Revenue and Profitability - For the six months ended June 30, 2025, total revenue decreased by 25.3% to RMB 122.951 million from RMB 164.639 million in 2024[11]. - Gross profit for the same period fell by 30.3% to RMB 27.408 million, with a gross profit margin of 22.3%, down from 23.9%[11]. - The net loss attributable to equity holders of the Company was RMB 43.904 million, a significant increase of 5,816.7% compared to a profit of RMB 0.768 million in 2024[11]. - Revenue from the CMS business accounted for 60.8% of total revenue, decreasing from approximately RMB 95.0 million to approximately RMB 74.8 million, representing a decline of 21.3%[14]. - Revenue from the OBM business decreased from approximately RMB 69.6 million to approximately RMB 48.1 million, a decrease of approximately 30.9%[15]. - Loss attributable to equity holders for the six months ended June 30, 2025, amounted to approximately RMB 44.0 million, a significant decline from a profit of RMB 0.7 million in the same period of 2024, primarily due to impairment losses on property, plant, and equipment[95]. - The segment results for the six months ended June 30, 2025, showed a loss of RMB 37,615,000, compared to a profit of RMB 9,947,000 in the same period of 2024, indicating a significant decline in performance[131]. Assets and Liabilities - Total assets as of June 30, 2025, were RMB 398.262 million, down 4.5% from RMB 417.109 million at the end of 2024[11]. - Total liabilities increased by 60.2% to RMB 85.586 million from RMB 53.419 million[11]. - The current ratio decreased to 233.0% from 414.4%, a decline of 181.4 percentage points[11]. - The reportable segment assets as of June 30, 2025, totaled RMB 398,262,000, compared to RMB 325,291,000 as of December 31, 2024[134]. - Reportable segment liabilities as of June 30, 2025, were RMB 85,586,000, an increase from RMB 53,419,000 as of December 31, 2024[134]. Cash Flow and Financing - Total cash and cash equivalents decreased by approximately RMB 24.0 million to approximately RMB 39.6 million as of June 30, 2025[41]. - Cash used in operating activities for the six months ended June 30, 2025, was RMB 62,504,000, significantly higher than RMB 10,309,000 in 2024[110]. - Cash flows from financing activities resulted in a net cash used of RMB 6,034,000 for the six months ended June 30, 2025, compared to a net cash generated of RMB 31,206,000 in 2024[110]. - The company issued share capital amounting to RMB 6,426,000 from the exercise of share options during the six months ended June 30, 2025[110]. - The company plans to utilize RMB 18 million from the proceeds for the repayment of certain borrowings, including loans with principal amounts of RMB 10 million, RMB 5 million, and RMB 3 million, all due in 2025[83]. Expenses and Costs - Selling expenses represented approximately 4.1% of revenue for the six months ended 30 June 2025, up from 2.8% for the same period in 2024[29]. - Administrative and other operating expenses decreased by approximately RMB 1.2 million, from approximately RMB 35.0 million to approximately RMB 33.8 million[30]. - The impairment loss on property, plant, and equipment and right-of-use assets recognized was approximately RMB 47.2 million due to a drop in turnover[32]. - Research and development costs increased to RMB 15,245,000, up 12% from RMB 13,611,000 in 2024[145]. - The unallocated expenses for the six months ended June 30, 2025, were RMB 17,576,000, compared to RMB 14,089,000 in the same period of 2024, indicating rising overhead costs[131]. Market Conditions and Challenges - The company faced challenges in the fabric care and personal hygiene market due to fierce competition and changing consumer preferences, impacting gross profit margins[17]. - The global economic landscape remains uncertain, affecting sales in key product categories such as cosplay costumes and wigs[16]. - The Group anticipates a recovery in consumer spending and increased demand for affordable fashion, although challenges such as inflation and geopolitical tensions may impact profitability[96]. - The Board emphasizes the need for brands to prioritize sustainability and digital transformation to gain a competitive advantage in the current market[96]. Shareholder and Corporate Actions - The company entered into an Equity Transfer Agreement to dispose of a property holding company for a consideration of RMB 80,000,000, approved by shareholders on March 5, 2025[61]. - The company completed the disposal of a property holding company on April 30, 2025, with net proceeds of approximately RMB 79.5 million after deducting related expenses[75][78]. - The company issued unlisted warrants on March 26, 2025, allowing the subscriber to purchase up to 354,652,624 shares at a nominal price of HK$1.00, exercisable for five years[73][77]. - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2025, similar to 2024[151]. Inventory and Receivables - The total inventory as of June 30, 2025, was RMB 55,929,000, significantly increased from RMB 22,162,000 as of December 31, 2024[182]. - Trade receivables from third parties as of June 30, 2025, were RMB 59,259,000, up from RMB 14,214,000 as of December 31, 2024[184]. - The expected credit loss (ECL) allowance for trade receivables was RMB 6,481,000 as of June 30, 2025, compared to RMB 5,996,000 as of December 31, 2024[188]. - The aging analysis of trade receivables shows that RMB 40,048,000 was within 0-30 days overdue as of June 30, 2025, compared to RMB 4,228,000 for the same period in 2024[187]. Impairment and Depreciation - An impairment loss of RMB 39,944,000 was recognized on property, plant, and equipment for the six months ended June 30, 2025, compared to RMB 6,034,000 for the same period in 2024[176]. - The impairment loss on assets recognized in profit or loss for the six months ended June 30, 2025, was RMB (546,000), compared to a total of RMB 17,519,000 at the beginning of the year[195]. - Depreciation and amortization expenses for the six months ended June 30, 2025, totaled RMB 7,607,000, compared to RMB 10,329,000 in the same period of 2024[131]. Taxation and Deferred Tax - The provision for PRC enterprise income tax was calculated at the applicable tax rate of 25% on assessable profits, consistent with the previous year[146]. - The company recognized a deferred tax expense of RMB 388,000 for the current period, compared to RMB 1,433,000 in 2024[149]. - The total deferred tax balance as of June 30, 2025, was RMB 16,880,000, down from RMB 17,268,000 as of December 31, 2024, representing a decrease of about 2.25%[197].
中国派对文化(01532) - 2025 - 中期财报