戎美股份(301088) - 2025 Q2 - 季度财报

Important Notice, Table of Contents and Definitions Important Notice The company's management guarantees the truthfulness, accuracy, and completeness of the semi-annual report, with no plans for profit distribution - The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital[6] - For a detailed description of potential future risk factors and countermeasures, please refer to "Section 3 Management Discussion and Analysis" under "X, Company's Risks and Countermeasures"[5] Directory of Documents for Inspection The list of available documents for inspection includes signed financial statements and original public filings, stored at the company's office - Documents for inspection include signed and sealed financial statements, original documents publicly disclosed on CSRC-designated websites, and the original semi-annual report text[10] - The documents are kept at the Board of Directors' Office, 29th Floor, Block A, Shimao Business Center Plaza, No 11 Minjiang East Road, Changshu, Jiangsu Province[10] Definitions This section defines key terms used in the report, including company names, financial metrics, and the reporting period - The reporting period is defined as January 1, 2025, to June 30, 2025[11] - The company's main online stores include "Rongmei Wujinguan Women's Clothing Store A-share Listed Company Production" and "Rumere Flagship Store"[11] - GMV is defined as the total transaction amount of orders placed by consumers with the company within a specific time frame[11] Company Profile and Key Financial Indicators Company Profile The company, Rime Co, Ltd, is listed on the Shenzhen Stock Exchange under the stock code 301088 Company Basic Information | Indicator | Content | | :--- | :--- | | Stock Abbreviation | Rime Co, Ltd | | Stock Code | 301088 | | Listing Stock Exchange | Shenzhen Stock Exchange | | Chinese Name | 日禾戎美股份有限公司 | | Legal Representative | Guo Jian | Contact Persons and Methods The company's Board Secretary is Yu Qingtao and the Securities Affairs Representative is Yu Dongxue - The Board Secretary is Yu Qingtao, and the Securities Affairs Representative is Yu Dongxue[14] - Contact Address: Room 2901, Block A, Shimao Business Center Plaza, No 11 Minjiang East Road, Changshu, Jiangsu Province[14] - Email: rumerebod@rumere.com[14] Other Information There were no changes to the company's contact information, disclosure locations, or registration during the reporting period - The company's registered address, office address, website, and email address remained unchanged during the reporting period[15] - The information disclosure and document storage locations remained unchanged during the reporting period[16] - The company's registration details remained unchanged during the reporting period[17] Key Accounting Data and Financial Indicators In H1 2025, revenue and net profit declined year-over-year, while net cash flow from operating activities increased significantly Key Accounting Data and Financial Indicators for H1 2025 | Indicator | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 297,900,303.78 | 346,030,800.53 | -13.91% | | Net Profit Attributable to Shareholders | 36,598,753.20 | 45,370,552.79 | -19.33% | | Net Profit Attributable to Shareholders (Excluding Non-recurring Items) | 20,289,117.78 | 20,851,058.57 | -2.70% | | Net Cash Flow from Operating Activities | 47,691,902.90 | 20,537,517.89 | 132.22% | | Basic Earnings Per Share (Yuan/share) | 0.1606 | 0.1990 | -19.30% | | Diluted Earnings Per Share (Yuan/share) | 0.1606 | 0.1990 | -19.30% | | Weighted Average Return on Equity | 1.42% | 1.75% | -0.33% | | End of Current Period | | End of Prior Year | Change from Prior Year-End | | Total Assets | 2,562,413,398.73 | 2,646,628,100.29 | -3.18% | | Net Assets Attributable to Shareholders | 2,502,863,886.84 | 2,566,313,233.64 | -2.47% | Differences in Accounting Data under Domestic and Foreign Accounting Standards There were no discrepancies in net profit or net assets between Chinese accounting standards and international or foreign standards - The company has no discrepancies in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards[19] - The company has no discrepancies in net profit and net assets between financial reports disclosed under foreign accounting standards and Chinese accounting standards[20] Non-recurring Profit and Loss Items and Amounts Non-recurring profit and loss for H1 2025 totaled 16,309,635.42 Yuan, primarily from fair value changes in financial assets Non-recurring Profit and Loss Items and Amounts for H1 2025 | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 108,286.48 | | Government Grants Recognized in Current Profit or Loss | 33,333.30 | | Fair Value Gains/Losses on Financial Assets and Liabilities & Disposal Gains/Losses | 22,288,930.36 | | Other Non-operating Income and Expenses | -684,369.58 | | Less: Income Tax Impact | 5,436,545.14 | | Total | 16,309,635.42 | - The company has no other profit or loss items that meet the definition of non-recurring items, nor has it reclassified any non-recurring items as recurring[21] Management Discussion and Analysis Principal Business Activities During the Reporting Period The company's main business is the design, supply chain management, and sale of apparel under the "RUMERE" brand via internet platforms Overview of Main Business, Products, and Operating Model The company's core business is apparel design and sales, utilizing a flexible supply chain and online channels for a new retail model - The company's main business is the planning, design, supply chain management, and sales of apparel and other products under the "RUMERE" brand through internet platforms[24] - The company's products include professional and casual womenswear, menswear, jewelry, and home textiles, closely following global fashion trends[24] - The company has established a high-level live-streaming operations team, conducting regular sales broadcasts on the Taobao Live account "Rongmei High-End Women's Wear," with over 6.79 million subscribers[30][31] - The company has built an intelligent warehousing and distribution base capable of handling over 12 million units of apparel and accessories, with real-time data integration with BEST Logistics and SF Express[32] Market Position and Key Performance Drivers During the Reporting Period The company holds a leading position in the mid-to-high-end apparel market, with performance driven by online operational metrics - In H1 2025, womenswear accounted for approximately 97% of product sales, positioning the company in the mid-to-high-end apparel segment[33] - The company increases average transaction value by selecting premium global materials, strengthening pricing power, and enhancing styling solutions[36] - During the reporting period, due to a slower-than-expected consumer recovery, metrics such as GMV declined, but the average purchase frequency per person increased, indicating strong private domain user stickiness[39] Key Operational Data for H1 2025 (Rongmei Wujinguan Women's Clothing Enterprise Store) | Indicator | Current Period | Prior Year Period | | :--- | :--- | :--- | | Semi-annual Page Views (10,000 times) | 67,015.88 | 74,240.45 | | Semi-annual Visitors (10,000 people) | 10,479.06 | 8,762.94 | | Semi-annual New Visitors (10,000 people) | 6,086.00 | 4,934.99 | | Semi-annual Buyers (10,000 people) | 113.14 | 131.21 | | Semi-annual Order Amount (10,000 Yuan) | 110,712.27 | 121,007.06 | | Number of Sub-orders (10,000 units) | 243.84 | 273.68 | | Per Capita Purchase Frequency (times) | 2.16 | 2.09 | Core Competitiveness Analysis The company's core strengths lie in its internet retail operations, product planning, information systems, and supply chain management Internet Retail Operations Capability The company leverages a vertical online sales model to reduce costs and has built a strong brand presence on the Taobao platform - The company utilizes online channels and a vertical sales model, significantly reducing product distribution and communication costs[41] - The company has cultivated a highly skilled internet retail operations team with extensive experience in online store management, sales customer service, and marketing[41] - The company has established a strong brand image on the Taobao platform and has cultivated a stable customer base[41] Product Planning Capability A professional product planning team ensures alignment with fashion trends while maintaining brand identity through data-driven insights - The company has a professional product planning and design team that stays current with seasonal trends while adhering to its own brand style and philosophy[42] - The planning department analyzes global fashion trends, colors, category popularity, sales data, and e-commerce platform transaction data to capture consumer preferences and feedback[42] Information Systematization Capability A comprehensive information management system covers the entire business process, supporting high-frequency product launches and a quick-response model - The company has implemented systems for new product scheduling, supplier settlement, and intelligent raw material management, establishing a comprehensive information management system covering the entire business process[43][44] - This achieves full coverage from planning and design to production management and data-driven sales management from order to delivery[44] Supply Chain Management Capability The company achieves a high frequency of new product launches through data analysis, strong supplier relationships, and agile in-house production - The company analyzes e-commerce transaction data and real-time order information from its management system to quickly grasp consumer preferences, sales progress, and customer feedback[45] - Through long-term supplier partnerships and the small-batch, quick-response production capabilities of its own factory, the company achieves a high frequency of three new product launches per week[45] Customer Service Capability The company provides a convenient 24/7 online shopping experience by leveraging high-frequency updates and real-time customer feedback - The company meets consumer demand with multiple new product launches per week and offers convenience through online payments and express logistics[46] - By monitoring real-time sales information on online platforms, the company promptly understands and meets consumer needs, offering a 24/7 online shopping experience[46] Business Extension Capability The company successfully expands into new product categories like high-end cashmere and jewelry, leveraging its core operational strengths - The company innovates its supply chain to cater to the diverse needs of its core customer base, offering a variety of high-quality product categories[47][48] - In H1 2025, products such as high-end wool and cashmere, new Chinese-style Song Brocade series, and jewelry achieved strong sales[48] Analysis of Main Business Operations In H1 2025, the company maintained profitability despite a year-over-year decline in revenue and net profit amid a challenging market Overview Despite a weak consumer market, the company remained profitable but saw revenue and net profit decline by 14% and 19% respectively - In H1 2025, the textile and apparel industry's operating revenue decreased by 1.4% YoY, and total profit fell by 12.9% YoY[49] Key Financial Overview for H1 2025 | Indicator | Amount (10,000 Yuan) | YoY Change | | :--- | :--- | :--- | | Total Operating Revenue | 29,790 | -14% | | Net Profit Attributable to Shareholders | 3,660 | -19% | | Operating Profit Margin | 15.25% | - | - The company plans to launch an integrated online-offline experience store and live-streaming center in Shanghai and will continue to strategically expand its high-end jewelry business to build an "Apparel + Jewelry" lifestyle aesthetic system[50] Year-on-Year Changes in Key Financial Data Revenue and costs decreased, while operating cash flow grew significantly due to reduced procurement, though investment cash flow fell sharply Year-on-Year Changes in Key Financial Data for H1 2025 | Item | Current Period (Yuan) | Prior Year Period (Yuan) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 297,900,303.78 | 346,030,800.53 | -13.91% | | Operating Costs | 162,214,715.23 | 205,096,864.79 | -20.91% | | Selling Expenses | 36,254,656.89 | 48,730,672.44 | -25.60% | | Administrative Expenses | 22,663,195.38 | 24,587,601.56 | -7.83% | | Finance Costs | 1,292,347.15 | 567,119.34 | 127.88% | | Net Cash Flow from Operating Activities | 47,691,902.90 | 20,537,517.89 | 132.22% | | Net Cash Flow from Investing Activities | -432,984,324.27 | 27,215,434.27 | -1,690.95% | | Net Cash Flow from Financing Activities | -100,948,100.00 | -900,000.00 | 11,116.46% | | Net Increase in Cash and Cash Equivalents | -486,240,521.37 | 46,852,952.16 | -1,137.80% | - The change in finance costs was mainly due to higher interest income from term deposits in the prior year period[53] - The increase in net cash flow from operating activities was primarily due to a decrease in cash paid for goods resulting from reduced procurement[53] - The change in net cash flow from investing activities was mainly due to changes in the purchase and redemption of wealth management products as the company managed its idle funds[53] - The change in net cash flow from financing activities was primarily due to the payment of cash dividends during the reporting period[53] Products or Services Accounting for More Than 10% Tops, outerwear, pants, skirts, fur, and jewelry each accounted for over 10% of revenue, with jewelry sales growing significantly Products or Services Accounting for Over 10% in H1 2025 | Product/Service | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Revenue YoY Change | Cost YoY Change | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Tops | 96,153,785.98 | 49,574,632.26 | 48.44% | -14.86% | -27.11% | 8.66% | | Outerwear | 55,605,839.34 | 27,673,129.03 | 50.23% | -29.51% | -39.32% | 8.04% | | Pants | 47,537,684.70 | 23,556,131.12 | 50.45% | -12.26% | -21.91% | 6.12% | | Skirts | 40,189,715.11 | 19,884,797.01 | 50.52% | -13.40% | -25.98% | 8.41% | | Fur | 10,387,856.49 | 5,836,933.18 | 43.81% | -34.43% | -43.39% | 8.89% | | Jewelry | 26,116,860.54 | 24,540,412.13 | 6.04% | 57.82% | 109.46% | -23.16% | Analysis of Non-Core Business Non-core business activities, primarily sustainable investment income from cash management, significantly contributed to total profit Contribution of Non-Core Business to Total Profit | Item | Amount (Yuan) | % of Total Profit | Reason | Sustainability | | :--- | :--- | :--- | :--- | :--- | | Investment Income | 7,997,319.04 | 17.61% | Income from cash management of idle funds | Yes | | Fair Value Change Gains/Losses | 14,291,611.32 | 31.46% | Income from cash management of idle funds | Yes | Analysis of Assets and Liabilities Total assets and net assets decreased, with a significant shift from cash to financial assets due to cash management activities Significant Changes in Asset Composition Cash and cash equivalents decreased sharply as funds were reallocated to trading and other non-current financial assets Significant Changes in Asset Composition | Item | End of Period Amount (Yuan) | % of Total Assets | Prior Year-End Amount (Yuan) | % of Total Assets | Change in Weight | | :--- | :--- | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | 79,197,256.75 | 3.09% | 565,166,973.10 | 21.35% | -18.26% | | Trading Financial Assets | 1,139,527,362.62 | 44.47% | 788,760,656.16 | 29.80% | 14.67% | | Other Non-current Financial Assets | 393,569,187.67 | 15.36% | 316,314,380.56 | 11.95% | 3.41% | - The decrease in cash and cash equivalents and the increase in trading financial assets were mainly due to the company's cash management of idle funds[56] Assets and Liabilities Measured at Fair Value Financial assets measured at fair value totaled 1,533,096,550.29 Yuan, with a fair value change gain of 22,288,930.36 Yuan for the period Changes in Assets and Liabilities Measured at Fair Value | Item | Opening Balance (Yuan) | Fair Value Change (Yuan) | Purchases (Yuan) | Sales (Yuan) | Closing Balance (Yuan) | | :--- | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 788,760,656.16 | 15,944,724.38 | 2,523,000,000.00 | 2,414,061,937.33 | 1,139,527,362.62 | | Other Non-current Financial Assets | 316,314,380.56 | 6,344,205.98 | 300,000,000.00 | 805,479.46 | 393,569,187.67 | | Total Financial Assets | 1,105,075,036.72 | 22,288,930.36 | 2,823,000,000.00 | 2,414,867,416.79 | 1,533,096,550.29 | - Other changes primarily represent the reclassification of other non-current financial assets maturing within one year to trading financial assets[59] Investment Status Analysis The company's investment activities focused on the use of raised funds and entrusted wealth management with idle capital Use of Raised Funds The company has utilized 77% of its IPO proceeds, with some investment projects delayed due to macroeconomic factors Overall Use of Raised Funds | Total Raised Funds (10,000 Yuan) | Net Raised Funds (10,000 Yuan) | Raised Funds Used This Period (10,000 Yuan) | Cumulative Raised Funds Used (10,000 Yuan) | Utilization Rate at Period-End | | :--- | :--- | :--- | :--- | :--- | | 189,012 | 173,268 | 2,522 | 132,589 | 77% | Status of Committed Investment Projects | Project Name | Committed Investment (10,000 Yuan) | Adjusted Investment (10,000 Yuan) | Cumulative Investment (10,000 Yuan) | Investment Progress | | :--- | :--- | :--- | :--- | :--- | | Modern Manufacturing Service Base Project | 41,471.32 | 41,471.32 | 24,483.74 | 59.04% | | Design and R&D Center Construction Project | 4,308.20 | 4,308.20 | 3,951.80 | 91.73% | | Information Technology Construction Project | 5,023.46 | 5,023.46 | 710.84 | 14.15% | | Exhibition Center Construction Project | 9,252.71 | 9,252.71 | 1,552.13 | 16.77% | | Supplementary Working Capital (Excess Funds) | 101,890.80 | 101,890.80 | 101,890.80 | 100.00% | - The "Design and R&D Center," "Information Technology," "Exhibition Center," and "Modern Manufacturing Service Base" projects have been delayed due to macroeconomic and market factors, with completion dates extended to June or October 2025[66] - The company has used a cumulative amount of 1,018.908 million Yuan from excess funds to permanently supplement working capital[67] - The "Modern Manufacturing Service Base Project" has been completed, and the surplus funds of 191.9931 million Yuan (including interest and investment income) have been permanently transferred to supplement working capital[67] Entrusted Wealth Management, Derivatives Investment, and Entrusted Loans The company engaged in entrusted wealth management with a total transaction amount of 1.62 billion Yuan, with no derivatives or entrusted loans Overview of Entrusted Wealth Management During the Reporting Period | Type | Source of Funds | Amount Transacted (10,000 Yuan) | Outstanding Balance (10,000 Yuan) | | :--- | :--- | :--- | :--- | | Bank Wealth Management Products | Raised Funds | 46,600.00 | 26,913.33 | | Bank Wealth Management Products | Own Funds | 10,000.00 | 10,010.10 | | Trust Wealth Management Products | Own Funds | 105,400.00 | 107,098.64 | | Total | -- | 162,000.00 | 144,022.07 | - The company had no derivatives investments or entrusted loan activities during the reporting period[73][74] Sale of Major Assets and Equity No major assets or equity were sold during the reporting period - The company did not sell any major assets during the reporting period[75] - The company did not sell any major equity during the reporting period[76] Analysis of Major Holding and Participating Companies There were no significant holding or participating companies to be disclosed during the reporting period - The company has no significant holding or participating companies that require disclosure for the reporting period[76] Structured Entities Controlled by the Company The company did not control any structured entities during the reporting period - The company did not have any controlled structured entities during the reporting period[77] Company's Risks and Countermeasures The company faces risks from fashion trends, channel concentration, and economic factors, and plans to mitigate them through various strategic initiatives Potential Risks Key risks include failing to capture fashion trends, high concentration of sales channels, and potential performance decline due to economic slowdown - Failure to accurately grasp changing fashion trends could lead to diminished brand influence, decreased sales, inventory buildup, and lower profits[78] - The company's sales revenue is highly concentrated, with over 99% realized through third-party platforms like Taobao and Tmall[79] - As apparel is a discretionary consumer good, industry growth is strongly correlated with the macroeconomy, and a slowdown could impact consumer purchasing motives[80] Company's Countermeasures The company will enhance live-streaming sales, strengthen R&D, upgrade IT systems, and expand into offline channels to build a new retail model - The company plans to increase the frequency of live-streaming sales and expand its business team to boost sales volume[81][82] - The company will increase investment in product design and R&D, improve hardware and software facilities, attract top talent, and build a new design and R&D innovation center[83] - The company will continue to upgrade its information systems, including its ERP system and warehouse logistics management platform, to enhance overall information management[84] - The company will use the establishment of offline image stores as an opportunity to enhance consumer interaction, gradually expand into the offline market, and achieve an omni-channel new retail model[85] Record of Investor Relations Activities During the Reporting Period No investor relations activities such as research visits, communications, or interviews occurred during the reporting period - No research visits, communications, interviews, or other related activities were conducted during the reporting period[86] Development and Implementation of Market Value Management System and Valuation Enhancement Plan The company has not formulated a market value management system or disclosed a valuation enhancement plan - The company has not formulated a market value management system[88] - The company has not disclosed a valuation enhancement plan[89] Implementation of the "Dual Improvement in Quality and Returns" Action Plan The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan - The company has not disclosed an announcement regarding the "Dual Improvement in Quality and Returns" action plan[90] Corporate Governance, Environment, and Society Changes in Directors, Supervisors, and Senior Management Two independent directors retired upon term completion and were replaced by newly elected members Changes in Directors, Supervisors, and Senior Management | Name | Position | Type | Date | Reason | | :--- | :--- | :--- | :--- | :--- | | Fang Junxiong | Independent Director | Term Expiration | 2025-05-19 | Change of Board | | Duan Guoqing | Independent Director | Term Expiration | 2025-05-19 | Change of Board | | Su Zihao | Independent Director | Appointed | 2025-05-19 | Election | | Qian Siwen | Independent Director | Appointed | 2025-05-19 | Election | Profit Distribution and Capitalization of Capital Reserve for the Reporting Period The company does not plan to distribute profits or capitalize reserves for the semi-annual period - The company does not plan to distribute cash dividends, issue bonus shares, or convert capital reserves into share capital for the semi-annual period[92] Implementation of Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures No equity incentive plans, employee stock ownership plans, or other employee incentive measures were implemented during the period - The company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures and their implementation during the reporting period[93] Environmental Information Disclosure The company and its subsidiaries are not listed as enterprises required to disclose environmental information and had no environmental incidents - The listed company and its main subsidiaries are not included in the list of enterprises required by law to disclose environmental information[94] - Information regarding environmental accidents involving the listed company is not applicable[94] Social Responsibility The company actively fulfilled its social responsibilities, including corporate governance, investor relations, and employee rights protection - The company operates in strict accordance with laws and regulations, improves its corporate governance structure, and actively fulfills its information disclosure obligations to protect the legitimate rights of all shareholders[95] - The company complies with the "Labor Law," pays social security and housing provident fund contributions on time and in full, and provides a career development platform and employee care system[96] - The company adheres to the principle of "mutual benefit and coordinated development" in managing suppliers and focuses on being "customer-centric" to enhance product quality and service[98] - The company actively undertakes social responsibilities, maintains communication with government at all levels, fulfills its taxpayer obligations, and participates in public welfare activities[99] Significant Events Commitments Made by Controlling Shareholders, Related Parties, and the Company that were Fulfilled or Overdue Share lock-up commitments made by the controlling shareholder and actual controllers during the IPO have been fulfilled on schedule - The share lock-up commitments made by the controlling shareholder Rime Group and actual controllers Guo Jian and Wen Di during the initial public offering have been fulfilled[101] Non-operational Fund Occupation by Controlling Shareholders and Other Related Parties There were no instances of non-operational fund occupation by controlling shareholders or other related parties during the period - During the reporting period, there were no instances of non-operational fund occupation of the listed company by its controlling shareholder or other related parties[102] Irregular External Guarantees No irregular external guarantees were provided during the reporting period - The company had no irregular external guarantees during the reporting period[103] Appointment and Dismissal of Accounting Firm The company's semi-annual financial report has not been audited - The company's semi-annual report has not been audited[104] Explanation from the Board on "Non-standard Audit Report" for the Current Period No non-standard audit report was issued for the reporting period - There was no non-standard audit report for the company during the reporting period[105] Explanation from the Board on "Non-standard Audit Report" from the Previous Year No non-standard audit report was issued for the previous year - There was no non-standard audit report for the company in the previous year[105] Bankruptcy and Reorganization Matters No bankruptcy or reorganization matters occurred during the reporting period - No bankruptcy or reorganization matters occurred during the reporting period[105] Litigation Matters There were no major litigation or arbitration matters during the reporting period - The company had no major litigation or arbitration matters during this reporting period[106] - The company had no other litigation matters during the reporting period[107] Penalties and Rectifications No penalties or rectifications occurred during the reporting period - There were no penalties or rectifications for the company during the reporting period[107] Integrity Status of the Company, its Controlling Shareholder, and Actual Controller There were no integrity issues concerning the company, its controlling shareholder, or actual controller during the reporting period - There were no integrity issues concerning the company, its controlling shareholder, or actual controller during the reporting period[108] Major Related-Party Transactions No major related-party transactions occurred during the reporting period - The company had no major related-party transactions related to daily operations during the reporting period[109] - The company had no related-party transactions involving the acquisition or sale of assets or equity during the reporting period[110] - The company had no joint external investment related-party transactions during the reporting period[111] - There were no related-party credit or debt transactions during the reporting period[112] - There were no deposits, loans, credit lines, or other financial services between the company and related financial companies or between the company's controlled financial companies and related parties[113][114] - The company had no other major related-party transactions during the reporting period[115] Major Contracts and Their Performance The company has several property lease agreements, including with related parties, but no other major contracts, custody, or contracting arrangements - The company had no custody arrangements during the reporting period[116] - The company had no contracting arrangements during the reporting period[117] - The company leases office floors from related parties Guo Jian and Wen Di, with the lease content being buildings, at a price consistent with the local market rate[118][472] - The company had no major guarantees during the reporting period[119] - The company had no other major contracts during the reporting period[120] Explanation of Other Major Matters There were no other major matters requiring explanation during the reporting period - There were no other major matters requiring explanation during the reporting period[121] Major Matters of Company Subsidiaries There were no major matters concerning the company's subsidiaries during the reporting period - There were no major matters concerning the company's subsidiaries during the reporting period[122] Changes in Share Capital and Shareholders Changes in Share Capital The total number of shares remained unchanged, while a significant portion of restricted shares became unrestricted due to lock-up expiration Changes in Share Capital | Item | Pre-Change Quantity (shares) | Pre-Change Ratio | Change (+, -) (shares) | Post-Change Quantity (shares) | Post-Change Ratio | | :--- | :--- | :--- | :--- | :--- | :--- | | I. Restricted Shares | 170,250,000 | 74.70% | -130,200,000 | 40,050,000 | 17.57% | | Of which: Domestic Corporate Holdings | 117,600,000 | 51.60% | -117,600,000 | 0 | 0.00% | | Domestic Individual Holdings | 52,650,000 | 23.10% | -12,600,000 | 40,050,000 | 17.57% | | II. Unrestricted Shares | 57,650,000 | 25.30% | 130,200,000 | 187,850,000 | 82.43% | | III. Total Shares | 227,900,000 | 100.00% | 0 | 227,900,000 | 100.00% | Changes in Restricted Shares | Shareholder Name | Opening Restricted Shares (shares) | Restricted Shares Released (shares) | Closing Restricted Shares (shares) | Reason for Restriction | Proposed Release Date | | :--- | :--- | :--- | :--- | :--- | :--- | | Suzhou Rime Group Co, Ltd | 117,600,000 | 117,600,000 | 0 | Pre-IPO restricted shares | April 28, 2025 | | Guo Jian | 25,200,000 | 6,300,000 | 18,900,000 | Executive lock-up | 75% locked during tenure | | Wen Di | 25,200,000 | 6,300,000 | 18,900,000 | Executive lock-up | 75% locked during tenure | | Yu Qingtao | 2,100,000 | 0 | 2,100,000 | Executive lock-up | 75% locked during tenure | | Zhu Zhengjun | 150,000 | 0 | 150,000 | Executive lock-up | Annual sale not to exceed 25% | | Total | 170,250,000 | 130,200,000 | 40,050,000 | -- | -- | Securities Issuance and Listing No securities were issued or listed during the reporting period - No securities were issued or listed during the reporting period[128] Number of Shareholders and Shareholding Status At the end of the period, the company had 18,943 shareholders, with Suzhou Rime Group Co, Ltd being the largest shareholder - At the end of the reporting period, the total number of common shareholders was 18,943[130] Shareholdings of Shareholders with over 5% or Top 10 Shareholders | Shareholder Name | Shareholder Nature | Shareholding Ratio | Shares Held at Period-End (shares) | Restricted Shares Held (shares) | Unrestricted Shares Held (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | Suzhou Rime Group Co, Ltd | Domestic Non-state-owned Corp | 51.60% | 117,600,000 | 0 | 117,600,000 | | Guo Jian | Domestic Individual | 11.06% | 25,200,000 | 18,900,000 | 6,300,000 | | Wen Di | Domestic Individual | 11.06% | 25,200,000 | 18,900,000 | 6,300,000 | | Yu Qingtao | Domestic Individual | 1.23% | 2,800,000 | 2,100,000 | 700,000 | - Guo Jian and Wen Di, a couple, collectively hold 22.12% of the company's shares directly and 51.60% indirectly through Suzhou Rime Group Co, Ltd, making them the actual controllers of the company[130] Changes in Shareholdings of Directors, Supervisors, and Senior Management There were no changes in the shareholdings of directors, supervisors, and senior management during the reporting period - There were no changes in the shareholdings of the company's directors, supervisors, and senior management during the reporting period[133] Changes in Controlling Shareholder or Actual Controller The company's controlling shareholder and actual controller remained unchanged during the reporting period - The company's controlling shareholder did not change during the reporting period[135] - The company's actual controller did not change during the reporting period[136] Preferred Stock Related Matters The company had no preferred stock during the reporting period - The company had no preferred stock during the reporting period[137] Bond-related Matters The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[139] Financial Report Audit Report The semi-annual financial report has not been audited - The company's semi-annual financial report has not been audited[141] Financial Statements This section presents the company's consolidated and parent company financial statements for the first half of 2025 Consolidated Balance Sheet As of June 30, 2025, total consolidated assets were 2.56 billion Yuan, with a significant shift from cash to financial assets Key Data from Consolidated Balance Sheet (Period-End) | Item | Closing Balance (Yuan) | Opening Balance (Yuan) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 79,197,256.75 | 565,166,973.10 | | Trading Financial Assets | 1,139,527,362.62 | 788,760,656.16 | | Inventories | 331,235,154.81 | 358,858,863.73 | | Other Non-current Financial Assets | 393,569,187.67 | 316,314,380.56 | | Fixed Assets | 455,261,385.03 | 463,876,124.76 | | Total Assets | 2,562,413,398.73 | 2,646,628,100.29 | | Total Liabilities | 59,549,511.89 | 80,314,866.65 | | Total Equity Attributable to Parent Company | 2,502,863,886.84 | 2,566,313,233.64 | Consolidated Income Statement For H1 2025, consolidated revenue was 297.90 million Yuan, a decrease of 13.91% YoY, with net profit down 19.33% Key Data from Consolidated Income Statement (H1 2025) | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Total Operating Revenue | 297,900,303.78 | 346,030,800.53 | | Total Operating Costs | 235,320,142.82 | 292,021,619.73 | | Operating Profit | 46,209,016.74 | 54,220,626.62 | | Total Profit | 45,422,337.37 | 54,175,078.31 | | Net Profit | 36,598,753.20 | 45,370,552.79 | | Net Profit Attributable to Parent Company Shareholders | 36,598,753.20 | 45,370,552.79 | | Basic Earnings Per Share | 0.1606 | 0.1990 | - Gains from changes in fair value were 14,291,611.32 Yuan, and investment income was 7,997,319.04 Yuan[154] - Asset impairment loss was -38,919,473.17 Yuan[154] Consolidated Cash Flow Statement Operating cash flow increased 132.22% YoY, while investing cash flow decreased significantly due to wealth management activities Key Data from Consolidated Cash Flow Statement (H1 2025) | Item | H1 2025 (Yuan) | H1 2024 (Yuan) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 47,691,902.90 | 20,537,517.89 | | Net Cash Flow from Investing Activities | -432,984,324.27 | 27,215,434.27 | | Net Cash Flow from Financing Activities | -100,948,100.00 | -900,000.00 | | Net Increase in Cash and Cash Equivalents | -486,240,521.37 | 46,852,952.16 | | Closing Balance of Cash and Cash Equivalents | 52,249,743.43 | 192,406,160.82 | - Total cash inflows from operating activities were 339,948,503.72 Yuan, and total outflows were 292,256,600.82 Yuan[161][162] - Total cash inflows from investing activities were 2,415,083,416.79 Yuan, and total outflows were 2,848,067,741.06 Yuan[161][162] - Total cash outflows from financing activities were 100,948,100.00 Yuan[162] Company Basic Information Rime Co, Ltd, headquartered in Changshu, primarily engages in the online sale of its "Rime" womenswear brand and pearl jewelry - The company has a registered capital of 227.90 million Yuan and is headquartered at 86 Shenzhen Road, Changfu Street, Changshu City[180] - The company's main business is the design, production, and online sale of its proprietary womenswear brand "Rime" and the online sale of pearl jewelry[181] - As of December 20, 2024, the company had repurchased and cancelled 100,000 shares of its stock[181] Basis of Preparation of Financial Statements The financial statements are prepared on a going concern basis in accordance with China's Accounting Standards for Business Enterprises - The company prepares its financial statements on a going concern basis, with recognition and measurement in accordance with the Accounting Standards for Business Enterprises and their application guides and interpretations[183] - The company has assessed its ability to continue as a going concern for the 12 months from the end of the reporting period and has found no matters that would affect its going concern ability[184] Significant Accounting Policies and Estimates This section details the key accounting policies and estimates used, including those for financial instruments, inventory, and revenue recognition - The classification of the company's financial assets is based on the business model for managing them and their contractual cash flow characteristics[300] - Provision for inventory write-down is measured at the lower of cost and net realizable value, with provisions for apparel inventory based on aging[234] - The revenue recognition principle is to recognize revenue when the performance obligation is satisfied and the customer obtains control of the related goods[268] - The company recognizes deferred tax assets to the extent that it is probable that sufficient taxable profit will be available in the future[278] Taxes The company is subject to various taxes, including VAT and corporate income tax, with one subsidiary enjoying preferential tax treatment Main Taxes and Tax Rates | Tax Type | Tax Basis | Tax Rate | | :--- | :--- | :--- | | Value-Added Tax (VAT) | Taxable revenue and intra-price tax | 13%, 9%, 6% | | Consumption Tax | Taxable sales revenue | 5% | | Urban Maintenance and Construction Tax | Payable turnover tax amount | 7%, 5% | | Corporate Income Tax | Taxable income | 25%, 20% | | Education Surcharge | Payable turnover tax amount | 3% | | Local Education Surcharge | Payable turnover tax amount | 2% | | Property Tax | Taxable property value | 1.2% | - The subsidiary Rime International is taxed as a small and micro enterprise, enjoying a preferential corporate income tax policy that extends until December 31, 2027[306] Notes to Consolidated Financial Statement Items This section provides detailed notes on key items in the consolidated financial statements, such as cash, financial assets, and inventories - At the end of the period, there were no restrictions on the use of cash and cash equivalents due to mortgages, pledges, or freezes, nor were there any funds with potential recovery risks[308] - The closing balance of trading financial assets was 1,139,527,362.62 Yuan, mainly comprising bank and trust wealth management products[310] - The closing book value of inventories was 331,235,154.81 Yuan, with a closing balance for inventory write-down provision of 225,285,745.73 Yuan[336] - For H1 2025, operating revenue was 297,900,303.78 Yuan, and operating cost was 162,214,715.23 Yuan[398] - For H1 2025, selling expenses were 36,254,656.89 Yuan, administrative expenses were 22,663,195.38 Yuan, and R&D expenses were 9,095,980.91 Yuan[402][403][405] Changes in the Scope of Consolidation The scope of consolidation did not change during the reporting period - There were no changes in the scope of consolidation during this period[443] Interests in Other Entities The company holds 100% equity in its three subsidiaries: Shanghai Rime, Meicang Fashion, and Rime International Composition of the Corporate Group | Subsidiary Name | Registered Capital | Main Place of Business | Business Nature | Shareholding Ratio (Direct) | Method of Acquisition | | :--- | :--- | :--- | :--- | :--- | :--- | | Shanghai Rime | 270,000,000.00 Yuan | Shanghai | Brand Management | 100.00% | Business combination under common control | | Meicang Fashion | 4,000,000.00 Yuan | Changshu | Garment Processing | 100.00% | Business combination under common control | | Rime International | 5,000,000.00 Yuan | Changshu | Raw Material Import | 100.00% | Newly established | Government Grants The company has deferred income related to government grants, with a portion recognized as other income during the period - The company had no government grants recognized based on receivable amounts at the end of the reporting period[445] Liability Items Involving Government Grants | Account | Opening Balance (Yuan) | Amount Recognized as Other Income (Yuan) | Closing Balance (Yuan) | Asset/Income Related | | :--- | :--- | :--- | :--- | :--- | | Deferred Income | 1,833,333.50 | 33,333.30 | 1,800,000.20 | Asset-related | - The government grant recognized in current profit or loss was 33,333.30 Yuan for the Modern Manufacturing Service Base Project Phase I[448] Risks Related to Financial Instruments The company manages financial risks including credit, liquidity, and market risks through established control and monitoring procedures - The company's risks related to financial instruments include credit risk, liquidity risk, and market risk (foreign exchange risk, interest rate risk)[449] - Credit risk mainly arises from cash and cash equivalents and other receivables, which is controlled by assessing customer creditworthiness and regular monitoring[450] - Liquidity risk is managed by regularly monitoring short-term and long-term funding needs[457] - Foreign exchange risk is mainly related to the import of raw materials by Rime International, which are settled in USD and EUR[459] - Interest rate risk primarily arises from interest-bearing debts such as bank borrowings, and the company's finance department continuously monitors interest rate levels[460] Fair Value Disclosure The company's assets measured at fair value primarily consist of financial assets valued using Level 1, 2, and 3 inputs Fair Value of Assets and Liabilities at Period-End | Item | Level 1 Fair Value (Yuan) | Level 2 Fair Value (Yuan) | Level 3 Fair Value (Yuan) | Total (Yuan) | | :--- | :--- | :--- | :--- | :--- | | Trading Financial Assets | 129,941,321.21 | 1,009,586,041.41 | 0 | 1,139,527,362.62 | | Of which: Bank Wealth Management Products | 0 | 369,234,281.05 | 0 | 369,234,281.05 | | Of which: Trust Wealth Management Products | 129,941,321.21 | 640,351,760.36 | 0 | 770,293,081.57 | | Other Non-current Financial Assets | 0 | 300,693,287.67 | 92,875,900.00 | 393,569,187.67 | | Of which: Trust Wealth Management Products | 0 | 300,693,287.67 | 0 | 300,693,287.67 | | Of which: Unlisted Equity Investments | 0 | 0 | 92,875,900.00 | 92,875,900.00 | | Total Assets at Fair Value | 129,941,321.21 | 1,310,279,329.08 | 92,875,900.00 | 1,533,096,550.29 | - The 129,941,321.21 Yuan in trust products are open-ended net-value products with continuous market values provided by the trust company[464] - The fair value of bank wealth management products and some trust products is determined based on the expected yield stated in the product prospectuses[465] - Unlisted equity investments are valued using the market approach (enterprise value multiples), with unobservable inputs including EBITDA multiples, revenue multiples, liquidity discounts, and control premiums[466] Related Parties and Related-Party Transactions The company's ultimate controllers are Guo Jian and Wen Di, and it engages in property lease transactions with them at market rates - The company's parent company is Suzhou Rime Group Co, Ltd, with a 51.58% shareholding[468] - The company's ultimate controllers are the couple Guo Jian and Wen Di, who collectively hold a 73.72% stake in the company, directly and indirectly[468] - The company leases office floors from Guo Jian and Wen Di for 428,571.43 Yuan, which is consistent with local market rental prices[472] - Total compensation for key management personnel during the period was 2,868,198.96 Yuan[474] Commitments and Contingencies The company has capital commitments for the acquisition of long-term assets but no significant contingencies to disclose Significant Commitments (Capital Commitments) | Item | June 30, 2025 (Yuan) | | :--- | :--- | | Commitments for the acquisition of long-term assets | 11,110,628.35 | - The company has no significant contingencies that require disclosure[476] Other Significant Matters As of June 30, 2025, the company has no other significant matters to disclose - As of June 30, 2025, the company has no other significant matters that require disclosure[477] Notes to Major Items in the Parent Company's Financial Statements This section provides notes on the parent company's key financial items, including receivables, investments, revenue, and costs Parent Company Other Receivables (Period-End) | Item | Closing Balance (Yuan) | | :--- | :--- | | Dividends Receivable | 2,400,000.00 | | Other Receivables | 148,537.25 | | Total | 2,548,537.25 | - The parent company's long-term equity investments had a closing book value of 269,886,865.58 Yuan, primarily investments in subsidiaries Shanghai Rime and Meicang Fashion[499][500] Parent Company Operating Revenue and Costs (H1 2025) | Item | Revenue (Yuan) | Cost (Yuan) | | :--- | :--- | :--- | | Main Business | 294,970,012.23 | 164,213,130.64 | | Other Business | 2,623,420.91 | 511,661.56 | | Total | 297,593,433.14 | 164,724,792.20 | Parent Company Investment Income (H1 2025) | Item | Current Period Amount (Yuan) | | :--- | :--- | | Investment income from disposal of trading financial assets | 7,997,319.04 | | Total | 7,997,319.04 | Supplementary Information This section provides details on non-recurring items and calculates the return on equity and earnings per share for the period Detailed Statement of Non-recurring Profit and Loss for H1 2025 | Item | Amount (Yuan) | | :--- | :--- | | Gains/Losses from Disposal of Non-current Assets | 108,286.48 | | Government Grants Recognized in Current Profit or Loss | 33,333.30 | | Fair Value Gains/Losses on Financial Assets and Liabilities and Disposal Gains/Losses | 22,288,930.36 | | Other Non-operating Income and Expenses | -684,369.58 | | Less: Income Tax Impact | 5,436,545.14 | | Total | 16,309,635.42 | Return on Equity and Earnings Per Share for H1 2025 | Profit for the Period | Weighted Average Return on Equity | Earnings Per Share (Yuan/share) | | :--- | :--- | :--- | | Net profit attributable to common shareholders | 1.29% | 0.1606 | | Net profit attributable to common shareholders after deducting non-recurring items | 0.78% | 0.0890 | - The company has no other profit or loss items that meet the definition of non-recurring items, nor has it reclassified any non-recurring items as recurring[510] - The company has no discrepancies in net profit and net assets between financial reports disclosed under international accounting standards and Chinese accounting standards[511]