Financial Performance - The revenue from continuing operations for the first half of 2024 was RMB 254.3 million, a decrease of 25.8% compared to RMB 342.8 million in the same period of 2023[23]. - The group's gross profit from continuing operations for the first half of 2024 was RMB 173.4 million, a decrease of 22.1% compared to RMB 222.6 million in the same period of 2023[24]. - The gross profit margin for the first half of 2024 was 68.2%, an increase of 3.3 percentage points from 64.9% in the same period of 2023[24]. - Total operating expenses for the first half of 2024 were RMB 169.3 million, down 22.6% from RMB 218.8 million in the same period of 2023[24]. - The total comprehensive income for the first half of 2024 was RMB 8.5 million, compared to a total comprehensive loss of RMB 174.5 million in the same period of 2023[24]. - Revenue from the four tea products was RMB 135.4 million, a decrease of 17.1% year-on-year, while revenue from weight loss products was RMB 82.1 million, down 29.3% year-on-year[25]. - The company achieved a comprehensive income attributable to owners of RMB 8.5 million in the first half of 2024, a growth of 66.7% from RMB 5.1 million in the same period of 2023[25]. - The company reported a significant increase in total revenue from RMB 342,828,000 for the six months ended June 30, 2023, to RMB 254,286,000 for the same period in 2024, indicating a decline in performance[92]. - The company recorded a loss of RMB 116,219 thousand during the period, compared to a loss of RMB 7,813 thousand in the previous period[73]. Operational Highlights - The company has established partnerships covering nearly 290,000 OTC pharmacies and medical third-party terminals across 31 provinces, regions, and municipalities in China[2]. - The company operates 63 online stores across 18 e-commerce platforms, enhancing its market presence and product sales[2]. - The company continues to focus on herbal health and weight management, expanding its product line with new offerings such as Orlistat weight loss medication and probiotics[1]. - The company aims to maintain its industry-leading position by embracing new retail formats like Douyin and Kuaishou[2]. - The company expanded its offline OTC business to nearly 290,000 pharmacies across 31 provinces, regions, and municipalities in China[25]. - The e-commerce business operated 63 stores across 18 platforms for the sale of its products in the first half of 2024[25]. - The company implemented a new partner model for its e-commerce operations, leading to significant improvements in operational efficiency and cost reduction[29]. Research and Development - The company has received 26 health food approvals and holds 114 patents, including 20 invention patents, demonstrating its commitment to innovation[2]. - The company continued to advance R&D collaborations with universities, focusing on the scientific validation of health products, demonstrating significant efficacy in reducing disease risk factors[41]. - The company published 2 academic papers and obtained 1 utility model patent in the first half of 2024, supporting the development of new health products[42]. Marketing and Brand Strategy - The brand "Besunyen" has been recognized as a "China Famous Trademark" and has been awarded multiple accolades for credibility in the health product sector[2]. - The company is committed to providing high-quality health products and services, positioning itself as a leader in the health industry[2]. - The company targeted business professionals by advertising in high-end office elevators, effectively reaching the target audience and enhancing brand recall[36]. - The company expanded its marketing efforts in lower-tier cities, integrating products and services with local pharmacies to enhance consumer health awareness[37]. - The company implemented a content marketing strategy across social media platforms, driving sales growth for products like B420 coffee and PQQ cross-border products[39]. - The company established a deep partnership with influencers on Douyin, significantly enhancing brand exposure and achieving leading sales in the probiotic coffee category[32]. - During the Women's Day promotion, the company collaborated with top influencers on Kuaishou, achieving a single event sales GMV exceeding 20 million[33]. Financial Position and Cash Flow - Net cash inflow from operating activities for continuing operations was RMB 12.35 million in the first half of 2024, a significant decrease from RMB 44.31 million in the same period of 2023[56]. - The ending cash and cash equivalents balance was RMB 184.52 million as of June 30, 2024, down from RMB 264.96 million at the end of the same period in 2023[56]. - The Group's cash and cash equivalents, including bank balances, were RMB 2,481 million as of June 30, 2024, down from RMB 2,885 million as of December 31, 2023[58]. - Total inventory as of June 30, 2024, was RMB 198.58 million, down from RMB 235.69 million as of December 31, 2023[60]. - The Group's debt-to-asset ratio was 16.9% as of June 30, 2024, compared to 21.4% as of December 31, 2023[63]. - The company reported a net cash inflow from operating activities of RMB 12,354 thousand for the six months ended June 30, 2024, down from RMB 44,314 thousand in the same period of 2023, a decrease of about 72%[74]. - Cash and cash equivalents at the end of the period were RMB 184,518 thousand, compared to RMB 264,961 thousand at the end of the previous year, a decrease of approximately 30%[75]. Employee and Administrative Expenses - Employee benefits expenses decreased by RMB 48.2 million in the first half of 2024 compared to the first half of 2023, primarily due to a reduction in the number of sales personnel[50]. - Total administrative expenses for the first half of 2024 amounted to RMB 43.4 million, a 13.6% increase from RMB 38.2 million in the first half of 2023, mainly due to higher professional and consulting service fees[50]. - The group had 151 employees as of June 30, 2024, down from 179 employees as of December 31, 2023[66]. - Employee costs for the six months ended June 30, 2024, were RMB 24.5 million, a decrease of 70% from RMB 81.6 million in the same period of 2023[66]. Shareholder Information - The board proposed an interim dividend of HKD 0.9 per share, totaling approximately HKD 110,039,000, subject to shareholder approval[131]. - The total number of issued shares is 122,265,585[146]. - Zhao Yihong holds 62,975,657 shares, representing 51.51% of the total issued shares[145]. - Foreshore Holding Group Limited and its associated entities collectively own 61,219,437 shares, accounting for 50.07% of the total issued shares[147]. - The share option plan allows for a maximum issuance of 12,226,558 shares, which is 10% of the total issued shares[152]. - The share option plan was approved on April 11, 2024, and is valid for ten years[149]. - Each eligible participant in the share option plan can receive options not exceeding 1% of the total issued shares within any twelve-month period[153]. Compliance and Governance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO[162][163]. - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal controls[164]. - The interim financial information for the six months ending June 30, 2024, has been reviewed by the auditors[165]. - The board has confirmed compliance with the standard code of conduct for securities transactions by directors for the six months ending June 30, 2024[166].
碧生源(00926) - 2024 - 中期财报