Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 9,159,425 thousand, a decrease of 8.3% compared to RMB 9,983,269 thousand in 2024[7] - Gross profit decreased by 10.1% to RMB 3,069,210 thousand, with a gross margin of 33.5%, down 0.7 percentage points from 34.2%[7] - Operating profit fell by 41.6% to RMB 281,596 thousand, resulting in an operating margin of 3.1%, down 1.7 percentage points from 4.8%[7] - Profit attributable to owners of the company decreased by 44.1% to RMB 187,615 thousand, with basic earnings per share of RMB 3.62, down from RMB 6.48[7] - The company's profit for the six months ended June 30, 2025, was RMB 200,106 thousand, a decrease of 40.9% compared to RMB 338,006 thousand for the same period in 2024[15] - Total comprehensive income for the same period was RMB 197,764 thousand, down 42.5% from RMB 342,575 thousand in 2024[15] - Basic and diluted earnings per share for the six months ended June 30, 2025, were RMB 0.036, down from RMB 0.065 in 2024, reflecting a decline of 44.6%[36] - The company’s net profit attributable to shareholders decreased by 44.1% to RMB 187.6 million, resulting in a profit margin of 2.0%, down 1.4 percentage points year-on-year[62] Dividends - The interim dividend was reduced by 42.5% to HKD 0.0115 per share, compared to HKD 0.02 in the previous year[7] - The board has declared an interim dividend of HKD 0.0115 per share for the six months ending June 30, 2025, down from HKD 0.02 per share for the same period in 2024[74] - A special dividend of HKD 0.0115 per share has also been approved, compared to HKD 0.02 per share in the previous period, resulting in a total dividend of HKD 0.0230 per share with a payout ratio of 60%[74] - The record date for the interim and special dividends is September 16, 2025, with the payment scheduled for October 9, 2025[75] Assets and Liabilities - Non-current assets totaled RMB 3,329,854 thousand as of June 30, 2025, a decrease from RMB 3,630,267 thousand at the end of 2024[16] - Current assets amounted to RMB 9,261,076 thousand, slightly down from RMB 9,407,623 thousand at the end of 2024[18] - Current liabilities decreased to RMB 2,844,523 thousand from RMB 3,253,830 thousand at the end of 2024, indicating improved liquidity[18] - The company's net asset value increased to RMB 8,977,358 thousand as of June 30, 2025, compared to RMB 8,870,796 thousand at the end of 2024[18] - The group's asset-liability ratio increased to 2.2% as of June 30, 2025, compared to 0.4% as of December 31, 2024, indicating a rise in leverage[64] Cash Flow - Cash and cash equivalents decreased by 13.2% to RMB 1,232,169 thousand from RMB 1,419,052 thousand[7] - The net cash generated from operating activities for the six months ended June 30, 2025, was RMB 399,258,000, a decrease from RMB 873,308,000 in the same period of 2024[21] - The company incurred a net cash outflow from investing activities of RMB 273,713,000, down from RMB 608,057,000 in the prior year[21] - The company's cash and cash equivalents were RMB 1,232,169 thousand, down from RMB 1,419,052 thousand at the end of 2024[16] - The group's operating cash flow for the period was RMB 399.3 million, indicating a stable cash generation capability[65] Inventory and Costs - Inventory as of June 30, 2025, was RMB 4,865,388 thousand, a slight decrease of 1.6% from RMB 4,946,314 thousand[7] - The average inventory turnover period increased to 146 days from 130 days in the previous year, while inventory at the end of the period decreased to RMB 4,865.4 million[63] - The company’s employee costs totaled RMB 1,053,815,000, a decrease of 3.6% from RMB 1,092,906,000 in the previous period[35] - Total sales and distribution expenses were RMB 2,508.4 million, accounting for 27.4% of revenue, while administrative expenses were RMB 381.9 million, representing 4.2% of revenue[58] Operational Highlights - The company continued to enhance its digital capabilities, integrating its multi-dimensional operational matrix to improve interaction with different consumer groups[52] - The company is focusing on optimizing its store layout and enhancing digital capabilities to improve consumer experience and sales performance[51] - The group signed multiple new lease agreements for retail stores with lease terms generally ranging from 1 to 6 years, resulting in right-of-use assets of RMB 157,629,000 and RMB 76,218,000 respectively[40] - The group has 3,408 directly operated stores in the Greater China region as of June 30, 2025[50] - The group recorded over 100% growth in live-streaming sales, indicating strong performance in private traffic channels[48] - The group continues to optimize its store portfolio and enhance direct store sales conversion rates amid a challenging retail environment[49] Shareholder Information - As of June 30, 2025, the total number of issued shares is 5,326,179,615, with key executives holding a combined total of 19,523,000 shares, representing 0.37% of the issued shares[77] - The major shareholder, Li Shang Management Limited, holds 3,331,551,560 shares, representing 62.55% of the issued shares[87] - The company has a share award plan in place, which was adopted on May 9, 2014, and has been extended for another ten years until May 8, 2034[80] - The total number of shares granted under the share incentive plan cannot exceed 4% of the issued shares as of the grant date, which is 213,047,184 shares[82] - The total number of shares granted to directors and key executives during the reporting period is 800,000 shares, with 1,480,000 shares being forfeited or canceled[83] Governance and Compliance - The company has complied with all applicable code provisions and recommended best practices as per the Corporate Governance Code during the six-month period ending June 30, 2025[94] - The audit committee has reviewed the unaudited condensed consolidated financial information for the six months ending June 30, 2025, and discussed risk management and internal control matters[96] - The board of directors includes non-executive directors, executive directors, and independent non-executive directors as of the report date[98]
宝胜国际(03813) - 2025 - 中期财报