Revenue Performance - The Group's revenue from continuing operations increased by 57.5% to approximately RMB 86.4 million for the six months ended June 30, 2025, compared to approximately RMB 54.9 million for the same period in 2024[10]. - Revenue from elastic webbings products rose from approximately RMB 12.4 million to approximately RMB 19.2 million, with sales quantities increasing from 121,000 kilograms to 147,000 kilograms[18]. - Revenue generated from digital marketing services surged from approximately RMB 17.4 million to approximately RMB 43.5 million, with the launch of four new online advertising projects[19]. - Revenue from sales of shoes, clothing, and others decreased from approximately RMB 25.1 million to approximately RMB 23.7 million, with clothing sales quantities slightly increasing from 478,000 pieces to 483,000 pieces[17]. - For the six months ended 30 June 2025, total revenue increased to approximately RMB 86.4 million, up 57.4% from RMB 54.9 million for the same period in 2024[23]. - Revenue for the six months ended June 30, 2025, increased to RMB 86,433,000, representing a 57.5% growth compared to RMB 54,872,000 in 2024[99]. - The reportable revenue from external customers for the shoe, clothing, and other segment was RMB 23,773,000, while the elastic webbings segment generated RMB 19,170,000, and the digital marketing services segment contributed RMB 43,490,000[121][124]. Financial Losses - Loss attributable to the owners of the Company increased from approximately RMB 14.8 million for the six months ended June 30, 2024, to approximately RMB 18.7 million for the six months ended June 30, 2025[11]. - Loss per share increased from RMB 0.0041 to RMB 0.0049 for the respective periods[11]. - The loss attributable to the owners of the Company for the period was RMB 18,693,000, compared to RMB 14,803,000 in 2024, indicating an increase in loss of 26.5%[136]. - Basic loss per share increased to RMB 0.0049 from RMB 0.0041, reflecting a rise of 19.5%[136]. - Loss from operations increased to RMB 9,565,000, compared to a loss of RMB 4,408,000 in the previous year, indicating a worsening operational performance[99]. - The Group's loss before tax for the period was RMB (10,229,000), compared to a loss of RMB (5,422,000) in the same period of 2024[121][122]. Cost and Expenses - The cost of sales rose by 56.4% to approximately RMB 76.0 million for the six months ended 30 June 2025, compared to RMB 48.6 million for the same period in 2024[24]. - General and administrative expenses increased by 31.1% to approximately RMB 14.0 million for the six months ended 30 June 2025, up from RMB 10.7 million in 2024[34]. - Selling and distribution costs rose by 4.3% to approximately RMB 3.9 million for the six months ended 30 June 2025, compared to RMB 3.7 million in 2024[30]. - Other expenses shifted from a gain of approximately RMB 3.8 million in 2024 to a loss of approximately RMB 2.0 million in 2025, primarily due to an exchange loss of RMB 2.4 million[29]. Profitability Metrics - Gross profit for the six months ended 30 June 2025 was approximately RMB 10.4 million, with a gross margin of 12.0%, up from RMB 6.3 million and 11.4% in 2024[28]. - The gross profit margin for elastic webbings improved significantly from 4.8% in 2024 to 13.3% in 2025, reflecting reduced production costs[28]. - The total comprehensive loss for the period was RMB 16,312,000, a decrease from RMB 19,688,000 in 2024, showing an improvement in overall financial performance despite ongoing losses[100]. Cash Flow and Liquidity - As of 30 June 2025, the Group's bank and cash balances amounted to approximately RMB 4.5 million, down from RMB 8.3 million as of 31 December 2024[38]. - The net cash used in operating activities for the six months ended June 30, 2025, was RMB 14,014,000, compared to RMB 13,249,000 for the same period in 2024[106]. - The company generated RMB 9,057,000 from financing activities in the first half of 2025, a significant improvement from a net cash used of RMB 14,566,000 in the same period of 2024[106]. - Cash and cash equivalents at the end of the period were RMB 4,549,000, down from RMB 13,519,000 at the end of June 2024[106]. Assets and Liabilities - As of June 30, 2025, current assets decreased to RMB 69,250,000 from RMB 82,207,000 as of December 31, 2024, resulting in a current ratio of 21.9% compared to 25.3%[47]. - Non-current assets decreased slightly to RMB 39,358,000 from RMB 39,915,000 as of December 31, 2024[102]. - Current liabilities totaled RMB 316,785,000, down from RMB 324,476,000 at the end of 2024, indicating a reduction in short-term obligations[102]. - Net liabilities increased to RMB 239,690,000 from RMB 223,378,000, reflecting a deterioration in the company's financial position[103]. - The company maintained its share capital at RMB 336,995,000, with reserves showing a slight decline to RMB (584,322,000) from RMB (567,735,000)[103]. Management and Governance - The Group's management is optimistic about future growth prospects, particularly in the digital marketing sector and elastic webbings products[10]. - The Board resolved not to declare any dividend for the six months ended June 30, 2025, consistent with the previous year[63]. - The company has complied with the Corporate Governance Code except for code provision C.1.8 regarding insurance cover for Directors[81]. - The Audit Committee, comprising three independent non-executive Directors, is responsible for reviewing the Group's financial reporting process and overseeing risk management[89]. - The Remuneration Committee is responsible for formulating the Group's policy and structure for all remuneration of Directors and senior management[90]. - The Nomination Committee is responsible for reviewing the structure, size, and composition of the Board and making recommendations on appointments[94]. - The Regulatory Compliance Committee ensures that business operations comply with relevant laws and regulations[95]. Strategic Developments - The management has actively explored opportunities to diversify trading risks and improve the financial position and cash flow of the Group[65]. - In July 2025, the Group fully disposed of subsidiaries engaged in the fabrics manufacturing business, which is expected to improve the Group's financial position due to the net liabilities of the disposed group[66]. - The management plans to strengthen the Group's capacity by conducting further fundraising, maintaining sales in the shoes and clothes business, and expanding digital marketing services[67]. - The Group entered into a sales and purchase agreement to sell Moody Group for HK$1, with the transaction based on normal commercial terms[165]. - The Company believes the Disposal will have a positive impact on its financial position due to the net liabilities of the Disposal Group[170].
满地科技股份(01400) - 2025 - 中期财报