Financial Performance - For the six months ended June 30, 2024, total revenue was RMB 164.6 million, a decrease of 13.9% compared to RMB 191.2 million in 2023[3]. - Gross profit for the same period was RMB 39.3 million, down 12.7% from RMB 45.0 million in 2023, with a gross profit margin of 23.9%[3]. - The company reported a net loss attributable to equity holders of RMB 768, compared to a profit of RMB 191.2 million in the previous year[3]. - For the six months ended June 30, 2024, total revenue was approximately RMB 164.6 million, a decrease of 13.9% compared to RMB 191.2 million for the same period in 2023[43]. - Profit attributable to equity holders for the six months ended June 30, 2024, was approximately RMB 0.8 million, a turnaround from a loss of RMB 3.1 million in the same period of 2023[45]. - The company reported a total comprehensive income of RMB 435,000, compared to a loss of RMB 4,046,000 in the same period of 2023, indicating a significant recovery[50]. - The profit before income tax was RMB 768,000, compared to a loss of RMB 3,140,000 in the same period of 2023[86]. Revenue Breakdown - The CMS business contributed 57.7% of total revenue, with revenue decreasing from approximately RMB 119.4 million to RMB 95.0 million, a decline of 20.4%[6]. - Revenue from the OBM business decreased from approximately RMB 71.8 million to RMB 69.6 million, representing a decrease of 3.0%[7]. - Sales of fabric care, personal hygiene, and home care products decreased by approximately RMB 5.8 million or 26.0% due to underperformance on domestic e-commerce platforms[8]. - Total revenue from CMS business decreased by approximately 20.4% from RMB 119.4 million to RMB 95.0 million, contributing 57.7% of total revenue[9]. - Revenue from OBM business decreased by approximately 3.0% from RMB 71.8 million to RMB 69.6 million[9]. - Sales of main products, including wigs and garments, decreased by approximately RMB 25.3 million or 21.4%[9]. - Revenue from wigs was RMB 10,195,000, down from RMB 13,071,000, representing a decline of 22.1%[76]. - Revenue from clothing and others was RMB 137,994,000, a decrease of 11.4% from RMB 155,879,000[76]. - Revenue from fabric care, personal hygiene, and home care products was RMB 16,450,000, down from RMB 22,239,000, reflecting a decline of 26.0%[76]. Expenses and Costs - Selling expenses represented approximately 2.8% of revenue for the six months ended June 30, 2024, up from 2.2% in 2023, mainly due to increased advertising expenses[15]. - Administrative and other operating expenses decreased by approximately RMB 4.7 million from RMB 39.7 million to RMB 35.0 million[16]. - Impairment loss on property, plant, and equipment recognized at approximately RMB 6.0 million due to reduced turnover affecting recoverable amounts[19]. - Finance costs decreased by approximately RMB 1.7 million from RMB 1.9 million to RMB 0.2 million, primarily due to reduced interest payments on short-term borrowings[21]. - The cost of inventories recognized as an expense decreased to RMB 93,999,000 from RMB 96,386,000, representing a reduction of approximately 2.9%[81]. - Depreciation for property, plant, and equipment decreased to RMB 7,844,000 from RMB 11,606,000, a decline of about 32.3%[81]. Assets and Liabilities - Total assets increased by 10.1% to RMB 498.1 million as of June 30, 2024, compared to RMB 452.5 million at the end of 2023[3]. - Total liabilities rose by 57.0% to RMB 65.2 million, up from RMB 41.4 million in 2023[3]. - Current assets increased to RMB 169,960,000 as of June 30, 2024, up from RMB 133,308,000 at the end of 2023, reflecting improved liquidity[51]. - Trade and other receivables rose significantly to RMB 113,051,000 from RMB 60,514,000, indicating stronger sales performance[51]. - Net assets increased to RMB 432,901,000 as of June 30, 2024, compared to RMB 411,080,000 at the end of 2023, showing growth in equity[52]. - The Group's total bank borrowings as of June 30, 2024, were approximately RMB 18.0 million, an increase from approximately RMB 8.2 million as of December 31, 2023[24]. - The current ratio decreased to 262.4% from 326.4%, reflecting a decline of 64.0 percentage points[3]. - The Group's right-of-use assets, buildings, and investment properties pledged for bank loans had carrying values of approximately RMB4.5 million, RMB59.8 million, and RMB34.4 million respectively[28]. Cash Flow and Financing - Bank balances and cash decreased by 26.8% to RMB 36.2 million from RMB 49.5 million[3]. - As of June 30, 2024, the total cash and cash equivalents of the Group were approximately RMB36.2 million, a decrease of approximately RMB13.3 million compared to December 31, 2023[24]. - The company generated RMB 18,000,000 from borrowings and RMB 21,907,000 from the issuance of shares during the financing activities[56]. - The company incurred a cash outflow of RMB 34,104,000 from investing activities, primarily due to the purchase of property, plant, and equipment[56]. - The company reported an operating cash flow of RMB (10,309,000) for the first half of 2024, a significant decline from RMB 36,235,000 in the same period of 2023[56]. - Cash and cash equivalents at the end of the period decreased to RMB 36,184,000 from RMB 117,643,000 in the previous year[57]. Share Capital and Equity - The Company issued 295,542,000 ordinary shares at a price of HK$0.08 per share on May 3, 2024, raising net proceeds of approximately HK$23.1 million[35]. - The total issued and fully paid shares increased to 1,773,263,120 as of June 30, 2024, from 1,477,721,120 as of December 31, 2023[140]. - The weighted average number of ordinary shares in issue during the period increased to 1,573,529,000 from 1,392,857,000, an increase of approximately 13%[86]. - The Company reported a total equity of RMB 432,901,000, up from RMB 411,080,000, reflecting a solid capital position[52]. - The company recognized other comprehensive income of RMB 962,000 for the period, compared to an expense of RMB (917,000) in the previous year, indicating improved foreign exchange performance[50]. Strategic Initiatives - The company plans to diversify its business and broaden revenue streams through acquisitions of intellectual property rights and collaborations with upstream and downstream companies[47]. - The company aims to improve operational efficiency and effectiveness in the second half of 2024[48]. - The company continues to explore market expansion opportunities and new product development strategies to enhance revenue streams[76]. - The company will continue to evaluate and identify target companies for potential investment to generate synergies within the industry[47]. Market Conditions - The global economic outlook remains uncertain, with risks from geopolitical conflicts and market conditions affecting future performance[46].
中国派对文化(01532) - 2024 - 中期财报