千百度(01028) - 2025 - 中期业绩

Interim Results Financial Highlights During the reporting period, the Company turned from profit to loss, with revenue decreasing year-on-year by 11.2%, a net loss of RMB 141.8 million, and basic loss per share of RMB 6.84 cents Financial Highlights | | 2025 RMB thousands | 2024 RMB thousands | | :--- | :--- | :--- | | Revenue | 640,165 | 720,643 | | Gross Profit | 381,867 | 419,946 | | (Loss) / Profit Before Income Tax | (134,713) | 68,897 | | (Loss) / Profit for the Period | (141,800) | 52,594 | | (Loss) / Profit for the Period Attributable to Owners of the Company | (141,978) | 52,414 | | Basic (Loss) / Earnings Per Share (RMB cents) | (6.84) | 2.52 | - The Company turned from profit in the same period last year to a loss, primarily due to decreased revenue and impairment provision for trade debts[4][44] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended 30 June 2025, the Company's revenue decreased year-on-year by 11.2% to RMB 640.2 million, gross profit decreased by 9.0% to RMB 381.9 million, and the period turned from a profit of RMB 52.6 million in the same period last year to a loss of RMB 141.8 million, mainly due to impairment provision for trade debts Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | | 2025 RMB thousands | 2024 RMB thousands | | :--- | :--- | :--- | | Revenue | 640,165 | 720,643 | | Cost of Sales | (258,298) | (300,697) | | Gross Profit | 381,867 | 419,946 | | Other Income and Other Gains and Losses | (124,452) | 55,549 | | Distribution and Selling Expenses | (330,159) | (346,574) | | Administrative and General Expenses | (61,530) | (59,512) | | Finance Costs | (439) | (512) | | (Loss) / Profit Before Income Tax | (134,713) | 68,897 | | Income Tax Expense | (7,087) | (16,303) | | (Loss) / Profit for the Period | (141,800) | 52,594 | | (Loss) / Profit for the Period Attributable to Owners of the Company | (141,978) | 52,414 | | Total Comprehensive (Expense) / Income for the Period | (149,379) | 44,217 | - Loss for the period is mainly attributable to an impairment provision of RMB 149.05 million for trade debts due from former subsidiary Nanjing Meilihua[21][44] Condensed Consolidated Statement of Financial Position As at 30 June 2025, the Company's total assets were RMB 1,332.6 million, a decrease from RMB 1,481.1 million at 2024 year-end, with net current assets decreasing by 21.8% to RMB 672.8 million Condensed Consolidated Statement of Financial Position | | 30 June 2025 RMB thousands | 31 December 2024 RMB thousands | | :--- | :--- | :--- | | Non-current Assets | | | | Property, Plant and Equipment | 178,684 | 181,449 | | Right-of-use Assets | 65,957 | 73,638 | | Other Intangible Assets | 3,338 | 5,644 | | Goodwill | 5,725 | 5,725 | | Equity Investments at Fair Value Through Other Comprehensive Income | 6,754 | 18,300 | | Deferred Tax Assets | 30,967 | 31,226 | | Long-term Deposits, Other Receivables and Prepayments | 76,667 | 16,225 | | Current Assets | | | | Inventories | 304,922 | 302,587 | | Trade Receivables | 142,414 | 159,057 | | Other Receivables and Prepayments | 33,420 | 257,264 | | Bank Balances and Cash | 483,405 | 429,748 | | Current Liabilities | | | | Trade Payables | 122,424 | 106,443 | | Other Payables | 96,496 | 107,697 | | Contract Liabilities | 32,628 | 36,065 | | Lease Liabilities | 8,825 | 12,221 | | Current Tax Liabilities | 31,329 | 26,518 | | Non-current Liabilities | | | | Lease Liabilities | 5,283 | 7,152 | | Total Equity | 1,035,590 | 1,184,969 | - Net current assets decreased year-on-year by RMB 187.1 million, primarily due to a significant decrease in other receivables and prepayments[30][82] Condensed Consolidated Statement of Changes in Equity As at 30 June 2025, total equity attributable to owners of the Company was RMB 1,026.1 million, a decrease from RMB 1,175.7 million at 2024 year-end, mainly due to a total comprehensive expense of RMB 149.6 million for the period Condensed Consolidated Statement of Changes in Equity | | Share Capital RMB thousands | Share Premium RMB thousands | Statutory Reserve RMB thousands | Reserve for Equity Investments at Fair Value Through Other Comprehensive Income RMB thousands | Contributed Surplus RMB thousands | Retained Profits RMB thousands | Equity Attributable to Owners of the Company RMB thousands | Non-controlling Interests RMB thousands | Total Equity RMB thousands | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at 1 January 2024 (Audited) | 209,097 | 646,042 | 180,653 | 1,556 | – | 345,285 | 1,382,633 | 9,237 | 1,391,870 | | Total Comprehensive (Expense) / Income for the Period (Unaudited) | – | – | – | (8,377) | – | 52,414 | 44,037 | 180 | 44,217 | | Cancellation of Share Premium (Unaudited) | – | (646,042) | – | – | 646,042 | – | – | – | – | | Special Dividend (Unaudited) | – | – | – | – | (65,056) | (185,948) | (251,004) | – | (251,004) | | Transfer (Unaudited) | – | – | 4,432 | – | – | (4,432) | – | – | – | | At 30 June 2024 (Unaudited) | 209,097 | – | 185,085 | (6,821) | 580,986 | 207,319 | 1,175,666 | 9,417 | 1,185,083 | | Balance at 1 January 2025 (Audited) | 209,097 | – | 188,255 | (8,051) | 589,867 | 196,518 | 1,175,686 | 9,283 | 1,184,969 | | Total Comprehensive (Expense) / Income for the Period (Unaudited) | – | – | – | (7,579) | – | (141,978) | (149,557) | 178 | (149,379) | | Transfer (Unaudited) | – | – | 2,218 | – | – | (2,218) | – | – | – | | At 30 June 2025 (Unaudited) | 209,097 | – | 190,473 | (15,630) | 589,867 | 52,322 | 1,026,129 | 9,461 | 1,035,590 | - On 27 June 2024, the Company approved the cancellation of share premium of RMB 646.042 million, which was transferred to contributed surplus[11] Notes to the Condensed Consolidated Financial Statements This chapter details the basis of preparation, accounting policies, operating segment information, revenue and expense breakdowns, dividend policy, and the composition and changes of major asset and liability items, particularly disclosing the impairment provision and settlement for trade debts due from former subsidiary Nanjing Meilihua 1. General Information The Company was incorporated in Bermuda and is primarily engaged in the manufacturing and sales of branded fashion footwear and toy retail business, with its shares listed on the Main Board of HKEX - The Company is an investment holding company, and its subsidiaries are primarily engaged in the manufacturing and sales of branded fashion footwear and toy retail[13] - The Company's shares are listed on the Main Board of HKEX[13] 2. Basis of Preparation The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules of the Stock Exchange, with accounting policies consistent with the 2024 annual financial statements - Financial statements are prepared in accordance with International Accounting Standard 34 and the Listing Rules of the Stock Exchange[15] 3. Adoption of New and Revised International Financial Reporting Standards The Group has adopted all new and revised International Financial Reporting Standards effective from 1 January 2025, which did not result in significant changes to accounting policies or financial statement amounts - Adoption of new and revised IFRSs did not result in significant changes to accounting policies or financial statement amounts[16] 4. Operating Segment Information The Company primarily operates three segments: retail and wholesale footwear, contract manufacturing footwear, and toy retail; retail and wholesale footwear remains the primary revenue source but segment results significantly decreased; contract manufacturing footwear revenue and results both significantly declined; toy retail revenue increased Segment Revenue | | 2025 RMB thousands | 2024 RMB thousands | | :--- | :--- | :--- | | Retail and Wholesale Footwear－External Sales | 566,406 | 612,389 | | Contract Manufacturing Footwear－External Sales | 28,989 | 72,398 | | Toy Retail－External Sales | 44,770 | 35,856 | | Total Segment Revenue | 640,165 | 720,653 | Segment Results | | 2025 RMB thousands | 2024 RMB thousands | | :--- | :--- | :--- | | Retail and Wholesale Footwear | 21,146 | 71,646 | | Contract Manufacturing Footwear | (6,893) | (726) | | Toy Retail | 184 | 329 | | Total Segment Results | 14,437 | 71,249 | Segment Assets and Liabilities | | 30 June 2025 RMB thousands | 31 December 2024 RMB thousands | | :--- | :--- | :--- | | Total Segment Assets | 1,999,419 | 2,151,684 | | Total Consolidated Assets | 1,332,575 | 1,481,065 | | Total Segment Liabilities | 970,955 | 990,264 | | Total Consolidated Liabilities | 296,985 | 296,096 | 5. Revenue For the six months ended 30 June 2025, total revenue was RMB 640.2 million, a year-on-year decrease of 11.2%; of which, retail and wholesale footwear contributed 88.5% of the revenue, contract manufacturing footwear and toy retail contributed 4.5% and 7.0% respectively, with China market being the main source of revenue Revenue by Business Segment | | 2025 RMB thousands | 2024 RMB thousands | | :--- | :--- | :--- | | Retail and Wholesale Footwear | 566,406 | 612,389 | | Contract Manufacturing Footwear | 28,989 | 72,398 | | Toy Retail | 44,770 | 35,856 | | Total Revenue | 640,165 | 720,643 | Revenue by Geographical Market | | 2025 RMB thousands | 2024 RMB thousands | | :--- | :--- | :--- | | People's Republic of China | 612,972 | 649,276 | | United States of America | 27,193 | 71,367 | | Total | 640,165 | 720,643 | - Revenue recognition point is at a point in time[21] 6. Other Income and Other Gains and Losses Other income and other gains and losses for the period recorded a loss of RMB 124.5 million, primarily due to an impairment provision of RMB 149.05 million for trade debts due from former subsidiary Nanjing Meilihua Other Income and Other Gains and Losses | | 2025 RMB thousands | 2024 RMB thousands | | :--- | :--- | :--- | | Government Grants | 7,697 | 33,383 | | Interest Income from Bank Deposits | 3,008 | 6,155 | | Royalty Income | 8,111 | 10,169 | | Net Exchange Gains / (Losses) | 339 | (1,840) | | Impairment Provision for Trade Receivables | (1,345) | (113) | | Impairment Provision for Trade Debts | (149,050) | – | | Total Other Income and Other Gains and Losses | (124,452) | 55,549 | - Impairment provision for trade debts was RMB (149,050) thousands, which is the main component of other gains and losses for the period[21] 7. Finance Costs Finance costs primarily consist of interest on leases, which was RMB 0.4 million for the current period, largely consistent with the same period last year Finance Costs | | 2025 RMB thousands | 2024 RMB thousands | | :--- | :--- | :--- | | Interest on Lease Liabilities | 439 | 512 | 8. Income Tax Expense Income tax expense decreased year-on-year by 56.4% to RMB 7.1 million, primarily due to a decrease in profit before tax; China Corporate Income Tax is calculated at a 25% tax rate, there are no assessable profits in Hong Kong, and dividend withholding tax rate is 5% or 10% depending on the recipient's region Income Tax Expense | | 2025 RMB thousands | 2024 RMB thousands | | :--- | :--- | :--- | | Current Tax - China Corporate Income Tax | 4,673 | 11,793 | | Current Tax - China Withholding Tax | 2,156 | – | | Deferred Tax | 258 | 4,510 | | Income Tax Expense | 7,087 | 16,303 | - China Corporate Income Tax is calculated at a 25% tax rate[23] - Chinese subsidiaries distributing dividends to non-Chinese tax resident entities are subject to a 5% or 10% withholding tax[24] 9. Dividends The Board did not recommend the payment of an interim dividend for the first half of 2025; a special dividend of HKD 0.13 per share, totaling RMB 251.0 million, was distributed in the first half of 2024 Dividends | | 2025 RMB thousands | 2024 RMB thousands | | :--- | :--- | :--- | | Special dividend per ordinary share of HKD nil (2024: HKD 0.13) approved | – | 251,004 | - The Board did not recommend the payment of an interim dividend for the first half of 2025[25][90] 10. (Loss) / Earnings Per Share Basic and diluted loss per share for the period were both RMB 6.84 cents, compared to earnings per share of RMB 2.52 cents in the same period last year; there were no potential dilutive ordinary shares during the period (Loss) / Earnings Per Share | | 2025 RMB cents | 2024 RMB cents | | :--- | :--- | :--- | | - Basic | (6.84) | 2.52 | | - Diluted | (6.84) | 2.52 | - Basic (loss) / earnings per share is calculated based on the loss for the period attributable to owners of the Company of approximately RMB 141.978 million and the weighted average number of ordinary shares of 2,077,000,000 shares[26] 11. Trade Receivables As at 30 June 2025, net trade receivables were RMB 142.4 million, a decrease from RMB 159.1 million at 2024 year-end; the credit period generally ranges from 30 to 90 days Trade Receivables | | 30 June 2025 RMB thousands | 31 December 2024 RMB thousands | | :--- | :--- | :--- | | Trade Receivables | 144,133 | 159,431 | | Provision for Loss | (1,719) | (374) | | Total | 142,414 | 159,057 | Ageing Analysis of Trade Receivables | | 30 June 2025 RMB thousands | 31 December 2024 RMB thousands | | :--- | :--- | :--- | | 0 to 60 days | 129,235 | 138,020 | | 61 to 180 days | 10,418 | 17,094 | | 181 days to 1 year | 321 | 2,411 | | Over 1 year | 2,440 | 1,532 | | Total | 142,414 | 159,057 | - The credit period generally ranges from 30 to 90 days, and the Company maintains strict control over uncollected receivables[28] 12. Other Receivables and Prepayments Total other receivables and prepayments were RMB 110.1 million, a significant decrease from RMB 273.5 million at 2024 year-end; of which, trade debts due from former subsidiary Nanjing Meilihua were settled through civil mediation, resulting in an impairment loss of RMB 149.05 million recognized in the current period Other Receivables and Prepayments | | 30 June 2025 RMB thousands | 31 December 2024 RMB thousands | | :--- | :--- | :--- | | Non-current Assets | | | | Long-term Deposits | 13,754 | 14,310 | | Prepayments | 1,761 | 1,915 | | Trade Debts Due from a Former Subsidiary | 61,152 | – | | Current Assets | | | | Prepayments | 12,576 | 12,991 | | Trade Debts Due from a Former Subsidiary | 4,000 | 214,207 | | VAT Recoverable | 1,233 | 10,725 | | Interest Receivable | 360 | 189 | | Others | 15,251 | 19,152 | | Total | 110,087 | 273,489 | - Trade debts due from Nanjing Meilihua were settled through civil mediation, with RMB 65.152 million to be repaid in regular installments from October 2025 to March 2045[33] - The settlement with Nanjing Meilihua resulted in a total impairment loss of approximately RMB 149.050 million, recognized in the current period[34] 13. Trade Payables As at 30 June 2025, trade payables were RMB 122.4 million, an increase from RMB 106.4 million at 2024 year-end Trade Payables | | 30 June 2025 RMB thousands | 31 December 2024 RMB thousands | | :--- | :--- | :--- | | Trade Payables | 122,424 | 106,443 | Ageing Analysis of Trade Payables | | 30 June 2025 RMB thousands | 31 December 2024 RMB thousands | | :--- | :--- | :--- | | 0 to 90 days | 116,846 | 101,556 | | 91 to 180 days | 667 | 486 | | 181 days to 1 year | 726 | 225 | | Over 1 year | 4,185 | 4,176 | | Total | 122,424 | 106,443 | Management Discussion and Analysis Business Review In H1 2025, the global economy faced downside risks, and China's economy recovered amidst challenges; the Company firmly executed its strategic transformation, focusing on core business enhancement, omnichannel experience optimization, and continuous operational improvement to address challenges Macroeconomic Environment The global economy is affected by geopolitical conflicts and trade protectionism, with the World Bank lowering its 2025 global economic growth forecast to 2.3%; China's economy is expected to slow to 4.5%, but H1 GDP grew 5.3% year-on-year, and the consumption market shows a strong recovery trend - World Bank lowered 2025 global economic growth forecast to 2.3%, primarily due to US tariff measures[37] - World Bank forecasts China's economy to slow to 4.5% in 2025 and further to 4.0% in 2026[38] - China's H1 2025 GDP grew 5.3% year-on-year, and total retail sales of consumer goods grew 5.0% year-on-year[39][40] Company Strategy and Response The Company firmly executes its strategic transformation, focusing on core business enhancement, omnichannel experience optimization, and continuous operational improvement to address global economic slowdown challenges, and plans to continue focusing on footwear as its core business to enhance market competitiveness - The Company firmly executes its strategic transformation, focusing on core business enhancement, omnichannel experience optimization, and continuous operational improvement[42] - The Group will continue to focus on footwear as its core business, steadily enhance its market competitiveness, and simultaneously optimize its operations and management systems[42] Operational Performance During the reporting period, the Company's total revenue decreased year-on-year by 11.2% to RMB 640.2 million, with a loss for the period of RMB 141.8 million; total retail stores net decreased by 47 stores, and the Company continues to optimize its retail network, enhance single-store efficiency, optimize inventory and supply chain, actively deploy multi-brand and full-category products, and increase marketing efforts on social media Retail Network Optimization The Company continues to optimize its retail network, closing underperforming stores and retaining efficient stores in core business districts to enhance single-store operational efficiency and overall profitability; it will strategically close department store outlets in the future, while maintaining stable numbers of outlet and shopping mall stores Geographical Distribution of Footwear Retail Stores (As at 30 June 2025) | Sales Region | C.banner Self-operated Retail Stores | C.banner Third-party Retail Stores | EBLAN Self-operated Retail Stores | EBLAN Third-party Retail Stores | MIO Self-operated Retail Stores | MIO Third-party Retail Stores | Nairan Self-operated Retail Stores | Nairan Third-party Retail Stores | Total | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Northeast China | 74 | 13 | 16 | – | 11 | 12 | 1 | – | 127 | | North China | 87 | 69 | 13 | – | 12 | 26 | 5 | – | 212 | | East China | 159 | 27 | 33 | – | 53 | 3 | 31 | 1 | 307 | | Shanghai | 63 | – | – | – | 9 | – | 9 | – | 81 | | South China | 85 | 6 | – | – | 10 | – | 1 | – | 102 | | Western China | 96 | 16 | 2 | 1 | 17 | 4 | 3 | – | 139 | | Total | 564 | 131 | 64 | 1 | 112 | 45 | 50 | 1 | 968 | - The Company continues to implement the core strategy of "optimizing channel structure and improving single-store performance" to strengthen offline retail network operational efficiency[46] - In the second half of the year, underperforming department store outlets will be strategically closed, while the number of outlet and shopping mall stores will remain largely stable[46] Single-Store Efficiency Improvement and Inventory Optimization The Company optimizes product portfolio, promotional strategies, and staffing through data analysis to enhance same-store sales growth; simultaneously, it strictly controls initial order quantities, adopts smart replenishment systems, shortens production and replenishment cycles, and improves supply chain efficiency - The Group continues to strengthen refined management of single stores, optimizing product portfolio, promotional strategies, and staffing through data analysis[49] - Strictly controls initial order quantities to reduce inventory backlog risks, and introduces smart forecasting systems and real-time sales data analysis to achieve replenishment within 7 to 15 days[50][51] Multi-Brand Matrix and Product Strategy The Company owns multiple proprietary brands such as "C.banner", "EBLAN", "MIO", and "Nairan", and through a "blockbuster product strategy" and AI design platform, has shortened product development cycles by 40%, increased product sales by 35%, and plans to expand scenario-based product lines and increase the use of eco-friendly materials - The Company owns multiple proprietary brands such as "C.banner", "EBLAN", "MIO", and "Nairan" to meet diverse consumer needs[52] - Introducing an AI design platform, new product development cycle shortened by 40%, product sales increased by 35%, and 3D digital sample technology reduced cost waste by 60%[54] - Plans to establish a "classic + limited edition" dual-track product matrix, deepen sustainable fashion initiatives, and increase the use of eco-friendly materials to 50% in H2 2025[55] Comfort and Unique Design Facing the shift in China's footwear market from "aesthetics first" to "comfort first", the Company continues to invest in R&D for athletic and casual footwear, and upgraded silent shoe technology to its fifth generation, with sales accounting for approximately 20% of total sales - China's footwear market is undergoing a shift in consumer philosophy from "aesthetics first" to "comfort first", with functional footwear becoming mainstream[56] - C.banner's silent shoe technology has iterated to the fifth generation, with sales accounting for approximately 20% of total sales[57] Creating the "Family Shoe Store" Concept The Company launched the "Family Shoe Store" concept, offering a one-stop shopping experience for men's, women's, and children's shoes, combined with European architectural style design, children's zones, and book exchange activities to enhance customer experience - Launched the "Family Shoe Store" concept, offering one-stop shopping for men's, women's, and children's shoes[58] - Stores feature European architectural style design, with children's zones and book exchange activities, aiming to create a warm and pleasant retail experience[59] Decentralized Channels and Refined Operations The Company has 968 offline stores in China, with main sales channels including department stores, outlets, shopping malls, and online e-commerce; it will prioritize expanding in the China market in the future, deepening its presence through refined operations - The Company currently has 968 offline stores in China, of which 790 are self-operated stores[60] - Will continue to prioritize expanding in the China market in the future, deepening its presence through refined operations to explore more business opportunities[61] Enhancing Competitiveness and Achieving Sustainable Development Xuzhou C.banner Footwear Co., Ltd. is undergoing industrial upgrading, exploring European and American orders, and implementing a dual market strategy to provide rapid market feedback, introduce international standards, enhance production flexibility, and improve risk resistance capabilities - Xuzhou C.banner Footwear Co., Ltd. is undergoing industrial upgrading, exploring European and American orders, and implementing a dual market strategy[62] - The dual market strategy helps improve product quality design, introduce international standards, enhance production flexibility, and improve risk resistance capabilities[62] Increased Marketing on High-Traffic Social Media Platforms Facing the booming e-commerce market, the Company actively deploys on content e-commerce platforms like Xiaohongshu and Douyin, enhancing user engagement through live streaming, short videos, and KOL collaborations, and deepening its online-offline integration strategy to build a private domain traffic closed-loop - In H1 2025, national online retail sales grew year-on-year by 8.5%[64] - The Company actively deploys on content e-commerce platforms like Xiaohongshu and Douyin, establishes a multi-dimensional live streaming system, and deepens its online-offline integration strategy[65][66] - Adopts a tiered KOL collaboration strategy, balancing product quality with price advantages to build customer loyalty[67] - For the six months ended 30 June 2025, the Group's total revenue decreased year-on-year by 11.2% to RMB 640.2 million[44] - Loss for the period was RMB 141.8 million, mainly attributable to the impairment loss provision for Nanjing Meilihua trade debts and decreased revenue from the fashion footwear business[44] - As at end of June 2025, the Company's total retail stores were 968, a net decrease of 47 stores since the beginning of the year[44] Outlook Global economic outlook faces downside risks, with escalating trade tensions and policy uncertainties potentially curbing growth; China's economy slows, with weak consumption growth; the Company will fully advance its digitalization strategy, leveraging technology to achieve comprehensive upgrades in product design, production management, and marketing services, while focusing on core and blockbuster products to address challenges and achieve sustainable development - Global economic growth is expected to decline to 2.3% in H2 2025, with only a weak recovery projected between 2026 and 2027[70] - The Company will fully advance its digitalization strategy, leveraging technology to achieve comprehensive upgrades in product design, production management, and marketing services[71] - The Company will utilize AI technology to optimize market planning, enhance operational efficiency, and apply it to core systems such as store management, member services, and cloud warehouse logistics[72] - Product strategy will focus on enhancing core products and creating blockbuster products, with both scale and gross profit expected to grow in H2 2025[73] Financial Review For the six months ended 30 June 2025, the Company's total revenue decreased year-on-year by 11.2% to RMB 640.2 million, with a loss for the period of RMB 141.8 million, a 369.6% decrease from the profit in the same period last year; gross profit margin increased by 1.4 percentage points to 59.7% Overall Financial Performance For the six months ended 30 June 2025, the Company's total revenue decreased year-on-year by 11.2% to RMB 640.2 million, with a loss for the period of RMB 141.8 million, a 369.6% decrease from the profit in the same period last year - Total revenue decreased by 11.2% to RMB 640.2 million[76] - Loss for the period was RMB 141.8 million, a 369.6% decrease from the profit of RMB 52.6 million in the same period last year[76] Revenue Analysis Revenue decrease mainly stemmed from the footwear business, with retail and wholesale business revenue decreasing by RMB 46.0 million, contract manufacturing business revenue decreasing by RMB 43.4 million, and toy retail business revenue growing by 24.9% Revenue by Business Segment and Growth Rate | | 2025 RMB thousands | Percentage of Total Revenue (%) | 2024 RMB thousands | Percentage of Total Revenue (%) | Growth Percentage (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Retail and Wholesale Business | 566,406 | 88.5 | 612,389 | 85.0 | (7.5) | | Contract Manufacturing Business | 28,989 | 4.5 | 72,398 | 10.0 | (60.0) | | Toy Retail Business | 44,770 | 7.0 | 35,856 | 5.0 | 24.9 | | Total | 640,165 | 100 | 720,643 | 100 | (11.2) | - Revenue decrease mainly stemmed from the footwear business, affected by weak domestic consumer demand and tariffs[77] Profitability Analysis Gross profit decreased by 9.0% to RMB 381.9 million, but gross profit margin increased by 1.4 percentage points to 59.7%; distribution and selling expenses decreased by 4.7%, administrative and general expenses increased by 3.4%; other income and expenses recorded a loss of RMB 124.5 million, mainly due to impairment provision for trade debts; income tax expense decreased by 56.4% - Gross profit decreased by 9.0% to RMB 381.9 million, gross profit margin increased by 1.4 percentage points to 59.7%[78] - Distribution and selling expenses decreased by 4.7% to RMB 330.2 million, accounting for 51.6% of revenue[78] - Other income and expenses and other gains and losses recorded a loss of RMB 124.5 million, mainly due to an impairment provision of RMB 149.1 million for trade debts due from Nanjing Meilihua[79] - Income tax expense decreased by 56.4% to RMB 7.1 million[80] Liquidity and Financial Resources As at 30 June 2025, bank balances and cash were RMB 483.4 million; net cash generated from operating activities was RMB 76.6 million, a year-on-year increase of RMB 49.9 million; net current assets decreased by 21.8% to RMB 672.8 million - Bank balances and cash were RMB 483.4 million, an increase from end of 2024[81] - Net cash generated from operating activities was RMB 76.6 million, a year-on-year increase of RMB 49.9 million[81] - Net current assets decreased by RMB 187.1 million or 21.8% to RMB 672.8 million[82] Pledge of Assets, Contingent Liabilities and Capital Commitments As at 30 June 2025, the Company had no pledged assets, no material contingent liabilities, and no contracted capital commitments not provided for - As at 30 June 2025, the Group had no pledged assets[83] - As at 30 June 2025, the Group had no material contingent liabilities[84] - As at 30 June 2025, the Group had no contracted capital commitments not provided for in the condensed consolidated financial statements[85] Exchange Rate Risk Management The Company's sales are primarily denominated in RMB, while contract manufacturing business is denominated in USD; exchange gains of RMB 0.3 million were recorded for the period, with no derivative instruments held to hedge foreign exchange risk - Sales are primarily denominated in RMB, while contract manufacturing business is primarily denominated in USD[86] - Exchange gains of RMB 0.3 million were recorded for the period, compared to a loss of RMB 1.8 million in the same period last year[86] Future Plans for Material Investments or Capital Assets Other than ordinary course of business, as at 30 June 2025, the Company had no specific plans to acquire any material investments or capital assets - As at 30 June 2025, other than ordinary course of business, the Group had no specific plans to acquire any material investments or capital assets[87] Human Resources As at 30 June 2025, the Company had 3,999 employees, a decrease from end of 2024; the Company offers competitive remuneration and benefits to retain talent - As at 30 June 2025, the Group had 3,999 employees (31 December 2024: 4,412 employees)[88] - The Company offers competitive remuneration and benefits, including mandatory provident fund, insurance and medical benefits, and discretionary bonuses[88] Significant Events Subsequent to the reporting period, the Company reached a civil mediation settlement with former subsidiary Nanjing Meilihua regarding trade debts, agreeing to repay RMB 65.152 million in installments from October 2025 to March 2045 - Subsequent to the reporting period, the Company reached a civil mediation settlement with Nanjing Meilihua regarding trade debts, agreeing to repay RMB 65.152 million in installments from October 2025 to March 2045[89] Interim Dividends The Board did not recommend the payment of an interim dividend for the six months ended 30 June 2025 - The Board did not recommend the payment of an interim dividend for the six months ended 30 June 2025[90] Standard Code for Securities Transactions by Directors The Company has adopted a code of conduct for securities transactions by directors no less exacting than Appendix C3 of the Listing Rules, and confirmed that directors have complied with it throughout the reporting period - The Company has adopted a code of conduct for securities transactions by directors, and directors have confirmed compliance throughout the reporting period[91] Corporate Governance The Company is committed to maintaining high standards of corporate governance, and has complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period, however, Non-executive Director Ms. Cheng Xuanxuan was unable to attend the Annual General Meeting - The Company has complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, but Non-executive Director Ms. Cheng Xuanxuan was unable to attend the Annual General Meeting due to other commitments[92] Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended 30 June 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any listed securities, and the Company held no treasury shares - For the six months ended 30 June 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any listed securities[93] - As at 30 June 2025, the Company held no treasury shares[94] Audit Committee The Audit Committee has reviewed the accounting principles and policies adopted by the Group and the unaudited condensed consolidated interim results for the six months ended 30 June 2025 - The Audit Committee has reviewed the accounting principles and policies adopted by the Group and the unaudited condensed consolidated interim results for the six months ended 30 June 2025[95] Publication of Unaudited Condensed Consolidated Interim Results and 2025 Interim Report on HKEX and Company Website This interim results announcement has been published on the HKEX and the Company's website, and the 2025 interim report will be dispatched to shareholders and published on relevant websites in due course - This interim results announcement has been published on the HKEX and the Company's website[96] By Order of the Board Mr. Chen Yixi, Chairman of the Board, signed this announcement on 28 August 2025 - Mr. Chen Yixi, Chairman of the Board, signed this announcement on 28 August 2025[97][98]