Financial Performance - Revenue for the six months ended December 31, 2024, was RMB 441.2 million, a decrease of 25.4% compared to RMB 591.3 million in the same period of 2023[15]. - Gross profit decreased by 26.8% to RMB 70.4 million from RMB 96.2 million year-on-year[15]. - Operating loss improved to RMB (7.9) million from RMB (21.0) million, reflecting a positive change of RMB 13.1 million[15]. - Loss for the period was RMB (7.7) million, an improvement of RMB 13.2 million compared to RMB (20.9) million in the previous year[15]. - Adjusted EBITDA improved to RMB (1.1) million from RMB (13.9) million, showing a positive change of RMB 12.8 million[15]. - Basic loss per share improved to RMB (1.00) cents from RMB (3.14) cents, an increase of 2.14 cents[15]. - The Group recorded overall revenue of RMB 441.2 million for the Period, a decrease of 25.4% compared to RMB 591.3 million for the corresponding period in 2023[54]. - Loss attributable to owners of the Company for the Period was RMB 8.0 million, an improvement from a loss of RMB 20.9 million in the corresponding period in 2023[54]. - Gross profit for the Period was RMB 70.4 million, representing a decrease of 26.8% from RMB 96.2 million in the corresponding period in 2023[65]. - The company reported a total comprehensive loss of RMB 12,459,000 for the period, compared to RMB 19,122,000 in the previous year[150]. - Basic and diluted loss per share for the period was RMB 1.00, an improvement from RMB 3.14 in the same period last year[151]. Liquidity and Financial Position - Current ratio increased to 1.1 from 1.0, indicating improved liquidity[15]. - As of December 31, 2024, the Group's unpledged cash and cash equivalents totaled RMB 50.7 million, an increase from RMB 36.4 million as of 30 June 2024, with net current assets of RMB 39.3 million[81]. - Cash and cash equivalents increased to RMB 50,706,000 from RMB 36,363,000, showing a positive cash flow trend[148]. - Total assets decreased to RMB 606,056,000 as of December 31, 2024, down 12.5% from RMB 692,877,000 as of June 30, 2024[148]. - Current liabilities decreased to RMB 265,630,000 from RMB 299,692,000, a reduction of 11.4%[148]. - The Group had total borrowings from banks of RMB 22.0 million as of December 31, 2024, with interest rates ranging from 4.45% to 4.85% per annum[88]. Operational Efficiency - Trade receivables turnover days increased to 32.2 days from 27.8 days, indicating a longer collection period[15]. - Inventory turnover days decreased slightly to 56.8 days from 57.8 days, showing stable inventory management[15]. - Trade payables turnover days decreased to 99.1 days from 104.2 days, indicating improved payment efficiency[15]. - Selling and marketing expenses decreased by 37.0% to RMB 60.0 million, accounting for 13.6% of the Group's revenue[70]. - Administrative expenses for the period were RMB 18.6 million, representing a decrease of RMB 6.0 million or 24.4% compared to RMB 24.6 million for the corresponding period in 2023, accounting for 4.2% of the Group's revenue[72]. - The Group closed several loss-making retail stores during the Period to minimize operating losses[54]. Market and Industry Trends - The healthcare industry in China is projected to reach a market size of RMB 29.1 trillion by 2030, driven by an aging population and increased health awareness[20]. - In 2024, the Chinese government implemented supportive policies for the healthcare industry, including reforms in the medical system and enhanced supervision over healthcare products[21]. - The application of technologies such as artificial intelligence, big data, and the Internet of Things in healthcare has improved diagnosis efficiency and service quality[24]. - The government promoted joint procurement by medical institutions to reduce drug and medical equipment costs, alleviating financial burdens on patients[25]. - Health management services were standardized and health monitoring centers were established to improve disease detection and prevention[28]. - The demand for nutritious and healthy foods has increased, leading to an expansion in China's healthcare products market[29]. - The healthcare industry is experiencing continuous growth due to rising demand for elderly care services and health management[24]. Strategic Initiatives - The company aims to enhance product quality and service levels through scientific and technological innovation and industrial upgrading[30]. - The Group is focusing on the pharmaceutical healthcare field and exploring new business models such as "Direct to Patient (DTP)" pharmacies[33][36]. - The Group has actively explored digital transformation and strengthened its Online-to-Offline (O2O) platform to increase online orders[35]. - The Group's direct-supply model improved sales efficiency and profitability, covering most provinces in China[39]. - The "Specialization+" strategy aims to enhance service professionalism and improve operational quality, with a focus on training employees and improving pharmacy services[100]. - The "Platform+" strategy will expand value-added services in stores to meet increasing consumer demand for health-related services[101]. - The "Internet+" strategy will strengthen the integration of online and offline services, utilizing mobile internet technologies and third-party e-commerce platforms[103]. - The Group aims to maintain its position as an industry leader in pharmaceutical business and operational channel innovation through digital transformation[104]. Governance and Compliance - The Group has complied with the Corporate Governance Code, with a noted deviation regarding the separation of roles between the chairman and CEO[106]. - All major decisions are made in consultation with the Board, ensuring a balance of power despite the dual role held by the chairman[107]. - The Group has adopted a code of conduct for directors' securities transactions, confirming compliance throughout the period[109]. - The company has complied with all corporate governance codes and standards during the period[111]. Shareholder Information - As of December 31, 2024, the total number of shares issued by the company was 801,059,558[6][2]. - Asia Health Century International Inc. holds 90,701,495 shares, representing an 11.32% ownership stake[129]. - The company has not purchased, sold, or redeemed any of its listed securities during the period[113]. - The company aims to incentivize personnel for future development and expansion through the Share Option Scheme[134]. - A total of 22,470,000 share options are outstanding as of December 31, 2024, with no options exercised or cancelled during the period[137].
大健康国际(02211) - 2025 - 中期财报