Financial Performance - The total revenue for the six months ended June 30, 2024, increased by 8.2% to approximately RMB 55.9 million, compared to RMB 51.7 million for the same period in 2023[6]. - The gross profit margin decreased, leading to a net loss of RMB 23.1 million for the current period, compared to a net loss of RMB 20.6 million for the same period in 2023[4]. - Revenue from health products accounted for 59.7% of total revenue, increasing from 37.0% in the previous year, with sales amounting to RMB 33.4 million[6]. - Revenue for the six months ended June 30, 2024, was RMB 55,949,000, an increase of 8.6% compared to RMB 51,710,000 for the same period in 2023[31]. - Gross profit decreased to RMB 6,298,000, down 62.4% from RMB 16,725,000 year-on-year[31]. - Operating loss for the period was RMB 19,784,000, compared to an operating loss of RMB 15,014,000 in the previous year, reflecting a deterioration of 31.5%[31]. - Total comprehensive loss for the period was RMB 23,394,000, compared to RMB 20,733,000 in the same period last year, representing an increase of 12.8%[32]. - The company reported a loss before tax of RMB 23,122,000 for the six months ended June 30, 2024, compared to a loss of RMB 20,225,000 for the same period in 2023[46][48]. - The company had a net loss attributable to owners of RMB 23,149,000 for the six months ended June 30, 2024, compared to a loss of RMB 20,610,000 for the same period in 2023[50]. Revenue Sources - Revenue from direct sales through distributors was RMB 7.5 million, a 3.1% increase from RMB 7.3 million in the previous year[9]. - Revenue from television platforms dropped significantly by 65.8% to RMB 2.7 million, down from RMB 7.9 million in the previous year[11]. - Online platform sales revenue decreased by 48.5% to RMB 5.5 million from RMB 10.7 million for the six months ended June 30, 2023, due to reduced consumer spending amid poor economic conditions[12]. - Physical sales revenue increased by 61.4% to RMB 40.0 million from RMB 24.8 million for the same period, primarily driven by increased sales of health products[12]. - Kitchenware sales generated RMB 22,555,000, down 30.8% from RMB 32,568,000 in the previous year, while health product sales increased to RMB 33,394,000, up 74.7% from RMB 19,142,000[44]. Economic Environment - The Chinese economy faced challenges, with GDP growth of 4.7% in Q2 2024, below the expected 5.1%[4]. - Retail sales in June 2024 rose only 2%, falling short of the anticipated 3.3% increase[4]. Cost Management - The company plans to continue developing new products that meet consumer demand while implementing strict cost control measures to reduce expenses[4]. - Gross profit margin fell to 11.3% from 32.3%, mainly due to strategic price reductions and a higher proportion of lower-margin health product sales[13]. - Selling and distribution expenses decreased by 35.8% to RMB 10.4 million from RMB 16.2 million, mainly due to reduced agency fees and a lower proportion of sales through television platforms[16]. - Administrative expenses decreased by 16.7% to RMB 9.5 million from RMB 11.4 million, primarily due to reduced employee benefits expenses[17]. - Research and development expenses decreased by 22.2% to RMB 2.8 million from RMB 3.6 million, mainly due to cost control measures implemented by the company[17]. Assets and Liabilities - Trade receivables increased by 38.6% to RMB 41.2 million from RMB 18.4 million, primarily due to health product sales near the reporting period[23]. - Total assets decreased to RMB 153,451,000 as of June 30, 2024, down from RMB 165,740,000 as of December 31, 2023[33]. - Inventory increased significantly to RMB 74,654,000 from RMB 50,180,000, indicating a rise of 48.7%[34]. - Total liabilities increased to RMB 118,638,000 from RMB 107,533,000, reflecting a rise of 10.4%[34]. Shareholder and Corporate Governance - The company has no major acquisitions or investments planned for the mid-term period[28]. - The company did not declare any dividends for the six months ended June 30, 2024[56]. - The company has adopted a set of corporate governance practices in compliance with the corporate governance code, except for the separation of the roles of Chairman and CEO[68]. - The current Chairman and CEO, Ms. Ji, will resign as Chairman effective August 1, 2024, while remaining as Executive Director and CEO[68]. - Mr. Zhao will be appointed as Executive Director, Chairman of the Board, and Chairman of the Nomination Committee effective August 1, 2024[68]. Cash Flow and Financing - Cash used in operating activities was RMB (31,601,000) for the six months ended June 30, 2024, compared to RMB (14,723,000) in the same period of 2023, indicating a significant increase in cash outflow[38]. - The company’s cash and cash equivalents decreased to RMB 2,835,000 as of June 30, 2024, down from RMB 6,983,000 at the end of the previous year[38]. - The company issued shares resulting in net proceeds of RMB 12,263,000 in the previous year, while no such proceeds were recorded in the current period[38]. - The company completed a placement of 42,310,000 new shares at a price of HKD 0.52 per share, raising approximately HKD 21.0 million, with 95.2% of the net proceeds intended for repaying other borrowings[57]. - Approximately 95.2% of the net proceeds, or HKD 20.0 million, will be used to repay other borrowings of the group[69]. - The remaining 4.8%, or HKD 1.0 million, will be allocated for general working capital[69].
智慧健康科技(01715) - 2024 - 中期财报