Financial Performance - Revenue for the reporting period decreased by 15.2% to approximately RMB 493.7 million from RMB 581.9 million, attributed to weak market conditions and cautious consumer spending[16]. - Revenue for the six months ended June 30, 2024, was RMB 493,652 thousand, a decrease of 15.1% compared to RMB 581,872 thousand in the same period of 2023[64]. - Gross profit for the same period was RMB 167,910 thousand, down from RMB 196,851 thousand, reflecting a gross margin decline[64]. - The company recorded a loss of approximately RMB 80.2 million for the reporting period, compared to a loss of RMB 82.9 million in the previous period[27]. - Net loss for the period was RMB 80,220 thousand, slightly improved from RMB 82,869 thousand in the previous year[64]. - The company reported a net loss of RMB 82,869,000 for the six months ended June 30, 2024, compared to a net loss of RMB 82,689,000 in the same period of 2023[91]. Operational Efficiency - Gross margin improved from 33.8% in the previous period to 34.0% in the reporting period, despite inventory clearance activities impacting short-term margins[6]. - The organization is enhancing operational efficiency and optimizing its structure to maintain resilience in a challenging market[6]. - Operating loss narrowed to RMB 72,580 thousand from RMB 76,503 thousand year-over-year, indicating improved operational efficiency[64]. - The company continues to adapt its business model to changing consumer behavior, focusing on cost-effectiveness and value[6]. Inventory and Cash Management - Inventory backlog decreased by 10.8%, with inventory turnover days reduced to 159 days and cash conversion cycle improved to 117 days[6]. - Inventory turnover days decreased from 189 days to 159 days, while trade receivables turnover days increased from 19 days to 20 days[28]. - As of June 30, 2024, the company's cash position was approximately RMB 21.9 million, down from RMB 24.5 million at the end of 2023[31]. - Cash and cash equivalents decreased to RMB 19,271 thousand from RMB 21,937 thousand, indicating a tightening liquidity position[65]. - The company reported a net cash outflow from operating activities of RMB (6,874) thousand for the six months ended June 30, 2024, compared to a net inflow of RMB 32,684 thousand for the same period in 2023[68]. Debt and Equity - As of June 30, 2024, the company's net debt stood at approximately RMB 285.1 million, an increase from RMB 230.0 million as of December 31, 2023[33]. - The company's debt-to-equity ratio was approximately 817.3% as of June 30, 2024, compared to 203.0% as of December 31, 2023[33]. - The total equity of the company was RMB 34.9 million as of June 30, 2024, down from RMB 113.3 million as of December 31, 2023[33]. - Total bank borrowings as of June 30, 2024, amount to RMB 94,818,000, an increase of 23.6% from RMB 76,655,000 as of December 31, 2023[107]. Share Options and Equity Structure - The total number of issued shares is 800,000,000[50]. - The company has granted a total of 28,500,000 share options under the pre-IPO share option plan, with 3.6% of the total issued shares as of the reporting date being available for issuance[57]. - The company has a total of 800,000,000 issued and fully paid shares as of June 30, 2024, unchanged from previous periods[111]. - The company has granted a total of 47,500,000 share options under the pre-IPO share option scheme, recognizing contributions from eligible participants[113]. Employee and Management Costs - The total payroll for internal and outsourced employees was approximately RMB 48.0 million and RMB 37.4 million, respectively, for the reporting period[39]. - The total compensation for directors and key management personnel for the period is RMB 6,757,000, an increase from RMB 5,749,000 in the previous year[125]. - The company’s total expenses related to employee benefits, including director remuneration, amounted to RMB 48,028,000, a decrease from RMB 51,099,000 in the prior year[88]. Market and Sales Channels - Online retail revenue grew by 5.1% during the reporting period, reflecting the company's efforts to expand sales channels[6]. - Distributor revenue increased by 39.2% in the reporting period, supported by strengthened partnerships and optimized product offerings[6]. - The number of self-operated retail points decreased to 535 from 571 year-on-year, while online stores increased to 34 from 28[7]. - The company operates 304 distributors, down from 344 year-on-year, with over 1,300 retail points selling its products[7]. Future Outlook and Strategies - The group plans to implement marketing activities in the second half of 2024 to promote inventory sales and strengthen working capital[72]. - The group is actively negotiating with banks to ensure the renewal of loans maturing within the next twelve months, expecting no significant difficulties in obtaining renewals[72]. - The group is exploring alternative financing and bank loans to cover existing financial obligations and future operational and capital expenditures[72].
凯知乐国际(02122) - 2024 - 中期财报