20.0%, accounting for about 4.9% of total revenue[38] - Revenue from online sales decreased by RMB 1.8 million to RMB 11.9 million, a decline of approximately 13.1%, accounting for about 14.4% of total revenue[38] - Revenue from proprietary brands decreased by RMB 17.0 million to RMB 56.1 million, a decline of approximately 23.3%, while the percentage of total revenue from proprietary brands increased from 64.3% to 68.2%[40] Assets and Liabilities - Total non-current assets as of June 30, 2024, amounted to RMB 452.8 million, an increase from RMB 418.0 million at the end of 2023[4] - Current assets decreased to RMB 837.9 million from RMB 906.5 million, indicating a decline of 7.6%[4] - Total liabilities increased to RMB 249.3 million from RMB 183.3 million, reflecting a rise of 36.0%[4][5] - Total equity decreased to RMB 1,031.1 million from RMB 1,130.9 million, a decline of 8.8%[5][6] - Total assets as of June 30, 2024, amounted to RMB 1,290,705,000, down from RMB 1,416,404,000 as of December 31, 2023[15] Operational Highlights - The company has not reported any significant changes in its main business operations during the reporting period[7] - The company focuses on the design, production, marketing, and sales of apparel products and accessories, primarily targeting men's clothing in China[7] - The company’s trade receivables impairment loss for the six months ended June 30, 2024, was RMB 782,000, indicating a focus on managing credit risk[12] - The company’s total liabilities as of June 30, 2024, were RMB 259,608,000, compared to RMB 202,626,000 as of June 30, 2023[12] - The company’s capitalized interest expense offset was RMB 38,783,000, reflecting financial management strategies[12] Expenses and Cost Management - Cost of goods sold decreased to RMB 15,461,000 from RMB 29,999,000, representing a decline of 48.5% year-over-year[20] - Employee benefits expenses, including salaries and wages, decreased to RMB 15,316,000 from RMB 15,191,000, showing a slight increase of 0.8%[20] - Selling and distribution expenses decreased by RMB 16.5 million to RMB 68.7 million, a decline of approximately 19.4%[43] - Administrative expenses increased by RMB 2.6 million to RMB 27.6 million, an increase of approximately 10.4%[44] Cash Flow and Investments - The net cash flow from operating activities decreased from RMB 11.3 million for the six months ended June 30, 2023, to RMB 1.2 million for the corresponding period in 2024, primarily due to an increase in inventory[52] - The cash flow from investment activities was RMB 237.2 million, offset by an increase in short-term deposits of RMB 127.6 million and capital contributions to partnerships of RMB 55.0 million[53] Corporate Governance and Shareholder Relations - The company has complied with corporate governance codes, except for the separation of the roles of Chairman and CEO, which are held by the same individual[75] - The board does not recommend any interim dividend for the reporting period[73] - The company expressed gratitude to employees for their dedication and hard work during challenging times[80] - The board acknowledged the continuous support from shareholders, customers, suppliers, and business partners[80] - The company emphasized the importance of its workforce as its most valuable asset[80] - The chairman highlighted the commitment of the management team and employees throughout the period[80] Market Conditions - The gross domestic product (GDP) growth rate in China decreased to 5.0% for the six months ended June 30, 2024, down from 5.5% for the same period in 2023[35] - Retail sales growth rate in China fell to 3.7% for the six months ended June 30, 2024, down from 8.2% for the same period in 2023[35]
中国服饰控股(01146) - 2024 - 中期业绩