Financial Performance - For the six months ended June 30, 2025, the self-operated store sales remained relatively stable at RMB 448.7 million, compared to RMB 456.5 million in the same period of 2024[4] - The net profit for the six months ended June 30, 2025, was approximately RMB 8.9 million, an increase of 30.9% or RMB 2.1 million compared to RMB 6.8 million in the same period of 2024[4] - Total revenue for the six months ended June 30, 2025, was RMB 969.1 million, down from RMB 1,088.4 million in the same period of 2024[5] - Gross profit for the six months ended June 30, 2025, was RMB 517.7 million, compared to RMB 583.3 million in the same period of 2024[5] - The total comprehensive income for the period was RMB 9.96 million, compared to RMB 4.21 million in the same period of 2024[6] - The group reported a profit attributable to equity holders of the parent of RMB 8,872,000 for the six months ended June 30, 2025, compared to RMB 6,820,000 in 2024, an increase of 30.1%[30] - The pre-tax profit for the period was RMB 13.2 million, an increase of RMB 5.6 million compared to RMB 7.6 million in the same period of 2024[60] Revenue Breakdown - Total revenue for the six months ended June 30, 2025, was RMB 969,076 thousand, a decrease of 10.9% compared to RMB 1,088,424 thousand for the same period in 2024[19] - Online channel sales decreased to RMB 357,978 thousand from RMB 434,004 thousand, reflecting a decline of 17.5% year-over-year[19] - Offline channel sales from self-operated stores were RMB 448,650 thousand, slightly down from RMB 456,549 thousand, a decrease of 1.9%[19] - The main brand GXG's sales revenue decreased by 8.3% or RMB 81.2 million to RMB 897.5 million compared to the same period in 2024[43] - The sales revenue from gxg jeans decreased by 38.2% or RMB 30.2 million, primarily due to strategic brand adjustments and the closure of underperforming stores[43] - The sales revenue from gxg.kids decreased by 73.0% or RMB 5.4 million, mainly due to the strategic decision to terminate the gxg.kids business[43] Cost and Expenses - Administrative expenses and financial costs as a percentage of revenue decreased to 8.6% and 1.7%, respectively, from 10.3% and 2.7% in the same period of 2024[4] - The cost of goods sold for the six months ended June 30, 2025, was RMB 437,938,000, down 16.4% from RMB 524,162,000 in 2024[22] - Total selling and distribution expenses decreased by 8.0% or RMB 35.9 million to RMB 415.3 million, primarily due to reduced advertising expenses[54] - Administrative expenses decreased by 25.6% or RMB 28.7 million to RMB 83.3 million, mainly due to a reduction in service fees and employee-related expenses[55] - Financial costs decreased significantly to RMB 16,054,000 in 2025 from RMB 29,803,000 in 2024, representing a reduction of 46.1%[23] Assets and Liabilities - The total assets less current liabilities as of June 30, 2025, were RMB 865.6 million, slightly up from RMB 864.6 million as of December 31, 2024[8] - The company reported a decrease in trade payables and notes payable to RMB 229.0 million from RMB 412.9 million in the previous period[7] - Trade receivables as of June 30, 2025, amounted to RMB 562,907,000, down 20.0% from RMB 704,884,000 as of December 31, 2024[33] - Trade payables decreased to RMB 61,986,000 as of June 30, 2025, from RMB 175,272,000 as of December 31, 2024, a decline of 64.7%[35] - As of June 30, 2025, the group had bank loans of RMB 201.4 million secured by pledged deposits[71] Cash Flow - The cash flow from operating activities for the six months ended June 30, 2025, showed a net outflow of RMB 61.6 million, compared to RMB 60.4 million in the same period of 2024[9] - Net cash flow from investing activities was RMB (54,114) thousand for 2025, compared to RMB (42,373) thousand in 2024, representing an increase in cash outflow of 27.7%[10] - Net cash flow from financing activities was RMB 85,520 thousand in 2025, down from RMB 109,924 thousand in 2024, a decrease of 22.2%[10] - Cash and cash equivalents at the end of June 30, 2025, were RMB 156,285 thousand, down from RMB 196,530 thousand at the end of June 30, 2024, a decrease of 20.5%[10] Strategic Adjustments - The total number of offline stores decreased from 996 as of December 31, 2024, to 946 as of June 30, 2025, due to strategic adjustments[46] - The number of self-operated stores decreased from 410 to 375, reflecting a strategic adjustment in the offline channel structure[47] - The company aims to enhance supply chain management and control logistics costs to achieve cost reduction and efficiency improvement[42] Employee and Governance - The total employee cost for the period was RMB 45.5 million, a decrease from RMB 49.6 million in the same period of 2024, primarily due to a reduction in employee numbers[74] - The group employed 432 people as of June 30, 2025, down from 467 as of December 31, 2024[74] - The group’s income tax expense for the six months ended June 30, 2025, totaled RMB 4,327,000, compared to RMB 784,000 in 2024, indicating a significant increase[26] - The group did not declare an interim dividend for the six months ended June 30, 2025, consistent with the previous year[27] - The audit committee reviewed the group's unaudited interim results for the six months ended June 30, 2025, ensuring compliance with applicable accounting principles[79] - The company has adopted the Corporate Governance Code and complied with all applicable provisions during the period[76] Risks and Events - The group faced foreign exchange risk primarily due to debt denominated in US dollars, with most transactions settled in RMB[70] - No major events occurred after June 30, 2025, up to the announcement date[73] - There were no significant contingent liabilities as of June 30, 2025, consistent with December 31, 2024[72]
慕尚集团控股(01817) - 2025 - 中期业绩