Financial Performance - In the first half of fiscal year 2024/25, the total revenue of the Group decreased by 27.3% year-on-year to RMB149,600,000, down from RMB205,800,000 in 2023/24[9]. - Consolidated gross profit decreased by 41.1% year-on-year to RMB79,400,000, compared to RMB134,900,000 in the previous year[9]. - The overall gross profit margin was 53.1%, representing a decrease of 12.4 percentage points from 65.5% in the corresponding period of last year[11]. - The consolidated loss attributable to owners of the Company was RMB38,000,000, compared to a loss of RMB13,900,000 in 2023/24[9]. - The basic loss per share was RMB (5.39) cents, compared to RMB (1.96) cents in the previous year[11]. - Total revenue decreased by 27.3% year-on-year to RMB 149,600,000, with a consolidated gross profit down 41.1% to RMB 79,400,000, resulting in a gross margin of 53.1%, a decrease of 12.4 percentage points[15]. - The Group recorded a consolidated loss attributable to owners of RMB 38,000,000, compared to a loss of RMB 13,900,000 in the previous year, with a basic loss per share of RMB 5.39 cents[21]. - For the six months ended 31 August 2024, the total comprehensive loss was RMB 45,363,000, compared to a gain of RMB 2,706,000 in the same period last year[69]. - For the six months ended 31 August 2024, the loss attributable to owners of the Company was RMB 38,038,000, compared to RMB 13,853,000 for the same period in 2023, representing a significant increase in loss[133]. - The basic loss per share for the six months ended 31 August 2024 was RMB (5.39) cents, compared to RMB (1.96) cents for the same period in 2023, indicating a deterioration in financial performance[133]. Expenses and Cost Management - Selling and distribution expenses decreased by 22.9% year-on-year to RMB83,300,000, while the ratio of these expenses to total revenue increased by 3.2 percentage points to 55.7%[13]. - General and administrative expenses increased by 0.7% to RMB41,800,000, leading to a rise in the ratio of these expenses to total revenue by 7.8 percentage points to 28.0%[14]. - Sales and distribution expenses fell by 22.9% to RMB 83,300,000, with the expense ratio increasing by 3.2 percentage points to 55.7% due to one-time employee compensation and higher sales commissions[15]. - General and administrative expenses increased by 0.7% to RMB 41,800,000, leading to an expense ratio rise of 7.8 percentage points to 28.0%[16]. - The Group's total employee benefit expenses for the six months ended August 31, 2024, amounted to RMB 59,300,000, a decrease from RMB 63,200,000 in the previous year[62]. Retail Market Conditions - The Group's continuing sluggish retail market in Mainland China significantly impacted total retail sales, prompting higher retail discounts to clear slow-moving inventories[12]. - Same store sales declined by 19.5%, contrasting with a 13.5% increase in the previous year[33]. - Retail sales of garments, footwear, hats, and knitwear have shown signs of decline since April 2024, continuing negative growth until August 2024[39]. - Retail sales through department stores and brand specialty stores dropped by 3.3% and 1.9% year-on-year, respectively[39]. - The Chinese government's policies aimed at boosting domestic demand have not benefitted the entire retail and footwear industry[33]. Inventory and Cash Management - As of August 31, 2024, the Group's inventory balance was RMB 119,000,000, a significant decrease of approximately 38.1% from RMB 192,300,000 the previous year[25]. - The proportion of inventory aged less than one year decreased by 12.8 percentage points to 42.2%[26]. - The Group's cash and bank balances amounted to RMB 336,300,000, with a quick ratio of 3.9 times, indicating a strong liquidity position[28]. - The Group's cash and bank balances as of August 31, 2024, were RMB 336,300,000, down from RMB 364,700,000 on February 29, 2024[30]. - The current ratio was 3.9 times as of August 31, 2024, compared to 4.0 times on February 29, 2024[30]. - The Group plans to actively reduce excess off-season inventory to accelerate inventory turnover and strengthen cash flow, while avoiding low-priced selling strategies that could degrade brand value[54]. Strategic Initiatives - The Group aims to enhance its market position through strategic adjustments in response to the challenging retail environment[12]. - The Group plans to optimize supply chain management and improve procurement planning to enhance product quality and customer confidence[51]. - The Group aims to establish a better brand reputation by providing high-quality products that meet current footwear trends[50]. - The Group is consolidating its logistics chain to streamline procurement, transportation, and warehousing processes, reducing costs[51]. - The Group will continue to review brand positioning and introduce new sales and marketing plans to maintain market share in ladies' fashion footwear[50]. - The Group is enhancing its CRM system to better understand customer needs and improve sales success rates[47]. - The Group will explore new consumer product types to diversify its product portfolio and meet market demands[56]. Corporate Governance and Management - The Board is committed to maintaining high standards of corporate governance to protect shareholder interests[171]. - The Company emphasizes transparency and accountability in its corporate governance practices[171]. - The position of Chief Executive Officer has been vacant since October 2019, with responsibilities taken up by other executive Directors[172]. - The Audit Committee comprises four independent non-executive Directors, ensuring oversight of financial information and internal controls[173]. - The Audit Committee reviewed and recommended approval of the unaudited condensed consolidated interim financial information for the six months ended 31 August 2024[177]. - The Company has complied with the Corporate Governance Code, with a focus on transparency and accountability to enhance shareholder value[174]. - All Directors confirmed compliance with the Code of Conduct and the Model Code during the reporting period[186]. Shareholder Information - As of August 31, 2024, Mr. Li Wing Yeung holds a total of 60,920,200 shares, representing approximately 8.63% of the issued share capital of the company[155]. - Ms. Chui Kwan Ho holds 5,779,000 shares, accounting for about 0.81% of the issued share capital[155]. - Mr. Leung Wai Ki has an interest in 1,700,000 shares, which is approximately 0.24% of the issued share capital[155]. - Mr. Lee Tze Bun has a total interest of 371,661,000 shares, representing approximately 52.65% of the issued share capital[161]. - Stable Gain Holdings Limited holds 225,500,000 shares, accounting for about 31.94% of the issued share capital[161]. - The total number of Shares held by substantial shareholders and other persons is significant, indicating strong ownership concentration[164].
莱尔斯丹(00738) - 2025 - 中期财报