Financial Performance - For the first half of 2025, the company reported revenue of RMB 672.9 million, a decrease of 17.1% compared to the same period in 2024, and a profit of RMB 48.7 million, down 29.5% year-on-year[9]. - The decline in revenue was primarily due to a weak consumer market and the overall economic conditions influenced by multiple global factors[9]. - The company's revenue decreased by 17.1% from RMB 811.3 million in the six months ended June 30, 2024, to RMB 672.9 million in the six months ended June 30, 2025[20]. - Revenue from tea sales dropped by 19.1% from RMB 571.8 million to RMB 462.7 million during the same period[22]. - The gross profit decreased by 16.5% from RMB 424.1 million to RMB 354.2 million, while the gross margin slightly increased from 52.3% to 52.6% due to cost control measures[24]. - Net profit decreased by RMB 20.3 million or 29.5% from RMB 69.1 million to RMB 48.7 million, with a drop in net profit margin from 8.5% to 7.2%[34]. - Cash generated from operating activities increased significantly to RMB 322,750 thousand, compared to RMB 172,208 thousand in 2024, marking an increase of 87.6%[76]. - Other income fell by 36.6% from RMB 14.7 million to RMB 9.3 million, primarily due to a reduction in government subsidies from RMB 6.6 million to RMB 2.9 million[28]. - Financing costs rose by 4.3% from RMB 12.0 million to RMB 12.5 million, reflecting an increase in foreign exchange losses[31]. - Income tax expenses decreased by 24.8% from RMB 30.7 million to RMB 23.1 million, linked to a decline in pre-tax profit from RMB 99.8 million to RMB 71.8 million[33]. Operational Strategy - The company plans to continue optimizing its retail network, focusing on high-traffic areas in selected cities and expanding into third- and fourth-tier cities[14]. - The company aims to enhance its operational efficiency by expanding its customer loyalty programs and improving employee training and welfare while controlling expenses[9]. - The company is actively promoting online sales through its subsidiary to attract customers who prefer purchasing tea products online[14]. - The company plans to enhance its product line by diversifying tea products and developing traditional delicacies, with a focus on packaging improvements by the first half of 2025[15]. - The company aims to expand its market presence through strategic marketing activities during traditional Chinese festivals and by promoting its brand through tea exhibitions and tasting events[17]. - The company has established a food research and development department to create diverse traditional foods, including pork crisps and instant bird's nest[15]. Market Conditions - The macroeconomic environment remains challenging, with risks such as rising inflation and geopolitical tensions affecting consumer behavior[9]. - The company anticipates a gradual recovery in the consumer market, driven by government policies aimed at boosting domestic consumption[9]. Financial Position - As of June 30, 2025, the total assets of the company amounted to RMB 2,951,453,000, a slight decrease from RMB 2,973,619,000 as of December 31, 2024[68]. - Cash and cash equivalents increased by 59.3% from RMB 340.5 million to RMB 542.4 million, primarily due to cash generated from operating activities[35]. - The capital debt ratio improved from 22.3% to 12.2%, mainly due to an increase in cash and cash equivalents[38]. - Trade and other receivables decreased from RMB 245.5 million to RMB 149.4 million, while trade and other payables increased from RMB 250.5 million to RMB 256.0 million[41]. - Total liabilities as of June 30, 2025, were RMB 1,219,554 thousand, a slight increase from RMB 1,208,193 thousand at the end of 2024[71]. - Total equity as of June 30, 2025, was RMB 1,731,899 thousand, down from RMB 1,765,426 thousand at the end of 2024[71]. Shareholder Information - The interim dividend declared on August 18, 2025, is HKD 0.02 per share (equivalent to RMB 0.018), which is 33.3% lower than the interim dividend of HKD 0.03 per share (equivalent to RMB 0.027) in 2024[46]. - The total amount of dividends to be distributed is approximately 50% of the group's after-tax consolidated net profit for the six months ended June 30, 2025, similar to the amount paid in the same period last year[46]. - The group has 3,302 employees as of June 30, 2025, with 3,297 located in China and 5 in Hong Kong[44]. - Major shareholders include Discerning Group Limited with 17.42% and UBS TC (Jersey) Ltd. with 34.91% of the shares[53]. Compliance and Governance - The company has complied with the corporate governance code as of June 30, 2025, with no deviations reported[56]. - The company has established an audit committee to oversee financial reporting and risk management, consisting of four members, including three independent non-executive directors[64]. Risk Management - The group does not currently engage in any hedging activities to manage foreign exchange risks, which primarily arise from transactions denominated in USD and JPY[42]. - The group has no significant foreign exchange risk exposure due to its operations primarily being conducted in RMB[42]. - The group’s financial risk management policies have not changed since the end of 2024[84].
天福(06868) - 2025 - 中期财报