Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 69,354,000, a decrease of 17.4% compared to RMB 83,988,000 in the same period of 2023[6]. - The gross profit for the same period was RMB 53,498,000, down 15.2% from RMB 63,063,000 year-on-year[6]. - The net loss attributable to shareholders was RMB 40,402,000, a significant reduction of 93.0% compared to a net loss of RMB 578,832,000 in the previous year[6]. - Total revenue for the first half of 2024 was RMB 693.54 million, down from RMB 839.88 million in the same period of 2023, reflecting a 2.0% decrease[12]. - The total comprehensive income for the first half of 2024 was a loss of RMB 40,402,000, compared to a loss of RMB 578,832,000 in the same period of 2023, showing significant improvement[60]. - The net profit attributable to the parent company for the first half of 2024 was a loss of RMB 13,341,000, improving from a loss of RMB 565,165,000 in the same period of 2023[60]. Assets and Liabilities - As of June 30, 2024, the total assets of the company were RMB 555,880,000, a decrease of 7.0% from RMB 597,849,000 at the end of 2023[6]. - The current liabilities as of June 30, 2024, were RMB 3,430.4 million, slightly down from RMB 3,436.2 million as of December 31, 2023[18]. - Total liabilities slightly decreased from RMB 3,922,857,000 to RMB 3,921,290,000, a change of approximately 0.04%[54]. - The total equity attributable to shareholders decreased from RMB (3,240,854,000) to RMB (3,254,195,000), reflecting a decline of approximately 0.4%[55]. - The bank borrowings amount to RMB 1,077.6 million as of June 30, 2024, unchanged from RMB 1,077.6 million as of December 31, 2023, primarily consisting of loans due within one year[20]. Operational Changes - The number of operational outlets decreased by 28.6%, from 217 at the end of 2023 to 155 as of June 30, 2024[9]. - The number of retail outlets in first-tier cities dropped from 31 to 19, a decrease of 38.7%[26]. - The number of retail outlets in second-tier cities decreased from 73 to 57, a decline of 21.9%[26]. - The number of retail outlets for the brand La Chapelle decreased by 34, accounting for 54.8% of the total net closures in the first half of 2024[29]. Revenue Segmentation - Revenue from the brand comprehensive services segment was RMB 30,185,000, accounting for 43.5% of total revenue[10]. - Revenue from specialty stores decreased from RMB 223 million in the first half of 2023 to RMB 123 million in the first half of 2024, a decline of 44.9%[11]. - Online revenue dropped significantly from RMB 64 million in the first half of 2023 to RMB 13 million in the first half of 2024, a decrease of 80.1%[11]. - Franchise and joint venture revenue increased from RMB 74 million in the first half of 2023 to RMB 119 million in the first half of 2024, an increase of 60.4%[11]. - Revenue from the La Chapelle brand accounted for 55.9% of total revenue in the first half of 2024, with a gross margin of 75.5%[12]. Cost Management - The group's operating costs decreased from RMB 209 million in the first half of 2023 to RMB 159 million in the first half of 2024, a reduction of 24.2%[17]. - The company's financial expenses for the first half of 2024 were RMB 37,810,000, down from RMB 47,057,000 in the same period of 2023, indicating a decrease of 19.5%[59]. - The company's sales expenses for the first half of 2024 were RMB 34,370,000, a decrease of 32% compared to RMB 50,613,000 in the same period of 2023[59]. Restructuring Efforts - The company is actively pursuing restructuring efforts to stabilize its core business and promote innovation[7]. - The company plans to actively promote restructuring efforts to alleviate historical debt burdens and improve operational capabilities[30]. - The restructuring investment agreement has been signed with investors, and a draft restructuring plan will be submitted for creditor approval[31]. - The company aims to divest inefficient assets to enhance asset quality post-restructuring[32]. Legal and Compliance Issues - The company has faced multiple legal disputes, including a loan contract dispute with Citic Bank, which has resulted in a first-instance judgment received on August 1, 2023[22]. - The company is involved in a rental contract dispute with a real estate development company, which has resulted in a retrial judgment[22]. - The company has 96 frozen bank accounts with a total frozen amount of approximately RMB 5.47 million as of June 30, 2024[24]. - The company is involved in 13 litigation cases affecting one property with a book value of approximately RMB 213 million, which is at risk of judicial auction[24]. Shareholder Information - As of June 30, 2024, major shareholders include Shanghai Qijin Enterprise Management Partnership with 85,200,000 shares, representing 25.59% of the total shares[38]. - The company does not recommend any dividend distribution for the six months ending June 30, 2024, consistent with the previous period[42]. Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules, except for the lack of insurance for directors against legal actions, which the board deemed not cost-effective[45]. - All directors and supervisors confirmed compliance with the company's securities trading policy for the six months ending June 30, 2024[46]. - The audit committee reviewed the unaudited interim results for the six months ending June 30, 2024, discussing accounting standards and internal controls with management[48]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2024, totaled RMB 31.4 million, down from RMB 41.6 million as of December 31, 2023[18]. - The average inventory turnover days increased to 187 days in the first half of 2024, compared to 133 days in the first half of 2023[18]. - Cash flow from operating activities showed a net outflow of RMB 8,312,000, compared to a smaller outflow of RMB 1,572,000 in the first half of 2023[62]. - The company did not report any cash inflows from financing activities, indicating a focus on internal cash management[63]. Accounting Policies - The accounting basis for the financial statements is based on actual transactions and events, following the relevant accounting standards[86]. - The company prepares consolidated financial statements based on its own and subsidiaries' financial reports, ensuring consistency in accounting policies and periods[104]. - The company recognizes revenue from contracts with sales return clauses by excluding expected returns from the recognized revenue[194]. - The company assesses whether it acts as a principal or agent in transactions based on control over the goods or services before transfer[196].
拉夏贝尔(06116) - 2024 - 中期财报