中国派对文化(01532) - 2025 - 中期业绩

Interim Results Announcement Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, the Group turned from profit to loss, with a loss of RMB 48,583 thousand, primarily due to a significant increase in impairment losses on property, plant and equipment and right-of-use assets. Revenue decreased by 25.3% year-on-year, and gross profit decreased by 30.3% | Metric | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 122,951 | 164,639 | -25.3 | | Cost of Sales | (95,543) | (125,337) | -23.8 | | Gross Profit | 27,408 | 39,302 | -30.3 | | Other Income | 11,338 | 8,592 | 31.9 | | Selling Expenses | (5,037) | (4,699) | 7.2 | | Impairment Loss on Property, Plant and Equipment and Right-of-Use Assets | (47,165) | (6,034) | 681.7 | | Operating (Loss)/Profit | (47,749) | 1,113 | -4390.5 | | Loss for the Period | (48,583) | (527) | -9100.0 | | (Loss)/Profit for the Period Attributable to Owners of the Company | (43,904) | 768 | -5828.9 | | Basic and Diluted (Loss)/Earnings Per Share (RMB cents) | (2.45) | 0.05 | -5000.0 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the Group's total assets and net assets both decreased. Net current assets declined, but the current ratio remained healthy at 233%. Bank borrowings significantly reduced, indicating an improved debt structure | Metric | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | Change (RMB '000) | | :--- | :--- | :--- | :--- | | Non-current Assets | 217,070 | 217,548 | -478 | | Current Assets | 181,192 | 199,561 | -18,369 | | Current Liabilities | 77,750 | 48,151 | 29,599 | | Net Current Assets | 103,442 | 151,410 | -47,968 | | Total Assets Less Current Liabilities | 320,512 | 368,958 | -48,446 | | Net Assets | 312,676 | 363,690 | -51,014 | | Bank Balances and Cash | 39,607 | 63,585 | -23,978 | | Bank Borrowings | 8,000 | 18,000 | -10,000 | - The current ratio was 233%, and the debt-to-equity ratio was 6.8%[55] Notes to the Interim Financial Report This section details the basis of preparation, accounting policies, segment information, and specific changes and valuation methods for various assets and liabilities in the interim financial report, revealing the Group's asset impairment, revenue structure changes, and liquidity management under economic downturns 1. General Information - The company is incorporated in the Cayman Islands, with shares listed on the Main Board of the Hong Kong Stock Exchange, primarily engaged in the design, development, production, sales, and marketing of cosplay products (costumes, wigs), lingerie, clothing/personal/home care products, and plant leasing[6] 2. Basis of Preparation - The condensed consolidated interim financial information is prepared in accordance with the Listing Rules of the Stock Exchange and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants, is unaudited, and presented in RMB thousands[7][8] 3. Adoption of Revised HKFRSs - The adoption of revised HKFRSs effective from January 1, 2025 (such as amendments to HKAS 21) had no significant impact on the results and financial position for the current and prior periods[9][10] 4. Estimates and Judgements - The accounting judgments, estimates, and assumptions made by management in preparing the financial information are consistent with those applied in the annual consolidated financial statements for the year ended December 31, 2024[12] 5. Segment Information - The Group's operating segments are primarily categorized by product and service lines, including wigs, apparel and others, clothing/personal/home care products, and plant leasing[13] Revenue by Segment (RMB '000) | Segment | Revenue for Six Months Ended June 30, 2025 (RMB '000) | Revenue for Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Wigs | 15,037 | 10,195 | 47.5 | | Apparel and Others | 91,708 | 137,994 | -33.5 | | Clothing, Personal, and Home Care Products | 16,206 | 16,450 | -1.5 | | Plant Leasing | – | – | Not Applicable | | Total | 122,951 | 164,639 | -25.3 | Segment Results (RMB '000) | Segment | Segment Results for Six Months Ended June 30, 2025 (RMB '000) | Segment Results for Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Wigs | (35,205) | (4,793) | | Apparel and Others | 15,538 | 20,315 | | Clothing, Personal, and Home Care Products | (19,993) | (5,411) | | Plant Leasing | 2,045 | (164) | | Total | (37,615) | 9,947 | 6. Revenue Revenue by Product Line (RMB '000) | Product Line | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Wigs | 15,037 | 10,195 | 47.5 | | Apparel and Others | 91,708 | 137,994 | -33.5 | | Clothing, Personal, and Home Care Products | 16,206 | 16,450 | -1.5 | | Total | 122,951 | 164,639 | -25.3 | Revenue by Business Type (RMB '000) | Business Type | Revenue for Six Months Ended June 30, 2025 (RMB '000) | Revenue for Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Contract Manufacturing Service (CMS) Business | 74,810 | 95,011 | -21.3 | | Original Brand Manufacturing (OBM) Business | 48,141 | 69,628 | -30.9 | | Total | 122,951 | 164,639 | -25.3 | 7. Other Income Other Income Details (RMB '000) | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | Y-o-Y Change (%) | | :--- | :--- | :--- | :--- | | Exchange Gain | 582 | 820 | -29.0 | | Bank Interest Income | 116 | 41 | 182.9 | | Government Grants | 1,383 | 670 | 106.4 | | Rental Income from Operating Leases of Investment Properties | 3,385 | 3,045 | 11.2 | | Income Related to Net Lease Investment | 112 | – | Not Applicable | | Public Business Income | 1,885 | 1,898 | -0.7 | | Subcontracting Income | 536 | 609 | -12.0 | | Gain on Disposal of Financial Assets at Fair Value Through Profit or Loss | – | 92 | -100.0 | | Others | 3,339 | 1,417 | 135.6 | | Total | 11,338 | 8,592 | 31.9 | 8. Profit/Loss before income tax - The loss for the period was primarily affected by factors such as inventory costs, depreciation, amortization, research and development costs, and staff costs. Notably, depreciation of property, plant and equipment, investment properties, and right-of-use assets all showed significant changes[21] Components of Profit/Loss before Income Tax (RMB '000) | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Inventory Costs Recognized as Expense | 65,396 | 93,999 | | Depreciation of Property, Plant and Equipment | 4,312 | 7,844 | | Depreciation of Investment Properties | 836 | 1,758 | | Depreciation of Right-of-Use Assets | 1,829 | 97 | | Amortization of Intangible Assets | 630 | 630 | | Research and Development Costs | 15,245 | 13,611 | | Staff Costs | 34,908 | 33,544 | 9. Income Tax Expense - No provision for Hong Kong profits tax. The PRC corporate income tax rate is 25%, but some PRC subsidiaries (Party Culture Group Co., Ltd., Yiwu Party Apparel Co., Ltd., and Zhejiang Keli Technology Co., Ltd.) are certified as "High-New Technology Enterprises" and enjoy a preferential tax rate of 15% for three years[22][23] Income Tax Expense Details (RMB '000) | Item | Six Months Ended June 30, 2025 (RMB '000) | Six Months Ended June 30, 2024 (RMB '000) | | :--- | :--- | :--- | | Current Tax - PRC Corporate Income Tax | – | (25) | | Deferred Tax | (388) | (1,433) | | Income Tax Expense | (388) | (1,458) | 10. Dividends - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2025 (2024: nil)[24] 11. Earnings/Loss per share Earnings/Loss per Share Details | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | (Loss)/Profit Attributable to Equity Holders of the Company (RMB '000) | (43,904) | 768 | | Weighted Average Number of Ordinary Shares in Issue ('000 shares) | 1,788,395 | 1,573,529 | | Basic and Diluted (Loss)/Earnings Per Share (RMB cents) | (2.45) | 0.05 | - Diluted loss/earnings per share is the same as basic loss/profit per share because the exercise price of share options was higher than the average market price of the shares[25] 12. Right-of-use assets Right-of-Use Assets (RMB '000) | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Carrying Amount | 16,988 | 6,874 | | Beginning of Period/Year | 6,874 | 7,016 | | Additions | 19,164 | 5,272 | | Depreciation | (1,829) | (572) | | Impairment Loss | (7,221) | – | | End of Period/Year | 16,988 | 6,874 | - For the six months ended June 30, 2025, an impairment loss of RMB 7,221 thousand on right-of-use assets was recognized (2024: nil)[27] 13. Investment properties Investment Properties Details | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Carrying Amount | 32,892 | 33,728 | | Fair Value | 51,882 | 53,557 | | Estimated Rental Value (per sq. meter) | RMB 11.5 | RMB 12 | | Discount Rate | 6% | 6% | - The fair value of investment properties is determined using the income approach, classified as Level 3 fair value hierarchy, and valued by independent professional valuers[29][30] 14. Property, plant and equipment Property, Plant and Equipment Details (RMB '000) | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Net Carrying Amount | 144,519 | 153,190 | | Additions | 35,585 | Not Applicable | | Impairment Loss | 39,944 | 6,034 | | Accumulated Depreciation | 130,352 | 86,096 | - For the six months ended June 30, 2025, an impairment loss of RMB 39,944 thousand on property, plant and equipment was recognized, a significant increase from the prior period, due to economic downturn and declining sales performance[31][33] - The impairment loss amount is determined by the recoverable amount of the cash-generating units, using the value-in-use method, with key assumptions including sales growth rate, production line utilization rate, pre-tax discount rate (23.0% to 23.5%), and perpetual growth rate (2% to 3%)[32][35] 15. Intangible assets Intangible Assets Details (RMB '000) | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Net Carrying Amount | 2,626 | 3,256 | | Accumulated Amortization | 16,388 | 15,758 | | Amortization Expense for the Period | 630 | Not Applicable | - Intangible assets primarily include trademarks and patents, with an amortization expense of RMB 630 thousand for the period[34] 16. Inventories Inventories Details (RMB '000) | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Raw Materials | 51,611 | 14,300 | | Work-in-progress | 1,015 | 2,805 | | Finished Goods | 3,303 | 5,057 | | Total | 55,929 | 22,162 | - Total inventories significantly increased, primarily due to a substantial rise in raw material inventories[34] 17. Trade and other receivables Trade and Other Receivables Details (RMB '000) | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Receivables (net of provision) | 52,778 | 8,218 | | Prepayments | 9,317 | 5,703 | | Other Tax Receivables | 6,856 | 2,370 | | Total | 77,491 | 20,401 | Aging of Trade Receivables (RMB '000) | Aging | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0 to 30 days | 40,048 | 4,228 | | 31 to 60 days | 12,599 | 658 | | 61 to 90 days | 11 | 1,368 | | 91 to 365 days | 88 | 1,964 | | Over 365 days | 32 | – | | Total | 52,778 | 8,218 | - Trade receivables significantly increased, primarily concentrated in the 0 to 30 days aging category, with expected credit loss provisions rising from RMB 5,996 thousand to RMB 6,481 thousand[36][37][38] 18. Trade and other payables Trade and Other Payables Details (RMB '000) | Item | As of June 30, 2025 (RMB '000) | As of December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | Trade Payables | 45,919 | 10,179 | | Accrued Salaries | 8,816 | 5,610 | | Other Tax Payables | 5,596 | 5,011 | | Other Payables | 1,786 | 2,487 | | Total | 62,117 | 23,287 | - Total trade and other payables significantly increased, primarily due to a substantial rise in trade payables[39] Management Discussion and Analysis This section provides an in-depth analysis of the Group's financial performance, operating activities, future outlook, and significant events during the reporting period. The Group faced global economic challenges, leading to decreased revenue and gross profit margins, and recognized significant asset impairment losses. Concurrently, the Group actively adjusted its financial structure and sought business breakthroughs through measures such as property disposal and warrant issuance Financial Review Revenue and Gross Profit Margin | Business Type | Revenue for Six Months Ended June 30, 2025 (RMB '000) | Revenue for Six Months Ended June 30, 2024 (RMB '000) | Revenue Change (%) | 2025 Gross Profit Margin (%) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | CMS Business | 74,810 | 95,011 | -21.3 | 22.7 | 23.8 | | OBM Business | 48,141 | 69,628 | -30.9 | 21.6 | 24.0 | | Total | 122,951 | 164,639 | -25.3 | 22.3 | 23.9 | - Total revenue decreased by 25.3%, primarily due to global economic challenges, the US Federal Reserve's slower pace of interest rate cuts, a stronger US dollar, trade conflicts, and geopolitical tensions, which adversely affected sales of cosplay costumes, wigs, and lingerie[41][42] - Gross profit margin declined from 23.9% to 22.3%, mainly due to reduced gross profit contribution from clothing care, cosplay costumes, and lingerie in the OBM business, reflecting intense market competition and consumer spending downgrades[43][45] Cost of Sales - Cost of sales primarily includes raw material costs, direct labor costs, and production expenses (such as subcontracting payments, utilities, and social security for production staff)[46] Other Income - Other income increased by approximately RMB 2.7 million to RMB 11.3 million, mainly due to increased rental income from operating leases of investment properties and other rental income[47] Selling Expenses - Selling expenses as a percentage of revenue increased from 2.8% to 4.1%, primarily due to increased advertising expenses for promoting clothing, personal, and home care product businesses[48] Administrative and Other Operating Expenses - Administrative and other operating expenses decreased by approximately RMB 1.2 million to RMB 33.8 million, mainly due to reduced depreciation of property, plant and equipment[49] Expected Credit Loss Provision for Trade Receivables - Expected credit loss provisions decreased, primarily due to a reduction in long-term overdue trade receivables[50] Impairment Loss on Property, Plant and Equipment and Right-of-Use Assets - An impairment loss of approximately RMB 47.2 million on property, plant and equipment and right-of-use assets was recognized, mainly due to decreased turnover in cash-generating units such as wigs and clothing care, leading to a reduction in recoverable amounts[51] Finance Costs - Finance costs increased by approximately RMB 0.3 million to RMB 0.4 million, primarily due to increased interest paid on short-term borrowings[52] Income Tax - Income tax expense decreased from RMB 1.5 million to RMB 0.4 million, primarily due to a reduction in operating profit[53] Share of Loss of Associates - Share of loss of associates was RMB 2 thousand, related to an associate engaged in developing cultural tourism businesses[54] Financial Resources and Liquidity - Total cash and cash equivalents decreased by approximately RMB 24.0 million to RMB 39.6 million. Total bank borrowings decreased from RMB 18.0 million to RMB 8.0 million[55] - The current ratio was 233%, and the debt-to-equity ratio was 6.8%[55] Capital Expenditure - The Group invested approximately RMB 35.6 million in property, plant and equipment, primarily for expanding and upgrading its manufacturing and production base in Yichun City, Jiangxi Province[57] Pledge of Assets - As of June 30, 2025, and December 31, 2024, the Group had no assets pledged[58] Contingent Liabilities - The Group had no significant contingent liabilities at the end of the reporting period[59] Foreign Currency Risk - The Group faces currency risk from sales to overseas customers primarily denominated in USD and JPY, adopting a prudent approach and utilizing forward foreign exchange contracts to mitigate risk[60] Employees and Remuneration Policy - As of June 30, 2025, the Group had approximately 1,175 employees, with total staff costs of approximately RMB 34.9 million. The remuneration policy is regularly reviewed based on market practice, employee performance, and the Group's financial performance, with no significant changes[61] Disposal of Property Holding Company and Leaseback of Property - The company completed the disposal of a property holding company on April 30, 2025, for a consideration of RMB 80,000,000, constituting a very substantial disposal[62][66] - Concurrently, the Group entered into a leaseback agreement with the buyer to lease back the property for three years with annually increasing rent, which constitutes a discloseable transaction[63][64][65] Issue of Unlisted Warrants - On March 26, 2025, the company entered into a warrant subscription agreement to issue warrants for up to 354,652,624 shares at a subscription price of HKD 1.00, with an exercise period of five years[67] Use of Proceeds - Net proceeds from the property disposal were approximately RMB 79.5 million, primarily allocated for expanding and upgrading manufacturing facilities, repaying borrowings, and general working capital[68][69] Use of Proceeds from Property Disposal (RMB '000) | Purpose | Intended Net Amount (RMB '000) | Amount Utilized (RMB '000) | Unutilized Amount (RMB '000) | Expected Timeline | | :--- | :--- | :--- | :--- | :--- | | Expansion and Upgrade of Manufacturing and Production Facilities | 24,150 | 9,350 | 14,800 | December 2025 - June 2026 | | Repayment of Certain Group Borrowings | 18,000 | 18,000 | – | Not Applicable | | General Working Capital of the Group | 37,295 | 26,400 | 10,895 | December 2025 | | Total | 79,445 | 53,750 | 25,695 | | Business Review - The Group's business is divided into two main categories: CMS (Contract Manufacturing Service) and OBM (Original Brand Manufacturing), with primary products including cosplay products, non-cosplay apparel (lingerie), and cleaning care products, also offering plant leasing[75][76] Revenue by Business Category (RMB '000) | Business Category | Revenue for Six Months Ended June 30, 2025 (RMB '000) | Share of Total (%) | Revenue for Six Months Ended June 30, 2024 (RMB '000) | Share of Total (%) | Revenue Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | CMS Business | 74,810 | 60.8 | 95,011 | 57.7 | -21.3 | | OBM Business | 48,141 | 39.2 | 69,628 | 42.3 | -30.9 | | Total | 122,951 | 100.0 | 164,639 | 100.0 | -25.3 | - Loss attributable to owners of the company was approximately RMB 44.0 million, primarily due to impairment losses recognized on property, plant and equipment and right-of-use assets during the period[78] Business Outlook - Anticipated recovery in consumer spending and rising demand for affordable fashion are expected to stimulate exports, though inflation, increasing labor costs, and geopolitical tensions remain challenges. The Group will prioritize sustainable development and digital transformation, flexibly adjusting supply chain and pricing strategies to address trade policies and tariff impacts[79] - Following the issuance of unlisted warrants, subscribers are expected to facilitate potential business opportunities and investments of up to USD 100 million, significantly enhancing the company's financial position, liquidity, and long-term development capabilities[80] Interim Dividend - The Board resolved not to declare any interim dividend for the six months ended June 30, 2025 (2024: nil)[81] Purchase, Redemption or Sale of the Company’s Listed Securities - Neither the company nor its subsidiaries purchased, redeemed, or sold any of the company's listed securities for the six months ended June 30, 2025[82] Other Information This section covers the company's compliance with corporate governance, standards for directors' securities transactions, review of interim results, and arrangements for report publication Corporate Governance - The company has adopted the Corporate Governance Code in Appendix C1 of the Listing Rules of the Stock Exchange and fully complied with its provisions during the reporting period[83] Standard Code for Securities Transactions by Directors - The company has adopted the Standard Code in Appendix C3 of the Listing Rules, and all Directors have confirmed compliance with the code during the review period[84] Review of Interim Results and Interim Report - The company's Audit Committee, comprising three independent non-executive directors, has reviewed the Group's results and interim report for the six months ended June 30, 2025[85] Publication of Interim Results and Interim Report - This announcement has been published on the websites of the Stock Exchange and the company, and the interim report will be dispatched to shareholders and published on the aforementioned websites in due course[86]